ADVERTISEMENT

European Commission OKs Hungarian state aid for Audi

Recycling

pixabay

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.

ADVERTISEMENT

Digitization, sustainability among characteristics of future... Analysis

Digitization, sustainability among characteristics of future...

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

Transformation Delineation - Microsoft country general manag... Podcasts

Transformation Delineation - Microsoft country general manag...

Most districts not planning mandatory vaccination at kinderg... City

Most districts not planning mandatory vaccination at kinderg...

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.