BRUSSELS - European Union regulators approved on Monday 133 million euros (101.14 million pound) in aid granted by Hungary to German carmaker Audi because it would boost investment in a disadvantaged region in the country.
The Hungarian unit of Audi, which is German carmaker Volkswagen's flagship luxury division, is expected to create 2,100 jobs at the 1.2-billion-euro plant in Western Transdanubia.
The European Commission said the Hungarian funding complied with the bloc's state aid rules.
"The Commission's assessment showed that the aid was necessary for the project to go ahead in Győr, as the aid merely compensated the company for extra investment costs incurred by carrying out the project in Győr and not in an alternative location," the EU executive said in a statement.
(Reporting by Foo Yun Chee; editing by Philip Blenkinsop)