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Hungary ranks first in use of EU funding21 January 2008

Hungary is ranked first in the use of EU funding among the 12 new member states, and has so far not lost any funding because of the EU’s decision to bring forward the deadline for using the funding during the new budgetary period from three to two years.

At the press conference held in Brussels, the European Commissioner for Regional Policy said that Hungary ranks third among all 27 EU member states. Hungary has so far used 47% of the funding made available within the framework of the Cohesion Fund; however, on the one hand, this framework can be used up to 2010, and on the other hand, „major projects” are granted funding from this framework, which means that performance increases sharply, instead of gradually, following the close of these projects.

The Polish member of the European Commission highlighted Hungary’s „innovative thinking” in the way the country is endeavouring to speed up growth and reduce regional disparities. At the same, Ms Hübner drew attention to how simply drawing down EU funding is not enough; it is necessary to close the programming period in a way that funding will not have to be repaid in the following due to irregularities. In any case, this year is a key year, since the use of the framework made available for 2004-2006 will close, whilst new types of funding, for example funding 5-6 times higher on an annual basis in relation to previous frameworks, will be made available.

In response to the question raised in connection with the alleged irregular use of EU funding, Ms Hübner said that in Hungary’s case no reports suggesting corruption or the intentional misuse of funding have been received, nor has Brussels identified any facts that potentially support this claim.

Mr Gordon Bajnai said that last year a total of over 330 billion HUF of EU funding was paid to Hungary, which also includes Hungarian co-financing. Mr Bajnai added that we anticipate this year’s rate of funding to exceed the amount paid last year.