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The decision announced by the Prime Minister on Monday states that “the Government will take three decisions to renew rural Hungary, increase the economic and population retention capacity of rural areas, strengthen Hungary’s food self-sufficiency and export potential, improve the competitiveness of Hungarian agriculture and food industry “. brought by:
- It agrees that in the Strategic Plan for the Common Agricultural Policy 2021-2027, 25% of the European Agricultural Fund for Rural Development should be transferred to the European Agricultural Guarantee Fund for the period 2023-2027. The Ministry of Agriculture is responsible for this, the deadline is in line with the negotiations of the Strategic Plan for Common Agricultural Policy.
- You agree that to 2021–2027. 80% national co-financing from the European Agricultural Fund for Rural Development for the Common Agricultural Policy framework. The Minister of Finance is responsible for this and the government has declared the following before the deadline: to 2022–2029. in central budget planning for.
- You agree that a In 2021 and 2022 for interested farmers single area payment payment of aid linked to the amount of It should be applied with a 5% reduction on the single annual area payment of EUR 150,000 and with a 100% reduction of the amount corresponding to 1200 hectares. He is responsible for the Ministry of Agriculture and his mandate is continuous. This regulation is not new, these rules still apply to the top tier of farm subsidies.
What constitutes a great innovation on the part of the government is paragraph 2 of the decision. Information like this was already leaked last week. Mfor.hu wrote, referring to his information, that János Lázár had recently consulted with the Prime Minister in the presence of various members of the government and argued here that the logic of EU support should be translated. In the EU subsidy system, a 1 euro resource usually comes from the Hungarian state adding 15 euro cents from the national budget to the 85 euro cents coming from Brussels. The Hungarian co-financing is therefore 15%. The government commissioner would spend on these rates based on the information available at the time and increase the proportion of the Hungarian deductible to 80 percent. It was unclear in the article at the time what kind of EU funding this new support system would have covered, but it became clear with the government’s decision on Monday that the new rule could go into effect for rural development agricultural resources. . If the 85 units of EU money are maintained, then the largest share of the Hungarian state will be added, which would already be 340 units, and the total amount of resources would increase by 425 units from the 100 units in force so far. That is, the distributable support framework would increase more than 4 times the current one. At the same time, this would also mean that a larger amount would go from the state budget to Hungarian agriculture, which seems to affect the internal budget from 2022.
The portal also wrote at the time that a significant increase in rural development resources would serve broader purposes, a kind of master plan implementation. In practice, this would mean that the government would create living conditions in the countryside so that there would be a real option for those living in smaller villages and settlements to stay in the place, i.e. strengthen the holding power of the field. In addition to its socio-political benefits, this would also have political consequences for the ruling parties. The better living conditions created in the countryside, since they trust the government parties, would also be reflected in the rural support of the Fidesz-KDNP, which is very important in light of the next parliamentary elections in 2022.
An important role in this process is assigned to the renewable Szent István University, renamed the Hungarian University of Agricultural and Life Sciences. As of February 1, the university will become the property of the foundation, and the members of the board of trustees that run the foundation presented themselves last week. János Lázár also took part in the introductory press conference as a member of the university’s board of trustees. According to the report of our partner, agrárszektor.hu, the politician said at the event that it is time to end the myth that Hungary is a small country, to settle the small country mentality, since we are rich in raw materials, water sweet, fertile lands and today the EU. in Hungary it has one of the best agricultural endowments. “The fact that this is not only one of the best Hungarian universities, but also one of the best of the European agricultural universities, is not a question of prestige, but basically of national economic sovereignty, that we have the best agricultural knowledge, capacity agricultural. national agriculture, agribusiness and the food industry can be the engine of the Hungarian economy, ”said János Lázár, former minister to the Prime Minister.
The president of the foundation, the president of the OTP, Sándor Csányi, emphasized in the briefing that they wanted to train people at the university who could be the strongholds of the rural intelligentsia.
Cover image source: Viktor Orbán Facebook page
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