Snapshot of EGTC’s with Hungarian participation (2022)

Overview of the situation and performance of the EGTCs with Hungarian participation

  • Author

    Melinda Benczi

    László Darányi

    Kitti Dubniczki

    Roland Hesz

    Viktória Jánosi

    Olivér Kriska

    Gyula Ocskay

  • Translator

    Ilka Molnár

  • Year of publicaton

    2022

  • Language

    Hungarian (HU), English (EN)

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You can reach the Contents at any point of the study by using the up arrow in the bottom right-hand corner.

Table of contents

Opening remarks

Since its foundation in 2009, the Central European Service for Cross-Border Initiatives (CESCI) has played an important role in policy interventions regarding the operation of European Groupings of Territorial Cooperation (EGTCs). Until 2022, our association participated in an expert capacity in the establishment of 12 EGTCs (with headquarters in Hungary, Slovakia, Poland and the Netherlands) and elaborated 7 integrated development strategies of them. It also supports project development, communication and event organisation activities of the Hungarian EGTCs. CESCI is a founding member of the EGTC Platform set up by the European Committee of the Regions. Furthermore, it is an initiator and operator of the EGTC Workshop, which meets three times a year to facilitate exchange of knowledge between Hungarian associations. Additionally, it contributes to the development of the EU- and Hungary-related policy frameworks by making recommendations. To this end, CESCI created the EGTC Monitor, which is a detailed database of the activities of Hungarian groupings, and it also regularly analyses and assesses the achievements and development potential, as well as the changing development frameworks. In this area, we work closely with the European Committee of the Regions, the European Commission and the Hungarian Ministry of Foreign Affairs and Trade (henceforth referred to as MFA), which is responsible for the public authority and policy tasks related to the establishment and operation of the EGTCs.

The Regulation (EC) No 1082/2006 first enabled the establishment of the EGTCs, as of summer 2007. Hungary was one of the first countries to adopt the national legislation related to the EU regulation in 2007, and henceforth, the EGTCs could be established in Hungary as well. The European Committee of the Regions announced the first registered EGTC in the European Union in January 2008, followed by the announcement of the second registered EGTC in November. The latter was the first EGTC with Hungarian participants, namely the Ister-Granum EGTC. The Government of Hungary has been providing professional and financial support for the operation of the EGTCs since 2010, including the integration of EGTC development needs into policies, the organisation of workshops for EGTC managers, and supporting their training. Uniquely in Europe, the Hungarian government has provided financial support from the central state budget for the operation of the groupings since 2011. EGTCs with Hungarian members can usually apply annually for non-refundable funding within tenders supporting the operation, for which, self-financing is not a prerequisite. The funding is paid in the form of pre-financing.

The present study aims to overview the operation of the EGTCs in Hungary over the past 10 years and the main achievements of this period. For the analysis we used, among others, the project database created for the Hungarian Ministry of Foreign Affairs and Trade by the EGTCs, which contains data on nearly 440 projects of the groupings. We also used the results of a survey among the EGTCs, conducted by CESCI, which was completed by 15 EGTCs. Out of the 21 EGTCs, registered in Hungary or having Hungarian members, the above mentioned 15 EGTCs are currently active in cross-border regional development. Therefore, the present analysis focuses on these active EGTCs.

The Ministry of Foreign Affairs and Trade annually collects data on EGTC projects from the EGTCs with Hungarian members. The most recent data, received in June 2022, included projects of 14 EGTCs, from the establishment of the EGTCs until the completion of the data sheets.

The database, structured according to a predefined pattern, collected EGTC projects in five categories: Completed projects; Projects under implementation; Projects under evaluation; Rejected projects; Projects managed by the EGTCs as a non-project partner. The EGTCs must provide, among others, the project title, a brief description, the abbreviated title, the funding source, the budget and time horizon for implementation.

CESCI employees organised the data regarding each EGTC into a database, converted the budgets in different currencies into euros and defined the thematic classification of the projects based on the brief description of the projects. In this study, the projects are listed by the year in which their implementation started.

CESCI employees first updated a questionnaire for the study book “Overview of the EGTCs around Hungary”, first published in 2016, and then conducted an online survey among the EGTCs in Hungary with the support of the Ministry of Foreign Affairs and Trade.

The first questionnaire was completed between the 15th and 18th of June 2022 by a total number of 15 EGTCs. The processing of the data received was completed in summer 2022.

The main topics covered by the questionnaire were the following ones: basic data regarding the membership and organisation of the EGTCs as of 31 December 2021; the characteristics and budgets of the EGTCs’ operation; areas of activity and most significant projects; factors obstructing cooperation; and patterns of contact.

The questionnaire mostly contained close-ended questions, but in certain cases, longer responses were allowed as well.

The extent and characteristics of the Hungarian EGTC partner network

The map below illustrates the development of the EGTC network in Hungary. Since the establishment of the first Hungarian EGTC, Ister-Granum, in 2008, the Hungarian EGTC network has become quite extended. Nowadays, each Hungarian county with a state border is covered by the operation activities of at least one EGTC. Only the Austrian-Hungarian common borderland is not covered by a grouping involving partners from both countries. The EGTC network expanded spectacularly, especially between 2010 and 2018. In the early years, smaller EGTCs were established, then with the involvement of county- and regional level municipalities (e.g. Szabolcs-Szatmár-Bereg county, Košice county, Baranya county, Međimurje county), networks emerged covering a much greater area.  Around 2009-2010, the Hungarian EGTC network expanded most dynamically with Slovak partners, followed by the gradual establishment of the EGTCs in Romanian and Serbian, and later in Croatian and Slovenian border areas. In fact, the Tisza EGTC, established in 2016, is the first grouping of territorial cooperation in Europe founded by regional actors of an EU Member State (Hungary) and a non-EU Member State (Ukraine).

The EGTC members in Hungary are typically municipal and county governments, as well as other public institutions in a smaller number. In more than half of the EGTCs with relation to Hungary, only municipal governments work together, and in three cases the members are only county governments. In four cases there is mixed membership.

The number of members has not changed since their foundation in the case of one third of the EGTCs. When the number of members has changed, the increase in membership has been mostly small (less than 15%), except in the case of the Arrabona EGTC (90%) and the Gate to Europe EGTC (77%). here was a decrease in membership only in one case: the Ister-Granum EGTC went from 86 to 82 members between 2008 and 2021.

The EGTCs not only develop active cooperation and partnerships in their own regions, but also maintain regular professional relations with each other. The direction and intensity of these contacts were assessed by a questionnaire, the results of which are presented in the map below. The thickness of the lines connecting the two EGTCs indicates the level of perceived strength of the connection between the parties concerned. The darkness of the dot marking the location of an EGTC indicates the overall significance of the EGTCs in the network perceived by others.  It is shown, that the intensity of the connection is strongly influenced by regional characteristics: the EGTCs located closer to each other, nevertheless  not managing the same border (such as Tisza EGTC and Banat-Triplex-Confinium EGTC or MURABA EGTC and Arrabona EGTC) usually have stronger connections than those EGTCs that are located at opposite side of the country. Overall, the MURABA EGTC and the Ister-Granum EGTC seem to be having the most intense cooperation between them, perhaps due to the relatively high number of projects implemented by the EGTCs concerned.

The following chart illustrates how the EGTCs that completed the questionnaire rate the frequency of their communication with different types of institutions and organisations on a scale of 1 to 4. Although there are significant differences between the EGTCs, namely they most frequently communicate (usually weekly or monthly) with local governments, NGOs, Hungarian county authorities and Hungarian companies. At the other end of the scale, there are scientific organisations from other countries, such as EU institutions, business organisations from other countries (e.g. chambers of commerce), which the EGTCs only contact annually or even less frequently. According to the self-assessment of the associations, the most frequently communicating EGTCs are Arrabona, Mura Region and Tisza EGTC.

Since their foundation, the EGTCs have experienced a clearly positive change in their network of connections. 33% of the groupings said that their relations have become much more intense, 54% said that they have multiplied, but not significantly, while only 13% said that the main parameters of their network have not changed.

The Hungarian EGTCs typically have no active connections with other European EGTCs. In 2021, only the European Common Future Building EGTC was in contact with the Karawanken EGTC. Without any doubt, there is still unexploited potential to strengthen the cooperation with the European associations.

The EGTCs’ capacities

Human resource capacity

One of the indicators of the EGTCs’ human resource capacity is the number of employees. While initially the EGTCs had 1.3 employees on average when they were founded (the Arrabona EGTC and the Gate to Europe EGTC started out with the highest number of employees, three, but four EGTCs started out without any permanent employees), the average number of employees increased to 5.2 by 2021. The rate of increase, however, vary considerably between the EGTCs: the Rába-Danube-Vág EGTC increased its number of employees by 14, the Pannon EGTC by 10 and the Via Carpatia by 9, while ten EGTCs increased their workforce by less than 5 employees compared to the number of employees when founded. At the same time, none of the EGTCs decreased the number of employees.

In terms of human resource capacity, it is important to note, that targeted professional training courses have been available for EGTC employees in recent years, such as the training of cross-border development desk officers at EDUTUS University.

Financial capacity

The following two charts show the tendency of the income and expenses of the EGTCs based on the simplified annual reports of the groupings. Incomes and expenses developed broadly in parallel over the period under discussion. The surge in income is usually accompanied by a similar amount of expense. This indicates that the main sources of income for the groupings derive from the various tenders. These resources are already utilized in the same financial year, so financial reserves are not typically set aside.

For half of the EGTCs, their income exceeded EUR 100,000 at most once since their foundation. Two groupings, the Arrabona and the Ister-Granum EGTC, had almost equal incomes of around EUR 270,000 in 2021, but their financial results in the previous years developed differently. Three of the EGTCs (RDV, Pannon, Via Carpatia) showed an outstanding increase in income in recent years, which is closely linked to the budgets of the highly important Interreg projects they won. The Pons Danubii EGTC’s income showed the most dynamic alterations over the last 10 years – each of the significant surges were due to a high priority project.

As for the development of the incomes and the annual financial results of the EGTCs between 2017 and 2021, half of the EGTCs surveyed typically had an income below EUR 100,000, while the vast majority of the EGTCs ended each year with a slighlty positive financial result. The EGTCs that had a different result from this average were typically involved in several major projects in the given years.

Overall, the EGTCs’ income is largely made up of EU funding, mainly from cross-border cooperation programmes (69%), but other public funding (13%) and member contributions (10%) also make up a significant share. At the same time, however, the contibution of business activities to the overall income is relatively small, thus, this aspect may need to be strenghtened in the future.

Looking at the above data, broken down by EGTCs, it shows that the share of EU funding fluctuates between 0% and 90%, other public funding between 5% and 70% while the member contributions vary between 0% and 30%. This suggests that the EGTCs follow entirely different financial strategies.

Challenges and difficulties of the EGTCs with Hungarian members

According to the EGTCs participating in the research, the factors that complicate the cooperation the most are the following ones: the scarcity of available financial resources; the legal and administrative obstacles regarding the operation of the EGTCs; and the different authorities of the municipalities within the groupings representing the two sides of the border. Fortunately, according to the EGTCs the least problematic factors were the ones that are important when it comes to building cross-border mutual trust (such as prejudices and cultural barriers).

Intriguingly, most of the EGTCs identified 4 to 5 out of the 9 barriers listed in the questionnaire, while the three EGTCs that performed best in project implementation identified 7 to 8 barriers. This suggests that more intensive cooperation also brings about a higher number and more types of barriers.

The role and function of EGTCs

Project implementation

Based on the data in the MFA’s project registry, the total value of projects implemented, under implementation, under assessment, rejected or managed by the EGTCs not as a project partner until summer 2022 is EUR 210 million. These include an almost equal share of projects that were in progress during 2022(EUR 58.5 million); projects that were previously rejected (EUR 60.7 million); and projects managed by the EGTCs through providing professional services rather than working on them as project partners as per the request of actors in the border region (EUR 57.4 million). The total value of the projects already implemented (completed) by summer 2022 was EUR 16.6 million, and the value of those still under assessment was EUR 19.9 million. This means that in the last 10 years, the EGTCs with Hungarian members were actively involved in the utilization of more than EUR 75 million worth of funding, and they played a role in the management of more than EUR 57 million worth of projects along the Hungarian borders. In addition, they also prepared nearly EUR 20 million worth of projects pending implementation. Beside the favourable tendencies, however, the high rejection rate of projects suggests that the groupings still need direct or indirect support to prepare proposals.

The graph below shows the total cost of the different types of projects per EGTCs, excluding projects in progress and projects previously rejected. Out of all the surveyed EGTCs, the performance of the Arrabona EGTC was outstanding: since its foundtion, it managed projects with a total value of EUR 30 million, mostly (95% of the cases) by providing services to partners (regional development). The total cost of the Pons Danubii and the Carpatia EGTC was also over EUR 20 million, but in their case it derived mostly from participating as a project partner. Apart from these EGTCs, three other groupings, the RDV, the Pontibus and the Ister-Granum, have projects with a total value exceeded EUR 10 million. In case of the latter, the share of call for proposals managed as non-project partners is marginal. Strikingly, the development work with the highest value was carried out by the groupings along the Hungarian-Slovak border, which can be mostly explained by the innovative, territorial approach of the programme (territorial action plans and small project fund management). In case of seven further EGTCs, the total value of projects surpassed EUR 1 million.

The support system, provided by the MFA, played an important role in creating the institutional background necessary for the preparation and implementation of projects – on account of which, the EGTCs with Hungarian members received financial support worth around EUR 6.5 million since 2011. The fund essentially contributed to the costs of operation activities, but during the first three years, it was also possible to apply for funding for establishment purposes. Comparing the the total amount of the fund so far  with the above figures, it is clear that the Hungarian government’s support for its own projects contributed to more than ten times the value of cross-border investment. Taking into account the projects managed by the EGTCs not as project partners as well, a twenty-fold return can be observed.

The above figures are somewhat qualified by the fact that the budgets of the projects under analysis did not fully belong to the EGTCs in all cases, but were shared between the members of a partnership, out of which, the groupings had  30% of the total budget of the projects on average.

While it can take several years to complete a project, if all projects are referred to by the first year of implementation, clearly 2019 was the peak year, with a total of EUR 34.6 million worth of projects of different status in the EGTCs. Although, there was a gradual decline in the total value of projects over the past four years as the various funding programmes were discontinued. Fortunately, the project values have not dropped below the levels before 2017, and there is still a significant proportion of projects under implementation. However, the share of proposals managed by the EGTCs not as project partners remained broadly steady over the last years, which indicates a continuous demand for this type of EGTC services.

The following two cumulative bar charts show the total cost of projects implemented between 2010 and 2022. The lowest value was in 2011, when only one EGTC started a project (BTC EGTC) for EUR 69.7 thousand, and the peak was in 2017, when a total of 7 EGCTs started projects for EUR 6.2 million that were since completed. Over the last three years (2019-2021), 3 to 4 EGTCs implemented projects with a modest amount of EUR 147,100 – EUR 274,300.

Among the projects still in progress by summer 2022, the Pons Danubii EGTC’s SWARE project was the first to start implementation (2016). In the following years, more and more EGTCs launched ongoing projects. For example in 2019, 4 EGTCs launched such projects (Ister-Granum EGTC with EUR 4.7 million, Pannon EGTC with EUR 1.7 million, Pontibus EGTC with EUR 4.7 million and Via Carpatia EGTC with EUR 9.3 million). 6 EGTCs launched new projects in 2020,but their total value is less than half of the figures in 2019. These figures also clearly reflect the pathway of the programme period between 2014 and 2020.

As for the number of projects implemented as project partners, or in progress, half of the projects are implemented under Interreg/IPA/ENI programmes, which represents 97% of the total budget. Although in a smaller value, the EGTCs also implemented a significant number of projects funded by other national sources (28%) and national operational programmes (8%).

In terms of budgets, the Interreg/IPA/ENI programmes make up for the largest percentage of project funding for all EGTCs except for one, (the EuropeAid EGTC, which finances 100% of its own development activities from national operational programmes) ranging from 69% to 100%. The national operational programmes play a significant role also for the Arrabona EGTC, while other national funds are mentionable in case of the Tisza EGTC and the Banat-Triplex Confinium EGTC.

If we breakdown the funding sources for projects, we get a much more diverse picture. Thus, the importance of Interreg/IPA/ENI programmes fluctuates between 33% and 100%, while direct EU funding, like the national operational programmes (with the exception of the EuropeAid EGTC), is nowhere above 33%. Other national public subsidies can account for up to 79% of the resources, while private sector tenders are only relevant in case of the Tisza EGTC.

The EGTC as the management organization of the Slovak-Hungarian Small Project Fund

During the period between 2014 and 2020, a call for proposals for the management of the Small Project Fund (SPF) within the Interreg V-A Slovakia-Hungary Cooperation Programme was announced in 2017 with a total ERDF contribution of more than EUR 12 million. In the Western programming area, the Rába-Danube-Vág EGTC was appointed for the umbrella project, thus the management of the SPF, while in the Eastern part, the Via Carpatia EGTC was selected for this task. The minimum ERDF amount of the proposals, announced by the two EGTCs, was EUR 20,000 and the maximum was EUR 50,000.

The Small Projects Fund is in line with two priority axes (PA) of the cooperation programme. The first one is priority axis number 1, called Nature and culture (PA1), which has the specific objective of increasing the attractiveness of the programme area, by supporting projects that contribute to the protection, development and promotion of the natural and cultural heritage of the border region. The other priority axis in connection with the SPF is priority axis number 4 (PA4), which has the specific objective of improving the level of cross-border inter-institutional collaboration and broadening cross-border cooperation between citizens.

The projects supported the development of the following areas: broadening cross-border cooperation and an intense exchange of experience between citizens; developing the capacity for cooperation between organisations and increasing their interest in cross-border activities; improving mutual understanding and approaching ethnic groups in the region closer to each other. The developments further include elements, like increasing the number of long-term inter-institutional cooperation activities; ensuring the high levels of social engagement in cross-border activities; increasing the number of sustainable cross-border events and activities; along with improving the level of bilingualism. In addition, they also received support for  the organisation of joint conferences, workshops, exchanges of experience; the implementation of activities aimed at the preservation of cultural and natural heritage; the development of joint strategies and studies; and the implementation of activities to strengthen cooperation between schools, churches, municipalities, etc.

EGTC as lead beneficiary of the coordination and communication of the Slovak-Hungarian employment action plans

The Territorial Action Plan for Employment (TAPE), developed in 2014 within the Slovakia-Hungary INTERREG V-A programme, is a new tool and a novel solution for the implementation of integrated cross-border development. The tool was developed in accordance with the third priority axis (PA3), and its main goal is to create an integrated plan by the actors on both sides of the border. This should consist of at least 3 and up to 8 projects, supporting the employment situation and cross-border labour mobility, based on the endogenous resources and potential of the region.  This tool, which was highlighted as a good practice by the Interact office, allows actors of the border region to work together on a long-term basis in line with strategic objectives, instead of implementing one-time or ad hoc developments.

During the first round of selection, which was closed in December 2018, the applicants had to submit a comprehensive development plan, called a Territorial Action Plan for Employment (TAPE), defining their main objectives and planned activities. After selecting the best TAPEs, project owners were asked to elaborate and detail their ideas in 3 to 8 project proposals that complement or reinforce each other. At least, one project in each action plan had to be a coordination and communication project (CCP), which aims to coordinate the project implementation of all the project partners throughout four years.

Under the call for proposals and within the framework of CCP, the EGTCs were listed among the eligible applicants to receive funding. In the case of five out of the nine action plans that received funding, both the role of Lead Beneficiary (LB) and CCP project partner was undertaken by one respective EGTC. In order to successfully implement the above mentioned 5 TAPEs, the EGTCs carried out the overall coordination and communication activities of the respective consortium as beneficiaries.

The details of action plans implemented with the assistance of the EGTCs are provided in the chapter on economic development activities.

Beneficiary status on the other side of the border

The Ister-Granum EGTC, which operates in the Slovak-Hungarian border region, plays a specific role in the Building cross border ferry connection and necessary infrastructure between Neszmély and Radvaň nad Dunajom project (Ferry in Neszmély-Radvaň nad Dunajom, SKHU/1601/2.2.1/362). The total project value is EUR 5,366,124.90, and remarkably, the Hungary-based EGTC is responsible for the implementation of the investment on the Slovak side with a total value of EUR 1,894,066.4. The project will utilize the EGTC’s advantage to enjoy legal capacity in both member states. The Slovakian Radvaň Nad Dunajom did not have sufficient self-financing at its disposal to implement the project and could not pre-finance it under Slovak rules, subsequently, the EGTC took over the management of the project from its member municipality. According to the Hungarian regulations, the EGTC has access to the full 10% of national co-financing (which Hungarian applicants receive as pre-financing) and 50% of the ERDF budget. Without this innovative solution (which also required the support of the competent national authorities of the two member states), the ferry service, which will start in 2023, cannot be implemented.

Another example for an EGTC to implement an INTERREG project as a sole beneficiary is that of the Arrabona EGTC’s Builcogreen project.

Preparing, supporting and managing proposals

As shown in the EGTC project register, the activities of the groupings are only partially covered by the projects in which they participate as direct beneficiaries. There is also a relatively high proportion of projects in which they are not involved as beneficiaries, but as external managers supporting the implementation. In terms of number of projects, 45% of all projects in the register fall into this category, while in terms of aggregated budget, more than 25% of all projects fall into this category.

As for the budget of proposals not managed as partners by the EGTCs, 2020 was really exceptional. However, no linear tendencies are shown regarding the number or the budget of the projects.

The period between 2013 and 2022 indicates a wide variation in the budgets of proposals where the EGTCs did not participate as project partners. In 2014 and 2016, none of the EGTCs carried out service management activities; in 2013, only the Arrabona EGTC carried out such projects, with a value of EUR 2.7 million; in other years however (2018, 2019 and 2020), up to 6-7 EGTCs provided such services. Not surprisingly, these latter are also the years with the highest overall project budgets with EUR 11.5 million, EUR 8.7 million and EUR 10.5 million respectively.

As illustrated in the graphs, the proportion of this type of activity is not fairly shared between the EGTCs, since for some EGTCs this is a strongly emphasized activity compared to the other EGTCs. For example, 54% of these projects are linked to the Arrabona EGTC, which is also 43% of the overall value of such projects.

Although the following graph shows that the Arrabona EGTC has by far the highest number of proposals (98) which they did not manage as a project partner. This correlates with the highest budget (EUR 22.9 million), but there are also 7 further EGTCs with a total budget of more than EUR 1.5 million. However, the number of projects and their budgets do not always correlate: the Pontibus EGTC runs only one such project, but its budget is the second largest (EUR 6.7 million), while at the other end of the scale, the MURABA EGTC has 30 such projects (second largest) but its total budget is only EUR 479,008, which is the third smallest amount.

Participating in breaking down legal and administrative barriers regarding cross-border cooperation within b-solutions

The Hungarian EGTCs were also actively involved in the b-solutions pilot action of the European Commission’s Directorate-General for Regional and Urban Policy (DG REGIO), which was managed by the Association of European Border Regions (AEBR). The projects supported under the call for proposals, launched by the Commission communication with title Boosting growth and cohesion in EU border regions, aim to identify and remove legal and administrative obstacles of cross-border cooperation by making the necessary recommendations. The results will be summarized in document collections, which will be disseminated widely among the regional actors, in order to raise awareness and improve capacities.

In the first call for proposals launched in 2017, two EGTC-related projects were submitted for funding. The Hungarian-Croatian-Slovenian Pannon EGTC argued that different standards hindered Croatian and Hungarian local farmers from selling their products across the border within the cooperation area. As the first step of the pilot action, the needs, expectations and practical difficulties of local farmers were profoundly analysed. In order to further facilitate cross-border trading of local farmers, the Pannon EGTC compared the current Croatian and Hungarian legal and administrative provisions to identify problematic areas that need to be addressed in the future. The main objective was to achieve conditions that facilitate the cross-border trade of local products. Policy recommendations were made in order to raise awareness among the parties involved and to draw attention to the need of introducing new legislation in the field of cross-border food trade.

The Hungarian-Slovak Arrabona EGTC carried out a survey on the legal-administrative possibilities for the joint management of public maintenance machines. Thanks to a more detailed analysis involving an expert, the obstacle was proved to not be of legal-administrative nature, so the grouping moved closer to finding a solution. It was agreed upon, that the promotion of better coordination between the two national police authorities is important, and so is to improve capacity building in relevant cross-border cooperation cases in order to facilitate the joint management of maintenance machines.

The first b-solutions compendium (2020)

For the second round of the call for proposals, even more Hungarian EGTCs submitted an application. The barrier presented by the Slovak-Hungarian Via Carpatia EGTC was concerned with clarifying the legal status of the branch office established in the partner country. Identifying the EGTCs as autonomous actors in a neighbour country is a complicated process, especially when it comes to financing. The root of the problem is the fact that Via Carpatia was registered in Slovakia but it has a Hungarian member, which could only receive financial support from the competent Hungarian authority if it had set up a non-profit branch or subsidiary in Hungary. However, ever since a legislative amendment was accepted, which made EGTCs not registered in Hungary eligible to receive national funding.

In case of the Hungarian-Slovak Ister-Granum EGTC, the focus of the examination was on difficulties related to cross-border employment, as the application of social security and health insurance regulations were found to be ambiguous in these two countries. This issue was analysed through two case studies, in which they involved two employees trying to navigate through the administrative requirements of social security schemes. This study proved that a coherent and unified solution is needed regarding the HR-matters of cross-border employment. The EGTC intends to contact the responsible national institutions in order to share the expert report, thereby promoting the coherent application of the provisions.

Within another b-solutions project, Arrabona, which is also active on the Hungarian-Slovak border, was working on facilitating the coordination of social security schemes to support the free movement of cross-border workers and pensioners. Thousands of people commute daily between the two countries, and there are also thousands of pensioners with Hungarian citizenship in Slovakia. The EGTC sought to address the issue that the process of transferring a worker’s social security or pension from one country to another is rather long and complicated. To outline a possible way to find a solution, an analysis of the current social security legal environment and the compliance of national procedures with EU requirements was carried out, along with producing a collection of good practices.

In the framework of b-solutions initiative, the Gate to Europe EGTC, operating on the Hungarian-Romanian border, which is a particularly important agricultural production border area, focused on analysing regulatory obstacles of employment, primarily labour mobility in the agricultural sector. As a large proportion of farmers, sole proprietors and small family farms face many difficulties in selling their products across borders. The project aimed to support a fair access to local products without geographical constraints. The proposed activities were developed along a threefold strategy. Firstly, a comprehensive legislative and administrative analysis was carried out regarding the cross-border trade of local products. Secondly, leaflets were created in Hungarian and Romanian languages for farmers and producers in order to promote cross-border trading. Thirdly, thematic workshops and open markets provide opportunities for Romanian and Hungarian farmers.

One of the initiatives of Mura EGTC, operating on the Hungarian-Croatian border, was also highlighted by the AEBR. The project was based on the fact that water tourism activities on the Mura river are accompanied by a complicated authorisation process. Moreover, not only complex cross-border problems have arisen, but they have also occurred at the Schengen external border. The EGTC also sought to find a solution for the lack of water tourism regulation complicating the work of tour operators. They explored the differences between the training of tour operators in the two countries, as well as the differences in the licensing processes. Within the framework of the pilot initiative, a number of proposals were made for the development of cross-border water tourism services, such as mutual recognition of certificates of related trainings (with a list of training courses automatically accepted by both national legal environments), organizing joint trainings, facilitating stronger cooperation between national authorities through regular meetings, workshops, etc., one-stop-shop for tour permits, issuing permanent and non-seasonal permits, water tourism infrastructure development and local business development. The EGTC seeks to improve the conditions for Croatian and Hungarian training programmes and licences in the future.

The second b-solutions compendium (2021)

Actions regarding the COVID-19 pandemic

Due to the emergence of the COVID-19 global pandemic, the EGTCs along the Hungarian border had to face several challenges. For example, the borders were closed, border control was reintroduced, social distancing was obligatory and the commuting between borders became more complicated. All of these new and special challenges were addressed by the EGTCs, namely they actively helped to ensure the free movement and livelihoods of the residents of border regions.

The Gate to Europe EGTC, along with the Hungarian-Romanian border, conducted a survey in May 2020, involving the mayors of the member municipalities to assess the direct and indirect impacts of the first epidemic wave. The assessment was considered successful, as the survey was filled out by more than 70% of the mayors concerned. As this data shows, the EGTC addressed a relevant question even for local decision makers. The evaluation showed that the quarantine affected hundreds of people in spite of the small number of reported cases. The assessment also examined the impacts of border crossing restrictions, introduced as part of the virus control, on cross-border social relations and the economy. It also showed that according to two thirds of respondents, businesses were adversely affected by COVID-19 protective measures and that 70% of the respondents reported increasing unemployment.

The Banat Triplex Confinium EGTC, which operates in the area of the Hungarian-Romanian-Serbian trinational border, did not shut down its activities when the borders were closed. Instead of the closure, it distributed face masks and hand sanitizers among the Romanian municipalities.

In light of the subsequent epidemic waves, the Tisza EGTC team, operating in the Ukrainian-Hungarian border region, prepared packages of cleaning products for social institutions on the Ukrainian side to maintain their hygiene standards during times of temporarily softer measures. The arranged packages then were distributed to the old people’s home and social care homes for disabled people, as these institutions were often found to be at higher risk of coronavirus due to the age or chronic illnesses of the residents. Furthermore, medicines, cleaning and disinfectant products and contactless thermometers were delivered to an old people’s home in the district of M. Uzhhorod, Ukraine.

European study on the impacts of border restrictions on citizens

The Tisza EGTC’s humanitarian work to aid Ukraine

Without losing sight of its original regional development activities and objectives, the Tisza EGTC has been using all its resources and contacts to provide as much assistance as possible to the Transcarpathian population and to the internal Ukranian refugees since the first days of the Russian-Ukrainian war. The President of the General Assembly of Szabolcs-Szatmár-Bereg County, who is also the President of Tisza EGTC, was among the first to assure the President of the Transcarpathian County Council, the co-chair of EGTC, Volodymyr Chubirko, of his support.  With the participation of the EGTC President, a coordination centre for Transcarpathian and Ukrainian refugees was established on 25 February 2022, with the Transcarpathian House as its base. One of the managers of the coordination centre in Kisvárda is the director of the Tisza EGTC. From the donations collected in the Transcarpathian House, the first humanitarian aid consignment, which consisted of several fully loaded cars, arrived to Ukraine on 2 March 2022. Between the outbreak of the war and 12 April 2022 alone, the Tisza EGTC’s managers and aid workers made nearly 50 visits to Transcarpathia, delivering a total of 150 tonnes of humanitarian aid to numerous settlements and institutions in need.

Thanks to the local knowledge of the director of the Tisza EGTC, Andrea Szabóné Cap and the deputy director in Uzhhorod, Judit Jevcsák, the Tisza EGTC can facilitate material and financial donations from Hungarian municipalities and foreign donors to reach their destinations.

In addition, with the support of UNICEF, the Tisza EGTC, in cooperation with the Municipality of Záhony, organized a free summer camp for sixty Ukrainian refugees temporarily staying in Transcarpathia and sixty further children from Hungary. The main goal of the camp was to get to know each other and each other’s present life circumstances. The Tisza EGTC played a significant role in both the children’s transportation to Hungary and in other organisational tasks.

EGTC projects divided by topics and sectors

The cumulative bar chart based on the project database of the Ministry of Foreign Affairs and Trade shows the thematic distribution of the projects by the number of projects and their budgets. The projects were assigned into thematic categories by CESCI employees based on the project descriptions. Eight categories were identified based on the type of the projects. Some projects may fall into more than one categories, in which case, a secondary theme was also determined apart from the primary thematic category.

Taking into account both the primary and secondary data, it is clear that most of the EGTC projects were or are being implemented within the following categories: culture (31), economic and regional development (27) and tourism (21). However, the EGTCs did not participate in any health care projects directly, as project partners. Tourism and employment policy are the two most frequent secondary (indirect) topics. This order is almost entirely reflected in the project budgets, although it needs to be added, that the specific budgets of projects related to transport infrastructure development, social services and elderly care are higher, while projects related to the environment are lower.

The primary thematic classification of projects, divided by the EGTCs, indicates that the first three most popular themes (culture, economic and regional development, social services and elderly care) are dominated by the Via Carpatia EGTC. However, in case of certain topics, such as culture, many EGTCs are involved at least at a modest level, while in case of other topics (such as transport infrastructure, or education) only a few number of the EGTCs find them relevant enough to dedicate a project to them. It is also shown that most of the EGTCs focus and specialize in two or three topics and only a few number of the EGTCs have the possibility to be active in more (even seven) topics. These  EGTCs are the Pons Danubii and the Via Carpatia EGTC.

The survey conducted among the EGTCs also covered the themes to which the groupings are committed. Almost all the EGTCs claim to operate in tourism development, economic and regional development, as well as cultural issues, but surprisingly only the Ister-Granum EGTC deals with the issues of cross-border commuters and people moving across the borders. Out of ten predefined themes in the questionnaire, the EGTCs mostly focus their activities only on three to six topics.