The distribution of EU funds worth some HUF 9,223 billion which came to Hungary during the period between 2007 and 2013 did not serve the right social policy goals and was not based on the country’s best interests, the Minister heading the Prime Minister’s Office pointed out at the parliamentary debate on the issue.
János Lázár found it astonishing that some 90 per cent of this sum was awarded to state or municipal institutions. By contrast, the present Cabinet is using 60 per cent of the currently available funds for reinforcing small and medium-sized businesses, he said.
In his view, calls for proposals were invited during the previous cycle for unsustainable projects with unclear objectives, against the background of an enormous bureaucratic machinery, and these clearly did not serve the enhancement of the country’s competitiveness. He was of the opinion that those who assessed the situation at the time and replaced Hungarian interests with European interests – which Hungarian society was often simply unable to comprehend – made a huge mistake.
He described the bureaucratic machinery, which was free to spend as much as 45 per cent of the funds on the organisation of calls, as a hotbed of corruption, and as a result, funds in the magnitude of HUF 1,500 billion may have been wasted, he said. At present, these expenses only account for 12 per cent.
Mr Lázár pointed out: it is not yet know whether there will be further cohesion grants after the present cycle, and therefore the country’s economy must be made fully independent by 2020. It is to this end that next year’s budget features local development funds worth HUF 1,000 billion, he said.
He further highlighted that these development funds will serve local small and medium-sized businesses, and the 100 largest Hungarian companies will not be eligible for grants from this allocation.
EU funds are not a gift for the country, the Minister pointed out, adding that, in his view, Hungary was a net contributor of the community during the period in question. Mr Lázár expected to reach a consensus at the debate on that the Minister for National Economy should be tasked with taking stock of the economic benefits which the country surrendered through its accession to the EU, in return for which it has been given cohesion funds. The latter are, in his view, substantially less than customarily believed by the wider public.
He also pointed out: there is a „protection of funds” in the EU, and in his opinion, the European Commission intentionally sets bureaucratic obstacles to the disbursement of funds.
He stressed that he does not dispute the good intentions of those who made the decisions on the absorption of former funds. However, the Government in office at present was faced with a question: should it change the fundamental objectives, thereby disrupting the disbursement of funds, or should it facilitate them with adjustments? He admitted that there was a debate before the decision, and pointed out that the Cabinet opted for the former path. The initial figures have justified the decision: contracts have been concluded for some HUF 9,600 billion.
Regarding the current development cycle, he said: there will be less funding available for infrastructure developments, and there will be likewise less funding for health care and education than during the period between 2007 and 2013. Therefore, services of improved quality will have to be provided from the projects implemented to date.
He deemed it important that funds should be disbursed in 2017 and 2018 because if the country fails to adhere to this schedule, it may forfeit funds.
The Minister further remarked: the contradiction between the reduction of bureaucracy and the absorption of funds is worth another debate.