Brovedani SpA and Continental AG will receive state aid from the Slovak government in exchange for pledges to create jobs at a time when the economy is slowing.
Slovakia’s Cabinet approved 3.6 million euros ($4.7 million) in tax breaks for Italy’s auto-parts maker Brovedani, which is expanding production at its Slovak factory and will add 130 jobs, the government in the capital Bratislava said on its website today. The project’s total costs are estimated at 14.3 million euros, according to the document.
Continental Matador Rubber was granted 19.9 million euros in tax breaks in exchange for a 250 million-euro investment in expansion of its tire factory, creating 595 jobs, according to the government.
State aid combined with labor costs, which are lower than in western Europe are helping the eastern euro-area member to lure investors, mainly from the automotive industry. The government relies on foreign investment to help cut unemployment that at 14.4 percent in April is among the highest in European Union.