Bavaria

V

Economy

The economy of Bavaria has developed rapidly since World War II. The extensive development of hydroelectric power in the foothills of the Bavarian Alps has been a key factor in the state overcoming its lack of natural resources. Bavaria is an important centre in the manufacture of electronics, machinery, textiles, chemicals, automobiles, clothing, and ceramics. The state has been very successful in attracting and developing high technology industries including electronics, aerospace, mechanical engineering, precision engineering, measurement, optics, and instrumentation. Leading businesses include Siemens, BMW, Audi, MAN, and EADS Deutschland. Bavaria is an important centre for processing industries such as leather goods, food processing, toy making, and printing and publishing.

The contribution of agriculture to Bavaria’s economy has declined since World War II, but still accounts for approximately one tenth of the economy. The main crops include rye, wheat, barley, potatoes, sugar beet, vegetables, hay, hops, and vineyards.

The service sector now dominates the Bavarian economy: two thirds of all business and nine out of ten new business start-ups are in service industries. In recent years there has been a huge growth in consultancy, data processing, information technology, engineering, and architecture. Bavaria’s success in developing industries such as information technology, telecommunications, genetic engineering, and biomaterials has been underpinned by its research and development infrastructure. Fourteen institutes and departments of the Max Planck Society and nine departments of the Fraunhofer Institute for the Promotion of Applied Research are located in Bavaria.

The financial services industry is very important to the Bavarian economy. The Hypo Vereinsbank and Bayerische Landesbank Girozentrale, both among the 50 largest banks in the world, are based in Bavaria. Nearly 30 per cent of all insurance premiums paid in Germany are collected by Bavarian companies, including Allianz AG based in Munich. There are a number of trade fair centres in Bavaria; the most important are in Munich and Nuremberg.

The tourist industry plays a major part in the state’s economy, especially in the Bavarian Alps, where a large proportion of the hotel beds in the state are concentrated. The transport system in Bavaria is well developed. The road network is extensive and is due to be expanded by the provision of motorway access to Saxony and Thuringia. Apart from the major international airports at Munich and Nuremberg, there are 21 commercial airports in the state. The Main River is navigable as far as Bamberg. The Rhine-Main-Danube Canal will link the North Sea with the Black Sea.

VI

Government

The constitution for the state of Bavaria was drawn up in 1946. Administratively, Bavaria is divided into 7 regions, 71 districts, 25 district towns, and 2,031 district municipalities. The state government consists of a minister-president, responsible to an elected assembly, and a cabinet of 12 ministers. The state parliament (Bayerischer Landtag) has 180 members elected by proportional representation to serve for a five-year term.

The state government is formed by the Christian Social Union (CSU). In the elections of September 2003 the CSU gained 124 seats (an overall majority); the Social Democratic Party of Germany (SPD) 41; and the Green Party 15. Bavaria has 18 representatives in the Bundesrat (the federal council of the German parliament) and was represented by 81 seats in the Bundestag (the lower house of parliament) in the 2002 federal elections.

VII

History

Previously settled by Celts, Bavaria was conquered by the Romans in the 1st century bc and resettled by Germanic peoples in the 5th and 6th centuries. One of these groups, the Baiovarii, gave its name to the region. It became a possession of Charlemagne in 787 and was ruled by the Carolingian dynasty until the 10th century. In 1180 it passed to the Bavarian family of Wittelsbach. During the Reformation Bavaria remained staunchly Roman Catholic and was consequently ravaged by Protestant forces during the Thirty Years' War (1618-1648). The fertile soil and strategic position of the region made it a highly prized possession, and it was frequently invaded by foreign armies in the 17th and 18th centuries, such as during the War of the Austrian Succession and the War of the Spanish Succession.

During the Napoleonic Wars (1799-1815), Bavaria was made a kingdom by Napoleon. In the 19th century, Bavaria tended to support Austria against Prussia. After being defeated with Austria in the Seven Weeks' War (1866), however, Bavaria sided with Prussia and in 1871 joined the new German Empire. After World War I, which ended the 738-year reign of the Wittelsbach dynasty, a Communist-led group belonging to the Independent Socialist party seized power, but troops of the central government assisted by Bavarian volunteers crushed the rebellion. In the 1920s Bavaria was able to retain a large degree of autonomy, which it lost in the 1930s with the rise of Adolf Hitler. Munich became the headquarters of the National Socialist (Nazi) party during the Hitler regime. In 1933 the first Nazi concentration camp was built at Dachau, near Munich. The infamous Nazi rallies, and later the war crimes trials, took place in Nuremberg.

After World War II Bavaria was included in the United States Zone of Occupation. A new constitution was drawn up in 1946, and in 1949 Bavaria became a constituent state of West Germany. In 1990, West and East Germany united and became the Federal Republic of Germany.