IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 01 Mar 2009 | Removal date: 28 Dec 2017
Still in force

Financial grant

The Hungarian authorities intend to promote regional development by providing regional aid to Mercedes-Benz Manufacturing Hungary Kft. for the establishment of a new production plant for passenger cars in Kecskemét. The beneficiary of the aid will be Mercedes-Benz Manufacturing Hungary Korlátolt Felelosségu Társaság ("Mercedes-Benz Hungary"). Mercedes-Benz Hungary is a 100 per cent subsidiary of Daimler AG. The products supplied by the Mercedes-Benz Cars division range from the high-quality small cars of the smart brand to the premium automobiles of the Mercedes-Benz.

The financial support is given in the form of a cash grant and a corporate tax allowance. It will allow to Mercedes-Benz Hungary relieve the company from costs which it normally would have had to bear itself and therefore the company benefits from an economic advantage over its competitors.
 
The Commission gave the following assessment:

"The financial support in the form of a cash grant and a corporate tax allowance by the Hungarian authorities will be given for an investment resulting in the production of vehicles. Since this product is subject to trade between Member States, the support given is likely to affect trade between Member States." (par. 45 of the letter from the EC to Hungary).
 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.
 

AFFECTED COUNTRIES

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AFFECTED SECTORS AND PRODUCTS

491 Motor vehicles, trailers & semi-trailers; parts
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars.
870321 Of a cylinder capacity not exceeding 1,000 cc
870322 Of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc
870323 Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc
870324 Of a cylinder capacity exceeding 3,000 cc
870331 Of a cylinder capacity not exceeding 1,500 cc
870332 Of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc
870333 Of a cylinder capacity exceeding 2,500 cc

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