Brussels reviews Hungarian government's support for Audi expansion
The European Commission is reviewing €133.3 million in state support for an expansion of German carmaker Audi's base in Hungary, Hungarian daily Magyar Nemzet said today.
The EC confirmed that a review of whether the support conforms to rules on state aid is underway, responding to a query by the paper.
The National Economy ministry confirmed for the paper that the government had decided on "HUF 44.96 bln (€150.03 mln) in support, which at current values is equivalent to HUF 39.952 bln (€133.3 mln)," the newspaper said.
The paper noted that the government earlier said it would support the investment with HUF 11.2 bln, about one-fourth of the size of the grant under scrutiny by Brussels.
Audi launched production at the €900 mln plant expansion at its base in Győr in the summer of 2013. The added capacity has been a key factor behind Hungary's growing industrial output as well as GDP growth.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.