1 EU STRUCTURAL FUNDS AND COMPETITIVENESS CAN THE CELTIC TIGER COME TO HUNGARY?

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Presentation transcript:

1 EU STRUCTURAL FUNDS AND COMPETITIVENESS CAN THE CELTIC TIGER COME TO HUNGARY?

KEY POINTS 2 The Hungarian and Irish situations involve similarities and differences Structural funds can help Hungarian competitiveness, but as part of a package, not alone and not immediately An integrated Hungarian strategy within and across business and government is therefore the key

DIFFERENT ENLARGEMENTS, DIFFERENT TIMES 3 Enlargement date Countries joiningPopulation % added GDP per head, entrants as % of existing average 1973Britain, Denmark, Ireland Greece Portugal, Spain Austria, Finland, Sweden *Cyprus, Czech Republic, Estonia, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia, Hungary *2003 data Source: The Economist, May 1 st, 2004

IRELAND 1973, HUNGARY IrelandHungary c 1973c 2003 GDP Per Capita as a % of EU Average Exports as % of GDP Agriculture as a % of labour force Source:Eurostat, OECD & Hungarian Central Statistics Office

IRISH CONVERGENCE – SLOW COMING 5 GDP at current market prices per head of population, (PPS; EUR-15 = 100 1) Source: Department of Finance Ireland, & Eurostat

WHAT CAUSED THE CELTIC TIGER? 6 Macro Policy Global Economy Enterprise Policy Structural Funds Labour Supply Infrastructure Single Market

7 EU FUNDS INPUT IrelandHungary (actual) % (planned) % ERDF2, , ESF2, EAGGF1, FIFG Total Structural 5, , Cohesion 1, Community Initiatives , %2,847100%

8 IrelandHungary (actual) (planned) Total Funds 8,028m 2,847m Number of Years6 3 Population 3,656,854 10,117,000 Funds Per Year per Head36694 Note: Total Funds include structural funds, cohesion fund and community initiatives Source: Irish NDP & NDP; Final Implementation Reports ;Hungarian NDP & A new partnership for cohesion, convergence competitiveness cooperation, EU Commission 2004 RELATIVE EU FUNDS INPUT

STRUCTURAL FUNDS AND A HUNGARIAN TIGER? 9 Structural funds will contribute, but not alone May take time Other things must be right also Have clear objectives, strategy Have an integrated plan at level of government, sectors and businesses

SOME GUIDES FOR BUSINESS Use to support your own strategy, dont be funds-driven Know what is available, from whom, what the criteria are, and what conditions attach Focus locally, not Brussels Have strong business representative organisations