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European Commission OKs Hungarian state aid for Audi

Following an in-depth investigation, the European Commission said today that €133 million in support from the Hungarian government for Audi Hungaria Motor Kft. to expand its plant in Győr was in line with European Union rules, Hungarian news agency MTI reported.

The EC said that Audi Hungaria invested a total of €1.2 billion in a fully integrated production plant for passenger cars at its existing facility, and this expansion is expected to create 2,100 new jobs at the plant, which is located in a disadvantaged region of Hungary where the GDP per capita is far below the EU average, MTI reported.

The EC determined that the area is entitled to benefit from aid to encourage investments under the Hungarian regional aid map applicable at the time of granting the aid, MTI said.

According to the commission’s decision, the state aid was necessary for the project in Győr to proceed, as the aid merely compensated the company for additional investment costs incurred from the project, MTI reported. “The positive effects of the project on regional development clearly outweigh any distortion of competition created by the aid,” the EC said.