Hungary plans to utilize available funds in a more concentrated way than it does currently during the European Union's upcoming development period in 2014-2020, stressed Deputy Secretary of State for Development Programmes Nándor Csepreghy in Budapest on Thursday at the conference jointly organised by the Regional Development Holding and business magazine Piac és Profit (Market and Profit).

Mr. Csepreghy also stated that Hungary would like to put 60 percent of the available budget towards direct economic development, with the remaining 40 percent earmarked for sector development. The Deputy Secretary of State indicated that each member state must make an undertaking with regard to the realisation of the Europe 2020 strategy and operate its own system of development policies along these lines.

Hungary replied to the Europe 2020 strategy with its National Reform Programme, and the operational programmes for the next fiscal period must be developed accordingly.

In is speech, Mr. Csepreghy pointed out that negotiations on the spending structure are also going on parallel to the determination of the budgets for the upcoming development period, and issues regarding the institutional system will only be discussed later.

During the conference, Mr. Csepreghy informed those present about the current status of the 2007-2003 European Union development period, stressing that 85 percent of available HUF 8200 billion in development funding available to Hungary for this period is provided by the European Commission, with the remaining 15% coming from domestic joint funding.

Hungary has already earmarked 95 percent of the total available budget through tenders, and the remaining 5 percent, some HUF 188 billion, will soon be made available through the launching of new tenders.

A further HUF 1097 billion in funding must be allocated to applicants this year for the whole 7-year budget to be utilized, he added.

With regard to disbursement, the Deputy Secretary of State said that HUF 1500 billion must be paid out in 2013 and HUF 1700 billion-a-year in 2014 and 2015 for the whole 2007-2013 budget to be spent.

On the subject of speeding up the allocation of EU funding for 2007-2013, Mr. Csepreghy said that the tender system and disbursement had both been simplified and accelerated after the Government came to office. As further examples, he mentioned the introduction of advances to suppliers and the establishment of a fund to support the payment of own funds by the public sector.

He also stated that the Ministry of National Economy had presented its proposal for the structure and priorities of the operational programmes to the Government. If accepted by the Government, the issue is expected to be opened to public debate in spring of this year. If, after this, a Government standpoint emerges with regard to the structure, and especially the priority axes of the operative programmes, the proposals will be passed on to the European Commission for examination, and the EC will then deliberate on how they may support the realisation of Europe 2020 strategy objectives.

If the European Commission sees this as confirmed, it will accept the proposals, and if not then it will ask the member state in question to amend them, Mr. Csepreghy added.

(Ministry of National Development)