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Position Paper Hungary Position of the Commission Services on the development of the Partnership Agreement and Programmes in Hungary for the period 2014-2020 Launch Event 9th November 2012, Budapest Why a position paper? • Pro-active approach: early stage information on Commission's services position on priorities 2014-20 to Member States • Closer alignment with EU2020 strategy and Country Specific Recommendations (National Reform Programme) • Commission's view on development needs, challenges and priorities • Framework for dialogue between Commission services and Member States 2 EU level National level • THE COMMON STRATEGIC FRAMEWORK ERDF, ESF, CF, EAFRD, EMFF THE PARTNERSHIP AGREEMENT ERDF, ESF, CF, EAFRD, EMFF Operational Programmes for ERDF National or regional level Rural development programmes (EAFRD) Operational Programmes for EMFF Operational Programmes for ESF Operational Programmes for CF Multifund Operational Programmes for ERDF, ESF, CF 3 Socio-economic situation in Hungary • Slow growth and contracting internal demand, fragile fiscal situation • Expected only growth-driver: net export, but insufficient integration of Hungarian SMEs in global economy • Low employment rate, high level of low skilled people and high inactivity rate • Important regional disparities, rural urban divide, marginalised population 4 Socio-economic situation in Hungary (cont.) • Low R&D spending and insufficient innovation • Low productivity and added value (processing) in the agricultural sector; structural disadvantages • Poor performance of transport systems • Vulnerability to climate change (flood&droughts) • Fragmentation and degradation of natural habitats 5 Europe 2020 Headline targets for Hungary Europe 2020 headline targets 3% expenditure on R&D (in % of GDP) 20% greenhouse gas (GHG) emissions reduction compared to 1990 (both ETS and non-ETS) 20% renewable energy (in overall energy consumption) including 10% use of renewables in transport 20% increase in energy efficiency (%)/368 Mtoe Reduction of primary energy consumption Current situation in Hungary 1.16% (2010) National 2020 target in the NRP . 1.8 % -26 % (2020 non-ETS projections compared to 2005) -14 % (2010 non-ETS emissions compared to 2005) +10 % (national binding target for non-ETS sectors compared to 2005) 8.68 % (2010) 14.65 % 4.7% (2010) 10% 24 Mtoe (total primary energy consumption) 2.96 Mtoe saving 75% employment rate (population aged 20-64) Share of early school-leavers max. 10% 60.7 % (2011) 11.2 % (2011) (=24.89 Mtoe total consumption in 2020) 75 % 10 % Tertiary education 40% among population aged 30-34 28.1 % (2011) 30.3 % -160 000 (2010) Index 2008 450 000 Reduction of the population at risk of poverty or social exclusion by 25%, lifting 20 million people out of poverty. 6 Challenges for Hungary • Weak enterprise competitiveness; insufficient R&D and limited access to finance • Incompleteness and insufficient operation of infrastructure • Low employment level and weak social cohesion; low quality of public services • Inefficient use of natural resources 7 Funding priorities 1. Enhancing business innovation, competitiveness and the effectiveness of R&D 2. Sustainable and interconnected infrastructure and their efficient use 3. Increasing the level of employment through economic development, employment, education and social inclusion policies, taking account of territorial disparities 4. Environment-friendly and efficient use of resources; climate change resilience No ranking, complementarity and mutual reinforcement 8 Funding priority 1 Competitiveness Enhancing business innovation, competitiveness and the effectiveness of R&D - SMEs • Innovation and internationalisation of enterprises, esp. SMEs Cooperation: research, higher education, innovators Embedding multi-nationals into local research and economic network Integration of Hungarian entreprises to global value chain Tailor-made financial instruments; targeted schemes Development of ICT products, services and use (including in rural areas) 9 Funding priority 1 Competitiveness Enhancing business innovation, competitiveness and the effectiveness of R&D (cont.) – research, growth poles • Investments in research and R&D centres of excellence; transfer of R&D results towards SMEs complete Extreme Light Infrastructure (ELI) project Specific strategy for environmental and agricultural sectors (promote bio-economy, eco-innovation,etc.) • Multipolar development through regional growth poles and innovative clusters Smart specialisation strategies Balanced multipolar development (poles: university cities) Integrated Territorial Invesments (ITI) 10 Funding priority 1 Competitiveness Enhancing business innovation, competitiveness and the effectiveness of R&D (cont.) – agriculture, rural economy • Increasing SME contribution to the rural economy, and enhancing the competitiveness of the agricultural sector Innovative approaches for the agricultural sector and rural areas Adding value locally through processing and quality development Structural changes 11 Funding priority 2 Infrastructure Sustainable and interconnected infrastructure and their efficient use – energy, water, waste • Energy infrastructure enhanced cross-border capacities smart grids to support energy efficiency improvements • Drinking water quality improvement; monitoring • Waste water infrastructure completion and interconnection • Waste management (including in agriculture) investments to reuse, recycle and recover Complementary measures, actions to eliminate bottlenecks 12 Funding priority 2 Infrastructure Sustainable and interconnected infrastructure and their efficient use (cont.) - transport • Improving integration, sustainability and cost-efficiency of urban, regional, national and transnational mobility systems Complete TEN-T corridors, including signalling and control systems Focus on railways and public transport modernisation Improve navigability on the Danube and the River Information Systems E-toll, congestion charges and network rationalisation Complementary measures, identify and eliminate 13 bottlenecks Funding priority 3 Employment (1) Increasing the level of employment through economic development and employment policies, … • Increasing the capacity of public employment services, strengthening active labour market policies Active and preventive labour market measures to be put in place Enhance the efficiency and the capacity of the Public Employment Services (PES) Facilitate geographical and professional mobility Promote lifelong learning participation Support self-employment, entrepreneurship and business creation activities Possibility for Community–led Local Development instruments 14 Support non agricultural SMEs in rural areas Funding priority 3 Employment (2) … through the integration of the vulnerable groups using a holistic approach (employment, education, housing, health, access to services), Improve the activity rate of vulnerable groups, the situation of marginalised groups by implementing the Social Inclusion Strategy Promote social economy, new business models and innovative solutions for social enterprises Increase accessibility to health care and social services Continue the de-institutionalisation process 15 Funding priority 3 Employment (3) … through improving the quality of education and ensuring equal access thereto, in particular in pre-school (including childcare) facilities and higher education, Improve the links between education and labour market Prevent early school leaving Ensure access to early childhood education Maintain tertiary education participation 16 Funding priority 3 Employment (4) … as well as improving services to citizens and businesses through an efficient and financially sustainable public administration Reduce administrative burdens Continue the reform of the public administration • Introducing e-government and one-step government windows • Supporting the allocation of adequate human resources for the most sensitive areas Improve the judiciary system 17 Funding priority 4 Resource-efficiency Environment-friendly and efficient use of resources; climate change resilience • Integrated development and management of Hungarian rivers and water resources Risk management (plans and monitoring) Flood management including the restoration of floodplains and wetlands Improving the efficiency of water use Preserving natural environmental values 18 Funding priority 4 Resource-efficiency Environment-friendly and efficient use of resources; climate change resilience • Improving energy efficiency and enhancing renewable energy production and use In constructions, buildings and housing Sustainable renewable energy supply: wind, bioenergy, solar and geothermal energy Energy and environmental awareness Innovative energy technologies and projects in agriculture and forestry 19 Funding priority 4 Resource-efficiency Environment-friendly and efficient use of resources; climate change resilience (cont.) • Protecting the environment, ecosystem and landscape, preserving biodiversity Management and restoration of Natura 2000 and high nature value areas Soil protection Targeted afforestation Sustainable farming practices/organic farming Development of ecosystem-based approaches 20 European Territorial Cooperation • Transnational and cross-border dimensions, including the framework of the EU Strategy for the Danube Region notably in: R&D&I Low-carbon economy TEN-T networks Water and flood management, risk prevention Employment, education and inclusion Incorporating the EUSDR objectives in all programmes 21 Territorial development • Simplification of current programming architecture reduced number of programmes balance of sectorial and territorial dimensions • Integrated Territorial Investments (ITI) Require appropriate planning, governance and management: most suitable at NUTS-3 levels (counties) and for major cities • LEADER and Community Led Local Development convenient for local initiatives e.g. micro-regions 22 Success factors Some ex-ante conditionalities • Comprehensive multimodal transport plan • National research and innovation strategy • Active labour market policy (modernise labour market institutions) • Strategies to reduce early school-leaving; to improve tertiary education attainment, quality and efficiency • Strategy for poverty reduction and Roma inclusion • Implementation of EU acquis in wastewater and waste management • Strategic policy framework to reinforce administrative efficiency 23 Approach : Strategic, integrated and coherent Funds and instruments: synergies and coordination Existing experience Preserving knowledge Improved management capacities Succesful delivery (Beneficiaries, MAs, IBs) Result orientation Focused interventions Financial instruments Partnership, nondiscrimination, sustainable development 24 Public procurement, fraud prevention, audit • Public procurement is the single most important domain to ensure sound management of the Funds. Reinforce capacities of actors in award and control of contracts Independence of the Department of Public Procurement Controls Online procurement processes Implement and reinforce the anti-corruption programme Independece and professionalism of the audit authority. 25 Timeline C O M M I S S I O N H U N G A R Y Proposals for Cohesion Policy 2014-2020 Commission proposal for Common a Strategic Multiannual Framework Financial Communication Framework from the Position paper and launch event Agreement on MFF and adoption of new legislative package Adoption of Partnership agreement and programmes 2014 Commission June 2011 Oct. 2011 Dec. 2011 Oct-Nov. 2012 First semester 2013 Informal dialogue, technical meetings, draft documents end 2013 Negotiations, submission of Partnership agreement and programmes 26 • Thank you for your attention! 27