On 11 June 2024, the European Commission concluded the incompatibility of a Hungarian aid project in the context of an in-depth investigation opened in October 2022. This project planned to grant 43.76 million euros (around 15.9 billion HUF) to GKN Automotive Hungary Kft (former Rubin NewCo Kft) for the construction of a new automotive components plant in northern Hungary.
The Commission's preliminary assessment found that the investment project would support economic development and employment in a less-favored region of the EU. However, the Commission expressed doubts about the project's conformity with the Commission's guidelines on Regional State aid.
And following its in-depth investigation, the Commission concluded that there was no evidence that the aid was decisive in leading the beneficiary to localize its investment in Hungary. According to the investigation, the investor had chosen to establish his activities in Hungary independently of the public aid.
In the absence of any demonstration of a true incentive effect of the aid, the Commission concluded that the Hungarian aid project was incompatible with EU state aid rules. Consequently, the aid may not be granted by Hungary.
For further information, see the Commission's press release.