The European Commission (EC) has cleared the Portugese government to give 38 million euros to General Motors’ German-based arm Opel to build a new Corsa-based model in its plant near Lisbon, Reuters reported.

Reuters said that the commission said the aid to the plant at Azambuja was both justified and proportional, but limited the amount that could be spent on training to three million euros because many of the skills learnt would not be fully transferable.

According to Reuters, the EC said the aid was approved because Opel had shown it had an alternative location for the project, at Gliwice in Poland, and because the grant was less than the total cost of the investment, 124 million euros between 1998 and 2003.