Cross-border programmes26 April 2008
Developments targeting regional cooperation are truly capable of reducing historically embedded social and economic divides experienced in Eastern Europe. This is what is taking place within the context of Hungarian-Romanian cooperation.
A budget of 263 million Euros will be invested in the development of Romanian-Hungarian relations during the 2007-2013 budgetary period within the framework of European Territorial Cooperation. The European Regional Development Fund (ERDF) has contributed 224 million Euros to this budget, whilst Hungarian-Romanian co-financing will cover the rest of budget. Applicants will be expected to contribute 5% owns funds on average. The objective of the programmes is to strengthen economic and social integration in border regions.
4 million people currently live in the regions integrated in the cooperation initiative. On the Hungarian side of the border, Csongrád, Békés, Hajdú-Bihar and Szabolcs-Szatmár-Bereg counties will take part in the programme, whilst Timis, Bihor, Arad and Satu Mare counties will participate on the Romanian side of the border. This 50 000 km2 area by and large covers the historic area known as the Partium; therefore, following a decades long era of divide, the historic province may once again be brought to life and invigorated.
Food industry and agriculture are one the key economic sectors in the region. Even though the standard of living is higher in the Hungarian regions, foreign investments will not only be concentrated in regions located on the Romanian side of the border around Timisoara and Arad, but will also largely be implemented in the Oradea area. Cross-boarder initiatives established earlier and cooperation between universities are the strengths of the region according EU analysis, whilst lack of infrastructure, Romanian environmental pollution and the high number of uncompetitive enterprises are weak points that distort the overall picture. The EU cooperation programme also highlights that transport is poor and how villages – particularly on the Romanian side – suffer from a lack of infrastructure. When approving funding, the way that the level of development of the region is well under the EU average is also taken into account, i.e., the ratio of enterprises in relation to the population is strikingly low (there are 82-108 enterprises per 1000 residents on the Hungarian side, however, only 17-24 enterprises in Romania as opposed to the EU index of 140 enterprises). The ratio of individuals employed among the active-age population (57-58%) is below the EU average (64%)
The over 60 billion HUF budget of the cooperation programme may be a seal for closing the gap. Jointly implemented Hungarian-Romanian projects that have proven cross-border impact may be approved within the framework of the programme that will be running up to 2013. At least two of the criterions stipulated in connection with joint management, joint planning, joint financing and conditions underpinning joint implementation must be fulfilled for applications to be approved funding. Projects spanning beyond the cut-off date of 2013 of the EU financing cycle will be at an advantage during assessment.