Hungary is above EU average in drawdown of grants in Brussels

The withdrawal of EU grants is making good progress: grants worth HUF 2,488 billion were paid to awarded local applicants by 31 December last year, and more than HUF 900 billion of this sum had already been reimbursed by Brussels by the end of the year, Eszter Vitályos, Minister of State for EU Developments at the Prime Minister’s Office told the Hungarian news agency MTI on Tuesday.

She stressed that EU calls for proposals are subject to post-financing, the Member States first make the funds awarded to developments available from their own budgets, but Hungary is above the EU average in the drawdown of grants in Brussels.

The Minister of State highlighted that by easing the regulations relating to the advancing of grants the Government sought to ensure that businesses and beneficiaries in the public sector should have access to as substantial advance payments as possible, thereby guaranteeing the financing and completion of projects.

The Government was aware that the changing of the regulations would involve a delay in the receipt of EU grants because Brussels only transfers grants parallel with the progress of developments, in some instances years later.

However, the stable Hungarian economy allows the domestic budget to finance the required sum

despite the substantial time difference, and state finances do not suffer any disadvantage on account of payments related to EU calls for proposals, Ms Vitályos highlighted.