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Simplification of Implementing ESI Funds in Hungary

Zsuzsanna Kondor, Tamás Tóth

Simplification is often a long process of interventions rather than a one-off development of revolutionary impact. While generally a breakthrough event forms the centre of aspirations and most stakeholders perceive gradual progress as an inch-by-inch movement, the successive resolution of the key issues can eventually turn decisive. Converting regulatory changes into practice needs to be supported by a range of other instruments including institutional building, technological development, and on-going assessment. This article presents the path Hungary has proceeded down and it attempts to sum up the challenges for the near future, interpreting simplification in a broader sense. Recent alterations to the regulatory framework resulted in easing collateral requirements, introducing a rolling advance, lightening conditions for the payment of own contribution. Contracting and contract modifications have been streamlined too. The introduction of a new comprehensive, computerised information system, FAIR, can bring incomparable benefits to the burden reduction initiative. FAIR not only eliminates substantial paperwork but strongly supports process automation, data exchange, and information dissemination. Nevertheless, spreading knowledge and changing attitude in the institutional system as well as efficiently managing the simplification process will remain the success criteria in the long-term.

Zsuzsanna Kondor works as a consultant, she was former Head of the Coordination Managing Authority in the period 2003-2013. Tamás Tóth is Head of Department for Regulatory Framework at the Prime Minister's Office. The views expressed are personal and do not necessarily reflect the official position of the Government of Hungary.


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