RWE to slash investment in Hungary over “completely unacceptable” policies

History

German energy company RWE is planning to reduce its investment in Hungary by 50 percent in 2013, Reuters newswire quoted regional board director Martin Herrmann as saying at a conference in Prague on Thursday. Herrmann named the Hungarian government’s measures as the reason behind the company decision, and voiced hope that the European Union would put an end to what he saw as a violation of community law. “What is happening in Hungary is unprecedented and completely unacceptable,” Herrmann said. The director suggested that other companies could follow suit and argued that “you can not invest in such an environment that de facto you are very close to being expropriated.” The Hungarian government has forced energy distributors to cut prices by 10 percent and has re-nationalized some utility service providers.

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