The absorption of the EU funds allocated for the period between 2007-2013 is characterised by a degree of ambiguity. On the one hand, it may be seen as a success that the absorption of the totality of the available funds is guaranteed. However, these funds did not actually promote the growth of the economy, Nándor Csepreghy stressed on Wednesday at the presentation of the publication prepared for applicants and organisations inviting proposals held at the Károli Gáspár University of the Reformed Church in Hungary.

The Minister of State at the Prime Minister’s Office highlighted: the utilisation of EU funds during the period between 2014-2020 will concentrate on the growth and development of the Hungarian economy and the creation of new jobs in order to render growth sustainable beyond 2020 even in the absence of EU funds. In his lecture, Mr Csepreghy pointed out that the exceeding of the allocation guarantees the absorption of the totality of the funds made available for the period between 2007-2013, and the 8 per cent free allocation will be sufficient to settle any disputes. The Minister of State took the view that the funds provided between 2007 and 2013 could have been used more wisely.

In his view, the government in force at the time did not identify the focal points of long-term development at the negotiations concerning the utilisation of funds, did not undertake to engage in political conflicts, and sought to provide funds for everyone.

The Minister of State said it was a strategic error that the government in office at the time set more stringent conditions for the utilisation of the allocation available for the period between 2007-2013 than those designated by EU bureaucracy.

Mr Csepreghy pointed out that a significant proportion of the HUF 8,600 billion allocated for the period between 2007-2013, some HUF 1,500-1,600 billion was absorbed by consultants. As he said: this much less money was available for the purposes of developments. By contrast, 60 per cent of the allocation will be made available to the business segment during the period between 2014-2020, in contrast to just 16 per cent during the previous cycle, and the percentage of funds that may be used for the preparation of developments has been capped. Additionally, in the case of the absorption of funds by the State, no external assistance may be resorted to, Mr Csepreghy highlighted.

The Minister of State took the view that it is an obstacle to the competitiveness of Hungarian businesses that their manufacturing capacity is dated in terms of quality, and they therefore intend to support the modernisation of technical equipment. He remarked: Hungarian businesses are primarily facing a capital crisis, rather than a lending crisis. Consequently, they will develop a capital replacement programme from the repayable EU funds with the involvement of interest representations in order to resolve the capital situation over a period of 3 to 5 years.

The publication System of EU Funds 2014-2020 – Practical Guidelines for Applicants and Institutions Calling for Proposals, which introduces the mechanism of grants, was published by the Károli Gáspár University of the Reformed Church in Hungary and the Hétfa Research Institute.

(Prime Minister's Office)