ADVERTISEMENT

EC Launches Probe of State Aid for Car Parts Investment in Hungary

EU

The European Commission on Thursday announced the launch of an in-depth investigation to assess whether EUR 43.8 million in government support for a new automotive components plant in an underdeveloped region in the north of the country comply with state aid rules, according to a report by state news wire MTI.

Rubin NewCo's new plant will take over the capacity of two other group production sites in Europe, creating around 1,500 jobs.

The EC acknowledged that the scale of the support is under the close to 32% state aid threshold for disadvantaged regions, but said it still aims to determine whether the aid is proportionate and has no undue negative effects on competition, as well as weigh the chances the investment could have been undertaken without the support.

It noted that Hungarian authorities say the investment would have been made in Turkey without the grant and tax benefit.

The EC said it "has doubts" on whether the aid is in line with EU rules. It added that the launch of the probe "does not prejudge in any way" its outcome.

Hungary Crude Supply Secured With 'Temporary Solutions' Energy Trade

Hungary Crude Supply Secured With 'Temporary Solutions'

Hungary to Host Next EPC Summit Int’l Relations

Hungary to Host Next EPC Summit

New Tenants at Academia Offices Office Market

New Tenants at Academia Offices

Kimpton Bem Budapest Hotel Opens Hotels

Kimpton Bem Budapest Hotel Opens

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.