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Experiences and new opportunities for cross-border economic developmentThe HU-HR example

Zoltán Barna-LázárBudapest, 17 April 2015

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Overview

T h e n e e dT h e b a s i sT h e g o a l sT h e f e a r sT h e s o l u t i o n s


Cross-border cooperation between entreprises of Somogy and Virovitica-Podravina countiesSOVISEC project, 2012

Assessment of the cross border business cooperation after Croatia’s EU accession

15.9%

14.8%

10.9%

10.2%

9.1%

7.8%

7.6%

6.8%

6.7%

4.4%

2.0%

2.0%

1.8%

17.3%

9.3%

5.2%

9.6%

8.5%

9.6%

7.3%

2.9%

14.2%

11.6%

1.1%

0.1%

3.4%

0.0% 5.0% 10.0% 15.0% 20.0%

Access to finance

Inefective bureaucracy

Low workforce ethics

Inadeqate labor force education

Instability of public policies

Inadequate infrastructure

Restrictive labor market regulation

Crime and corruption

Tax rates

Complicated tax procedures

Foreign exchange regulation

Other problems

Increase of prices (inflation)

VPZ

Somogy

Most important obstacles to business conduct

23.5%

27.0%

14.0%

13.0%

7.0%

2.0%

5.0%

8.5%

26.2%

16.9%

11.2%

10.6%

8.9%

8.5%

5.9%

5.3%

4.3%

2.3%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Identification of potential partners and markets

Language barriers

Different and unknown technical standards and rules

Burdensome border procedures

Undeveloped transport infrastructure

Inadequate overal cooperation (sports, culture, tourism, events)

Distrust or protectionist approach

Differences in local culture and business conduct

Inadequate support by local government and state bodies

Propensity of doing business with other countries

VPŽ

Somogy

Most important obstacles to cross-border cooperation

Low level of cross-border B2B cooperation

Value chains are not integrated


Key findings of the ongoing evaluation of the HU-HR CBC Programme 2007-2013

The overall judgement of the programme is undoubtedly positive

Building a strong cooperation network

cross-border cooperation has a clear added value to the development of the whole border region 83%

OVERALL

Th

e b

asis

STILL A LOT OF PROBLEMS REMAINED UNSOLVED 57%dynamically decreasing and ageing population

slowly recovering economy with increasing territorial disparitiesincreasing unemploymentremaining huge gap in tourist turnoverproblems in border crossing



Development of natural and cultural resources, with an overarching goal of sustainable growth

Th

e b

asis

THEMATIC FOCUSINDIRECT ATTENTION

TO ECONOMIC COOPERATION


SINGLE INTERCONNECTED COOPERATION NETWORKCOOPERATION HUBS

Th

e b

asis



Fostering value added business cooperation between SMEs operating on different sides of the border

DESIGNING AN SME DEVELOPMENT SCHEME

THAT WORKS AS A FINANCIAL INCENTIVE TO FOSTER B2B COOPERATIONS

OFFERS DIRECT SUPPORT TO ENTREPRISES

BUILDS ON THE EXISTING STRENGTHS OF CROSS-BORDER COOPERATION – ESPECIALLY THE COOPERATION STRUCTURE

Th

e g

oal

s


Th

e fe

ars

SMEs have difficulties to find cross-

border partners

Taking the responsi-bility of a

Lead beneficiary

Complicated admin-istration

Financial aid is not attractive

enough compared to

national mainstream programmes

Projects with no additional

B2B cooperation

Th

e so

luti

on

s

Lead partner and core partners offering project development services, administrative

backstopping and taking the LB responsibility

High aid intensity using the ‘de minimis’ rule

Clear criteria on the level of indicators

Establishing a ‘PP light’ support scheme for SMEs

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