The details of the programme were announced by Zsuzsa Hegedűs, Chief Advisor to the Prime Minister, who has coordinated similar programmes on civil initiative for years and has helped some fifteen thousand families to stand on their own feet. By drawing on these experiences, the Government has decided to open up the way towards the establishment of social cooperatives.

As the first step of the programme, the Government will create tender opportunities for 800 small localities situated in the country’s 47 most disadvantaged regions which will enable them to operate social cooperatives, to create jobs for local residents and to produce foodstuffs for their own needs.

The programme primarily targets small localities in extreme poverty with a population of less than 5,000 that are most affected by unemployment. The objective the Government wishes to achieve is that these localities should not lead a meagre life on social benefits but should be given an opportunity to move towards a better life, to stand on their own feet and to provide jobs and the conditions necessary for daily life for their inhabitants.

The newly launched social cooperatives would be eligible for HUF 5 million in aid; applications may be submitted as of 1 May. Membership will be voluntary. HUF 5 billion in total is available for the implementation of the programme.

In smaller localities, bidders will be required to involve all families with multiple disadvantages in their cooperatives. According to plans, it would be possible to proceed to the second level of the system after 1 to 2 years where bidders may apply for HUF 15 million, while applicants at the third level would be eligible for HUF 50 million, at which stage the joint activities could be pursued within the framework of smaller business operations."

Source: kormany.hu