Administrative capacity and EU funds management systems performance: the cases of Hungary and Slovakia

We analyse European Union (EU) funds management systems performance using the cases of Hungary and Slovakia - two Central European countries with a common history and background, yet different concepts of EU funds management. We explore the role of administrative capacity and institutional stability as key factors affecting performance in both countries. We also provide evidence for the relationship between administrative capacity and non-compliance, measured by financial corrections, with a model robust to different programming periods and model specifications. Using the resulting baseline model applicable to all EU countries, we assess EU funds management system performance in Hungary and Slovakia.