OREANDA-NEWS. “Hungarian-Bavarian relations are developing well and Bavaria has a significant influence on the performance of the Hungarian economy”, Minister of Foreign Affairs and Trade Péter Szijjártó declared on Thursday at a press conference in Budapest following the 19th session of the Hungarian-Bavarian Joint Economic Committee.

Mr. Szijjártó told the press that Bavaria is responsible for one third of Hungary’s total trade volume with Germany: 36 percent of Hungarian exports to Germany go to Bavaria, one third of German investment in Hungary comes from there and 72 percent of these investments are realised within the field of the automobile industry, which represents the backbone of the Hungarian economy.

Bavarian Minister of European Affairs and International Relations Beate Merk told reporters that strong and intensive economic relations had developed between Hungary and Bavaria, and Bavarian companies were targeting Hungary as a favourite investment destination where they not only manufacture, but also perform research and development.

Mr. Szijjártó stressed: “The most important economic, trade and investment partner to Hungary is Germany, and especially Bavaria; the Government has three Bavarian strategic partners – Audi, Siemens and Knorr-Bremse – and these companies play an important role in the Hungarian economy both jointly and individually”.

“The global economy has reached a technological turning point; digitalisation is placing the performance of the global economy into a new dimension”, he said. Mr. Szijjártó also declared that the growth of the Hungarian economy must also be moved into a new dimension, and the basis for this is provided by cooperation with Bavaria in view of the fact that Bavarian companies are among the frontrunners in the global industrial and technological revolution and in switching to new technology.

According to Mr. Szijjártó, investments in Hungary on the part of Bavarian enterprises and the inclusion of Hungarian companies in their supply chains is bringing the most modern technology closer and enabling the Hungarian economy to be among the first to switch to new industrial technology.

The Minister of Foreign Affairs and Trade pointed out that the Hungarian investment and regulatory environment is also helping Bavarian investors, and reminded the press that from 1 January companies that contribute to workforce mobility or who expend their research & development and innovation activities will receive additional tax benefits, while maintaining the workforce will be sufficient to receive an investment grant from the budget if companies switch to modern technology.