A million new jobs, development of the Hungarian economy on seven points of strategic importance are to make the supreme goals in the economic programme devised by the Government of National Cooperation called ‘New Széchenyi Plan’.

In the New Széchenyi Plan, attention is particularly focused on the goal of dynamic job creation. In terms of figures, the programme of economic and social development is designed for a million of jobs to be created over ten years in Hungary.

Based on this new economic agenda, the old-fashioned socialist redistribution policies should be replaced by a growth-oriented strategy with the objective that everybody is better off, rather than nobody is worse off. This policy is for what dynamic and sustainable economic growth is required and the fruits of which all the people could enjoy.

The necessary economic policy turnaround can be achieved by exploiting the opportunities given in the national economy including 7 priority projects of the New Széchenyi Plan:

1. Healing in Hungary – health industry

2. Renewal of Hungary – green economic development

3. Home projects – housing program

4. Enterprise promotion – development of business environment

5. Science – innovation – economic growth

6. Employment

7. Transport – transit economy.

On the Point 7, some 18 months of analyzes were spent to work out the development field concerned in more than 70 working groups with the participation of 500 researchers and highly-skilled economic experts.

The Government is keen on involving the small and medium-size enterprises (SMEs) in both preparatory works and implementation of the programme to secure a successful national economy. For the entrepreneurs to be at the forefront of economic policy, competitiveness to improve and the objective of creation of one million jobs to be met, the public sector should enter into alliance with the private one.

The basis and framework for this alliance is the New Széchenyi Plan as a win-win deal for all the involved as a result of which the entrepreneurs and people who want to be better off gain opportunity, promotion and knowledge, income rewarding diligence, public order, good schools as well as health services of good quality. Easing of employment problems, lower debt burden and great social achievements are expected on the Government’s side at the same time from the funds and resources arising out of the Plan.

The New Széchenyi Plan is open to adopt and build in the programs, projects and proposals of the entrepreneurs, local governments and various small regions. The Plan should serve as a platform, a facility for the various economic players, businesses and local governments to join with tenders, proposals and developments.

The New Széchenyi Plan relies upon the entrepreneurs, local governments and the central government to take risks in common. However, given the current situation of public finances, the central government may particularly take part in pooling the risks of development through EU funds.

To this end, the system of distribution and tenders for EU funds must fundamentally be overhauled. It is out of government responsibilities to find out what tenders entrepreneurs and local governments need. To the contrary, the applicant, the entrepreneur or the local government should have an idea or project for development; they should like to establish or initiate something, spending their internal funds on the purpose while the government should be responsible for providing favourable financing conditions for completion by using EU funds. In other words, the plans or demand of entrepreneurs should be centred, rather than supply policies.

In the period between 2007 and 2013, EU funds available to Hungary amounts to HUF 7870.17 billion of which HUF 1828.8 billion can be used at present for 14 projects and commitments at HUF 4126.5 billion.

Funds immediately available to the SME sector amounts to HUF 155 billion based on the figures of the funding map from the Economic Operative Program and Regional Operative Programs. It must be emphasized that the amount above makes SME assistance available immediately on the short run.

The Government of National Cooperation is now considering a proposal to cancel or revise project funding at HUF 477 billion in total. As a result, EU assistance of HUF 41 billion may be released due to the measures to be taken in the future. With the funds so released, project proposals could be feasible and new forms of assistance could be explained in line with the Government’s economic and development policy goals including the priorities of the New Széchenyi Plan.

The leaflet of the New Széchenyi Plan discusses the key objectives, economic policy principles and guidelines. The Plan is far from being completed. It is on the weeks and months ahead to prepare further details thereof in addition to the system of tenders supporting the New Széchenyi Plan in cooperation with the economic players.