The economy of Turkey has in recent years developed steadily, and it is one of the reasons for Hungary to foster balanced economic relations with the country, Minister for National Economy Mihály Varga said, following negotiations with Deputy Prime Minister Veysi Kaynak.
Both governments have prioritized the development of bilateral relations between the two countries, he added. Existing agreements, for example on the avoidance of double taxation and the mutual promotion and protection of investments, are also serving a balanced economic relation.
In the Balkans, Turkey has been one of Hungary’s major trade partners, the Minister pointed out. When PM Viktor Orbán visited Turkey in 2013 to meet with Turkey’s President Recep Tayyip Erdoğan, the two politicians have set a medium-term goal, aiming to increase the annual bilateral trade volume to HUF 5bn. As the current volume is some HUF 3bn, there is still much to do, Mihály Varga stressed. There are several unexploited cooperation options in various fields, first of all within the agricultural sector, especially with regard to livestock transport. Within the energy industry, Mihály Varga pointed out electricity projects, biomass-production and Hungary’s expertise in nuclear power generation. However, several other partnerships can be formed in the field of water purification, wastewater management and flood control.
The stability of the Hungarian economy has been a major factor in attracting capital, Mihály Varga said. Some 600 Turkish enterprises have been operating in Hungary, with several thousands of employees. There are also Hungarian companies in Turkey, the majority of which are active in IT projects, in the manufacturing of dairy products, in the printing industry and in waste water management. As the Deputy Prime Minister emphasised, Hungarian enterprises enjoy special attention in Turkey, and they are being assisted through the pro-business environment and allowances.
At the meeting, options of tourism cooperation have also been discussed, Mihály Varga said. The increasing number of flights between the two countries is boosting tourism traffic in both countries, and Turkish development projects in Hungary are fuelling the growth of the domestic tourism sector. Following the renovation of the Tomb of Gül Baba, the next joint project is planned to be the restoration of Király Bath in Budapest.
(Ministry for National Economy)
