Last updated in April 2009
Basis
Hungary set down an important marker for future bilateral relations on 10 September 1989 when it opened up its border with Austria to refugees from the former GDR, thus making a special contribution towards German reunification and the political transformation in Central and Eastern Europe. In 2009, celebrations commemorating those events will play a key role in German-Hungarian relations. The Agreement between the Federal Republic of Germany and the Republic of Hungary on Friendly Cooperation and Partnership in Europe concluded in 1992 is one of the principal cornerstones of today’s bilateral relations.
At European and multilateral level, cooperation between Germany and Hungary was expanded and intensified by the Europe Agreement of 1994 between the European Union and Hungary, Hungary’s accession to NATO in March 1999 and to the EU on 1 May 2004. In addition to this, the two countries work together closely in numerous international organizations such as the United Nations, the OSCE or the Budapest-based Danube Commission.
Bilateral political relations are based on trust and free of problems, as is demonstrated by the large number of visits at all levels, e.g. the official visit to Germany by the Hungarian President Sólyom in February 2006, Federal President Horst Köhler’s attendance of the celebrations marking the 50th anniversary of the 1956 revolution and the visit to Budapest by Federal Chancellor Angela Merkel in 2007. Numerous high-level visits are planned in 2009 as part of the festivities commemorating the 20th anniversary of the opening of the border.
Political relations – German-Hungarian Forum
The German-Hungarian Forum, which has been held on an annual basis alternately in Germany and Hungary since 1990 (most recently in Berlin in 2008), is the most important regular meeting of experts from the world of politics, the business community and the cultural scene. The German Bundestag's International Parliamentary Scholarship Programme, in which more than 80 young Hungarians have taken part since 1990, also fosters closer cooperation.
German minority
In the 2001 census, 62,000 Hungarian citizens described themselves as members of the German minority, while 87,000 stated they belonged to the ethnic German cultural community. Ethnic Germans thus constitute Hungary’s second-largest minority. Under the Hungarian Minority Act, passed in 1993 and amended in 2005, the "Landesselbstverwaltung der Ungarndeutschen" (Self-Administration of Ethnic Germans in Hungary - LdU) represents the political interests of the German minority.
Economic relations
Economic relations between Germany and Hungary are exceptionally close and intensive. Germany is by far Hungary's most important trading partner, ahead of Austria, Russia, Italy and France. In 2006, 32 per cent of Hungarian imports came from Germany, while some 34 per cent of Hungarian exports went to Germany. In the first six months of 2007, bilateral trade was worth EUR 17.9 billion, a 17.7 per cent increase compared with the same period in 2006. Again in the first six months of 2007, German imports from Hungary, at EUR 9.1 billion, were worth more than German exports to Hungary (EUR 8.7 billion). Germany is one of the few countries with which Hungary has a trade balance surplus.
Germany is also the leading foreign investor in Hungary: at the end of 2005, German companies accounted for some 28 per cent of all foreign direct investments in Hungary with aggregate investments of approx. EUR 13 billion. In 2005 alone, Germany invested or reinvested some EUR 1.2 billion in Hungary. There are more than 7,000 companies in Hungary set up partially or wholly with German capital, which employ a total workforce of approx. 300,000. By contrast, there is room for expanding Hungarian investments in Germany (2005: EUR 74 million).
One of the most important business links is the German-Hungarian Chamber of Commerce and Industry in Budapest. It represents the interests of more than 900 member companies from Germany and Hungary. One of its main tasks is to advise potential German investors before they enter the market. The overwhelming majority (75 per cent) of German investors have been very happy with their involvement in Hungary and would invest there again today, as emerged from an economic survey conducted by the Chamber. An important role in disseminating information on business opportunities for German companies in Hungary is also played by the local branch of the German Office for Foreign Trade (bfai) in Budapest, which provides German companies with up-to-date information on the Hungarian market.
Science, research and environmental protection
The Joint Declaration on the Further Development and Intensification of Cooperation in Scientific Research and Technological Development, which was signed in September 2004, forms the basis of evolving German-Hungarian relations in science and research.
Major cooperation projects have been launched between the Hungarian Academy of Sciences (MTA) and the German Research Foundation (DFG), the Hungarian Scientific Research Fund (OTKA) and the DFG, and between the Hungarian Bay Zoltán Foundation for Applied Research and the Fraunhofer Society (FhG). In addition, there are currently more than 200 partnership agreements between universities and other higher education institutions on both sides.
The EU’s Seventh Framework Programme for Research and Technological Development offers new instruments for implementing shared objectives and developing the European Research Area, thus also extending the opportunities for – and forms of – cooperation in major multinational projects.
Environmental protection
German-Hungarian cooperation in the field of environmental protection and nature conservation is wide-ranging and successful. Numerous joint projects on the basis of the relevant 1993 intergovernmental agreement between the two countries, as well as several Phare twinning projects, in which long-term German experts did valuable work together with their Hungarian counterparts in establishing institutions for Hungary’s EU accession and in adopting EU environmental standards, are proof of this. Cooperation can be further intensified, for example in the fields of wastewater treatment/sanitation, waste management, regenerative energy and flood prevention.
Cultural and education exchange
Germany and Hungary are linked by close and cooperative relations in culture and education. The Goethe Institute (GI), the German Academic Exchange Service (DAAD), the Alexander von Humboldt Foundation, the Central Agency for Schools Abroad (ZfA), the Institute for Foreign Cultural Relations (ifa) and numerous other institutions are engaged in cooperation. The focus is on the promotion of the German language, academic and school exchanges as well as cultural events.
Promotion of the German language
The German language plays an important role in Hungary in the education, social and economic sectors. The Goethe Institute in Budapest offers a comprehensive range of courses and close cooperation with schools in Hungary.
Across the country, 35 Hungarian schools are involved in the Schools: Partners for the Future Initiative (PASCH). Seconded German guest teachers teach at many of the schools participating in PASCH. In addition, there are numerous programmes designed to promote the German language among the ethnic German minority.
In Budapest, there has been a German School (the Thomas Mann Grammar School) since 1992. It is an international school that is also attended by many Hungarian pupils. It is also possible to complete the German Abitur and the Hungarian university entrance examination at the Ungarndeutsches Bildungszentrum (Education Centre for Ethnic Germans in Hungary) in Baja under the terms of a special agreement.
Academic exchange
Every year, thousands of Hungarians spend time in Germany on study and research exchanges. The German Academic Exchange Service (DAAD) and the Robert Bosch Foundation support this exchange by means of scholarships. The DAAD has currently seconded eight German-speaking academic teachers to Hungarian universities and other higher education institutions. In 2008, the Alexander von Humboldt Foundation awarded ten research scholarships to Hungarian scientists and academics. In September 2008, the first German-Hungarian Higher Education Days were held in Budapest.
This year, the Andrássy Gyula German-Language University of Budapest (AUB) is celebrating its seventh anniversary. Each year, the Andrássy University offers up to 150 elite students German-language teaching in political science and law, international relations, economics and cultural studies. The AUB thus plays an important role in German foreign cultural and education policy in Hungary and has become a “lighthouse” project in German-Hungarian relations.
Andrássy Gyula German-Language University of Budapest (AUB)
Cultural events
A wide range of cultural events is offered by the Goethe Institute in Budapest, which celebrated its 20th anniversary in 2008. The centrepiece of the festivities was a light installation by the artist Mischa Kuball that was on show for several weeks.
In 2010, Pécs/Fünfkirchen will be the joint European Capital of Culture along with Istanbul and Essen (Ruhr District). The focus will be on the dialogue between East and West, especially as a bridge to the cultural diversity of the Balkans. A wide range of cultural projects in 2010 will raise Hungary’s profile in North Rhine-Westphalia, and vice versa.
The Institute for Foreign Cultural Relations (ifa) supports exhibitions by German artists in Hungary and has currently seconded two cultural managers to Budapest and Szekszárd.
The German-Hungarian film agreement on relations in the audiovisual sector entered into force on 6 December 2008.
Military and police cooperation
There is also a lively exchange between the armies and security authorities of the two countries. Military cooperation has so far focused on helping the Hungarian army to integrate into the Euro-Atlantic security structures. The objective here is to enhance NATO interoperability and provide support in meeting NATO standards – particularly in the fields of air defence, command/control/communications, basic and further training.
In cooperation between the security authorities, Germany regards the Hungarian police force as reliable partners. The close cooperation at international and European level, e.g. in the framework of Interpol, Europol and Frontex, is complemented by targeted bilateral cooperation, which has yielded successful results in joint action against international and organized criminal groups, in preventing illegal migration and fighting human-smuggling gangs.
