Subsidies in automotive industry

Abstract

In my essay I am going to examine the experiences of the National Development Plan I. This scheme is a document that concerns the development strategy of Hungary for the first three years´ planning after joining the European Union (2004-2006). I concentrate on the short period effects on economy, and I focus on the specific purposes of a more competitive economy. I am also aiming at a short introduction of the objectives and the priorities of the Competitive Economy Operative Programme (CEOP) I lay special emphasis on the first three priorities of CEOP: investment incentives, improvement of small-and-middle-size enterprises (SME) and R & D. I skirt the issue of the fourth priority - the improvement of a society and an economy based on information - as the direct economic effects of the purposes can not be monitored in that field. By my analysis I am seeking the answers for the question: what is the amount of financial support for the enterprises dealing with automobile industry - both in absolute and relative terms - from the provided frame of HUF 112,5 billion; and moreover: what are those structural short-term economic effects that can lead to the achievement of the objectives.