Tibor Navracsics: EU payments can start by the end of November

By RockedBuzz 9 Min Read

If I need to reply briefly, I’ll say that I’ll know extra after Thursday: then I’ll go to Brussels to evaluate the state of affairs

Minister of Regional Development Tibor Navracsics started his presentation in response to questions associated to the EU negotiations. As beforehand reported by Portfolio, the politician and EU Affairs Minister János Bóka is touring to Brussels with a bigger delegation. In addition, even the European Commission acquired optimistic statements earlier than the listening to, which is an effective signal relating to the use of EU funds. The minister is subsequently assured that the Hungarian funds will likely be launched quickly.

The minister stated that Hungarian territorial growth is successful story for the time being, as all areas of Hungary have caught up with the EU common, however the tempo of that is completely different in every space. Budapest, for instance, now exceeds 156 % of the EU growth common, whereas the Northern Great Plain reaches solely 49 %. According to him, one of the root causes of that is that the capital and its environment acquired greater than half of the growth subsidies, whereas the GDP degree right here is the highest.

Tibor Navracsics has already talked about it a number of occasions in the previous, however he additionally famous that the area-based growth coverage must be reconsidered.

According to him, it is usually as a result of there may be an especially sharp competitors between Central European nations in phrases of catching up. Hungary is doing nicely on this regard as nicely: it has improved from 62 % in 2004 to 78 %, however a number of EU member states in a number of areas have achieved the same efficiency. He identified that in phrases of growth now we have already surpassed Greece and have now approached Portugal, which reveals that Hungarian assets are getting used effectively.

However, he emphasised that that is solely the nationwide common, and the map displaying home growth modifications is extra fragmented when taking a look at the counties. Thus, it can be seen that the extra backward areas of Northern Hungary expanded quicker, as did the much less developed Baranya county. The lead to the elements of the nation in central Hungary, which incorporates Budapest, is outstanding, whereas these areas began from the next base. On the different hand, the already extra developed Győr-Moson-Sopron was slower to catch up, the base impact prevails right here as nicely, however in the meantime, exactly as a result of of the comparatively excessive degree, the county was capable of get fewer EU funds. According to the minister, this additionally helps the truth {that a} new method to regional growth is required.

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Tibor Navracsics

Government of Hungary, Minister of Regional Development



EU funds can assist loads

Regarding EU funds, Tibor Navracsics highlighted that we have been in a position to attract 94 % of the 2014-2020 EU cohesion funds,

which supplies us the fifth finest absorption capability in the union.

He assessed that “it’s value giving Hungary the EU funds, as a result of they’re nicely utilized and used appropriately”. But the minister emphasised once more that the territorial distribution inside the nation and the allocation of assets can nonetheless be improved so that each one elements of the nation can be developed higher.

Regarding the 2021-2027 funds cycle, Tibor Navracsics stated that the essential targets set by the earlier Orbán authorities have been financial and infrastructure growth, bettering competitiveness, and job creation. He additionally emphasised that additionally they need to obtain that by the end of the cycle, Hungary is amongst the 5 most livable nations in the EU.

He famous {that a} complete of HUF 14,000 billion is anticipated from the seven-year funds, of which HUF 9,792 billion will go to operational packages, whereas HUF 4,418 billion will go to rural growth and agricultural help.

In reference to the negotiations with the European Commission, he stated that final yr the partnership settlement was accepted in accordance with the preliminary plans, however Brussels stopped the disbursement citing the non-fulfillment of the horizontal authorization circumstances. He stated of the course of, finest identified for judicial reforms, that “we’re in the ultimate phases of negotiations.”

Tibor Navracsics defined at our Budapest Economic Forum convention that the judicial reform was accepted by the parliament in May, and the committee’s questions from September have been answered.

He hopes that the authorities can shut the dispute blocking cohesion funds on Thursday.

In the case of operational packages, he regrets that regional coverage facets are even much less efficient as a result of they have been developed by the earlier authorities. He famous that the financial growth half grew to become the most outstanding half of the HUF 2,294 billion program, however he highlighted the digital renewal operational program as a brand new factor, for which greater than HUF 732 billion is allotted.

Regarding the different massive set of assets, the restoration and resilience device (RRF), he defined that the help half quantities to HUF 2,294 billion, so 24.7 % goes to the growth of sustainable inexperienced transport, and 21.3 % is used by the cupboard for power, however right here too digitization is a vital factor.

In reference to the mortgage half and the RePowerEU subsidies, he defined that the authorities requested this in September, which suggests about HUF 1,481 billion in extra monetary belongings for the growth coverage.

All of this contains main transitions and help for residential power initiatives. In phrases of its areas, the demographic, round and inexperienced economic system, in addition to power sectors are dominant in the useful resource utilization plans, defined the minister.

“The public opinion is that we do not need entry to EU funds. This is simply partially true, as a result of the horizontal authorization circumstances don’t enable us to start financing operational packages. However, there are exceptions, so the authorities already disburses pre-financing,” the minister stated in his presentation. In this regard, he defined that Hungary – though it doesn’t have entry to EU funds – has already drawn 3 % of the obtainable funds, partly via EU pre-financing and partly via a preliminary funds contribution.

I belief that the negotiations on the horizontal authorization circumstances can be concluded by the end of November, and that we are going to put together the initiatives at such a degree that the EU funding can start instantly

the minister acknowledged.

In the case of the restoration fund, by the end of August 2026, we should attain a degree the place the given challenge isn’t solely realized, but additionally capable of function. We have two excuses that we’re relying on: the absolute best preparation, in addition to the incontrovertible fact that the fee doesn’t proceed easily in a number of different nations, so in accordance with him, the deadlines have to be reconsidered at the EU degree in order that the RRF actually helps the developments.

Cover picture: Tibor Navracsics, Minister of Regional Development, offers a speech at the Budapest Economic Forum 2023 convention. Photo supply: Portfolio/Ákos Stiller.

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