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EU proposal to lower co-financing threshold would generate €300 mln in fiscal savings

A proposal by the European Commission to lower Hungary's national co-financing threshold for European Union-supported investments from a minimum 15% to at least 5% could free up about €300 million from the country's budget, state secretary at the National Development Ministry Ágnes Molnár said on Tuesday.

The Commission said on Monday it proposed lowering the proportion of the cost Hungary and five other member states must cover in EU-supported projects with the aim of launching investments that have not yet started because of a lack of national funding.

The measure "should be accompanied by a prioritization of projects focusing on growth and employment, such as retraining workers, setting up business clusters or investing in transport infrastructure", the Commission said.

The measure does not represent new or additional funding but it allows an earlier reimbursement of funds already committed under EU cohesion policy, rural development and fisheries, the Commission said.