CzechHungaryPoland

& the Financial Crisis

Background: EU accession: 2004 Subjects to excessive deficit procedures Have not yet adopted the euro

GDP(PPS)

EU-27PolandHungaryCzech

Unemployment

CZR – 8.6% HUN – 11.2% POL – 12.6%

CZR – machinery and transport equipment, raw materials, chem. (exp. & imp. POL 6.3%, 7.1% )

HUN – machinery, other manufacture (imp. POL 4.7%)

POL – machinery, manufacture, food and live animals, chemicals

CZR – 3.1%, 38.6%

HUN – 4.7%, 30.9%

POL – 17.4%, 29.2%

Occupied in agriculture & industry:

Exports/Imports

Background

People at risk of poverty or social exclusion:

Czech > 15%, Hungary > 30%,

Poland > 25%.

Common policy issues: public finance, economic growth, narrowing budget deficit, employment & labor force participation

Background

News: Inside the borders

New PresidentMilos Zeman, social democrat

Budget deficit to exceed EU limit; IMF talks - no result

EU freezes €4bnfraud case

Give 1.5 bil

Get 3.0 bil

Czech

Give 836.4 m

Get 5.3 bil

Hungary

Give 3.2 bil

Get 14.4 bil

Poland

EU Budget

Growth

020

040

060

080

010

0012

0014

00

PolandHungaryCzech

Millions of euros

Comparison

Farming

0 200 400 600 800 10001200

PolandHungaryCzech

Millions of euros

Comparison

Administration

0 50 100 150 200 250

PolandHungaryCzech

Millions of euros

Comparison

Justice

0 5 10 15 20 25 30 35 40 45 50

PolandHungaryCzech

Millions of euros

Comparison

Partnership

0 0.1 0.2 0.3 0.4 0.5

PolandHungaryCzech

Millions of euros

Comparison

Czech Republic

Czech is a net beneficiary, opposing decreasing of the budget.

Money saved on CAP will be allocated to education, research and energy security.

5.4 bil euros for agriculture and 1.9 bil for development.

Hungary

• 60% of EU funds will be used on economic development

• €48m for unemployment

• Biggest payout per capita

• 10% lower than the previous budget deal

Poland• Finance Minister Jacek Rostowski :

“a unique, huge success”

• 52% of all public investment comes from EU budget

• "development eastern Poland" programme

• Wants a "European defense force" to guarantee European security

Delaying Euro Adoption Excuse: Eurozone crisis

Exchange Rate Mechanism II (ERM II)

Minimum 2 years

Spring 2007 Spring 2012

Poland 38 46

Hungary 30 27

Czech Republic 43 62

% of respondents who think that the consequences of adopting the euro are “very and rather negative”

Conclusion

Friends of Cohesion

Poorer regions that benefit highly

Positive ending

The Guardian: EU budget: how much does each country pay and where does it get spent?

EurActiv: EU budget summit aftermath: ‘Everyone’s a winner’

European Commission: Where does the money go?

4-traders: Government succeeds in EU budget negotiations

Syracuse University Conference: “The Euro Crisis and the Future of the European Union”

The Guardian: EU budget interactive

The Guardian: EU leaders reach historic budget deal - as it happened

Sources