Brussels, 02/02/2004 (Agence Europe) - The European Commission and Hungary reached an agreement on Hungary's programme for rural development for the period 2004-2006. The total financial allocation for this programme amounts to EUR 422.8 million, of which EUR 317.2 million come from the Community budget (EUR 312.8 million from the European Agricultural Guidance and Guarantee Fund, Guidance Section, and EUR 4.4 million from the Financial Instruments for Fisheries Guidance). The programme will be formally approved when Hungary joins the EU on 1 May 2004.
The priorities of the programme, which have been defined by the Hungarian authorities, are as follows: - establishment of competitive raw material production in agriculture (including fish products), with Community aid of EUR 180.9 million; - modernisation of food processing (EUR 44.4 million from Community funds); - development of rural areas (EU aid of EUR 84 million); and - technical assistance (Community aid of EUR 7.9 million).
Implementation of the programme will be assured by a "follow-up" committee operational since end 2003, in which all partners concerned will be represented. It will be responsible for ensuring that the measures in favour of agriculture and rural development are applied effectively. The Structural Funds Department of the Hungarian Ministry of Agriculture and Rural Development will be the authority responsible for managing the programme.