During the 2014-2020 EU development cycle, the economy will be assigned the leading role in the absorption of funds; the country’s most important goal is to place the Hungarian economy on a long-term course of growth, János Lázár, the Minister heading the Prime Minister’s Office said.
The Minister pointed out: the Government will in the future call for project proposals for EU funds by first consulting the relevant stakeholders and obtaining the approval of those to whom the opportunities are offered.
Stakeholders will have to be given cheaper, faster and simpler access to funds during the period between 2014-2020. To this end, it is necessary to facilitate access to EU funds, to change the construction regulations, to reduce bureaucracy in public administration, and to streamline the rules of taxation, he said. He further pointed out that it is equally necessary to obtain feedback on an ongoing basis in order to ascertain that the calls and procedures are in line with the goals set.
Mr Lázár takes the view that it was necessary to provide intensive support for the economic actors concerned in order for Hungary to be able to disburse 100 per cent of the allocation of HUF 8,000 billion which was available during the period between 2007-2013, even if only a small percentage of this allocation was awarded directly to the economy.
He stressed: they would like to involve the chambers and professional representations also in the evaluation of the conclusions of the 2007-2013 development cycle. “It is not the State that should dictate what applicants may submit proposals for in Hungary; the State should serve the needs which are related to the development of the economy”, Mr Lázár said.
He reiterated that EU funds worth HUF 1,000 billion have already been put up in calls for proposals from the allocation of the period between 2014-2020, and another package of HUF 1,000 billion is about to be announced. They will implement process-built controls in compliance with the EU regulations, and if possible, they will review quarterly whether the calls for proposals serve the objectives of the economy within the boundaries similar to those in place at present. They are expecting specific feedback from businesses through the chambers and interest representations in order to see in what direction processes are heading and whether the goals set have been attained, he said.
The Minister also mentioned that the Government will change calls for businesses in such a way that 50 per cent of the non-repayable and repayable grants should be available for drawdown as an advance upon the commencement of the project, and will further ease the obligation of providing collateral.
The Minister agreed with the view of interest representations that the Hungarian economy will need measures in 2016-2017 which enhance the country’s competitiveness. In his view, there are significant reserves in the reduction of state bureaucracy, and the funds awarded to businesses may induce a dynamic growth in the economy.
László Parragh, President of the Hungarian Chamber of Commerce and Industry highlighted: the main task of the period between 2014-2020 will be to make calls available which intensify economic growth, and are capable of improving competitiveness and the situation in the field of employment.
He reiterated that the Chamber had previously criticised the inappropriate utilisation of EU funds on multiple occasions, mentioning as emblematic examples the bier construction project, the refurbishment of main squares, and swimming complexes without heating.
He took the view that they are sensing some kind of impatience on the part of businesses in connection with the calls for proposals of the period between 2014-2020, and one may also observe that there are risks in the processes on the external markets. The suction power of the external economy may weaken, and the macro-economic funds related to the new calls will not yet be disbursed next year as the licensing and planning permission procedures, the construction works and the settlement of funds will take months, or may even take longer than a year.
The uncut version of the video recordings made at the event may be downloaded in the Press Room.
(Prime Minister's Office/MTI)
