General data Population : 10.2 million (1996) Total Area : 93,033 Density : 110 inhabitants per km2 Neighbouring countries : Austria, Slovakia, Ukraine, Romania, F. R. of Yugoslavia, Croatia, Slovenia Ethnic profile : Hungarians (95 %), Gypsies, German and Slovak minorities LanguagesOfficial : Hungarian ; Other: none Religion : Roman Catholic (65 %), Reformed (20%), Lutherans (5%), other confessions (5%) Life expectancy Men : 64 Women : 73 (1994) GDP/capita (nominal) : 273 USD (1995) Source: Hungarian Statistical Office GDP/capita (ppp) : 6 300 ECU (1995) Source: EUROSTAT Currency : Forint (1 ECU = 200 HUF) Agreements The first document regulating mutual economic relations between Hungary and the EC was the Trade and Cooperation Agreement signed on 23/9/88, which is now obsolete. Diplomatic relations between the EU and Hungary were first established in 1990. The present contractual relationship between the Republic of Hungary and the European Union is regulated by the Europe Agreement which was signed on 16 December 1991 and entered into force on 1 February 1994 (O.J. L347/93). In the meantime, the trade related part of this Agreement, which aims at creating a free trade area, was put into force on 1 March 1992 under the form of an Interim Agreement. The transition period of this European Agreement : maximum 10 years , divided in 2 stages of 5 years each. General review at the end of the first stage but not for trade matters. The European Union opened its delegation in Budapest on 20 November 1990. Assistance and financial support Global Assistance to Hungary : Over the period 1990-1996, G24 Assistance to Eastern Europe amounted to ECU 86 billion, of which 15% (ECU 12.6 billion) went to Hungary. International Monetary Fund (IMF) : Hungary was the first Comecon-country to get accession to the IMF on May 6, 1982. Hungary signed with the IMF last March for a total of 387 million USD. International Bank for Reconstruction and Development (IBRD - World Bank) : Since 1982 3.5 bn USD. European Bank for Reconstruction and Development (EBRD) : ECU 1.075 million. European Investment Bank (EIB) : ECU 740 million. International Finance Cooperation (IFC): 290 million USD. Phare 1990 - 1995 : ECU 582,8 million. Hungary also benefited from the Phare multi-country facility, which had an overall allocation of ECU 491 million. Phare cumulative commitments 1990-1995, by year and sector (ECU million) Sector 1990-1991 1992 1993 1994 1995 TOTAL Administration and Public Institutions 8.0 14.5 1.5 0.0 3.0 27.0 Agricultural 33.0 5.0 30.5 0.0 10.0 78.5 restructuring Education, Training 29.5 16.0 26.0 24.0 16.0 111.5 and Research Environment and 37.0 10.0 0.0 15.5 12.0 74.5 Nuclear Safety Financial sector 19.0 0.0 0.0 0.0 0.0 0.0 Infrastructure (Energy, Transport, 8.3 0.0 0.0 29.0 36.0 73.3 Telecommunication) Private sector, Restructuring, 71.5 11.0 31.0 16.5 6.0 136.0 Privatisation Integrated Regional 0.0 10.0 0.0 0.0 5.0 15.0 Measures Social Development and Employment 3.0 26.0 0.0 0.0 2.0 31.0 Public Health 0.0 0.0 10.0 0.0 0.0 10.0 Other (Multidisciplinary, 0.0 5.0 0.0 0.0 2.0 7.0 General TA etc) TOTAL 209.3 97.5 99.0 85.0 92.0 582.8 Phare 1996 - 1999 : The Phare Multiannual Indicative Programme for Hungary amounts to ECU 425 million. European Integration : ECU 28 million Education and Training : ECU 45 million Reform of public Finance : ECU 25 million Economic restructuring : ECU 142 million Infrastructure : ECU 150 million EU programmes : ECU 30 million Flexible non sector TA : ECU 5 million Total : ECU 425 million Trade EU / Hungary Trade flows between EU and Hungary have been increasing constantly since 1989. Hungary is the third most important EU's partner in Central Europe after Poland and the Czech Republic. Since German unification , Germany has become the most important trading partner for Hungary. In the first half of 1996, Germany represented 23% of total foreign trade, followed by Austria 8% and Russia 7.5%. EU trade with Hungary 1989 -1995 ECU 1,000 million _____________________________________________ EU export EU import Balance _____________________________________________ 1989 3.0 2.6 +0.4 1990 2.9 2.9 0.0 1991 3.5 3.6 -0.1 1992 4.1 4.0 +0.1 1993 4.9 3.9 +1.0 1994 6.2 5.0 +1.2 1995/EU 126.7 6.5 +0.2 1995/EU 158.7 7.6 +1.1 Most important EU exports in 1995 EU 15 EU 12 __________________________________________________________ Sector of Common customs ECU % ECU % Tariffs million million __________________________________________________________ 1. Machinery & electrical 2803 32 2077 31 2. Transport equipment 926 11 745 11 3. Chemical products 863 10 713 11 4. Textiles 832 10 716 11 5. Base metals & articles 684 8 516 8 6. Plastic products 493 6 380 6 7. Agriculture,incl.processed 440 5 361 5 ________________________________________________________ SUBTOTAL 7041 81 5508 82 ________________________________________________________ ALL SECTORS 8707 100 6742 100 Most important EU imports in 1995 EU 15 EU 12 _________________________________________________________ Sector by section of ECU % ECU % Common Customs Tariffs million million _________________________________________________________ 1. Machinery & Electrical 2327 31 2070 32 2. Agriculture,incl processed 940 12 793 12 3. Base metals & articles 926 12 798 12 4. Textiles 900 12 782 12 5. Transport equipment 409 5 384 6 6. Plastics products 405 5 342 5 7. Chemical products 339 4 287 4 __________________________________________________________ SUBTOTAL 6246 82 5456 84 __________________________________________________________ ALL SECTORS 7582 100 6495 100 __________________________________________________________ 1. Transport Equip. 940 12 793 12 2. Chemical products 926 12 798 12 3. Textiles 900 12 782 12 4. Base metals & articles 409 5 384 6 5. Plastics products 405 5 342 5 6. Agriculture incl.proces. 339 4 287 4 ___________________________________________________________ SUBTOTAL 6246 82 5456 84 ___________________________________________________________ ALL SECTORS 7582 100 6495 100 * * *
