EUFUNDING MAG BOOST YOUR AMBITION WITH PUBLIC FUNDING
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EUFUNDING
MAG
THE ONLINE MAGAZINE
FOR EU FUNDING
BOOST
YOUR
AMBITION
WITH
PUBLIC
FUNDING
ANYWHERE IN EUROPE
BROUGHT TO YOU BY
EUFUNDING
MAG
THE ONLINE MAGAZINE
FOR EU FUNDING
04 D ece mbe r 20 20
BOOST
YOUR
AMBITION
WIT H
PUBLIC
F UNDING
ANYWHERE IN EUROPE
T H E 2 02 1 -2 0 2 7 E U B U D G E T
AN D R EC OV E RY P L A N –
INV E STM E N T I N T H E G R E E N
AN D D I G I TA L T RA N S I T I O N
FIN A N C I N G O P P O RT U N I T I ES
IN H U NGA RY
R & D A N D STA RT- U P
FUN D I NG I N I S RA E L
WELCOME
Dear EUFUNDINGHUB follower,
Welcome to this edition of the EUFUNDINGMAG.
This edition presents the new EU budget that is nearing its adoption, with
some Member States still blocking it. Moreover, funding opportunities
in Hungary and the start-up nation Israel are presented in this month’s
edition.
Our team thanks you for your interest and we also look forward to your
feedback. Get in touch with us, stay safe and healthy.
Best wishes
Your EUFUNDINGHUB team
ABOUT US
info@eufundinghub.eu We launched the EUFUNDINGHUB in April 2020 to attend to the increasing demand for prompt
www.eufundinghub.eu and targeted expertise on public funding for projects throughout Europe. The EUFUNDINGHUB
Subscribe to the EUFUNDINGMAG is an online portal that provides thorough assessment and consultancy services based on a
network of local experts covering all Member States of the European Union.
THE 2021-2027
EU BUDGET AND
RECOVERY PLAN
INVESTMENT IN THE GREEN AND
DIGITAL TRANSITION
On 10 November 2020, agreement was reached amongst the European Parliament and the presidency
of the European Council on the next long-term EU budget (MFF) and the NextGenerationEU
initiative, which is a temporary instrument designed to boost the recovery from COVID-19. Approval
by some Member States is however pending.
Next Generation EU 2021-2023 € 750 billion
Multiannual Financial Framework
€ 1 074.3 billion
2021-2027
With a total of €1.8 trillion, this agreement will be the largest stimulus package that has ever been
financed at EU level. This new long-term budget for the period between 2021 and 2027 will increase
flexibility mechanisms to guarantee resilience and adaptability to any type of challenges.
Financial support is split between grants and loans.
+ More than 50% of the budget will support + Traditional policies such as cohesion
modernisation through the following policies: and common agricultural policy will be
• Research and innovation via Horizon modernised and will continue to receive
Europe; significant EU funds, with the objective to
• Fair climate and digital transitions via support the green and digital transitions.
the Just Transition Fund and the Digital
Europe Programme;
• Preparedness, recovery and resilience, + 30% of the EU funds, under both
via the programmes Recovery and NextGenerationEU and MFF, will be spent
Resilience Facility, rescEU and to fight climate change. The package
EU4Health; also pays specific attention to biodiversity
• ETS Innovation Fund and infrastructure protection and gender mainstreaming.
funding (CEF).
The agreement contains a clear roadmap towards new own resources to help repay the
borrowing under NextGenerationEU:
+ Carbon border adjustment + A new own + Further new own resources, to
mechanism and a digital levy: to resource based be proposed by June 2024: could
be proposed by June 2021, with a on the Emissions include a Financial Transaction Tax,
view to their introduction at the latest Trading System: a financial contribution linked to the
by 1 January 2023. to be proposed by corporate sector or a new common
June 2021. corporate tax base.
NEXT
MFF TOTAL
GENERATION EU
1. Single Market, Innovation and Digital 132.8 10.6 143.4
2. Cohesion, Resilience and Values 377.8 721.9 1 099.7
3. Natural Resources and Environment 356.4 17.5 373.9
4. Migration and Border Management 22.7 - 22.7
5. Security and Defence 13.2 - 13.2
6. Neighbourhood and the World 98.4 - 98.4
7. European Public Administration 73.1 - 73.1
TOTAL MFF 1 074.3 750.0 1 824.3
All amounts in EUR billion. Source: European Commission.
Contact points:
► EU Level overview
► European Investment Bank
► National level (major share of funding and grants)
Source: consilium.europa.eu/en/infographics/recovery-plan-mff-2021-2027/FINANCING
OPPORTUNITIES
IN HUNGARY
FOR PROJECT FINANCING PURPOSES IN HUNGARY CALLS FOR
PROPOSAL, LOAN PRODUCTS, CAPITAL PROGRAMMES AND
INVESTMENT OPPORTUNITIES ARE AVAILABLE, AMONG OTHERS.
THIS SUMMARY FOCUSES ON SUBSIDIES AND DISCOUNTED LOAN
PRODUCTS.
The available calls generally have the The current application framework ends
following requirements: on 31 December 2020, the planning for
the period 2021-2027 is in progress. Each
• Completion of at least one financial year; programme is subject to social consultation.
• Minimum of one statistical headcount; The following programmes are expected to
be announced in 2021:
• Project size may not exceed the value of the
last completed year’s turnover; • Enterprise Development and Innovation
• In case of a foreign company, the application Operative Programme (VINOP);
may be submitted by the Hungarian subsidiary. • Digital Renewal Operative Programme
(DIMOP);
• Green Infrastructure and Climate Protection
Operative Programme (ZIOP);
• Mobility Operative Programme (MIOP);
• Competitive Hungary Operative Programme
THE SUPPORT
(VMOP);
INTENSITY DEPENDS
• Human Development Operative Programme
ON THE NATURE OF (HOP);
THE INVESTMENT AND • Hungarian Aquaculture Development
THE GEOGRAPHICAL Operative Programme (MAKOP).
LOCATION, IT IS
USUALLY LOWER
IN BUDAPEST AND
PEST COUNTY AND
HIGHER IN THE OTHER
COUNTIES. THE IDEAL
PROJECT SIZE IS HUF
20-40 MILLION (EUR
55,300-110,000) FOR
ASSET PROCUREMENT
APPLICATIONS AND
HUF 100-500 MILLION
(EUR 276,000-1,380,000)
FOR COMPLEX
INVESTMENTS.Micro and small Medium-sized
Enterprise in a
enterprise in a enterprise in a
Project location non-disadvantaged
disadvantaged disadvantaged
settlement
settlement settlement
North-Hungary 50% 60% 60%
Northern Great Plain 50% 60% 60%
Southern Great Plain 50% 60% 60%
Central SME: 50%
60% 50%
Transdanubia Other: 40%
Southern
50% 60% 60%
Transdanubia
Corporation: 30%
Western
Micro and small ent.: 50% 50% 40%
Transdanubia
Medium-sized ent.: 40%
Central Hungary Individual calls for Individual calls for Individual calls for
(Pest, Budapest) proposals (rarely) proposals (rarely) proposals (rarely)
It is expected that most funding will continue to be available in the so-called free enterprise areas in
the new programmes. They cover the 47 most disadvantaged regions of Hungary. Businesses located
in these areas can take advantage of tax benefits, development tax benefits, social contribution tax
benefits and vocational training contribution benefits for their investments and expanding headcount.
Currently, the following calls are available for enterprises:
Call title Submission (plan)
Supporting the development of micro and small enterprises
operating in disadvantaged settlements
From
• Project size: HUF 2-60 million (EUR 5,500-167,000) January 2021
• Funding rates: 70-100%
• Main activity: asset procurement, capacity building
Supporting complex investments in medium-sized food companies
• Grant: HUF 50-750 million (EUR 138,000-2,090,000) From
• Loan (obligatory): HUF 50-2000 million (EUR 138,000-5,570,000) November 2020
• Main activity: asset procurement, infrastructure investment
Technology change and capacity building of companies affected
by the restriction on marketing single-use plastic products and
manufacturing substitute products
February - April
• Project size: HUF 20-400 million (EUR 55,000-1,110,000) 2021
• Funding rates: 35-50%
• Main activity: asset procurement, capacity building
Adaptation of micro, small and medium enterprises in the fashion
and design industries to modern business and production
challenges
From
• Project size: HUF 5-150 million (EUR 14,000-418,000) December 2020
• Funding rates: 70%
• Main activity: asset procurement, IT development, digitization,
automation
Calls generally distinguish between self-eligible activities (typically: asset procurement, capacity
building) and optional, non-self-eligible activities (typically: training, labour costs, consultancy).Research and development calls for The best known loan programme is offered
proposal are usually published by the National by the Hungarian Development Bank (MFB).
Office for Research, Development and The most popular one is ‘Technological
Innovation (NKFIH). The support framework modernization of micro, small and medium-
is usually exhausted within a few days of the sized enterprises’ (deadline: 31 December
opening of each call. The calls are available 2020, expected to be extended). It is only
throughout Hungary, with a uniform intensity available outside Budapest and Pest county.
(50-70%, project size: HUF 80-500 million, Features: 0% fixed interest rate; start-ups
EUR 220,000-1,390,000). can also apply; own resources rate 5-10%;
possibility of 100% advance payment.
Typical topics are as follows:
• R&D and innovation projects with strong sales
and commercialization focus;
THE MFB CRISIS LOAN
• Supporting the R&D activities of high-growth
potential, high value-added enterprises.
CAN BE USED FOR
THE PROCUREMENT
OF ASSETS, THE
PURCHASE OF REAL
ESTATE, WORKING
CAPITAL FINANCING
CURRENTLY SEVERAL AND THE REPLACEMENT
CAPITAL PROGRAMMES ARE OF INVESTMENT
AVAILABLE IN HUNGARY. LOANS, WITH A FIXED
THEIR GOAL IS TO PROVIDE INTEREST RATE OF
VENTURE CAPITAL TO 2.5%, THROUGHOUT
COMPANIES WITH HIGH HUNGARY. THE
GROWTH POTENTIAL AND DEADLINE FOR
INNOVATIVE PRODUCTS AND CONCLUDING
SERVICES. THE BEST KNOWN CONTRACTS IS 30 JUNE
PROGRAMMES ARE: 2021.
• Smart specialization venture capital
programme (closing: 31 December 2023)
Requirement: alignment with the priorities of
the National Smart Specialization Strategy
- National S3 (Healthy society and welfare;
advanced automotive and other mechanical
technologies; clean and renewable technologies;
sustainable environment, healthy and local
food; agricultural innovation; ICT; inclusive and
sustainable society, liveable environment; smart
technologies);
• National Technological and Intellectual
Property Venture Capital Programme
(closing: 31 December 2023).
Tamás Galambos is the Managing Director of
Swoosh Capital Ltd.
He is an experienced International Affairs
Advisor with a demonstrated history of working
in the government sector and in the management
consulting industry. He is skilled in International
Relations and Diplomacy, Public Affairs and
Government Relations, Project Management, EU
Funds, and Business Networking with a proven track
record in both Central Europe and the Middle East.CHECK OUT THE UPCOMING DIGITAL EVENTS ON PUBLIC FUNDING:
Sustainable Future Summit (videos available online)
Using the Project Pipeline for REACT-EU and Implementing the New Structural Funds
Programmes, 2021-2027 (paid 3-day-course)
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