Minister Nagy said Germany had been in recession for two years and the economy was expected to continue contracting this year, too.
Márton Nagy, National Economy Minister, said Germany’s success is important for Hungary.
Looking ahead to German elections, Minister Nagy pointed to indications that the German government and its policies would “finally come to its senses”, taking heed of the economy and putting the economy first. He said that Germany had been in recession for two years and the economy was expected to continue contracting this year, too.
Speaking at the year opener of the German-Hungarian Chamber of Industry and Commerce (DUIHK) late Thursday, Minister Nagy said fiscal conservatism was among the faults of the German government’s economic policy, adding that such a policy had no place during the green and digital transitions. He said that Germany was now buying power from France as a result of decisions to shut down its nuclear power plants and cut some energy sourced from fossil fuel.
Germany’s economic leadership has “no idea” what to do when it comes to electromobility, he said, adding that the German government’s decision in December to pull support for EVs had caused a downturn in the segment across Europe.
Nagy said Germany’s economic policy needed to address energy policy and support for electromobility. It also needs to enter the tax competition, he added, noting the European Union’s lack of a response to the United States’ decision to withdraw from the agreement on the global minimum corporate tax.
Hungary’s exports to Germany are equivalent to 20pc of GDP, the highest rate in the EU, Nagy said. More than half of those exports are vehicles, batteries and electronic products, he added.
Andras Savos, the chamber’s head, said around 2,400 German-owned companies operated in Hungary, employing over 220,000 people.
