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We analyse European Union (EU) funds management systems performance using the cases of Hungary and Slovakia – two Central European countries with a common history and background, yet different concepts of EU funds management. We explore the role of administrative capacity and institutional stability as key factors affecting performance in both countries. We also provide evidence for the relationship between administrative capacity and non-compliance, measured by financial corrections, with a model robust to different programming periods and model specifications. Using the resulting baseline model applicable to all EU countries, we assess EU funds management system performance in Hungary and Slovakia. [ABSTRACT FROM AUTHOR]

This paper argues that some EU member states have been smart, or even dishonest. Splitting off capital cities from existing NUTS2 regions has given them an advantage in the Cohesion Policy funds allocation scheme but worsened the position of others. To explain the reasons and implications, we review the issue of delimiting the NUTS2 regions and the related allocation of financial resources. We evaluate how modifications of NUTS2 regions, carried out by Hungary, Poland, and Lithuania, impacted the allocation of financial resources for the 2021–2027 programming period. The analysis shows the shift of billions of euros towards these countries. We also argue that this experience is and could also be an inspiration for other countries. [ABSTRACT FROM AUTHOR]

The cohesion policy of the EU plays a key role in overcoming territorial disparities. The emergence of the policy was accompanied by a debate on a place-neutral or place-based approach. In the case of Hungary, the first fully implemented programming period of 2007-2013 and the still ongoing 2014-2020 period provide a good tool for comparison. Overall, the aim of the research was to provide an in-depth look into the change of territorial patterns of EU-funding distribution, on the example of the Baranya county, being part of one of the 20 least developed regions of the EU; how territorial patterns of EU funding changed between the two periods and how the county-level territorial objectives were reflected in the funding patters. The introduction of the paper provides a review of relevant literature on EU cohesion policy, then the selection of the Baranya county as a case study is justified. The following part shortly presents the framework of regional development in Hungary, highlighting the relevant documents for the case study county. The presentation of the empirical study is divided into two parts. First, as qualitative research perceptions of the stakeholders of the key levels of regional policy decision-making are analysed. Second, a quantitative analysis of the territorial funding patterns of the two periods is presented, in light of established territorial objectives. [ABSTRACT FROM AUTHOR]

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The article maps the path to the adoption of the rule of law conditionality regulation for the EU budget in 2020 and the political framing of the adoption and application of the new EU regime. The article then analyses the review of the legality of the regulation carried out by the Court of Justice of the European Union (CJEU) on the initiative of Poland and Hungary, where the EU judges provided their insight into the interpretation of the existence of EU competence to adopt the regulation, the relationship between the regime under the new regulation, the mechanism under Article 7 TEU and the CJEU enforcement action, as well as into the EU concept of the rule of law itself. [ABSTRACT FROM AUTHOR]

To enhance the effectiveness of and return on public investments, using financial instruments in addition to grants has lately become an increasingly preferred policy instrument choice in Central and Eastern Europe. The paper examines the impact different financial tools bring about at a micro-level. This enables recommendations for policy-makers to be produced on the type of assistance that could be of best use to improve access to finance for micro-, small and medium-sized enterprises, and thus achieve long-term, sustainable economic growth. The analysis is based on counterfactual evaluation and difference-in-differences. The findings indicate that the use of European Union funds (both grants and financial instruments) has a beneficial influence on employment and sales. However, the results also illustrate that in order to achieve the goal of higher impact and certain productivity effects, subsidies should be allocated to the initially less productive small firms in the less developed regions. Another important outcome is that, to some extent, financing through financial instruments has more direct relevance to advanced productivity, and due to their revolving nature, they generate more positive impact on the Hungarian economy than do grants. [ABSTRACT FROM AUTHOR]

In the EU budgetary period 2014-2020 the Hungarian Government devoted significant attention to economic development and its plan was to use 60% of EU regional policy subsidy for this purpose. In the light of this fact, the main aim of our publication is examine the spatial characteristics of the EU economic development aid awarded to local authorities situated in North Great Plain Region (Hajdú-Bihar county, Jász-Nagykun-Szolnok county, Szabolcs-Szatmár-Bereg county), and to point out the differences between the individual areas and settlements. As a result of our research it can be concluded that firstly the smallest settlements were in an unfavourable position (fewer subsidy applications and smaller subsidy amounts), while in case of larger settlements, the examination does not show clear results. Secondly, if we look at administrative functions of settlements, the favourable position of district seats can be observed, which is particularly true in case of the development of industrial parks and industrial areas subsidy topic, Thirdly, examining the socio-economic conditions of settlements, the more unfavourable position of less developed settlements can be observed (lower success rate of subsidy applications), and this was also true for all topics of subsidies. [ABSTRACT FROM AUTHOR]

SMEs play an important role in the country's economy. SMEs employ more than two thirds of the workforce and generate more than half of the added value in EU-28 until 2019. The importance of small businesses is also taken seriously by the EU, and the European Charter for Small Enterprises. Improving the competitiveness of SMEs is one of the 11 thematic objectives for Cohesion Policy in 2014-2020. Access finance for investments through grants, loans, loan guarantees, venture capital. Forge valuable links with research centres and universities to promote innovation. The data were taken from the World Economic Forum database. Research analysed the following sub-areas: Role of SMEs in competitiveness, presentation of problem areas, comparison of domestic values with EU average according to SBA Facht Sheet database with using digital system. The Hungarian National Bank depicts the most important aspects needed to improve competitiveness in a pyramid model, culminating in sustained catch-up and growth. Hungary ranked 60th out of 137 countries in the World Economic Forum's in 2017-2018 competitiveness ranking. In Hungary SMEs are not very development-minded, but it is a positive development that they receive a significant share of grant funding. [ABSTRACT FROM AUTHOR]

Under European Union (EU) law, Monitoring Committees (MCs) are charged with overseeing the implementation of Operational Programmes. Despite their potential to influence the process of fund disbursement, relatively little is known about the Committees’ operation and their impact in the new member states. This article is an empirical study of how three MCs actually work in Hungary and Slovakia. We find that whilst these bodies have relatively limited oversight capacities and are characterised by a primary concern with procedural compliance with EU requirements, nevertheless, they have an important role in providing significant opportunities for learning, information exchange, expert input and networking. [ABSTRACT FROM PUBLISHER]

The article focuses on the study regarding the influence of spatiality and ethnicity in social exclusion and poverty in Hungary. It says that social exclusion began with the development of Roma underclass population, which also showed the association of ethnicity and the unequal spatial development. It mentions that most Hungarians viewed the Roma as unwanted and as scapegoats. Moreover, the regional aspect should be considered in policies that help lessen poverty and exclusion in Hungary.

A key objective of the European Union is to strengthen regional cohesion by addressing development disparities, particularly by targeting less-favored regions (1). Initiatives related to leveling development differences in the field of health care are recognized as a one of priorities in the European Union. Therefore, when implementing cohesion policy, decisions have been made to mobilize structural funds for sectoral activities. The aim of this paper is to present the European Union's cohesion policy in the field of health care and to indicate the most important actions of the implemented programmes/projects in selected countries: Poland, the Czech Republic, the Slovak Republic and Hungary-the Visegrad Group-VG4-in the period of 2014-2020. Analysis covers programmes, funding sources, and activities undertaken in achieving cohesion policy objectives in health care in the VG4., (Copyright © 2020 Holecki, Kowalska-Bobko, Fraczkiewicz-Wronka and Wegrzyn.)