Operational Programme 'North Hungary'

Programme under the Convergence Objective, co-funded by the European Regional Development Fund (ERDF)

Hungary

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On 30 July 2007, the European Commission approved an Operational Programme for the region of North Hungary for the 2007-13 period. The Operational Programme falls within the Convergence objective framework and has a budget of around €1.063 billion. Community assistance through the European Regional Development Fund (ERDF) amounts to €903 million, which represents approximately 3.6% of the total EU investment earmarked for Hungary under the Cohesion Policy for 2007-13.

1. Aim and purpose of the programme

The main objective of the North Hungary Operational Programme 2007-2013 is to increase the economic competitiveness of the region of Northern Hungary by reducing territorial and socio-economic disparities.

The Operational Programme will partially focus on the socio-economic needs of North Hungary region. Sectoral programmes and the European Agricultural Fund for Rural Development are expected to make significant investments.

2. Expected impact of the investments

Using 2004 measurements as a baseline, macroeconomic projections indicate that the programme will deliver an additional Gross Domestic Product (GDP) of 27% and over 4 220 new jobs by 2015. By 2015, induced investment is expected to reach €144 million.

3. Priority axes

Specific objectives of the North Hungary Operational Programme include:

  • economic competitiveness
  • tourism sector development
  • social cohesion support
  • attractive economic and living conditions development
  • regional transport development.

Priority axis 1: Creating a competitive local economy [approximately 14.5% of total funding]

Ensuring the spread of new products and technologies, by enhancing co-operation between enterprises and research centres of technology development, is a principal objective under this priority axis. This objective encourages also start-ups and new jobs creation.

The main activities undertaken include the establishment of bridging institutions, research and innovation transfer offices, support to clusters and industrial estates, and management and advisory services.

Priority axis 2: Strengthening the potential of tourism in the area [approximately 20.1% of total funding]

The main goal of this priority axis is to increase the profitability of regional tourism, to develop internationally competitive products and to increase the time spent in the region (measured by the number of hotel guest nights).

Activities undertaken in this respect will focus on developing regional tourist attractions and commercial accommodations, supporting destination management and establishing a regional cluster centre together with the Northern Great Plain region.

Priority axis 3: Development of settlement [approximately 28.5% of total funding]

Projects financed under this priority axis will focus on increasing the attractiveness of settlements by supporting new economic, communal and social functions as well as by preventing segregation in disadvantaged micro-regions. The supported activities consist of integrated, action-based rehabilitation of urban districts (e.g. urban dwellings), Brownfield land and estates threatened by deterioration, as well as micro-regional centres development.

Priority axis 4: Development of social cohesion [approximately 22.56% of total funding]

The key objective under this priority axis is to ensure the efficient use of micro-regional level public services; to foster the mitigation of territorial disparities; and to improve employability. Actions foreseen include modernising health services, developing social care, supporting educational infrastructure, and developing local administration Information Technologies.

Priority axis 5: Development of regional transport [approximately 10.1% of total funding]

The main goal of this priority axis aims to improve micro-regional centres accessibility to main road networks, with special attention paid to improving small settlements accessibility to workplaces and public services. The activities include the development of 4-5 digit roads, cycle tracks, public transport, support to regional transport associations and improvement of water-way traffic.

Priority axis 6: Financing the implementation of the Northern Hungary Operational Programme [approximately 3.6% of total funding]

Technical assistance will be used to implement the programme, which will cover administration, monitoring and control.

Financial and Technical information

Operational Programme 'North Hungary'

Intervention Type

Operational Programme

CCI no

2007HU161PO006

Number of decision

C/2007/3743

Final approval date

30/07/2007

Breakdown of finances by priority axis

Priority Axis EU Investment National Public Contribution Total Public Contribution
Competitive local economy 130 965 118 23 111 491 154 076 609
Tourism 188 191 882 33 210 332 221 402 214
Settlement development 257 195 571 45 387 454 302 583 025
Human, community infrastructure 203 874 538 35 977 860 239 852 398
Regional transport 90 959 410 16 051 661 107 011 071
Technical assistance 32 537 070 5 741 836 38 278 906
Total 903 723 589 159 480 634 1 063 204 223