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EU rules on government assistance to car makers

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The European Commission has approved all the proposed German Government support for Porsche but only a third of their proposed support for BMW.

The Business Spectator reports that the commission, which is the EU's executive arm, approved €43.67m ($63.25m) worth of assistance to the Porsche plant in the German city of Leipzig.

However, it ruled that the proposed €45m worth of assistance for BMW was too high and only approved €17m.

The commission said in a statement that the approved figure “was actually necessary to bring the investment to Leipzig and has approved the project only to that extent”.

Reuters reports that the European Commission will also investigate the proposed assistance from the Hungarian Government to German carmaker Audi.

Hungary wants to provide €133.3m to Audi for a €1.2b investment project in the Western Hungarian town of Győr. The project is expected to create about 2,100 jobs.

“Given the size of the project and the market share of the Volkswagen Group – the owner of AUDI - the Commission needs to verify the impact of the project on regional development and whether the aid is necessary to carry out the investment in Győr,“ the statement said.

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