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GOVT SPOX: EC REJECTS PRENATAL SUBSIDY

The European Commission, after criticising the Hungarian government's prenatal subsidies, has decided to reject the scheme, the government spokesman said.
 

Whenever the government prepares to introduce a subsidy like the prenatal support, it always consults the EC beforehand, István Hollik said. The reason for this, he said, was that with the allowance being disbursed via banks, it could be seen as a state subsidy geared towards the banks.
Hollik said claims that the EC had no issue with the prenatal subsidy were “unfounded”, arguing that the preliminary consultations had been held with the EC’s competition department.
He said the government had also held talks with the EC prior to introducing the CSOK housing subsidy scheme, which the body eventually approved. Hollik said the only reason why the EC had not yet launched an investigation into the subsidy was that it could only do so once it enters into effect.
The minutes from the consultations with the competition department prove that the EC had raised concerns about the subsidy, he said, adding that if necessary, the government will make them public.
Earlier, the EC said it had neither challenged nor investigated the scheme.