Minister: Hungary may access euro billions soon – UPDATED
The Hungarian government “has every chance” of signing the partnership agreements with the European Commission before the end of the year, Tibor Navracsics, the regional development minister, said on Tuesday. The agreements are necessary for the country to access cohesion and recovery funding from the EU.
Speaking at a meeting of local mayors and public notaries, Navracsics said the negotiations were on schedule and the EC could make relevant decisions in the second half of November, paving the way for Hungary to access the funds next year. The Hungarian government expects to receive up to 561 billion forints (EUR 1.4bn) next year, 747 billion forints in 2024, and 1,047 billion forints in 2025, the minister said.
Navracsics noted that including co-financing, Hungary is entitled to around 14,000 billion forints in the 2021-2027 funding cycle. Fully 10,000 billion forints of it will go towards regional development and 4,000 billion towards rural development operative programmes, he added. The post-pandemic recovery fund is worth a total of 6,000 billion forints, he said, adding that with the signing of the partnership agreement, Hungary could be given access to the first instalments of the funds next year.
“Our ambitions are also supported by the fact that Hungary has traditionally been among the best when it comes to the efficiency of the utilisation of EU funds,” the minister said, noting that this was also true for the 2014-2020 funding cycle in which Hungary had used up 80 percent of the funds it is entitled to compared with the EU average of 71 percent. Navracsics said Hungary aimed to utilise its own and the EU funds to be among the five most liveable countries in the bloc by 2030. The funds serve to develop the economy and infrastructure, improve competitiveness and support the green and digital transitions, he added.
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Concerning regional development, the minister said the government is working on the institutional system and policy concepts that will define its regional development policy over the coming years. Meanwhile, he said that because the gap between the capital and the rest of the country in terms of GDP per capita was still big, the urban and rural parts of the country needed different types of regional development policies. Though Budapest and the country’s rural regions “aren’t in the same league”, the capital “doesn’t have it that easy either” because it has to compete with the likes of Prague, Vienna, Bratislava and Warsaw, Navracsics said.
He highlighted the importance of creating regional hubs that could ease the burden on Budapest and play a positive role in the country’s economic and regional development.
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Agriculture minister hails EU approval of Hungary CAP strategic plan
The European Commission’s recent approval of the Hungarian government’s strategic plan in connection with the Common Agricultural Policy provides the country with a “historic opportunity”, Istvan Nagy, the agriculture minister, told a press conference on Tuesday. The minister called the agreement on agricultural subsidies for Hungary for the period until 2027 “favourable”, with the EC “giving greater priority to sustainability than before”, adding that food security and rural developments were also priorities for the Hungarian government. In its plan, the government has aimed to balance environmental considerations and aspects of competitiveness, he said.
The EU monies together with increased domestic funding would give an “unprecedented” momentum to rural development projects, farmers, and food producers, Nagy said, adding that he hoped the funds would help renew natural resources and the country’s natural environment. The funds could contribute to making the farming sector and the food industry more competitive, more efficient, and more resilient to crises, including “climatic challenges”, he said.
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Hungary’s strategic plan is based on assumptions of receiving 2,485 billion forints (EUR 6.2bn) in direct subsidies and 2,891 billion forints for rural developments. The EU will continue its direct subsidies, with Hungarian farmers receiving an annual 147 euros per each hectare of their land, while smallholders with up to 10 hectares of land could receive another 80 euros per hectare and 40 euros per hectare if they own between 10-150 hectares. Young farmers with land up to 300 hectares could receive 92 euros per hectare on top of the 147 euro basic subsidy, the minister said. The system, he added, would offer further subsidies if farmers made ecological commitments.
Zsolt Feldman, the ministry’s state secretary, said the EU funds could help increase Hungary’s agricultural production by 50 percent and double its value-added by the end of the decade. By 2030, Hungary’s agricultural exports could total 15 billion euros compared with 10 billion euros at the beginning of the decade, he said. He added that over half of the funds for rural development, nearly 1,500 billion forints (EUR 3.7bn), may go towards developments in the sector and 1,000 billion forints may be used to finance sustainability projects.
Hungarian tax system in OECD’s top 10 on competitiveness
Hungary now ranks seventh out of 38 countries in this year’s OECD Tax Competitiveness Index, up 6 places compared with the previous year, global financial consultant EY said on Tuesday. Hungary is ahead of Germany (15th), Austria (18th) and the United States (21st) on the OECD list. Among the Visegrad Group, only the Czech Republic was ahead of Hungary (5th), while Slovakia was in 13th place and Poland ranked 28th. Estonia, which leads the 2022 tax competitiveness index, was followed by Latvia and New Zealand, while Portugal, Italy and France were bottom of the list.
Source: MTI
Our Tax system is ranked 7th by the OECD? It’s actually the Tax Foundation – https://mediabiasfactcheck.com/tax-foundation/
Just checked – we are number 38 when it comes to consumption taxes – VAT, anyone? The tax all consumers pay? https://taxfoundation.org/publications/international-tax-competitiveness-index/#Method – scroll down for the Hungary comments.
Also suspect that, in calculating our Corporate Tax rank (5th), Local Business Tax was not considered (generally around 2 percent). The Methodological Changes section appears to confirm this.
Local Business Tax does not count towards the Global Minimum Tax we vetoed, either – there’s the OECD and the EU directive, aimed to introduce a 15 percent (effective) minimum tax rate on large multinational corporations with annual revenue of at least EUR 750 million.
Oh – and nobody doubts we are able to “utilize” the EU funds. The EU just wants to be certain the funds go where they are supposed to go – the Hungarian people. It is a transparency / Rule-of-Law thing,
Norbert, the EU funds go to Orban & Co
The name of Victor Orban on any documentation to the European Union received from Hungary, will continue RIGHTFULLY to be placed at the “not urgent” file – by the European Union.
Victor Orban – his on-going attempts, over years, to DISMANTLE, splint, fragment, separate and divide the European Union – which has humiliated him, by the rightful sanctions – holding back of funding, imposed on Hungary, the country that he presently holds the position of an “embattled” Prime Minister, a country that Economically & Financially, is in a state of a cataclysmic collapse.
What a LEGACY – will be left by Victor Orban in relation, just focusing on the European Union, which Orban and his “lot” – have humiliated, shamed, battered bruised and tarnished – embarrassed the citizens of Hungary, through Orban and his “lots” inability to represent us as a country centered on Candour.
History never Lies – and this vile & ugly chapter – the creation of Victor Orban – will NEVER be forgotten.
Victor Orban and his “lot” – they have placed Hungary through their abuse, misleading, misappropriation and fraudulent processes – their use and Distribution – the use of funding received from the European Union.
Victor Orban and his “lot” got caught with their ‘Fingers in the Pie.”
This is a one of the principal reasons, why Hungary, remains in the “on hold” or is it the End of future funding from the European Union – an arrangement – a membership DESTROYED by Victor Orban and his “lot.”
The European Union the requirements on the Orban “dictatorial” government, that Brussels still eagerly wait, that relate to BEHAVIOUR issues undertaken and acted out by the Orban Government, in application process and use of European Union Funding, plus factually on record – that the European Union no longer BELIEVE that Hungary is Governed under a Democratic process, a CORE requirement to be a member of the European Union, and there are “other” issues, that the EU seek answers and clarification, this Orban led “dictatorial” Government is CHALLENGED.