Hungarian-Bavarian inter-government committee holds meeting in Budapest

Budapest, October 6, 2016 (MTI) – Economic ties between Hungary and Bavaria are developing well and Bavaria has a major impact on Hungary’s economic performance, Foreign Minister Péter Szijjártó said at the 19th meeting of the Hungarian-Bavarian Intergovernmental Joint Committee in Budapest on Thursday.

A third of Hungary-Germany trade is with Bavaria, which takes a 36 percent share of Hungarian exports to Germany and a produces a third of Germany’s investments in Hungary, Szijjártó noted. The car industry, the backbone of Hungary’s economy, accounts for 72 percent of the latter, he said.

Beate Merk, Minister of European Affairs and Regional Relationships at the Bavarian Prime Minister’s office, said they are looking forward to Hungarian Prime Minister Viktor Orbán’s visit in a few days’ time.

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Szijjártó said Germany is Hungary’s most important economic, trade and investment partner. The Hungarian government has three strategic partners from Bavaria: Audi, Siemens and Knorr-Bremse, and each of these companies plays a serious role in Hungary’s economy, he added.

Bavarian investments in Hungary and the involvement of Hungarian companies as suppliers result in state-of-the-art technology being brought to Hungary, enabling it to be among the first to change over to new industrial technologies.

He added that Hungary’s investment and legislative environment also helps Bavarian investments. From January, firms that promote labour mobility and expand their research, development and innovation activities will be eligible for tax allowances, Szijjarto added.