Bavaria ’s economic policy is based on a four-pronged supply-side oriented strategy.
Goals
      1. Provide cost reductions to enhance industry ’s global competitiveness
      2. Promote steady growth and employment gains by strengthening the dynamics of the market economy.The state is therefore privatizing its financial holdings and other interests,eliminating unnecessary bureaucracy,accelerating planning and approval processes and introducing deregulation with mid-sized companies in mind.
      3. Modernize and build up systematically the infrastructure.
      4. Champion a policy of New Products —New Plants —New Markets for business sectors confronting economic structural changes by making support of investments and innovations available as well as facilitating start-ups —policies designed to benefit especially small and mid-sized enterprises developing their global markets.

      All regions are contributing now to the dynamic economic development of Bavaria. A target-oriented regional policy has helped the Free State redress the drawbacks of structurally underdeveloped rural regions and former borderline zone, ensuring for all regions access to general economic development.
Road network improvement, power supply and training of the workers were but few of the many steps undertaken by the State Government along these lines. Assistance to regional economies is an important element of the regional policy of the Free State. Encouragement of investments into the economic sector and its infrastructure did much for the opening of new jobs and for keeping up former employment in the economically underdeveloped peripheral regions. In addition to total investment of 13 billions euro into the economic sector, the 1990s witnessed 1 billion euro in subsidies and low-interest loans to the tune of 1.5 billions euro. These investments alone created 60 000 new and preserved the existing 300 000 or so jobs.       The 1.5 billions euro invested into economic infrastructure were supported by state subsidies of 0.5 billion euro and low-interest loans of 205 millions euro.
      Effective support of the regions shall have to continue in order to level as much as possible the conditions of life and work in all parts of Bavaria. The strongest affected regions by the greater amounts of aid to the new federal provinces, or by the difference in spending with respect to the Czech Republic, shall still need this support in the future.