Thanks to the revamping of development policy and the acceleration of calls for proposals, Hungary may become the country producing the region’s most distinctive economic growth by 2020, Nándor Csepreghy stated at his press conference which he held in connection with the parliamentary debate on the utilisation of EU funds.
The Minister of State at the Prime Minister’s Office also told the press that the Government will release KPMG’s report on Hungary’s development policy between 2007 and 2013 in its entirety on the website Széchenyi2020 in the afternoon. The report also reveals that there was a distinct need for revamping the former tender mechanism, and the excessively bureaucratic regime which took account of the interests of advisors and left-wing business circles as a matter of course had to be replaced with one which serves the interests of Hungarian businesses, he highlighted.
In Mr Csepreghy’s evaluation, the dominance of private interests over public interests came to an end, and the Government reversed priorities.
In his view, another significant difference is that in the new cycle more funds are channelled to businesses than to the Hungarian State: 60 per cent of the funds are awarded to businesses which may develop their technologies, may gain in strength, and may even satisfy regional needs.
He indicated that businesses will have 5 years to implement their undertakings.
It is, in his view, important for Hungary that the economy should catch up with or overtake the European average within the shortest possible time. The Minister of State said in explanation: if we only develop our economy at the speed of businesses in Austria, France or Slovakia, that will only conserve the difference. However, if we are faster, there are good prospects that the country may reach a leading position in the region by 2020.
Erik Bánki, President of Parliament’s Economic Committee stated as a goal for the new cycle that all businesses satisfying the relevant conditions should be able to implement their developments, thereby contributing to job creation and a sustainable economic growth.
He said: it is good news for market players and municipalities that all calls for proposals will be released by 31 March, amounting to some 12 thousand billion forints for the period between 2014 and 2020. The government-party politician welcomed the fact that 60 per cent of the funds are channelled towards the boosting of the economy, with a significant percentage allocated to small and medium-sized enterprises, in contrast to the period of the MSZP-SZDSZ governments when only 26 per cent served this purpose.
As he said, he expects the number of export businesses to rise from today’s 3-4 thousand to 10 thousand in consequence of the change in priorities. During the previous cycle, there were 70,560 successful bidders, and Mr Bánki expects this number, too, to further increase. At the same time, he encouraged everyone to take advantage of the opportunity, in reference to the fact that there is no way of knowing what development structure the EU will adopt beyond 2020.
The politician also spoke about the case of metro line 4. The Economic Committee has been investigating the irregularities related to the calls for proposals which concern some HUF 167 billion for months. They would like to be able to identify the responsible persons upon the closure of the process, and to minimise the funds that Hungary would be required to repay, he added.
He further remarked: some calls for proposals were specifically conceived with a view to accommodating malpractices and abuses. As part of one of these, the then leadership of the Metropolitan Municipality based its calculations on an impact assessment reckoning with 500 thousand passengers, while the second phase of the project was not preceded by any preparations at all, he said.
In answer to a question, Mr Bánki commented on the promises of MSZP and DK related to pensioners as follows: the Government has agreed to raise pensions in line with the burden bearing capacity of the budget, and that their real value cannot decrease. In his view, the two opposition parties are seeking to boost their popularity with this unfeasible topic.
Mr Csepreghy was asked about the talks between Heineken and Csíki Sör Manufaktúra. He said in evaluation: this case proves that where there is a will, „even David is able to prevail over Goliath”. He said that János Lázár, the Minister heading the Prime Minister’s Office had several rounds of talks with the parties.
Regarding the proposed legislation concerning the commercial use of forbidden symbols of despotism, he said: the two cases are only partially connected, and he is pleased that one of the reasons for the amendment has been removed from the agenda. The debate on the proposed legislation will go ahead, he added.
He was also asked about the fact that Metropolitan Mayor István Tarlós will initiate a legislative amendment as he finds penalties of HUF 50 thousand imposed on drivers due to certain traffic violations excessive. The Minister of State said in reply that the Government encourages everyone to observe the laws; this, however, does not mean that there are no bad rules. The Government has not yet received the proposal, but once the proposed amendment is tabled, it will consider it, he added.
In answer to another question, Mr Csepreghy also told the press that departure from the European Convention on Human Rights does not feature on the Government’s agenda.