Budapest will indeed receive EU funding, everyone agrees

Portfolio
Local media reported on Monday morning that Budapest cannot expect any European Union funding between 2021 and 2027, as the cabinet intends to bleed the municipality dry. The government was reportedly bent on taking revenge after Gergely Karácsony, the joint candidate of the left-liberal opposition parties, beat government-friendly mayor István Tarlós who was Prime Minister Viktor Orbán's candidate in the municipal election in October 2019. By Tuesday, it has turned out that it's not going to happen, and all parties involved openly reaffirmed this.
DBZOL20191106008

On Monday morning, local daily newspaper Népszava claimed representatives of the Hungarian government had presented a document by the Ministry for Innovation and Technology in Brussels in mid-December, essentially showing that Budapest should not expect to receive EU funds between 2021 and 2027, becaues the document mentioned such funding for the capital city only on the fringes. 

A few hours later, László Palkovics, Minister for Innovation and Technology, told broadcaster ATV he has no clue what document the paper was referring to and that it must have been only a draft. He stressed that

it is impossible that Budapest as the capital city of Hungary will not receive EU development funds in the 2021-2027 period.

Early in the evening, ATV said officials have already found the cited presentation, but the chart on its 8th page does show Budapest as one of the priorities. 

In a flash analysis published in the afternoon Portfolio also said that due to its relative overdevelopment Budapest should indeed not expect massive EU funds in the next programming period, but it is definitely a false conclusion that it will not be entiled to any EU money. Public transport, climate protection/energy efficiency projects will definitely be funded. 

These conclusions were confirmed yesterday afternoon by Balázs Fürjes, state secretary in charge of Budapest issues, saying government decrees for the next fiscal cycle have already been adopted.

Portfolio has learned that the cited presentation was shown in a video conference by Hungarian officials in mid-December, who were testing the waters, wanting to find out what the European Commission thinks about the floated ideas.  

There's nothing extraordinary about this. Such practices are part of a lengthy and complex bargaining strategy. These "tests" help the government take decisions in Janurary about the main directions of the use of EU funds in the 2021-2027 period, and submit the first draft of the Partnership Agreement (containing these directions) to Brussels. 

Mayor Gergely Karácsony fumed over the press report in a Facebook post, saying such a stance from the government's part was vile and damaging. Later he told ATV he had also seen the document in question but he had not considered it important because Budapest was listed as one of the recepients of EU funds. 

He said he deems this ministry presentation nothing but just one of many working materials, and that it was time for a serious discussion between the cabinet and the municipality about how EU funds will be distributed.

"The government has not made any kind of decision concerning the utilisation of funding during the European Union’s upcoming seven-year multiannual financial framework, mostly in view of the fact that there is no agreement on the 2021-2027 joint budget as yet, and the positions of the European Commission and member states remain far apart," the ministry said in a statement late on Monday.

Cover photo by MTI/Zoltán Balogh 

This article is part of the work programme titled "The impacts of EU cohesion policy in Hungary - Present and Future" which is carried out by Net Média Zrt., the publisher of Portfolio.hu, between 1st April 2019 and 31st March 2020 with European Union financing. The views in this article solely reflect the opinions of the author. The European Commission as the funding entity does not take any responsibility for the use of information presented in this article.
 

More in EU funds

integritás hatóság
April 26, 2024 11:01

Hungary's new anti-fraud body asks for extended powers

To keep eyes on EU funds

ep-választás, európai parlament, ep
April 25, 2024 09:18

European Parliament calls for blocking Hungarian EU funds in new resolution

Including those that the European Commission has already decided to release

európai bizottság, eu, európai unió, uniós források, uniós vizsgálat
April 24, 2024 16:06

European Commission takes Hungary under fire

Motorway concession, 'lex CEU', asylum rules in infringement cases

eu-csúcs, uniós csúcs, uniós csúcstalálkozó, európai tanács, európai unió tanácsa
April 19, 2024 11:32

EU summit ends with no substantive agreement, serious divisions among member states

Still, negotiations on the EU's competitiveness agenda are under way

utlevel-schengeni-ovezet-hataratkeles-hataratkelo-utazas
April 19, 2024 10:12

Hungarian gold visa programme could irk Washington, Beijing and the EU at the same time

However, the details of the guest investor scheme are still unknown

orbán
April 18, 2024 09:08

Orbán at NatCon: Ukraine must never join the EU or NATO

Serious statements made by the Prime Minister at the Conservative Conference in Brussels

LATEST NEWS

Detailed search