General Advantages – Joining a community of stability, democracy, security and prosperity – Growing internal market, increasing domestic demand (customs-free access to 450 million consumers) – Free movement of labour force, goods, services and capital Benefits of Recent EU Accession

Economic Effects I. – 0.8 % point increase in the GDP growth rate – 1.0 % point increase in the rate of industrial output growth due to higher export sales dynamics – Growing inflow of FDI due to increased business confidence – Regional hub role – gateway to Eastern Europe Benefits of Recent EU Accession Source: GKI

Economic Effects II. – State subsidy system in line with EU regulations – Stronger competition and drive for innovation – Easier access to financial institutions and funds within the enlarged European Union – Transport infrastructural investments may reach EUR billion until 2010 Benefits of Recent EU Accession

Benefits of Recent EU Accession Economic Effects III. – Increasing EU funds for environment protection, education, R&D and supporting SMEs – Transparency of taxation and business accounting rules – No customs or quantitative limitations within the EU – Simplified procedure in business administration when exporting to EU member states – Free access to a market of 450 million consumers for non- European companies settled in Hungary

Economic Effects IV. - Reduction of trade barriers – Mutual certification of goods – Single standard certification process for the entire region – Rigorous enforcement of competition policy and intellectual property rights – Harmonized VAT payment system in the EU Benefits of Recent EU Accession

Outlook for EMU Membership - Date of possible entry: 2010 – Lower real interest rates boost investments – No exchange risk and conversion charges – A potential % increase in the economic growth due to the adoption of the single currency – Meeting the Maastricht convergence criteria Benefits of Recent EU Accession

 Structural Funds: EUR 2,086 million – Economic Competitiveness OP – Human Resource Development OP – Environmental Protection and Infrastructure Development OP – Agricultural and Rural OP – Regional Development OP  Cohesion Funds: EUR 330 million Benefits of Recent EU Accession  EU 6th R&D Frame Program: – EUR 17,500 million  IEE: Intelligent Energy for Europe: – EUR 265 million  Leonardo da Vinci II.: – EUR 1,150 million for Hungary for all EU members Source: EU