ANNOUNCEMENT 18 Dec 2013In December 2013, the government of Hungary announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
Official letter from the EC to Hungary in English, SA.37402:
On18 December 2013, the European Commission decided to allow Hungarianauthorities to fund the intermodal development of the Freeport ofBudapest in the form of a direct grant.
The beneficiary is a freightport owned by MAHART-Freeport Co. Ltd., whereas the operation of theFreeport has been outsourced to Freeport of Budapest Logistics through aconcession for 75 years.
Of the total costs of EUR11.05 million, the public financing will cover EUR 10.223 million. Theremaining part will be funded by Mahart. The state-financed money willbe used for road, rail and waterside infrastructural developments to the Freeport of Budapest. According to the Commission,"the measures aims at encouraging a modal shift from road to other moreenvironmentally-friendly means of transport" (para. 5, letter from theEC to Hungary, Brussels 18.12.2013).
The Commission stated that"the FoB could be at least potentially in competition with similar portsin Hungary, such as those in Gyor or Dunaujvaros. Furthermore, theCommission notes that over 75 % of inland navigation in the EU consists of cross-border transport10 and that the FoB couldalso be potentially in competition with ports in other Member States onthe Danube, such as those in Vienna and Bratislava, which are locatedapproximately 250 and 200 kilometres from the FoB, respectively" (para. 38).
A state measure in the GTAdatabase is assessed solely in terms of the extent to which itsimplementation affects the extent of discrimination against foreigncommercial interests. On this metric, the state aid proposed here is discriminatory.