On Thursday 27 October, the European Commission opened an in-depth investigation to establish whether the aid measure Hungary plans to grant for the construction of a new automotive components plant in the region of Észak Magyarország is in line with EU State aid rules.
In 2021, Hungary notified its intention to grant Rubin NewCo Kft €43.76 million in public aid for the construction of this new automotive component production plant.
The new plant will take over the capacity of two other European production sites owned by the group. It is expected to create around 1,500 jobs in Northern Hungary, a less advantaged region eligible for regional aid under EU State aid rules.
The European Commission has decided to open an in-depth investigation to determine whether the aid: - is proportionate (limited to what is necessary to attract investment to the disadvantaged region); - has an ‘incentive effect’ (to assess whether the project would have been carried out even without public aid); - has unintended negative effects on competition and trade within the European Union. (Original version in French by Lionel Changeur)