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    Commission Decision (EU) 2024/3031 of 11 June 2024 on the regional State aid SA.6... (32024D3031)
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    EU - Rechtsakte: 08 Competition policy
    (107) For the reasons set out at recitals 97 to 105 of the Opening Decision, the Commission considered that the notified measure constituted State aid within the meaning of Article 107(1) TFEU, as it was imputable to the State and granted through State resources, was selective, procured an economic advantage to the beneficiary, was likely to affect trade between Member States, and distorted or threatened to distort competition. That assessment remains valid, hence the Commission concludes that the measure constitutes State aid.

    5.2.   

    Lawfulness of the measure

    (108) If the regional investment aid amount to be granted exceeds the notification threshold laid down in Article 4(1), point (a), GBER, the aid is not covered by the exemption provided by the GBER and has thus to be notified individually to the Commission.
    (109) The measure consists of two elements: a cash grant granted before 31 December 2021 (recital (29)) and a tax benefit, which Hungary considers was granted on 12 December 2021 (recital (31)). At recital 111 of the Opening Decision, the Commission raised doubts on that granting date and considered that the aid might not have been granted yet (recital (115)).
    (110) In the Northern Hungary region, the applicable maximum aid intensity, at the time of granting the cash grant was 50 %. Therefore, the applicable notification threshold (laid down in Article 4(1), point (a), GBER applicable at the time of granting the cash grant) was EUR 37.50 million, calculated in accordance with the mechanism defined in Article 2, point (20), GBER applicable at the time of granting the cash grant. As from 1 January 2022, the aid intensity for the Northern Hungary region is 60 %. (37) As of 1 July 2023, the Commission increased the notification thresholds in cases with a maximum regional aid intensity of 50 % to EUR 41.25 million and in cases with a maximum regional aid intensity of 60 % to EUR 49.5 million (38). The Commission considers that the cash grant, amounting to EUR 44.76 million in nominal value (EUR 43.01 million in discounted value) (recital (32)), already exceeded the notification threshold for a 50 % region (which was the aid intensity that applied at the time the cash grant was granted) and this meant that the measure did not benefit from the exemption from the notification obligation under Article 108(3) TFEU, regardless of the tax benefit.
    (111) The Commission concludes that by making the award of the cash grant conditional upon the Commission’s approval, by adopting the granting act for the tax benefit only once the Commission’s approval is notified, and by having notified the measure, the Hungarian authorities have respected their obligations under Article 108(3) TFEU and Article 4(1), point (a), GBER.

    5.3.   

    Legal basis for the assessment

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