ANNOUNCEMENT 28 Oct 2009

In October 2009, the government of Hungary announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 28 Oct 2009 | Removal date: 26 Dec 2013
Still in force

Tax or social insurance relief

On 28 October 2009, the European Commission has approved a regional aid package of EUR 49.52 million for an investment project of the car manufacturer Audi in Gyor, Hungary.
 
The beneficiary is Audi Hungaria Motor Kft. which belongs to the German Audi AG. This entity is in turn part of the Volkswagen Group.
 
The regional aid will be issued in the form of

  • a direct grant in the years 2009-2013 and
  • a corporate tax allowance planned to be used in the year 2012 (para. 3, letter from the EC to Hungary, Brussels 28.10.2009).

The aid will facilitate the production of new engine components previously purchased from external suppliers and increase the overall production capacity by 100'000-250'000 engines per year.
 
According to the EC, the regional aid 'will 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' (para. 40).
 
Furthermore, the Commission points out that 'since this product 'vehicle engines' is subject to intensive trade between Member States, the support given is likely to affect trade between Member States' (para.41).
 
Astate measure in the GTA database is assessed solely in terms of theextent to which its implementation affects the extent of discriminationagainst foreign commercial interests. On this metric, the state aidproposed here is discriminatory.

AFFECTED SECTORS

 
Inception date: 28 Oct 2009 | Removal date: 26 Dec 2013
Still in force

Financial grant

On 28 October 2009, the European Commission has approved a regional aid package of EUR 49.52 million for an investment project of the car manufacturer Audi in Gyor, Hungary.
 
The beneficiary is Audi Hungaria Motor Kft. which belongs to the German Audi AG. This entity is in turn part of the Volkswagen Group.
 
The regional aid will be issued in the form of

  • a direct grant in the years 2009-2013 and
  • a corporate tax allowance planned to be used in the year 2012 (para. 3, letter from the EC to Hungary, Brussels 28.10.2009).

The aid will facilitate the production of new engine components previously purchased from external suppliers and increase the overall production capacity by 100'000-250'000 engines per year.
 
According to the EC, the regional aid 'will 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' (para. 40).
 
Furthermore, the Commission points out that 'since this product 'vehicle engines' is subject to intensive trade between Member States, the support given is likely to affect trade between Member States' (para.41).
 
Astate measure in the GTA database is assessed solely in terms of theextent to which its implementation affects the extent of discriminationagainst foreign commercial interests. On this metric, the state aidproposed here is discriminatory.