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Hungary

Operational Programme 'Central Hungary'

Programme under the Regional Competitiveness and Employment objective, co-funded by European Regional Development Fund (ERDF)

On 1 August 2007, the European Commission approved an Operational Programme for the region of Central Hungary for the 2007-2013 period. The Operational Programme falls within the Regional Competitiveness and Employment Objective framework and has a total budget of around €1.73 billion. Community assistance through the European Regional Development Fund (ERDF) amounts to €1.47 billion, which represents approximately 5.8% of the total EU investment earmarked for Hungary under the Cohesion Policy for 2007-13.

1. Purpose and aim of the programme

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The programme covers the Central Hungary region, which consists of the counties Budapest and Pest. Within the context of the EU, Central Hungary exhibits an intermediate technological level that does not match its high economic performance. The Research and Development (R&D) sector in the region plays an important role for the economy of Hungary. The intra-regional differences are reflected in the divergence in terms of GDP per capita (PPS), which in Budapest reached 122% of the EU-25 average in 2005 and in the Pest county merely 53.2%.

The overall objective of the programme is to improve the international competitiveness of the region while respecting the principles of sustainable development. Specific objectives include developing the factors that are decisive for competitiveness as well as strengthening internal cohesion. R&D and the innovation potential of the region are at the foundation of the programme; which addresses its infrastructure development needs in the areas of transport, education and health. Specific actions are designed to address important development needs of the under-developed micro-regions in Pest county. Support to these micro-regions will be closely monitored.

The programme increases the GDP/employee value in the Central Hungary region from 12% to 14% compared to the average of the years 2000-2004. In addition, a 10% increase beyond the 2003-2004 average is expected in foreign capital investments due to registered capital businesses with headquarters in the region.

3. Priority axis

Specific objectives of the Operational Programme Central-Hungary 2007-13 include :

  • strengthening the R&D and innovation activities
  • integrating regional roads into the international road networks
  • improving competitiveness for the region's tourism
  • increasing standards of education and health
  • raising the overall appeal of the living environment.

The Operational Programme is structured around the following priority axes:

Priority axis 1: Development of the knowledge-based economy oriented towards innovation and entrepreneurship [approximately 34.2% of total amount of funding]

This priority is aimed at stimulating R&D and innovation activities in the region. It is meant to increase business efficiency and to help develop activities that offer high benefit and good potential for growth. Activities include :

  • research centres development
  • spin-off companies support
  • technological businesses modernisation
  • SME (small and medium sized enterprises) financial capital access improvement (i.e. venture capital, seed capital)
  • business environment development.

Priority axis 2: Improvement of the framework conditions for competitiveness [approximately 15.5% of total funding]

This priority aims to increase competitiveness by integrating the region into international road networks, by improving the conditions of community transport and by fostering the use of alternative means of transport. Activities include developing main road networks related to the Trans-European Networks (TEN), developing intra-regional road connections and supporting transport associations.

Priority axis 3: Development of the region's attractiveness [approximately 11.7% of total funding]

The objective of this priority is to increase the competitiveness of the region's tourism, to develop the environmental service system and to preserve the region's natural assets. The priority foresees tourist attraction support, wastewater management, nature preservation and natural environment rehabilitation.

Priority axis 4: Development of the institutional system of public services [approximately 20.8% of total funding]

This priority will mainly address needs related to human infrastructure development. Support will be given to infrastructure development in the field of education, for primary and secondary schools as well as for resources for higher education linked to regional centres of knowledge. Diagnostic, screening and rehabilitation centre development is also foreseen in the health maintenance sector.

Priority axis 5: Renewal of settlement areas [approximately 14.2% of total funding]

This priority is aimed to increase quality of life for citizens through improving the environment and the development of more attractive settlements. Main activities include social-type rehabilitation, renewal of Brownfield areas and the development of settlement centres through integrated action-based rehabilitation.

Priority axis 6: Technical assistance [3.6% of total funding]

Technical assistance is provided in order to implement the Operational Programme. Financial support is available and covers administration, monitoring and control of the Programme.

4. Managing Authority

Directorate General Managing Authority for the Public Administration Reform Programme of the National Development Agency
Wesselenyi u. 20-22
HU-1077 Budapest
Gábor, Dányi
Tel.: +36 (1) 4749570
Fax.: +36 (1) 4749571
E-mail.: gabor.danyi@nfu.gov.hu

Financial and Technical information

Title : Operational Programme 'Central Hungary'

Intervention Type : Operational Programme

CCI no : 2007HU162PO001

Number of decision : C/2007/3787 final

Final approval date : 2007-08-01

Breakdown of finances by priority axis
Priority Axis EU Investment National Public Contribution Total Public Contribution
Knowledge economy, innovation, entrepreneurship 501 409 186 88 483 974 589 893 160
Framework conditions competitiveness 226 962 121 40 052 139 267 014 260
Attractiveness 172 642 803 30 466 377 203 109 180
Human infrastructure 305 159 894 53 851 746 359 011 640
Settlement development 208 198 371 36 740 889 244 939 260
Technical assistance 52 823 978 9 321 878 62 145 856
Total 1 467 196 353 258 917 003 1 726 113 356
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