3. Regionalization and Regionalism in the European Union and Hungary
3.7. Main Points of Regional Policy in Hungary
While the strategic goal of the EU regional policy is to catch up the underdeveloped regions, Hungary’s join to the EU provided new possibilities for the less developed regions, mostly for Northern Hungary and the Northern Great Plain. Regions meeting the requirements of the subsidy policy can be supported significantly, as about 40% of the EU budgetary serves the elimination of underdevelopment and the structural improvement. Development sources, among them the Structural Funds and the Cohesion Fund is basically used for the regional support system from the accession period. Consequently, future prospects are promising.
An important factor in regional (structural) support policy in Hungary is the determination of the target group and objectives of structural subsidies. From 2000, these are as it follows:
Objective 1: support for less developed regions with a maximum 75% GDP per capita of highest significance. This involves areas, where the GDP per capita is under the level of 75%
of the EU average. Brussels accepted the central region of Hungary (Budapest and Pest County) to also get involved in this category till 2007, however, this region can achieve even the level of 98%. Pest County facing structural difficulties can be involved into target group 2, so this can get further supports (Table 3.13.).
Table 3.13.: GDP per capita in Hungarian regions, 2009 Thousand development – can use the development sources in the upcoming years: 1.030 billion EUR in 2004, 1.180 billion EUR in 2005 and 1.464 billion EUR in 2006. In the convernsion period, the EU considers Hungary to be a sole region. Regional differences are well displayed in Table 3.13., the difference between the development levels of Northern Great Plain and Central Hungary is one to two and half.
In the regional support policy of the EU, the beneficiary regions, the support allocation and the support rations are determined previously for seven years, following the EU budgetary periods. The present budgetary period started on 1st January, 2007, however, the newly accessing countries are already beneficiaries of EU basic subsidies, and furthermore, they can also be supported by the pre-accessing funds (PHARE, ISPA, SAPARD) ending in 2006. The period of seven years has high importance considering planning, as the involved regions can previously count on the eligibility criteria and rations of supports for the given period, so their development plans, concepts can be easily worked out and operated. Chances of accessing countries and community supported regions are even improved by the fact that the future of structural funds after 2006 is forming right now, and the European Commission can ask the opinion of the lately accessed countries about developing the new strategy.
Considering regional development, it is quite important that Hungarian regions, settlements become parts of the common European regional and settlement network after
st
developed Hungarian regions can get continuous, predictable supports even in a massive bulk.
These sums can be used for making a stop for underdevelopment, improving the situation of regions and developing their economic and infrastructural background. due to these actions, innovative operations are adapted, the organizational knowledge and competences are strengthened in the regions, multilateral cooperation are built up with other EU regions, so providing attractive situations for incoming knowledge, technology and existing labor force.
Strengthening the new sectors, knowledge centers, enlarging the interregional cooperation, the competitiveness of cities, mostly the county capitals (Debrecen, Nyíregyháza, Szolnok) is improved. More intensive relations are emerging in the fields of economic, cultural and social life, historical connections among borderline regions can be reorganized, new cross-border co-operations can emerge.
Following the requirements of sustainable development, the effective utilization of supports decreases the environmental impact particularly and improves the environmental conditions significantly and, indirectly, also improves the living conditions of the population. In the new situation after the accession, the central governance decreased significantly, so the regions, among them the Northern Great Plain can create their own plans and operate them individually. Last but not least, the intellectual, cultural and income differences among regions and the capital have also decreased.
Significant programs for the Hungarian regional development policy and practice, such as the National Regional Development Concept (NRC) in 1998, and later the first National Development Plan (NDP I.) for the period of 2004–2006, and furthermore, the upcoming New Hungary Development Plan (NHDP and/or NDP II.) have major influences after the period of 2007–2013, too. The present Operational Programmes of the NHDP, among them the Regional Operational Programmes (ROP) focus on the competitive economics, the renewable healthy society and the livable environment, as well as the regional cohesion, as medium-term objectives.
Following these, development axes of the NHDP (2007):
improvement of competitiveness,
improvement of human resources,
improvement of environmental conditions,
regional level development, requiring regional coordination,
improving effectiveness of governance, supporting reforms in national action programs.
Operational Programmes serving directly the regional development objectives are:
Social Infrastructure OP – support for education, public health, labor market participation and social integration, cultural and community development.
Social Renewal OP – support for employment, labor market, training, capability for adaptation, high quality of education, equal opportunities for underprivileged people, academic education, social integration, and health protection.
State Reform OP – support for legislation, procedures, administrative knowledge, human resource development, loyalty, central administration, innovative procedures.
Electronic Administration OP – support for administrative services and procedures, central administrative infrastructure.
Implementation OP.
European Territorial Cooperation OP.
+ seven Regional Development OP.
Financial background of the NHDP provides around 7,000 billion HUF, detailed in Table 3.14..
Table 3.14.: Financial Sources of NHDP, 2007–2013
Operational Programme total (billion HUF)
Economic Development OP 674.03
Transport OP 1721.47
Social Renewal OP 933.29
Social Infrastructure OP 538.95
Environment and Energy OP 1053.56
Western Transdanubia OP 128.25
Central Transdanubia OP 140.46
Southern Transdanubia OP 194.99
Southern Great Plain OP 207.05
Northern Great Plain OP 269.64
Northern Hungary OP 249.91
Central Hungary OP 430.29
State Reform OP 40.61
Electronic Administration OP 99.49
Implementation OP 94.88
National Performance Reserve 98.38
New Hungary Development Plan total 6 875.27
European Territorial Cooperation* 106.81
Source: NHDP, 2007.
notes: 264 HUF/EUR
*: European Territorial Cooperation Programme is described in a separate document.
As a result of the regional support system of the EU structural policy, cohesion will be strengthened, the intellectual, cultural and income differences among regions and capital will be decreased and last but not least, the local patriotism, the regional identity and the initiative capability will be stronger in a longer period of time.
Consequently, the positive effects of the structural policy on regions and settlements can be described by: increased involvement in the European territorial division of labor;
stronger regional level economic organizational competences; continuous elimination of backward conditions; stronger individualism; moderation of central dependency; improved regional competitiveness; modernization of living conditions and environment; reorganization of macro-regional economic relationships in the Carpathian Basin; and last but not least the stronger local patriotism and regional identity.
3.8. Control Questions
1. Why these dates are important considering the development of the EU: 1952, 1957, 1975, 1987, 2000, 2004, 2007? Please, name the event and explain your answer!
2. Please, review shortly the history of the EU!
3. What are the strategic objectives of the structural policy of the EU?
4. What are the principles of the EU regional policy and what they are about?
5. Please, detail the Structural Funds, as the most important pillar of the common, regional (structural) support policy!
6. Please, provide some details on the role of Cohesion Fund in the EU support policy!
7. Please, review the targets and the territorial levels of the regional support policy in the EU and in Hungary!
8. What are the most important sources for major objectives of the structural policy?
9. What are the most important actions of the AGENDA 2000?
10. What are the most important changes in the support policy in the period of 2007-2013 in the EU?
11. What is the main point in the CAP considering the agricultural and rural development policy in the EU?
12. What are the content of the operational programmes connecting to NHDP (2007-2013) and how they serve the regional development objectives?
3.9. Competence Developing Questions
1. What is your opinion on the negative and positive effects of “Eastern enlargement” for Hungary?
2. What is the main point in creating regions in Hungary?
3. According to your opinion, which target group / objective is the most helpful in direct improvement of your living environmental circumstances (considering settlement / regional development)?
4. What is your opinion about the realization of objective 3 serving human resource development in your settlement or region?
5. Have you heard or read about the contradictions in the practice of CAP, and if you have, what is your opinion about them?