The EU will investigate the billions of euros of state aid offered by the German Government to the Russian-Canadian rescuers of GM Europe.

Within hours of the deal being sealed between General Motors, Magna and Russia’s Sberbank, the European Commission said it would examine the financial support offered by the German government, totalling €4.5 billion.

The German bailout, funded by its taxpayers, also came under fire in Belgium where a big Opel factory will be closed.

Joelle Milquet, Belgium’s vice-premier, criticised the deal that safeguards the future of four Opel plants in Germany while a plant in Antwerp, employing 2,700 people faces closure. “I think the German government sought its own advantage,” he said.

Yves Leterme, Belgium’s Foreign Minister, called on the Commission to investigate the deal for evidence of protectionism and said he would raise the matter at a meeting of EU foreign trade ministers next week.

Johannes Latienberger, a Commission spokesman, said that the financial support must comply with the state aid rules.

“In particular, state aid cannot be subject to additional non-commercial conditions.” Conditions that would not be permitted might include “the geographic distribution of restructuring measures”, he said.

Under the deal agreed on Thursday, General Motors will transfer 55 per cent of GM Europe to Magna and Sberbank while 10 per cent of the company will be owned by the employees.

Half of the workforce is employed in Germany and the new owners have agreed to keep four German plants open, but 10,000 jobs will be cut elsewhere and anxiety is mounting in GM plants across the Continent.

In the UK, GM employs about 4,700 people at the Vauxhall plants at Luton and Ellesmere Port.

The Luton plant is at particular risk of closure if GM cannot secure new business.

The company also employs 5,500 in Belgium, 1,800 in Italy, 1,600 in Austria and 1,500 in France, according to company figures.

The agreement on Thursday between Germany, the Detroit car maker and the Russo-Canadian venture partners comes ahead of next week’s Frankfurt motor show where GM’s new Astra model is expected to come under the spotlight. Without a deal for GM Europe in place, Opel would not have been able to launch the car.

The Astra is the linchpin of Opel’s European business, say industry experts, and the company would be expected to clinch big sales to rental car firms following its launch.

German politics is also behind the rapid resolution of the negotiations, which have continued to be bogged down over issues of jobs and intellectual property disputes since the end of May when Magna launched its rescue proposal.

The country faces elections on September 27 and the deal offers Angela Merkel, the German Chancellor, the chance to wave a victory flag about German jobs and industry.

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