We celebrate Hungary’s return to Europe and to our relationship as well – Bavaria's Söder says

It has been more than a decade since a Bavarian state premier last visited Hungary, so it is of particular importance that political ties between the two sides have been reestablished, Péter Magyar said on Thursday at a press conference held after his meeting with Markus Söder in Budapest. With regard to economic ties, the Hungarian Prime Minister noted that among Germany’s federal states, Bavaria is Hungary’s strongest and most important trading partner, with direct investments totaling 7.5 billion euros and at least 140 Bavarian companies employing 57,000 people in Hungary. Magyar specifically highlighted Audi, BMW, and Knorr-Bremse.

He noted that those employed by Bavarian companies in Hungary rarely complain. The two leaders also discussed education and touched on the fields of artificial intelligence, research and innovation, as well as the defense industry and pharmaceutical research. “These could serve as a breakthrough, alongside the automotive industry, which is currently facing many challenges and problems. That does not mean, however, that the automotive industry should not be supported (…)” said Péter Magyar, noting that Bavaria, Hungary, and the V4 countries share similar positions in many areas.

“I have invited the Minister-President’s party, the CSU, to Hungary; we would be delighted to host them here next year. A very good relationship has developed between the Hungarian government and members of the Bavarian government,” —explained Magyar, who had also extended a special invitation to Söder to participate in the commemoration of the 70th anniversary of the 1956 Revolution on October 23, and in turn received an invitation to Bavaria.

Markus Söder pointed out that the relationship between Hungary and Bavaria used to be very good for a long time, which is precisely why they found the “ice age” of recent years particularly painful. “But now we celebrate Hungary’s return to Europe and to our relationship as well.”

Söder noted that the changes planned in Hungary are not only important for Bavaria but also for Europe, and they are paying close attention to them.

“We would like to establish a joint governmental committee in order to launch a strategic dialogue in the field of research and development and would love to see a strengthening of ties in the field of science—for example, through continued support for the Andrássy University, which has faced some worrying challenges in recent years (…), and we would like to see further cooperation in the defense industry, in pharmaceutical research, as well as in the space industry and in aviation technology,”

Söder said. He also noted that they discussed several European issues, including the subject of internal combustion engines.

When asked about what kind of challenge former foreign minister Péter Szijjártó’s move to working for BYD could pose, Söder replied that it is important to recognize that China represents a major challenge for the European car market, adding that “We won’t be able to overcome this with protectionism.” It should not be overcome with punitive tariffs, but rather through innovation. Finally, Söder said, “He’s probably making more money this way than if he had switched to another field.”

Péter Magyar added that while Szijjártó’s joining BYD may raise questions within Hungarian domestic politics, “we’d all be happy if his involvement were the biggest problem for the European auto industry.” According to Magyar, although this is a negligible factor, he wishes it were not the case.

In response to another question, Magyar said that Bavaria and Hungary should not perceive each other as competitors in the automotive industry. “Over the past thirty years, the world underwent a major shift with regard to Europe and China; one must acknowledge this,” Magyar said, adding that Bavaria and Hungary should thus mutually regard each other as an opportunity.

In response to a question from MTI, speaking about German companies in general, Péter Magyar said that “there are already new investments and developmental projects in the pipeline” and said that specific details would be available shortly.

The Hungarian Prime Minister also announced at the press conference that it is likely that all the units of the Paks Nuclear Power Plant will need to be gradually shut down due to the Danube’s record-low water level. He said that “as things stand now, it appears that as early as today—or perhaps more likely tomorrow—the Paks Nuclear Power Plant will be shut down completely, which represents a 2,000-megawatt loss in output—a very large percentage of the Hungarian consumption—though this can still be covered by imports, as we have 3,600–3,800 megawatts of import capacity available (…)", he explained.