EU funding available within the 2014-2020 programming period must be put towards improving Hungary’s competitiveness, Minister of the Prime Minister’s Office János Lázár said in Budapest on Thursday.
At a conference organised by online economic newspaper Portfolio, Mr. Lázár said that even with the narrow margin of movement possible within the EU, the aim is to utilise the HUF 12,000bn (EUR3.9bn) in available funding in a way that makes the Hungarian economy the strongest and the most competitive in Central Europe and enables Hungary to regain its leading position within the region. The Minister explained that it is both necessary and possible to adjust EU regulations to the interests of the country. The adoption of EU dictates is not equivalent to the interests of the country, he said. We are trying to find more leeway for the enforcement of our interests since it is not enough to simply adopt EU regulations and manage the disbursement of funding. EU funds are a means that must be used wisely, and this is why regulation is so relevant, he added.
EU funding significantly contributes to Hungarian economic growth, the Minister said, adding that every Hungarian may have some level of self-criticism if they think about what other means of development are available to Hungary apart from EU funding and how great an economic influence Hungary would be able to exert in Europe, in the world, and in regional competition without these funds.
Competitiveness can be increased through reducing bureaucracy, he said, pointing out that “the whole Hungarian bureaucracy and state apparatus is built on suspicion, the hindering of success, strict regulation and intimidation”. It contributes to the fact that the Hungarian economy is not competitive enough, he said. The Minister also considers the procurement system important with regard to competitiveness. The new procurement act is in development and Parliament is expected to approve it in the second half of this year. “Procurement regulations and the related institutional system and procedures will be much more flexible; it will all operate on an electronic basis”, he said. Everything will be more transparent and there will be much less concentration, enabling everyone to have access to funding according to the “live and let live principle”, he declared, stressing that this is very important to the country’s economic development and competitiveness.
The Minister said that the previous institutional system for the disbursement of EU funding was a mistake and the whole system should be returned to state management. The changes are necessary in view of the monitoring and liability system, he stressed, emphasising that “the liability system is clearer, simpler and more transparent” if the process is supervised by a Ministry instead of it being outsourced into a “dead space”. This holds true even if there are doubts in Hungary regarding the efficiency of the state.
The National Development Agency previously responsible for the distribution of EU funding in fact increased corruption-related risks and bureaucracy instead of decreasing them, he said. The Minister noted that he is not in favour of outsourcing state duties. Tendering must be entrusted to the state apparatus and well-paid officials who represent national interests and not the interests of the market or Brussels, he underlined.
(Prime Minister's Office/MTI)
