# CE2004088EN.01013401.xml

| 8.4.2004 | EN | Official Journal of the European Union | CE 88/134 |
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8.4.2004

EN

Official Journal of the European Union

CE 88/134

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(2004/C 88 E/0141)

WRITTEN QUESTION E-3163/03

by Bill Miller (PSE) to the Commission

(24 October 2003)

Subject:   Regional policy in Hungary

Subject:

What regional policies have been implemented in Hungary? How have pre-accession programmes/subsidies been used/distributed in Hungary (i.e. number/type — private, state, corporate — of applicants/recipients for each programme; distribution through counties; major projects' success/cost/location; ISPA/PHARE/Sapard fund usage; integration of EU projects into Hungarian Government's own rural development programmes; long-term EU goals for Hungarian regional policy after accession)?

Answer given by Mr Verheugen on behalf of the Commission

(19 November 2003)

(19 November 2003)

In Hungary, the importance attributed to regional development is reflected in the 1996 Act on Regional Development and Physical Planning. As a result of the Act, Regional Development Councils have been set up and currently operate. Regional development strategies have been identified respectively in the preliminary National Development Plan (2000-2002) and subsequently in the National Development Plan (2003-2006).

The European Commission has supported Hungary's efforts to prepare for its future participation in the Union's Regional Policy and thus for the future management and utilisation of the Structural and Cohesion Funds, through pre-accession funds (PHARE, ISPA and Sapard).

Under PHARE, comprehensive Institution building support (EUR 12,5 million over different budget years) has been provided since 1998 in order to establish and strengthen institutional structures, to provide in future for a sound and efficient management of Union Structural and Cohesion Funds and in order to support the programming process. Support is also being provided to assist Hungary in the creation of an adequate projects pipeline (EUR 15 million). PHARE funded activities will continue into 2004 to assist Hungary in the first phase of Structural Funds operations.

PHARE funds have also provided support with investment actions. In this respect, a special ‘sub-programme’ has been designed for the period 2002-2003 chiefly aimed at providing assistance more in line with the Objective 1 approach to the Structural Funds. This programme, based on the preliminary National Development Plan (pNDP), and co-financed by PHARE and the Hungarian Government (EUR 84 million and EUR 66,23 million respectively), focuses on three measures aimed at supporting labour market re-integration of the long term unemployed (and in particular the Roma), the introduction of information technology in primary schools and the promotion of local development.

Overall, PHARE has greatly contributed to the preparation of Hungary for accession, both in general and specifically in relation to the implementation of Structural Funds. Institutions have been strengthened, staff trained, pilot actions launched and, through the 2002-2003 Economic and Social Cohesion sub-programme, the whole country was involved for the first time in a joint programming and implementation exercise.

For more information on the 1998-2003 PHARE Programmes, details on specific allocation for sub-programmes are available on the following web-site: (http://europa.eu.int/comm/enlargement/finan-cial_assistance.htm).

As regards ISPA (Instrument for structural policies for pre-accession), Hungary also received from ISPA EUR 88,3 million in 2000, EUR 90,8 million in 2001, EUR 94,2 million in 2002 and will receive EUR 94,5 million in 2003. The support was roughly divided equally for environment and transport projects. During the first three years of its operation, 100 % of the ISPA allocation has been committed. The Hungarian Government has also elaborated Strategy Papers for Transport and Environment.

Details on specific ISPA projects are available on the following web-site (http://europa.eu.int/comm/regional_policy/funds/ispa/ispa_fr.htm).

Concerning the Hungarian Sapard programme (Special Accession Programme for Agricultural and Rural Development), it was adopted by the Commission in October 2000. It foresees the improvement of the competitiveness of the agricultural sector and processing industry focusing on environmental protection and seeks to enhance the adaptation capabilities of rural areas. The average annual public expenditure will amount to EUR 50,5 million during the period 2000-2003, of which EUR 38,7 million will be the Community contribution. At the end of September 2003, 541 Sapard projects will have been approved for a total commitment of about EUR 40 million.

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