UPDATE 1-Opel restructuring must be driven by economics-EU

* EU says Opel overhaul should ensure long-term viability

* Commission says German pre-condition was a problem

* Some analysts say case strengthens Commission position

* Others see case as a missed opportunity

(Adds quotes, lawyer, think-tank comments)

By Foo Yun Chee

BRUSSELS, Nov 4 (Reuters) - European Union competition regulators urged U.S. carmaker General Motors [GM.UL] on Wednesday to draft a recovery plan for its European arm, Opel, that would ensure its long-term viability.

They dismissed any suggestion that EU regulatory action could have been a factor in GM's decision to scrap a deal to sell Opel to Canadian car parts supplier Magna (MGa.TO) and Russia's Sberbank (SBER03.MM).

The EU executive, the European Commission, had challenged the terms of the funding Germany pledged to support the sale of Opel, forcing Berlin to clarify that the aid would have been available to anyone who had bought the company.