"Hungary Advances Regional Development Efforts"
According to Navracsics Tibor, Minister for Regional Development and EU Funds, Hungary needs to elevate the development of all its regions, and Budapest can play a key role in driving this progress.
Navracsics highlighted that Hungary is divided into two distinct areas in terms of development: Budapest, which has surpassed the EU average in prosperity since joining the European Union, and the rest of the country, which still lags behind. When compared to other Central European regions, this contrast becomes even clearer.
While Budapest competes at a high level alongside cities like Prague, Bucharest, Warsaw, Bratislava, Vienna, and Zagreb, other Hungarian regions are generally aligned with less developed parts of the Central European region, which, overall, remains below the EU average. However, the EU’s Ninth Cohesion Report shows positive trends in cohesion processes largely thanks to the progress of Central European regions, underscoring the region’s development and competitiveness.
Navracsics noted that over the past two decades, Budapest has excelled in development, yet other areas of Hungary must also progress. As part of this effort, the Hungarian government is launching the Competitive Districts Program on January 1. Through this program, each district will be eligible for at least 625,000 euros in development funding, with larger sums provided to regions with county seats. Mayors of the districts can collectively apply for these funds, with regions also receiving additional support in areas where local funding may be insufficient.
In districts where the county seat is also the district center, a higher base funding of 1.25 million euros will be allocated. Part of the industrial tax increase in 2025 will be reinvested into these local development funds, establishing a system that encourages dynamic economies while providing crucial assistance to less developed areas.
Through this initiative, 141 out of 174 districts will gain increased development resources, with district mayors empowered to make local development decisions. The government will provide support and coordination, ensuring effective use of the funds. Speaking at the EU-Chambers 2024 event in Budapest, Navracsics emphasized that while Hungary has made progress, the new program aims to bridge the development gap between Budapest and the rest of the country by enhancing regional development policies.
While Budapest competes at a high level alongside cities like Prague, Bucharest, Warsaw, Bratislava, Vienna, and Zagreb, other Hungarian regions are generally aligned with less developed parts of the Central European region, which, overall, remains below the EU average. However, the EU’s Ninth Cohesion Report shows positive trends in cohesion processes largely thanks to the progress of Central European regions, underscoring the region’s development and competitiveness.
Navracsics noted that over the past two decades, Budapest has excelled in development, yet other areas of Hungary must also progress. As part of this effort, the Hungarian government is launching the Competitive Districts Program on January 1. Through this program, each district will be eligible for at least 625,000 euros in development funding, with larger sums provided to regions with county seats. Mayors of the districts can collectively apply for these funds, with regions also receiving additional support in areas where local funding may be insufficient.
In districts where the county seat is also the district center, a higher base funding of 1.25 million euros will be allocated. Part of the industrial tax increase in 2025 will be reinvested into these local development funds, establishing a system that encourages dynamic economies while providing crucial assistance to less developed areas.
Through this initiative, 141 out of 174 districts will gain increased development resources, with district mayors empowered to make local development decisions. The government will provide support and coordination, ensuring effective use of the funds. Speaking at the EU-Chambers 2024 event in Budapest, Navracsics emphasized that while Hungary has made progress, the new program aims to bridge the development gap between Budapest and the rest of the country by enhancing regional development policies.
