Only last month, Fiat Chrysler (FCA) Serbia received the first tranche of subsidies, worth 15.5 million euros, for the improvement of the local plant in Kragujevac, although the Ministry of Economy granted an incentive of more than 48 million euros back in April last year, but the procedure was frozen in the meantime, according to New Economy.
The relevant ministry did not pay FCA Serbia funds until a new decision was made, the State Aid Control Commission said in its response to the magazine.
When asked why the payment of subsidies was delayed for a year and a half, New Economy did not receive an answer from the Ministry of Economy, nor from the FCA.
During the period of suspension of the payment of state aid, and due to the announcement of the relocation of production, Fiat offered the workers a two-year job in Slovakia or the termination of the employment contract with severance pay, which was accepted by almost 500 workers.
The “unfreezing” of the subsidy coincides with claims that the production of a new electric vehicle model will begin in Kragujevac next year, which Fiat will officially present only then, but also during the pre-election campaign.
The contract from 2022 was worth 190 million euros, of which Serbia had to allocate 48 million from the budget. Then the new electric vehicle “Panda” was announced.
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