Support to the Creation of Cohesion Policy Position: The Rippling Effect of the Central Hungarian Region

The purpose of the study is to estimate the significance of investments in the Central Hungarian region for the impact on the development of the whole country and to estimate the negative impact of the fact that this region receives significantly less EU funding in the next programming period on the whole country. Investment in the Central Hungarian region plays a significant role in the development of the investments both in the whole country and in the outher regions as well as in the national and regional emissions. Thus, the decline of the investment level in the Central Hungarian region can in itself lead to substantial GDP decline. The Central Hungary region is of utmost importance for health, education, e-government and employment services, for example, about half of the students in higher education institutions in the Central region coming from the convergence regions. The development of national indicators related to the EU 2020 strategic objectives – employment rate, RDP spending and energy use, is largely influenced by the performance of the Central Hungarian region, and therefore the lack of further developments in this region poses a major threat to the fulfillment of national commitments.
Prepared for the National Development Agency of Hungary.
Prepared by: Katalin Nagy, Péter Vakhal.

Budapest, October 2012.