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State aid: Commission opens in-depth investigation into Hungarian support for new auto parts plant in Észak Magyarország  

31/10/2022 | Economia |  Daily News 27 / 10 / 2022

Source: European Commission Spokesperson's Service  





The European Commission has opened an in-depth investigation to assess whether public support that Hungary plans to grant for the construction of a new automotive components plant is in line with EU State aid rules. The beneficiary of the measure would be Rubin NewCo Kft. In 2021, Hungary notified the Commission of its plans to grant Rubin NewCo Kft €43.76 million of public support for the construction of a new automotive components plant in the northern Hungary region of Észak Magyarország. At this stage, based on its preliminary assessment, the Commission has found that the investment project facilitates the economic development and employment in a less advantaged region of the EU. Nevertheless, the Commission has doubts on whether the measure is in line with EU State aid rules, in particular the Guidelines on Regional State aid. In particular, the Commission has decided to open an in-depth investigation to assess whether: the aid is proportionate, meaning that it is limited to what is necessary to attract the investment to the disadvantaged region; the measure has an “incentive effect”; and the aid has no undue negative effects on competition and trade within the EU. The Commission will now investigate further to determine whether or not these initial concerns are confirmed. A press release is available online.

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