European Commission probing Slovak state aid for Jaguar Land Rover

The European Commission has launched an investigation in order to ascertain whether or not Slovakia's plans to grant €125 million and other measures for Jaguar Land Rover to build a new car plant near Nitra are in keeping with EU rules on regional state aid. "It's a good thing if public investment fosters economic growth in Member States, but we need to avoid harmful subsidy races between Member States," European Commissioner for Competition Margrethe Vestager is quoted as saying on the Commission's website. Economy Minister Peter Žiga called the in-depth investigation a "completely legitimate course of action". Jaguar Land Rover is investing €1.4 billion in a car manufacturing facility in the Nitra region, with the plant being envisaged to produce 150,000 cars per year. The €125 million in public support for the project represents the maximum state aid that can be granted. The Commission wants to further investigate whether Jaguar Land Rover's investment decision was triggered by considerations other than the conditional public subsidy of €125 million.