BRUSSELS (AFP) ― The European Commission said Tuesday it has cleared a 7.5 billion euro ($9.9 billion) restructuring plan by struggling French auto giant Peugeot Citroen, including the state aid to back it.

The Commission said French government aid to guarantee a bond issue of up to 7 billion euros by the company’s stricken finance arm conformed with EU competition rules.

The bond guarantee is worth 486 million euros while another 85.9 million euros will go to fund more eco-friendly cars, adding up to nearly 572 million euros.

Peugeot will now be able to “restructure in accordance with clear limits, reducing to a minimum the damaging effects for competitors who have not received support from public funding,” EU Competition Commissioner Joaquin Almunia said in a statement.

“This is a balanced result which offers the ... group the chance to make a new start on a sound basis,” Almunia said.