The development policy of the period between 2014-2020 may be regarded as successful if there are 5 million jobs, that is, 800,000 more jobs in Hungary by 2020 than there are at present, and if the country is able to build and develop its industries which promote the growth of the economy, Deputy State Secretary for Development Policy Communication Nándor Csepreghy said.
At the opening of the concluding event of the business development roadshow „Super” (Series of Events in Preparation for Successful EU Calls), Nándor Csepreghy highlighted: the objective of Hungary’s development policy is that the Hungarian economy should have thousands of ties to the EU after 2020, whilst economic growth relying on the country’s internal resources and reinforced business actors should permit the functioning of development policy even against the availability of reduced cohesion funds.
The Deputy State Secretary said: the Hungarian Government believes that the EU’s cohesion policy will not continue in its present form after 2020. This view of the Government is based on the internal political and economic conflicts which exert pressure on the European Union from within, he said.
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Mr Csepreghy takes the view that funds should be used during this cycle in a different fashion, and drew attention to the fact at the same time that, based on EU funds falling on one person, Hungary occupies second place with HUF 712,000/capita in the rankings of Member States. He pointed out that, in addition to the quantity of funds, the way in which they are used is equally important: they will use 60 per cent of the available HUF 12,000 billion for the development of the economy during the period extending to 2020, and will primarily promote the SME sector. He added: in the department of innovation, we must reach the EU average, and therefore HUF 750 billion will be specifically dedicated to innovation goals.
The first calls are designed to serve the purposes of technological development as one of the greatest competitive disadvantages of Hungarian manufacturing companies is their dated stock of assets, he said. It will also be important to encourage SMEs to use renewable energy sources, and to create a vocational training and higher education system which provides marketable work force.
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Mr Csepreghy pointed out that the success of development policy also depends on the State, and the Government will therefore use the remaining 40 per cent of funds on the basis of very clear-cut objectives. He mentioned as an example that all 23 county-ranked cities will be connected to the network of express roads by 2020. The Deputy State Secretary also spoke about the efforts to be made to make the call system fairer and more predictable.
He said that possible calls for the following year will have to be disclosed to the public by 30 November of each year, and it is also a new feature of the system that potential applicants may study the calls for proposals for a period of 30 days following their publication, but may only submit proposals upon the passage of this period. Mr Csepreghy further made mention of the introduction of electronic administration, the new rules relating to own resources, and the reduction of the quantity of data applicants are requested to supply.
Zoltán Kazatsay, Deputy Director General of the European Commission stressed in his lecture: the European Union’s cohesion policy between 2014-2020 accounts for one third of the seven-year budget, amounting to EUR 352 billion. The cohesion policy serves to implement the objectives of Europe 2020 through the attainment of intelligent, sustainable and inclusive growth.
He added: combined with the expected national contributions, some EUR 500 billion will be available for cohesion policy purposes in the entire EU.
Based on the magnitude of funds, Hungary will receive the sixth largest EU funding contribution during the period between 2014-2020: EUR 21.9 billion of EU cohesion funds will be available to Hungary, Mr Kazatsay stressed. He added that, combined with the available agricultural funds, Hungary will have access to EUR 25 billion of EU development funds. EUR 464 million will be dedicated to the Central-Hungary region, he said.
Mr Kazatsay further highlighted that Hungary’s operational programmes were very thoroughly prepared, and there was effective cooperation between Hungarian experts and the Commission. He said: „life will continue also beyond 2020”; the European Commission will continue its development policy in a streamlined fashion, based on the experiences of the past.
Ministerial Commissioner Lajos Szűcs stressed: Pest County is in a privileged situation as, together with Budapest, it accounts for more than 30 per cent of Hungary’s gross domestic product, and this is where almost 40 per cent of businesses operate. This region will receive relatively less EU funding during the period between 2014-2020. He therefore took the view that it will be necessary to devise a scheme similar to the Economic Development and Innovation Operational Programme which specifically serves to support and promote small and medium-sized businesses in Pest County and Budapest from local funds; however, no decision has been taken yet.
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László Krisán, Chief Executive Officer of KAVOSZ Zrt. pointed out: one of the most important opportunities of Hungary’s growth lies in the currently operational almost 644,000 SMEs; their development may have a multiplying effect. The economic crisis took its toll on businesses, and their technology is dated; but now 80 per cent of them are planning to implement developments and are „very hungry” for EU grants. Based on their own survey, the CEO also mentioned that 51 per cent of businesses would not just like non-repayable grants, while as expected, there will be no such grants available after 2020.
(Prime Minister's Office)
