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The European Union and competitiveness
15-19Views:139I define first of all the competitiveness in my study „Analysing the competitiveness of the European Union”. After that I turn to the analysis of the competitiveness of the EU. The European competitiveness index and its concept were of great assistance during the analyses. The concept of the European competitiveness index has three main components: creative economy, economic performance, access to infrastructure. It is unambiguous that the European Union can only sustain and increase its position reached in the world economy, when its member states commit themselves for the completion of the knowledge based economic policy striving for competitiveness. The Europe 2020 strategy and the budget period 2007–2013 emphasize the outstanding role of competitiveness and urge to take the necessary measures.
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System of relations between competitiveness and social cohesion in the European Union (2007–2020)
39-45Views:144I my current essay I tried to prove that the European Union modified its economic policy due to the financial and economic crisis and the fierce global competitiveness requirements. The main emphasis was laid on the increase of competitiveness. Competitiveness became preferred
to cohesion and the economic and social closing up of the newly joined Middle-Eastern European countries. The funds for competitiveness for growth and employment increase by 6–7% yearly during the financial perspective between 2007–2013. On the contrary the funds for agriculture and rural development decrease by 3% yearly in this period. The tendency remains unchanged during the financial perspective 2014–2020.
This tendency strengthens the establishment of the two speed Europe concept and causes tensions between the core regions and the peripheries. -
Cohesion and competitiveness of the European Union at strategic level
29-33Views:109After the relaunchment of the Lisbon strategy, the cohesion policy of the EU concentrates even stronger on the establishment of the knowledge based economy, on R&D activities and innovations. In the first chapter I demonstrate the funds division of the convergence and regional competitiveness targets in the financial perspective between 2007–2013. The first sheet shows unambiguously that the new member states from Middle-Eastern Europe and the Mediterranean countries spend their funds on convergence and cohesion issues. The situation is contrary in the highly developed Western-European countries, in the core regions, where decisive part of the funds are spent on competitiveness issues. In the second chapter of the study I present the Europe 2020 strategy of the EU, that is a crucial paradigm change in the European strategy-making. While the Lisbon strategy focused on the social cohesion of the European Union, the Europe 2020 strategy strives the fostering of the European competitiveness. In the third part of the study I make a comparison how the funds-allocation altered during the two financial perspectives.
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Examining the competitiveness of the Great Plain region through a few basic indicators
35-40Views:78There are significant differences in the level of economic development and social relations between the various regions of Hungary, consequently, their competitiveness is also dissimilar. The term ’competitiveness’ has recently gained a regional meaning from various aspects. The unified interpretation of ’competitiveness’ is applicable to all basic units of the economy in a flexible way, and is therefore applicable on regional level as well. Regional competitiveness is measured against four economic categories: regional income per capita, work efficiency, employment rate and age composition. In addition to an overview of the region, this study will analyse the above components of regional competitiveness based on data describing the region.
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The correlation of foreign language proficiency, employment and regional competitiveness in the North Great Plain Region of Hungary
74-82Views:69Employment is one of the basic factors when evaluating a region’s competitiveness. Boosting employment figures will also increase individual income. However, the creation of jobs alone will not solve the problems of unemployment, as labour force with skills matched to labour market demands should also be available. Continuous development of the labour force, adjusted to recent needs in the labour market, can contribute to a region’s competitiveness. Mismatches between education and labour market requirements would be too expensive, especially for backward regions like the North Great Plain Region of Hungary. Foreign language education should also be adapted to the changing economy when selecting target languages and language skills. A workforce equipped with contemporary and needed second language skills can be an element in making a region attractive for investors. Although current trends show signs of improvement, Hungary and especially the North Great Plain Region still does not have much to offer in this respect. The paper examines the reasons for the low level of second language acquisition among Hungarians and the population of the North Great Plain Region and explores the ways foreign language knowledge could promote economic development.
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Differences in Regional Development in the Northern Great Plain Region
170-180Views:175An important ambition of EU regional politics is the reduction of disparities. An important strategical objective of the Commission is to terminate underdevelopment and to ensure the development of the regions based on the principles of solidarity, equity and justice. The commission has dedicated forty percent of its common budget to achieve these goals. The differences in development are significantly influenced by the economic characteristics of the specific region, the quality and quantity of human resources, the accessibility of the region and factors influencing local quality of life.
The new spatial structure has been formed by the processes of the change of regime, the events of nineties and the economic renewal based onforeign capital investments parallel with crisis phenomenon. The economic, political and social consequences of the transformation have significantly transformed spatial structure and increased disparities. New disparities have formed, which strengthened due to the formation of east-west slopes and local crisis zones. The outstanding improvement of the capital resulted in great regional development differences, which can be detected when examining regional distribution of gross domestic product. The Eastern part of the country was most heavily affected by the collapse of heavy industry and agricultural mass production based on the Eastern markets.
It is of key importance for the region to strengthen regional competitiveness, which requires the application of consistent development-politics. Economic development is the most important, which can also draw the possibility of establishing welfare infrastructures. It is important to develop the processing industry, the supply networks and to ease the lack of capital it is also important to involve foreign capital. Developing agriculture plays an important role in transforming the structure of the economy. Since the conditions of the region, its traditions and long-term competitive advantages are favorable, thus can represent a greater ratio in the economy than the EU average. The modernisation of the agricultural sector can be promoted by supporting marketing, quality agricultural development and producer-retail cooperation. It is also highly important to promote development in transportation and informatics infrastructure and human resources.
In the future – based on the strength of the region – it is necessary to achieve such a consistent regional development politics, which by validating the principles of regional politics, serves the interest of utilizing regional development supports most efficiently and prevents the irreversible underdevelopment of the region and promotes fast development. -
Effect of facility location on haulage efficiency
204-209Views:91In the 21st century, every economic sector must use the chances of evolution, technical and technological acquisitions, due to the level of competitiveness on the market. Such a sector as agriculture, where technology and the ideology of production are changing and adapting very slow to global expectations, by taking maximum advantage of opportunities, is a more central question. The greatest problems of Hungarian agriculture’s competitiveness are that this sector is very weak in capital and production costs make producers uncompetitive on the market. We can remedy this situation by using sources logically, purposefully and system approached. Logistics can provide the most useful assistance in such efforts.
In agricultural logistics, there is a great deal of uncovered territory. The aim is to transplant methods that are working correctly in other sectors into the agricultural sector, while maintaining development. One of the most important areas is transport logistics and material movement. Methods of analyzing and planning transportation and material movement found in professional literature do not take into account the specific needs of agricultural production. My aim is to examine the effect of facility location in the running of an enterprise. Through the results, I make suggestions for modifying the currently used logistic method and suggest further methods of examination. The effect of agro-specific needs must be examined in carrying out innovations and making logistical planning methods reliable. -
Investment funding programs on dairy farms in Hajdú-Bihar County
11-16Views:181The dairy farming sector needs constant modernization of its buildings, machines and technology in order to maintain its competitiveness and productivity. For the greater scale investments, these companies try to apply for state funds in addition to their own financial sources. Therefore, the investment support system plays a great role by improving the competitiveness and modernity of these farms. In the last 10 years, 7 funding programs were available for dairy farms. In this research, 25 dairy farms were interviewed in Hajdú-Bihar County. The examined farms cover more than 50% of the milk production in Hajdú-Bihar County. The survey questions focused on the investment funding program use of farms between 2007 and 2017 and renewable energy investments including all programs. The results show how many tenders were submitted, how many were successfully evaluated and completed. All farms had at least two successfully evaluated projects. A correlation was found between completed projects by farm size and completed projects. The connection of the modernity index of dairy farms and the completed projects was also shown.
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Analyzing the Competitiveness of Balmazujvaros on the Basis of a SWOT-Analysis, Emphasizing Tourism
262-271Views:113My study examined the competitiveness of Balmazujvaros, in regard to tourism. The town is situated in the Northern Great Plain region, in Hajdu-Bihar county, 22 km from Debrecen, together with Egyek, Hortobagy and Tiszacsege joined the statistical subregion of Balmazujvaros. Comparing with the neighbouring settlements, it has similar geographical features and posesses thermal water that was determined to be medicinal, which is a feature of the region. Balmazujvaros as a typical country town as it has a dominant agricultural character. It gained town status in 1989. Part of the town is situated in the National Park of Hortobagy.
The first part of my study is to determine the number of rival settlements from the viewpoint of tourism. I will analyze the results of a questionnaire given to tourists in Balmazujvaros between June 15 August 31 2003, and introduce the primary results. The SWOT analysis will show the primary and secondary information and the examination of the results.
If we take into account the strengths, weaknesses, opportunities and threats of this town, we can make the following conclusion: tourism is an opportunity with a well-developed infrastructure, a third sector, subsidies and improved local interest. A sound and well-defined marketing strategy is essential for Balmazujvaros, in order to overwhelm its strong rivals -
Regional Development Differences in Hungary and the Northern-Great Plain Region
62-71Views:176The most important endeavour of European Union’s regional policy is to moderate disparities. An emphasised strategic objective of member states, based on the principle of solidarity, fairness and justice, is to develop regions and almost forty percent of the common budget is devoted to achieving this objective.
Hungary, as a full EU member state, will get a new chance for underdeveloped regions, especially for the Eastern-Hungarian as well as the North Hungarian and North Plain Region.
The differences in development among the regions are significantly influenced by the economic characteristics of the specific region, quality and quantity of human resources, accessability of the region and other factors influencing local quality of life beside natural conditions.
The new spatial structure was formed by change of regime, processes of the nineties, primarily the economic renewal based on foreign capital investments and the crisis phenomena in parallel with these. The economic, political and social consequences of the transformation significantly changed spatial structure and increased disparities. New disparities formed which were further aggravated as a consequence due to the formation of the eastern-western slope and local crisis zones. As a result of the outstanding development of the capital, the long term differentiation of regional development differences can also be detected when examining the regional distribution of Hungarian gross domestic product. The collapse of heavy industry and agricultural mass production based on the eastern markets primarily affected the north-east counties in the eastern part of the country.
Strengthening regional competitiveness is of key importance for the region, which requires the application of consistent development policy. The most important is economic development which, if it operates well, also infers the possibility of establishing welfare infrastructures. Drawing in external sources to ease the significant lack of capital is important for the processing industry and the development of supplier networks. Agricultural development also plays an important role in transforming economic structure, since the characteristics of the region, its traditions and long term competitive advantages are favourable, therefore it is going to represent a higher ratio within the economy than the EU average. The modernisation of the agricultural sector can be promoted by supporting market accession, quality agricultural production and stimulating producer-retailer cooperation. The development of transportation and informatics infrastructure as well as human resource development plays a significantly important role in the development of the region.
In conclusion, the implementation of such a consistent regional development policy is required in the future, based on the strengths of the region, that serves the most efficient utilisation of regional development funds through the implementation of regional policy principles and prevents the irreversible decay of the region while promoting rapid development. -
Concentration and Horizontal Integration in Milk Production
60-66Views:102Agriculture in Hungary was characterised by the duality of large-scale farms (co-ops and state farms) and small-scale private enterprises until the beginning of the 1990s. Due to the privatisation and transformation of co-ops farm structure has significantly changed. The transformation of the structure is not considered to be a completed process. Level of concentration and integration on private farms are rising, new co-operation forms are appearing and new types of enterprises and producers’ groups are being formed.
Concentration and integration have great importance in the dairy sector among agricultural enterprises. In recent years, milk production in the European Union has been characterised by concentration, leading to greater competitiveness. Today, most dairy producers belong to different kinds of producers’ organisations as concentrated demand may only be competitive by meeting concentrated supply. In Hungary, the problems of production have been the fragmentation and decrease of the average farm size while, at the same time, concentration has occurred in the processing sector. Establishing producers’ groups may be one of the solutions for improving competitiveness production. -
The ain impacts of the Lisbon Strategy on tobacco growing
80-87Views:81The Lisbon Strategy of the EU promises a more competitive Europe with more and better workplaces, in addition to sustainability.
Tobacco production is one of the most controversial industries of the agricultural sphere in the European Union. This crop is a „leader” of the world’s economic growth, a promoter of globalisation and has been an economic channel between America and Europe for more than 500 years. It is also a motor of technical development, due to its inducing effect on profitability and work efficiency. The tax competition of the states and the increase in consumption have become such a self-inducing system in which the increase of production created an increasing number of jobs, especially in tobacco growing, where the replacement of manual labour was much slower than the increase of the demand for raw material. The fact that smoking is becoming general should be handled as a social demand, though its health risks cannot be denied. However, the extreme objection to smoking cannot be accepted, especially not when it evokes social strains and concludes that people smoke because of tobacco production, al though the real situation is the opposite: People smoke in Europe, so the tobacco should be grown here, as is in our economic interest.
There is a contradiction between the strategic objectives and the roles of the industry which should be ceased urgently. Al thong aim is the creation of jobs, stopping tobacco growing could result in unexpected agro-social disadvantages. Rejection of the industry’s sustainability questions the realization of the keystones of the strategy. Competitiveness, sustainability and social cohesion should be implemented as a unit of the strategy also in tobacco growing. -
Complex problem analysis of the Hungarian milk product chain
43-47Views:103Hungarian dairy sector went through significant changes in past two decades. The most significant changes were caused by our accession to the European Union. In Hungary milk production remarkably declined after EU accession. The size of our dairy herd has been practically reducing since the political transformation, but increasing yields per cow could compensate it in some way and for some time. However, in recent years, increasing yield per cow came to a stop and in parallel, the number of cows declined further and faster. Low prices, high production costs and tightening quality requirements ousted several producers from the market in past years. Feeding cost represents the highest rate in cost structure of production, but animal health expenditures and various losses are also significant. There are undeniably competitive disadvantages in the level of organisation and labour productivity; however competitiveness already depends on cost effectiveness in the medium run. In Hungary concentration of the dairies is relatively strong in spite of the relative high number of corporations. The dairies compete with each other and with the export market for the raw material and the better exploitation of their capacities. Applied technology of the Hungarian dairies lags behind the Western-European competitors’; in addition they have handicaps in efficiency and product innovation. Presence of chain of stores being dominant in sale of milk products does also not favour in all respects to the position of the dairies. The aforementioned retail chains are namely consumer-centric, engage in price follower conduct and weaken the position of the dairies with their private label products. As a result of increasing import of milk and milk products Hungary became a net importer in recent years. Today, disposable income still essentially determines the consumption habits of price-sensitive consumers. Loyalty for Hungarian products is not typical, consumers are open for import products being preferred by retail chains. In addition Hungarian milk and milk product consumption is about half of the Union average and it is far behind the level being necessary for healthy eating. In Hungary lack of competitiveness and vertical integration relationships and backwardness are revealing among the dairy farmers and the dairies, while chain of stores are in unprecedented “monopolistic situation”; the whole sector can be characterised by defencelessness.
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Regional strategies serving competitiveness
97-101Views:135In my study titled “Regional strategies serving competitiveness”, I examine the regional strategies whose development and implementation in practice play a determinant role in the medium- and long run economic and social development of the given region. The study primarily focuses on the infrastructural basic investments that are essential from the aspect of creating a knowledge-based information society. The study also deals with a stakeholder analysis used by investors in order to focus on the quality of state administration and institution system.
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Evaluation of Dairy Farms’ Competitiveness
256-260Views:41The volume of milk production in the European Union is limited by quotas, thus dairy farms in Hungary can expand their production mostly at the others’ expenses after joining. In this way issues of arrangements arise relating to defining competitiveness of the already existing farms and not to farming new ones. The aims of my research is to find answers for dairy farms in the County of Hajdu-Bihar, depending on their arrangement (herd size, keeping technology, arable for forage production, handling manure, mechanisation, technician state of equipment) what possibilities they will have among the EU farmers.
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Will there be a horticultural triangle (cluster)? Thoughts about the reconstruction of the Hungarian horticulture between two European regions
21-27Views:178The authors of this study seek the answer to the question how to develop, in the first decade or decades of the 21st century, the university-level
horticultural scientific training, the horticultural innovation and the scientific co-operation between companies and universities in Debrecen and
in the North Great Plain Region and – in a wider sense – in Hungary to a standard being competitive even in European terms. With the synthesis
of the prospects of past, present and future, they drew the following conclusions. The reconstruction of agriculture, horticulture and food industry
is a part of reforming Hungary's countryside. Horticulture, producing high added value, will be able to decisively contribute to the plan whereas
the value presently produced in an agriculturally cultivated area of 1,000 euros/hectare can reach 2,000 to 3,000 euros in the next two decades.
A necessary and indispensable precondition to achieving this is the strengthening of the innovation output of the Hungarian horticultural sector.
Despite the numerous technical criticisms formulated in connection with the serious problems of Hungarian agricultural and horticultural
scientific innovation, no progress has been made in this field for the past one and a half decade. The scientific research of this topic hardly
continued or did not continue at all, the up-to-date surveys and in-depth analyses were missing. The objective, basic principles and tasks of the
Act CXXXIV of 2004 (TTI) enacted concerning research-development and technological innovation are clear and progressive. The co-operation
between the National Research Technology Office and the Hungarian Academy of Sciences, the setting up of the Innovation Fund are heartening
opportunities. These – along with the new Higher Education Bill to be passed – may as well be suitable for restarting the Hungarian agricultural
and horticultural scientific innovation. In our opinion, this requires a new, well-considered national agricultural programme, which can be
conceived in the framework of the "Ferenc Entz National Horticultural Plan" proposed by us for horticulture. In the most eastern Hungarian
university knowledge centre, at the University of Debrecen, the continuing of the horticultural scientific innovation strategy started in the last
decade may be the focal point and generator of the development of the so-called "Hungarian Horticultural Triangle”, or "Hungarian
Horticultural Cluster". This region comprises the Northern and Southern Great Plain Regions and the area between the Danube and Tisza
Rivers. Here, about 70 to 75% of the total Hungarian horticultural commodity stock is produced. The objective of the HORT-INNOTECH
DEBRECEN programme planned in 2004 by the University of Debrecen, Centre of Agricultural Science is to establish the horticultural scientific
research-development and technological innovation structure and knowledge base of the Hungarian Horticultural Triangle / Hungarian
Horticultural Cluster. In harmony with this, the objectives are to bring about competitive, new horticultural products, to improve the conditions
of utilising them, to enhance the competitiveness of enterprises based on technological innovation, to make use of the research-development and
innovation opportunities available in the regions in an efficient manner, to as full extent as possible, to encourage the creation of places of
employment producing high added value in the field of horticulture, to improve the technical skills of those employed in horticultural researchdevelopment and to promote their enhanced recognition by the society. -
The R&D and innovation activity of agribusiness enterprises in Hajdú-Bihar County
67-71Views:137Economic changes have significantly accelarated in the 21th century. In this turbulent market environment enterprises are forced to adapt continously as they must be flexible in order to meet changing market needs. To achieve flexibility companies require innovation. The economic relevance of innovations is significant in every market sector and agriculture is no exception. Re-dynamizing agricultural innovations is a possibility for the outburst of the Hungarian agriculture. Agricultural enterprises have to face competitors as well and they should give priority to efficiency, sustainability and competitiveness in order to preserve their position in BOTH global and domestic markets. This study examines the innovation potential of the agricultural enterprises in the North Great Plain region based on own databases and case studies.
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Agriculture production and rural development
129-133Views:108In a national economy, the considerable part of its available territory consists of the so called rural area which is mainly used by the agricultural sector. In our days, the rural areas are characterized by the loss of their economic, administrative etc. functions. The agricultural sector is able to utilize the rural areas, though other economic activities play important role as well. To evaluate the agricultural sector in terms of the agribusiness, it is clear that the situation of the agricultural sector is not only decisive for the rural areas, but also for the whole national economy, and therefore, it is part of its balanced development.
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Connections between land usage, property structure and agricultural enterprises in Hungary
31-34Views:94The last decade of Hungarian agriculture was marked and changes which affected all parts of agricultural production. This process resulted in a new ownership and organisation structure. The paper presents the effects of the changes in ownership on land use and the various enterprise forms and intends to outline the main tendencies. In general, it can be stated that the role of agriculture in GDP production and employment is decreasing in Hungary, but according to concurrent opinions of experts, agriculture still has and will have a major role in income production and the ease of social tensions in rural areas in the future as well. Hungary’s accession to the European Union provides new chances and new prospects for Hungarian agriculture and rural areas. Hungarian agriculture became a part of the internal market which includes about 450 million people. The safety of marketing became stronger, the rate of financial support is increasing and the income of growers will increase in the future. This process implies more obligations and the keeping of strict regulations. Competition inside the internal market is intensifying, competitiveness will be more important while the chances of development and investment of the growers and the feasibility of more effective land use are increasing. After the accession, integration into the directives formulated in the CAP and the packages of measures accepted in it is framework have growing importance.
These directives encourage farm-reallocation, namely the rational estate concentration. In general, it can be stated that rational estate concentration, and more effective land use as a consequence, will increase the efficiency of agricultural production. -
Need for measurement of the innovation at Hungarian SMEs
5-13Views:149Competitiveness studies have shown that innovation could be breakout point for some economies, regions and enterprises. Knowledge acquisition, creation and exploitation of the knowledge base have been an essential element for economic growth. These knowledge-based economic processes come together with the innovation. Measurement of innovation by indicators has been playing a really emphatic role in making strategy whether it is national or EU planning.
Enterprises have always tried to measure and quantify their innovation activities mostly through the results of their economic process. Companies have generally considered their products as part of the innovation. That was the reason that in most cases they only and exclusively focused on the finished product. Some of them was able to realize that details of the production process must be taken into account in order to the whole innovation activity could be measured.
That is why I find it important to examine of what the innovativity of enterprises is made of, and in which way they can be measured.
In addition I was looking for the answer to the questions that how much the measuring method allows you to compare enterprises for further examination.The development of measurement methods is an essential moment of the article. As it is compiled for me the most important aspect of innovation, according to the statistical document, the Oslo manual guides you through the measurement methods and operational processes They play a very important role in proving my hypothesis. Overall, our country’s innovation results show those areas where we have high endowments, and also those where are the weaknesses.
Of course, systems and tools defined by the governing authorities of national economies will have the main role but the activity of the European Union will be the frame in the end, because without subsidies from the EU budget, national budget wouldn’t be enough to implement these aims.
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Effect of using antioxidants as feed additives in the diet of dairy cows on the vitamin E and lycopene content of milk
69-72Views:141In 2007, the aim of an Ányos Jedlik program and call for tenders was to support application-oriented, strategic research and development projects, which can increase the competitiveness of the Hungarian economy. In the framework of our project, we intended to examine whether non-protected antioxidants – in this case: vitamin E and lycopene – used as feed-additives can increase the antioxidant content of milk. The milk with an
increased level of vitamin E and lycopene content can be used for producing functional foods which will represent competitive products on the current market of milk products. Our results show that the use of vitamin E as feed-additive can significantly increase the amount of vitamin E in the milk. The use of lycopene as feedadditive also gave good results. At the beginning of the experiment, the lycopene content of the milk was below the detection limit, while in the post-feeding milk samples the lycopene became detectable. Based on our results, we are of the opinion that further experiments and analyses are needed regarding the quality of food of animal origin and animal health. -
Vegetable production based on waste heat in closed greenhouses considering economic usage and competitiveness of the European Union
41-44Views:129The study investigates two professional fields; the questions of vegetable production in greenhouses, the necessary steam supply and heat regulations. The actuality of this investigation is provided by the planning of a combined cycle power plant of 2400 MW in Hungary. According to the plans the steam developing by generating electricity in the power plant can be used to intensify the vegetable production. In my current study I present the experiences and results gathered as member of the research and development team led by Mr. Dr. Sinórós-Szabó.
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Farms in the system of European supportpolicy
79-83Views:89Common Agricultural Policy (CAP) has been having a great past, it is over numerous direction and structure changes in the last half century. After the Treaty of Rome, the harmonization of he agricultural structure and the production of Member States has been launched, during which the economic changes in the world and in Europe were continuously being kept track of. By using common experience, they strived to develop an agricultural sector that supplies the Member States of the Community with food, while the competitiveness and living circumstances of family farms are being improved. The general directions outlined in Stresa in 1958 were significantly redrawn owing to the transformed market conditions and EU accessions. The subsidization of family farms and the improvement of their profitability are having a stressed importance nowadays, too. Our country, as the fully qualified member of the European Union tries to meet its obligations undertaken in the accession treaty and therefore to develop an agricultural sector carrying out diversified agricultural production with a healthy age structure. The aim of the study is to specifically overview the issue of common agricultural policy by stressing the main development points and to introduce the Hungarian conditions of family farms. Besides, there will be an evaluation of the research works examining the income conditions of family farms in the North Great Plain region.
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Social justice as a factor in socio-economic preconditions effective process of economic transformation Ukraine
63-64Views:133The article deals with social justice as the main factor of social and economic prerequisites for effective transformation of the economy of Ukraine and basic ways of overcoming injustice in the social sphere of life.
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Wine market trends in the EU and Hungary
101-105Views:118Traditions of the Hungarian grape and wine sector go back centuries. However, although this sector is proud of its rich traditions, it has gone through several shocks. Having joined the EU, Hungary has become a part of the integrated internal market. The commercial obstacles and difficulties among EU-members and Hungary have officially been removed. At the same time, within the Common Agricultural Policy, the wine market has been organised at community level by EU-members. There is no possibility for the sector to access any kind of direct supports from the Hungarian budget, unless such activity is definitely allowed by community directions or unless Hungary were authorized in the framework of a supplementary procedure. After joining the EU, the customs-protection - which aim was to protect the EU-market against the third countries - reduced, so wine producers from overseas countries emerged with their competitive wine prices in the home market and also became competitors of Hungarian wine producers who have been working under low technically equipped conditions. In order to increase the competitiveness of Hungarian wines, it is essential to improve the machinery of producers and to improve the equipment of winecellars. Finally, it is also vital that Hungarian wine producers develop a well-constructed marketing policy.