| HUNGARIAN AGRICULTURE AND EU HARMONISATION |
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| by |
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| Ferenc Nyujtó, Budapest, Ministry of Agriculture of Hungary |
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| JEL classification : P270, O130, F150 |
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| Abstract |
| Hungary faces significant economic challenges concerning its macroeconomic environment and agricultural sector. Currently two Hungarian agricultural factor markets do not follow EU practice for free market operation. This discourages equity investment and raises investment risk because of the lack of collateral and emphasis on short and medium term debt. The general success of EU investment incentives is founded on the "capital inertia" represented by land values (market valuations), land as a semi-liquid asset (can be sold) and the existence of long term finance (mortgages).
From the point of view of Hungary’s accession to the EU, agro-food sector is one of the key areas. Given the intention of Hungary to join the European Union, integration has become a definite element, even a priority for the Hungarian agricultural policy. In line with the European Agreement, the analysis shows that an harmonisation process has been started. |
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