HUNGARY NET PAYER OF EU

In 2004 Hungary will be a net payer of the European Union though the government has counted in this year’s budget with a HUF 83,6 billion extra income. In contrast to this, Hungary must pay HUF 46,2 billion more into the common EU treasury than the sum which is expected from Brussels – this is the essence of the report of the Ministry of Finance and that of the minister without portfolio responsible for the coordination of European integration issues.

It does not mean that the union is parsimonious to Hungary, rather that the country is backward in its competition and state development system and will be unable to win tenders which might otherwise make positive the balance as the unused EU supports are lost. The Medgyessy government is aware of the dangers of becoming a net payer. One of the dangers is the unfavourable impact on the Hungarian economy, the other is the loss of prestige and popularity of the government. So the cabinet wants at least to minimalise the financial loss by concluding within 90 days subsidy contracts with companies that have won EU tenders.

Translated by Péter Szentmihályi Szabó