G/SCM/Q2/EU/86  
 
18 October 2022  
(22-7830) Page: 1/2 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
REPLIES TO FOLLOW UP QUESTIONS POSED BY THE UNITED STATES1 TO REPLIES2 
REGARDING THE NEW AND FULL NOTIFICATION OF THE EUROPEAN UNION  (HUNGARY)3 
The following communication, dated and received on 18 October 2022, is being circulated at the 
request of the delegation of the European Union.  
 
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Question 1  
For question a, could the European Union explain the criteria for evaluating whether 
specific companies receive subsidies under the Irinyi Plan for the Develop ment of 
Hungarian Industry? Are there any conditions on the receipt of the subsidy?  
Reply : 
The system of criteria for assessing the applications is defined in such a way that, during the 
examination of the activities to be implemented based on the applications, it is evaluated to what 
extent it contributes to the realization of the goals of the Irinyi Plan.  
The main expectations and aspects expressed in relation to the supported individual projects (joint 
fulfilment is not necessary):  
• novelty/innovation content;  
• the innovative nature of the applicant company (e.g. existing or – in the case of reg ional 
investment support – working relationships with universities and research centres 
established during the maintenance period; number of employed researchers, ratio of R&D 
costs);  
• digitization of business processes, introduction of digital solutions th at increase efficiency, 
system development (e.g. development of data analysis competence, development required 
for process automation, establishment of a corporate management system, application of 
solutions related to the business utilization of artificia l intelligence, procurement of 
production -related robots, application of solutions affecting cyber security);  
• during the evaluation, it is a consideration whether the applicant has his own workshop, or 
has a contractual relationship with a vocational schoo l that operates a workshop, or whether 
he undertakes to set them up during the project or (in the case of regional investment 
support) during the maintenance period;  
• a new (or fundamentally revised) product or technology must be created as a result of the 
investment;  
• the added value and the added value in relation to sales must increase;  
• will it be possible to appear on a new export market;  
• will it be possible to deliver to a new (large company) customer;  
 
1 G/SCM/ Q2/EU/79  
2 G/SCM/Q2/EU/72  
3 G/SCM/N/372/EU/Add.13  G/SCM/Q2/EU/86  
 
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  • will it be possible to save energy or increase the r ate of use of renewable energy (e.g. 
improvements that reduce final energy consumption, acquisition and application of software 
that optimizes energy consumption, which collects data from built -in digital devices).  
Question 2  
For question b, can the Europe an Union provide additional detail and information on 
subsidies provided under this program to the automotive industry, specialized 
manufacture of machinery and vehicles, and the ICT sector?  
Reply : 
The total budget of the program for one year is HUF 2.4 bi llion (~USD  6 million). In 2020 and 2021, 
we supported the projects of a total of 36 companies. 5 of the 36 projects are related to the above 
industries, including 4 to specialized manufacture of machinery and vehicles and 1 to the ICT sector.  
Question 3  
For question c, the European Union indicates that the Irinyi plan does not include a 
mandatory condition to increase exports or replace imports, are these included as one of 
many criteria or as illustrative considerations in evaluating subsidy recipients?  
Reply: 
When evaluating the beneficiaries of the subsidy, the appearance on the new export market(s) is 
included among the criteria and informative considerations, but not as a mandatory element. Import 
substitution is not examined during the evaluation.  
 
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