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Government official: Investment support key in current economy

Investment support is key in the current economic and geopolitical situation, the head of the Hungarian Investment Promotion Agency (HIPA) said on Thursday, after the European Commission blocked state aid for a vehicle parts plant in the underdeveloped north of the country.

Istvan Joo said the EC’s decision ran counter to European Union leaders’ new European competitiveness deal and obstructed renewal on the continent.

“Bad decisions in Brussels over the past years have brought European competitiveness to a low point,” he added.

“Hungary has no desire to assist in this endeavour. The government is weighing further possible steps,” he said.

The EC said on Tuesday that it had found that Hungary’s plans to grant 43.8 million euros in state aid for the plant planned by GKN Automotive Hungary did not comply with EU rules on state aid. “Hungary failed to prove that the aid was decisive for the beneficiary to locate its investment in Hungary,” it explained.

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