Budapest Business Journal 3007

VOL. 30. NUMBER 7

APRIL 8 – APRIL 21, 2022

HUNGARY’S PRACTICAL BUSINESS BI-WEEKLY SINCE 1992 | WWW.BBJ.HU

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SPECIAL REPORT INSIDE THIS ISSUE

Healthcare

Suicides Devastate Family, Friends, and Businesses The At Home in Your Soul Foundation, a largely voluntary group dedicated to helping improve mental health and prevent suicide in Hungary, says greater understanding of who is affected is needed. And businesses can do much more. 17

Healthcare Investors Thrive in Hungary Richter may not exactly be a household name globally (yet), but it is certainly well-known to those involved with healthcare. However, there is life in healthcare beyond this domestic blue-chip; investments in life sciences and medical technology are thriving in Hungary. 18

Campione!

The Smile of Success

SOCIALITE

Life’s A Beach, Even in Hungary: Martin Parr Exhibitioin British photographer Martin Parr, whose “Life’s A Beach” show is at Műcsarnok on Heroes Square in Budapest, has the must-see exhibition of the sixth Budapest Photo Festival, says David Holzer. 22

NEWS

War Threats for Hungarian Industry Hungary’s industrial output way surpassed expectations at the beginning of the year, but the short-term future is overshadowed by the war in Ukraine and ever-rising energy prices. 3

BUSINESS

Giacomo Pedranzini, CEO of Kometa 99 Zrt., won the eighth Expat CEO of the Year title at the Budapest Business Journal’s annual awards gala on March 25.

He becomes the first Italian to win the prize.12 BUSINESS

Investor Ecosystem Honored in Annual HIPA Awards HIPA has handed out six category awards at its Investors of the Year gala event, honoring the achievements of the country’s top investors and local players in 2021.  7

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Budapest Business Journal | April 8 – April 21, 2022

IMPRESSUM

THE EDITOR SAYS

THAT WINNING FEELING: ELECTIONS AND AWARDS

EDITOR-IN-CHIEF: Robin Marshall EDITORIAL CONTRIBUTORS: Balázs Barabás, Zsófia

Czifra, Kester Eddy, Bence Gaál, David Holzer, Christian Keszthelyi, Gary J. Morrell, Nicholas Pongratz, Gergely Sebestyén, Robert Smyth, Bálint Szőnyi, LISTS: BBJ Research (research@bbj.hu)

You would have to have been orbiting someway off from Planet Hungary not to realize there was a general election last week. Even international news outlets such as the BBC were paying close attention to this poll. Not only was long time resident East and Central Europe correspondent Nick Thorpe reporting, but so was Europe editor Katya Adler.

On April 1, Justin Webb, one of the regular presenters of the BBC’s flagship morning radio news program, Today, was hosting from Budapest. Other news operations were equally engaged. Even the Budapest Business Journal played its own small part. While our rolling online live coverage was bringing much higher traffic than usual for a Sunday to our website, other eyes were also following us. A reader in America told us our coverage was being cited by Russia Today. We can’t confirm that, because although we were sent a link, RT’s webservices in Europe are, of course, blocked under EU sanctions introduced in response to the war.

The international interest was partly down to this being the first election within the EU since the invasion of Ukraine.

But I dare say there is also something of a fascination with the tightrope act Prime Minister Viktor Orbán has performed ever since. On the one hand, backing sanctions and extending a noticeably warmer welcome for refugees from the war in 2022 than was ever given to the great wave of migrants in 2015. On the other hand, the warm relations he has enjoyed since he was returned to power in 2010 with Russia’s President Vladimir Putin. Putin, by the way, was among the first to congratulate Orbán on his victory, albeit by the somewhat quaint method of telegram. Presumably, Magyar Posta is still able to receive these and pass them on, although it gave up its own telegram service almost a year ago at the end of April 2021.

The United for Hungary opposition tried to leverage that connection with Russia and Putin, but seemingly failed to

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land the telling blows it needed. Orbán’s campaign was based around the slogan “Peace and Security” (clearly visible in our photo on the lecturn as he gives his victory speech on the pages inside this issue). Once again, he (or his advisers) displayed an uncommon knack for tuning into what most concerns Hungarians. The constant insistence that this election was a choice between peace or war, with only one side, his, able to keep Hungary out of the conflict, resonated hugely, especially in the countryside. And as I have written before, Orbán, and Fidesz, are very much of the countryside. So, it effectively became another singleissue campaign, built on a simple slogan. And it returned a fourth consecutive supermajority. Whatever you agree with his politics or not, you have to acknowledge that Orbán has built an election-winning juggernaut. It is not by accident he is the longest serving leader in the EU, a factoid which may well befuddle Brussels and delight the occupant of the former Carmelite Monastery up in the Castle District. * * * The Prime Minister is not the only winner we should be congratulating. On Friday, March 25, Giacomo Pedranzini, CEO of Kometa 99 Zrt., won the eighth Expat CEO of the Year title at our annual awards gala, held in the Grand Ballroom of the Corinthia Hotel Budapest. An indication of how diverse the expat CEO community has become is that Pedranzini is our first Italian winner. Others have been drawn from Britain, Finland, Germany (we also had one Brazilian-German), the Netherlands and Spain. You’ll find extensive coverage of what proved to be yet another enjoyable evening inside.

Robin Marshall Editor-in-chief

Why Support the BBJ? • Independence. The BBJ’s journalism is dedicated to reporting fact, not politics, and isn’t reliant on advertising from the government of the day, whoever that might be.

• Crisis Management. We have all lived through a once-in-a-century pandemic. But we also face an existential threat through climate change and operate in a period where disruptive technologies offer threats and opportunities.

Now, more than ever, factual business reporting is vital to good decision-making.

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• Value Creation. We have a nearly 30-year history of supporting the development of diversity and sustainability in Hungary’s economy. The fact that we have been a trusted business voice for so long, indeed we were the first English-language publication when we launched back on November 9, 1992, itself has value.

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• Community Building. Whether it is the Budapest Business Journal itself, the Expat CEO award, the Expat CEO gala, the Top Expat CEOs in Hungary publication, or the new Expat CEO Boardroom meeting, we are serious about doing our part to bind this community together.

THEN & NOW

In the color photo from MTI, Tamás Lévai (in red) wrestles against Mihail Bradu of

Moldova in the bronze medal match of the men’s 82 kg group at the European Wrestling Championships in Budapest, April 3, 2022. Lévai eventually won. In the black and white image from the Fortepan public archive, people compete at the pioneer individual

For more information visit budapestbusinessjournal.com

freestyle wrestling competition in 1969 in the upstairs hall of the Vigadó Concert Hall.

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Budapest Business Journal | April 8 – April 21, 2022

News macroscope •

War Poses Uncertainties for Hungarian Industry

Hungary’s industrial output way surpassed expectations at the beginning of the year, but the short-term future is overshadowed by the war in Ukraine and everrising energy prices.

Industrial production in Hungary, 2001-2022 (January-February) Production volume index, same period of previous year equals 100

ZSÓFIA CZIFRA

The volume of industrial production in Hungary grew by 4.5% year-on-year in February. The working day adjusted index matches the non-adjusted one, according to the latest data published by the Central Statistical Office (KSH). As for seasonally and working-day adjusted data, the industrial output was 1.6% higher than in January 2022.

The majority of manufacturing subsections contributed to the growth; however, the manufacture of transport equipment, which represents the most significant weight, slightly declined, KSH said. Better news came from the computer, electronic and optical products and the food products, beverages and tobacco subsections; after stagnation in the previous month, both rose in February, with the latter above the industrial average.

In the first two months of the year, production was 6.6% higher than in the same period of 2021. According to seasonally and working-day adjusted indices, industrial output in February

wasabove 1.6%

the level of the previous month.

Gergely Suppan, a senior analyst at Takarékbank, believes that supply and supplier problems may have eased in February, meaning industrial production grew far beyond all expectations. GDP growth could also have accelerated in the first quarter, but the uncertainties due to the outbreak of the war in Ukraine are very significant, he added.

Although vehicle manufacturing slightly decreased in February, automakers are confident that the chip shortage could be substantially alleviated in the second half of the year due to new chip-making capacities, which could lead to a sharp surge in industrial production, he emphasizes.

Source:

Due to the price cap on fuel prices, the domestic oil refinery is operating at full capacity, which may somewhat make up for the weaker performance of other sectors. In the medium-term, the Hungarian economy could benefit significantly from developing defense industrial capacities, as a significant increase in military expenditure is expected in the coming years.

This year, due to base effects and the deployment of new capacities, but taking significant uncertainties into account, Takarékbank’s analysts expect industrial production to grow by around 5% after a 9.6% expansion in 2021.

Continued Surprise

According to Dániel Molnár, a macroeconomic analyst at Századvég Gazdaságkutató Zrt., industry continued to surprise analysts in February. The increase is even more prominent given the slight decline in automotive performance, which was offset by other sub-sectors.

Looking ahead, the continued development of industrial production is compromised by significant risks. The war is leading to supply chain disruption, and rising energy prices are also hurting industrial companies. These effects are expected to be reflected in the March data. However, the industrial contribution to Hungary’s economic growth may still be positive in the first quarter.

From the second quarter on, however, the critical questions become how long the war will last, how long will high energy prices persist, and how much will this impede the volume of industrial production, he said.

Péter Virovácz, a senior analyst at ING Bank, emphasized that the Hungarian industry got back to its feet at the beginning of the year and showed a trend-like growth for the first time in a long time. The outbreak of the war at the end of February presumably has not yet had a significant effect on industrial production that would show up in these figures, but he expects a much weaker performance in March.

He sees that, despite the robust expansion in January-February, it has become unsustainable as a result of the war and the sanctions imposed on Russia. The key question for the coming months will be whether there will be a similar level of industrial shutdown as at the low point of the coronavirus crisis.

The recovery potential was relatively high at that time, as the factories could return to production. However, a significant part of the labor force has left Ukraine, which has been integrated into the global value chain, and the war will destroy capital, so it may take longer to replace the parts.

production compared to the previous month, making the annual volume index more favorable than previously thought. However, the outlook is uncertain, he agrees.

The positive data from the beginning of the year suggests that supply-side tensions may have eased somewhat, which presumably helped vehicle production the most. However, due to the Russo-Ukrainian war, supply problems and component shortages could worsen again, holding back the sector’s performance in the coming months.

He added that, in the medium term, the transformation of the automotive industry involves risks. Most domestic automotive players specialize in producing and supplying conventional motor vehicles and their components, which will become increasingly redundant over time, while emerging alternative drives are made with significantly fewer parts.

For the manufacturing industry as a whole, significant capacity expansions recently announced could offset the uncertainties, he said.

Alternative Supplies

Industrial companies are exploring alternative sources of supply, which can improve supply-side problems while also bringing significantly higher costs.

Therefore, there is some confidence for the coming months on the production side, while there is further upward pressure on inflation. Industry’s performance this year is unpredictable, but it is clear that the sector faces another year of extreme shocks, Virovácz summed up.

Erste Bank’s analyst János Nagy was surprised by the increase in industrial

Numbers to Watch in the Coming Weeks Today (April 8), the Central Statistical Office (KSH) publishes March consumer prices. On April 13, February construction data will be released, and on the same day, KSH will also publish its second reading of February industrial production.

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Budapest Business Journal | April 8 – April 21, 2022

Ukraine

Half a Million Ukrainian Refugees in Hungary Some 542,000 people fleeing the war in Ukraine had arrived in Hungary as of March 30, according to the prime minister’s chief advisor for internal security György Bakondi. He told TV news channel M1 that Hungary had delivered donations worth HUF 3 billion to Ukraine.

NICHOLAS PONGRATZ

Meanwhile, aid for refugees in Hungary could be as high as several billion forints, based on information provided by the largest Hungarian aid organizations.

Some 140 businesses had indicated their willingness to cooperate with the Red Cross, but many have also been offering support through volunteering.

To facilitate Hungary’s assistance for Ukrainian refugees, Prime Minister Viktor Orbán sent an open letter to European Commission President Ursula von der Leyen on March 18 requesting access to European Union funding that had been restricted. The Prime Minister’s press chief Bertalan Havasi told state news agency MTI in Brussels on March 25 that the EC had acceded to the request and that Hungary would receive EUR 300 million in support.

During the European Union and NATO summits in Brussels, Orbán told public media on March 26 that Hungary would help those in need because of the war in Ukraine but wants to “assert and defend its own national interests.”

Crisis

Roundup characterizing the market sentiment.

But while the construction sector had at least been energized recently, Hungary’s tourism sector, badly affected by two years of the coronavirus pandemic, is now contending with another global crisis threatening livelihoods due to rising energy prices and the shortage of Russian and Ukrainian tourists.

Cardinal Péter Erdő, Archbishop of Esztergom and Budapest (at right), hands over a microbus loaded with food to Gábor Écsy, national director of Katolikus Karitász (Catholic Charity, at left) in the courtyard of the Primate’s Palace in Buda on April 5. The Archdiocese of Esztergom-Budapest is supporting Hungarians in the Transcarpathia region of Ukraine through the donation. Photo by Attila Kovács / MTI Following a meeting of foreign ministers of NATO’s Eastern European members in Bratislava on March 31, Minister of Foreign Affairs and Trade Péter Szijjártó reiterated Hungary’s positions, insisting on its decision not to supply arms to Ukraine, not to allow arms transfers through its territory and to oppose sanctions on Russian oil and gas imports.

According to earlier estimates, the number of employees of Ukrainian nationality working in Hungary stood between 50,000 and 70,000. While the vast majority of them had been in Hungary for several years before the outbreak of the war, mainly in the fields of construction, electronics, manufacturing and hospitality, the settlement of hundreds of thousands of additional civilians that are arriving as a result of the Ukrainian-Russian conflict is now imposing a greater economic and social toll on Hungary.

In its quarterly Inflation Report, the National Bank of Hungary (MNB) said economic activity in the coming quarters would be “strongly influenced” by the war

in Ukraine, despite the country’s “dynamic” economic growth early in the year.

“The repercussions of the war have their strongest restraining effect on economic growth directly through trade channels and disruptions in international production chains,” the MNB said. “Rising commodity prices and corporate costs, as well as the generally high level of uncertainty, also restrain growth,” the central bank added, dropping its forecast for 2022 GDP growth to 2.5-4.5% from 4-5%.

Stagnation

Hungarian construction industry association Évosz also projected that the sector would stagnate this year because of the impact of the war in Ukraine. Évosz said state orders are expected to fall by around HUF 500 billion, while household orders remain flat.

“Developers are in a worse mood than buyers,” Tamás Kricsfalussy, sales director at construction company Metrodom Group, told business daily Világgazdaság [Global Economy],

As this issue was going to print, NATO Foreign Ministers were meeting in Brussels (April 6-7).

“Allies are stepping up their support for Ukraine’s right to defend itself, including with anti-tank weapons, air-defense systems, and other equipment, as well as increased humanitarian assistance and financial aid,” the nato.int website said ahead of the meeting. The ministers were to be joined by counterparts from Ukraine, the European Union, Finland, Georgia, and Sweden, and by NATO’s AsiaPacific partners: Australia, Japan, New Zealand and the Republic of Korea. Further sanctions will be discussed, with oil and gas likely to come up again, although no EU embargo is expected at this time. Hungary’s position is clear: according to washingtonpost. com, it gets 74% of its crude oil from Russia. The Christian Scientist Monitor reports that Russia supplies 80% of Hungary’s gas. The country signed a 15-year deal with Gazprom last year; as a result, its gas is cheaper than in much of the rest of Europe.

But Germany and Italy also have significant exposure to Russian fossil fuels. Analysts believe a ban on Russian coal might follow, although this is relatively insignificant for EU markets.

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News | 5

Despite Challenges, Budapest Remains Popular Hotel Development, Investment Location the last two years due to bank moratoria; the question is how long they can survive if and when they have to start paying their loan obligations,” he warns.

“With bank moratoria, you could get by with 25-30% occupancy, but with loan obligations looming, you need at least 50% occupancy and increasing average rates; not an easy task these days,” Takács adds.

Officially, there are approximately 4,000 rooms in the pipeline for 2022, which seems an impressive figure; however, owners’ decisions and construction delays will probably mean the final number is much lower. He expects around

Budapest was the third most sought-after CEE destination based on a survey of hotel operators, Cushman & Wakefield says in revealing its “Outlook 2022 Hungary” report.

2,500 rooms

GARY J. MORRELL

“The impact of the COVID-19 pandemic on the hospitality sector was deep and sudden across all markets and hotel tiers. Nonetheless, while markets prove their ability to recover, investors, operators, and other industry stakeholders remain confident about a positive market recovery,” the consultancy reports.

“Retrospectively, Budapest is demonstrating strong capabilities for recovery, currently being the best performing market among other CEE capitals. At the same time, operators and investors continue to be highly interested in establishing a footprint and/or further growing their market share in Budapest due to the city’s healthy market fundamentals entering COVID-19,” Cushman & Wakefield says.

According to the report, there are about 4,200 rooms in the Budapest pipeline, including 320 rooms under

The listed Drechsler Palace on Andrássy út, which is undergoing restoration and renovation and is due to be reborn as the W Hotel Budapest this year. refurbishment that are expected to open by 2024. This represents a

16.7% supply

growth over the next three years.

However, development challenges could cause delays in hotel openings.

Further, several online short-term rental platforms are rivaling hotels.

In 2021, Budapest had the secondbest RevPAR (revenue per available room) improvement rate in CEE at plus 61%, above the European average.

The measurement is calculated by multiplying a hotel room rate by its occupation rate.

Questions remain as to when there will be a full recovery amid more uncertainty due to the war in Ukraine.

Uncertainty Looms

“When COVID started two years ago, we were among those that predicted that the recovery would take three to four years. Without the war in Ukraine, this would likely have been possible, but now everything is uncertain again,” comments Péter Takács, partner at Newmark VLK Hungary.

“I do not think anyone can tell when the recovery is finally going to happen.

Hotels have learned to operate in the leanest possible way during the last two years, so I am sure they will be able to adapt again. Most hotels could survive

Cry God for England, Harry and St. George!

The English community in Hungary, including British Ambassador Paul Fox, will come together at a special St. George’s Day event at the Corinthia Hotel Budapest on April 30 that will also mark the Platinum Jubilee of Her Majesty Queen Elizabeth II. Other nations are invited to join in with the fun, the organizers say.

BBJ STAFF

Notably, the event will also raise funds to help Ukrainian children and their families. A raffle and auction will be hosted

by UNICEF Champion Ivett Angyal and presented by TV star Zsuzsa Demcsák.

All the proceeds will go to the Hungarian National Committee of UNICEF.

Guests of honor at the event, being organized

by XpatLoop.com, which is also behind the annual November fireworks party and includes British Ambassador Fox and his peers, the Ukrainian Ambassador to Hungary Lyubov Nepop, and the Irish Ambassador to Hungary, Kosovo and Montenegro Ronan Gargan, as well as Antónia Mészáros, executive director of UNICEF Hungary. Tickets cost from HUF 14,000 and are available via the ticket site

funcode.hu. The cover price includes many complimentary drinks including English whisky and gin tasting, St George’s English Beer, and a 007 Vodka Martini Bar St. George (Szent György in Hungarian) has been the patron saint of England since at least the 14th century, according to Wikipedia, although the English have to share him with Bulgaria, Ethiopia, Georgia, Portugal and Romania, as well as several Spanish

to be delivered, with an even split between Budapest and the rest of the country.

Cushman & Wakefield says the expectation is still that the hotel investment market for Budapest will pick up during 2022. It is currently involved in several transactions that are expected to close this year.

“The risk for Budapest hotels now is that, with the war in Ukraine, travelers tend to avoid an entire region for leisure and business,” Takács explains.

“The risk for countryside hotels is the inflation and the domestic economic measures that are looming on the horizon and their potential impact on local demand, which is a key driver of these properties, not to mention the potential long-term loss of Russian and Ukrainian business to health and medical resorts,” he notes.

“Just when we seemed to be leaving COVID behind and getting on the way to recovery, along comes a new uncertainty.

In this situation, only the fittest will survive,” Takács warns.

communities. Supposedly a Roman soldier, he was sentenced to death in 303 C.E. for refusing to give up his Christian faith, though he is best known in popular folklore for slaying a dragon.

The program for the evening includes cheese and wine tasting accompanied by classical English music by Purcell, Handel, and others, a “funny poetry” speech about Shakespeare

by British performer, artistic director, and founder of the Scallabouche Theater Company Alexis Latham, and a chance to discuss what is possibly the quintessentially English sport with members of the Hungarian Cricket Association.

Musical highlights include a rendition of “Jerusalem,” a rousing hymn beloved by English cricket and rugby fans, with words from a William Blake poem put to music by Hubert Parry. Expat covers Band The Vibe will play popular English indie and pop songs from 9 p.m., while DJ (Andrew) Woods will spin English pop, rock, and dance hits from the last 60 years from 11 p.m. until midnight.

Much more information can be found on the xpatloop.com website.

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Budapest Business Journal | April 8 – April 21, 2022

Orbán’s Fidesz-KDNP Steamrollers to 4th Consecutive Supermajority Hungary’s governing coalition, led by incumbent Prime Minister Viktor Orbán, won an overwhelming victory in parliamentary elections held on April 3, out-performing even the most optimistic analysts’ projections to win a fourth consecutive constitutional supermajority in the next parliament.

KESTER EDDY

With nearly 99% of the vote counted, Fidesz – whose Christian Democrat People’s Party (KDNP) partner is generally seen as a satellite party – routed the opposition, winning a record 53% of the vote and ready to claim 88 out of the crucial 106 individual constituencies. With 47 seats from the party list, Fidesz won 135 of the 199 MP seats, leading to a resounding 67.8% majority in the house. Voter turnout was 69.5% As expected, the united opposition dominated the capital, winning 16 of Budapest’s 18 constituencies, but performed miserably in the provinces, with victory in just two more individual constituencies, in the southern cities of Pécs and Szeged.

Péter Márki-Zay, the opposition alliance prime ministerial candidate, lost to Fidesz heavyweight János Lázár in his home town of Hódmezővásárhely.

Prime Minister Viktor Orbán, President of Fidesz, delivers a victory speech to the Fidesz-KDNP faithful at the Bálna building on April 3, flanked by key party allies. Photo by Zoltán Fischer / MTI / Prime Minister’s Press Office.

The six-party United for Hungary alliance garnered 56 MPs, a mere 28.1% of parliament. Mi Hazánk (Our Homeland), the radical right remnant of Jobbik, also surprised analysts’ projections to win 6.2% of the vote, giving them seven MPs, with the remaining seat awarded to the ethnic German grouping.

“We have won an enormous victory, so big that it can be seen from the moon, certainly from Brussels,” the prime minister joked in his post-election speech to chanting supporters. Thanking all who turned out in support, he paid particular attention to “Hungarians watching from across the border” for their assistance, singling out ethnic kin in Ukraine with encouragement that “the motherland is with them.”

The prime minister described his victory as a right-wing triumph against a powerful coalition of international, leftliberal forces ranging from Brussels and media groups to President Volodymyr Zelensky of Ukraine. (The OSCE found the election was “marred” by several faults, including a blurred line between state and party and media bias. See “OSCE: Elections Well run, but Undermined by ‘Absence of Level Playing Field.’”)

More of the Same?

By the print deadline for this paper, Orbán had still not released any details of his next cabinet or its plans. Given the size of his victory and indications from his post-election address, he is expected to continue with a similar administration and right-wing, nationalist policies.

Post-election, analysts concluded that Fidesz had exploited fears over the war in Ukraine. The prime minister’s focus on “peace” and keeping Hungary out of the war had resonated with many voters.

In addition, although the leaders of the six parties were able to work together effectively, Jobbik’s former voters failed to rally behind their guidance, many either voting for Fidesz or remaining with the splinter radical-right members who formed the Our Homeland party, according to an analysis by Political Capital, a Budapest-based think tank.

“It seems that it was an illusion to suppose that the majority of Jobbik’s 2018 electorate [comprising 1.1 million voters] would be willing to support the opposition cooperation. The majority of them could have ended up voting for Fidesz or Mi Hazánk,” the analysis

OSCE: Elections Well run, but Undermined by ‘Absence of Level Playing Field’ Hungary’s parliamentary elections offered voters distinct alternatives and were well run, but while competitive, the process was marred by the pervasive overlapping of government and ruling coalition’s messaging that blurred the line between state and party, as well as by media bias and opaque campaign funding, the Organization for Cooperation and Security in Europe (OSCE) declared at a press conference on April 4.

The OSCE, most unusually for an election in a member state of the European Union, had sent a full observer mission, comprising 312 persons in total, to monitor the Hungarian elections.

The mission found that while the legal framework formed an adequate

basis to run democratic elections, what it termed “a number of key aspects fall short of international standards,” noting that “the secrecy of the vote was often compromised, particularly in overcrowded polling stations.”

The mission stated that Hungary’s media is sharply divided in an increasingly concentrated market.

“Ahead of the elections, biased and unbalanced news coverage permeated the public and many private media outlets, mostly to the benefit of the ruling party,” observers concluded. The OECD emphasized that voters’ ability to make an informed choice was, in addition, limited by “the absence of debate between the main contestants.”

Jillian Stirk, head of the observation mission, said, “Numerous shortcomings already became clear in the period running up to the vote, from the biased media through to the all-pervasive linkage of state and party.”

She added, perhaps optimistically, “I very much hope that the government takes the opportunity offered by the presence of our observation team to work towards improving the democratic process for the future of all citizens.”

The government’s International Communications Office, apparently oblivious to most of the OSCE’s critical remarks, issued a statement headlined “Case Closed: OSCE Takes no Real Issue With the Elections.”

A ‘United’ Opposition Found Ultimately Divided Despite the initial, perceived success in forming a six-party opposition alliance, it had to battle with alternative parties, which gained ground among voters disaffected with both the government and the official opposition coalition.

As a result, even in districts thought to be reasonably safe opposition seats, the effect was to split the “greater opposition” vote, render the alliance ineffective and enable Fidesz victories. In this respect, the spoof Two-Tailed Dog Party and the radical-right Our Homeland played crucial roles, the latter in particular by retaining former Jobbik voters.

Take, for example, Budakeszi, a district just to the west of Budapest where the alliance candidate was the popular local green campaigner, Bernadett Szél. Though she attracted in excess of 31,200 votes, she lost to Fidesz’ Tamás Menczer, who triumphed with 33,615 ballots, or 47.5% of the active electorate.

But in the same race, Our Homeland and the Two-Tailed Dog together garnered 4,900 votes.

Without their participation, Szél would have defeated her opponent had she attracted just 50% of those anti-government votes.

concluded. (See “A ‘United’ Opposition Found Ultimately Divided.”)

Furthermore, Political Capital argues that Márki-Zay “paralyzed” the campaign when he demanded a seventh parliamentary group after the election, appearing as a rival to his six party allies.

“This quickly made everyone forget the success of the primaries, and the results indicate that this even confused opposition voters,” the think tank reasoned. In post-election comments, Márki-Zay implied he would not take up his parliamentary seat but continue in his role as mayor of Hódmezővásárhely, in southeast Hungary.

However, it continued, somewhat incongruously, by reasoning that “the fact that OSCE experts take issue with the absence of a level playing field,” media bias, and “an opacity of campaign funding” can be considered business as usual,” adding sarcastically: “We couldn’t have possibly expected them to go down without putting up at least a little fight.”

The office asked: But what if OSCE has been looking for election and campaign fraud in the wrong place this entire time? Maybe they should have looked at what it termed “the shady financiers” behind Márki-Zay’s text messaging campaign “based on illicitly obtained personal information,” something the OSCE relegated to a mere footnote in their report.

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Budapest Business Journal | April 8 – April 21, 2022

Business

Investor Ecosystem Honored in Annual HIPA Awards

The Hungarian Investment Promotion Agency has handed out six category awards at its Investors of the Year gala event, honoring the achievements of the country’s top investors and local players in 2021. The prizes were presented by Minister of Foreign Affairs and Trade Péter Szijjártó and Róbert Ésik, the CEO of HIPA.

Electronics Top

A sectoral breakdown shows that electronics, including battery manufacturing, topped the charts: it represented over half (51.9%) of the investment volume. The second and third most foreign capital volume was directed towards automotive (12.5%) and food (11.1%), respectively.

Moreover, agreements were made with 19 companies in high valueadded service activities, including business services, infocommunication, and R&D, which promises well-paid The six prize winners with HIPA CEO Róbert Ésik jobs for skilled labor on a mass scale, (fourth from left) and Minister of Foreign Affairs HIPA says. Also noteworthy was and Trade Péter Szijjártó (fourth from right). that investments were spread across a balanced geographic distribution: at least two new large projects were EUR 5.9 billion, and the largest single brought to every county, bar one.

BBJ STAFF FDI greenfield investment to date was Successful investments require an also made by South Korea’s SK On, appropriate site and a strong supplier 2021 was a record-breaking year in worth EUR 1.9 bln. network; in recognition of this, the terms of investment volume for HIPAThe all-time high investment “Industrial Park of the Year” and “Supplier guided projects. Total investment volume came from 422 projects that of the Year” awards honored the best volume reached a new high of nearly created 14,000 new jobs. Of those, performing stakeholders in each category.

Winners of the 2021 HIPA Investors of the Year Awards Largest Greenfield Investment of the Year SK On Hungary One of the world’s leading battery manufacturers, Korea’s SK On, has launched the most significant single greenfield FDI project to date in Hungary.

The EUR 1.9 billion investment in Iváncsa (51 km south of Budapest by road) will be its third site in the country, in addition to their two other factories in Komárom (91 km northwest). The new production base will have an annual capacity of 30 GWh and create 2,500 new jobs.

The project enables the manufacturing of 430,000 e-cars per year. The facility of 80 hectares will also allow the automotive battery production capacities of SK On to be multiplied, further strengthening Hungary’s role in e-mobility.

Business Expansion of the Year Becton Dickinson Hungary Thanks to a EUR 188 million investment by American multinational Becton Dickinson, one of the world’s leading medical technology companies, the production of prefilled glass syringes can be doubled at its factory in Tatabánya (60 km east of the capital). The project, which will create more than 300 new jobs, will result in

96 large projects accounted for investments of up to EUR 5.3 bln, more than half of which are linked to South Korea alone. Asian investors overall were responsible for roughly 60% of FDI. In total, eight deals worth more than EUR 100 million were closed.

Most projects were brought to Hungary

by Germany, which was involved in 24 deals, with the United States second with 11. Korean companies excelled not only in this regard, finishing third with nine projects but also topped the job creation category with some 3,500 new jobs.

German and American investors were the other top employment creators last year.

three new production lines, expected to be operational by the end of 2024.

With a presence in 190 countries, BD opened its prefilled glass syringe manufacturing plant in Hungary in 2009 and has been continuously developing ever since. Having a history of 125 years, the U.S. company will invest USD 1.2 bln globally in the coming years to improve and expand its manufacturing technology; the Tatabánya project represents nearly one-fifth of that development program.

Business Services Center Investment of the Year EY Global Delivery Services Hungary London-based EY is a Big Four company, one of the leading auditing and business consulting firms globally, with more than 700 offices in 150 countries worldwide, among them Hungary. EY Global Delivery Services is establishing a new global service center in the Hungarian capital, focusing on tax consultancy-related services.

The Budapest GDS center will primarily support EY companies operating in Europe, the Middle East and Africa. By the end of 2024, the company is planning to hire 500 employees for the new facility, in connection with which it will implement a training program worth more than EUR 2 mln.

R&D Investment of the Year Ericsson Magyarország Having been operating in Hungary for more than 30 years, Sweden’s Ericsson set up its first research and development division here in 1991.

Ericsson Hungary announced its latest R&D project, worth close to EUR 8.4 mln, in 2021, thanks to which the next generation of cloud-based Internet Protocol Multimedia Core Network Subsystems (IMS) will be developed in Budapest. IMS controls and facilitates modern voice, video and conference calls and messaging in IP-based packetswitched communications networks. The investment will be realized by September of this year and will create 200 jobs requiring a higher education diploma.

Industrial Park of the Year Debrecen, Southern Economic Zone In the spotlight of rising FDI interest, Hungary’s second city Debrecen (222 km east of Budapest) invites investors to settle in four industrial parks on 1,400 hectares, the biggest of which is the 710-hectare Southern Economic Zone. The companies that have set up shop in the industrial park located in the Southern part of Debrecen since 2016 have announced

foreign direct investments worth nearly EUR 1.3 bln, creating some 3,200 jobs.

Among the top results in 2021 is the groundbreaking of SemCorp Group’s first separator foil plant outside of China, worth EUR 183 million, and the announcement by Vitesco Technology of a EUR 120 mln expansion. Based on all these developments, Debrecen made the Top 10 global cities with the best investment promotion potential in 2021 in a ranking run by fDi Intelligence, a division of the Financial Times.

Supplier of the Year Cascade Engineering Europe Cascade Engineering Europe, a company with American ownership but under Hungarian management, operates in Halásztelek (just 20.5 km south of central Budapest) and carries out molding activities, primarily for the automotive sector. With a staff of 400, Cascade products are used in the vehicles of every OEM, with Volkswagen-Audi Group, BMW and Daimler being among the primary customers. The company was even able to grow during the pandemic, not least because it managed to align its profile to the needs of electromobility, manufacturing heating and cooling battery line components, as well as unique plastic components for battery modules.

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For the second time in three years, PwC Hungary’s annual CEO Survey has been overtaken by unforeseeable (and hopefully shortterm) events. But that doesn’t mean the longterm strategic threads that run through the study are not valid.

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Budapest Business Journal | April 8 – April 21, 2022

CEOs Should Maintain and Build on the Trust They Have Earned

ROBIN MARSHALL

At the official launch of the 11th such study on Thursday, March 31, partner and event host Barbara Koncz recalled that the last time people met in person for the annual PwC event had been March 2020, when the survey launch had also been one of the final face-to-face gatherings before the COVID lockdowns came in.

In late 2019, when research for the 2020 survey was conducted, no one had seen the imminent threat of a pandemic around the corner. Now, lightning had struck a second time. Fieldwork for the

2022 survey

was conducted between October and December 2021. Although geopolitical

tensions between Russia and Ukraine “although Hungarian CEOs put were evident then, no one seriously the opportunity for geopolitical risks thought war was likely until Vladimir much higher than their global peers.”

Putin ordered his forces to invade.

Even in Budapest, however, it Perhaps there was something in the air, was not placed as a top-three risk. however, at least for Hungarian CEOs, That dubious pleasure went, in much closer to that unease than most descending order, to health, of their global peers. “Nobody could be macroeconomic volatility, and cyber. prepared for what happened,” recalled “It is clear from the responses that Tamás Lőcsei, CEO of PwC Hungary, cyber risks could inhibit innovation

as well as sales, while health risks and macroeconomic volatility could inhibit CEOs’ ability to attract and retain key talent and to sell products and services,” Koncz noted in the official PwC press release accompanying the survey.

“Those who worry about geopolitical conflict anticipate that sales could be impacted, followed by the ability to develop services. So even before the war, most CEOs saw supply chain disruptions as the most likely consequence of these threats,” she added.

Cautious Hungarians

But perhaps Hungarian CEOs were just embracing the natural pessimism for which the nation is supposed to be famous. Even before the war, local CEOs were much more cautious than their global peers about their outlook for 2022. While 77% of global CEOs said they expected global economic growth to improve during the year ahead, only 46% of Hungarian CEOs did so (a marked fall from 65% in the previous year); the majority expected growth to stagnate or decline.

Optimism about the powerhouse of Hungarian economic growth also waned, with more than half of Hungarian CEOs saying that a slowdown or stagnation was more likely in 2022.

Back at the event, Lőcsei noted that, amid this pessimism, and the plethora of risks out there, the past couple of years have at least proved that CEOs could cope with the unexpected. “This has drawn us out of our comfort zones. We had to learn a lot.” That is no bad thing. PwC has always advocated life-long learning and has long held that CEOs have to be multitaskers.

But they also have to create and then be good stewards of communities of trust with their colleagues. “We will be successful if we can create communities that can solve problems,” he told the audience.

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Budapest Business Journal | April 8 – April 21, 2022

One interesting statistic Koncz highlighted from the 2022 survey was that of the

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Hungarian

CEOs interviewed, one-fifth were women, the highest proportion to date.

That number was statistically significant enough to see if there were any differences in answers based on gender.

For the record, there were not, just as there wasn’t any divergence based on industry or age, she added.

Other key takeaways from the survey included the fact that strategic company objectives are often not part of CEOs’ performance metrics, and that nearly half of Hungarian CEOs say they are unprepared for global tax policy changes.

Climate change, and the need to take action to combat it, was another potentially mission-critical field, of course, but it also threw up some interesting questions.

Inaction on climate change is widespread, the CEOs reported, despite a public background that sees clients and employees calling on companies to take urgent and decisive steps. PwC found that only 38% of Hungarian companies have addressed the issue meaningfully. One-fifth of companies aim for net-zero, which means cutting greenhouse gas emissions to as close to zero as possible, while 35% have committed to achieving carbon neutrality.

Lasting Trust

In addition to curbing climate change, the main reason for these commitments is to meet client and investor expectations.

Meeting employee expectations were seen as the least important motivator identified

by Hungarian CEOs. Based on the survey findings, Koncz highlighted that, while CEOs’ performance is still assessed primarily against traditional business metrics, there is rising interest among investors and employees in long-term ESG goals. CEOs face a twofold challenge: they must meet both business and stakeholder expectations to maintain lasting trust.

“Trust” was perhaps the core theme both on the evening and in the survey.

Consulting director at PwC Hungary, identified government and the media [ahem] as the least trusted organizations and institutions, while NGOs and businesses were in the most.

Lőcsei also reflected on this in the official press statement “In In a typically light-hearted presentation, an increasingly volatile economic Róbert Bencze, the People & Organization environment, members of the business It may also be the basis for the best news for Hungarian CEOs. According to the Edelman Trust Barometer, faith in institutions and government decisionmakers worldwide continued to decline

2021.

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community have gradually risen above other players in terms of the trust placed in them,” he argued. “CEOs and other business leaders remain the link of trust between the private and public sectors. They are the ones who are accessible and more directly accountable for their words and actions, especially in today’s tight labor market.

Meeting these expectations requires more responsibility and new roles from us leaders,” he added.

But on the night of the launch, it was Bencze who had the best line, something from a priest he said he had read on the internet. It is also excellent advice for any CEO: “Remember, if you think you are a leader, but nobody is following you, you are just somebody who went out for a walk.”

Aside from the PwC Hungary speakers, the official launch event also included three guest presenters: Vilmos Csányi, professor and chair of the department of ethology at Eötvös Loránd University, Budapest: “Belief, Trust, Community;” clinical psychologist Noémi Orvos-Tóth: “The Leader and his/her Fears;” and Katalin Sipos, director of WWF Hungary: “About the Future of the Earth.”

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Budapest Business Journal | April 8 – April 21, 2022

From Rubble to PetroRuble: Towards the Birth of a New Monetary Order?

The recent sanctions against Russia catalyzed a sudden fall of the Russian currency from 81 rubles to the U.S. dollar to 150. Although the invasion of Ukraine has started badly for the Russians, and the sanctions continued to take their toll, between March 7 and April 3, the ruble miraculously recovered to 85 rubles to the dollar. Les Nemethy looks at what happened.

LES NEMETHY

The Corporate Finance Column Natural Allies

Decline of the US Dollar as Currency Used in International Trade 80 70 US dollar Euro British pound Japanese yen Chinese renminbi

60 50 40 30 20 10

2005

2010

2015

2020

0

Source: IMF COFER

its control of the U.S. dollar payment system, the Russians to their strength in energy (being the world’s largest gas exporter and third largest oil exporter).

Zoltan Pozsar, a well-known Credit Suisse analyst and former U.S. Treasury official, stated that we are entering a new monetary order, which he calls Bretton Woods III: “Commodities are real resources [….] and resource inequality cannot be addressed by QE [.…] you can print money, but not oil to heat or wheat to eat.”

For Pozsar, Bretton Woods I was the post-World War II agreement that established a gold-backed U.S. dollar as a global reserve currency. Bretton Woods II began in 1971 when Nixon “temporarily” suspended the gold backing of the U.S. dollar.

Very simply put, Russia declared that, from April 1, gas deliveries to “unfriendly” countries must be paid in rubles or gold. The Russian central bank also agreed to buy gold at 5,000 rubles per gram, effectively linking the ruble to both gold and oil.

The Russians were able to strengthen their currency by (a) increasing demand for rubles (gas importers had to buy rubles to buy gas) and (b) tying it to gold.

Russia has announced that this will be the New World Order prototype for other commodities in the future (for example, wheat, fertilizer, etc.) “We are [now] witnessing the birth of Bretton Woods III, a new world Terms of trade also shifted massively to [monetary] order centered on commodityRussia’s advantage (the prices of energy based currencies in the East that will and food-related commodities, Russia’s probably weaken the eurodollar system main exports, have soared). and contribute to inflationary forces in In this financial war, each side played the West. [.…] It used to be as simple as to its strength: the United States to

‘our currency, your problem.’ Now it’s ‘our commodity, your problem,’” Pozsar says.

Pozsar believes that the Bretton Woods III era will be characterized by higher inflation and interest rates. Governments will substitute foreign currency reserves for commodity reserves. Demand for dollars will be lower, as fewer will be held in reserves, and more trade will be made in other currencies.

The chart above illustrates the gradual decline in past years of the U.S. dollar as a currency used in international trade: According to “The Stealth Erosion of Dollar Dominance,” a very recent IMF Working Paper, “reserve managers have moved out of dollars in two directions, with one quarter headed into the renminbi and three quarters into currencies of smaller countries that have traditionally played a limited role as reserve assets.”

There is a fear that the seizure of Russian reserve assets may accelerate the trend.

According to Pozsar, “When this crisis (and war) is over, the U.S. dollar should be much weaker and, on the flip side, the renminbi much stronger, backed by a basket of commodities.”

In my opinion, the Chinese are much more natural allies with Russia in this form of monetary/commodity warfare than allies in the military sense. You may recall that, in February, Putin and Xi signed a joint statement calling for a new world order. The Chinese have made no secret of their desire to carve out a global role for the yuan.

If Bretton Woods III were to emerge over time, it would undermine the exorbitant privilege of the U.S. dollar’s current status as the world’s reserve currency.

Furthermore, if Pozsar is correct, the deflationary impulse of Bretton Woods II (globalization, free trade, etc.) will turn into an inflationary one (autarky, duplication of supply chains, etc.)

In no way should this article be interpreted as predicting the sudden collapse of the U.S. dollar in the shortto medium-term. The dollar remains extremely dominant, both in trade and reserve currency functions; a more likely scenario is long-term erosion.

Currently, the Chinese and Russians seem to be playing the currency game more creatively than the Americans. The Fed has painted itself into a corner on inflation. We are still in the early stages of a long-term decline of the U.S. dollar.

While the trend is inescapable, it is not irreversible: an economic implosion in Russia or a real estate crisis in China, for example, could slow or reverse it.

Think of the world monetary order today as a game, where the rules are changing all the time, not suddenly but gradually, and where there is no referee. You have to figure out how the practices evolve as you go along, adding to the game’s challenge.

Les Nemethy is CEO of Euro-Phoenix Financial Advisers Ltd. (www.europhoenix.com), a Central European corporate finance firm. He is a former World Banker, author of Business Exit Planning (www.businessexitplanningbook. com), and a previous president of the American Chamber of Commerce in Hungary.

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EIB Group Invests Record Amount of EUR 891 mln in Hungary in 2021 The European Investment Bank Group, made up of the European Investment Bank (EIB) and the European Investment Fund (EIF), says it increased its investments in Hungary in 2021 and provided a record EUR 891 million to the local economy.

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Breaking down the contributions, the EIB increased the volume of its operations in Hungary for the fifth consecutive year in lending of EUR 880 mln. The EIF, meanwhile, invested EUR 11 mln in the local economy: EUR 5 mln in equity and EUR 6 mln in guarantees to local private and public banks. Since 2017, the EIF has invested EUR 306.5 mln in equity (EUR 120.5 mln), guarantees (EUR 185.4 mln) and inclusive finance (EUR 600,000).

The EIB Group says its activities in Hungary

channeled

EUR 701 mln

into the faster recovery of the Hungarian economy and fueled the public sector’s response to COVID-19.

“The EIB Group has again proven that we are a reliable partner for Hungary even in the most difficult of times,” says EIB vice president Teresa Czerwinska, who is in charge of operations in Hungary.

“Our record-high results for 2021 are proof of our commitment to the social and economic development of Hungary. They also testify to our determination to ensure this development is long-term, sustainable, green and inclusive,” she explains.

Proud Contribution

“I am particularly proud of our contribution to COVID-19 recovery in the country. We have provided EUR 701 mln to sustain Hungarian businesses

and the healthcare system during these difficult times. I would like to thank our partners in the government and in the public and private sectors for the opportunity to help make Hungary even stronger,” Czerwinska adds.

“I am particularly proud of our contribution to COVID-19 recovery in the country. We have provided EUR 701 mln to sustain Hungarian businesses and the healthcare system during these difficult times. I would like to thank our partners in the government and in the public and private sectors for the opportunity to help make Hungary even stronger.”

As reported in the Jan. 28 issue of the Budapest Business Journal, in 2021, the EIB agreed to provide EUR 300 mln to the government to co-finance the national Home Renovation Program set up to improve the energy efficiency of houses. The operation supported a reduction of energy demand and improved the reliability and security of supply in the country. The financing

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The EIB also signed a EUR 50 mln deal with UniCredit Bank to unlock new sources of financing for Hungarian SMEs struggling with the effects of the pandemic. The bank has assisted the private sector in the modernization and digitalization of the production facilities, including a EUR 30 mln loan to the Lasselberger Ceramics company.

Decade of Investment

Over the past 10 years, the EIB has invested some EUR 10.4 billion in Hungary, the majority (EUR 2.31 bln) in credit lines for local SMEs and midcaps. Between 2011 and 2021, the EIB invested EUR 1.76 bln in the country’s transport sector and a further EUR 1.22 bln in national healthcare.

Beyond that, it has invested an additional EUR 1.11 bln in education, EUR 976.7 mln in the services sector, EUR 800 mln in agriculture, EUR 776 mln in the energy sector, EUR 605 mln in industry, and EUR 571 mln in water and wastewater management. Waste EIB vice president Teresa management, telecoms, composite Czerwinska, in charge infrastructure, and urban development of operations in Hungary. have received a combined total of more than EUR 1.05 bln in long-term funding from the EIB. will help reduce greenhouse gases Elsewhere, EIB Advisory Services and alleviate air pollution in parallel. has continued to provide advice and (See “EUB’s 1st Green Loan for capacity-building support to the Hungary Will Unlock EUR 300 mln for government and the public and private Improved Home Energy Efficiency” on sectors through several schemes. In budapestbusinessjournal.com) 2021, the service took on seven new The EIB also provided EUR 150 mln assignments in the country, completed to student loan company Diákhitel to six, and reported ensure Hungarian students have easier access to student loans; the loan also active supports post-secondary vocational projects, helping in areas such as education, training, and adult learning climate and environment, energy programs and, in turn, the development efficiency, infrastructure, sustainable of a modern, competent and competitive urban development, and agriculture. workforce for the Hungarian economy.

Since 2006, the Joint Assistance to This is the sixth such operation in support Support Projects in European Regions of Diákhitel, to which the EIB has provided (JASPERS) Advisory Service alone has supported the preparation of investment projects worth more than EUR 14.4 bln. in total over the past few years.

JASPERS was set up with the European As part of the EIB’s support for Commission to help cities and regions Hungary in mitigating the effects of the absorb EU funds.

COVID-19 pandemic, the EIB says it In a separate project, the Advisory supported the country’s public sector with Hub also supported Hungary’s EUR 146 mln to finance the acquisition government in developing its Circular of vital equipment and materials.

Economy Package.

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EUR 687 mln

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Italy’s Pedranzini Triumphs at 8th Expat CEO of the Year Gala Giacomo Pedranzini, CEO of Kometa 99 Zrt., won the Expat CEO of the Year title at the Budapest Business Journal’s annual awards gala, held in the Grand Ballroom of the Corinthia Hotel Budapest on March 25.

BENCE GAÁL

The exclusive, invitation-only black-tie event was held for the eighth time, with a prestigious crowd of business leaders, their other halves, diplomats, and decision-makers gathering at the hotel to witness the award ceremony. The guest list included Róbert Ésik, the CEO of the official event partner, the Hungarian Investment Promotion Agency (HIPA), and several ambassadors.

The BBJ Expat CEO Award is given to the foreign business head working and living in Hungary, who is considered to have done the most to contribute to the development of the Hungarian economy and its international recognition in the previous year. The first gala was held in 2015.

“The BBJ is Hungary’s only Englishlanguage economic bi-weekly and has always played an important role in providing information for expat CEOs working and living in Hungary. That is why we decided to found an award to recognize their efforts annually,”

Giacomo Pedranzini (left) and Erik Slooten. explains Balázs Román, the CEO of the Budapest Business Journal.

The Expat CEO of the Year is picked by a professional jury of five just 30 minutes before the gala starts. The panel consisted of American Chamber of Commerce in Hungary CEO Írisz Lippai-Nagy, who has been involved since the beginning, HIPA CEO Róbert Ésik, German-Hungarian Chamber of Commerce and Industry president András Sávos and BBJ CEO Balázs Román. The fifth seat on the jury is taken by the previous year’s title winner, meaning Erik Slooten had a voice in picking his successor.

Economic Impact

The same jury draws up the shortlist for the award based on criteria such as innovative skills, successes on domestic and international markets, being prominent and committed representatives of their mother country in Hungary, and their impact on Hungary’s economic life. To qualify for the award, the CEO must have lived in Hungary for at least two years at the time of nomination, and the company’s financial results must be positive.

BBJ editor-in-chief Robin Marshall, who has hosted the gala since its inception, took to the stage shortly

Golden Cross-recipient Behind Successful Transformation of Kaposvár Meat Industry Pedranzini was born in 1965 in Sondrio, Italy, the fifth of eight children of Ernesto and Maria Pedranzini. He holds a degree in economics and business from the Università Cattolica del Sacro Cuore [Catholic University of the Sacred Heart] of Milan. In 1985 he did his military service in the Alpine Corps with the Tirano Battalion, 48th Company, stormtroopers.

He began his civilian business career practicing as a chartered accountant and auditor at the Mongelli Studio in Milan, where he

continued working until 1994 when he moved to Hungary. Arriving in the country during the privatization wave of the early 1990s, he was responsible for the reorganization and revival of the meat processing industry of Kaposvár at an industrial complex for slaughtering and processing pork meat. What became Kometa 99 Zrt. now employs around 900 people.

Pedranzini initially worked as the economic and financial manager before becoming CEO in 1999 and also chairman of the board of

directors from 2012. From 2004 to 2010, he was also a board member of the Hungarian Meat Industry Association (Magyar Húsiparosok Szövetsége). From 2007 to 2012, he represented the association at the UECBV, the European Livestock and Meat Trading Union, in Brussels.

In 2018, Pedranzini was awarded the Golden Cross of Merit of the Republic of Hungary

by President János Áder. He is married and the father of three children. He lists his hobbies as reading, running and cycling.

before 8 p.m., inviting the guests who were greeted with hors d’oeuvres and champagne into the ballroom.

As people were getting to know their tablemates and starting their appetizers, Marshall opened by acknowledging one of the most important and tragic events in the world today: the war right next door.

“No one in this room can be unaware of the terrible conflict taking place in Ukraine. We wondered how we should respond to that,” he told the audience.

“We had even considered whether we should cancel this event but decided that, ultimately, we should not put our lives on hold because of events that are happening elsewhere and that are beyond our control. This remarkable community – you and your people – have responded to a human tragedy in an utterly human way by sitting down, working out what you can do to help, and then going out and doing it. Just as you did with COVID. And that is the right response, I think. So, fully cognizant of what is going on just next door, with humility, let’s get on with the evening,” he said.

“It was really disturbing to me when you have shelves in the supermarket and I see that pet food is more expensive than what we feed our children. In the last 10 years, the situation began to change. Now we have the chef stars. So, everybody’s talking about our food, even if they do not always know what they’re talking about.”

“This award, this evening, are part of our commitment to support this community of business leaders and their others, some might say better, halves, diplomatic representatives, and decision-makers with the ear of government. If you are a returning guest, we are delighted to have you back with us. If you are a newcomer, welcome to this fantastic setting and an inspiring and supportive group of people. I’m sure you will feel at home,” he concluded before inviting HIPA head Róbert Ésik to the stage.

Proud Partner

Ésik began by noting that the Hungarian Investment Promotion Agency has been a “proud partner” of the BBJ since the first gala in 2015 and noted Hungary’s remarkable recovery from the COVID crisis.

“We had the second-highest GDP growth in Europe in 2021 with 7.1%,” he said. “We have been able to break the all-time investment record again together: EUR 5.9 billion of CAPEX.” He added that, apart from the investment volume record, last year also

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Budapest Business Journal | April 8 – April 21, 2022

Sponsors of the Evening The Budapest Business Journal would like to thank HIPA, the official event partner of the Expat CEO of the Year Award, and the 2022 sponsors: Arval, BNP Paribas, Penny Market, and PWC Hungary. Organizing partners were Prime Time Communications, Special Effects Ltd., and the Corinthia Hotel Budapest.

brought about the highest amount of investment via a single FDI project with a EUR 1.9 billion greenfield development

by South Korea’s SK On and lauded the success of COVID-specific subsidy programs, which also contributed to the outstanding results.

“So, I believe it’s right once again that we celebrate together through our nominees, to recognize the contribution of this expat CEO community,” Ésik said. He noted that, as the CEO of HIPA, he has had the pleasure of working together with all three of the 2022 nominees Towards the end of his speech, like Marshall before him, he also touched upon the Ukraine crisis, reassuring expat CEOs, “We will remain your partner, no matter the circumstances.”

Interactive

Next up came Mentimeter, an interactive quiz game that has been a staple of the last three gala events. This time it tested the guests’ knowledge of critical topics shaping the business world today, such as gender equality, climate change, well-being, and education, and for the first time came with a prize for the winner, courtesy of sponsor PwC, a family ticket to the Museum of Illusions.

The night continued with the main course: veal tenderloin, sweetbread, celeriac terrine, onion and beer puree, glazed baby carrots, and truffle jus from Corinthia’s kitchen headed by British masterchef Andy Gaskin. Naturally, those with food allergies and pursuers of the vegan lifestyle were offered alternative dishes.

After the clinking of glasses and cutlery began to wane, Marshall returned to the stage to introduce this year’s nominees, but not before paying tribute to past winners.

“Many of our previous winners have been promoted and moved on to pastures new. Others, I am delighted to say, are still with us.

Our seven winners have been drawn from six countries: Brazil, Germany, Finland, the Netherlands, Spain, and the United Kingdom. We have had five men and two women, so we have done our bit for gender equality, although we won’t tonight.

But one of the things I am proudest about with this prize is that gender has never been a criterion. Our two women and five male winners were picked because they were the best candidates. All were remarkable leaders in their own right,” he noted.

“So, I believe it’s right once again that we celebrate together through our nominees, to recognize the contribution of this expat CEO community. […] We will remain your partner, no matter the circumstances.”

Nominees

This year, the three nominees were the managing director of GoTo in Hungary, John Ford, CEO of Hydro Extrusion Hungary Kft. Frank Iepema, and Kometa 99 Zrt. CEO Giacomo Pedranzini.

Arriving on the stage after the screening of three videos showcasing each of the 2022 candidates, last year’s winner Erik Slooten carried with him an envelope that contained the name of the winner.

He jokingly remarked that he is the shortest reigning Expat CEO of the Year because the 2022 gala was held roughly six months after the 2021 awards, which had been postponed due to the COVID-related

From left to right: Frank Iepema, Giacomo Pedranzini, and John Ford.

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Róbert Ésik, CEO of HIPA. reestablishing Hungary’s strong position on the European stage in meat production.

He thanked his staff and the economic institutions supporting him and blew a kiss to his wife before he left the stage, almost forgetting his award at the podium.

Marshall then returned one last time to thank the event’s official sponsors and partners and, as has become his tradition, bid farewell in the words of the Pedranzini Wins Expat late, great Irish comedian Dave Allen, CEO of the Year Award “Thank you, Good Night, and may your The night reached its climax as Slooten God go with you.” opened the envelope, revealing the But the night did not end there; eighth Expat CEO of the Year: Giacomo guests were invited to enjoy desserts, Pedranzini, the first-ever Italian national the offerings of a cocktail bar, and to be nominated, let alone win the award. networking in the foyer. A special dance After accepting to thunderous applause, show was also put on by Urban Verbunk, Pedranzini told the short story of Kometa a prominent group from the Hungarian in Hungary. folk dance scene. The company’s “In 1994, when the privatization process artistic director, Moussa Ahmed, has was just beginning, we decided to invest represented Hungarian culture by taking in meat processing in the so-called part in a wide range of events: from the Kaposvári Húskombinát, this pork stage of Lincoln Center in New York processing factory in the beautiful city through the Rio Olympics to the 70th of Kaposvár in the south of Hungary. At birthday of Prince Charles. the time when we came in, there were 15 After the production ended, the guests companies similar in size compared to once again enjoyed the hospitality of the one where we were at,” he remarked, Corinthia until well after midnight, as highlighting the fierce competition in the the breezy spring night gave way to a intervening years. “Today, only five of crisp, cool Budapest morning. these 15 companies remain on the market.”

He also highlighted how the position of food and agricultural products had evolved among consumers over the Rollcall of Past Winners past decade.

Last year, the Expat CEO of the “Food production and agriculture Year Award went to Erik Slooten, was not the focus 10-15 years ago; then CEO of Deutsche Telekom I have to say that our activity and our IT Solutions Hungary. The 2020 products were slipping down in the list winner was BlackRock’s Melanie of expenditure priorities. First, we Seymour, the first British winner wanted to have the best new technology of the award.

Taira-Julia Lammi, mobile phone, and it was really CEO of ABB Hungary Kft., won disturbing to me when you have shelves the title in 2019, becoming the in the supermarket and I see that pet first Finnish winner and the first food is more expensive than what we woman, while in 2018, it went to feed our children. In the last 10 years, Marc de Bastos Eckstein, CEO the situation began to change. Now we of Thyssenkrupp Components have the chef stars. So, everybody’s Technology Hungary Kft. (our talking about our food, even if they do first and thus far only Braziliannot always know what they’re talking German winner). In 2017, it about,” he remarked, prompting was Jörg Bauer, then of GE a wave of laughter.

Hungary, in 2016 it was Jost Ernst Lammers, of Budapest Airport The Perfect Machine Zrt. (both German nationals). The “We have to remember that what we are inaugural award was presented nurturing is what Leonardo called ‘the to Spain’s Javier González Pareja, perfect machine,’” he added regarding the of Bosch Magyarország. importance of nutrition. Pedranzini also restrictions, before calling attention to the refugee crisis engulfing Europe.

“There are many people less privileged than us, and there are many charities that need our support to take care of underprivileged people, including women and children,” he said concerning the Ukraine Crisis.

noted that Kometa 99 aims to be a part of

14 | 2

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Budapest Business Journal | April 8 – April 21, 2022

Photos by Marianna Sárközy

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2

Business | 15

16 | 2

Business

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Special Report Health Care

Suicides Devastate Family, Friends, Businesses: Latter Should do More for Mental Health What can Businesses do?

A tragic case of self-immolation at the end of January, when a pensioner set himself alight in a local government office in the western city of Veszprém, briefly brought the subject of suicide into Hungarian headlines.

KESTER EDDY

Local media speculated that the 74-yearold had become depressed over a mistake regarding the size of a fine imposed because his dogs, which had earlier attacked a local woman, were found to be neither vaccinated nor tagged.

But with the threat and then the reality of the Russian invasion of Ukraine, the story was soon largely forgotten by February.

Not, however, by Károly Oriold, who heads the At Home in Your Soul Foundation (Lélekben Otthon Alapítvány), a largely voluntary group dedicated to helping improve mental health and prevent suicide in Hungary.

Oriold cautions against journalists speculating on the causes of suicides.

Research has shown that “media unconsciously fabricate explanations and reasons for suicide in their articles, without having any idea of the reality and truth,” he told the Budapest Business Journal in an interview.

Worse still, a vulnerable person can be influenced by the mere mention that a victim thought suicide would be a solution to a problem (such as a large debt, as in the Veszprém case), potentially emulating the original tragedy.

“If my financial situation is getting worse, should I kill myself? The media shouldn’t make news in this way because we live in psychologically sensitive times, and there are high-stress levels.

We must be careful for those of our compatriots who are in crisis,” he argues.

Spectacular, headline-grabbing cases aside, suicide has been mainly out of the headlines in recent years, and for a reason. Cases of death through selfharm in Hungary rose

from

2,000

per annum in 1956 to a peak of 4,911 in 1983, a shocking rate of 46 per 100,000 population.

However, there has since been a general downward trend (with relatively minor exceptions in 20072010) to reach a low of 1,550 in 2019.

While this number still translates into 30 unhappy people per week terminating their lives on a per capita basis (at just under 16 per 100,000 population), it is a vast improvement from the 1980s and compares well with some Western European countries, such as Belgium.

Negative Impact

Nonetheless, the negative impact of these deaths is far in excess of what the layman typically imagines, argues Oriold.

2020 (the last year for which official statistics are available) saw a worrying turnaround in Hungary, with 156 additional [suicide] cases on the 2019 numbers, a 10% rise bringing the national total to 1,706. All but three of the increase were male victims.

“New research from Australia examined how many people have been affected by this tragedy in a traumatic way. People thought before that the people impacted would only be very close family members, or maybe one or two close colleagues, so eight or 10 people. But they have discovered it is, on average, 130 persons; so, many more people are influenced than thought previously,” he says.

Moreover, 2020 (the last year for which official statistics are available) saw a worrying turnaround in

Károly Oriold of the At Home in Your Soul Foundation.

Hungary, with 156 additional cases on the 2019 numbers, a

10% rise

bringing the national total to 1,706. All but three of the increase were male victims.

Oriold is in no doubt as to the cause of the increase, attributing it to the “stupid” decision to close out-patient clinics, transfer psychiatrists to help with the pandemic, and empty 30,000 hospital beds to accept COVID patients over Easter week in 2020.

“Many psychiatric patients did not get treatment in this period: no medicine, no therapy, nothing. Psychiatric illness is very serious, and if such people don’t get treatment, their condition gets worse,” he said.

Moreover, the trauma and confusion caused by the closures, including in many cases a lack of information, led to untold suffering.

“At the beginning, it was terrible. It was not written: ‘Dear patients, the situation has changed, for now, we cannot see you.’ The stress levels increased, and only later do we see the consequences. There have been relapses in patients with schizophrenia, paranoid personality disorder, and borderline disorders. All these are very dangerous [conditions],” Oriold stresses.

Bence András Lázár, head of the psychiatric group of the Hungarian Medical Chamber, concurs, at least in part, with Oriold. Speaking to RTL Klub a little after the Veszprém tragedy about a rise in suicide attempts, he also noted that the lockdown, in general, increased the mental and psychological burden on more vulnerable people, helping to push them into despair, “particularly if they live on alone,” he said.

While volunteers from the At Home in Your Soul Foundation generally help individuals, they are also involved with business-related suicide cases. In one, after the first wave of the COVID pandemic, a long-standing and wellliked member of staff at a Hungarian bank ended his life, causing massive trauma among his former colleagues.

“The victim had been missing treatment for four months, and he committed suicide only after beginning treatment again,” says Oriold. As is typical with those left behind, his former colleagues “found it very difficult to mourn.

Afterward, people feel they should have done more themselves.”

Called in by the bank’s management to help counsel the traumatized staff, Oriold’s work helped another bank employee who had also been contemplating suicide to reveal his depression and get professional help.

“It was, for me, a very touching and valuable series of five [sessions],” he says.

However, Oriold says inquiries from businesses are few and far between.

Asked if the business world should become more aware of mental health issues, his response is immediate.

“Absolutely!” he says, urging the government to look at Austria, where legal regulations mean businesses must have mental aspects assessed and certified in their overall health audit.

However, as noted by Bence Lázár in his interview with RTL Klub, treatment is often difficult to come by in the state healthcare system that is generally overworked and underfunded.

Indeed, on the very day news broke of the Veszprém suicide, the Central Statistical Office reported that the headcount in the Hungarian healthcare sector had fallen by

some

17,000,

or 8.5%, between the fourth quarter of 2021 compared to the year previously.

Business could and should help take up the slack, certainly on mental health issues, says Oriold, but he is not optimistic.

“I’ve not got a very good opinion about human resource [departments in Hungary]. I know there is violence in [some] workplaces,” he says. “And I know that the HR department does not always respond because they are dependent on the boss, and the boss himself is the violent [perpetrator],” he adds.

18 | 4

Special Report

www.bbj.hu

Budapest Business Journal | April 8 – April 21, 2022

PRESENTED CONTENT

Healthy Conditions Help Healthcare Investors Thrive in Hungary Richter may not exactly be a household name globally (yet), but it is certainly well-known to those involved with healthcare.

Outside of the country, Hungarian pharma is basically identified with Richter. However, there is life in healthcare beyond this domestic blue-chip; investments in life sciences and medical technology are thriving in Hungary.

as they develop life-saving vaccines and biologic drugs in Europe,” Vecsernyés says.

Following the announcement of a EUR 20 mln investment to produce research reagents required for the production of medical products in 2017, BD hit the headlines with an investment of EUR 188 mln in early March this year to double pre-fillable syringe production.

The latter amount equals nearly onefifth of BD’s global development budget earmarked for the upcoming years.

“Our recent investment in Hungary further positions us to have needed surge capacity for increased prefillable syringe demand during times of pandemic response or periods of significant growth of new injectable drugs and vaccine,” he adds.

Pharma-focused brains

BBJ STAFF

Richter is no lonely warrior in the daily battles of the Hungarian healthcare market.

Egis is among those companies that need to attract As evidenced by data provided by the and retain talents with pharma-focused brains.

Hungarian Investment Promotion Agency (HIPA), more than 2,000 businesses employing 50,000-plus people were active in the pharmaceutical industry and the that has expanded its R&D center in a EUR 26.2 mln investment to produce medical technology sector in 2020, up by Budapest for EUR 8.5 million over synthetic suture materials, and Schott’s more than 20% from 2014. three years to focus on radiotherapy latest EUR 76 mln announcement that it Foreign investor interest has been on tech development. Another example will add pre-fillable glass (PFG) syringes the rise in this segment of the economy in is Nolato, of Swedish origin; its largest to its local portfolio, further showcase particular: its share of the total FDI stock plant outside of China operates in the extraordinary intensity of foreign jumped from 2.7% to 6.5% from 2011 to 2021, Mosonmagyaróvár (a city 160 km investors in the medical arena. amounting to EUR 5.8 billion last year. The northwest of Budapest by road, close These investment stories hint that both project catalog of HIPA, an organization to the Austrian border). It is investing newcomers and established reinvesting dedicated to providing a one-stop-shop EUR 21 mln in growing its hygienic and veterans have Hungary on their radar. management consultancy service that medical product manufacturing and HIPA’s figures further reveal that up to 35 facilitates investments in this country, storage area. That’s a familiar step; it has deals were closed between 2014 and 2021 confirms this trend. Check the most been expanding its operation there every in pharma and MedTech, which accounted recent announcements, and you cannot couple of years over the last decade. for some EUR 900 mln in FDI and help but notice that investors are on fire.

South Korea-based Samyang created nearly 4,500 jobs. American and Take Varian Medical Systems, a U.S.Biopharm’s decision to set up shop in Danish firms were responsible for almost based company specializing in MedTech Gödöllő (34 km northeast of the capital), half of the investment volume and over two-thirds of new jobs.

HIPA-guided FDI projects in Pharma and MedTech, 2014-2021 Number of projects

Investment volume (million EUR)

Number of planned new jobs

USA

8

407

1,508

Germany

2

140

407

France

5

117

80

United Kingdom

4

81

262

Denmark

4

71

1,631

Isreal

2

34

50

South Korea

1

30

60

Japan

2

20

243

Switzerland

2

7

105

India

1

5

90

Total

31

911

4,436 Source: HIPA

Market Proximity

One of those American companies is Becton Dickinson (BD), which has been in Tatabánya (60 km east of Budapest) since 2010. As Csaba Vecsernyés, managing director of BD Hungary, points out, it chose to establish production in Hungary because of the proximity to its European customers, which remains more important than ever today.

He explains that demand has surged for pre-fillable drug systems across Europe as they help healthcare providers administer drug therapies.

“Today, more than 70% of the top 100 biopharmaceutical companies rely on BD pre-fillable syringes. This site [in Tatabánya] enables us to continue to innovate by creating extended manufacturing capacity for our customers

Such expansions could not be implemented without skilled staff, and Hungary is known for scoring high on that criterion. In the 2020-2021 academic year, some 30,000 students attended healthcare-related university programs, a sign of the availability of intellectual reserves.

Founded in 1913 in Budapest, Egis Pharmaceuticals Plc., a leading international pharma company, is among those in need of bright pharmafocused brains: it has three sites in the country where its drugs are developed and produced. In its latest EUR 21.8 mln investment, inaugurated in October 2021, a packaging facility and a plant to produce oncology products were established. To ensure the highest quality, the company places a big emphasis on attracting and retaining talent.

“We need well-trained professionals in both white- and blue-collar positions, and lifelong learning is essential in our knowledge-intensive sector,” András Klára, HR director of Egis, says. “To this end, Egis is constantly investing not only in finding a suitably qualified workforce but also in the continuous development of their knowledge and skills.”

To reach an even higher number of young applicants, Egis is already working with its partner universities to find new blood.

“Our top talents are trained in sessions where they can develop their soft skills, build their professional network and increase their engagement. Since the beginning of our talent program in 2018, we could retain 98% of the participants,” Klára adds, shedding light on the longterm corporate HR strategy.

Competence is critical more than ever in challenging times like these, and stakeholders are fighting back by betting on digital. BD’s solutions for Smart Connected Care help providers take a more comprehensive approach to disease management and better coordinate care plans, while Egis’ Habita app supports patients with hypertension and doctors in their quest to make patients compliant with the medication regime.

These are randomly picked yet very telling examples that underline the readiness of market players to adapt to changing circumstances. Given the advantages Hungary has to offer, it seems investors are increasingly likely to make that happen by implementing projects in this country in the future as well.

4

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Budapest Business Journal | April 8 – April 21, 2022

Hungarians Loyal to Their Doctors, Prepared to pay for Better Care

Special Report | 19 Health Matters

Price and geographical proximity are not the only factors that determine the choice of a doctor or clinic, according to a joint survey by doctor search platform Dokio and GKI Digital.

BENCE GAÁL

The research says that it is at least as important for Hungarian patients to find a doctor they already know or who has a good reputation. Almost one-third of new private healthcare users are looking for a specific doctor, while many decide based on recommendations from friends or professionals.

The research found that patients’ loyalty to their own doctor is particularly strong in Hungary, with many patients willing to spend money and time to see a better-quality specialist. The survey polled around 4,000 people about the criteria they use to choose which clinic or doctor they go to for treatment or examinations when they use healthcare services.

GVH Fines Local Brightwhite Distributors Hungary’s Competition Office (GVH) said it fined four local Brightwhite distributors a combined HUF 22 million for continuing to advertise products touted as teeth whitening agents despite a ban, according to uzletem.hu [My Business]. GVH noted that it launched a procedure against the distributors late in 2020 because they continued to advertise Brightwhite products despite a ban by the National Public Health Center (NNK). NNK earlier established that, because of a lack of documentation, the products could contain prohibited ingredients, presenting a public health risk.

Semmelweis Uni, ITM, Novartis Sign Cooperation Deal Hungary’s top medical school, Semmelweis University, the Ministry for Innovation and Technology (ITM) and Novartis Hungária have

Gergely Radnóczi In the case of a health problem, the location of their existing doctor’s office was the main criterion, while 33% of respondents highlighted the importance of personally knowing the doctor from earlier treatment (respondents could indicate more than one criterion in the relevant question).

Some 30% of respondents said they chose a doctor on the recommendation of a friend or family member.

In response to another question, 58% of respondents (who had already used private healthcare) said they were loyal to their doctor; 33% said they were loyal to certain doctors and providers only but would be willing to try a new specialist in some cases. In contrast, only 5% said they

signed a cooperation agreement to promote innovation in the country’s public healthcare sector, according to state news agency MTI. The agreement was signed by State Secretary László György on behalf of ITN, university rector Béla Merkely, and Matt Zeller, managing director of Novartis Hungária. As a first “pillar” of the agreement, the signatories want to increase access to clinical research at the university and the role of technological and digital innovations in clinical research.

In the second pillar, the signatories aim to ensure Hungary’s leading role in cell and gene therapies.

As one of Europe’s top gene therapy centers, the university is helping to launch a national pilot program for neonatal screening of spinal muscular atrophy. In addition, screening for hereditary retinal diseases is being extended in ophthalmology. The third pillar of the cooperation is a cardiovascular public health program affecting 50,000 people, using innovative data analysis and artificial intelligence solutions.

always go to the doctor who gives them the earliest or cheapest appointment.

“The responses show that a large proportion of patients who use private healthcare are willing to spend more money and time to get more reliable care,” says Gergely Radnóczi, co-founder of the online health platform Dokio.

Of respondents who have used private healthcare in the past year, 72% spent between HUF 10,000-100,000 on such services, while 16% spent more than HUF 150,000 on private care.

About 74% of those who said they were loyal to their doctor said that the reason for sticking to an established specialist was satisfaction with the doctor’s work, while 43% of respondents said that the

Richter Lays Cornerstone of new Office Building Hungarian pharmaceutical company Gedeon Richter laid the cornerstone of a HUF 15 billion office building in Budapest in March, according to a release on the website of the Budapest Stock Exchange. The 17,400 sqm building will be completed by the end of 2023. Richter CEO Gábor Orbán said the latest expansion of Richter’s base in the capital shows the values of the company’s founder, born 150 years ago, have withstood the test of time. He said spaces that “encourage innovative cooperation” were a priority in the design of the building. He added that sustainability was also a factor, noting the use of recycled materials and geothermal temperature regulation. The six-story building will have space for 420 office workers, a conference room for 120, and a 74-spot underground car park.

Minister of Finance Mihály Varga said Richter is “among the biggest and most innovative companies” in Central Europe. He noted that investments had

A monthly look at health issues in Hungary and the region

personality and character of the doctor were the most significant factors.

In the survey, Dokio and GKI Digital also asked people looking for a new private healthcare provider about the critical factors in picking the right specialist or clinic. Approximately 38% said it depends on the problem at hand whether they choose a specific doctor or just a clinic, while 29% specifically searched for a doctor.

When asked what they rely on to choose a private doctor, most respondents (51%) preferred recommendations from a friend or family member, and many followed the advice of another doctor (29%) or decided based on the reputation of the specialist (27%).

Only 5% of patients choose a doctor using an online doctor search service.

Radnóczi pointed out, however, that doctor search platforms such as Dokio are particularly suitable for searching for doctors on the basis of professional recognition, as they also provide access to professional biographies.

“The results also suggest that although e-health, telemedicine and similar less personalized procedures are becoming more common in healthcare, the doctorpatient trust relationship remains inescapable,” he notes.

“Meanwhile, competition in the private healthcare market is also intensifying, with clinics gaining an advantage if they focus more on the professional personality of their doctors. Our survey shows that proximity or price is not the main criterion for patients choosing a doctor, but they prefer to go to someone they can trust. Private clinics need to communicate this,” he concludes.

boosted pharmaceutical companies’ share of Hungary’s exports of goods to more than 5%. Richter chairman Erik Bogsch said it was cheaper to build the new office than to renovate the existing base in District X.

Construction of Caola’s HUF 3.8 bln Factory Begins Hungarian cosmetics and cleaning products company Caola has laid the cornerstone of a HUF 3.8 billion factory in Martonvásár (30 km southwest of Budapest), according to portfolio.hu. Grant money earmarked to boost Hungary’s self-sufficiency in the production of healthcare supplies covered HUF 2 bln of the project’s costs. CEO Imre Bandi said the new plant would be completed by the end of the year. He added that the firm had upgraded its range of disinfectants and cleaners in the past two years in response to the pandemic. The new plant will operate with a staff of 21. Caola had net sales revenue of HUF 1.1 bln in 2020, according to public records.

20 | 4

Special Report

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Budapest Business Journal | April 8 – April 21, 2022

Private Hospitals and Clinics

2

synlab HungaRy kFt. www.synlab.hu

mediCoveR egészségközPont www.medicover.hu

3

budai egészségközPont www.bhc.hu

4

tRitonliFe CsoPoRt www.tritonlife.hu

5

aFFidea diagnosztika www.affidea.hu

6

7

8

doktoR24 www.doktor24.hu

dR. Rose magÁnkóRHÁz https://drrose.hu/hu

duna mediCal CenteR kFt. www. dunamedicalcenter.org

18,389 (2020)

–

aReas oF sPeCialty

Laboratory check-ups

otHeR seRviCes

–

13,442 (2020)

Laboratory tests, internal medicine, dermatology, bone densitometry, ODM, CT scans, dietetics, endoscopy, physiotherapy, dentistry, ENT, gastroenterology, pediatrics, physiotherapy, Hospital surgery care, health Medicover gastroscopy, cardiology, mammography, MRI scans, neurology, insurance, dentistry, vaccination Egészségközpont gynecology, vaccination center, vaccinations, orthopaedics, center, MRI, CT, ODM international Zrt. proctology, psychiatry, pulmonology, rheumatology, surgery, medical tourism colorectal cancer screening, ophthalmology, traumatology, ultrasonography, urology

12,594

Addictology, allergology, anaesthesiology, trauma surgery (traumatology), internal medicine, dermatology, diabetology, dietetics, lifestyle and life-style advice, endocrinology, vascular surgery, food intolerance dentistry, otorhinolaryngology, Complex spinal medicine care, gastroenterology, geriatrics, spine medicine, spinal surgery, inpatient care, private hospital Budai medical massage therapies, physiotherapy - physiotherapy, services, preventive screening Egészségközpont gastroscopy, haematology, hepatology, neurosurgery, immunology, tests, manager screening, Zrt. infectology, infusion therapy, joint injection therapy, cardiology, arteriography, laboratory tests, hand surgery, nephrology, neurology, gynecology, oncology, company health programmes, R&D orthopaedics, osteoporosis, plastic surgery, proctology, psychiatry, psychology, pulmonology - pulmonary medicine, radiology (MRI, CT, RTG, DEXA, UH), rheumatology, surgery, sports medicine, ophthalmology, urology, vaccinations, colonoscopy

11,500

Dermatology, diabetology, endocrinology, ear, nose and throat, gastroenterology, hand surgery, gynecology, orthopaedics, surgery, TritonLife Csoport ultrasound diagnostics, urologyandrology, cardiology, obstetrics and foetal diagnostics

8,092 (2020)

5,500

4,400

3,400

Special paediatric services

Affidea Magyarország Kft.

Diagnostic imaging: CT, MR ultrasound, X-ray, mammography, bone density measurement, isotope diagnostics, allergology, Screening, weight clinic, research internal medicine, dermatology, diabetology, occupational health, and development, health insurance ear, nose and throat, cardiology, gynecology, rheumatology, advice, physiotherapy, manual aviation medicine, surgery, sports medicine, ophthalmology, therapy, physiotherapy urology, laboratory tests

Doktor24 Medicina Zrt.

Adult inpatient care (day surgery and orthopaedics), 50 adult outpatient specialties (allergology, sleep diagnostics, andrology, anaesthesiology, angiology, aspiration cytology, balneology, internal medicine, screening for skin and venereal diseases, dermatology, diabetology, dietetics, endocrinology, physiotherapy, physical and manual therapy, occupational health, ear, nose and throat, gastroenterology, gymnastics, neurosurgery, immunology, cardiology, clinical oncology, laboratory tests, diagnostic medical reports, MR diagnostics, mammography, neurology, gynecology, orthopaedics, proctology, rheumatology, radiology, surgery, ophthalmology, pulmonary medicine, ultrasonography, urology) and 20 paediatric specialties (general pediatrics, developmental neurology, paediatric allergology and immunology, paediatric dermatology, paediatric dietetics, paediatric endocrinology and diabetology, paediatric phoniatrics, paediatric otorhinolaryngology, paediatric phoniatrics, paediatric otorhinolaryngology), paediatric gastroenterology, paediatric genetic counselling, paediatric neurology, paediatric neurosurgery, paediatric cardiology, paediatric laboratory testing, paediatric nephrology and urology, paediatric orthopaedics, paediatric radiology, paediatric surgery, paediatric ophthalmology, paediatric lung medicine, paediatric ultrasound, paediatric MR diagnostics)

Dr. Rose Magánkórház Kft.

Duna Medical Center Kft.

Doktor24 Express: immediate medical care from the age of 1; out-of-hours visits to paediatricians

Allergology, anaesthesiology, audiology, internal medicine, Complex outpatient and inpatient dermatology, diabetology, dietetics, endocrinology, vascular care, diagnostic tests, preventive surgery, gastroenterology, ear, nose and throat, pediatrics, screening, annual card packages, physiotherapy, neurosurgery, immunology, cardiology, cardiology, surgeries, rehabilitation, corporate neurology, gynecology, orthopaedics, orthopaedics, aesthetics, health services, health insurance plastic surgery, post-covid surgery, proctology, psychiatry, packages, occupational health, pulmonology, radiology, rheumatology, surgery, ophthalmology, international vaccination center obstetrics, urology

Allergology, internal medicine, diabetology, haematology, dermatology, dietetics, vascular surgery, occupational health, otorhinolaryngology ENT, gastroenterology, paediatric gastroenterology, paediatric cardiology, pediatrics, cardiology, infertility, neurology, gynecology, oncology, orthopaedicstraumatology, surgery, proctology, psychology, psychiatry, rheumatology, ophthalmology, pulmonary and respiratory allergology, urology

Outpatient care; hospital inpatient and surgical care in the following specialties: general surgery, bariatric surgery, vascular surgery, ear, nose and throat surgery, gastroenterology-endoscopy, neurosurgery, gynecology, orthopaedics, plastic surgery, proctology, ophthalmology, urology; obstetrics and maternity care; radiological diagnostics; laboratory tests; rehabilitation; annual health card

yeaR establisHed

name oF oPeRating ComPany

no. oF Full-time emPloyees on maRCH 1, 2022

1

ComPany Website

total net Revenue in 2021 (HuF mln)

Rank

Ranked by total net revenue in 2021 (HUF mln)

oWneRsHiP (%) HungaRian nonHungaRian

toP loCal exeCutive CFo maRketing diReCtoR

addRess PHone email

940

– synlab Holding Austria GmbH (100)

Richárd lévai – –

1211 Budapest, Weiss Manfréd út 5–7.

(1) 588-8500 ugyfelszolgalat@ synlab.com

783

MI Hungary Kft. (100) –

lászló benedek, katalin Juhász, János Rózsás – –

1134 Budapest, Váci út 29–31.

(1) 465-3100 info@ medicover.hu

550

Bonitás 2002 Zrt. (100) –

istván Csernavölgyi Andrea Batta András Kiss

1126 Budapest, Királyhágóutca 1–3.

(1) 489-5200 info@bhc.hu

2007

A

MedAlliance First Kft. (100) –

lajos károly Fábián – –

1135 Budapest, Lehel utca 59/C (1) 444-5151 kapcsolat@ tritonlife.hu

1991

414

– Affidea Diagnostics B.V. (100)

Ágnes Horváth – –

1054 Budapest , Szabadság tér 7.

(1) 803-6464 –

239

Medworcare Zrt. (65) Ananda Impact Fund, V4C Fund (35)

Róbert györgy lancz Ágnes Pólya Zsuzsa Szűcs

1134 Budapest, Váci út 37.

(1) 443-3200 ugyfelszolgalat@ doktor24.hu

147

– Cross Border Management Holding GmbH (100)

kornél Papik György Kőfalvi Judit Aba

1051 Budapest , Széchenyi tér 7–8.

(1) 377-6737 info@drrose.hu

187

– IMC International Medical Corporation Limited (100)

anita gurney, vitalii volskyi András F. Radeczky Bertalan Bognár

1095 Budapest, Lechner Ödön fasor 5.

(1) 790-7070 info@ dunamedical.com

2009

1993

2000

2005

2007

2014

4

www.bbj.hu

WÁbeReR mediCal CenteR www.wmc.hu

RmC CliniCs 10 www.rmc.hu

PozitRon11 diagnosztika kFt. www.pet.hu

3,265

Wáberer Medical Center Kft.

Inpatient care in orthopedics, surgery, gynecology and urology in a 20-bed matrix ward. Day-care surgery in ear, nose and throat, Annual health cards and manager plastic surgery and ophthalmology. Full diagnostic services screening in various packages, on(CT, MRI, mammography, X-ray). Outpatient care in over thirty site occupational health care specialties, laboratory diagnostics

2,111

RMC Group

Allergology, anestesiology, audiology, internal medicine, dermatology, diabetology, dietetics, day surgery center, lifestyle programmes, breast surgery, endocrinology, vascular surgery, headache clinic, dental center, occupational health, ear, nose and throat, gastroenterology, paediatric gastroenterology, paediatric allergology, paediatric endocrinology, pediatrics, paediatric Full-time inpatient and paediatric dentistry, paediatric cardiology, paediatric chiropractic, paediatric care, complex health promotion nephrology, paediatric neurology, paediatric orthopaedics, screening packages, manager paediatric psychiatry, paediatric psychology, paediatric radiology, screening, maternity and baby paediatric ophthalmology, paediatric urology, medical massage, services, health and beauty haematology, immunology, infectology, cardiology, chiropractic, services, COVID screening and cosmetology, laboratory tests, fetal medicine center, fetal cardiac post-coronary screening, IC center, ultrasound, infertility screening and counselling, menopause menopause program programme, mental health crisis center, nephrology, international vaccination center, neurology, gynaecological oncology, obesitology, oncology, orthopaedics, plastic surgery, proctology, psychiatry, psychology, radiology, reflexology, rheumatology, ophthalmology, cardiac surgery, obstetrics and gynecology, pulmonology, urology

1,986

Cross Border Management Holding GmbH

aReas oF sPeCialty

PET/CT, CT, MR, mammography, ultrasound

Swiss Hungary Medical Zrt.

Emineo Kft.

Orthopaedics, traumatology, anaesthesiology, internal medicine, Screening, weight clinic, research diabetology, otorhinolaryngology, cardiology, neurology, and development, health insurance neurophysiology, urology, radiology, rheumatology, dermatology, advice, physiotherapy, manual surgery therapy, physiotherapy

1,768

emineo 13 magÁnkóRHÁz www.emineo.hu

1,618 (2020)

k-med kFt. 14 www.sasszemklinika.hu

1,463 (2020)

K-Med Kft.

1,112

Focus Medical Egészségügyi Szolgáltató Kft.

Laser vision correction treatment, cataract surgery

Firstmed-FMC Kft.

General practitioner, internal medicine, pediatrics, specialists: urology, gynecology, surgery, cardiology, ophthalmology, gastroenterology, ear, nose and throat, pulmonology, physiotherapy, psychologist, psychiatrist, surgery, neurology

16

FiRstmed - FmC kFt. www.firstmedcenters.com

medoC 17 egészségközPont www.medocklinika.hu

630

istenHegyi 18 magÁnklinika www.ihklinika.hu

PRoFessional oRvosi kFt. 20 www. professionalrendelo.hu

NR = not ranked, NA = not appliacable

Labor health

–

–

Radiology: X-ray, ultrasound, laboratory

2019

2001

2004

2010

2009

1999

1990

2011

oWneRsHiP (%) HungaRian nonHungaRian

toP loCal exeCutive CFo maRketing diReCtoR

addRess PHone email

106

HIGH YIELD Zrt. (78.62), individuals (21.38) –

Róbert mári Ádám Varga Katalin Széll

1055 Budapest, Kossuth Lajos tér 18/A (1) 323-7000 info@wmc.hu

53

Individuals (49) MedLife SA (51)

gyula Csermely Imola Berta Végh Kinga Tihanyi

1026 Budapest, Gábor Áron utca 74–78.

(1) 392-0505 info@rmc.hu

55

(100) –

andrás kókay Gábor Gombos Alma FazekasArató

1117 Budapest, Hunyadi János út 9–11.

(1) 505-8888 info@pet.hu

A

(100) –

andrás kirschner – Bianka Dávid

1123 Budapest, Nagyenyed utca 8–14.

(1) 225-0566 info@ swissclinic.hu

58

Zsolt Knoll, Kálmán Fábián, Veronika BörzseiKnoll (100) –

veronika börzsei-knoll, zsolt knoll – –

1117 Budapest, Nádorliget utca 8.

(1) 773-3333 emineo@ emineo.hu

30

Varga és Társa Befektetési Kft., PMSZO Holding Kft. (100) –

botond Halmai – –

1118 Budapest, Ménesi út 57.

(1) 250-5505 info@ sasszemklinika.hu

K–Med Kft. (100) –

istván Ferincz – –

1007 Budapest, Margitsziget, Ensana Thermal Hotel (1) 450-3333 info@focusmed.hu

50

(1) (99)

dennis diokno Andrea Vízvári –

1015 Budapest, Hattyú utca 14.

(1) 224-9090 info@ firstmedcenters. com

Ádám bálint Tamás Módos Sándor Forgács

1134 Budapest, Lehel utca 8.

(1) 783-6004 info@ medocklinika.hu

13

Allergology, angiology, internal medicine, dermatology and pediatrics, diabetology, dietetics, breast diagnostics, endocrinology, Medoc vascular surgery, occupational health, otorhinolaryngology, Incontinence treatment, shock Egészségközpont gastroenterology, paediatric cardiology, paediatric orthopaedics, wave therapy, laboratory services Zrt. immunology, cardiology, neurology, gynecology, pulmonology, radiology, rheumatology, surgery, ophthalmology, urology, lymphoedema outpatient care

2008

33

Andrea Szegedi, Tamás Módos, Rock Data Kft. (100) –

One-day surgery, outpatient specialist care, aspiration cytology, cooled prostate thermotherapy, menopause outpatient clinic, fat grafting treatment

1994

16

(100) –

lászló Rudas – –

1125 Budapest, Istenhegyi út 31/B (1) 224-5424 info@ihklinika.hu

19

Kornél Sándor, Katalin Éva Bohn (100) –

katalin brigitta Putz – –

1042 Budapest, Árpád út 47.

(20) 554-1498 recepcio@ springdaymedical.hu

12

András László (50), Edit Kelemen (50) –

andrás lászló – –

1037 Budapest, Bécsi út 85.

(70) 311-1615 info@ professionalrendelo.hu

Istenhegyi Magánklinika Zrt.

Dermatology, endocrinology, diabetology, vascular surgery, ear, nose and throat, gastroenterology, immunology, cardiology, gynecology, surgery, urology

313

Oxygen Medical Kft.

Allergology, internal medicine, dermatology, diabetology, endocrinology, vascular surgery, physiotherapy, dentistry, occupational health, ENT, gastroenterology, physiotherapy, cardiology, laboratory tests, managerial screening, neurology, gynecology, orthopaedics, plastic surgery surgery, rheumatology, ophthalmology, ultrasound, urology

304

Professional Orvosi Kft.

Gastroenterology, paediatric gastroenterology, proctology, internal medicine, endocrinology, diabetology, neurology, psychiatry, dermatology, rheumatology

593 (2020)

sPRingday mediCal magÁnoRvosi 19 közPont www.springdaymedical.hu

A = would not disclose,

1,080

Endocrinology, cardiology, proctology, psychiatry, vascular surgery, gastoneterology

Allergology, anaesthesiology, internal medicine, dermatology, family medicine, diabetology, dietetics, endocrinology, headache clinic, dentistry, occupational health, ear, nose and throat, gastroenterology, pediatrics, pediatrics, hematology, hepatology/ transiensis elastography, immunology, cardiology, hand surgery, Surgery, gastroscopy, colonoscopy, laboratory diagnostics, mammography, thoracic surgery, occupational health nephrology, neurology, gynecology, orthopaedics, periodontology, plastic surgery surgery, proctology, psychiatry, pulmonology, rheumatology, radiology, surgery, sports medicine, oral surgery, ophthalmology, ultrasound, urology

sWiss PRémium 12 egészségközPontok www.swissclinic.hu

FoCus mediCal lézeRes lÁtÁsJavító 15 közPont www.focusmed.hu

otHeR seRviCes

yeaR establisHed

name oF oPeRating ComPany

Special Report | 21

no. oF Full-time emPloyees on maRCH 1, 2022

9

ComPany Website

total net Revenue in 2021 (HuF mln)

Rank

Budapest Business Journal | April 8 – April 21, 2022

–

Psychology

2008

1990

This list was compiled from responses to questionnaires received by April 6, 2022, and publicly available data. To the best of the Budapest Business Journal’s knowledge, the information is accurate as of press time.

The list is based on companies’ voluntary data submissions. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Additions or corrections to the list should be sent on letterhead to the research department, Budapest Business Journal, 1075 Budapest, Madách Imre út 13–14, or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu

5

www.bbj.hu

Budapest Business Journal | April 8 – April 21, 2022

Socialite

Life’s A Beach, Even in Hungary: Martin Parr at the Budapest Photo Festival

British photographer Martin Parr, whose “Life’s A Beach” show at Műcsarnok on Heroes Square in Budapest is the must-see exhibition of the sixth Budapest Photo Festival for me, has written “You can read a lot about a country by looking at its beaches.”

of the city. In Szeged, there is a tiny strip of sand on one bank of the River Tisza that is packed with sunbathers in summer.

The more adventurous even take a few steps into the swiftly flowing river.

Then there is Lake Balaton. As someone who was fortunate enough to grow

up

14

or so kilometers from the British coast and who spends as much time as he can on the island of Mallorca, I like to think of myself as a bit of a connoisseur of beaches.

By my standards, the beach at Siófok is far from impressive and the experience of taking the tepid waters of Lake Balaton doesn’t compare with swimming in the Mediterranean. Despite national pride, I’m sure any Hungarian would agree.

My partner, a fierce patriot, melts when she sees my local beach in Mallorca. As soon as we arrive, whatever the time of day, we scamper to the beach so she can commune.

She even harbors fond feelings for the pebbly beaches that line the grey-brown North Sea, in which I grew up swimming.

Seaside Vibe

The best thing about Siófok for me isn’t the swimming or the beach. It’s the one or two streets lined with bars and restaurants that run parallel with the water’s edge. I don’t know what they’re like right now – does the Balaton summer “Close-up of Face,” Spain, Benidorm 1997 pigment, print © season start this early? – but in the Martin Parr / Magnum Photos. Photo courtesy of Műcsarnok. height of summer those streets have as much vibe as any seaside resort.

This proves to me that, for the most sunning herself next to a caterpillar digger published images as “propaganda” and fortunate of us, the beach remains a DAVID HOLZER on what must have been a supremely necessary place of escape from the rest has accepted advertising commissions, uncomfortable stretch of concrete at New uses seductiveness, along with humor, to of our lives. It doesn’t even have to be Reading this instantly made me wonder Brighton Beach near Liverpool. real, as Parr’s surreal photo “Ocean Dome, provoke us into questioning what we’re what Parr would think of Hungary, which But Parr has also photographed people consuming through our eyes.

Japan, 1996” demonstrates. This shows a has no beaches. In the United Kingdom, on beaches all over the world, from crowd of people reclining on an entirely “The fundamental thing I’m exploring by contrast, “one is never more than 75 Latvia to Argentina. There are always artificial interior beach or swimming in constantly is the difference between the miles away from the coast,” Parr writes. people on his beaches. He doesn’t appear mythology of the place and the reality of water in front of a depiction of a blue sky.

This has led to “a strong tradition of to do landscapes.

Martin Parr’s “Life’s A Beach” is only it,” he says. “Remember I make serious photography by the seaside.”

Looking at Parr’s photos in the flesh, as photographs disguised as entertainment. one of the exhibitions taking place Parr’s photography of the British on their it were, I’m always struck by how colorful That’s part of my mantra. I make the across Budapest between now and June beaches emphasizes what he calls “mildly they are. At first glance the beach as part of the photo festival. pictures acceptable to find the audience eccentric British behavior.” This is certainly photos are seductive, making the viewer The aim of the festival is to position but deep down there is actually a lot evident in the “Life’s A Beach” exhibition immediately wish they were sunbathing going on that’s not sharply written in your Budapest as the “City of Photography” by which includes a photograph of a woman themselves. But Parr, who regards face. If you want to read it you can read it.” offering an opening international show, Parr’s, in this case, and an overview of So, while our first response to Parr’s contemporary Hungarian photography. beach photos is usually that we wish we I’ll certainly be checking out the were there, his real aim is for us to consider exhibition of experimental contemporary what beaches mean in our culture. On the Hungarian photography at the surface, they represent escape, but they’re atmospheric Kiscelli Museum in the also places where people, who are often hills on the Buda side of the city. A great poor, eke out a living by selling umbrella excuse for me to visit what is probably hats or offering massages. my favorite museum in Budapest.

First Steps Of the other exhibitions, “40 years of In recent years, beaches have increasingly the Hungarian Press Photo Competition become places where refugees fleeing and Exhibition” at the Robert Capa conflict, dire economic straits and the Contemporary Photography Center just effects of climate change take their first off Király utca in the center of the city steps into what they hope is a new life. looks especially interesting.

This is what occurs to me when I stand In any case, there are around 50 in front of Parr’s beach photographs, but I exhibitions and programs taking place in would imagine that, for Hungarian viewers, more than 40 galleries, cultural institutes other associations spring to mind. and museums across the city so there’s I wrote earlier that Hungary has no plenty to choose from in the coming beaches which is, of course, not true. What couple of months. it doesn’t have is a coastline, although it does have a navy that runs minesweepers and other craft along the Danube.

You’ll find full details of the sixth Hungarian beaches are found along Budapest Photo Festival at “Woman and Child,” Great Britain, England, New Brighton 1985 pigment, rivers. Római strand is a strip of beach on www.budapestphotofestival.hu. print © Martin Parr / Magnum Photos. Photo courtesy of Műcsarnok. the Buda side of Budapest a little way out

5

www.bbj.hu

Budapest Business Journal | April 8 – April 21, 2022

Olaszrizling in Österreich and Further Cross-border Cooperation Over the border in Austria, Olaszrizling is also a prominent grape.

It is usually known as Welschriesling, although one Burgenland producer does use the Hungarian moniker. More on him later.

This pan-Central European white grape doesn’t have the loftiest of reputations in Hungary compared to the likes of Furmint, and suffers an even lowlier status in Austria, where it is pushed aside by the likes of Grüner Veltliner and Riesling. hugging Vaskereszt. This village has just 330 inhabitants, most of whom work over the border in Austria in various jobs All that said, Welschriesling does play rather than turn out wine from what I rate a significant role in Burgenland’s sweet as tremendous terroir. Somló’s Kreinbacher wines, such as Trockenbeerenauslese winery now has a Kékfrankos vineyard and Ruster Ausbruch. here, and owner Jozséf Kreinbacher Christoph Wachter, from Weingut himself comes from Vaskereszt.

Wachter Wiesler in Eisenberg, in the Garger has a joint project with his Austrian south of Burgenland, on the border with cousin Rainer Garger, a Graz-born, ViennaHungary, said at a Burgenland Masterclass based businessman who came up with in Donnerskirchen on March 25 that his the idea and finances the “Nador project,” winery uses the Hungarian name due to the whereby his cousin grows the grapes, with poor reputation of Welschriesling in Austria. Wachter and Reinhold Krutzler make the He also noted that it was once the most wine. Eisenberg Hungary Kékfrankos Ried planted grape in his region. Wachter Wanzer ‘Nador’ 2012 (EUR 29 from www.

Wiesler’s Olaszrizling 2020, which comes nadorwine.com) comes from vines that were from organically grown grapes, has a just nine years old when the wine was made. good structure with zesty acidity and pear, green apple, and lemon aromas and flavors, More Sophisticated with a subtle salinity on the finish. It was Hungary actually has more Kékfrankos than Austria has Blaufränkish: it is the spontaneously fermented in steel tanks, then aged for 12 months in large barrels. It same grape, although there are clonal was bottled unfined and unfiltered. It costs differences. Blaufränkish is generally EUR 12.90 from www.wachter-wiesler.at. considered more sophisticated than Kékfrankos due partly to the variety being Wachter and his winery’s connection with Hungary doesn’t end with Olaszrizling. at the forefront. In Hungary, it has long Eisenberg straddles the Hungarian border, played second fiddle to international grape varieties. However, the best Hungarian and on our side, it is known as Vashegy Kékfrankos wines are now fit to share the (both names translate as Iron Mountain) same table as their Austrian counterparts, and is home to one of my favorite and some are made from Austrian clones.

Kékfrankos wines from Imre Garger.

Austrianwine.com describes Blaufränkish His 2018 Kékfrankos selection costs as a “traditional Austrian variety [that] HUF 3,080 from www.garger-pince.hu. is a cross between Sbulzina and Weißer Garger considers himself a HungarianGerman (descended from Bavarian German Heunisch.” It notes, “Blaufränkisch was previously widely-planted throughout settlers who came to the area 900 years the Habsburg Monarchy.” In Germany, it ago) and a hobby winemaker. He produces 8,000-10,000 bottles a year in the border- is called Lemberger, a name that comes ROBERT SMYTH

from the present-day town of Maissau in Niederösterreich (today in Austria), which was formerly called Limberg.

“While the Burgenland decided to become part of Austria in 1921, our Hungarian history is important, and we have lots of connections with Hungary,” said Georg Scheitzer, managing director of Wein Burgenland, speaking at the aforementioned Burgenland masterclass.

“We have some Furmint and Hárslevelű, and these varieties, with their higher acidity, might be better equipped to deal with the effects of climate change,” he noted. Furmint is particularly prominent in the Burgenland town of Rust, where it is used for making both dry and sweet wine, with natural winemaker Michael Wenzel’s dry single-vineyard bottlings highly rated.

His father, Robert, brought cuttings over from Hungary in the mid-1980s.

Josef ‘Pepe’ Umathum of the Umathum winery, in Frauenkirchen, makes an excellent dry Hárslevelű, which goes by the name of Königlicher Tafelwein.

The latter word indicates it is classified as table wine as the grape is currently not officially permitted for quality wine in Austria, despite being very good.

Umathum has re-established the grape that was also called Lindenblättriger in the area, possibly even more of a tongue twister than Hárslevelű. Umathum wines are sold by DropShop in Hungary, although it is currently out of the Hárslevelű.

The 2018 Königlicher Tafelwein costs

Socialite | 23

EUR 15.50 direct from www.umathum. at. Umathum is also renowned for proving that Zweigelt (a crossing of Blaufränkisch and St. Laurent) can make really complex wines from single vineyards.

Growing World Fame

Meanwhile, Furmint continues to gain traction in the wine world. In February, master of wine Caroline Gilby ran a session for the United Kingdom’s Circle of Wine Writers entitled “Let’s Talk About Fantastic Furmint and why it’s the Next Great White Grape.”

While the traditional Furmint February event didn’t happen in February this year in Budapest, it is set to go ahead under the name Furmint Nagykóstoló (Grand Tasting) on May 19 in Hagyományok Háza (Hungarian Heritage House) at Corvin tér 8 in Buda’s District I. However, Furmint February did go ahead in London this year, and Furmint also spread its web wider, with another tasting in Edinburgh.

On a recent visit to the Pajzos winery in Sárospatak in the Tokaj wine region, managing director Laurent Comas told me that Hárslevelű can be even better than Furmint as a single varietal wine. Pajzos also adds a few percent of Hárslevelű to its Furmint.

For example, its T Furmint 2020 is 85% Furmint, 13% Hárslevelű and 2% Sárgamuskotály. This is fresh as a daisy, light, lively and lemony, with notes of pear and quince, and great value at HUF 1,790 from www.pajzos.wineshop.hu. Pajzos’ Hárslevelű Selection 2015 has floral and fruity notes, alongside waxy complexity and a nutty structure, and is another excellent buy at HUF 3,490. “Hárslevelű ages in a way whereby it picks up after a period of going flat,” said Comas.

Pajzos is celebrating its 30th anniversary this November and also owns the Megyer label. Pajzos and Megyer are the names of the vineyards in which the winery cultivates a total of 117 hectares; 54 hectares in Pajzos and 63 in Megyer.

“These are very different vineyards: Megyer [closer to Sárospatak] is warmer with vines planted in the 1970s. There can be a two-degree difference between it and Pajzos, where the vines were replanted between 1999 and 2004. We can play with the two vineyards in the winemaking,” Comas told the Budapest Business Journal.

between hell and paradise

2022. április 9. – július 17.

Hieronymus Bosch, The Last Judgement (detail) | Ca. 1515 © Musea Brugge, www.artinfl anders.be, Photo: Dominique Provost

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