Hungary has a budget allocation of approximately €21.9 billion for cohesion policy from 2014-2020, focusing on improving competitiveness, employment, energy efficiency, and social inclusion. The European Structural and Investment Funds aim to foster regional development, particularly in less advantaged areas, with various operational programs addressing key thematic goals. Expected outcomes include increased research and innovation expenditure, energy consumption reduction, and improvements in education and business environment.

1. HUNGARY
UPDATE | 11| 2014

2. EU BUDGET
2014 | 2020

3. COHESION
AREAS

4. POLICY
ELIGIBILITY
2014 - 2020

5. ALL AMOUNTS x 1.000.000
EU BUDGET
ALLOCATION
IN 2011 PRICES
Global Europe
Administration
Compensation
Security & Citizenship
€ 199.828
€ 959.988
in current prices: € 1.082.555

6. BUDGET
PROPORTIONS
AMOUNTS
REGIONALLY
ALLOCATED
ALL AMOUNTS x 1.000.000

7. BUDGET
HUNGARY
AMOUNTS
REGIONALLY
ALLOCATED
ALL AMOUNTS x 1.000.000

8. THE 5
ESI FUNDS
The five European Structural and Investment Funds;
| The European Regional Development Fund
| The European Social Fund
| The Cohesion Fund
| The European Maritime and Fisheries Fund
| The European Agricultural Fund for Rural Development

9. PARTNERSHIP
AGREEMENTS
| EU Member States are required to draw up and implement
strategic plans with investment priorities covering the five ESI
Funds.
| These Partnership Agreements (PAs) are negotiated between the
European Commission and national authorities, following their
consultation of various levels of governance, representatives from
interest groups, civil society and local
and regional representatives.

10. MAXIMUM
AID PERCENTAGES
Under the regional guidelines, areas which have a GDP per capita
below 75% of the EU average are eligible in priority for regional
investment aid, as the main purpose of regional aid is to foster the
development of the less advantaged regions of Europe.
| Under the new map, regions accounting for 70.4% of the population of
Hungary fall under this category and will continue to be eligible for regional
investment aid at maximum aid intensities varying between 25% and 50%
of the eligible costs of the relevant investment projects.

11. MAXIMUM
AID PERCENTAGES
Under the guidelines, other regions in a relatively disadvantaged
situation in relation to the EU or national average can also be made
eligible provided that they comply with certain criteria.
As these regions are less disadvantaged from a European perspective
than areas with a GDP per capita below 75% of the EU average, both the
geographical scope and the aid intensity are limited. 6.33% of the
Hungarian population living in the region of Pest will be eligible for regional
investment aid under this category, at maximum aid intensities varying
between 20% and 35%.

12. STATUS
CURRENT
UPDATED 30/10
Total number
of OP´s submitted
per country
Countries have
their OP´s
adopted: 21 OP >Denmark
1 OP >Lithuania

13. PLANNING
| Partnership Agreement Adopted 26 – 08 – 2014
| 7 Operational Programme’s submitted
| Adoption of OP’s by European commission in Q4 2014
| Exp.1st grant calls Q1 2015 for funding priorities related to OP’s
OPs should be submitted by Member States within 3 months following the
submission of the Partnership Agreement.
The Commission makes observations within 3 months and adopts the OP
no later than 6 months from the date of its submission.

14. FUNDING
PRIORITIES
The PA focuses on the following five main national development
priorities as already identified in the Hungarian National
Development and Territorial Development Concept.
| Improving the competitiveness & global performance of business sector
| Promoting employment through economic development, employment,
education and social inclusion policies, taking account territorial disparities
| Enhancing energy and resource efficiency
| Tackling social inclusion and demographic challenges
| Implementation of local and territorial development aimed at promoting
economic growth

15. EXPECTED
RESULTS
The ESI funds will assist Hungary in strengthening social,
economic and territorial cohesion and in particular achieving
national targets of EU2020 and its flagship initiatives:
|• R&I expenditure in relation to GDP is to increase from 1.3% (2012) to
1.8% (2020) levering private R&I spending from 0.34 to 0.8 GDP.
|• In relation to energy objectives, ESI Funds will provide a significant
contribution to reducing energy consumption in buildings and enterprises
and facilitate achieving the target of 14.65% share of renewable energy in
total energy consumption by 2020 (9.6% in 2012).

16. EXPECTED
RESULTS
•| Concerning education, the ESI Funds will contribute reaching the 30.3%
target of people acquiring higher education degrees (30-34 age cohort)
and reduce early school leaving to 10% (11.8% in 2012) by 2020.
•| The funds aim to improve the Hungarian business environment by
reducing administrative burden for businesses and improve investors'
confidence.

17. FINANCIAL
ALLOCATIONS
In 2014-2020 Hungary is allocated around €21.9 billion (current
prices) for Cohesion Policy (ERDF, ESF, Cohesion Fund) including
€49.8 million for the Youth Employment Initiative and €361.8
million for territorial cooperation.
| Additional €3.45 billion will be devoted to development of the agricultural
sector and rural areas from the European Agricultural Fund for Rural
Development (EAFRD).
| The allocation for European Maritime and Fisheries Fund (EMFF)
amounts to some €39 million.

18. FINANCIAL
BREAKDOWN
| € 15 billion for less developed regions:
Közép- Dunántúl, Nyugat-Dunántúl, Dél-Dunántúl, Észak-Magyarország,
Észak-Alföld and Dél-Alföld
| € 463.7 million for the more developed region (Közép-Magyarország)
| € 6 billion under the Cohesion Fund
| € 361.8 million for European Territorial Cooperation
| € 49.8 million for the Youth Employment Initiative
Of this, the ESF will represent € 4.7 billion, 30,46% of the Structural Funds
resources.

19. THEMATIC
1. Research, technological development and strengthening of
innovation.
2. Access to information and communication technologies, technologies
to improve the quality of use.
3. The small and medium enterprises, agriculture, fisheries and
aquaculture sector to improve competitiveness.
4. Towards a low carbon-emission economy to shift support from all
sectors.
5. Adapting to climate change adaptation, risk prevention and promotion
management.
GOALS

20. THEMATIC
GOALS
6. Promoting environmental protection and the efficiency of resource
use.
7. Promoting sustainable transport and removing bottlenecks in key
network infrastructures.
8. Employment and labor mobility.
9. Combating poverty and promoting social inclusion.
10. Education, skills and throughout the lifelong learning project.
11. Enhancing institutional capacity and an efficient public administration.

21. PROGRAMME
ARCHITECTURE
Cohesion policy will be delivered through 7 operational
programmes (OPs), meaning a simplified programme architecture
compared to the 2007-13 period (15 OPs):
•| 2 national OPs co-financed by ERDF and ESF (Economic Development
and Innovation OP, Human Resources Development OP)
•| 2 national OPs co-financed by ERDF and CF (Integrated Transport OP,
Environment and Energy Efficiency OP)

22. PROGRAMME
ARCHITECTURE
•| 1 national OP co-financed by ESF and CF (Public Administration and
Services OP)
|• 2 territorial OPs co-financed by ERDF and ESF; one covering all less
developed regions and the other the more developed region of Central
Hungary
Moreover there is 1 Rural Development Programme (financed by EAFRD)
and 1 Fisheries programme (financed by EMFF).

23. EU BUDGET
BEEAKDOWN
ALL AMOUNTS x 1.000.000

24. ALLOCATION BROKEN DOWN BY
THEMATIC OBJECTIVE& BY FUND

25. ALLOCATED FUNDS

26. OPERATIONAL PROGRAMMES
Operational Programmes Abbreviation
Economic Development OP EDOP
Transport OP TOP
Social Renewal OP SROP
Social Infrastructure OP SIOP
Environment and Energy OP EEOP
State Reform OP SROP
Electronic Administration OP EAOP
West Pannon OP WPOP
South Great Plain OP SGPOP
North Great Plain OP NGPOP
Central Hungary OP CHOP
North Hungary OP NHOP
Central Transdanubia OP CTOP
South Transdanubia OP STOP
Implementation OP IOP

27. ALLOCATION PERCENTAGES BY
THEMATIC OBJECTIVE& BY FUND

28. OPERATIONAL PROGRAMMES