The Schengen Facility, established on the basis of Article 35 of the Treaty of Accession of the European Union supports adjustment to Schengen requirements. New member states, and consequently Hungary as well, receive a considerable rate of funding from the Funds. These resources enable the earliest possible application of the Schengen acquis, with special regard to external border control.

The Schengen Fund provides a financial contribution of over a total of 165 million Euros for Hungary’s full-scope Schengen membership. Commitment of funds is performed from 1 May 2004 to 31 December 2006.

Hungary began to prepare for the receipt of funding granted from the Schengen Fund in spring 2003. The government adopted Government Decree No. 2303/2003 (XII.9.) on institutional preparation required for use of the Schengen Fund, as well as Government Decree No. 197/2004 (V.26.) on defining the rules of procedure governing the financial planning, implementation and control of the use of Schengen Fund resources, pursuant to the adoption of which we set up the Hungarian Schengen Fund institution system.

The so-called Indicative Programme was developed by 2004; the National Development Office, as competent authority, was responsible for undertaking this task. The Indicative Programme defines the Hungarian Schengen Fund institution system, as well as objectives, tasks and anticipated expenditures of Hungarian developments envisaged for implementation during the three-year period. The final documentation was submitted to the European Commission in May 2004. Beyond compiling the three-year schedule, further commitments relate to sending the updated Indicative Plan for the given year to the Commission every year.   

The Commission approves a financing memorandum each year on the basis of the documents submitted, pursuant to which Hungary will be able to use its share of the funding framework for the given year.