Discover Bavaria : Current issues

Since the end of the war, Bavaria has established itself as one of Germany's most prosperous and influential Länder. Its economy, based on a few large industrial groups and a host of small and medium-sized businesses, is in good health. The same stability can be found at political level, as Bavaria has been governed by the same party since 1957! The conservative CSU party consistently comes out on top in Landtag elections and, for over 60 years, Bavaria's Minister-President has come from its ranks. At the last regional elections in 2018, the Greens (Die Grünen) made a historic breakthrough, winning 38 seats and becoming the leading opposition party in the Landtag, putting ecological issues at the heart of the debate. Bavaria also relies on tourism to diversify its economy, and is now Germany's top tourist destination.

Landtag elections 2018

In the 2013 Landtag (Bavarian parliament) elections, the CSU won 47.7% of the vote, once again securing a parliamentary majority. In the October 2018 regional elections, the CSU once again came out on top, but lost its absolute majority with its worst score since 1954. These elections were above all marked by the rout of the Social Democrats, who failed to exceed 10% of the vote and won just 22 seats in the Landtag. The Greens came in second, with 17.5% of the vote. This was a historic victory for the large Green party, which caused the CSU to suffer a serious loss of points. Nevertheless, the CSU remains the largest parliamentary group, with 37.5% of the vote and 85 seats in the Landtag. It will be able to govern with the support of the center-right Freie Wähler party, and has proposed Markus Söder as Minister President.

Markus Söder, a Nuremberg-born politician and currently Bavaria's No. 1, had been tipped to succeed Angela Merkel as Federal Chancellor. However, his CDU partner (the CSU and CDU always field a joint candidate in federal elections), Armin Laschet, was nominated instead as the Christian-Conservative candidate for the Bundestag elections in September 2021. Armin Laschet was extremely unpopular, and his campaign ended in a historic failure for the Union (CDU-CSU). The polls clearly showed that Markus Söder could have led the Christian-Conservatives to victory: a Bavarian in the Chancellery, that's for another time.

While the conservatives of the CSU set the pace at state level, some Bavarian cities are "red": Munich's mayor's office has been in the hands of the SPD (Social Democrats) since the 1980s. Nuremberg, also traditionally red, switched to the CSU in 2020.

The next regional elections in Bavaria will be held in autumn 2023.

Economy and innovation

Within half a century of the Second World War, Bavaria's economy shifted away from agriculture to become a modern, technologically advanced industrial state with a dynamic service sector and industry. Thanks to its central location in Europe, Bavaria became a hub for trade with the Mediterranean basin and southeastern Europe. In 1945, Bavaria was still predominantly rural, landlocked and isolated. Today, it stands out not only as a major economic hub, but also as the cradle of new technological discoveries. Bavaria is renowned in every field: specialized high-tech centers in Martinsried (biotechnology) and Augsburg (environmental technology), innovation centers in Erlangen, Munich and Würzburg, as well as the Mittelfranken technology park in Nuremberg... Bavaria boasts no fewer than 493 genetic engineering facilities, most of which (68%) are located in and around Munich. On a national scale, Bavaria is the center of electronics, radio, television, telecommunications, electrical engineering, aeronautics and astronautics. Munich is home to over 99,000 companies in a wide variety of sectors, with a predominance of service companies (media, insurance, banking, etc.) and industry (Siemens and BMW in particular). Second only to Frankfurt in terms of air traffic, Munich is also connected to all major German cities and several European capitals. Small and medium-sized businesses account for over 99% of Bavaria's establishments. They form the backbone of the state's economy. Indeed, companies with fewer than 500 employees provide around 77% of all jobs and generate almost 45% of sales. Medium-sized companies in industry, trade, commerce, tourism, services and the liberal professions provide jobs and apprenticeships that are generally close to where people live, as well as good career prospects.

Quality of life linked to economic image

When you visit Bavaria, you're often struck by the quality of life, the cleanliness of the environment, the tranquility of its villages and towns, and the natural phlegm of its people. Bavaria's quiet strength is not unrelated to its excellent economic health. In 2021, Bavaria will be the state with the lowest unemployment rate: at 3.6%, it is well below the federal average of 5.9%. Its GDP of 625 billion euros (2019 figures) places it among the richest states in the European Union (higher than 22 European countries). Germany's highest salaries are paid in the Bavarian town of Ingolstadt. In the city of Audi - for full-time work - the average monthly salary is €4,635. For Bavaria as a whole, the average is around €3,345, above the federal average of €3,209. The automotive sector is a major job creator, as is the high-tech sector (microelectronics, pharmaceuticals, energy technology, nanotechnology, etc.). Salary disparities are quite striking when compared with the eastern Länder, which are all at the bottom of the average salary ranking. The lowest average wage is to be found to the east, in the city of Görlitz, on the border with Poland. With a per capita purchasing power of around 26,000 euros in 2020, Bavaria takes the top spot, relegating Hamburg, the leader in previous years, to second place.

Sectors of activity

Industry. In Bavaria, competitive sectors such as biotechnology, genetic engineering and the development of new materials coexist with a phenomenal number of small and medium-sized industrial and craft enterprises. Industry is therefore Bavaria's leading economic sector. Around 21% of the working population is employed in the industrial sector.

Crafts and skilled trades. Crafts and skilled trades account for around 9% of the state's gross domestic product and generate over 900,000 jobs. It is an economic stabilizer in terms of employment and vocational training, since around 30% of apprentices are trained here.

Commerce. Trade, transport, gastronomy and information and communication technologies account for 20% of gross domestic product. Around 26% of the working population is employed in these sectors.

Agriculture. In terms of agriculture, Bavaria remains the leading agricultural state in the Federal Republic of Germany, and one of Europe's leading regions. The agricultural sector accounts for around 2% of jobs, but only 1% of GDP. On a national scale, Bavaria accounts for 27.5% of milk production and 16.3% of grain production. Today, however, more than half of all cultivated land is farmed by people for whom agriculture is not their main occupation.

Place du tourisme

Bavaria is the country's most popular tourist destination, attracting a quarter of all travelers to Germany. The total number of overnight stays recorded each year is around 90 million. The Bavarian government has always made international tourism one of its major development challenges. The result: today, one in four tourists comes from abroad. The main tourists are traditionally Dutch, followed by Americans, Austrians, Italians, Swiss, British and Japanese. On a national scale, the Land is one of the most popular destinations for German families. Tourism alone accounts for 560,000 jobs and 31 billion euros in sales (including short-term stays and business travel). Tourism is one of the world's fastest-growing sectors. To develop this sector and make it even more attractive, the government has invested no less than 344.6 million euros, which it has redistributed to local authorities in the form of grants and loans. This money has been used to install public tourism facilities. The Upper Bavarian district (Munich and the Lake District) alone attracts 45.5% of the tourists who visit Bavaria. Bavaria's most visited site, Neuschwanstein Castle, which attracted 1.5 million tourists in 2012 alone, is located in a different district. The Swabian district (Schwaben), with 14.1% of visitors, is in second place. The other regions, however, are by no means lacking in attractions, and are banking on advertising to bring in new audiences.

The independence question

In Bavaria, there is a small fringe of the population with independence aspirations. According to surveys, almost 32% of Bavarians would be in favor (or rather in favor) of an independent Bavaria within the Federal Republic. This is a much lower proportion than in other European regions such as Catalonia (where the figure hovers around 45-50%, depending on the polling institute), but much higher than in Saxony (21%) or Hesse (10%) by comparison. Since 1946, a political party - the Bayernpartei - has been promoting this project in regional elections. Among the arguments put forward by this party is the desire to free itself from the Länderfinanzaussgleich, a mechanism for distributing wealth between Germany's 16 Länder. In 2019, Bavaria paid €6.7 billion into the state coffers. But these payments are not a one-way street, as Bavaria also benefits from federal investments in its territory: the German state helps finance roads and infrastructure projects, for example. However, the Bayernpartei is attracting fewer and fewer votes: the party hasn't had an elected representative in the Bavarian Landtag since the 1960s, and only garners 1-2% of the vote. If Bavaria were to become independent, it would be the 8th most populous country in the European Union, behind the Netherlands but ahead of Belgium, Greece and Portugal. Its economy would also rank in the top 10 of the European Union: depending on the study, Bavaria's GDP would rank 6th or 7th, ahead of Poland. By international comparison, Bavaria's GDP would be higher than that of G20 member Argentina. That said, it's highly unlikely that Bavaria would become independent. Bavaria and the Federal Republic have close ties and their economies are intertwined. The CSU, the party that has held the reins of power in Bavaria for over 60 years, is opposed to independence. In a 1976 election campaign, it put up the slogan: Deutschland braucht Bayern. Bayern braucht Deutschland ("Germany needs Bavaria. Bavaria needs Germany").

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