The European Commission has opened an in-depth investigation into Germany’s regional aid for Porsche Leipzig. Porsche Leipzig is a subsidiary of Volkswagen-Porsche. The aid was to go toward developing the Porsche Macan, a new passenger car model. Germany notified € 521.56 million in aid, of which € 43.67 million was a direct grant and investment premium.
Leipzig is eligible for regional aid to further certain large investment projects. However, the Commission is concerned that the thresholds for Volkswagen-Porsche’s market shares and the capacity increase have been exceeded. The Commission’s investigation will determine if the aid is necessary to attract investment into the region, and proportionate.
Full content: EC Press Release
Related content: Protectionism in the Age of Austerity – A Further Unlevelling of the Playing Field?
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