Tokyo, 22 November 2013

Japanese leaders are making efforts to gain a foothold in Eastern Europe. The prime ministers of Japan and Hungary have agreed to push more business deals in various industries. One of the areas that the two countries are considering for possible cooperation is nuclear energy.

The accident here in Japan even intensified this discussion in Europe. There are some countries who had previously considerable percentage of the total energy produce by nuclear, but now they try to stop the nuclear power stations. Hungary is not that kind of country. If the Europeans would like to compete at the world market with the products come from America and some other areas also, we have to produce cheaper energy for our economy.

He is looking to Japan for technological help, but there’s another reason Hungary is looking to Asia. The Easter-European nation is export driven. It’s most significant trade partner the European Union, and during the financial and credit crisis Hungary learned the hard way the dangers of depending to heavily on one region.

The export is important. If we look at the export figures, close to 75, almost 80 % of our export is going to the EU countries. It’s not good, I mean it’s good, but you know it means, you stand only on one leg. Which is very unstable. So therefore we have a clear cut strategy, opening to the east.

Just this June Orban and Abe met in Warsaw to strengthen their economic partnership. And on Orban’s current visit they made the goal official with a memorandum. And even though the EU is pursuing free trade agreements with Asian countries, Orban says it’s just as important for individual member states to pursue interest on their own. How is your economic policy agenda different from that of the EU?

Because the European Union is not a nation, it’s not a country. There are some areas which belong to the authority of the EU, like free trade agreements. But the European Union consists of nations, and nations run their own economic policies, so we can’t wait for Brussels or any other capital which is not Hungarian to do something good for Hungary instead of doing by themselves the Hungarians. So if You would like to have investments, better relationship, we have to do it bilateral bases.

Seeking energy relationship

Japan is trying to gain economic foothold in Central Europe, and one country in the region, Hungary is ready to talk. Prime Minister Viktor Orban has high hopes that Japan could help the Hungarian Economy. Orban attended a seminar in Tokyo with a group of business leaders. He called on Japanese executives to invest in his country.

Logistically and geographically Hungary is a key point of the European civilisation and the European business community.

Europe’s debt crisis added to Hungary’s economic troubles. 70% of its export go to other EU nations. So Orban feels the need to shift focus to Asia. Hungarian officials have a strong interest in Japanese technology. Orban met with Japan’s PM, Shinzo Abe, and the two agreed to keep on cooperation in energy field. Abe sees Hungary as an attractive market for infrastructure export. A key pillar in his growth strategy. Hungarian officials plan to build two more nuclear reactors.

One Hungarian company produces machinery used in nuclear power plans. It had close ties with manufacturer Siemens, but the German firm is ending its nuclear business as the country shifts away from atomic power. So the machinery maker is aiming to foster ties with Japanese businesses. They hope to partner with them and win contracts for Hungarian projects.

We have some products we’d like Japanese firms to see, and they have a lot to show us too. By combining our technologies we could build new parts for nuclear facilities (Attila Szitar-Csanadi, managing director Ganz).

Japanese firms are also looking to cooperate with Hungarian ones is the energy sector. Hungarian officials are mandated to double their renewable energy output. Hungary’s energy policy is a business opportunity. Hungarian officials set up a high target for renewable power generation. To achieve this goal they need to find the way to deal with the inconsistent output of wind powered facilities.

Hungarian and Japanese officials say deepening ties between energy businesses could benefit both sides. A deal reached in this sector could also lead to more cooperation in Central Europe and Asia.

(Prime Ministers Office)