The finance and economy ministers have signed cooperation agreements with their German counterparts.
Trade between Israel and Germany is around 8 billion dollars per year. The agreements are likely to advance the fields of technological innovation, in which Israel has an advantage. The Chief Economist Division will be responsible for relations with the German Treasury.
Finance Minister Moshe Kahlon and German Vice Chancellor and Finance Minister Olaf Schultz met yesterday in Jerusalem and signed a joint declaration that includes the establishment of a financial dialogue mechanism between the two parties to promote and strengthen economic and financial cooperation between the two countries.
“The new mechanism we are putting in place will pave the way for new economic opportunities between us and the Germans, which will contribute to the prosperity of both countries,” said Finance Minister Kahlon. He added that “the relations between Israel and Germany are developing and this is of economic and strategic importance.”
Mr. Schultz also expressed that he is “happy about the tightening cooperation between the two countries, a new step in the excellent relationship between the German and Israeli Finance Ministries. The dialogue between the two ministries will enhance our professionalism and help us face upcoming economic challenges.”
Exchange of forecasts and information
As part of the cooperation, the parties will exchange macroeconomic and financial forecasts and maintain a regular exchange of information based on the economic needs of the governments.
At the same time, it was agreed that cooperation between the ministries in the field of cyber finance would be concluded and a joint Fintech agreement was signed, similar to the agreement signed between Israel and Switzerland last year. The Chief Economist of the Ministry of Finance will be responsible for coordinating cooperation with the corresponding party in the German Ministry of Finance.
Mutual exchanges between Israel and Germany significantly increased in 2017, reaching 7.8 billion dollars, an increase of 1.2 billion dollars. The main export industries of Israel to Germany are optical equipment, chemicals, and plastic products. The main Israeli import industries from Germany are machinery, transport equipment, and chemicals.
Exports to Germany increased by 13%
In the first half of 2018, Israeli exports to Germany increased by 13% compared to the same period last year, where they reached 937 million NIS.
The German Minister of Economy, Peter Altmeyer, who accompanied the Chancellor, signed an agreement with Israeli Economy Minister Eli Cohen, similar to his colleague from the Ministry of Finance, to encourage cooperation between the two countries.
The agreement was signed, focusing on the fields of clean technologies, automotive automation, strengthening joint activities in research and development, digital health, and other areas.
At the end of the meeting, the Minister of Economy and Industry, Eli Cohen, stated that “Germany is an important trading partner and a close friend of Israel.”
Economic relations with Germany are extensive and include investments from major German companies in Israel.
The main investors are Siemens, active in the railway sector in Israel, and Volkswagen, which is heavily investing in Israeli taxi services GETT and Continental, which acquired Argus Cyber Security, which develops cybersecurity solutions for vehicles.
In addition, many German giants operate R&D centers in Israel in fields such as communications, life sciences, and automotive, including giants operating in Israel – Mark, Deutsche Telekom, Volkswagen, Bosch, and Daimler.
