The European Commission has approved the first draft of Hungary's Partnership Agreement on planning development resources for the 2014-20 European Union budgetary period, the state secretary in charge of economic strategy said on Tuesday.

Cséfalvay said explained that Hungary plans to spend 60 per cent of the resources on economic development in the period starting next year. The largest amount, an expected 1,200 billion forints (EUR 4bn), will be spent on boosting employment, which is twice as much as current spending in this area, he added.

The government plans to spend a further 1,100 billion forints on improving the competitiveness of SMEs, he said. The government plans to submit the partnership agreement in November this year. This will be followed by a formal agreement with the EU. The document, together with the operative programmes, is expected to be approved in the first quarter of 2014, the state secretary informed.

(Ministry for National Economy)