Hungary Central Bank governor György Matolcsy lied

November 21, 2014

audi

The Ministry of National Economy has admitted that it supported the Győr investment of Audi Hungary with nearly four times the amount of public money that it has previously claimed, reports daily business online portfolio.hu. Instead of HUF 11.2 billion (USD 45 million), the government spent HUF 40 billion (USD 162 million) on the development.

The European Commission initiated a detailed investigation in July to establish whether the support given to Audi is in line with EU rules and regulations.

  • The European Commission justified the move with reference to the decisive market share of the Volkswagen Group, as well as with the significant size of the investment
  • The German-owned company is presently undertaking a EUR 1.2 billion investment, to which the Hungarian state has contributed EUR 133.2 million, which is around HUF 40 billion
  • In 2011 then-minister of national economy and now-Central Bank governor György Matolcsy claimed that the total state contribution to the project only amounted to HUF 11.2 billion. His former ministry now admits that the real spending was nearly four times as much.
  • “In accordance with the EC’s own communication, the government of Hungary awarded total support of HUF 44.96 billion (EUR 150.03 million), the present value of which is HUF 39.952 billion (EUR 133.3 million)”.
  • In response to inquiries from portfolio.hu, the European Commission said the investigation is still under way

Referenced in this article:

http://www.portfolio.hu/vallalatok/kiborult_a_bili_a_magyar_audinak_titokban_tomtek_tele_a_zsebet.3.206826.html