Photo credits @ Facebook/ MAN Polska

Brussels investigates €26 million subsidy for MAN Trucks plant in southern Poland

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The European Commission has launched an in-depth investigation into Poland’s planned state aid for MAN Trucks. The case concerns €26 million in support for an investment in the town of Niepołomice, located near Kraków in southern Poland. The Commission has raised concerns over whether the aid complies with EU rules on fair competition.

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On 28 July, the Commission officially announced the opening of the investigation into the investment aid that Poland intends to grant to MAN Trucks. The support is intended to help expand the company’s truck manufacturing plant in Niepołomice. The aid package amounts to approximately €26 million, and the investment is expected to create 1,400 new jobs.

The support consists of a direct grant (€2.4 million) and a corporate income tax exemption (€23.7 million). Although Poland has approved the aid, it cannot be disbursed before receiving formal clearance from the Commission.

Would the investment have gone ahead anyway?

While the project supports economic development in a less-developed region of the EU, the Commission is assessing whether the aid aligns with the Regional Aid Guidelines (RAG). One of the key questions is whether the so-called “incentive effect” applies – in other words, whether MAN Trucks’ decision to invest was truly dependent on receiving state aid, or whether the expansion would have occurred regardless.

The second focus of the investigation concerns the proportionality of the support. The Commission will assess whether the amount offered is strictly limited to what is necessary to attract the investment to the area.

The opening of the investigation does not prejudge its outcome. It allows Poland, MAN Trucks, and other interested parties to submit comments and evidence. Further analysis will determine whether the aid complies with EU state aid rules.

RAG guidelines: avoiding relocation and unfair advantage

The Regional Aid Guidelines are used to evaluate whether regional state aid is justified. They specify that public support must not:

  • create overcapacity in markets with limited growth potential;
  • result in the relocation of business activities from elsewhere in the EU;
  • divert investment away from regions that are more in need.

Crucially, the guidelines require that state aid not only attract investment, but also preserve fair competition across the EU’s single market.

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