Bridging disparities under the Hungarian EU Presidency: ensuring accessible public services for all citizens

Tibor Navracsics, Minister for Public Administration and Regional Development, Hungary

Territorial cohesion is a cornerstone of the EU's cohesion policy, which aims to reduce regional disparities and promote harmonious development among EU Member States and regions. The achievements in advancing less developed Member States clearly justify the necessity of efforts which have been made so far. Elisa Ferreira, the Commissioner for Cohesion and Reforms, emphasised at the 9th Cohesion Forum that thanks to collective action, the population living in less developed countries within the EU has decreased from 25% to 5% over the past 20 years.

Detailed analysis reveals polarisation and the concentration of economic and social resources within countries.

Due to these interventions, Hungary has experienced significant economic growth since joining the EU. The country's economic development relative to the EU average has increased from 63% in 2004 to 76% in 2022. While this achievement is rightfully celebrated, we must recognise that further progress is needed in terms of cohesion, as challenges remain.

Although Europe has considerably moved forward over the last two decades, not all regions have benefited equally. Convergence is effective, but significant issues persist at both national and regional levels. Detailed analysis reveals polarisation and the concentration of economic and social resources within countries. For example, Budapest's economy expanded from 129% to 158% of the EU average between 2004 and 2022, while less developed neighbouring regions advanced more modestly from 40% to 50%. Many counties and micro-regions suffer from a stagnant economy, lack of opportunities, depopulation, and other issues. This phenomenon is not unique to Hungary but is common across many European countries. Europe's competitiveness relies on the performance of its strong economic centres, which must be continually reinforced. However, the development of these centres, without deliberate cohesion measures, can further weaken peripheral areas through an organic pull effect. Polarisation generates damaging processes in rural regions, such as a lack of economic potential, scarce job opportunities, connectivity problems, and deficiencies in service provision, which lead to migration flows from rural to urban areas. Consequently, public and private services become unsustainable in rural areas, while those in and around cities become heavily overloaded.

The Territorial Agenda 2030, adopted by EU ministers responsible for regional development in 2020, underlines the central role of accessibility, proximity, affordability, and quality of public services as focal point s for intervention.

Addressing the development issues and declining populations of peripheral regions is not only a matter of solidarity, but also essential for the adaptability of the EU and its Member States. By utilising untapped development opportunities and potential, we can make these areas more dynamic and thus achieve automatic convergence at regional, national and European levels. Since being dynamic depends on the local population, competitiveness is ultimately rooted in the liveability of a territory.

Therefore, we believe that the success of cohesion policy can be measured by the increased liveability of countries, regions, and towns. Territorial liveability depends on four main elements: accessibility; environmental and climate-related conditions; job opportunities; and the availability of public services. The state of these factors fundamentally influences citizens' decisions about where to live.

The first three aspects have long been the focus of territorial development and various sectoral policies, while the availability of high-quality services has perhaps received less attention. In this context, the Territorial Agenda 2030, adopted by EU ministers responsible for regional development in 2020, underlines the central role of accessibility, proximity, affordability, and quality of public services as focal points for intervention.

This strategic approach goes beyond purely regional and national considerations and requires concerted efforts at macro-regional and European levels. Making public services widely accessible can profoundly impact migration patterns and improve living standards in peripheral rural areas. Basic services such as healthcare, education, transport, and social welfare are crucial for ensuring equitable access to opportunities across geographical boundaries.

In addition, the viability, accessibility, and adequacy of public services require different solutions and approaches in depopulated rural territories, in stagnating small and medium-sized towns, and in overpopulated metropolitan areas. Recognising the importance of this issue, we have made public service delivery a top priority of the Hungarian EU Presidency?s agenda. This strategic focus highlights our commitment to promoting equitable development and strengthening the resilience of marginalised communities across the European landscape.

The ongoing ESPON DESIRE research initiative, through a series of European good practices, will provide invaluable insights into these discussions. It seeks to illustrate how different countries manage the provision of public services in lagging areas with special needs. By presenting various approaches, this endeavour informs policymakers across the EU and enriches the discourse on public service development at the European level.

Tibor Navracsics, Minister for Public Administration and Regional Development, Hungary