What to do with the European Union? EU money with your morning coffee
When it comes to direct EU funding opportunities, many Hungarian executives do not know that we are not only talking about funds that can be applied for on a national level (indirectly, i.e. through national authorities), but that there are also many sources of direct EU funds that are launched and evaluated by the EU institutions themselves. Unfortunately, the participation of Hungary’s economic operators in such calls is still low. Blue Door Consulting focuses on monitoring and identifying direct EU funding opportunities and call for proposals for the private sector in Central and Eastern Europe, preparing, developing and submitting the related application materials, as well as building relationships with EU decision-makers. Balázs Kós, Founder and CEO of Blue Door Consulting, summarizes what you need to know about direct EU funding.
Direct tenders: the untapped opportunity
In line with Hungarian priorities, our aim is to increase the amount of direct funding mobilized vis-a-vis the previous EU multiannual financial cycle and to help reach the target of €7 billion (€1 billion per year) in direct funding over 7 years (during the current EU financial cycle 2021-2027). Although there are no national quotas for direct funding, this target corresponds to the amount that domestic players should be able to access in comparison to the overall EU population. This is particularly important given that during the previous EU financial cycle (2014-2020), the total amount of EU direct funding won by Hungarian companies was under €1 billion over those 7 years. This means that domestic companies are missing out on an alternative source of funding - more than HUF 350 billion per year - which could help them grow, innovate and gain more market share at European level by building European connections.
Direct EU funding offers opportunities to develop domestic businesses, carry out research and development projects, make investments and promote the digitalization and greening of firms. A key eligibility requirement for most of these calls is the creation of cross-border consortia or partnerships, which – at the same time - also helps develop the network of firms operating on a national level, supporting them to become more embedded in the European market. We are actively seeking to strengthen the position of Hungary and Central and Eastern Europe in leveraging and utilizing direct funds as much as possible, and to create innovative projects that can serve as examples for other European countries. Blue Door Consulting covers all stages of the application process - from monitoring calls to proposal writing, including consortium building with European partners - assuming their administrative burdens.
The total EU budget for 2023 is €186 billion, out of which €63 billion is earmarked for investment, investment and strengthening territorial cohesion. Top priorities include green and digital transitions, boosting competitiveness, IT and 5G developments, retaining skilled workers and mitigating climate change. All of these priorities also feature prominently among direct calls launched with the frameworks of the following programmes:
· Horizon Europe (€12.4 billion),
· Erasmus+ (€3.7 billion),
· Connecting Europe Facility (€3 billion),
· Just Transition Fund (€1.5 billion),
· European Defence Fund (EUR 945.7 million),
· LIFE program (EUR 755 million),
· EU4Health (EUR 739 million),
· Creative Europe (EUR 332 million).
In terms of topics, particular emphasis is placed on the twin - green and digital- transitions, energy, innovation and health, in line with EU priorities. In addition, whether we look at the services industry, energy companies, defence or education, there are still numerous – so far untapped – opportunities for cooperation under direct EU programs. Furthermore, we are also working on territorial development – an area generally supported by operational programs (indirect funds, managed by national authorities) – to show how direct EU programmes and funds can best complement these existing funds to help enhance a country's competitiveness.
Given the diversity of both EU programs and the private sector, Blue Door Consulting can help a wide array of actors from SMEs and start-ups to large companies identify relevant direct EU funding opportunities and calls for proposals, build consortia, develop relevant projects and submit proposals. Through this, we also contribute to further developing Hungary's and the region's relations with European stakeholders both at the level of the private sector and the EU.
Because you need a guide in EU affairs!
Balázs Kós (Founder and CEO, Blue Door Consulting - Balazs@bluedoor.consulting)
Background
For Hungary and the other EU Member States that joined the EU in 2004 or later, and especially for the private sector, opportunities for cooperation with the European Union is still not 'business as usual'. For this reason, our firm's activities are based on two main pillars: to facilitate both networking between the private sector in Central and Eastern Europe and EU decision-makers, and to facilitate greater access to direct funding. Without this, both the Hungarian and the regional private sector are missing out on an important economic and financial opportunity:
Lobbying in Brussels is possible and even necessary, and it can and should be done not only by government representatives, but also by the private sector. This is not only common practice in the Member States that joined the EU before 2004 but is part of everyday advocacy: it is important to present private sector interests to EU decision-makers in Brussels at an early stage, to influence decision-making processes and policy developments, and to steer decisions in ways which benefit the domestic (national or regional) business and regulatory environment.
The opportunities offered by direct EU funding feature in the business model of many companies in Western Europe: not only can companies access more resources, but the creation of an international (European) consortium - which is a key requirement in most calls -, also helps market expansion. In addition, this can also mean growth through so far untapped resources for firms, as they can grow not through loans - or investments - but thanks to money won through (in the majority of cases equity-free) direct EU funding.
Balázs Kós
Balázs Kós aims to use his extensive international and EU experience to develop and improve private companies' relations with the European Union. From January 2016 until the end of his mandate in November 2019, he worked in the Cabinet of Commissioner Tibor Navracsics (Member of the European Commission responsible for Education, Culture, Youth and Sport) until the end of the Juncker Commission's mandate in November 2019.
Before joining the Cabinet in January 2016, he worked at the Directorate-General for Education and Culture, where he gained first-hand insight into the functioning of EU institutions. He first joined the European Commission as a Blue Book trainee in 2014.
Balazs Kos undertook his studies on the European Union at Maastricht University (in the Netherlands), the Brussels School of International Studies, as well as King’s College London.
The original version of this article first appeared in Cégérték in Hungarian, which can be accessed through the following link:
https://cmbp.hu/eszik-e-vagy-isszak-az-europai-uniot-avagy-unios-penz-a-reggeli-kave-melle-kos-balazs-a-blue-door-consulting-alapitoja-es-vezetoje/