No Changes to Reallocation of EU Funds30 June 2009
A press release issued on 30 June announcing the regrouping of EU funding for crisis management purposes gave rise to misunderstanding in the way that it gave many people the feeling that this was a new series of decisions.
However, the most recent news announcement
presented a decision made in December last year. So, this piece of news is
yesterday’s news, but is nevertheless good news for the economy: Hungary
regrouped EU funding to make a higher rate of this funding available for small
and medium enterprises. These enterprises were targeted on account of how they
provide 65-70% of the jobs in Hungary, i.e., in response to the crisis, this
type of reallocation of funding makes it possible to retain the highest number
of jobs.
Not only Hungary, but the European Union also took action to respond to the
financial and economic crisis. Brussels is also reviewing funding frameworks
and priorities and is even encouraging member states to make certain types of
corrections. The crisis demands flexibility from everyone and under such
circumstances, development policy objectives and tools are also subordinated to
the crisis. Hungary too envisages making use of EU funding in a way that it
provides the best possible protection against the impacts of the
crisis.
To adjust to this new situation, funding is being regrouped, the frameworks of
certain calls for applications are being increased and calls are being sped up
and brought forward.
The Government discussed the proposal concerning the decision to reallocate
funding amounting to over 260 billion HUF among NHDP operational programmes in
December 2008 to be able to help preserve jobs and create new ones. In
accordance with this decision, most of the funding will be reallocated to the
Economic Development Operational Programme, since this programme primarily
targets small and medium enterprises, which sector provides 65-70% of the jobs
in Hungary. The following specific reallocations have been made among the
operational programmes: 16 billion HUF has been reallocated from the State
Reform OP to the Social Reform OP; 60 billion HUF has been reallocated from TOP
to EDOP; 51 billion HUF has been reallocated from SIOP to EDOP. The following
specific reallocations have been made within operational programmes: 20 billion
HUF has been earmarked for economic development within the framework of CHOP;
60 billion HUF has been earmarked for tax allowances underpinning job creation
and extension within SROP; funding amounting to 53 billion HUF has been brought
forward within the framework of EDOP.
The most recent piece of news in connection with reallocations announced by the
press was no secret during the past 6 months; the press reported on this in December
last year. Nothing has changed since; no new issues have arisen. The decisions
made in 2008 have since proceeded through every stage of the decision
procedure; potential applicants have been aware of these measures for over 6
months and the same funding frameworks have been available since December for
reaching the goals specified within the framework of specific tender schemes.