Diplomacy & Trade 2019 May by Diplomacy&Trade

MAY 2019 HUF 1710

EUR 6

HUNGARY: 15 YEARS IN THE EU HUNGARY – ALONG WITH NINE OTHER COUNTRIES – JOINED THE EUROPEAN UNION IN 2004. WHILE NOT ALL EXPECTATIONS HAVE BEEN MET, SUPPORT FOR EU MEMBERSHIP IS STILL STRONG AMONG THE HUNGARIAN PEOPLE. SEE MORE on page 9

Diplomacy-n-Trade.ai 1 2017. 02. 27. 11:22:30

Ireland

country

FOCUS

As Hungary celebrates the 15th anniversary of its membership in the European Union, the Ambassador of Ireland, Pat Kelly recalls to Diplomacy&Trade’s Irish Focus that it was his country’s EU Presidency in 2004 that welcomed Hungary and nine other new member states to the Union. He also talks about issues of common stance and those of differences that the two countries hope to resolve through dialogue.

see articles on pages 10-17 CY

Challenges Driven by Growth CMY

The mission of the management company Budapest Airport is to make Ferenc Liszt International Airport it manages the most successful airport in Central and Eastern Europe in terms of passenger growth, service quality and operational efficiency. Kam Jandu, the Chief Commercial Officer of Budapest Airport elaborates to Diplomacy&Trade on how they will reach see interview on page 20 this noble goal.

01 cover.indd 1

5/9/19 10:59 AM

c c.

2 02 best of hirdetes.indd 2

F E B R U A R Y

2 0 1 5

D I P L O M A C Y

T R A D E

w w w . d t e u r o p e . c o m

5/9/19 11:02 AM

w w w . d t e u r o p e . c o m

03 duna.indd 3

D I P L O M A C Y

T R A D E

F E B R U A R Y

2 0 1 5

3 5/9/19 11:03 AM

contents 05 ON THE RECORD 06-07 COMPANY BRIEFS 08 ANALYSIS Brexit with new deadlines

09 EUROPEAN UNION 15 years of Hungarian EU membership Interview with Ambassador Pat Kelly; IHBC; Kingspan; PannoniaBio; Vistra; Irish-Hungarian cultural ties; McHale

PUBLISHER

AND DON’T FORGET

monthly in print - daily on the web

www.dteurope.com

18-19 CZECH REPUBLIC

Commercial and Economic Department at the Czech Embassy

PUBLISHER: Peter Freed EDITOR: Sándor Laczkó COPY EDITOR: Joyce Freed PHOTO EDITOR: Dávid Harangozó SALES & MARKETING DIRECTOR: Tamás Varga DISTRIBUTION MANAGER: Tibor Ocsenás ADMINISTRATION: Judit Ludányi ASSISTANT: Ágnes Rapaport

4 04-05 letter, contents, promo, on the record.indd 4

TELEPHONE [+36-70] 320-3051 | FAX [+36-1] 350-5660 E-MAIL editor@dteurope.com | ADVERTISING adsales@dteurope.com

pages 22-25

20 BUSINESS

Budapest Airport 21 WITTYLEAKS by the Ambassador of Mexico 22-25 AWARD CEREMONY Best of Budapest & Hungary Gala

26-27 SOCIETY 28-29 WHAT’S ON

Concerts, festivals, events and exhibitions in and out of Budapest

30 TOURISM Szentendre

31 GASTRONOMY

Nagygombos Winery

Next month, Diplomacy&Trade presents a special Focus section on Italian-Hungarian relations in recognition that 55 years ago the Italian representation office was promoted to the rank of an Embassy and Italy’s main national holiday, Republic Day, is held in June. In Europe, the second most important target country for Italian foreign trade is Hungary, an ideal location for Italian companies to reach destinations in East Central Europe. Economic relations have substantially developed recently, the annual volume of bilateral trade has reached EUR ten billion. The Italian government’s intention is to exceed even that by some 20% in the coming years. Business relations will be just one of the topics we discuss with Italian Ambassador Massimo Rustico, the Italian Chamber of Commerce and the Italian Institute.

Tamás Révész, Aurora, Budapest Airport, Zoltán Tuba, McHale, Kingspan, Mario Orsos, Annamária Fábián, Zsolt Venczel, Embassy of Mexico, Studio Brammer, koncertpromo.hu, Zsófia Pályi, Ash Newell, Milán Radisics, János Bődey, Tamás Végh, Live Nation, Can Stock Photo Inc., Marianna Sárközy, Hajósinas, Furmint Photo, Drkuktart, MTI Photos: Balázs Mohai, János Vajda, Noémi Bruzák, Zsolt Szigetváry, Zoltán Máthé

annual fee of EUR 72 in Hungary, or EUR 90 to all other destinations. SEND REQUESTS AND INQUIRIES TO DUAX KFT. H-1034 Budapest, Bécsi út 60.

page 30

ITALIAN FOCUS – COMING SOON

CONTRIBUTORS: Sándor Laczkó, Tamás Magyarics, Réka A. Francisck, David Nájera PHOTO CONTRIBUTORS: MTI-Balázs Szecsődi/Prime Minister's Press Office (Cover), Depositphotos.com, Ferenc Csárdás, DUIHK, Barnabás Molnár, Bence Máté,

NEWSSTAND PRICE: HUF 1,710 or EUR 6 - Subscriptions are a vailable for an

Szentendre – the town of living art

26th Best of Budapest & Hungary Award Gala

10-17 IRISH FOCUS

Peter Freed

COPIES ARE AVAILABLE AT SELECTED RELAY AND INMEDIO OUTLETS IN MAJOR HUNGARIAN CITIES.

page 18

We welcome inquires for advertising in this issue. PLEASE CALL TAMÁS VARGA FOR FURTHER INFORMATION +36 209350250 - tvarga@budapestweek.com M A Y

2 0 1 9

D I P L O M A C Y

T R A D E

DÁVID HARANGOZÓ, FERENC CSÁRDÁS, DEPOSITPHOTOS.COM

“15 years ago, Hungary returned to the community where – based on its culture, history and heritage – it always belonged.” These words by the Head of the European Commission's Representation in Hungary, Gábor Zupkó reflect the hopes Hungarians had when they overwhelmingly voted for the 2004 accession to the European Union. While the reality today is not quite what had been expected in living standards, wages, etc., support for the EU is still strong in this country. Our country focus features Irish-Hungarian relations following the publication of a new business registry on Irish companies in Hungary. Relations between Ireland and Hungary date back over half a millennium and they are still active today – be it business or even literary ties. We discuss political and economic issues, including Brexit, of course, with the Irish Ambassador to Hungary, Pat Kelly and the Irish Hungarian Business Circle. Apropos, Brexit. That is very much the topic of our international analysis this month with the conclusion that a mismanaged Brexit may even lead to the disintegration of the United Kingdom. Our Czech Focus continues from last month with presentations of more Czech companies and an introduction by the Head of Commercial and Economic Department of the Czech Embassy ahead of the Czech President’s visit to Hungary this month. Our business page features the latest developments at Budapest Airport and their plans to maintain their position as the leading airport of the region. The WittyLeaks column is authored by the Ambassador of Mexico for whom Budapest experiences confirm that life is a dream to live. The Best of Budapest & Hungary, our sister publication, held its annual award gala in April. The best performers of the Hungarian hospitality industry, as measured by a professional jury, an internet voting system and the company, are presented in this issue. The prestigious award ceremony was followed by a showcase of gastronomy where those who are normally serving were, for one night, the guests! The tourism section this month takes you to the lovely town of Szentendre, just north of Budapest – ‘a town of living art’. Also, learn how and why a winery in the Mátra region has re-designed its labels. Spring is in full bloom, so, enjoy the Hungarian outdoors, festivals and open air cafés!

Economic and Trade Section, Czech Embassy

photos by

letter from the publisher

w w w . d t e u r o p e . c o m

5/9/19 11:04 AM

on the record

GERMAN-HUNGARIAN CHAMBER PRESENTS 25TH ANNUAL BUSINESS SURVEY

The DUIHK Business Outlook report presents the economic situation and business expectations of German and other foreign investors, as well as investor opinions about the business environment. In this year's survey, released in April, a total of 232 CEOs participated. Key findings: - German companies operating in Hungary value the current business situation, but for this year, they expect a much more modest expansion than last year both for the national economy as a whole and for their own business. - According to this year's survey, corporate valuations of business and economic policy environment show a slight improvement on a number of issues.

MARCH OF THE LIVING BUDAPEST 2019 The international March of the Living held to remember the victims of the Holocaust is also organized in the Hungarian capital every year. In April this year, once again young people, the elderly, Jews and non-Jews gathered to demonstrate with their presence against all forms of exclusion and prejudice. This year, the event commemorated the life and work of Jane Haining, a Scot who worked at the Scottish Mission school in Budapest in the 1930s and 1940s and gave her life to help protect Jewish schoolgirls during World War II. The Scottish Secretary of the UK government, David Mundell led the march and spoke at the event. As quoted by the BBC, he said it was a "huge honor and a great privilege" to take on this role. He added that “an extraordinary, brave and selfless woman, Jane Haining sacrificed herself to protect Jewish schoolgirls," adding that “her unwavering devotion saw her lose her life in Auschwitz 75 years ago, aged just 47… She is a hero of which all of Scotland, Hungary and the world can be proud."

UPCOMING NATIONAL DAYS May

June

July

- More than two-thirds of executives interviewed still say that access to a skilled workforce is inadequate, which in turn puts pressure on labor costs. - Due to current developments, this year's survey also analyzed opinions on Brexit. As a result, almost 40% of companies saw (in February) that the United Kingdom's exit from the European Union would "rather" or "most likely" affect their own businesses, mainly due to revenue cuts, cost increases and disruptions in supply chains.

Poland

National day

Norway

National day

Argentina

National day

Jordan

Independence day

Georgia

National day

Italy

National day

Denmark

National day

Sweden

National day

Portugal

National day

Russia

National day

Philippines

National day

Iceland

National day

Luxembourg

National day

Slovenia

Independence day

Croatia

Independence day

Canada

National day

Belarus

National day

USA

Independence day

Algeria

Independence day

Venezuela

Independence day

Montenegro

National day

Egypt

National day

France

National day

Belgium

National day

Libya

National day

Peru

Independence day

photos by

BALÁZS MOHAI/MTI, DUIHK, BARNABÁS MOLNÁR, BENCE MÁTÉ, TAMÁS RÉVÉSZ

DIPLOMATS OF THE FUTURE SEEK SOLUTIONS FOR GLOBAL PROBLEMS The Eötvös József Secondary School held the Budapest International Model United Nations conference simulating the work of the UN for the ninth time between April 11 and 16. Through modelling the work of the global organization, more than 300 students from 15 countries search for answers to global challenges of the present and the future. The motto of this year’s conference was ‘Equal opportunities – shared responsibilities’. The aim of BIMUN is to facilitate the debate of high school students on a wide range of issues, from security to environment and agriculture, through the simulation of the work of specialized organs of the United Nations. The organizers say it is a great opportunity for the next generation to think, learn and talk about global problems. Furthermore, it is a fantastic occasion for them to make their voices heard, since the event’s resolutions created by the committees will be shared with the real United Nations. During the English-language conference, delegates, aged 14 to 19, represent the policies and interests of nations other than their own, through arguments of logic, rhetoric and emotions.

HUNGARIAN BANKING ASSOCIATION ANNIVERSARIES The Hungarian Banking Association celebrated the 30th anniversary of its establishment this April with a ceremonial program series. This anniversary date coincided with the 100th anniversary of the establishment of the Banking Association’s predecessor, the Association of Savings Banks and Banks (TÉBE). The program included the International Financial Leaders’ Forum, which was opened by Minister of Finance, Mihály Varga. The closing event of the program series was the Hungarian Banking Association’s General Meeting, where the leaders of the Banking Association issued a communiqué in which they expressed their appreciation to the banking leaders who founded the Hungarian Banking Association in 1989: “With the step they took, the Hungarian banking sector was able to reestablish its own advocacy group after forty years of forced suspension. In the past few decades, the Hungarian Banking Association became a well-known and definitive professional advocacy institution. Its activities cover the entire financial sphere and its domestic and international involvement has become indispensable in the field of advocacy, cooperation for economic development and the raising of financial awareness.” w w w . d t e u r o p e . c o m

04-05 letter, contents, promo, on the record.indd 5

D I P L O M A C Y

T R A D E

M A Y

2 0 1 9

HUNGARIAN PHOTOGRAPHER WINS WORLD PRESS PHOTO AWARD ‘Harvesting Frogs’ Legs’, taken by Hungarian photographer Bence Máté (pictured in the middle), won the 1st Prize in the Nature category of the 2019 World Press Photo contest. It depicts frogs with their legs severed and surrounded by frogspawn struggling to the surface, after being thrown back into the water in Covasna, Eastern Carpathians and Romania, in April. Frogs’ legs are frequently harvested for food in the spring, when males and females gather to mate and spawn. Legs are sometimes severed while the animal is still living. About USD 40 million worth are sold annually, with countries across the world participating in the trade. A small part of the population in the Carpathian Mountains make their living by collecting frogs’ legs in the wild and selling them.

5 5/9/19 11:04 AM

company briefs IFF BUSINESS SERVICES CENTER IN BUDAPEST

Work has now officially started at the new Budapest office of International Flavors & Fragrances (IFF) Group. The business services center (BSC) of the US company will support the operation of the Group through global financial services, reaching the targeted employee number of 100 by the end of this year. The company, headquartered in New York City, was founded in 1889, and its shares have been listed on the New York stock exchange since 1964. IFF mainly produces flavors and fragrances, used, among others, by the cosmetics industry and the food industry. The activities of IFF are organized to three main divisions: Scent dealing with fragrances, components, and ingredients; Taste producing flavors for beverages, sweets, and food; and Frutarom dealing with natural taste and cosmetics agents. The company has 97 production plants and 105 R&D centers in 37 countries globally, and supplies 39,000 customers with 13,000 employees over the world.

HUNGARY’S LARGEST SOLAR POWER PLANT OPENS

MOL GROUP ACQUIRES GERMAN PLASTIC WASTE PROCESSING FIRM

Hungary’s MOL Group has signed a salespurchase agreement to acquire Aurora, a recycled plastic compounder with production plants located nearby automotive manufacturing and plastics conversion clusters in Baden-Württemberg, Germany. Aurora is a medium-size German company, headquartered in Neuenstein, with a unique and lean closed loop concept assuming collection of postindustrial plastic waste, regrinding and compounding, and ultimately supplying the automotive industry and other industries. The company’s portfolio largely consists of engineering plastics and polypropylene recyclate-based compounds.

6 06 company briefs.indd 6

PEPCO, a company operating in Central and Eastern Europe distributing clothing and household items will start implementation on a greenfield investment of a 100,000-sqm distribution center in Gyál, just southeast of Budapest, in April 2019. The Poland-based company will create 400 new jobs in the first phase of this project worth EUR 85 million. PEPCO is one of Europe's fastest growing retail chains. Launched in Poland in 2004, PEPCO is one of Europe's fastest growing retail chains, employing 16,000 people. It currently operates over 1,600 stores located in the Czech Republic, Croatia, Estonia, Latvia, Lithuania, Hungary, Poland, Slovakia, Slovenia, Romania and Bulgaria. The number of the brand’s stores has now reached 140 in Hungary. The local subsidiary, Pepkor Hungary Ltd., realized net sales revenues amounting to HUF 36 billion in the 2017/2018 business year and the headcount of its employees is about 1,500 people. A report by the Hungarian Investment Promotion Agency (HIPA) says the new PEPCO Distribution Center will service the currently existing 140 PEPCO stores in Hungary, as well as 500+ stores in the Czech Republic, Slovakia, Romania and Bulgaria. The facility will be equipped with technologies such as twin-tray sorters, voice picking and AGV pallet trucks. Starting from the spring of 2020, 400 new jobs will be created and this number will be further extended to 1,000 people in the following two years.

IFF's global financial service center in Hungary started with about 50 employees, and this number will be increased by the end of 2019, to be over 100 people. In the company group's decision for a Hungarian investment, the strategic location that enables cooperation with both US and Asian time zones, and offers the availability of people speaking exotic languages also played an important role. There are currently about 110 business service centers operating in Hungary, employing approximately 50,000 persons belonging typically to Generation Y (born between 1980 and 1999) who have a college/university degree and speak foreign languages.

With this investment, MOL says it will be able to offer a wide range of high-quality polyamide, polypropylene and other recyclate-based compounds, complementing its existing portfolio of virgin

polypropylene and polyethylene. Leveraging on Aurora’s know how and loop logistic system, MOL will enable its customers to reach higher content of recycled material in their end products in an efficient way. According to MOL Group Executive Vice President of Downstream, Ferenc Horváth, “in line with our MOL 2030 strategy, we have reached yet another milestone on our transformational journey to become the leading chemical player in the CEE region. This partnership will enable us to grow and add value to our petrochemical business as well as to increase our footprint in the automotive supplier market. As an established polymer player, we plan to use the strength of our integrated business model, while keeping the flexibility of Aurora as an independent compounder. At the same time, Aurora’s operations profile complements our initiatives in the recycling sector and reaffirms our commitment to sustainability and circular economy.” M A Y

2 0 1 9

D I P L O M A C Y

T R A D E

JÁNOS VAJDA/MTI, NOÉMI BRUZÁK/MTI, AURORA, DEPOSITPHOTOS.COM

PEPCO TO CONSTRUCT REGIONAL DISTRIBUTION CENTER IN HUNGARY

photos by

The largest photovoltaic facility in the country, a solar power plant of 22.6 megawatts, was completed for the operator Mátra Power Plant (ME) Co. Ltd. in Bükkábrány, NE Hungary this April. The value of the investment is HUF 5.4 billion (nearly EUR 17 million). Following a record time of five months of construction, after the ground-breaking ceremony last September, the Bükkábrány photovoltaic power plant began its pilot operation in February, and it will reach maximum performance – similarly to other solar power plants – during the summer months, according to the Development and Strategic Director of the company, Zoltán Orosz. The investment project was carried out in a 33-hectare, re-cultivated area of a former reservoir by the Bükkábrány Photovoltaic Power Plant Ltd, 100% owned by ME. The main contractor was a consortium of SPIE Hungária Ltd. and the German Bejulo Gmbh. The investment was realized from the power plant’s own resources and from a credit provided by Gránit Bank Co. Ltd. The power plant consists of almost 64,000 fixed polycrystalline solar cells with a rated output of 355 watts each. The facility can supply about 10,000 households with electricity, with an annual output of 25 gigawatt hours. Commercial sales have already begun, and during the test period, the power plant supplied the company’s Bükkábrány mine, saving significant costs. The generated electricity is fed into the network of the electricity company ÉMÁSZ.The goal of the company is to maintain its market position with renewable energy developments, i.e., Mátra Power Plant (ME) Co. Ltd. will continue to account for one fifth of domestic production and 15% of the electricity consumed in Hungary, Zoltán Orosz added. Thanks to this solar power plant, carbon dioxide emissions can be reduced by about 25,000 tons.

w w w . d t e u r o p e . c o m

5/9/19 11:05 AM

c ompany briefs NEW PRODUCTION LINE AT TATABÁNYA GLASS FACTORY

The installation of a new production line has begun at the Japanese-owned AGC automotive glass factory in Tatabánya, west of Budapest, expanding the plant's capacity by nearly 20%. The value of the investment exceeds HUF 4 billion. According to Managing Director László Tisza-Kiss, side window glass will be made on the new line, but smaller rear windows and sunroofs can also be produced on this line’s equipment. Mass production is scheduled to begin in the second half of 2020. Forty employees, selected from the factory’s existing staff, will be required to operate the new production line. The process of automated packaging of finished car glass has already begun and within three years, the packaging should be done entirely by robots. Workers relieved of heavy physical work can do more added value in production. The 63,000-square-meter factory has been operating at maximum capacity for years, producing 17 million pieces of car glass, of which six million are equipped with various components. The new production line will manufacture 3-4 million additional pieces a year. The flexibility of production is enhanced by the fact that a storage base with a capacity of 7,500 tons has been set up by a logistics company in the immediate vicinity of the AGC flat glass manufacturer. The quality of the glass produced here is characterized by the fact that in 2018, customers complained about only 14 pieces out of one million, which puts the Hungarian subsidiary among the best within the AGC Group. 40% of the 17 million pieces of the car glass produced each year are delivered to Mercedes. Other major buyers include BMW, Volkswagen and the French PSA group. According to publicly available company reports, AGC Glass Hungary Ltd. currently employs 920 people, and the company has generated HUF 33 billion annually.

The Norwegian Pilot Flight Academy (PFA), in cooperation with the Norwegian Central European Aviation Cluster (CEAC), will establish its second airline pilot academy in Hungary with an investment of EUR 15 million. According to plans, the pilot training center at Hévíz-Balaton airport at Sármellék will be the first element of a four-stage development package by Norwegian investors, establishing 80 jobs requiring special knowledge (trainers and experts), and having a maximum training capacity of 300 cadets on full scale. Training of the first cadets is planned to start by November 2019. The professional partner for the project is a Norwegian pilot training company, Pilot Flight Academy (PFA). The company, founded in 2007, currently trains 300 students at two Norwegian campuses with approximately the same number of employees as planned in Hungary. The students are trained using four airplane simulators and 13 planes at the moment. PFA has chosen Hungary as the place for the second academy due to the country’s geographical location and its ideal meteorological circumstances. Before picking the Hévíz-Balaton airport, the Norwegian investor group inspected a number of other Hungarian aerodromes, but this was the only place where the required infrastructure and operational area is available. At the announcement, Stig Eyde, Chairman of Central European Aviaton Cluster, said that they see enormous potential at Hévíz-Balaton airport while the region is also a popular tourist destination. Frode Granlund (see pictured), Managing Director and Owner of Pilot Flight Academy, pointed out that the Pilot Flight Academy is one of the largest pilot training companies in Europe, present in ten countries.

ERSTE BANK VOTED REGION’S BEST Erste Bank was named the Best Real Estate Bank at the 2019 Hall of Fame (HOF) Awards for Central, North & South Eastern Europe held by the Construction & Investment Journal in the Czech capital, Prague this April. After Erste Bank was chosen as the Property Financing Bank of the Year in Hungary three years running ( 2016, 2017 and 2018), the financial institution once again represented this country in the financing category at the international contest for seven countries (the Czech Republic, Poland,

photos by

ZSOLT SZIGETVÁRY/MTI, DÁVID HARANGOZÓ, DEPOSITPHOTOS.COM, BUDAPEST AIRPORT

PILOT ACADEMY AT LAKE BALATON

w w w . d t e u r o p e . c o m

07 company briefs.indd 7

D I P L O M A C Y

T R A D E

M A Y

2 0 1 9

Hungary, Montenegro, Romania, Serbia and Slovakia). In the Best of the Best Real Estate Bank category, Erste Bank took first prize in front of the Polish Bank Zachodni WBK, Raiffeisen Bank in Romania, Erste Bank Serbia and the Slovak VÚB Bank. According to Zoltán Balázs, Head of Real Estate & Structured Finance at Erste Bank, the Hungarian financial institution was recognized for its wide range of services and customer-centricity among its competitors, where the basic philosophy is partnership with

CARGOLUX BOOSTS BUDAPEST FREQUENCIES

Luxembourg cargo airline Cargolux is has announced that its service offering to Budapest has doubled, increasing from three to six weekly connections to the Hungarian capital. The original Hong Kong-Budapest-Luxembourg routing operated by Cargolux three times weekly will be augmented by an additional identical frequency. These flights will be complemented by two new weekly connections from Zhengzhou that will stop over in Budapest before continuing to Luxembourg and will considerably increase the airline's service offerings to and from the region. According to a press statement by the company, Budapest is fast emerging as one of Central and Eastern Europe’s major cargo gateways, a position that Cargolux is keen to contribute to. As the first cargo carrier to offer flights into Budapest Airport in 2002, Cargolux is the benchmark for other players in the industry. Over the years, a solid and trustworthy relationship has formed between the airport and Cargolux, which is now the largest freight airline to service the destination. For Cargolux, the increased connections to Budapest are a distinct commercial advantage for both the airline and the airport. As Domenico Ceci, Executive Vice President Sales & Marketing, states, “there is a growing interest for services to and from Budapest and its greater region. Our position as a prime operator to the airport for numerous years, and our long-standing relationship with the airport enabled us to seize the opportunity and enhance our connections to this destination. We look forward to continue working closely with Budapest Airport to ensure both parties reap the benefits of these additional services.”

customers. In all service areas, Erste Bank wants to establish long-term relationships with its customers, offering accessible and transparent products as well as personalized consulting services. 2001 was the first time the Construction & Investment Journal (CIJ) announced awards in the real estate market. Prizes were first awarded in Hungary in 2008. Currently, the CIJ Awards are the oldest and most prestigious professional distinction in the regional commercial real estate market with the national winners competing for the ‘Best of the Best’ award for the last four years. The winners are jointly selected by major actors of the real estate market in the region, the CIJ jury and leading journalists.

7 5/9/19 11:05 AM

analysis

KICKING THE CAN DOWN THE ROAD – AGAIN A MISMANAGED BREXIT MAY EVEN LEAD TO THE DISINTEGRATION OF THE UNITED KINGDOM BY TAMÁS MAGYARICS

There are several people on both sides of the English Channel who can rightfully be blamed for the current dead-end street in the Brexit process. British Prime Minister David Cameron misjudged the sentiments of the people when, basically, he believed that he would able to placate the Eurosceptics in the Conservative Party because in a referendum over the Brexit, the Remainers would have a majority. Then, PM Theresa May forced a snap election in the hope that the Tories would get an even more comfortable majority than before (she was mistaken), and triggered the two-year process without adequate preparation for negotiations. The Brussels bureaucrats disregarded some of the legitimate grievances of large segments of the British electorate, including the migrant issue and, above all, they were pushing for closer cooperation, a. k. a. centralization of the EU with the ultimate goal of creating a federal United States of Europe – the idea is an anathema even for many pro-EU voters in the U.K. (and elsewhere in Europe). Then, the default position of Brussels was to make Brexit as unpleasant for the British as possible lest other member states should start thinking of following the British on their way out of an overcentralized and over-bureaucratized EU. Meanwhile, in Britain, Theresa May’s government has had to fight a two-front war: one against its implacable Brexiteers centered around such major politicians in the Conservative Party as Boris Johnson and

between Northern Ireland and the Republic of Ireland. This thinly veiled reference to a potential revival of sectarian violence made, among others, the EU leaders declare that it is the vested interest of the EU to keep the Good Friday (Belfast) Agreement in place and to prevent the outbreak of clashes between the unionists and the republicans in Ulster. In sum, a mismanaged Brexit may even lead to the disintegration of the United Kingdom; however, the Scots should think twice before voting for independence (in case there is one in a foreseeable future) because it may happen that they fall between two stools, if they cannot join (remain in) the EU right after a majority vote for independence. (Things are further complicated that such a referendum can only be held with the approval of the British Parliament.)

Brexit vs. UK unity A compromise idea in this question, that is a limited period of time for British continued membership in the European customs union might be applied only to Northern Ireland in order to avoid recreating a hard border between Ulster and the Republic of Ireland has been vehemently opposed by the Democratic Unionist Party. The DUP suspects such a solution is a potential first step of detaching Ulster from the rest of the U.K. DUP leader Arlene Foster has a very strong negotiating position in Westminster: it’s only with the votes of the DUP that the Conservatives can cobble together a razor thin majority against the various opposition parties running from the Labour Party through the Liberal Democrats to the Scottish National Party. The Brexit referendum brought a number of fault (half-hidden) lines within the U.K. to the surface. The most spectacular one was that the majority of the voters (roughly twothirds) both in Scotland and Northern Ireland wanted to remain within the EU. SNP leader Nicola Sturgeon has been talking more and more frequently about another referendum on independence (the last one in 2014 was defeated by a 55-45 majority), while Sinn Féin leader Mary Lou McDonald ominously warned of dire consequences in case of a hard Brexit – and consequently a hard border

A damaging delay Hard Brexit is not in the interest of the majority of the people in the U.K. and the EU, as the successive new deadlines illustrate. Besides the talks in front of the public eyes, there must be several different (back) channels between the U.K. and the EU, as well as between the Conservatives and Labour. The British voters are hugely dissatisfied with the political elites, though – of course – the Conservatives as the governing party bear more responsibility for the stalemate than the rather obstructionist Labour Party. Nevertheless, the latter should also be careful what it longs for: a general election or a second referendum would force them, too, to come down firmly on one side or the other, and they will not have the luxury of shouting from the sidelines as they have been doing in the past months. So far, there are only a few who have left the two major parties, but internal dissent may create havoc with both. The outcome of the Brexit may as well seal party strength in the U.K. for years to come, and – likewise – affect substantially the position of the U.K. and the EU in the world. Delays without end is one of the worst options; this volatility is being used by rival power centers at the expense of the two parties involved in this breakup of a marriage of sorts. Tamás Magyarics is a foreign policy analyst

photo by DEPOSITPHOTOS.COM

The United Kingdom was supposed to leave the European Union on March 29, 2019. Then, possibly, on April 12. Right now, the latest deadline for a soft, that is, negotiated Brexit, and a hard, that is, no deal Brexit is October 31. However, the bookies in London accept bets for later dates, as well as for a no-leave scenario. Anything goes, which is rather sad given the huge importance of any Brexit for both the U.K. and the EU. The great majority of the people in the U.K. – and possibly in the EU, too – are upset about the political elites in Britain and the EU alike. They are seen, with justice, as negotiating in bad faith or as being incompetent or both. The sad reality is that the U. K. does not have a Winston Churchill or even a Margaret Thatcher, while Emanuel Macron and Angela Merkel are not Charles de Gaulle and Helmut Kohl, respectively, either. It is the misfortune of Britain and the EU that at this critical juncture in the history of Europe both have to put up with, if at all, mediocre leaders – while the U.S., as the single most important outside influencer, and an European power in various ways, cannot boast of having six wise men, who created the postwar order (using Walter Isaacson’s title). It would be a Godsend if only there were one such person in Washington, D.C., but the Americans are also rather short of political geniuses.

Plenty to take the blame

David Rees-Mogg; while the other is against an obstructionist opposition, especially the Labour Party, which, ironically, is led by the Eurosceptic and hard-left Jeremy Corbyn. Labour’s bottom line is remaining in the customs union; on balance, this solution may bring economic benefits but it would result in a situation, which was aptly described by Boris Johnson who said that if someone does not sit at the table, then he/she is part of the menu.

8 08 magyarics.indd 8

M A Y

2 0 1 9

D I P L O M A C Y

T R A D E

w w w . d t e u r o p e . c o m

5/9/19 11:05 AM

european union

BRINGING THE EU CLOSER HUNGARY CELEBRATES 15 YEARS OF EUROPEAN UNION MEMBERSHIP

“15 years ago, Hungary returned to the community where – based on its culture, history and heritage – it always belonged,” the Head of the European Commission's Representation in Hungary, Gábor Zupkó, tells Diplomacy&Trade. Celebrations of the 2004 EU accession of the country are held in 19 cities across Hungary between May 1 and 18. “The main public festival will be at Szabadság Square in downtown Budapest on May 12, with several concerts, family programs and the now traditional ‘EU Run’. The series of public events will be closed this year by the Europe day celebrations in Veszprém on May 18.

A value-based project When asked about the main benefits of membership for Hungary and the Hungarian people over this one and a half decades, the Head of Representation points out that “being part of the single market offers huge opportunities for the very open Hungarian economy. The EU fosters growth, employment and prosperity – and Hungary has profited from it dearly with several thousands of jobs created since its accession. In addition, we can all see the results of the many investments financed by the EU’s regional policy: roads and wastewater treatment plants built, railways reconstructed, hospitals and schools renovated etc.” But the EU is much more than just an economic community: it is a value-based project, one based on the common values the Member States share with each other in many important areas. The EU defends human and democratic rights, helps consumers to exercise their rights, protects the environment, makes sure there is healthy food, takes actions against cartels, etc., etc. – and Hungarian citizens benefit from these actions just as any other Europeans. “Furthermore, as an EU member

Europa Point

Hungary, a mid-sized country, can make its voice better heard on important global issues in the international arena. Last but not least, the EU remains a peace project, a very successful one, bringing invaluable benefits to all of us,” he adds.

Interface for the Commission As ‘Head of The European Commission Representation in Hungary’, Gábor Zupkó represents the ‘quasi government’ of the EU since 2015. He highlights that the Commission Representations in the Member States act as the official representative

of the European Commission, and serve the interests of the whole Union. “We serve as the interface for the European Commission with the national authorities, media, stakeholders and citizens, as well as diplomatic missions in Hungary. We provide the Commission with in-depth information and analysis regarding relevant social and economic developments in Hungary, as well as the views of the government, political parties and civil society on a range of issues, within the Commission's remit. We contribute to the preparation and organization of high-level meetings and

conferences. We follow the Hungarian media and provide information about developments and trends.” However, he points out that their core task and mission is to bring the EU closer for Hungarians. “We communicate on behalf of the Commission and explain the EU to the media, to our contacts at the national administration and directly to citizens. We organize citizen’s dialogues across the country, we organize EU-classes in schools also through our Europe Direct network, which is present in all 19 counties, and we accept hundreds of invitations to speak about the EU at various events, fora, festivals, conferences.”

Fact-based communication

photos by

DÁVID HARANGOZÓ, ZOLTÁN TUBA

Hungarian government officials often criticize ‘Brussels’, which is the manifestation of the EC and the EU in the eyes of much of the Hungarian public, for representing things that the current Hungarian government does not consider to be in the interests of Hungary. As to how much he thinks this criticism is justified and what the response of the ‘establishment’ of the EU is to all that, Gábor Zupkó stresses that “support for the EU and trust in EU institutions is high among Hungarians. According to the latest Eurobarometer results, trust in the EU is significantly w w w . d t e u r o p e . c o m

09 zupko.indd 9

higher in Hungary than the EU average, and it is increasing. A recent study conducted by GLOBSEC found that 75% of Hungarians would vote yes at a (hypothetical) referendum on EU membership. It is also to be noted that all parliamentary parties see Hungary’s future within the EU. So, the overall situation is not at all bad.” He points out that criticism and debate are natural in a democratic system, and the European Union is a democratic community. “We, as a Representation, have to provide fact-based and precise information – and we need to intervene when we see misleading information or fake news about the EU. Unfortunately, we did have to intervene a few times and had to put certain facts about the EU straight recently, which is obviously not ideal, but c’est la vie. We do our job. We believe in fact-based communication.”

D I P L O M A C Y

T R A D E

M A Y

2 0 1 9

The Europa Point, located in the same building as the Representation office, is the EU community space in Hungary. Gábor Zupkó likes to say that “in our Europa Point everyone from any age group can feel they are in Europe. Our Europe Point is an exciting meeting place for everyone to enter, which, in addition to offering professional programs, also serves as the ‘House of European Culture’ – a colorful place about culture, policy debates and conferences. Citizens are welcome to just pop by with their practical questions about the EU, we offer many interesting cultural programs ranging from concerts to conversations with interesting European personalities, and we organize events (conferences, workshops) there for professional audiences, too.” The European Commission has information offices throughout the country. As regards the interest of those visiting these offices and the feedback heard from them, the Head of Representation highlights that these centers receive many practical questions from citizens about the EU: some people ask for practical help on how to apply for EU agricultural funds, others would like to know more about career opportunities in other Member States or at EU institutions, many ask about Erasmus+, while others have questions about their rights as an EU citizen. In addition, the centers also organize events, like citizens’ dialogues where people can learn more about the EU. “To put it simply: the mission of the information centers is to bring the EU closer to their local communities – just as ours at the Representation is to bring it closer to all Hungarians.”

9 5/9/19 11:07 AM

BY SÁNDOR LACZKÓ

Touching upon the main issues that characterize Irish-Hungarian relations, Ambassador Kelly starts by recalling that Hungary’s accession to the European Union – the 15th anniversary of which is celebrated this May – happened during the Irish presidency of the European Union in 2004. “We hosted the leaders of all the ten new member states at that stage to Ireland on the ‘Day of Welcome’. We were happy to welcome them and develop our relations with this

10 10-11 irish ambassador.indd 10

part of Europe. Hungary and the other countries have become important EU partners. We have been closely together on many issues since. We have similar views on several matters such as competitiveness or taxation.” He adds that “as far as Brexit is concerned, we work very closely with the Hungarian government and we appreciate very much the solidarity we receive from them. This April, the Hungarian Minister of State for EU Affairs, Szabolcs Takács was in Ireland and he visited the border between Ireland and Northern Ireland just see for himself the issues involved, so

Hungary in the EU

the United Kingdom and Sweden were the only three countries that from the very start granted this freedom of movement to people from all ten new member states. I think economically, Hungary is progressing very well, the economy is doing well. I know that sometimes people in Hungary and in some of the other V4 countries feel that the gap has not closed sufficiently between East Central Europe and Western Europe. I think your patience is required. Ireland supports the idea of continuing to have strong provisions in the EU budget for

As regards Hungary’s development as an EU member state in the past 15 years, the Ambassador stresses that “as we can see from the opinion polls, support for the European Union in Hungary still remains very strong. Hungarians share many values of the European Union, they value the four freedoms – particularly, the freedom of movement which allows Hungarians, just like the citizens of other countries, to move to another member state and seek employment opportunities there. Ireland, M A Y

2 0 1 9

D I P L O M A C Y

T R A D E

DÁVID HARANGOZÓ, DEPOSITPHOTOS.COM

INTERVIEW WITH PAT KELLY, IRISH AMBASSADOR TO HUNGARY

we have had excellent cooperation on that. I believe that overall, the relations are very good. There are occasionally differences that were discussed when our Prime Minister was here last year, for instance, but we feel very much that Hungary is a country, which has gained from this EU membership and certainly, I think there is still very strong support among Hungarians for what the European Union has brought. Our overall desire is to do our best to ensure that Hungary can realize the full potential of its EU membership.”

photos by

POSITIVE DIRECTION AND DIALOGUE

w w w . d t e u r o p e . c o m

5/9/19 11:08 AM

irish focus Council. At the moment, there is a dialogue going on between Hungary and the other member states concerning these issues. We certainly very much feel that dialogue is the only way to advance on these matters. There are also some concerns, which relate to certain recent legislation adopted here in Hungary and we want to work with the Hungarian government on these matters because, again, we feel that dialogue and a common approach within the European Union is always the best way to discuss issues. For instance, Ireland is not directly impacted by the migration problem but it is one issue where we try to demonstrate solidarity with those most affected: we have agreed to take quite a large number of refugees and asylum seekers who have come to Europe in the recent years.”

Overall direction positive

the cohesion fund as well as for the common agricultural policy to further close the gap that exists. Ireland was able to hugely benefit from those policies in the past, so, the countries of East Central Europe should be able to do just that, as well. There was a major recession that hindered efforts to close the gap but overall, I believe that on the whole, it has been a positive development.”

Brexit

DÁVID HARANGOZÓ, DEPOSITPHOTOS.COM

DEPOSITPHOTOS.COM

photos by

The European issue currently most debated in Ireland is obviously that of Brexit. Ambassador Kelly agrees: “For us, Brexit has been a major preoccupation. Of course, we welcomed the fact that we were able to avoid the situation of Britain leaving the European Union without a deal at the end of March as it was a possibility at one stage. That would have been the worst possible outcome. Now, we have an extension until October 31. We believe very much that the withdrawal agreement that was negotiated between the British government and the European Union is the very best way to ensure what we call an ‘orderly Brexit’: Britain leaves the EU with a transition period during which the future relations can be negotiated. So, we very much hope that that withdrawal agreement can still be somehow secured in the UK Parliament. This is a matter for the UK government and the UK Parliament - the ball is in the court of the UK.”

Common ground Following his talks in Dublin, the Hungarian Minister of State for EU Affairs, Szabolcs Takács said that Ireland is also against the curtailment of the European Union’s cohesion fund for the next financial framework, and similarly to Hungary, it is a supporter of national fiscal policy. As regards these issues and the future of the EU, Ambassador Kelly highlights that negotiations are underway on the next budget, which will start on January 1, 2021. These are very crucial and difficult talks. Of course, part of difficulty is that the UK is due to w w w . d t e u r o p e . c o m

10-11 irish ambassador.indd 11

leave the EU and if it does, it will leave a big hole in the common budget. Some member states believe very much that given the UK departure and consequently less funding, the EU perhaps needs to reduce its expenditure or member states will have to contribute more. In Ireland, we are quite flexible on this issue. We don't want to see any dramatic decrease in the EU budget but at the same time, a modest increase may warrant us to pay for the other priorities of the proposed budget. For us, cohesion policy remains an important EU instrument. As I said we have benefited hugely from it and we believe that it is only fair if this opportunity is given to other member states, as well. For us, the common agricultural policy is also of great importance and Hungarians also appreciate it. Generally, on matters such as taxation, Ireland and Hungary would have very similar view. We very much feel that taxation at the end of the day should remain a national competence. As part of the Eurozone, Ireland is very much committed to cooperation and integration within the European monetary union but, at the same time, we do very much feel that taxation is ultimately best left in the hands of each member state. All these matters were used fully discussed during the visit of Mr. Takács to Ireland and these are issue that we will continue to work on in the future.”

Differences The Ambassador reminds that “there is an Article 7 procedure going on against Hungary and Poland in the European Union. This has been discussed in the General Affairs Council on two or three occasions at this stage. We have flagged that we have some concerns here in Hungary particularly in relation to areas such as civic society, laws relating to non-governmental organizations or the uncertain situation of the Central European University in Budapest. So, these issues have been raised by Ireland and quite a few other member states during discussion in the General Affairs

D I P L O M A C Y

T R A D E

M A Y

2 0 1 9

The Ambassador believes economic relations between Ireland and Hungary are pretty active at the moment: the overall level of trade, both services and goods, continues to grow with “the figure heading towards EUR 2 billion per annum, which is a very respectable level of trade. We certainly are happy to do even more in that area and we take some steps here at the Embassy, as well. This year, we have just launched a new Ireland Hungary Business Directory, which sets out how many Irish companies are active in this country. The directory’s overview of the businesses and entrepreneurs who make up the Irish economic presence in Hungary lists 57 companies.” He adds that there has been quite an amount of investment from Ireland into Hungary, which is a confidence in the Hungarian economy and the economic opportunities that exist in this part

FACTS COMPARED AREA country comparison to the world POPULATION country comparison to the world POPULATION GROWTH RATE country comparison to the world BIRTH RATE country comparison to the world LIFE EXPECTANCY AT BIRTH country comparison to the world NET MIGRATION RATE country comparison to the world GDP - PER CAPITA (PPP) country comparison to the world UNEMPLOYMENT RATE country comparison to the world TELEPHONES - MOBILE/CELLULAR country comparison to the world AIRPORTS country comparison to the world

of Europe. The main Irish industries in Hungary are listed as information and communications technology, machinery, automotive, tourism, electric machinery and equipment, chemicals, food processing, pharmaceuticals and metallurgy. Statistics show that in 2017, when the figure of EUR 1.5 billion was recorded for total goods and services, Ireland exported EUR 488.7 million of goods to Hungary, a growth of 9.5%. Ireland imported EUR 195.8 million of goods from Hungary. “Of course, we would always like to see more trade. We work closely with our sister agency Enterprise Ireland to promote more Irish exports to Hungary and certainly, the number of companies coming to Hungary from Ireland is also gradually increasing – with more and more exports and more and more jobs being created. Obviously, we would like to see more Hungarian investment in Ireland and certainly there is some positive development in that area, too. I know that a major investment is taking place right now by the Hungarian investment agency Concorde that is opening an office in Dublin. We very much welcome that kind of investment in Ireland. Of course, there is more to be done but the overall direction is very positive. This is particularly important in terms of Brexit that we are actively involved in promoting trade. It is because the reality is that once Britain leaves the European Union – hopefully, it will be with an agreement but still there is a possibility that it might be with a ‘no deal’ outcome – then, that will make trade with Britain more difficult for EU member states. We are trying to identify new markets so that companies could exploit such a situation,” Ambassador Pat Kelly concludes.

HUNGARY

IRELAND

93,028 sq km 111 9,825,704 (July 2018 est.) 92 -0.26% (2018 est.) 214 8.9 births/1,000 population (2018 est.) 206 76.3 years (2018 est.) 88 1.3 migrant(s)/1,000 population (2017 est.) 54 USD 29,600 (2017 est.) 68 4.2% (2017 est.) 54 12,030,940 (2017 est.) 75 41 (2013) 103

70,273 sq km 121 5,068,050 (July 2018 est.) 121 1.11% (2018 est.) 98 13.8 births/1,000 population (2018 est.) 137 81 years 35 4 migrant(s)/1,000 population (2018 est.) 33 USD 73,200 (2017 est.) 10 6.7% (2017 est.) 100 4,898,872 (2017 est.) 121 40 (2013) 105

11 5/9/19 11:08 AM

irish focus

AN IRISH ASSOCIATION

the IHBC’s AGM to be held on May 29 at Becketts - a member-owned Irish pub & restaurant. His aspiration is to have a total membership of 100 (20 corporate, 40 small corporate, 35 individual and five associate members) from the current 69.

IHBC PRESIDENT PLACES MORE FOCUS ON THE BUSINESS ASPECT OF THE ORGANIZATION

“We are the hub for the Irish in Hungary and for Hungarians who are in any way involved with Ireland or the Irish.” That is how the Irish Hungarian Business Circle (IHBC) def ines itself on its website.

Matty Ryan was elected IHBC President in 2016 (and then re-elected in 2018 for an additional term). “I started focusing on creating business events within the IHBC, gradually increasing their number to four events in the past year. In the future, I would like to continue to have four business events every year,” he says. The most recent of these was the “Science of Perfect Marketing”. This event was hosted by the CEU Department of Economics and Business and proudly supported by the IHBC, organized by Mark Downey. It took place on April 10 at the Central European University with Dave McCaughan, the co-founder of Ai.agency. He spoke about how Machine Learning (AI)

12 12 IHBC.indd 12

Members Accounting, marketing and corporate services are perhaps the areas the most represented in the Irish business community here in Hungary (as well as in the membership of the IHBC). “Almost all the Irish businesses in Hungary are members – and not just Irish businesses but also firms like Invitech and UPS where executives are Irish persons holding top positions in the Hungarian subsidiaries,” the

President highlights. Among the members, he makes special mention of the Embassy of Ireland in Hungary and Enterprise Ireland. In 2016, during the first year Matty Ryan was President, the corporate membership numbered at seven, increasing to fourteen within the year. Today, it is at fifteen and the President’s goal is to increase that membership to twenty over the next few years. This will all be discussed at

NURSERY CHRISTMAS CHARITY

FUTURE PLANS

Business: The IHBC will continue to grow the close relationships with the Canadian and Italian Chambers of Commerce, as well as adding the British Chamber of Commerce. “We are also excited for our business event taking place in the southern Hungarian city of Pécs in October. We are in the planning process now with the main organizer and I am hopeful he will be elected to our Board at the next AGM,” Matty Ryan says. Sponsorship: IHBC intends to raise additional sponsorship money by increasing the public relations and media exposure for its membership. “In that regards, our new colleague, Anikó Woods and her expertise in strategic marketing are of great help,” he adds. Membership: This year, three new board members will join the IHBC. Matty Ryan believes that increasing the diversity of the board helps to grow its membership - as well as being an important factor for sound and strategic decision-making. Charity: One of the goals for 2019 is to set up an official charitable foundation because a foundation serves as a base for more support and allows the IHBC to give increased help to local communities - for instance, through people being given the chance to offer 1% of their income. Another objective is to open the organization towards young people. The President highlights that “the veterinary university here in Budapest is full of Irish students – along with many other universities. This means hundreds of Irish students are living in the Hungarian capital. Recently, I had a chance to meet some of them and realized they had not heard about the IHBC. To help raise awareness, this year we plan to have an official ‘student ambassador’ – to spread the word amongst local students, budding entrepreneurs, and future business leaders,” he concludes. M A Y

2 0 1 9

D I P L O M A C Y

T R A D E

HARANGOZÓ

Focus on business events

technologies can help discover, explore, prioritise and measure the elements of your company story from across the whole of the Internet. By hosting events like this, Matty Ryan changed the nature of traditional IHBC business events. “The former speaker-audience lecture format was loosened to turn it into more of a networking opportunity, offering more value to our membership and other attendees. One of our favorite past business events this year was the Whiskey Tasting and VIP Networking Event with Judit Varga, Secretary of State for EU Relations, and Pannonia Bio. It was held at the Pernod Ricard offices and spearheaded by our current Vice-President, Duncan Graham. Pannonia Bio is the main corporate sponsor of the IHBC and we are hugely grateful for their support. We also had very successful events with the Italian Chamber of Commerce and Enterprise Ireland over the past year.”

Charity work is an integral part of the operation of the Irish-Hungarian Business Circle. According to the President, they particularly focus on disadvantaged children, kindergartens and nurseries. The IHBC membership provides a broad spectrum of help to poor, disadvantaged communities and people in need. Describing their latest ‘good deed’, he highlights that “on the first Saturday this April, our volunteer members planted a huge garden with fruit trees in Szilaspogony – in cooperation with the local community. The main sponsor on that day was the Canadian Chamber of Commerce in Hungary (CCCH) that supplied all the vegetables and fruit trees that were planted. Previously, the IHBC worked within this community to refurbish the nursery.” (see video through the enclosed QR code). He adds that “during Christmas of 2017, IHBC members took a bus to Szilaspogony and furnished the local kindergarten by making repairs and building new furniture purchased from IKEA. Our volunteer members offered their time and when we finished our day, the village held a big party with food and pálinka to celebrate”. The President points out that he receives a lot of help from Zsuzsa Bozó, the former owner of the Caledonia Pub in Budapest, in organizing the main charity activities. The IHBC receives and pays the invoices for all the necessary furniture, fixings and other supplies as well as assists Ms. Bozó with any additional organizational work required.

photo by DÁVID

As the President of the IHBC, Matty Ryan points out to Diplomacy&Trade in reaction to an earlier characterization of the organization as a ‘quasi chamber’, “I prefer to describe the IHBC as an association. Loosely defined, an association is a group of individuals who enter into a voluntary agreement to achieve a defined objective – and that is what we are. We are a member-based, politically independent association. This means we have membership fees, the leadership is elected, and we have statutes.” The IHBC focuses on promoting our membership along with representing their interests, rights and economic issues.

Good deeds

w w w . d t e u r o p e . c o m

5/9/19 11:08 AM

irish focus

THE KINGS OF INSULATION

KINGSPAN PRODUCTION CAPACITIES IN HUNGARY SATISFY DOMESTIC AND EXPORT DEMANDS In Hungary, Kingspan is the market leader in the insulated panel business. Nearly 80% of the product demand is still in the industrial and agricultural and commercial sectors, with manufacturing plants, logistics and service facilities, livestock farms, cold stores and commercial centers.

“Over the past ten years, we have also been able to establish a foothold in other areas, such as sports facilities, swimming pools, showrooms or entertainment centers. The use of our insulated sandwich panel in the public and private sector, which has been popular in the West for several decades, is still in its infancy, but with a couple of our premium products, we offer complex façade solutions specifically for these

types of buildings,” Előd Estók, Operations Director at Kingspan Hungary tells Diplomacy&Trade. “The Irish parent company, which dates back over half a century, plays a leading role in our lives, as the Hungarian factory is 100% owned by Kingspan Group, and central management continues to make the major strategic decisions,” he adds.

Production capacity

Constant innovation Kingspan produces insulated wall and roof panels with research and development and design playing an important role. “According to our experience, selling well-established products is not enough to keep our position as market leader since standards and market demands are constantly changing. Among the products of the Group, it is the manufacturing of insulated sandwich panels that continue to be the most important at our facility. For over 20 years, Kingspan has been using a chemical technology that makes its products unique in the market of insulated products. Further developing this technology, we have been on the market for nearly three years with a

photos by KINGSPAN,

MARIO ORSOS

Kingspan established a Hungarian subsidiary in 1999. For five years, the company only conducted commercial activities with products manufactured in the Czech Republic and Poland. Előd Estók explains that the sales office, which had been operating since 1999 in Budapest, reached – by the year

2004 – the volume of demand that was enough to provide orders for a new production plant and it was time to change to regional level. “At the beginning of 2005, the sandwich panel factory, built as a greenfield investment in Újhartyán, was supplemented with an office block for the workforce needed to serve the increased demands and the dynamically expanding clientele. The geographic location of the factory in the middle of the country was also determined by strategic considerations: along with good road accessibility and the availability of skilled workforce, the company also had in mind a leading role for the factory in supplying the increasingly important Southern European markets. Since then, this production facility has been the center for those markets of Kingspan. The modern, continuous production line installed in Újhartyán made it possible to replace import activities with domestic distribution and all its benefits: shorter delivery times, more flexible and higher level customer service.”

w w w . d t e u r o p e . c o m

13 kingspan.indd 13

D I P L O M A C Y

T R A D E

M A Y

Sustainability

brand new thermal insulation material, QuadCore™, which is becoming more and more popular in Hungary, as well, since it follows increasingly stringent energy, fire and environmental regulations. Kingspan recognized early on that new technologies in construction can only be made available through intensive development and long-term demand assessment. As a result, in 2019, we will establish a global research and development center called IKON™, which will be able to respond quickly and efficiently to the latest market challenges. I also have to mention the digital world (AI, BIM, VR, AR), where the company strives to provide customers with up-to-date solutions with an intense presence,” the Operations Director at Kingspan Hungary highlights.

Satisfied customers in Hungary and abroad Sandwich panels manufactured by Kingspan are used in industrial buildings. References in Hungary include those of HELL, Samsonite, BioTech USA, the Budapest river port ‘Szabadkikötő’ and others “but we are proud of all our references and have helped many large brands build and insulate their buildings,” he points out. Kingspan’s Hungarian manufacturing capacity (in Újhartyán and nearby Felsőlajos) also serves export markets. “As I mentioned earlier, the manufacturing plant was geographically located to serve the Southern European region. Production capacity is sufficient to meet the commercial needs of other countries such as Romania, Croatia, Slovenia, Serbia, Bosnia and Northern Macedonia. But, for example, our Architectural Façade System division, in which our Hungarian factory has been given a 2 0 1 9

prominent role, is delivering premium façade systems to the entire continental European region, from Finland through Poland to Austria,” Előd Estók says.

Keeping the workforce Nowadays, maintaining/hiring proper labor force is quite difficult for a lot of companies. According to the Operations Director, the solution is primarily to maintain a skilled workforce. “To this end, we have made many positive human policy decisions for our people in recent years. Supporting the future generation is also at the heart of our efforts. We are currently in contact with a number of universities and educational institutes where, besides education, we announce design contests for students and manage several research projects with student and teacher participation.”

Kingspan’s products help customers build sustainable buildings but the company has also undertaken a mission to become a company of net energy usage. As Előd Estók explains, Kingspan's primary goals include not only serving energy-efficient and environmentally friendly solutions with its products, but also setting a good example. For example, it is a member of the RE100 group comprising the world’s most influential companies committed to covering 100% of their energy consumption by the end of 2020 with renewable energy. “One of the milestones of this is that our two factories in Hungary have switched to the use of low-energy industrial and office LED lighting.”

Flexible strategy Currently, there is a boom in the construction industry in Hungary but Kingspan is prepared for the possibility of a different market outlook in the years to come. Its two production sites in Hungary have sufficient capacity to meet the increased demands. "As an international group of companies, we have the ability to always direct the capacity of our factories located in different parts of Europe to wherever the greatest demand is. I could also say that our plants strive to efficiently serve the market within the framework of strategic cooperation,” Kingspan Hungary’s Operations Director concludes.

13 5/9/19 11:10 AM

irish focus is of fundamental historical importance to both Hungary and Ireland. But its role going forward is uncertain. Farmers in both countries are really struggling, and Brussels is not helping them. Brussels provides money but almost no positive incentives to become more productive, invest and modernize, so, long term prospects are not entirely bright. An asset like Pannonia Bio, however, does provide those incentives, which is why Tolna County’s yields have increased by more in recent years than those in regions further to the east.” He adds that their core ethanol business is about transforming starch into alcohol. “This leaves the 30% of the corn kernel that is not starch, as well as certain by-products of the alcohol production process ready to be made into other types of biomaterials. Some of these are well known, such as corn oil, but others are new to the market. Over the next five years, Pannonia Bio will be introducing these to the market in large quantities.” Innovation at Pannonia Bio is continuous, with annual gains of over 10% in energy efficiency, yields and volumes. “These improvements make the operation ever more secure for long term success and development in the region. Ongoing investment in procurement, production, research, efficiencies, technology and innovation increases the value of the products leaving the bio-refinery. Pannonia Bio recruits top scientists, chemical engineers and industry specialists ensuring excellence in all aspects of production.”

A BIO-BASED BUSINESS PANNONIA BIO OPERATES EUROPE’S LARGEST RENEWABLE ETHANOL BIO-REFINERY

Pannonia Bio, founded by Irish entrepreneur Mark Turley, operates a EUR 250 million multi-product bioref inery in Tolna County in South-Central Hungary. The plant uses state-of-the-art production processes and is a nursery for development of new bio-based technologies.

Shortly after production started in 2012, the European Commission introduced a policy initiative limiting the use of crop-based biofuels in the transport sector. “Despite the regulatory backlash, we continued to invest and innovate. It is now evident that the Commission based its policy on flawed facts and limited scientific evidence, as crop-based biofuels, most notably ethanol – in the form of E10 petrol – has proven to be the most effective and sustainable tool to tackle climate issues in the transport sector. Therefore, our aim, together with other stakeholders in the countries of the Visegrád Four (V4) cooperation, is to maximize the

14 14 PannoniaBio.indd 14

animal feed, 550 million liters of bioethanol and 15,000 tons of corn oil annually, Pannonia Bio has become a key player in the Hungarian agribusiness, supporting more than 5,000 jobs and providing secure demand for farmers in rural areas,” Ferenc Hódos highlights.

Decarbonization

potential positive effects of crop-based biofuels by introducing E10 in the entire region by 2020,” he points out.

A key player By 2016, the Dunaföldvár plant became the largest renewable ethanol bio-refinery in Europe. “Since its start in 2012, our refinery has not only tripled in size but also transformed into a multiproduct facility. Today, nutrition, health, biochemical and fuel bioproducts are manufactured as alternatives to fossil materials. By processing over 1.2 million tons of feed corn to produce 325,000 tons of protein-rich, non-GMO and anti-biotic free

Pannonia Bio is proud to have established direct partnerships with, and buy feed corn from, several hundred local farmers. As the Strategic Director explains, “our ethanol is being blended into gasoline, substituting a part of the fossil fuel with a renewable fuel. Our ethanol is a clean-burning octane booster which has an audited 70% greenhouse gas saving compared to fossil fuel – on the full life cycle. It is the best available and cheapest option for decarbonizing transport, which will become one of the biggest challenges for Europe and the whole world in the coming decades. In addition, our GMO free protein feed is also of increasing value as an alternative to EU imports of more than 20 million tons of GMO-based protein feed from the Americas that raise a number of concerns, including deforestation. Our corn oil is a beneficiary feed additive in various animal nutrition markets.”

Incentives and innovation Pannonia Bio’s mother company, ClonBio Limited, is a family business situated in Dublin, Ireland. Ferenc Hódos stresses that having Irish owners reinforces the importance of Pannonia Bio’s roots in agriculture. “Agriculture M A Y

2 0 1 9

D I P L O M A C Y

T R A D E

BIO

Regulatory backlash

Nowadays, maintaining/hiring proper labor force is quite difficult for a lot of companies. The Strategic Director says they also feel the pressure of the employment market, however, not on a huge scale. “The difficulties appear in relation to the specialist positions, such as engineers, maintenance technicians. Retention and attraction are in focus right now. Our satisfied employees are our best ambassadors. They need to feel that the company focuses on the compensation, learning & education, providing individual and team development possibilities both in leadership and professional fields. As the company is growing, our colleagues have the possibility to apply for and move to new and more challenging positions in accordance with their knowledge, experience and ambition. We listen to our colleagues through employee surveys and we regularly organize employee forums to share and exchange information. We are also a caring company and organize various social events and support the work-life balance with Health Day events, sport activities and internal buffet.” The production process at the refinery has a certain impact on the environment that the company aims to minimize. “At Pannonia Bio, we consider environmental protection an integrated part of the production. Pannonia Bio aspires to use the best available technology to reach targets in terms of quality, safety and environmental protection. Among others, we are focusing to further reduce our CO2 emissions and our natural gas consumption, as well. The continuous development, the latest first-class quality technology and the usage of the best environmental technics are all supporting our efficient operation,” he concludes.

photos by PANNONIA

Construction of the bio-refinery plant in Dunaföldvár, south of Budapest began in 2010. As the Strategic Director of Pannonia Bio Co. Ltd., Ferenc Hódos explains to Diplomacy&Trade, “it was a complex decision driven by various factors that Mark Turley, the founder of Pannonia Bio, needed to take into consideration. A biorefinery should be located near the source of the raw material. Since a significant amount of feed corn is delivered to, and processed at, the plant and all parts of the feed corn are turned into final products for outward shipping, good logistics infrastructure (highway, waterway and railway) played a role, as well. The presence of a highly qualified workforce, an investor-friendly environment and cooperative governmental relations also supported the decision to choose Hungary.”

Caring for employees and the environment

w w w . d t e u r o p e . c o m

5/13/19 9:55 AM

irish focus

FAST, AFFORDABLE AND HIGH-QUALITY VISTRA HUNGARY OFFERS COMPREHENSIVE CORPORATE SERVICES TO HELP COMPANIES SEIZE OPPORTUNITIES Vistra is a leading global provider of tailored trust, fiduciary, fund and corporate services. The company, headquartered in Hong Kong, is present in 46 jurisdictions across the Americas, Asia Pacific, Europe and the Middle East and has a total of 4,300 employees. Matty Ryan, Managing Director of Vistra Hungary, tells Diplomacy&Trade, “At Vistra Hungary, we offer a complete range of services including company formation and management, corporate secretarial, HR and payroll management, with a strong focus on accounting and tax compliance. We look after foreign direct investment inflows and help ensure that international clients who wish to enter the Hungarian market comply with local regulations. We understand our clients want a service provider that is available 24/7, very fast and efficient. What makes Vistra Hungary stand out from our local competitors is that we – I believe uniquely – offer solutions that are fast, affordable and of high quality without compromising on any other important factors. Our team of professionally qualified specialists focuses

Matty has almost 40 years of experience in finance, corporate services and project management. Currently Managing Director of Vistra Hungary, he is responsible for the leadership and strategy development of the Hungary office. He joined corporate services provider Trinity in 2014, which was acquired by Vistra later the same year, and helped set up the Hungary office to complete the organization’s footprint in the CEE region. Prior to Trinity, Matty started his own consultancy firm and successfully delivered finance-focused projects for large corporations across Europe, including Kingspan in Germany, KPMG in Bahrain, AVG in the Czech Republic, HP EMEA in Switzerland and Hungary, and EY Central Europe in the Czech Republic. He also held senior finance and administration positions in Compaq (previously Digital Equipment Corporation) in Ireland, Finland, Hungary and Poland. Both Digital Equipment Corporation and Compaq Hungary were viewed as the EMEA benchmark for growth, market share, profitability and Finance Excellence.

photo by DEPOSITPHOTOS.COM

on clients’ individual business requirements, guaranteeing easy communication and fast responses.” One special service Matty highlights is shelf companies which offer companies flexibility on when to enter the market and how to operate going forward. These shelf companies are fully established, operational entities with a VAT registration number and a bank account. The solution facilitates a quick and efficient transfer of ownership to commence business activities. After-sales support is available for corporate secretarial needs such as filing updates or changes to the competent courts and other reporting bodies.

MATTY RYAN

w w w . d t e u r o p e . c o m

15 vistra.indd 15

D I P L O M A C Y

T R A D E

M A Y

2 0 1 9

15 5/9/19 11:10 AM

irish focus Relations between Ireland and Hungary date back over half a millennium to two Hungarian pilgrims visiting the famous Sanctuary of St. Patrick in Lough Derg in 1411. As the Cultural Attaché of the Embassy of Ireland in Budapest, Dr. Marianna Szegedi Joó reasserts to Diplomacy&Trade, there has been a mutual understanding between Irish and Hungarian people for centuries. She mentions another historical link between the two countries, one that dates back to the 17th century. “Bishop Lynch who was forced to flee from Ireland took shelter in Győr, NW Hungary. The Cathedral of Győr and the Irish devotional painting that the bishop took with him from Dublin has been a pilgrimage destination for Irish groups for 350 years.” She adds that after the 1956 revolution, lots of Hungarian emigres were given support for months in the city of Limerick. The Irish showed their sympathy towards the fleeing Hungarians.

FROM LOUGH DERG TO SZOMBATHELY

THE IRISH EMBASSY RUNS SUBSTANTIAL SERIES OF CULTURAL PROGRAMS IN HUNGARY means of the financial support of the generous Irish contribution and the cooperation of the Irish Hungarian Business Circle. We have been running a book club every month and we can boast that so far, we could invite three young Irish authors to Budapest for the International Book festival. Our film club is very popular, especially the short films attract interested Hungarian fans. Both in the field of political studies, art and culture, our Embassy has been running a series of lectures in close cooperation with CEU and the Széchenyi Academy of Arts and Letters. Outstanding Irish journalists and academics such as Professor Bridget Laffan, Dan O’Brien and poets, musicians like Gabriel Fitzmaurice have been invited to Budapest in the latest years. Former Taoiseach (John Bruton) delivered the 2018 Irish Speakers lecture at CEU last November.”

A destination for Hungarians Nowadays Ireland is a popular destination for tourists and Irish music and dance have been well known since the 1990s in Hungary, too. Lots of young Hungarian people travel to Green Island, work and settle down there for a short period of time. Kevin Hennessy, the new Deputy Head of Mission at the Embassy stresses that “Irish people are welcoming towards the newcomers because the Irish know what it means to leave your home. For centuries, it was a common experience that the Irish left the Island, sailed to the Big Island or to America with the hope for better life. Even during the Celtic Tiger years, young Irish took a year off from school to spend a year abroad to meet with other people, other cultures. Budapest is home for approximately 200 young Irish vet students who attend the university here for 6 years. Their visiting families are not tourists, anymore.”

Ulysses and Hungary James Joyce and his major ground-breaking novel, ‘Ulysses’ enjoys international reputation world-wide. As Dr. Marianna Szegedi Joó

Civic links explains, “in the early 20th century, James Joyce lived in the cosmopolitan and multilanguage Trieste, the now Italian town that at that time, belonged to the AustroHungarian Monarchy and where he met lots of Hungarians. It must be from that experience that the protagonist in Joyce’s by far most famous novel, ‘Ulysses’, is Leopold Bloom, a Jewish character whose father is from Szombathely, W Hungary. The city of Szombathely has cherished this literary connection since the 1990s and the Hungarian intellectual elite found it fancy to establish a Hungarian Bloomsday festival that takes place on June 16 annually. Like in Dublin, Joycean

People-to-people links are becoming stronger with each passing day. An estimated 10,000 Hungarians have now made their home in Ireland and are making a really valuable contribution to Irish society. The Irish community in Hungary numbers approximately 1,000, including students. There is strong tourist traffic in both directions, facilitated by sixteen flights per week between Ireland and Hungary, with a new Budapest-Cork route having commenced successfully in April. More and more Irish people are choosing to come to Hungary on short and longer breaks and are discovering for themselves the many varied and wonderful pleasures which this country offers.

readers dress up in vintage costumes and read their favorite chapters from the famous book on that day here, as well. For five years now, our Embassy organizes a Bloomsday Breakfast in Budapest with music and exhibition that are about the famous Irish literary figure. The city of Szombathely also established a Bloomsday festival tradition with lots of Irish music.”

Cultural programs She highlights that the Embassy has been running a bursary program with the support of the Irish companies that operate in Hungary. “So far, eight talented young Hungarian students could conduct studies or research in Ireland by

PRODUCING PROFESSIONAL BALERS MCHALE PLACES STRONG EMPHASIS ON MANUFACTURING AND DEVELOPMENT

16 16 culture.indd 16

HARANGOZÓ, MCHALE

In 2004, the company acquired the property of former Mezőgép Rt. in Szolnok, Eastern Hungary and began manufacturing McHale balers there. At present, their machines are shipped to more than 50 countries around the world, directly from Szolnok. McHale farm machines are well known for their high quality and high capacity among users around the world.

In addition to the intensive growth of export markets, sales in Hungary have evolved dynamically. In 2009, domestic sales started from zero and today has 15% of the market share, and are in position 2-3 in the ranking of the most wanted balers. The McHale Group is committed to customer satisfaction. Close relationships with end users provide a good basis for feedback from ongoing user experience, with a strong emphasis on manufacturing and development. Manufacturing takes place in modern production facilities designed for this purpose, using the latest laser and robot technology coupled with the ISO quality assurance system. They place great emphasis on research and development that is carried out in-house using high technology. Machines undergo rigorous testing during the product development process. As a result, it is guaranteed that users will get the best quality equipment and design that will provide a solid foundation for a McHale product to be "an investment in the future.”

photos by DÁVID

McHale is a family run business, which was established by two brothers. Over the last 30 years, they have developed a range of specialist farm machinery focusing on balers and bale wrappers for the production of round and square baled silage and round bales of hay and straw.

M A Y

2 0 1 9

D I P L O M A C Y

T R A D E

w w w . d t e u r o p e . c o m

5/9/19 11:11 AM

FACADE AND ROOF SANDWICH PANELS

What is QuadCoreTM Technology?

QuadCoreTM Technology is a new insulation core, self-blended and unique to Kingspan, that delivers the highest performance of any closed cell insulation core across four factors: fire, thermal, environmental and longevity. It is being rolled out into all our insulated panel product ranges. These translate into a wide range of building performance benefits as explored below.

Fiber free

Higher mechanical performance of QuadCore™ insulated panels is the result of specialized coreforming process. It was achieved with advanced production technology based on continuous foam distribution inside of sandwich panel, which make it more solid and stiff, contrary to discontinuous core made from mineral fiber. As result QuadCore™ sandwich panels may easily satisfy specific loadspan conditions comparing to insulated panels with open cell technology. Which means also that architects may use less thickness panels to span the same distances as open cell and fiber solutions.

Ecosave

Innovations always assume disruption of old technologies by newer, more efficient ones which will become a next step of evolution in this process. Construction sector is not an exclusion. In former times people used stones as main constructing material but within time they replaced it with open cell and fiber insulation materials as more efficient. That was the age of aerated concrete, mineral fiber and other open cell materials. All these materials showed high level of performance which was in favor for decades.

Thermal Performance

Closed cell structure and unique manufacturing technology of QuadCore provides highest level of thermal performance on the market. With this product Kingspan achieved a lambda value of just 0.018 W/m·K for the Quad Core insulation foam. This quality stays prolonged for all years of exploitation of the building. In practice you can use almost twice thinner QuadCore™ panel versus mineral fiber core products and get same U value for your project.

Light weight

QuadCore™ insulation is three times lighter than mineral fiber with open cell structure. Reduced panels weight keeping the same, or sometimes better thermal and mechanical characteristics of panels. It helps to save money on delivery, and construction elements of building, such as foundation, columns, roof purlins, etc. Using QuadCore™ products the elements of building take less loads, so they partially may be simplified. Assemblage costs also may be reduced by using less people to mount panels on the construction site.

Sustainability

From production to construction, we are committed to ensuring our products have minimal impact on the environment. Kingspan QuadCore™ technology exemplifies this. The high performance of its core and the way it is manufactured helps the product to achieve higher ratings in building assessment methodologies such as BREEAM and LEED. However, the benefits of ‘greener’ buildings go beyond the environment, providing healthier, happier places for people to live, work, learn and thrive.

Fire performance

Smoke is the biggest danger in case of fire. That's why the lowest level of smoke emissions is very important to prevent accidents with people. At the start of the era of closed cell insulation we achieved significant progress in fire performance. QuadCore™ it the first closed-cell insulation in the world to be certified according to FM approvals, for use in smoke sensitive occupancies. The core achieves a reaction to fire of B-s1,d0 to EN 13501-1, the lowest grade of smoke emissions acc to European classification, and offers fire resistance of up to one-hour insulation and three hours integrity acc to to EN 13501-2 for wall composite panels. Progress does not stand still and in near future the level of fire performance of closed cell insulation will be upscaled.

Kingspan Insulated Panels H-2367 Újhartyán, Horka dűlő 1., Hungary 17 kingspan.indd 17

5/9/19 11:14 AM

czech republic The main purpose of the Economic and Trade section of the Embassy of the Czech Republic in Budapest is to bolster economic and trade relations between the Czech Republic and Hungary. BY TPETR MICHALEK

Trade exchange between the two countries has grown significantly during the last five years – from EUR 5,8 billion in 2013 to almost EUR 9 billion in 2018 along with the volume of bilateral investments. The Economic and Trade section serves as a partner of the Hungarian Government on intergovernmental issues related to economy and trade whether the issues are purely bilateral or within the framework of V4 cooperation.

Presidential visit As a part of the Embassy, our team helps to organize visits of Czech dignitaries to Hungary. Right now, we are actively engaged in the preparations of the upcoming visit of the President of the Czech Republic, Miloš Zeman to Hungary. I am glad that the President will be accompanied by a large delegation of Czech businessmen who will participate in a Czech-Hungarian Business Forum held during the second day of the presidential visit. In this regard, I would very much like to thank the Hungarian Chamber of Commerce and Industry for their help with organizing this important event, which I hope will lead to a further increase in the volume of Czech-Hungarian trade exchange. Let me also mention that a part of the business delegation will accompany our president to Paks (see pictured), where they will meet representatives of Hungarian nuclear industry.

Map of opportunities

photos by

Moreover, we are well aware that it is very difficult – or almost impossible – to do business without a personal contact. In this regard, we are fortunate that the historical building of our Embassy has beautiful ceremonial premises, which we can use not only for cultural performances such as classical music concerts, but also for business events, during which Czech companies can present their products and services to Hungarian partners.

18 18 TradeDept .indd 18

CZECH EMBASSY ECONOMIC AND TRADE SECTION ACTIVE IN THE PREPARATIONS FOR PRESIDENTIAL VISIT

Economic diplomacy Another important part of our work, which I should not forget to mention, are the socalled Economic Diplomacy Projects, by which our Embassy financially supports various areas of Czech-Hungarian business cooperation. There are two types of projects: 1) projects, by which our Embassy financially supports visits of Hungarian partners to the Czech Republic; and 2) projects, through which our Embassy supports activities of Czech companies in Hungary.

The concept of Economic Diplomacy Projects is very successful – the number of participating institutions is dynamically increasing, so is the number of projects. In 2014, the concept started with 51 projects worldwide. This year, we expect 241 projects to be organized and this is just the first round. Our Economic and Trade Section considers these projects one of our main priorities. Last fall, we arranged two visits of Hungarian partners to the Czech Republic and this spring, we organized two projects supporting activities of Czech M A Y

2 0 1 9

D I P L O M A C Y

companies in Hungary (one was related to the defense industry and the other one to the energy industry). However, this is not the end, to the contrary – more projects will follow. I do hope, that all our above mentioned activities will further bolster our trade exchange and in 2019, the Czech-Hungarian trade volume will exceed the record numbers from 2018. (The author is the Head of Commercial and Economic Department at the Embassy of the Czech Republic in Budapest)

T R A D E

HARANGOZÓ

DEPOSITPHOTOS.COM

Personal contacts

OPPORTUNITIES AND RECORDS

photo by DÁVID

Besides that, we help Czech companies. We take advantage of being in Hungary and provide Czech companies with information about current market conditions and trends as well as about opportunities for business cooperation. In this respect, we closely cooperate with the CzechTrade Office in Budapest, as we share the same goal to bolster trade relations between our countries. Once a year, our Embassy, as well as all Czech Embassies around the world, prepares a socalled ‘Map of Sectoral Opportunities’. Based on these inputs, the Ministry of Foreign Affairs publishes a book called ‘The Map of Global Sectoral Opportunities’, which is subsequently distributed to Czech companies. Besides that, we also take advantage of being in Hungary to help Czech companies to find and initiate contacts with Hungarian partners, be it with Hungarian distributors or with Hungarian industrial associations.

w w w . d t e u r o p e . c o m

5/9/19 11:18 AM

IMPORTED

CZECH

CRAFT

LAGER with fine yeast

IMPORTED: LIQUID GOLD KFT. 1117 BUDAPEST, HUNYADI JÁNOS ÚT 1. • WWW.LIQUIDGOLD.HU

19 sorhirdetes.indd 19

5/9/19 11:18 AM

business

CHALLENGES DRIVEN BY SUCCESSFUL GROWTH

than its predecessor and it was six times less noisy. So, the message that I would convey is that today's air travel cannot be compared to the one we had 10-15 years ago. Of course, there is still noise but you have to acknowledge that the industry has improved a lot in this respect, as well. Despite these great improvements, we must remain responsible and sustainable, which is why we welcome changes to flights over the city during the night hours so that residents are not unduly disturbed.”

BUDAPEST AIRPORT HAS RECEIVED THE BEST REGIONAL AIRPORT TITLE SIX TIMES

The mission of the company Budapest Airport is to make Ferenc Liszt International Airport it manages the most successful airport in Central and Eastern Europe in terms of passenger growth, service quality and operational eff iciency. Kam Jandu, the Chief Commercial Off icer of Budapest Airport elaborates to Diplomacy&Trade on how they will reach this noble goal.

Recognitions Budapest Airport is also frequently in the news because of the recognitions it receives, the latest example is the CEESAR Aviation Awards. According to the Chief Commercial Officer, the Skytrax award is a universal recognition based on surveys from international travelers. “These awards are basically the ‘Oscars’ of the Airline industry. We have won the ‘Airport of the Year’ title six times for this region in the past 15 years and as I understand, we are only the second airport worldwide to have won it six times. We are not only proud of this achievement but it also shows that we are doing something right.” Another excellent achievement came when the airport airline development and marketing team were awarded as the ‘Best airport in Europe for airport marketing’, as voted for by airlines. This is probably the main reason why BUD has generated double digit growth over the last four years and this has been fantastic for Hungary. “Despite all the challenges we face, driven by successful growth, we still need to continue to have a desire for yet another of these awards. What we really want in our heart is to have better care for our passengers. This is why the BUD Plus program launched late last year serves to address the existing bottlenecks experienced in the passenger journey. Some of these measures have already started to yield positive results but there is still a long way to go and we remain committed to getting things even better before any new airport capacities arrive,” he concludes.

we have had some incremental projects like increasing security capacity, check-in counter capacities, etc.”

Security first In today’s world, security is of utmost importance at airports. Regarding developments made recently in this area at Budapest Airport, the Chief Commercial Officer stresses that in the last 12 months, they have upgraded facilities, putting in body scanners, for instance. “Just as a point of reference, body scanners are not mandatory. However, we wanted to bring in the latest technology to Budapest Airport because we know that one of the challenges customers face is the screening process – the more comfortable you can make it the better. That is why we have invested heavily in body scanners. They are all in place now, delivering the output that we expected. More significantly, we increased the capacity of the screening lanes, we have already completed two extra lanes, which makes their number a total of 16. We have done that at the expense of some of the shops because first and foremost, we are an airport and we have passengers to be screened. We have also increased the number of other equipment used in security. To get real time passenger satisfaction ratings with the security process, we now display average queue times expected, which are still ahead of EU capital city airports, plus introduced push button smiley face units where passengers can immediately record their experience. Our team of supervisors monitors this feedback and since its introduction, we are happy to note that more than 90% of people screened are satisfied with the services provided.”

Higher efficiency for less noise “By and large, we set this mission target a decade ago and we have come a long way. I can say that more or less, we have accomplished our goals but, of course, it also remains an integral part of what we try to achieve every day. If you look at our growth in the past decade: passenger growth and all the other correlated areas in terms of parking growth and retail growth as well as all the aspects of environmental projects, we believe we have met all the criteria. I think we have done very well to get there but, of course, it is never a time to be complacent. The best confirmation of being on the right path are the awards that we receive, especially the ones we get from passengers – these are the recognitions that are the closest to our hearts,” Chief Commercial Officer Kam Jandu says.

20 20 business.indd 20

BUD 2020 In the summer of 2016, Budapest Airport CEO Jost Lammers outlined an ambitious plan, ‘BUD 2020’, to develop and modernize the airport, its facilities and services. This year, EUR four million is spent on the modernization of the runways, for instance. The Chief Commercial Officer notes that one of the main projects in the BUD 2020 plan, the airport hotel, opened two years ago, is already very, very successful. He adds that, “we have built a new 10,000-square-meter Pier B to better serve the rapidly growing non-Schengen traffic of the airport and we also added two extensions to the long-term parking capacities over the past two years. With more and more people travelling, more and more of them are using the parking facilities, especially the more affordable leisure parking site. In addition,

In reaction to the noise problem those who live near the airport have to put up with, Kam Jandu notes that “one important element that we can see in today's aviation environment is the efficiency of aircraft, compared to 10 or 15 years ago. If we just look at the performance here in Budapest, we had nearly 16 million passengers last year with just over 106,000 aircraft movements. In the past, we had instances of 126,000 aircraft movements per year when the Malév Hungarian Airlines was still operating – with only nine million passengers transported at that time. Everything is much more efficient today, a lot of aircraft operating nowadays are newer, cleaner and much more fuel efficient. A few weeks ago, we had an event with an Airbus A321neo aircraft operated by one of our largest airline customers and the claims by Airbus proved to be true: it is 19% more fuel efficient M A Y

2 0 1 9

D I P L O M A C Y

T R A D E

photo by DÁVID

Budapest Airport is not only a passenger hub but also one for the international transportation of cargo. In relation to that, Kam Jandu highlights that the most prominent part of the BUD 2020 plan is the BUD Cargo City project, which incorporates 21,600 square meters of logistics and handling facilities plus another 11,200 square meters of ‘Forwarder Building’ offering both warehouse and offices to logistics companies, furthermore two brand new Boeing 747-8F sized aircraft parking stands. “This finally makes Budapest what we always wanted, that is, a showpiece environment for the cargo community. The geographical location of Budapest is very central in Central Eastern Europe, as we all know, and this project is something the cargo community was very much looking forward to, saying that ‘once you have the facility, we’ll come’. In fact, we already see some of these companies moving in, which is a very positive development.” The groundbreaking ceremony took place late last September and the cargo city is scheduled to open in November 2019 within the projected time and within budget, delivering the desired objectives. He points out that some companies of the cargo handling community are already leaseholders as will be some of the logistics community. They have all been involved from the beginning in the development of the concept and regarding the types of facilities required to put this project together. “In November this year, perhaps slightly earlier if we have a bit of luck with the weather, we can celebrate the opening. The international cargo community can now see something tangible is being built at Budapest Airport and very soon, there will be more news of what is in the pipeline. We have already increased the freight cargo going directly to Budapest by some 60% in the last three years to 146,100 tons in 2018 and this will continue to grow this year, as well,” he adds.

HARANGOZÓ

BUD CARGO CITY

w w w . d t e u r o p e . c o m

5/9/19 11:28 AM

witty leaks WITTY

IN THIS SERIES, DIPLOMATS SHARE PERSONAL ACCOUNTS OF THEIR EXPERIENCES ON “EXCURSIONS” into Hungarian culture, art, gastronomy & scenery.

LE A K S

MÉXICO ’A LA MODE’ BUDAPEST EXPERIENCES CONFIRM THAT LIFE IS A DREAM TO LIVE BY MEXICAN AMBASSADOR DAVID NÁJERA

During the two years that I have lived in Budapest, I have discovered a growing interest for Mexico and above all, for its art and cuisine, even in my walks, I literally ‘meet’ Mexico every day.

photos by COURTESY

OF THE EMBASSY OF MEXICO

I pass through the Bartók Béla Boulevard and in the windows of its many galleries I find graphic works, sculptures and photographs of Mexican artists, then, I turn from Pest towards the Palace in the Castle District and a huge blanket with the image of Frida Kahlo invites me to visit the National Gallery. I also find in its streets every day more and more Mexican restaurants and in the menu of many others, there is always an option of Mexican inspiration. Even in one of these long journeys at night in Budapest, I find cocktails with tequila or mezcal on the menus offered by the bars and among the voices of visitors, I often distinguish Spanish with a Mexican accent. Also, great names such as that of Ramon Vargas or Rolando Villazon fill the programs at the Opera. It seems that through its colors, aromas and textures, the idea of Mexico adds to the varied cultural offerings of the city. This trend was clearly seen with the exhibition of the work and life of Frida Kahlo that in the autumn and summer of last year was the most popular exhibition of the last five years in Budapest with more than two hundred thousand visitors. After this exhibition and the program of activities that we organized from the Embassy of Mexico, we saw a multiplying presence in fashion, theater, food and even in arts creations.

difficult for me to understand how the ceremony was going and the meaning it had for all of them. After all, there are common moments in the life of humanity, such as school graduation. That cold night in the middle of winter, I felt surrounded by warmth and emotions as if I were at home and I could appreciate how close we can be. In these hundreds of Spanish-speaking kids, I have found partners for many years as their spirit and energy color Budapest. a lot to do with the thousands of young people who have lived abroad through the Erasmus Program, an economic growth, as well as the thousands of tourists who fill the city’s squares, shops and museums every week. A bustling city in Europe that increasingly becomes the destination for travelers and that grows to the extent that it responds to the new languages and tastes that make it day by day more cosmopolitan for its visitors and its inhabitants.

Attending a farewell For example, I remember once when I arrived on a Saturday at the beginning of winter, in District 19, to a neighborhood that I had passed on my way to the airport but where I had not previously set foot. There, I felt the isolation caused by the lack of the knowledge of the language; it does not count what official titles you have when you realize that you do not have even the most elementary tools to make yourself understood from the quiet comfort zone that diplomatic status gives you sometimes. I walked across buildings trying to find the gym of the secondary school I was looking for, the

Circulation of ideas

21 witty leaks.indd 21

D I P L O M A C Y

History lessons in Budapest This city has allowed me to participate in various initiatives aimed at promoting diversity and stimulating public participation of all groups in society. Just as I see in young people a growing European perspective from their Hungarian identity, I also see women obtaining their own spaces with great thrust, the scope of this diversity undoubtedly makes this city stronger and more resilient. Besides all this, there is always an opportunity to develop one of my favorite activities: photography. Moreover, Budapest is so attractive for its architecture, and the people who live here for their dynamism and the possibility of catching a smile and also a serious face. The monuments full of meaning and the enormous number of plaques on the walls of their buildings, it is true, are one of the biggest enigmas for me because I can seldom fully understand who or what a certain plaque is dedicated to. That becomes a history lesson for me and forces me to find the information that allows me to understand what happened or who lived there. With the same surprise I discovered that the end station of the metro line M1, which is the oldest subway in continental Europe, is named Mexikói út (Mexico Road). The other example is that at the Keleti Pályaudvar Station of the metro line M2, there is a mural saying ‘The imaginary of the Mexican textile craftsmen’ by the painter Julio Carrasco Bretón.

Life is a dream to live

What makes Mexico be present here while it is physically so far from Budapest? For me, as a personal experience, Budapest is a city always ready to be discovered and the intensity of its cultural life during the 19th century fuels the rebirth of recent years. I have the impression that this is one of the best moments of the life of Budapest and all the international things that come with tourism, culture, cuisine and fashion contribute to it. Unlike the city that grew around the migration from the countryside to the city in other centuries, today, the circulation of ideas has w w w . d t e u r o p e . c o m

noise led me wrongly to enter a municipal pool. Going back, I followed a different noise and found the entrance I was looking for; dozens of young people were shouting and everything was in Hungarian with some expressions in Spanish! The girls in charge of the entrance let me pass and they wished me luck when I said that I was looking for the Director. The noise was increasing, the young people were joined by many adults and some children, all of them relatives of these young students. Everyone wore Sunday clothes, the boys in coat and a tie that evidenced not having been worn before and the girls in sensational suits, full of youthful energy. When I arrived at the gym I could only appreciate the atmosphere of excitement, the farewell of those who graduated, the pride of the parents and the joy and passion of the dances. I never reached the place that had been reserved for me, I did not dare to cross the track to get to the Director and the teachers, but I greatly enjoyed that youthful energy and that familiar communion. As an addition, all the students spoke the Spanish language, so, it was not

I have also discovered that I can invite Hungarian people to eat authentic Mexican food who will have no concern for flavors and seasoning. What motivates me the most is to see how the old spirit of discovering and adding new expressions to everyday life makes Budapest a contemporary city proud of its past and its environment. Knowing that even thousands of kilometers away from home, we can find elements in common between the two cultures confirms it for me that life is a dream to live daily.

T R A D E

M A Y

2 0 1 9

21 5/9/19 11:46 AM

the 26 best of budapest th

The 26th Best of Budapest & Hungary Award Gala was held on April 6. Budapest's MOM Sport Center was transformed into a glittering venue where one of the most important events on the Hungarian hospitality industry calendar took place. Each year, for the past 26 years, the Best of Budapest & Hunary awards are given to those individuals and companies deemed the leaders in their field by a professional jury, online voting and the editors of the publication.

22 22-23 best of budapest.indd 22

photos by

FERENC CSÁRDÁS, ANNAMÁRIA FÁBIÁN, ZSOLT VENCZEL, DÁVID HARANGOZÓ

Special guests, including Alexandra Szalay-Bobrovniczky, Deputy Mayor of Budapest, Dávid Farkas, Deputy CEO for Tourism Strategy at the Hungarian Tourism Agency and Tamás Flesch, President of the Hungarian Hotel and Restaurant Association greeted the 450 guests present at the event, representing Hungary’s and Budapest’s buzzing hospitality sector. Peter Freed, founder of the Best of Budapest & Hungary quality assurance system, alongside the host of the evening, Zsófia Mautner and Réka Alíz Francisck, Editor-in-Chief of Best of Budapest & Hungary, congratulated the special award winners, those receiving special recognition and the 'Best in Class' awardees. In true gala style, guests enjoyed hord d’oeuvres by Albatros Party Service, a gourmet dinner served by Corvina Party Service, and a midnight buffet by Gundel, The Kitchen Caters, SZEGA Market and Panificio il Basilico. The evening was complete with a selection of Hungarian wines from Bolyki Pincészet és Szőlőbirtok, Koch Borászat, Kovács Nimród Winery, Szent Tamás Szőlőbirtok és Pincészet, Villa Pátzay Birtok and Vylyan Szőlőbirtok és Picészet. Sparkling wine was on offer from Törley Pezsgőpincészet and Kertész Family Winery, water from Römerquelle, and spirits from Agárdi Pálinkafőzde and Bottle Life. Heineken quenched guests' thirsts with a wide selection of beer. Nespresso Professional offered fine coffee creations and Ráchel Raj designed a gorgeous 26th anniversary cake. Following the award ceremony, Mónika Lázár & László Lakatos entertained guests during dinner and Garami Funky Staff featuring Mónika Veres filled the dance floor, followed by a charity raffle to benefit the Magic Lamp Foundation. Sponsors and partners of the event included Accor Hotels Group, Albatros Party Service, Areus, Brill AudioVisual, Budapest Airport, City Taxi, Danubius Hotels Group, Duna Elektronika, FeelGood Agency, FirstMed, JTB Hungary, Mellow Mood Hotels, Párisi Udvar Hotel Budapest, Porsche Hungaria, Silka Fashion, Stan Ahuja, Terra Catering, The Three Corners and XO Foods. The organizers gave special thanks to the City of Budapest for their support of the Best of Budapest & Hungary over the many years. M A Y

2 0 1 9

D I P L O M A C Y

T R A D E

w w w . d t e u r o p e . c o m

5/9/19 11:49 AM

photos by

FERENC CSÁRDÁS, ANNAMÁRIA FÁBIÁN, ZSOLT VENCZEL, DÁVID HARANGOZÓ

& hungary award gala

w w w . d t e u r o p e . c o m

22-23 best of budapest.indd 23

D I P L O M A C Y

T R A D E

M A Y

2 0 1 9

23 5/9/19 11:50 AM

our special awards

HOTELIER OF THE YEAR BUDAPEST ZOLTÁN ÁRVAI Leading the Hilton Budapest (member of the Danubius Hotel Group) for over a decade, Zoltán Árvai successfully carried out the hotel’s topto-bottom renovations – which was

24 24-25 best of awardees.indd 24

the most comprehensive renovation in the history of the hotel –, remodeling and refurbishing all of its 322 rooms and suites as well as the public areas and meeting rooms. One might think that following such large-scale renovations, which brought a healthy mix of cutting-edge technology and breathtakingly beautiful interior design to every corner of the hotel, the GM would want to lay back a little, but he thinks differently. In his new position, leading Hotel Hungaria and the Danubius Hotel Arena, we may see him again with a hammer or a drill in his hands, as renovation is needed at both hotels. HOTELIER OF THE YEAR COUNTRYSIDE ÁGNES MOLNÁRMERSITZ Only a few hoteliers can shape the place they lead according to their taste. Ágnes MolnárMersitz, owner of Kosbor Pension, does not strive to cater to every need: there is no ‘sauna world’ or TV on the premises of her stylish countryside pension, but still (or perhaps for this very reason), people who stay there, find

RESTAURATEUR OF THE YEAR BUDAPEST - CLASSIC CATEGORY YING TIANHUA Since their foundation in 1990, Budapest’s Hong Kong and Taiwan restaurants have become household names on Budapest’s gastronomy scene. One tucked in a quiet street in District 9 and the other on District 13’s Béke út, these restaurants cannot be called centrally located. Owner Ying Tianhua, or, as most people call him, Tao, wasn’t looking for a posh downtown venue where tourists flock. Instead, he was seeking the right environment for quiet, comfortable dining. The Belgian-born Chinese owner, who first visited Hungary as a tourist in 1986, returned in 1989 with friends, and that was when he fell in love with Budapest, by accident. Literally by accident, as one of his friends lost his passport, so they were obliged to lengthen their vacation. By the time the problem was solved, Tao was in love with Budapest. Tao comes from a huge family, with every member involved in the catering sector. “We were raised in our parents’ restaurant, we all have an insight of what service means and how to build a regular clientele on good food and consistent great service.”

perfect relaxation and maximum comfort, in the tiny village of Magyarszombatfa, neighboring the Őrség National Park.

GASTRO-ENTREPRENEURS OF THE YEAR PÉTER SZTERNÁK AND JÁNOS MACSINKA We rarely see two families working together harmoniously in the hospitality business, certainly not for very long. Péter Szternák and János Macsinka, and their wives are the exception. Thanks to them, more and more people visit Eger, not only to tour the historic castle that the city has always been famous for, but also to get a table in Macok or Brumbrum, or a room at the Imola boutique hotel (all located at the foot of the castle). János, who is often called the ‘Chef of Eger,’ and Péter, the host, await those looking for perfect hospitality in the city of Eger. M A Y

2 0 1 9

D I P L O M A C Y

T R A D E

photos by DÁVID

LIFETIME ACHIEVEMENT FRIGYES VOMBERG Frigyes Vomberg can be credited with elevating Hungarian gastronomy to the European level, through teaching, coaching and as a chef. In recent years, he has prepped the Hungarian teams participating at the Bocuse d’Or competitions. He believes that Hungarian gastronomy can be brought to a new level if young people receive adequate training, because they will become the talents of the future.

HARANGOZÓ, ZSOLT VENCZEL

...THOSE OUTSTANDING INDIVIDUALS WHO HAVE EXCELLED IN THEIR FIELD

w w w . d t e u r o p e . c o m

5/9/19 11:50 AM

go to... RESTAURATEUR OF THE YEAR BUDAPEST - MODERN CATEGORY ANDRÁS GENDUR It is always a challenge to establish a strong client base of repeat guests, especially for a hotel-based restaurant – even if the place is located at Budapest’s famous Andrássy Avenue. András Gendur has experienced ups and downs, refurbishments and chef changes, but he still managed to keep La Perle Noire at the forefront of Budapest’s gastro scene. The hotelier and restaurateur knows that offering exquisite cuisine and service is something that should never be compromised.

RESTAURATEURS OF THE YEAR COUNTRYSIDE FLÓRA MARJAI AND FERENC KVASZNICZA Created, opened and led by Flóra Marjai and Ferenc Kvasznicza, Pajta has turned into a place of pilgrimage both in the gastronomic and cultural sense. Located in the beautiful valley of the Szala brook in Őriszentpéter, the bistro symbolizes the harmony of man and nature in its design and intrinsic values. According to the owners, Pajta is an incarnation of their passion for the Őrség region of Hungary, which, in their mid-term plans, will include a hotel.

restaurant the chef is a woman, she must be a very ballsy one”. Eszter started out as a pâtissière at Costes, and her talent and dedication soon took her to the next level. Playfulness, based on fine dining and continuous novelty is a major criteria of her cuisine. Her dishes go beyond the general rules of physics. She bravely exposes traditional Hungarian dishes to the cooking technology and processes of the French cuisine. PÂTISSIÈRE OF THE YEAR DÓRA SZALAI Originally an economist, Dóra Szalai was the first to open a macaron pastry shop in Budapest, trusting that the city would fall in love with this colorful, fragrant delicacy. Even as a child, she loved baking, and learning the basics of baking from French pâtissier Pierre Hermé’s cookbook, so she decided to master the art of macaron-making. Once she had learned everything about macarons in Paris, she returned to Budapest and opened Chez Dodo in 2014. Ever since, Dóra has been making macarons enthusiastically and persistently, regularly coming up with new flavors, for the delight of her growing number of customers and fans. BAKER OF THE YEAR GERGŐ FEKETE Gergő Fekete has a mission: to create ‘real bread’, that does not include artificial ingredients. Upon graduating from Edinburgh Napier, where he learned hospitality and human resource management, he trained to be a baker in Scotland. Afterwards, he decided

VENCZEL, COURTESY PICTURE photos by ZSOLT

24-25 best of awardees.indd 25

GASTRO-WINEMAKER OF THE YEAR MÓNIKA DEBRECZENI Originally an economist, Mónika Debreczeni has been engaged in winemaking since 1995. With her husband, Pál Debreczeni and an international team of experts, she established Vylyan Winery, and after the sudden death of her husband in 2004, she took over the management of the estate in Villány. She is a member of the international WSET wine academy (Wine and Spirit Education Trust, London). Mónika is the soul of the winery, which celebrated the 25th anniversary of bottling their first wine, just a few months ago. The winery, that produces over 700.000 bottles of wine per year (of which 12% is exported), is a founding member of the Ördögkatlan (Devil’s Cauldron) Festival.

GASTROBLOGGER OF THE YEAR KRISTÓF STEINER Coming from a hippie family, actor-journalistbroadcaster Kristóf Steiner made a decision in 2009 to leave Hungary for London, and later moved to Tel-Aviv, where he officially became vegan. He established his blog called ‘Kristóf’s Kitchen’ in 2015, where he continuously uploads new recipes and his own experiences about food. He also published his first cookbook in the same year, which became a huge success. Based on these recipes, he often organizes cooking courses, both in Budapest and Tel Aviv. GASTROPHOTOGRAPHER OF THE YEAR ANTONIO FEKETE The difference between other gastrophotographers and Antonio Fekete is that before he pursued his carrier as a photographer, he worked as a chef for 20 years. One day, he realized that while food is only temporary, photographs last forever, and by shooting gastro-photos, he could follow his dual passion for gastronomy and photography. He knows how and when to capture the best moment – when a plate of food ‘shows its best face’.

SPECIAL RECOGNITION FOR EXCELLENCE IN HOSPITALITY HUNGARIAN TALENTS COMPETING INTERNATIONALLY

CHEF OF THE YEAR ESZTER PALÁGYI The young chef of Costes, Eszter Palágyi, is the first person in Central Europe to receive a Michelin-star under the age of 30. When Guy Savoy visited the restaurant, he allegedly remarked, “if in such a high-level w w w . d t e u r o p e . c o m

to top up his baking techniques by traveling around the world, working at the best bakeries in France, Germany, Denmark, the U.K. and the Netherlands. In 2015, he returned to Budapest and opened his bakery, Artizán – even the name suggests that everything is handmade there.

D I P L O M A C Y

T R A D E

M A Y

2 0 1 9

ÁDÁM POHNER BALÁZS CSAPODY

ZSOLT KURKÓ IRMA HÉDER

Balázs Csapody has always believed that there would be a demand for quality hospitality at Lake Balaton, when he opened the restaurant Kistücsök in Balatonszemes. He was right, and inspired many to follow his path. Balázs has a good eye for talent: Ádám Pohner joined the restaurant in 2017, and the young and confident sous chef, heading the Hungarian team, finished 12th at the Bocuse d’Or Finale in January, 2019.

Japanese cuisine is very unique and complex, yet the Hungarian chef of Budapest’s Sushi Sei restaurant, Zsolt Kurkó has mastered it so well that he was able to enter the world’s most high-class Japanese gastrocompetition, the Washoku World Challenge, competing for the title of the ‘best foreign Japanese chef’, where he finished 4th. To participate, he had the support of the owner of Sushi Sei, Irma Héder, a true fan of Japanese culture, who always aims for perfection, and does not accept less.

25 5/9/19 11:50 AM

society South Africa Freedom Day

In honor of Freedom Day, the National Day of the Republic of South Africa, the country's Ambassador, Pieter Vermeulen hosted a reception for fellow diplomats and other guests at the Budapest Marriott Hotel. This year, South Africa is celebrating the 25th anniversary of the country’s first elections in which citizens of all races were allowed to take part.

The Day of Arab Culture

The Ambassador of the State of Kuwait, Dr. Hamad Burhamah, who is also the Dean of the Arab Ambassadors Council in Budapest invited guests to the Faculty of Humanities of the Eötvös Lóránd University in the Hungarian capital to celebrate the Day of Arab Culture on April 11.

A Dream in Morocco

Three new ambassadors accredited to Hungary presented their credentials to Hungarian President János Áder this April at the Sándor Palace in the Buda Castle (pictured from the top): Abdurrachman Hudiono Dimas Wahab from Indonesia; Sithong Chitnhothinh from Laos; Carmenza Jaramillo Gutiérrez from Colombia and Goran Stevchevski from North Macedonia.

Thai design contest

The Thai Embassy in Budapest announced a design competition for Hungarian fashion schools. Participants had to create modern pieces of clothing from traditional Thai textiles. The results were announced in the Kiscelli Museum in Budapest in the presence of Thai Ambassador Jakkrit Srivali.

26 26 society.indd 26

M A Y

2 0 1 9

D I P L O M A C Y

T R A D E

photos by

New Ambassadors

DÁVID HARANGOZÓ, ZOLTÁN MÁTHÉ/MTI

The Gallery of Young Artists in Hungary hosted the opening of the exhibition entitled ‘A Dream in Morocco’ that presents paintings from the North African country by Hungarian artist Kata Németh. Opening remarks at the event were made by the Ambassador of the Kingdom of Morocco to Hungary, Karima Kabbaj.

w w w . d t e u r o p e . c o m

5/9/19 11:52 AM

society Dutch King’s Day

Start of the polo season

In celebration of the birthday of King Willem Alexander of the Netherlands, Dutch Ambassador René van Hell invited hundreds of guests, including fellow diplomats and Dutch nationals living in Hungary, to the Hungarian National Museum in Budapest. In his address, he recalled that Dutch women were given the right to vote a hundred years ago – a year after Hungarian women were.

A party was held at the end of April at the Residence of the Argentine Ambassador, the Tildy Palace at Andrássy Avenue in Budapest to celebrate the opening of the 2019 Polo Season. Guests were greeted in the courtyard of the residence by Consul Gretel Zoraya Matías and the wife of the Ambassador, Cecilia Scalisi de GregorioCernadas.

Japanese theater premiere in Budapest

photos by DÁVID

HARANGOZÓ, ZSOLT SZIGETVÁRY/MTI, MARIANNA SÁRKÖZY

‘Kafka on the Shore’, a magical play by Japanese author Haruki Murakami premiered in Budapest in the National Theater this April after its Hungarian debut in Székesfehérvár earlier in the year. The reception prior to the performance was also attended by the Japanese Ambassador to Hungary, Kuni Sato.

w w w . d t e u r o p e . c o m

27 society.indd 27

D I P L O M A C Y

T R A D E

M A Y

2 0 1 9

27 5/9/19 11:54 AM

GARAGE BAND FESTIVAL

JUNE 1, MÜPA Once a year, Müpa Budapest's underground garage is transformed into a concert venue and club: it is closed off from car traffic to open up to something completely different - an incredible experience: for the audience, Müpa concerts where you can dance around in an exciting space with a beer in your hand, for the bands, the chance to play in a festival-like arena. Admission to this event is free of charge. www.mupa.hu

GIORGIO MORODER

MAY 15, PAPP LÁSZLÓ BUDAPEST SPORTARÉNA Hailed by many as the Godfather of Disco or even the very founder of electronic dance music, at 78 years of age, the multi Academy Award and Grammy Award winning Moroder is embarking on a 15-city European tour in April and May 2019. The tour production entitled A Celebration of the '80s will see the pioneering Italian songwriter, producer and DJ perform highlights from his prolific career in a spectacular stage show with dazzling visuals and lighting alongside his band and vocalists. The Hungarian audience will see this production on May 15, organized by the Broadway Event and Multimedia Organisation. Moroder has been a major influence in the music industry for over 55 years, since 1963. He was the first to put dance music to a repetitive percussive beat and to abandon the laws of harmony and make the synthesizer central to his music. Besides working with the biggest artists of the '70s and '80s, Moroder also composed and produced the soundtracks for movies that, much like himself, have become iconic symbols of the '80s, such as American Gigolo, Cat People, Scarface, Electric Dreams, The Never Ending Story, Top Gun and Midnight Express. His scores for Midnight Express, Berlin’s 'Take My Breath Away' from Top Gun and 'What a Feeling' from Flashdance earned him three Academy Awards and four Golden Globes. Since 2013, Moroder, performing as a DJ, provided the music for Google’s game Racer, and contributed to Daft Punk’s 'Giorgio by Moroder' from their hit album Random Access Memories. This collaboration landed him the Grammy for Album of the Year in 2014. In 2015, Moroder released his latest studio album Déjà Vu, which contains collaborations with Sia, Charli XCX, Kylie Minogue, Britney Spears and Kelis, among others. A Celebration of the '80s will be an evening filled with his dance hits, both classics and recent. The performance will stay true to his roots in a production execution that is fit for the future. Fans will see Moroder conduct, play the vocoder, electronic effects and sounds. He will play the piano and he will share personal stories that have never left the walls of his studio before. www.jegy.hu

WHITESNAKE CONCERT

MAY 24, PAPP LÁSZLÓ BUDAPEST SPORTARÉNA The former violin prodigy first picked up a fiddle at the age of four (having already started the piano a year before). She was nicknamed ‘Teeny Paganini’ when, at just eight, she became the youngest pupil at the National Conservatory of Music in Beijing, under Professor Lin Yao. Eventually, she returned to London and entered the London’s Royal College of Music to continue honing her technique. She made her world debut in 1988 to a sensational reception at the Schleswig Holstein Festival in Germany and made her UK debut with the Philharmonic Orchestra that same year. In 1991, at the age of 12, she was invited by the London Mozart Players to headline their Mozart Bicentenary tour of the Far East and was the youngest artist ever to play as a soloist with the orchestra. At the age of 13, she set a Guinness World Record by becoming the youngest soloist to record both the Beethoven and Tchaikovsky violin concertos. Over the years, her conservative classical style gave way to a more modern outlook and she developed her own crossover. With the release of her debut album, The Violin Player, in 1995, she become a globetrotting star. Her brave approach of presenting the violin in a new style caused controversy among some traditionalist critics but its enormous popularity around the world established her as a world star and subsequently inspired a wave of new artists to follow in her footsteps. She has sold over 10 million albums, holds over 40 international awards for both pop and classical recordings and her concert specials have been broadcast in over 100 countries. Vanessa-Mae is a dynamic live performer with a grueling touring program that has taken her around the world several times over. She has visited over 50 countries and performed in spectacular venues such as the Kremlin Palace in Moscow, Hyde Park in London and the Acropolis in Athens. She made her US debut on Times Square where she hopped spontaneously onto a passing yellow taxi - an explosive performance seen all over the world. She has contributed to a number of film projects, including Walt Disney Pictures’ Mulan. ABC’s Arabian Nights and recorded Roxane’s Veil, written by Vangelis for her album Choreography, which was later used on the soundtrack album of Oliver Stone’s film Alexander. www.koncertpromo.hu

28 28-29 whatson.indd 28

M A Y

2 0 1 9

D I P L O M A C Y

T R A D E

photos by

VANESSA-MAE CONCERT

STUDIO BRAMMER, KONCERTPROMO.HU, ZSÓFIA PÁLYI, ASH NEWELL

JUNE 25, BARBA NEGRA TRACK Mega platinum Whitesnake, the legendary rock ’n’ roll band founded and formed by Deep Purple singer David Coverdale will stop in Budapest this summer during their world tour to promote their new studio record ’Flesh & Blood’. In addition to brand new songs, which include ’Shut Up & Kiss Me’, the concert will feature the band’s biggest hits & songs from one of the greatest back catalogues in rock ‘n’ roll history spanning over 40 years. www.livenation.hu

w w w . d t e u r o p e . c o m

5/9/19 11:56 AM

THE UNSUNG HERO: GENERAL GÖRGEI

HUNGARIAN PRESS PHOTO EXHIBITION: MILÁN RADISICS/FISHBONE-SHAPED SWAMP, JÁNOS BŐDEY/"IF WE SHOULD LEAVE, NIKI WILL FOLLOW", TAMÁS VÉGH, ARTÚR GÖRGEI/LÁSZLÓ SZLÁVICS JR., LIVE NATION

UNTIL JUNE 23, HUNGARIAN NATIONAL MUSEUM Artúr Görgei, born 200 years ago, is remembered above all for the surrender that closed the Revolution and War of Independence of 1848–1849. He was the military commander invested with dictatorial powers who, instead of entering into battle with the army of Tsar Nicholas I, ordered his army to lay down their arms. Shortly after that, in September 1849, Lajos Kossuth, the political leader of the War of Independence and the apostle of Hungarian freedom, in a letter written in Vidin, in the territory of the Ottoman Empire, branded the thirty-one-year-old general a traitor and executioner and assigned him sole responsibility for the failure of the War of Independence. His accusation still echoes today in Hungarian political memory. Was he a traitor? Did he ally himself with the enemy? Did he let the cause of Hungarian freedom fall through his own self-interest? Why did Görgei fight at all, and why were the soldiers of the 1848–1849 War of Independence fighting? www.mnm.hu

37TH HUNGARIAN PRESS PHOTO EXHIBITION

UNTIL MAY 12, CAPA CENTER This year, 6,305 Hungarian photographs competed in the prestigious Hungarian Press Photo Competition. Ultimately, 2,462 photos were submitted to represent the cream of Hungarian photojournalism from 2018 in the annual Hungarian Press Photo Exhibition. “We know that Hungarian photographers primarily focus on local events, problems and social phenomena. This year, the global perspective also appeared next to the local in nature photography. We have received more photographs depicting environmental phenomena, mostly the results of global warming and pollution, than usual. For the first time in the history of the contest, the grand prize was awarded to a photo series that presents a very important phenomenon of our wider environment, the Earth as a whole. Even the spectacular photographs of the nature and science category were surpassed by one image that brings attention to environmental pollution, the danger that threatens our planet’s fauna,” reveals Tamás Szigeti, organizer of the exhibition. www.capacenter.hu

DANUBE CARNIVAL 2019 JUNE 8-16 MULTIPLE VENUES IN BUDAPEST This summer welcomes the 24th Danube Carnival that is “traditionally all about traditions”, gathering more than 800 Hungarian and over 200 international artists as well as 37 folk and music ensembles for a spectacular multicultural fest. The Danube Carnival awaits everyone with a wide range of phenomenal and vivid folk and world music, traditional and contemporary dance shows and concerts in several venues around the capital city. www.dunakarneval.hu

TOM JONES

photos by

JUNE 22, PAPP LÁSZLÓ BUDAPEST SPORTARÉNA Tom Jones’ 50-year career has remarkably gone from strength to strength. Along with sustaining his popularity as a live performer and recording artist for five decades, he has garnered – at the age of 77 – the best reviews of his career! Critics across the world are unanimous in their approval and admiration for both the recorded work and the concert performance. Tom was knighted by Her Majesty the Queen in 2006, an honor he fervently cherishes. Other highlights of his career include receiving a BRIT Award for Outstanding Contribution to Music, a Silver Clef Award for Lifetime Achievement, in 2009 the ‘Hitmaker’ award from the US Songwriters Hall of Fame, and in 2010, the prestigious (UK) Music Industry Trust Award. He has been animated as himself in ‘The Simpsons’, ‘Duck Dodgers’, ‘The Emperors New Groove’; other film roles include Tim Burton’s ‘Mars Attacks!’ and Angelica Houston’s ‘Agnes Brown’. Sir Tom is indeed a living legend, one of the few musical artists whose profession began at the dawn of modern popular music who continues to have a vital recording and performing career to this day. His irresistible show traverses musical eras and genres, cuts across class divides and appeals to young and old, male and female, mainstream and cutting edge. Sir Tom has always been about the power of the song, the power of the voice. www.livenation.hu

w w w . d t e u r o p e . c o m

28-29 whatson.indd 29

D I P L O M A C Y

T R A D E

M A Y

2 0 1 9

29 5/9/19 11:56 AM

tourism

SZENTENDRE FEELS GOOD

THE TOWN OF LIVING ART

Times are changing, but one thing remains true: Szentendre, this charming little town is worth a visit. Aside from the multitude of cultural offerings, hospitality is considered one of the most notable dynamics here: you will be pampered – enjoy every minute of it! Ever imagine walking into a postcard? Szentendre is the place where this could actually come true. This small town, also called the gate of the Danube Bend, has a relaxing Mediterranean atmosphere. It’s well preserved, distinctive 18th-century townscape features cobbled squares, colorful baroque houses, narrow streets, graceful churches, nice cafés and souvenir shops. The character of its old center was formed by influxes of Serbian Orthodox refugees who fled there, first from the Turkish invasions and later from continuing battles in the Balkans. Szentendre is often referred to as ‘the town of living art’ due to its artist colony of international renown, and its museums and galleries. In the 1920s, Szentendre became the home and inspiration of well-known Hungarian artists, and today, every second building seems to be a gallery, craft shop or museum. The Kovac family, for instance, has been working with indigo since 1878, and their shop sells

to the historical atmosphere of the town’s streets, its art life, as well as the Hungarian Open-Air Museum (Szentendrei Szabadtéri Néprajzi Múzeum, Skanzen).

Gastronomy

nothing but blue craftworks. An unusual attraction also worth seeing is the Micro Art Exhibition (microart.hu). At the beginning of the 2nd century, the Romans built a defense system in and around Szentendre. Their reinforced military camp was called Ulcisa Castra, the first known name of the town. Later, the town was renamed after the patron saint of the parish church, the apostle St. Andrew (Szent Endre). Recent decades have seen major changes in the life of Szentendre as a result of the rapidly growing tourism industry, thanks

Located no more than 22 kms from Budapest, Szentendre is an easy destination for a day trip. It’s a sweet place, and it is meant literally: it is the home town of Szamos, with beautiful chocolate shops and a marzipan exhibition. Oh-so delicious ice-cream is served, even salty fudge. The terraces along the Danube feature a number of restaurants and walking along the river is simply unforgettable. According to some sources, coffee was already being appreciated in this town prior to becoming popular in Vienna. Today, there’s a wide choice of cafés offering this refreshing beverage. The local red wine was so popular throughout Europe in the 18th -19th centuries, there was hardly a country in which it was not consumed. When dining, ask for local wine, and sip Hungarian history.

HAJÓSINAS Hajósinas is a unique Bulgarian restaurant in Szentendre. Bulgarian cuisine is based on yogurt, cheese, lamb and vegetables, cumin and dill with national dishes such as Sopska Salad, Kufte, Kebapche, Kavarma and Banica. Bulgaria is famous for its excellent wines such as Terra Tangra and Zagreus, and grape varieties such as Mavrud, Melnik, Gamza, Rubin. Hajósinas is one of the most exciting culinary spots in the region; an excellent choice for family lunches, romantic dinners and business or friendly gatherings!

DÁVID HARANGOZÓ, CAN STOCK PHOTO INC., HAJÓSINAS

2000 Szentendre, Dézsma utca 2/b + 36 20 910 0899 • info@hajosinas.hu www.hajosinas.hu

photos by

RECOMMENDATION Bulgarian lamb soup Sach, Bulgarian grill plate Kufte & kebapche Baked lamb trotters Grilled lamb chops

30 30 tourizm.indd 30

M A Y

2 0 1 9

D I P L O M A C Y

T R A D E

w w w . d t e u r o p e . c o m

5/9/19 11:57 AM

CHAFFINCH AND BUTTONS

NAGYGOMBOS WINERY RE-DESIGNS ITS LABELS Located in Nagygombos, with vineyards spanning 90 hectares in the Mátra wine region, Nagygombos Winery has recently introduced its renewed labels.

wine “For a while, I have been thinking about different ways to reinvent Nagygombos. Finally, all the pieces have fallen into place,” Anna Barta, chief winemaker of the winery, summarizes recent developments. “The time has come to redesign the labels. The commission was given to graphic designer Eszter Laki who came up with a youthful, refreshing imagery.” Eszter Laki has taken part in many exciting projects ranging from books, through coffee shops and restaurants to cosmetic products. “For the basic line in the winery’s portfolio, my intention was to create an easily recognizable, clear-cut, minimalist style. The colors return repeatedly on the individual bottles. The motif of the half button – a reference to the winery’s name (Nagygombos literally translates to ‘Big Buttons’) – forms one complete button when two bottles are placed next to each other,” Eszter describes the composition. “To use the image of a chaffinch as the main motif for the top of the line wines was a joint decision with Anna. Chaffinches learn to sing from their fathers, and Anna is indebted to her father for giving her the inspiration to become a winemaker.”

The wines Belonging to the basic line, Nagygombos Játékos Rosé is a blend that strives to combine the merits of several different varieties and to achieve balance and aroma complexity through skillful blending of its components. Nagygombos Kékfrankos Rosé showcases the elegance of the variety and is a ‘Joker’ when it comes to pairing with food. ‘Illatos’ is a white blend expressing the fruit driven and easygoing character of the Mátra wine region and the same applies to its red sibling. In the premium line, there is only one rosé. Gamay Noir Rosé is the most sophisticated of the three rosés available; fruit aromas in this wine are complemented by extra layers derived from discreet barrel ageing. As a founding member of Magna Mátra Historical Association, the winery considers the preservation and promotion of the indigenous varieties of the Carpathian Basin a special responsibility. In line with this commitment, premium quality ’Magna’ wines will always be crafted from hárslevelű, kékfrankos or kadarka grapes.

FURMINT PHOTO, DRKUKTART

ROSÉ AND SPARKLING PARK MAY 31 – JUNE 2, 2019 www.rosalia.hu

MAY THE ROSÉ BE WITH YOU!

photos by

VÁROSLIGET w w w . d t e u r o p e . c o m

31 wine.indd 31

D I P L O M A C Y

T R A D E

M A Y

2 0 1 9

31 5/9/19 11:58 AM

w w w . d t e u r o p e . c o m

32 takenaka.indd 21

D I P L O M A C Y

T R A D E

F E B R U A R Y

2 0 1 5

21 5/9/19 11:58 AM