A different financial framework will be needed if the EU wishes to enforce the spirit of the Treaties and to achieve the objectives of generating growth and employment as a means of recovery from the crisis – emphasized Minister of State Győri, speaking to journalists in Brussels November 20, 2012.

The Hungarian Minister of State in charge of European Affairs at the Foreign Ministry attended the meeting of EU European Ministers – the General Affairs Council – which was to prepare the extraordinary EU Summit to be held  Thursday-Friday. The meeting of the Heads of State and Government will discuss the multiannual financial framework (MFF) for 2014-2020.

The Minister of State declared that they did not have any tangible discussion on the size of the MFF and the criteria based on which the cohesion framework will be defined, since only the topmost leaders of Member States will be in a position to resolve the existing differences.

Despite this, it is unacceptable from the Hungarian perspective that according to the proposed rules, Hungary could get as much as 30% less cohesion funds between 2014 and 2020, than in the current period. The rules for distributing funds should be modified equitably, disadvantaged countries should return to be the focal point of cohesion policy – said Minister of State Győri, adding that if things stay the way they are now, there will be no solution, stating however that “they cannot stay the way they are”. She was on the opinion that a failure would not serve anybody’s interests. She also hoped that the President of the European Council Herman Van Rompuy – whom she considered an excellent mediator – will be able to find a compromise.

The Minister of State also considered it important to reach an agreement at the earliest, so that the issue of the MFF does not interfere with the agenda of the EU Summit in December. The December meeting will discuss important issues related to the future of the EU, like for example the question of a banking union. In this respect Hungary will strive for a balance between rights and obligations; while opposing to the creation of a “double budget”. This would mean the creation of a separate budget for the euro-zone country group. Hungary – said Minister of State Győri – wishes to preserve the integrity, the Single Market of the Union.

Notwithstanding this, progress was also achieved at the Tuesday meeting of the General Affairs Council with respect to the cohesion legislation package. Although not on the amounts, but in two areas, which are about transforming the rules for the spending of cohesion funds: financial management and the issue of joint strategic framework, she added.

Concerning the first issue it was an important consideration for Hungary that there should be enough liquidity available for implementation, she stated. In this respect, the system developed for annual advance payments was acceptable for Hungary, she said.

It also had to be clarified in this sense, how mistakes could be avoided in the spending of cohesion funds. According to the Hungarian position, what needed to be ensured fundamentally was that Member States should not be given funds for unsuitable purposes, because this eliminates the possibility of corrections later. According to Minister of State Győri, an agreement was reached that “serious systematic irregularities” regarding spending can be sanctioned in the future.

An agreement was also outlined among the EU Ministers on the joint strategic framework, which sets forth the rules for presenting planned cohesion fund applications.

(Ministry of Foreign Affairs)