Government Limits Business Ties with Siemens
Hungarian government ends cooperation with Siemens
The Hungarian government has announced that it will end its cooperation with Siemens, one of Germany’s largest companies. The reason behind this decision is related to the Paks nuclear power plant in Hungary, where the control system is being supplied by a German-French consortium. However, as this is now a dual-use technology from a legal point of view, the current European regulatory environment requires the relevant national export authority to authorize its civilian use. This has already been done in France, but not yet in Germany, where Siemens is the commissioned company.
The government is no longer counting on Siemens’ involvement in renewing the railway vehicle fleet. The minister of construction and transport, János Lázár, stated that “we are no longer friends with them,” adding that there are no plans in the future to buy Siemens vehicles.
Siemens Mobility Kft. and Siemens Mobility Austria GmbH had won the tender to procure 115 new electric locomotives. The plan was to use the Siemens Vectron locomotives to renew and expand the InterCity service in Hungary, with a framework agreement signed in April 2022, and delivery contracts expected to be signed by the end of 2022.
The minister has indicated that they will also review their cooperation with Siemens in the future. The issue of the expansion of the Paks nuclear power plant is the main cause of the hostile relationship between the two parties. The German government continues to block Siemens Energy’s delivery of the control system for the new reactor units at the Paks II nuclear power plant in Hungary. The French company Framatome, Siemens’ consortium partner, has already received approval.
Despite being an independent German giant, Siemens has made no effort to argue on behalf of the Paks export case with the German government. Instead, it seems to have quietly resigned itself to politically driven direct interference in German industry by foreign minister Annalena Baerbock, who is reportedly behind the continued obstruction.
