News

EU probes Hungary for possible breach of state aid rules

BRUSSELS — The European Commission has launched an investigation to determine whether Hungary violated EU competition rules by allowing more than 20 million euros ($22 million) in subsidies to a Budapest-based ground handling company.

The Commission said Tuesday it wants to find out whether financing measures “totalling approximately 21 million euros” granted by various Hungarian state-owned entities to Malév Ground Handling were in line with EU rules for struggling companies.

Malév Ground Handling is a former subsidiary of Hungary’s national airline, Malév, which went bankrupt in 2012. The commission says Malév Ground Handling has been struggling financially.

The commission’s investigation stemmed from a 2017 complaint launched by a competitor that argues the subsidies received by Malév Ground Handling amounted to state aid and was against EU rules.

The Associated Press