Budapest Business Journal 3117

IT & System Integration

Hungarians Seek Health, Sustainability from AI: Bosch×Richter Survey

Innovation is in our homes, cars, hospitals and most areas of our modern lives. But how do Hungarians view rapid technological development and the role of AI? The Bosch Group and Richter Gedeon decided to find out.  15

Lazy Felix Offers an end to Downloading to Upload

Serial entrepreneur András Györfi recently launched a browser extension, Lazy Felix, which received a second round of funding from Hiventures earlier this summer.  17

New Class, New Future

SOCIALITE

Disadvantaged Kids

Enjoy Billie Eilish set at Sziget 2023

David Holzer tells the touching story of how countryside Roma children’s charity InDaHouse began working with the organizers of the annual Sziget Festival so that a group of kids could get to see their idol perform in Budapest this year.  21

Industry Expands, Promising Signs on the Horizon

There is light at the end of the tunnel, at least regarding Hungarian industrial production: it grew month-on-month, while vehicle manufacturing increased year-onyear in July. Overall production, however, has declined.  3

Hungary Kft., talks about progress at “plant Debrecen” and how the Neue Klasse of models made there will help shape the automotive future.  8

Green Homes Increasingly Important to the Market

The next couple of years are unlikely to bring about a significant positive turnaround. However, concentrating on energy efficiency could stimulate a stagnating market and promote more cost-efficient homes.  10

Hans-Peter Kemser, president and CEO of BMW Manufacturing

EDITOR-IN-CHIEF: Robin Marshall

EDITORIAL CONTRIBUTORS: Luca Albert, Balázs Barabás, Zsófia Czifra, Kester Eddy, Bence Gaál, Gergely Herpai, David Holzer, Gary J. Morrell, Nicholas Pongratz, Gergő Rácz.

LISTS: BBJ Research (research@bbj.hu)

NEWS AND PRESS RELEASES: Should be submitted in English to news@bbj.hu

LAYOUT: Zsolt Pataki

PUBLISHER: Business Publishing Services Kft.

CEO: Tamás Botka

ADVERTISING: AMS Services Kft.

CEO: Balázs Román

SALES: sales@bbj.hu

CIRCULATION AND SUBSCRIPTIONS: circulation@bbj.hu

Address: Madách Trade Center 1075 Budapest, Madách Imre út 13-14, Building B, 7th floor. Telephone +36 (1) 398-0344, Fax +36 (1) 398-0345, www.bbj.hu

What We Stand For: The Budapest Business Journal aspires to be the most trusted newspaper in Hungary. We believe that managers should work on behalf of their shareholders. We believe that among the most important contributions a government can make to society is improving the business and investment climate so that its citizens may realize their full potential.

The Budapest Business Journal, HU ISSN 1216-7304, is published bi-weekly on Friday, registration No. 0109069462. It is distributed by HungaroPress. Reproduction or use without permission of editorial or graphic content in any manner is prohibited. ©2017 BUSINESS MEDIA SERVICES LLC with all rights reserved.

IN PRAISE OF BUSINESS MIXERS

As has been said many times before, we deal in the currency of facts and figures, the numbers and statistics that provide the bedrock for informed business intelligence and offer deep insights. There can be no alternative for a B2B publishing house such as ours, especially if we really do aspire to achieve our mission statement of being “the most trusted newspaper in Hungary.”

But I will let you in on a secret. That data, those numbers, vital though they are, represent the granular detail, not the big picture. They are a snapshot in time, a reference point that tells you whether you are on track. Put crudely, whether you are up, down, or static/plateauing/stagnating/in balance (insert your adjective of choice here).

The Budapest Business Journal’s business mixers were almost legendary back in the day; just ask anyone who worked here in the Nineties and the Naughties. But as schedules grew increasingly crowded, finding space for them in the diary became harder. That changed with the pandemic. We brought the mixers back because there was, once again, an appetite to meet and mingle face-toface after a surfeit of Team/Zoom/Skype/FaceTime/Jitsi (no, me neither) meetings.

VISIT US ONLINE: WWW.BBJ.HU

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.

• 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.

• 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.

• 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.

For more information visit budapestbusinessjournal.com

Put another way, data records business, and it is highly informative but does not drive business. That demands something much less “dry.” Much more flesh and blood, in fact. It requires human interaction. With that in mind, it was a joy to welcome so many familiar faces, and quite a few new ones, to our Back-to-Business Sundowner on Thursday, Sep. 14, hosted by the Budapest Marriott Hotel on the terrace in front of the DNB Budapest Wine Bar and Kitchen, and sponsored by Heineken. Good people, a great atmosphere and a stunning view are never a bad combination, even if you are saying goodbye to the summer. The upside is we have the fall season ahead of us, and who knows what opportunities that will bring?

Those video conferencing apps were absolutely essential to getting through COVID and keeping businesses afloat, if not in good health. Still, perhaps the most valuable act they performed was to remind us that meeting someone face-to-face and in person is a much better way of doing business than face-to-screen. We are a social species, and pretty much all business is people-centric. I have written before that when I was a trainee reporter all those years ago, the one thing they used to hammer home to us, above all else, was finding the human element of a story. Since you can make a powerful argument that just about everything in commerce comes down to telling a story to sell a product or service, the same is surely true of doing business. We look forward to finding that “human element” with more of you at our next mixer.

Robin Marshall Editor-in-chief

THEN & NOW

In the color photo (left) from state news agency MTI, cyclists attend the European Mobility Week “bike breakfast” in the capital, at the corner of Kossuth Lajos tér and Alkotmány utca in District V on Sep. 19. In the black and white picture dating from 1976 (above), from the Fortepan public archive, cyclists take a break on Eötvös út, near Normafa.

Photo by Zoltán Máthé MTI

Photo by Tamás Urbán / Fortepan

Industry Expands, Promising Signs on the Horizon

There is light at the end of the tunnel, at least regarding Hungarian industrial production: it grew month-on-month, while vehicle manufacturing increased year-onyear in July. Overall production, however, has declined.

The volume of industrial production declined in July by 2.6%, year-on-year, while, based on working-day adjusted data, it fell by 2.5%, according to the latest data released by the Central Statistical Office (KSH).

Production dropped in the majority of the manufacturing subsections but, at the same time, grew in the sector carrying the most significant weight, the manufacture of transport equipment and of electrical equipment. According to seasonally and working-day adjusted data, industrial output was 2.8% higher than in June 2023.

The manufacture of transport equipment, representing 28% of the manufacturing production (having the largest weight), grew by 14.4% compared to the same month of the previous year. Motor vehicle manufacturing went up by 21%, and the manufacture of parts and accessories for motor vehicles rose by 9.2%.

The volume of industrial exports was 2.2% lower than a year earlier. Transport equipment exports, representing a

35% weight

within export sales in manufacturing, grew by 15.9%, while exports in the manufacture of electrical equipment, accounting for a 14% weight, went up by 10.6%.

The domestic sales of industry fell by 11%, with manufacturing decreasing by 6.5% compared to the same month of the previous year. Within industry, manufacturing output, which accounts for a decisive share in industry (95%), declined by 2.3%, that of mining and quarrying, having a small weight, fell by 35%, and production in the energy industry (electricity, gas, steam and air conditioning supply) dropped by 21%.

Inflation in EU Member States (August 2023)

12-month change in consumer prices

For January-July 2023, compared to the same period of the previous year, industrial production decreased by 4.5%. The volume of export sales, representing 60% of all sales, declined by 0.5%, while domestic sales (accounting for 40% of all sales) fell by 16.4%.

Smaller than Expected

Of the 13 subsections of manufacturing, production decreased in eight, and to the greatest extent, by 23%, in manufacturing chemicals and chemical products. In the other five, production volume rose between 1.3% and 19.1%, mostly in the manufacture of electrical equipment; the output in the manufacture of transport equipment, considered the largest subsection, went up by 14.5%.

According to MBH Bank’s senior analyst Gergely Suppan, the decrease in industrial production was smaller than expected.

“The stagnation of industrial production experienced since the beginning of the fourth quarter of last year was mainly caused by the curtailment or shutdown of production in energy-intensive sectors as a result of the explosion of energy prices,” he wrote in a comment.

“In some sectors, especially in the food industry, weakening internal and external demand resulted in more subdued production. Due to lower energy consumption (partly due to the mild winter weather and partly due to forced energy savings), industrial

production was also dragged down by the decline in the production of the energy-producing sectors,” he added.

As for what to expect in the near future, Suppan thinks the outlook is boosted by the fact that new orders in the vehicle industry increased by

18.6%

in June, while its order stock was 4.9% higher than a year ago.

“After the expected temporary fluctuations caused by the energy crisis, we expect a gradual revival in industrial production in the second half of this year, which is due to the gradual recovery of internal demand and the expected commissioning of new capacities, mainly related to battery production and the automotive industry, as well as the food, chemical, and defense industry,” Suppan said.

Fragile Performance

This year, due to the fragile performance in the first half of 2023, Suppan expects a decrease of around 2.5% in industrial production. However, from 2024, as a result of the new capacities coming up, industrial production could significantly pick up and may exceed 8% due to this year’s weak base.

Consumer prices were 16.4% higher on average in August 2023 than a year earlier. The prices of electricity, gas and other fuels, as well as motor fuels, rose significantly over the last 12 months.

In one month, compared to July 2023, consumer prices were up by 0.7% on average. Food became 0.3% more expensive, within which sugar rose by 54.6%, pork by 7.3%, poultry meat by 2.5%, buffet products by 2.3%, edible oil by 1.5% and chocolate and cocoa 1%. Flour became 11.5% more expensive, eggs 9.5%, seasonal food items (potatoes, fresh vegetables and fresh domestic and tropical fruits) were up 5%, butter 4.4%, and bread 2.3%, but milk products were 1.9% cheaper.

Motor fuel prices rose by 8.2%. Consumers paid 1.6% less for clothing and footwear and 0.3%

less for electricity, gas and other fuels, within which electricity prices fell by 0.6%, while natural and manufactured gas prices were unchanged.

Another significant indicator was released on September 8, although this proved to be a bit disappointing for analysts. Inflation was slightly higher than expected at 16.4% in August. Primarily, the repeated rise in food prices may have caused the unpleasant surprise, although the previously worrisome price rise in services has slowed. Petrol prices also showed a significant increase.

According to economic portal portfolio.hu, analysts had expected a 16.2% figure for August. In the previous month, annual inflation was 17.6%.

ZSÓFIA CZIFRA

Cordia Undertakes new Project as it Sells 10,000th Apartment

Residential developer Cordia International, the residential arm of the Futureal Group, has sold its 10,000th apartment. This is the result of nearly two decades of operations, providing homes for 17,000 people. The number of dwellings Cordia has sold is enough to accommodate the population of a small town, the developer says. It has also announced plans for a significant new urban regeneration project in Budapest.

Around 70% of the 10,000-strong apartment stock is located in Budapest. In Poland, the company’s secondlargest market, more than 2,400 homes have been sold. In addition, Cordia has sold more than 600 homes in Romania, Spain and the United Kingdom.

The developer also has a significant portfolio in the rental housing market in several countries and plans to increase further the share of foreign construction and sales.

Real Estate Matters

“The first chapter of Cordia’s story began after the turn of the millennium with the 144-apartment La Siesta residential park,” says Tibor Földi, chairman of the board of Cordia International.

“In nearly two decades since then, Cordia International has become one of Europe’s leading residential development, construction and investment companies. We are still working on developing thousands of homes, and looking ahead to the next seven years; we plan to sell more than 7,000 homes in Hungary and international markets. We also plan to further increase the share of international sales in the future,” Földi notes.

Cordia defines their projects as “neighborhood revitalization developments.” A notable example often cited by the company is Corvin Promenade, the widest pedestrian street in Budapest, together with the complete renewal of the surrounding district.

As part of the project, the company is building almost 3,000 apartments on a gross area of 200,000 sqm and has developed and renovated 23,000 sqm of public space under the aegis of Futureal Group. The project was implemented in partnership with the District VIII Municipality to bring new life to a rundown urban area.

Huge Milestone

“The sale of our 10,000th home is a huge milestone in Cordia’s life, achieved with a team of experts, many of whom have been with us from the start,” adds Gábor Futó, co-founder and principal shareholder of Futureal Group.

“Over nearly 20 years at Futureal Group, we have successfully combined residential, commercial and office development in our domestic and international urban regeneration projects. This synergy has led, among other things, to the birth of the iconic Corvin Promenade. These two decades of knowledge will also help us realize our next grand domestic project, Marina City,” Futó adds.

Ground clearing for development of the group’s next large-scale urban regeneration project or Budapest city quarter, Marina City, with 1.2 km of waterfront on the Danube, has begun.

“Here, a 14-hectare area will be revitalized, within easy reach of the city

center, next to the extended North Pest riverside promenade, surrounded by 90,000 sqm of landscaped green space. Urban neighborhood renewal developments in the company’s foreign markets are also becoming increasingly significant,” concludes Cordia.

“We are still working on developing thousands of homes, and looking ahead to the next seven years; we plan to sell more than 7,000 homes in Hungary and international markets. We also plan to further increase the share of international sales in the future.”

In 2018, Cordia announced plans for its Millennium Quarter project in District IX, close to the Danube, the Soroksári út office corridor, Müpa (the former Palace of Arts), the National Theater and numerous higher education institutions.

According to Cordia’s plans at the announcement, the residential buildings will be built along a common axis on several sites close to each other, meaning more than 1,000 apartments will be erected in several phases.

GARY J. MORRELL

A biweekly look at real estate issues in Hungary and the region

The Cordia Atrium Residence at the Corvin Promenade, Budapest.

Cordia’s Modena project in Poznan, Poland.

War or Words Continues Over Ukrainian Grain Export Bans Roundup Crisis Ukraine

The EC had introduced measures banning the export of wheat, maize, rapeseed and sunflower seed from Ukraine to Hungary, Poland, Slovakia, Romania, and Bulgaria on May 2, 2023, after these countries had introduced unilateral bans of their own on a broader range of agricultural products from their beleaguered neighbor.

These countries justified their prohibitions, claiming that an exemption from customs duties and quotas for Ukrainian grain, intended to expedite deliveries to countries in the Middle East and Africa and referred to as “Solidarity Lanes,” had caused a surplus in their domestic markets. Initially set to expire on

June 5,

the EC chose to extend the temporary measures until Sep. 15.

According to a statement from the EC, it had analyzed the data on the impact of the export of four agricultural products on the EU market and determined that the constructive attitude of all participants of the Coordination Platform had helped to solve specific problems and ensured that exports to third countries outside the EU passed through the community.

Accordingly, Ukraine agreed to put in place adequate measures to control the export of these four groups of goods in order to prevent any market distortions in the neighboring member states and, if necessary, to introduce legal measures, such as an export licensing system, within 30 days to avoid grain surges.

Extension Request

However, agricultural ministers from the five member states had continuously pressed for an extension of these measures until the end of the year, with authorities from Hungary and Poland threatening to reintroduce bans of their own if the EC followed through with its Sep. 15 expiration date.

Consequently, Hungary, Poland and Slovakia proceeded to do just that following the EC’s announcement, with Hungarian Minister of Agriculture István Nagy announcing in a video published on his Facebook page that, in addition to Ukrainian grain, the restriction would also include flour, cooking oil, honey, certain types of meat and eggs.

Speaking to Hungarian public media in Brussels on September 18,

Nagy called the EC’s decision to let the temporary measures expire “outrageous, unacceptable and non-transparent.”

In addition to causing a “serious problem,” Nagy said the fact that EC President Ursula von der Leyen had consulted on the matter with Ukrainian President Volodymyr Zelensky rather

Spirit of Compromise

“What is important right now is that all countries work in the spirit of compromise and engage constructively,” a commission spokeswoman said.

Meanwhile, Ukraine responded by announcing that it would sue Hungary, Poland, and Slovakia in the World Trade Organization, Ukraine’s Trade Representative Taras Kachka told Politico.

than with the heads of member states “raised separate political questions.” He called for a reinstatement of the EU ban on Ukrainian grain imports in neighboring member states, with the option for any member state to ask for an exemption.

In response to the reintroduction of the unilateral bans, the EC called on Poland, Hungary and Slovakia to be constructive.

“It is important to prove that these actions are legally wrong. And that’s why we will start legal proceedings tomorrow,” Kachka said on September 17.

A WTO spokesperson confirmed that Ukraine had taken the first step by filing a complaint to the global trade body.

“We can confirm that a request for consultations was received Monday evening,” the spokesperson told international news wire Reuters.

NICHOLAS PONGRATZ

Satisfied that distortions in the domestic markets of five European Union member states bordering Ukraine have been eliminated, the European Commission allowed temporary measures banning the export of certain agricultural products to these countries to expire on Sep. 15.

Hungarian Minister of Agriculture István Nagy has called the European Commission’s decision to end the Ukraine grain ban “outrageous, unacceptable and non-transparent.” He is pictured here at second right, cutting a ribbon at a ceremony to inaugurate the new warehouse of Mecsek Füszért Zrt. in Veszprém on Sep. 14. Alongside him are (from left) Mrs. Lajos Nagy, CEO of Mecsek Füszért Zrt., Minister of State for Food Industry and Trade Policy of the Ministry of Agriculture Márton Nobilis, László Pekó, chairman of the board of Co-Op Hungary Zrt. (center) and Tamás Kovács, president of the contractor Szabadics Zrt. The investment, worth more than HUF 3.5 billion, was realized with a non-refundable state subsidy of HUF 765 million. Photo by Tamás Vasvári / MTI

“What is important right now is that all countries work in the spirit of compromise and engage constructively.”

Workforce Shortages and Selfdiagnosis Among Health Trends Health Matters

Recent years have seen many changes in healthcare, driven by COVID-19, the energy crisis and accelerated digitalization. However, the most pressing issue is the growing workforce shortage. We look at some of the developing trends.

According to a recent European Commission report, the Hungarian healthcare system is one of the most understaffed in Europe, with a low number of nurses and doctors per 1,000 people. Digitalization and artificial intelligence are becoming more critical, but they will not solve the workforce shortage, as they will not be able to replace intuition and the role of direct doctor-patient relationships.

The demand for private healthcare has increased significantly in recent years. Whereas previously, it only attracted the top 10% of society, it is now being used by the middle and lower classes, particularly due to COVID-19 restrictions, reduced public capacity and the abolition of the gratuity system of all but institutionalized “tipping.” According to health fund Prémium Egészségpénztár, one in five visits to a specialist in 2022 were to a private healthcare provider.

The private market is seeing more new entrants, with practices opening up all the time despite the shortage of doctors and assistants to fill them. According to

2021

data

from the Central Statistical Office (KSH), 96% of health worker positions were filled (for nursing posts, the figure is 97%; for doctors, it is 96%). To address the growing shortage of staff and to plan capacity adequately, there is an increasing need for a regulated coexistence between private and public healthcare, experts say.

According to László Babai, founding director of Prima Medica Health Centers, the energy crisis has spilled over into private healthcare, but the public sector is more affected because it cannot compensate for the energy expenditure on the revenue side.

The Bigger Picture

In contrast, the private health sector can pass on the increased costs to patients, meaning changes in human resources are

a bigger problem for it than energy issues. The current increase in assistant salaries alone will entail a 15-20% increase in fees while maintaining professional standards, while energy has only brought about a maximum increase of 4-5%.

While in the past, the patient craved detailed explanations and more human care, the focus is now on complementing public healthcare and increasing access to treatments. The demand for second, third and multiple consultations has increased, as has the prevalence of self-diagnosis, both at home and globally.

Technological innovation and AI are also playing an increasingly important role in healthcare. With the increasing use of templates in processes and care, many providerswant to reduce costs through fewer human resources and more routinization. This is, indeed, needed, but machines cannot entirely replace human interaction. Healthcare has always been primarily personalized, and this will not change in the future.

AI can help patients and professionals in many areas, including big data diagnostics, patient monitoring, medical imaging and improving the efficiency of healthcare systems. At the same time, the role of intuition based on deep professional knowledge remains vital, as doctors often need to call on their experience in addition to objective indicators.

AI has been used for years in mole screening, for example, but the focus remains on personal care, support and human relationships at Prima Medica, the company says, arguing that this is what sick people in precarious situations most need.

Patients’ expectations are constantly changing. While in the past, the patient craved detailed explanations and more human care, the focus is now on complementing public healthcare and increasing access to treatments. The demand for second, third and multiple consultations has increased, as has the prevalence of self-diagnosis, both at home and globally.

The Rise of Self-knowledge

People are collecting more of their own data through smart devices and thus have more information about their condition, leading to greater engagement. According to a 2022 survey by Semmelweis University (the largest provider of healthcare services in Hungary, according to its website), almost 75% of patients in Hungary believe that using digital devices improves the efficiency of care. There are many benefits

A monthly look at health issues in Hungary and the region

to using them, but self-diagnosis online is often incorrect and can, therefore, put patients’ health and safety at risk.

With the development of digital technology, the use of online registration and telemedicine in the healthcare sector is becoming more prominent. Around 50-60% of

check-ins are done online, while telemedicine is also on the rise.

While these solutions have many advantages, it is important to highlight their limitations. With online appointments, the rate of errors, where patients make the wrong appointment with the wrong doctor, has increased significantly. This is inconvenient for the patient who makes the mistake while depriving other patients of an appointment and wasting time and energy on all sides in an area with a fundamental lack of capacity for care.

A further problem is so-called “impulsive registrations,” often resulting in no-shows for booked consultations. The rate has risen to around 20%, which is becoming unmanageable and leading to a significant loss of revenue. In many places, therefore, part or all of the consultation must be paid in advance at the time of booking.

Telemedicine is becoming more widespread in Hungary, with 6.4% of patients having used teleconsultation, according to the Semmelweis survey. Teleconsultation can be very effective if both the patient and the doctor follow professional rules. It can be particularly beneficial in caring for pregnant women and those who already know their own illness.

BENCE GAÁL

Ákos Kovách Promoted Partner at Hogan Lovells Partos & Noblet

Hungarian associate law firm Hogan Lovells Partos & Noblet has announced the promotion of Ákos Kovách to partner.

“I am both honored and delighted to take on this role, to continue to contribute to the growth of our firm and to further strengthen its recognition in the market. I am truly grateful to my partners for their trust, support and friendship,” Kovách commented on his new position. He is head of the office’s competition and antitrust practice. According to a statement from the law firm, he is recognized as an expert in competition law in Hungary and has extensive experience in merger control cases, cartel proceedings and antitrust matters.

He advises clients throughout highlevel competition law-related litigation cases and is also active in advising on the implementation of tailor-made competition compliance programs and training. He also has experience advising major international companies in M&A transactions, with

PRESENTED CONTENT

a proven track record in structuring investments and divestments in Hungary.

Kovách is a certified lawyer in both Hungary and France. He was appointed a foreign trade adviser (CCEF) for France in 2013 and is a member of the Hungarian Association of Competition Law.

“We are delighted to have Ákos among our ranks as a partner. He has robust experience in his specialist area; his practice is very complementary to our leading corporate and real estate practices. With him as a partner we can only grow stronger,” commented László Partos, office managing partner.

Krisztina Enzsöl Joins Atenor

Krisztina Enzsöl is joining the Atenor Leasing team, the company tells the Budapest Business Journal Enzsöl is a wellknown player on the Hungarian office market who was a core member of Cushman & Wakefield’s local team for more than two decades.

She started her career in property management and became the tenant liaison manager of the East-West Business Center

in 2004. Several remarkable transactions led her to the office agency department, where she worked as an associate from 2020.

Enzsöl’s had several significant clients as a tenant representative and acted on behalf of landlords in leasing office buildings such as East-West Business Center, Millennium Towers, Dorottya Udvar, Haller Gardens, and Center Point I-II.

“I am excited that I will be able to demonstrate the experience of 20 years of agency work in the real estate development business. I had multiple chances to move to the landlord side in the last few years, but I just have felt at Atenor that I could fully identify with the company philosophy. Not only the great developments, but the business policy, the international background, and not least the fantastic team which is why I decided on Atenor. I look forward to working together, achieving a lot of success together,” she said.

Dentons Budapest Appoints Ambassador Zombori Partner

The Budapest office of Dentons, one of the largest global law firms, has appointed Ambassador Dóra Zombori to a partner position, highlighting her extensive background in energy policy and international government, corporate negotiation and leadership experience.

“We are delighted to welcome Dóra to the Dentons family. Her strength in advocacy, coupled with her deep understanding of energy policy and government affairs,

will undoubtedly bolster our 360 offering, allowing us to provide our clients with even more comprehensive and impactful solutions,” shares managing partner Gábor Király.

Prior to joining Dentons, Zombori served as the Deputy State Secretary for Energy Security at the Ministry of Foreign Affairs and Trade of Hungary, advocating for Hungary’s energy diplomacy to ensure continued access to energy supplies.

Her career also includes a tenure as Ambassador-at-Large for Energy and Climate, during which she played a role in negotiating Hungary’s new long-term gas supply contract and building up the government’s climate diplomacy advocacy.

Earlier in her diplomatic career in Washington D.C., she was Deputy Chief of Mission, First Counselor for Energy and Political-Military Affairs at the Hungarian Embassy and Transatlantic Diplomatic Fellow at the United States Department of State from 2015 to 2016. She was also Chargé d’Affaires of the Hungarian Embassy in Washington D.C. between April and November 2020.

Before her assignments in Washington, she was head of the Energy Security Unit and held various positions, including energy policy advisor and energy policy coordinator at the Ministry of Foreign Affairs and Trade of Hungary.

Hollywood Strike Will Impact Hungary’s GDP This Year

Film production in Hungary has been hit hard by the U.S. screenwriters’ strike, which began on May 1, and the action by Hollywood’s leading actors, which has been ongoing since mid-July. According to calculations by Andersen Hungary, the downtime will reduce Hungary’s GDP by almost 0.35% over a year and result in a total loss of HUF 70 billion-80 bln in tax revenues for the central budget.

The Hungarian film industry closed another record year in 2022. The production volume exceeded HUF 250 bln, 90% of which came from American funds (in 2016, this figure was only HUF 85 billion). Three main factors drove growth. Firstly, the success of the Hungarian support system, which has brought an increasing number of foreign film

productions to Hungary. The weakening of the forint and the strengthening of the dollar also helped the process (although that trend has reversed this year). The third factor was the rise in service fees, which is experienced globally in the recovery from the COVID-19 pandemic. Currently, Hungary is among the top 10 film production locations in the world. The main profile is to serve overseas studios; only the U.K. film industry represents a greater volume in Europe. This is why film production in Hungary and its nearly 20,000 employees have been hit hard by the strike by the industrial action.

According to Károly Radnai, managing partner of Andersen Hungary, the two parallel strikes impact productions made in Hungary differently.

Pipeline Slows

“The strike by screenwriters only implied a medium-term slowdown; it didn’t cause any immediate damage. It didn’t affect any productions that were already in progress or pre-production here; there were no shutdowns; only the arrival of new projects has slowed down,” he says.

“By contrast, the strike by the Hollywood actors’ union led to the immediate stoppage of almost all larger productions, as filming couldn’t continue without the lead actors and major cast members,” Radnai adds.

In 2016, Andersen’s tax experts contributed to a study published by the Hungarian National Film Fund, according to which every forint spent on film productions in the country generates a budgetary income of HUF 0.32 and increases GDP by HUF 0.8.

“The reason for this is that, behind the spending, there is an intricate high value-added supply chain, predominantly linked to Hungary, with

95%

of its funding coming from abroad. Although tax rates have somewhat changed since then, the ratio of the tax burden to GDP in the national economy has not changed substantially, so we have reason to assume that the ratios published in the study are still similar,” Radnai believes.

Based on the calculations, the Hungarian film industry’s share of GDP is currently 0.35%. Consequently, the downtime reduces Hungarian GDP by almost 0.03% each month, resulting in a total loss of HUF 6 bln-7 bln in tax revenues for the central budget.

Ákos Kovách

Krisztina Enzsöl

Dóra Zombori

2 Business

Debrecen’s BMW iFactory Provides Glimpse Into Automotive Future

our apprentices. We are happy to see this progress, as it is essential to find the right associates with the right attitude.

BBJ: Thinking longer-term, how will you ensure you continue to have enough staff in the future?

H-PK: Culture is a central element for us because we believe it is the key to success. We always emphasize that we are building the future of the BMW Group here in Debrecen. We are one plant and one team. It means that our people and the company culture have played crucial roles in the past year’s developments. Everybody is important and adds special knowledge and contributions to our success. We strive to communicate and show this to our existing and future employees to ensure that the current great interest will also be characteristic in the long run.

BBJ: The BMW Group chose Debrecen to be the first iFactory. What do you think about the city?

BBJ: June 1, 2022, was a significant milestone in the life of BMW Group Plant Debrecen. How do you evaluate progress in the factory since then?

Hans-Peter Kemser: A bit more than a year ago, we celebrated a real milestone for BMW Group, as this day marked the groundbreaking ceremony for BMW Group Plant Debrecen. During the past year, there have been great success stories that our plant and team can be proud of. The construction site, one of the biggest of its kind in Central and Eastern Europe, is progressing, with multiple phases carried out simultaneously. In April this year, we celebrated the topping out ceremony of the paint shop.

We achieved another major point of progress this spring when the first 100 apprentices were selected. They started their dual education program at our training center this September. We were happy to welcome the young students at our plant as their arrival is a vital step towards launching a new structure for vocational training in Debrecen.

BBJ: How long will it be until the factory is fully operational? When will the first models roll off the production line?

H-PK: BMW Group Plant Debrecen will start production in 2025 with more than 1,500 employees, and that will also be when the first model of the allelectric Neue Klasse, which will debut in Debrecen, will roll off the production line.

BBJ: How should we imagine full production in numbers?

H-PK: We will manufacture 150,000 cars annually; by then, one vehicle will roll off the production line every second minute.

BBJ: As you mentioned, Debrecen will produce the Neue Klasse EVs, an iconic name originally used from 1962 to 1977. What will distinguish this 21st-century incarnation?

H-PK: For the distinguishing feature, we should glimpse into the future of the BMW brand: electric, digital and circular. With our new iDrive, the BMW Group is bringing a display and operating concept to the next-generation cars, which enables an entirely new intuitive interaction between driver and vehicle. The next development leap will follow in the Neue Klasse in 2025. The future generation of BMW iDrive will transform the vehicle into a digital experience space. With BMW Panoramic Vision, a new multifunction steering wheel, central display and 3D head-up display as operating elements, the quintessential BMW user experience is being reinterpreted in all Neue Klasse models. The future BMW iDrive will continue to feature the QuickSelect concept introduced in 2023. The system in the Neue Klasse is based on a highly integrated software architecture and uses the next generation of the BMW Operating System. The vehicle’s smart connectivity with the BMW Cloud, as well as the customer’s digital ecosystem, creates an immersive user experience and brings a new dimension to the human-car interaction.

BBJ: The Debrecen facility is designated as an iFactory. What sets it apart from previous BMW plants?

H-PK: Milan Nedeljković, management board member of BMW AG, Production, said: “In Debrecen, we are building the most advanced plant in the world. With our iFactory, we are setting new industry standards for vehicle production. Our investments underline our systematic approach to implementing e-mobility.”

The Debrecen plant will be the first unit within the whole BMW Group to be designed entirely along the iFactory concept from the initial planning phase in the spirit of three main pillars of the future of automotive production: lean, green, and digital. Lean stands for efficiency, precision and extreme flexibility; Green for sustainability, resource-efficiency and circularity; and Digital, for the active use of digitalization in data science, artificial intelligence and virtualization.

BBJ: How is recruitment going? Have you hit your targets for factory staff to date? Are you confident you can hire enough to meet all your immediate needs in an extremely tight labor market?

H-PK: The number of employees at BMW Group Plant Debrecen is significantly growing month by month: in September, the number of our employees was close to 900, including

H-PK: It is important to the whole BMW Group worldwide to be part of our local communities; therefore, it is also essential for us. We are committed to being an active member of Debrecen and its region. We already successfully participated in several events, such as the Debrecen Advent and the Campus Festival, where we showed the iVision Circular model for the first time in Hungary. Recently, we attended the 57th Flower Carnival with a sustainable “flower car” decorated with living plants, which we donated to local educational and social institutes.

our

are

The leading principle in all the above events was our commitment to sustainability, innovation and community. In all cases, it was fascinating to see the kind and warm reception from the public, and we were glad to introduce and convey the messages of our company’s commitment and culture to them.

Besides these, education is also in the spotlight when we talk about the future. We have great collaborations with educational institutes, from kindergarten to vocational training and university faculties. This way, we can ensure that the “future is being built here.”

BBJ: What other plans does BMW have for Hungary?

H-PK: Our company found a home in Debrecen. By building the future here, we are committed to the city and our employees and working on future successes together from our exceptional plant.

Hans-Peter Kemser, president and CEO of BMW Manufacturing Hungary Kft. talks with the Budapest Business Journal about progress at “plant Debrecen.”

“In Debrecen, we are building the most advanced plant in the world. With

iFactory, we

setting new industry standards for vehicle production. Our investments underline our systematic approach to implementing e-mobility.”

Hans-Peter Kemser

Green Homes Increasingly Important in Stagnating Housing Market

Still, it also remains important to obtain a better interest rate in a favorable yield environment, which can be assured by the one-off interest rate reduction service available for OTP Bank’s “Fix Until the End” loans, for example. The third factor is getting support to manage the costs of renovation and modernization through certain OTP loan products with a grace period of one year, Kasziba argues.

A property must have an energy rating of “BB,” and its primary energy demand must not exceed 80 kWh/sqm/ year to qualify for an OTP Bank Green Loan to purchase or construct a new dwelling. In the case of renovation, the investment must lead to a reduction in primary energy demand of at least 30% based on the overall energy performance of the dwelling.

The requirements for meeting the green credit target are reviewed occasionally depending on how regulators see the achievement of climate change mitigation targets. The National Bank of Hungary has already indicated that it will amend the conditions for green credit targets from November 1.

Crisis and Great Recession but could last for years. The market segmentation that is already evident could be further reinforced, and green considerations may, partly out of necessity, become increasingly important.

“The recent turnaround in the housing market has brought changes on both the supply and demand sides, but despite the challenges, OTP Ingatlanpont’s order book grew by 11.6% compared to December last year,” says Balázs Hartlieb, managing director of OTP Ingatlanpont.

have become more prominent, as they are guaranteed to have good technical and energy ratings, meaning running costs are not as high.

Erika Kasziba, the head of the business development team responsible for OTP Bank’s housing loans, says that, due to high interest rates and the decline in customers’ income available for loan repayments, the housing lending market is also expected to decline this year, with an anticipated fall of about half from

The question is whether there will be enough new homes that meet the new energy criteria, at what price they will be available, and at what price the materials and specialists needed to upgrade existing homes will be available, according to Kasziba.

The real estate market is basically in a wait-and-see mode this year on both the supply and demand sides due to the rise in lending rates, falling real wages and the changes in the state subsidy system.

“In the absence of the previous drivers of the housing market, no significant change is expected even in 2024, but the segmented market may still see good deals and market expansion opportunities for larger investors,” says Dávid Valkó, head of real estate market research, OTP Ingatlanpont

According to preliminary data from the Central Statistical Office (KSH), last year, turnover fell by about 13% on an annual basis. According to Valkó, the decline could be 25-30% in 2023, representing a 10-year low with around 100,000 transactions. He believes the correction in the housing market will be milder than the 2008-2013 Global Financial

“In the current, less predictable and uncertain market environment, it is difficult for those who are now looking for or who want to sell a home to find their way around, and, based on our experience, more people are turning to real estate agents.”

Optimistic Outlook

Hartlieb added that, despite the turnaround, he is optimistic, as OTP Ingatlanpont’s transaction volume and commission income had increased by 13% and 17%, respectively, by September compared to the beginning of the year.

According to Hartlieb, there is a high client demand for secondhand, lower-value homes that are low maintenance and can be renovated cost-effectively. These are typically one- or two-bedroom apartments with a floor area of 50 sqm. For detached houses, 70-90 sqm is the most popular size; they are not priced uniformly due to their diversity, and sellers remain more open to bargains.

Partly due to rising utility costs, energy efficiency is becoming important in the housing market, with OTP Ingatlanpont’s experience showing that newly built homes

HUF 1.2 trillion

in 2022.

“Modern homes not only contribute to sustainability; they also generate savings and increase property values. At the same time, the negative impact on people’s appetite for borrowing has also changed customer needs, and in this environment, it is even more important how a bank can respond to new expectations,” says Kasziba.

“The OTP Green Loan, which has been available since July this year for the purchase of new housing, construction, and modernization of existing property, provides an appropriate response to three important customer needs,” she adds.

Significant Factors

The first significant factor is the interest rate subsidy, one of the most critical issues in the current market situation for customers when taking out a home loan. The second is long-term security; in today’s yield environment, where interest rates on short-rate products change regularly, predictability is becoming essential.

“When you want to make your existing or new home more energy efficient, it is important not only to consider utilizing the cheapest energy source at the moment because the value of energy can change due to a number of external factors,” notes Eszter Vései, a chartered architect and building energy specialist.

“Instead, you need to design for the lowest energy demand and the lowest carbon footprint possible because then the maintenance costs will remain low regardless of the energy source,” she says.

Vései also notes that, while changes to the energy certification are coming in November, the rules are not expected to be tightened significantly but will help customers make energy choices in a more user-friendly and transparent way.

While the worst of the housing market predictions made at the end of 2022 did not become a reality, the next couple of years are unlikely to bring about a significant positive turnaround. However, concentrating on energy efficiency could stimulate a stagnating market and promote more costefficient homes in the long run, according to the experts of OTP.

“In the absence of the previous drivers of the housing market, no significant change is expected even in 2024, but the segmented market may still see good deals and market expansion opportunities for larger investors.”

From left to right: Dávid Valkó, Balázs Hartlieb, Erika Kasziba, Eszter Vései.

HCEMM: an Institute on Medicine’s Most Important Frontier

and is implicated in several health conditions, from autoimmune disorders like psoriasis to Alzheimer’s.

Nine research groups are looking into metabolic disorders, such as obesity and diabetes, which are closely linked to cardiovascular conditions, also in the focus of their study. Cardiovascular diseases such as stroke or heart failure currently dominate the mortality statistics in most of the world and often severely impact the quality of life.

30s. We know them well: problems of the body and the mind mount, and the risk of disease increases. But do we know anything about why this happens?

It was long held that the body simply and inevitably frays with time. Wear and tear, plain and simple; damage mounts, and “errors” accumulate, until, finally, something vital breaks down. But the simplicity of this explanation is deceptive and raises more questions than it answers.

If aging is just the slow grind of entropy, why does it affect people so differently? Why are some more resilient to some of its effects or vulnerable to others? While we are about it, how does this explain the vast differences between species? Humans, on average, can look forward to a little more than 70 years, rats live two years if they are lucky, while bowhead whales may even surpass an astounding 200 years of age.

Rats and whales, being mammals, are not even particularly distant from us in evolutionary terms. So, what is going on? Are bowhead whales made of sturdier stuff so it takes longer for them to fall victim to the ravages of time? Are rats thrown together too haphazardly to last? Not quite.

Increasingly, life expectancy, including that of humans, is understood

as a biological trait, the result of the interplay between genetic and environmental factors, much in the same vein as height or body weight, for instance. It is the product of several different processes, the net result of compromises and tradeoffs during the long evolutionary history of our species. A complex phenomenon involving the genetic code, proteins, the self-regulation inside cells and communication between them. At first glance, this might look even worse; instead of one problem, it presents a multitude. But this paradigm is, in truth, more hopeful: if aging were simply the general erosion of our components, little could be done about the health conditions it brings. However, as a complex phenomenon, it may be studied and understood

WHAT IS HCEMM?

The Hungarian Center of Excellence for Molecular Medicine (HCEMM) is a distributed Institute, whose scientists develop advanced diagnostics and treatment options in support of healthy ageing.

Currently, the HCEMM Program is funded by an H2020 Teaming Grant, where Semmelweis University, the University of Szeged and the Biological Research Centre in Szeged cooperate with their advanced partner EMBL (with headquarters

as a combination of processes, so the many diseases that arise from it may also be understood and even treated.

Major Avenues of Research

In that spirit, research has increasingly been considering a variety of conditions that have been, in the past, clearly separated (various forms of dementia, cardiovascular disease, or cancer) as expressions of the same underlying problem: age-related disease. The mission of HCEMM fits into this paradigm; the institution seeks to tackle age-related disease with 25 groups spread out along four major avenues of research.

Seven groups aim to understand better the immune system and inflammation, the process by which the immune system recognizes and eliminates harmful or foreign stimuli. This involves complex cell-to-cell communication

in Heidelberg). The support of the Hungarian government is also essential for the operation of the HCEMM, primarily through the Thematic Excellence Programme and the National Laboratories Programme. HCEMM works at the interface of academic and industrial research on topics related to Translational Medicine. The goal is to improve the quality of life for an ageing Hungarian population, while at the same time lowering the cost of health care provision through novel applications in the field of Molecular

Seven groups seek to unravel how the genetic code is regulated and repaired and how these processes are involved in cancer, which has already overtaken cardiovascular disease in terms of disease burden (mortality and morbidity combined). While cancer research has achieved significant breakthroughs in the past, cancer is a many-faceted disease: even a single type may differ greatly between patients in terms of applicable therapies. Advanced diagnostic tools are required to profile the specific instance of the disease and enable optimal treatment.

Finally, in response to the COVID-19 pandemic highlighting the well-known link between age and vulnerability to infectious disease, two research groups were established explicitly with contagious diseases in mind. One is developing early diagnostic tools for infection, while the other seeks to prevent bacterial pathogens from becoming resistant to antibiotic treatments.

Beyond developing new therapies, research groups work on new diagnostic approaches. As opposed to the oftcited 10-15 years a new drug needs to get to patients from being identified as a candidate, new diagnostics often reach people in half that time. As early identification lets doctors use existing treatments much more effectively, diagnostics is the fastest way to deliver life-improving medical technology to the population.

All of us have some experience with aging; at the very least, we have all seen it happen to others. For more than three billion people, it is a little more personal: the first unwelcome effects of age often appear in our

Medicine. The coordination of the various activities is managed by HCEMM Nonprofit Kft., with headquarters in Szeged, Hungary.

Photot by Ground Picture / Shutterstock.com

Hungarian Economy Faces Challenges as Real Interest Rates may Remain High, Equilor Warns

The latest analysis by Equilor Investment suggests Hungary’s growth could start to slow from 2024 and may not reach the level of last year until after 2025. High inflation and interest rates have discouraged investment and consumption, while the delayed disbursement of EU funds is causing more trouble for the Hungarian economy.

Equilor expects that global real interest rates will not return to the very low levels of the 2010s, which will also limit the flexibility of the National Bank of Hungary. Hungarian inflation could drop to 6% next year from this year’s peak of 18%, while after this year’s contraction, it could rebound to 2.5% growth in 2024, with a slight weakening of the forint exchange rate. Average interest rates, which had been declining for centuries, have been influenced by an aging population, slower productivity growth, a generally weak economic outlook and a shift towards investments that were considered risk-free after 2008, Equilor says.

The investment firm believes that recent changes could mean we will see higher real interest rates for a long time in the coming years compared to the

2010s.

Several factors are driving these changes, the most significant of which is the increasing global demand for investment: deglobalization is leading

to factory construction, defense spending is rising across the board, and the green transition requires enormous cash injections.

In the short term, the U.S. Federal Reserve is expected to end its cycle of interest rate hikes and keep rates above 5% for several quarters, with cuts not expected until the middle of next year. The European Central Bank, meanwhile, is in an even more difficult position; further rate hikes are expected from the ECB this year with the rate cut cycle starting later than in the United States, towards the end of next year.

Zoltán Árokszállási, who took over as senior analyst at Equilor Investment in June, said that the question of what kind of interest rate environment we can expect in the long term is becoming increasingly urgent.

Key Rate

The MNB has started to reduce its ultra-high key interest rate of 18% at a pace of 100 basis points. Another 100 bps could follow this month (the next scheduled rate setters’ meeting is due on Sep. 26) from the current level of 14%, which is still high by regional standards, after which the MNB may slow down.

The pace of decline in inflation could allow for even more significant cuts; however, risk perceptions in Hungary are much more unfavorable than in other countries in the region, as evidenced by the volatile exchange rate of the forint.

Moreover, there is speculation Fitch Ratings Inc. may lower Hungary’s credit rating at its next review in December, which could also send a negative signal to the market.

Based on this, Equilor expects a key interest rate of 10.75%

by the end of this year and 6.5% by the end of 2024. Single-digit inflation is expected to be reached this November, so inflation could average 18% this year, dropping to 6% next.

In this context, Zoltán Árokszállási pointed out that the current drivers of disinflation will become less visible over time: the forint is now weakening, oil prices are rising, fuel excise taxes will increase from January, consumption may pick up somewhat, while the need for fiscal adjustment remains a risk.

High Volatility

According to Equilor’s senior analyst, the forint will likely remain on a slightly depreciating path amid high volatility, with the current outlook for the euro at 400 forints by the end of 2024.

The Hungarian economy is undergoing a significant adjustment: this year’s economic performance exceeded preliminary expectations, with Equilor forecasting a 0.7% contraction in GDP in 2023.

Several factors power the recession, including falling consumption due

to high inflation, subdued public investment, and falling investment sentiment due to high interest rates. This year’s contraction could be followed by growth of 2.5% next year, boosted by a rapid inflow of withheld EU funds, but this is still unlikely, according to Equilor.

Given these developments, the Hungarian budget balance could show a deficit of 4.5% this year and

3.5%

next, while the debt-to-GDP ratio could be 71.5% this year and 69.5% in 2024. On the investment front, a slight correction in equity markets from the highs of recent months would not be surprising, but there are still some regions where it is not yet possible to speak of overvaluation.

According to the analysis, there is still room for “fantasy” in European and regional equity indices and also in the Indian market. Equilor believes the two-to-three-year segment looks most interesting in the Hungarian and U.S. bond markets: overseas rate hikes are coming to an end, while in Hungary, rate cuts are already abundant, making further rises in longer yields less likely.

However, caution is advised in the Hungarian bond market as this segment tends to rise more than longer-dated yields in the event of a “risk-off” wave, when investors attempt to reduce risk by selling existing risky positions and moving money to cash or low/no-risk positions.

Zoltán Árokszállási has led the team of analysts at Equilor Investment since June.

News Company

Bosch Investing HUF 18 bln in Miskolc Base

German-owned Bosch Energy and Body Systems will invest HUF 18 billion at its base in Miskolc (180 km northeast of Budapest), Minister of Foreign Affairs and Trade Péter Szijjártó said on Sep. 11, according to origo.hu. Bosch Energy and Body Systems will spend HUF 4.5 bln to expand its electric drive development and testing activities and HUF 13.5 bln to boost the capacity of several product types, Szijjártó said. He added that the government is supporting the investments, which will create 170 jobs, with HUF 3 bln. Bosch employs around 20,000 people in Hungary.

GKN Inaugurates Felsőzsolca Plant

U.K.-owned automotive industry supplier GKN inaugurated a plant in Felsőzsolca (185 km northeast of Budapest) on Sep. 8, according to autopro.hu. The plant, the first phase of a HUF 52 billion investment, will create 200 jobs, Minister of Foreign Affairs and Trade Péter Szijjártó said at the ceremony. The next stage will wind up by the end of 2026, creating 1,500 jobs, he added. GKN Automotive Hungary ’s base will supply BMW, Mercedes-Benz, Suzuki and Volkswagen. The state is supporting the investment, but the scale won’t be announced until after the European Commission clears it, Szijjártó said.

Audi Investing HUF 1.5 bln in Training Program

German automaker Audi is investing HUF 1.5 billion in a training program for some 500 staff at the Audi Ahead shared competency center to help prepare them for the industry shift to electromobility, Minister of Foreign Affairs and Trade Péter Szijjártó said on Sep. 12, according to origo.hu. The government is supporting the program with HUF 750 million, Szijjártó said.

ADVERTISEMENT

Audi Ahead provides services to members of the Volkswagen group. Szijjártó acknowledged Audi’s “significant contribution” to Hungary’s economic success in recent years. Audi has plowed around HUF 4.5 trillion into its local business and has become one of the country’s biggest exporters, he said. Audi Hungaria, which employs over 12,000 people, produced 1.6 million engines and 171,000 cars at its base in Győr (120 km northwest of Budapest) last year, he added. He said Audi was also doing much to promote an economic shift in Hungary “from the ‘Made in Hungary’ period to the era of ‘Invented in Hungary.’”

Sanofi Inaugurates HUF 8 bln Miskolc Expansion

French pharmaceutical company Sanofi inaugurated a HUF 8 billion expansion at its base in Miskolc (180 km northeast of Budapest) on Sep. 8, according to origo.hu. The government supported the investment, which boosted syringe production by around 50%, with HUF 1.5 bln. Minister of Foreign Affairs and Trade Péter Szijjártó said the new capacity would make the base a leader in producing blood thinner injections in Europe. Exports of Sanofi’s local unit stand over HUF 140 bln, making it the 22nd biggest exporter in the country, he added.

Villeroy & Boch Completes EUR 14 mln Investment Program

German sanitary ware maker Villeroy & Boch has completed a EUR 14 million (HUF 5.37 billion), threeyear investment program at its base in Hódmezővásárhely (175 km southeast of Budapest), the head of the company’s bath and wellness division said yesterday.

Georg Lorz said that Villeroy & Boch spent EUR 6.3 mln on high-pressure casting machines for sanitary ware, EUR 3.8 mln on an automated glazing line, and EUR 1.4 mln on a 1 MW double array of solar panels. Villeroy & Boch,

Baolong Unit Inaugurates HUF 5.1 bln Plant

Pex Automotive Systems Kft., a unit of Chinese automotive industry supplier Baolong, inaugurated a HUF 5.1 billion greenfield investment in a factory at Szigetszentmiklós (20 km south of Budapest) on Sep. 11, according to Magyar Hírlap [Hungarian News].

Baolong’s decision to bring its European base for electromobility strategy to Hungary is “an enormous opportunity,” Minister of Foreign Affairs and Trade Péter Szijjártó said at the ceremony. He noted that the state had supported the investment with a HUF 1.5 bln grant. Competition to attract the

which employs 750 people at the base in Hódmezővásárhely, has faced challenges finding skilled labor locally and has hired some foreigners, he added. Villeroy & Boch’s local unit had revenue of HUF 27.6 bln last year.

Stadler Investing HUF 17 bln in Szolnok

Swiss rolling stock maker Stadler will invest HUF 17 billion at its base in Szolnok (110 km southeast of

plant, which will turn out parts for the electric and smart vehicle industries, was tough, he said, noting that the company also has plants in the United States and Germany, besides China. Szijjártó said the growing number of calls in Western European countries to decouple from the Chinese economy was “unfortunate,” adding that dismantling economic ties between Europe and China, with annual bilateral trade of EUR 875 bln, would be a “blow” for the European economy. “We Hungarians are believers in EastWest cooperation,” he added.

Budapest), Minister of Foreign Affairs and Trade Péter Szijjártó said on-site on Sep. 12, according to origo.hu. The investment will boost the annual capacity of the unit at Szolnok by almost 20% to 750 carriages, Szijjártó said. The state is supporting the project, which will create 170 jobs, with HUF 4.8 bln, he added. Stadler’s headcount in Hungary will rise close to 1,000 as a result. Szijjártó noted the widespread presence of Stadler multiple units on passenger lines in Hungary.

From left, Zoltán Bóna, Fidesz MP for the region, Péter Szijjártó, Minister of Foreign Affairs and Trade, Csang Cu-chüj, CEO of Baolong Group and Ven Csien-feng, CFO and VP, inaugurate the Pex Automotive Systems factory in Szigetszentmiklós. Photo by Szilárd Koszticsák / MTI.

Opening a business doesn’t make you a businessman.

Opening a business doesn’t make you a businessman.

3 Special Report

IT, System Integration

Hungarians Seek Health and Sustainability from AI: Insights from Bosch×Richter Survey

Innovation is with us in our homes, cars, hospitals and most areas of our modern lives. But how do Hungarians view rapid technological development and the role of artificial intelligence in it? These questions were addressed in a joint survey conducted by the Bosch Group in Hungary and Richter Gedeon Nyrt., with the results presented at the “Bosch×Richter Innovators Day” conference.

In an age of rapid technological transformation, Hungarians are not just bystanders. The recent joint survey by Bosch and Richter reveals that 63% view innovations favorably. Contrastingly, a minuscule 2% question the benefits that such advancements bring.

feel the same way. But the influence of artificial intelligence doesn’t stop there. Navigational aids are on the radar for 42% of people, and another 39% know that factories are becoming smarter thanks to AI.

Medical Future

Less well-known is that AI is also shaping the future of healthcare, with just 39% aware of its role in medical device design. It’s even playing a part in drug development and security solutions, though even fewer people (27% and 29%, respectively) are aware of that. And let’s not forget the unsung role of AI in energy regulation, known to only 21%. This might explain why both Bosch and Richter are investing more than you’d expect in these cutting-edge technologies.

Regarding daily life, a whopping 84% of Hungarians are keen on using AI for general searches, perhaps a nod to the recent rise in advanced chatbot technology. The desire to implement AI in the workplace stands at 66%, matched by an equal enthusiasm for its applications in healthcare diagnostics.

People have high hopes for AI to help them solve some of the most

pressing problems of our time. The top priority is to find treatments for diseases that are currently incurable, according to 46%

of the respondents. They also want AI to make medical diagnoses more accurate (42%) and facilitate general cures and healing (41%).

Moreover, they expect AI to contribute to environmental protection (37%), to improve human work efficiency (34%), and to make traffic safer (31%). All are areas where Richter and Bosch are actively innovating and using AI to address societal challenges.

However, Hungarians are not yet fully convinced about the future use of AI. More than half of them (54%) are uncertain about it, while only 27% are confident and find it helpful. The absolute skeptics are in the minority, with 19%. Bosch and

Richter say they understand that new technologies can raise concerns and are committed to building trust in AI.

Pharma R&D Giant

Gedeon Richter describes itself as being the largest pharmaceutical R&D base in Central Europe, with a mission to improve health and quality of life through its innovative products. The company focuses on developing therapies for neuropsychiatric disorders with unmet medical needs and finding new solutions for common gynecological conditions.

It also aims to improve access to high-quality and affordable medicines through biotech and generic product development. To achieve these goals, the company uses AI solutions to enhance its R&D and manufacturing processes.

Bosch, in the research and application of AI, focuses on sustainability, mobility, and Industry 4.0. In the past five years, the company says it has filed patent applications for more than

1,000

AI inventions, making it one of Europe’s leaders in the field. Specialists at the company are working on well over 60 specific applications that new AI models offer the company, such as an in-house version of a generative AI platform that grants access to a wide variety of data sources.

As a leader in automotive technologies, Bosch says it is committed to developing intelligent safety solutions for vehicles and transport to help people in their everyday lives and is already addressing user expectations today. It is also tackling the sustainability challenge and is researching promising technologies such as hydrogen electrolysis.

Bosch has developed a code of ethics for artificial intelligence, a guideline governing the use of AI in its products. The firm insists that this ethical approach combines a quest for innovation with a sense of social responsibility.

When asked about the primary roles of these cutting-edge developments, respondents pointed to three major areas: mitigating environmental pollution at 46%, driving efficient energy usage at 42%, and elevating the comfort of day-to-day life at 43%.

Echoing these public sentiments, both Bosch and Richter believe that tackling climate change sits at the apex of today’s global challenges, reinforcing the public’s rightful demand for corporatedriven technical solutions.

When considering AI’s role in modern life, you might first think of search engines or self-driving cars. It turns out that 48% of Hungarians

Innovators Day a Significant Business Cooperation

This was the first time two of Hungary’s leading R&D companies have organized a joint “Innovators Day” conference, which came with the subtitle, “Sitting at the Table with Artificial Intelligence.”

“Climate change, limited resources, and changing mobility patterns are all complex problems that require comprehensive, innovative solutions. In line with people’s expectations, we at Bosch work every day to make the world a better, more sustainable and safer place through our innovative technologies, including artificial intelligence,” said István Szászi, representative of the Bosch Group in Hungary and the Adriatic region. “To do this, we need partners with whom we

share values and goals because we firmly believe that together we can achieve more,” he added. It was a view shared by his opposite number.

“Gedeon Richter’s development over more than 120 years shows that cooperation with partners leads to the most powerful innovations and the greatest scientific and economic success. The founder of our company was also active in partnering with other companies, and this attitude continues to characterize the company today,” said Gábor Orbán, CEO of Richter Gedeon Nyrt.

“Without a great partner, our original antipsychotic molecule wouldn’t have become the 34th best-selling drug in the U.S. market. We believe that initiating a public

discussion about current innovation trends that will shape our future is more effective when we join forces with other companies, so we are pleased that Bosch and Richter have become partners in this endeavor,” he added.

The study, “Innovation Culture and Openness of Hungarians to Artificial Intelligence,” was spearheaded by NRC Market Research Ltd. for the two firms. The quantitative research focused on the adult Hungarian population, reaching out to a diverse demographic aged between 18 and 65.

With a sample size of 1,000 individuals, the data gathering leveraged an online questionnaire supplemented by multi-stratified random sampling conducted via the NRC Netpanel, which the market research firm claims to be Hungary’s most extensive research panel.

Gábor Orbán, CEO of Richter Gedeon Nyrt.

István Szászi, representative of the Bosch Group in Hungary and the Adriatic region.

in Brief News IT

4iG H1 Profits Rise to HUF 7.8 bln

Listed ICT company 4iG had a firsthalf after-tax profit of HUF 7.8 billion, improving from a HUF 2.8 bln loss in the base period, supported by its acquisition of a controlling stake in Vodafone Hungary, according to an earnings report published on the website of the Budapest Stock Exchange. 4iG closed the purchase of a 51% stake in Vodafone Hungary on Jan. 31. It raised its stake in the telco to 70.5% through a share swap on March 20. The report shows net sales revenue climbed 119% to HUF 266.2 bln. EBITDA jumped 190% to HUF 95.3 bln. 4iG noted that Vodafone Hungary contributed HUF 42.5 bln to grouplevel EBITDA despite booking a HUF 51 bln standalone loss due mainly to interest payments on an intercompany loan from the UK’s Vodafone group that was dissolved after the sale of the Hungarian business was closed. 4iG said its telecommunications activities

generated 87% of net sales revenue, and the IT business accounted for 13%. Geographically, 86% of net sales were generated in Hungary, 10% in Albania and 4% in Montenegro.

Commsignia Receives USD 15 mln Capital Investment

Hungarian startup Commsignia, which develops end-to-end vehicle-toeverything (V2X) solutions, has received a USD 15 million capital investment from domestic and foreign investors, the company said on Sep. 6, according to forbes.hu. The capital investment was led by PortfoLion Capital Partners and Day One Capital, as well as Inventure and Inference Partners. Qualcomm Ventures, Samsung and LG Electronics also participated. The investment will be used to create high value-added jobs at the company as an expansion is needed due to the rapid growth of the vehicle communication market. Commsignia has a headcount of 140. Last year, it had a revenue of HUF 1.85 billion.

Orbán Meets Deutsche Telekom CEO

Prime Minister Viktor Orbán met with Deutsche Telekom CEO Timotheus Hoettges at his office in Budapest on Sep. 15, the PM’s press chief Bertalan Havasi said, according to portfolio. hu. The parties affirmed that the digital transformation of Hungary is a common goal and said they would continue to cooperate in the interest of achieving it, Havasi said. They were joined at the meeting by Minister

Óbuda Uni, Széchenyi Funds Establish VC Company

The University of Óbuda and state-owned venture capital fund manager Széchenyi Funds have established a venture capital company to support startups by the school’s students and staff, the founders said in a statement on Sep. 12. Óbuda Uni Venture Capital will start operations this month, focusing on investments in robotics, medical technology, artificial intelligence and cyber security. Széchenyi Funds has set up a HUF 10 billion fund for Óbuda Uni Venture Capital.

Eli-Alps Laser Research Center Completed in Szeged

Officials from the government and academia marked the completion of the Eli-Alps laser research center in Szeged (170 km southeast of Budapest) at an event on Sep. 14, according to the conservative daily Magyar Nemzet [Hungarian Nation]. Minister of Regional Development Tibor Navracsics said the European Unionfunded research center was a way for Hungarians to “show our talent and make a small contribution to the future of Europe.” He also acknowledged the resulting benefits to the region. Minister

of EU Affairs János Bóka said research at Eli-Alps was “unparalleled” in Europe. Minister of Energy Csaba Lantos said research at the center could contribute to developing better ways to manage nuclear waste or to next-generation solar panels. Construction started in 2014 and the first lasers were moved into the facility in 2017. The cost of the project reached about HUF 81 billion. So far, 79 research programs have been undertaken.

Samsung SDI Investing HUF 22.5 bln in Hungarian R&D

South Korea’s Samsung SDI will invest HUF 22.5 billion in a research and development project in Hungary, Minister of Foreign Affairs and Trade Péter Szijjártó announced on Sep. 7, according to origo. hu. The project will boost battery capacity and safety while improving production efficiency, Szijjártó said. The state is supporting the investment, which will create “dozens” of high value-added jobs, with HUF 5.5 bln, he added. The project will be the most significant R&D investment in Hungary to date. Szijjártó noted that bilateral trade between Hungary and South Korea rose 75% in the first half of the year to more than EUR 5 bln. South Korean companies form the fourth-biggest group of investors in Hungary, he added.

Magnetically Shielded Lab set up in Hungary

of Economic Development

Márton Nagy and Magyar Telekom CEO Tibor Rékási. In a separate announcement posted on the bourse’s website on the same day, MTel said it had signed a memorandum of understanding with the government confirming their long-term cooperation for the digital transformation of Hungary. Under the deal, MTel will create gigabit wired Internet connections for an

additional one million households in the next four years and accelerate the development of 5G coverage in the country, according to profitline. hu. The total cost of this will be about HUF 123 billion, Erste Bank analysts calculated. In return, the Hungarian government confirmed its previous promise to abolish the additional telecommunications tax from January 2025 and, from January 2024, to cancel the utility tax payment obligation for telecommunications lines.

A consortium of the Hungarian Research Network Institute of Earth Physics and Space Science and the Wigner Research Center for Physics have opened a magnetically shielded laboratory with HUF 400 million in European Union and state funding in Fertőboz (200 km northwest of Budapest), the two institutes said on Sep. 5, according to state news agency MTI. The István Széchenyi Geophysical Observatory was set up to conduct geophysical measurements, simulate the magnetic conditions in space, test the magnetic purity of space instruments, and develop space research instruments. In addition, the laboratory is open to all scientific and technological developments that require a low-space, magnetically clean environment.

TritonLife Launches

HUF 1 bln Diagnostic Laboratory Network

Hungarian-owned private healthcare provider TritonLife announced on Sep. 14 the launch of a more than HUF 1 billion diagnostic laboratory network, according to portfolio.hu. TritonLife has started operating a 1,200 sqm lab in the capital that can process 10 million tests a year, founder and CEO Péter Haraszti said. More than 20 contracts have been signed with other healthcare providers around the country, with more expected to follow, TritonLabs director Krisztina Latkóczy said. Laboratory specimens will be delivered by TritonLife Logisztika, the healthcare provider’s logistics unit, which will operate daily pickups on three routes in the east, west and south of the country, she added. TritonLife provides in- and out-patient services in 10 cities around the country. It has eight private hospitals, 10 clinics and three diagnostic centers.

Minister of Economic Development Márton Nagy (sitting right) and Tibor Rékasi, CEO of Magyar Telekom (sitting left) sign a declaration of cooperation in the presence of Prime Minister Viktor Orbán and Timotheus Höttges, CEO of Deutsche Telekom (standing left) in the Carmelite Monastery on Sep. 15. Photo by Vivien Cher Benko / Prime Minister’s Press Office / MTI

Lazy Felix Promises an end to Downloading to Upload

Serial entrepreneur András Györfi recently launched the browser extension Lazy Felix, which received its second round of funding from Hiventures earlier this summer. The Budapest Business Journal spoke with Györfi about the origins of his latest project, which caches images for convenient reuse, hurdles he had to overcome, milestones achieved, and goals he hopes to reach in the near future.

The idea for Lazy Felix, named after Györfi’s cat, came from a persistent source of irritation amidst his daily tasks circa 2020. Primarily working as an editor at Hungarian cryptocurrency web portal Kripto Akadémia, Györfi found he constantly had to download images only to re-upload them to be featured in articles.

“It was super annoying that [upon finding] an image, I had to download it and then upload it,” Györfi said. “I never understood why I had to have this intermediate step.”

Györfi related this irritation to a software developer friend, adding that a solution that circumvented the need to download an image only to immediately re-upload it could prove helpful.

“I had the need for a product such as this; I didn’t know how to do it, I didn’t know what would be the correct form for it, but I was sure that a lot of people would be interested,” Györfi said.

His friend, Gergely Gréczi, agreed, suggested that it should be a browser extension and that he could build it. Thus, the pair became co-founders of the new venture, which they spent the next three years developing.

Funding Approval

After roughly six months of planning the project on paper, they started seeking prospective investors. Following two or three rejections, they came to the attention of Hiventures, the VC arm of the Hungarian Investment Bank (MFB). After a six-month application process, the project was approved for an incubation program with an initial investment of HUF 15 million.

“We are looking for startups with innovative products, high growth potential on a global landscape, and most importantly, founders with proven track records and competencies,” says Tamás Tóth, Hiventures’ investment manager for the project. “Lazy Felix ticked those boxes, and we believe they have the potential to achieve significant success with their product.”

The pair proceeded to develop the project for another year before attempting to upload the extension to the Google Chrome web store at the beginning of this year. Within a few days, it was rejected. According to Györfi, the launch had coincided with an effort by Google to purge its extension selection of scams that had proliferated on the platform.

This consequently required reworking the application’s programming framework, which was completed three months and one development team later.

Lazy Felix was successfully uploaded and available for download on the Google Extension web store in March 2023. After the first month, the application had around 100 users,

primarily friends and associates of Györfi and Gréczi. However, the browser extension subsequently came to the attention of the Hungarian economic periodical HVG, which positively appraised it in an article in late April. Within three days of the article’s publication, Györfi said their application had gained 1,000 new users.

This kind of momentum and the positive feedback the developers received contributed to Hiventures’ decision to provide another HUF 20 mln in a second round of funding in July.

“They have made significant progress during the product development and validation phases; thus, our follow-on investment is a strong indication that we continue to have faith in the founders,” Tóth explains.

Mentorship Program

In addition to financial support from Hiventures, the Lazy Felix team was selected by Hungarian startup incubator Design Terminál to participate in a fourmonth-long mentorship program. Györfi spoke appreciatively of a summer retreat he recently returned from, in which the

team was designated dedicated mentors and received consultation in strategic planning. The pair will continue to receive mentorship, including coaching regarding their investor pitch, business plan, and other essential startup skills, until December this year.

According to Györfi, the platform currently has around 2,000 users, with 200-300 images cached daily. He hopes to raise that figure to 1,000 images per day by the end of December and reach a usership of 10,000 by the end of the first quarter of next year. Confident in the potential of his product, Györfi believes it could eventually reach millions of users within the next few years.

In the meantime, upon reaching that 10,000-user threshold, Györfi said he plans to introduce a payment system they have already set up for the platform, although it is currently available to use for free. Once the payment system is introduced, users will still be able to cache five images a day for free, while those paying a monthly subscription of

USD

1.99

can save up to 100 images per day. While Györfi said this payment tier would be their primary focus, corporate and enterprise levels will also be introduced. With a corporate subscription, employees could save up to 100 images per day, which they could share with colleagues. This subscription would also come with an image editor, including features such as image cropping and watermarking. Companies prioritizing privacy could upgrade to an enterprise subscription, including all the aforementioned benefits, but enabling them to host cached images on their own backend servers.

“The point is, we want to eliminate downloads in general. We think that downloading anything in 2023 is ridiculous. People should just [be able to] select what they need.”

Based on user feedback, Györfi outlined several developments they intend to integrate in the near future, such as the capacity to cache videos, PDFs and screenshots. “The point is, we want to eliminate downloads in general,” Györfi declared. “We think that downloading anything in 2023 is ridiculous,” he added. “People should just [be able to] select what they need.”

Lazy Felix is currently available as an extension on browsers Google Chrome, Microsoft Edge, Opera, and, for the crypto-savvy, Brave, with plans for inclusion on Apple Safari by the end of the year.

András Györfi with his cat, Felix, for whom the app is named.

6 Ibm magyaRoRSzágI kFt. www.ibm.com/hu 17,751 A – – – – – ✓ – – ✓ – ✓ ✓ A A –IBM Products Holdings B.V. (100)

Kft.

(100)

B.V., ACCENTURE

Minority

Fekete

Thurzó –

Szabó –Tímea Soós

bőthe Dániel Majubu –

1013 Budapest, Krisztina körút 39. (1) 270-7600 info@4ig.hu

–

gyula péter Rehus –

–árpád

kucska –

bánlaki –

István antal ––

péter

Freed

Rebecca Lee (10)

Individuals (3) Qualysoft Holding Ltd. (97)

14 teCHWave HungaRy zRt. www.techwave.hu 3,829 A ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ – ✓ – ✓ ✓ –Techwave Consulting

16 kÜRt InFoRmáCIóbIztonSágI éS adatmentő zRt. www.kurt.hu 2,255 A – – – ✓ ✓ ✓ A A A A A A A A Individuals

milán Hasznics ––

péter

Fárizs ––

––

József béla kmetty

–endre

nagy, endréné nagy

2040

Budaörs, Puskás Tivadar út 14. (1) 371-8000 kontron@kontron.hu

Budapest, Krisztina körút 39. (80) 820-082 vip@invitech.hu

Budapest, Gyömrői út 99. (1) 666-1600 sales@ dunaelektronika.com

Software Developers

Ranked by net

from

development in 2022

Applications/ IFS Cloud ERP/ EAM/ESM rendszer

DXC Technology Magyarország Kft., Magyar Telekom Nyrt., KITE Zrt., Lambda Systeme Kft., FBTriangle Co.,Ltd.

Kft., Wellis Magyarország Zrt., ANY Biztonsági Nyomda Nyrt., Vajda-Papír Kft., Fémalk Zrt., Inno-Comp Kft.

1117 Budapest, Budafoki út 209. (1) 463-0620 info@itware.hu

–

út 35–37. (1) 872-0000 legal@nng.com

deep. management, Revol Express billing program

Saldo EasyWeb

NR vt-Soft SoftWaRe kft. www.vtsoft.hu A 358 A – –Abacus

BÉR, Abacus TB, Abacus

CAFETERIA, Abacus

Hajózási Zrt., Abroncs Kereskedőház Kft., RSM Hungary Adótanácsadó és Pénzügyi Szolgáltató

1133

Zrt.

TRV Zrt., Martin Metal Product Kft., Helit Kft., Pauker Holding Kft., OTP Bank Nyrt., UniCredit Bank

Zsolt József Koltai (90), Piroska KoltaiBékei (10) –

Zsolt józsef koltai Zsolt József Koltai Diána Wágner

–

–

4 Socialite

Disadvantaged Hungarian Kids Enjoy Billie Eilish at Sziget 2023

Most of us have the luxury of choosing whether we’ll go to the Sziget Festival. This year, none of the bands appealed, so I gave it a miss. Not long after, I read an article on the Telex website about a group of underprivileged children taken to Sziget to see the hugely popular 21-year-old U.S. singer-songwriter Billie Eilish by charity InDaHouse Hungary. I was made painfully aware of how privileged I am.

DAVID HOLZER

InDaHouse, whose sponsors include Forbes, KPMG and UniCreditBank, was founded by social worker Fruzsina Benkö in 2015. Angry at the “spiritual holocaust, where social racism destroys the dreams,

self-esteem and abilities of Roma children” in Hungary, Benkö decided to act. She began in the village of Pere, about 215 km northeast of Budapest by road, near the small town of Encs. For those of us who rarely venture outside Budapest, it’s hard to imagine what life is like in deeply poor rural Hungary.

In Encs, where the children cared for by InDaHouse live, 62.5%

of the students are highly disadvantaged compared to 0.6% in Budapest. Kids learn in classes where the highly disadvantaged are in the majority, not the exception.

InDaHouse is staffed by volunteers with two goals: to “learn and play with the children so that they become more

skillful and smarter” and “to encourage and show love to them, to counteract the negative effects of societal racism as much as we can.”

The charity operates from its own center, completed with the assistance of more than 600 volunteers, more than 1,200 private individuals and 20 corporate sponsors, and works with children from birth to the end of their education. InDaHouse prepares the older children “for the situations they may encounter later on in everyday life.” Its program includes online classes. Mentor and health programs are also offered.

Today, InDaHouse Hungary helps more than 250 children, has 20 permanent employees and more than 300 volunteers.

An Idea is Born

According to Péter Szabó, head of the InDaHouse fundraising division, the idea to take a party of kids to see Billie Eilish came about when she was confirmed as one of the headliners of Sziget 2023.

InDaHouse kids love Eilish because “she’s not a typical pop star who only sings about beauty, happiness, love and money,” Szabó tells me.

“She’s always faced her own difficulties in life. In her songs, she writes and sings about her confusion and depression, despite being a very successful artist. This self-identity, and the fact that the children of InDaHouse also feel and experience a lot of negative things, makes her very popular with our kids. They really like and respect her authenticity.

She’s also helped some of the youth to face their own problems, their own difficult feelings and also to articulate them to others,” he adds.

Knowing how much Eilish means to the children, InDaHouse began planning for a group to see her perform as soon as she was confirmed for Sziget. InDaHouse contacted Sziget in March, and the two organizations worked closely together until Eilish performed on August 15.

Arranging the trip for the children wasn’t as simple as it is for the rest of us.

“We had to explain to the children, their parents and volunteers what was going to happen,” Szabó tells me. “They had to know the scale of the event. We had to set clear rules for the day of the festival and be prepared for the unexpected. We not only had scenario ‘A,’ but also ‘B,’ ‘C,’ and ‘D.’”

Sziget also took place at a time when InDaHouse’s resources were stretched as it managed its usual series of summer camps. The organization had to schedule how to deploy its limited number of vehicles so that kids could be taken to Sziget without disrupting the camps.

Covering All Bases

“Our goal was to make sure that the kids taking part had the best possible time on this great adventure but in a way that was as safe as possible,” Szabó explains. “For example, we had different volunteers driving the minivans to and from the festival to make sure that our drivers would be rested for the night.”

Watching Eilish perform in front of tens of thousands of people, the overwhelming response from the children was that there was a girl on stage who was just like them.

“As we were walking out of the festival, one of the children said, ‘At first I thought I was watching a YouTube video, but when I realized it was live, I cried.’ This was my favorite comment on the whole day,” the fundraising head says.

“The other feedback that made us think it was a great project came from a boy who said the whole day was amazing and perfect, and he really enjoyed it. But what he’s most happy and proud about is the fact that he worked hard for this. He made a commitment to read a book and write about it, and he managed to do so,” he adds.

Szabó is sure that the experience of being part of Sziget 2023 will stay with everyone from InDaHouse who went for a long time.

“We wanted to show them that seemingly unattainable goals can be achieved if we put our minds to it. The result was a wonderful day soaking up the colorful and varied program events at the festival, ending with the unforgettable experience of seeing their idol Billie Eilish,” he concludes.

Photos by Bálint Bárdi

Artists Beating Around the Brush: Art, Politics and the Holocaust in 1960s Hungary

Veteran economic journalist Kester Eddy went along to the opening of “Commissioned Memory: Hungarian Exhibitions in Auschwitz, 19601965” at the Galeria Centralis, unsure of what he would find.

I must admit that the invitation to the opening of this exhibition had me somewhat befuddled. En route to the event, I wondered what it was all about Paintings, probably, yes, but of what?

I imagined scenes on canvas similar to the many photographs of vacanteyed, starving inmates in striped clothing and bearing yellow stars, all surrounded by electrified fences, with dogs straining on leashes held by the ubiquitous, brooding SS troops. And, of course, wooden towers, with evervigilant guards ready to spray bullets into any tormented soul who might run to the fence, hoping, in whichever way, to escape this living horror.

and the death camps. (And, in this work, the links are certainly “in your face,” the unknown artist spells it out, literally, with the names of the death camps, just in case you don’t get it.)

But with a swift tour of the rooms and reading the accompanying explanations (in English and Hungarian), things began to fall into place. Subsequently, the opening address by Professor András Kovács of the CEU Jewish Studies Program and a talk with curator Daniel Véri, from the Central European Research Institute for Art History put the whole conundrum in context.

This is not an easy matter because, despite its title and outward appearance, at its very core, this show is not about Auschwitz nor even the Jewish Holocaust in general. But let us start at the beginning, and with the simple, important news: the bulk of the works on show were packed away in 1979 and forgotten. None have ever been exhibited previously in Hungary, their country of origin.

National Experiences

In 1960, 15 years after the Red Army liberated Auschwitz, the Polish Museum at the site offered space in the former barrack blocks for nations to mount exhibits and memorialize their own experiences of the Nazi killing machine.

Hungary. Recently rediscovered, they make up the bulk of the current show.

So far, so straightforward, you might think. Except, as the descriptive texts placed around the exhibition explain, not a single one of the commissioned artists, at least as far as is known, was Jewish or had any experience of the Nazi camps, despite the thousands of Hungarian Holocaust survivors, including talented artists, alive at the time.

Moreover, only one exhibited piece demonstrates but the faintest association with the Holocaust’s principal victims: “A Man with a Yellow Star,” a painting by Endre Szász, is just about worthy of its title, its gaunt, long-nosed figure sporting a barely visible six-pointed star on his chest.

What on earth were these artists up to? Why the prevarication? Why, you might ask, were these artists so diligently, so bizarrely, beating around the brush? The answer to this enigma lies in the historical events and politics of the time, Kovács argued in his address at the exhibition’s opening.

In 1960, Mossad agents kidnapped Adolf Eichmann, a key architect of the Holocaust, and smuggled him to Israel to stand trial for war crimes. It was a global sensation that the Hungarian government could not ignore. Eichmann, after all, had overseen the deportations in Hungary in 1944.

at home while needing to move in step with Moscow’s pro-Arab line on the international stage. At a Central Committee meeting called to discuss the issue, János Kádár, general secretary and de facto communist leader, laid out the party line. Kovács read out parts of Kádár’s address to that meeting.

“It is not good [policy] to make these miserable fascist issues exclusively a Jewish question,” Kádár intoned. “The determining point should be that Eichmann did this to thousands of Hungarian citizens.”

In other words, Kádár, in his Orwellian logic, was saying, “All Hungarians suffered.” And, just in case his listeners hadn’t got the message, he concluded: “It isn’t a Jewish question; it’s a fascist and anti-fascist question: About the Jews, that’s enough.”

With more than 400 executions for anti-state crimes since the 1956 revolution still very fresh in the public memory, and hundreds, possibly thousands of political prisoners still languishing in Hungarian jails, given such political direction, it’s little wonder that those artists commissioned to create the Auschwitz exhibition pieces proceeded with caution.

But apart from a general theme of misery and brutality, most works depicted in “Commissioned Memory” have little of this, at least not overtly. In fact, for the most part, the pieces could commemorate victims of the Soviet Gulag or any of a score of repressive leftor right-wing dictatorships throughout the last century.

Only one piece, “Deportation,” the first in the collection, illustrates clear links to the Nazi Holocaust

Hungary, which deported an estimated 437,000 of its Jewish citizens, and Czechoslovakia were the first to take up the opportunity, although the aforementioned “Deportation” is the only work from the 1960 event in the offering today.

In 1965, the Hungarian authorities had another, much more extensive stab at the job, commissioning works from 10 different artists for another exhibition, which ran for 14 years in Auschwitz. On their return home, these pieces were placed in store at a museum in Szombathely, western

Party Line

But in Budapest, the communist government, kept in power with the backing of Soviet tanks in 1956, was desperate for legitimacy

Indeed, Endre Szász, by even alluding to the Jewish connection in “A Man with a Yellow Star,” may have been putting his career, even his freedom, on the line. As Kovács put it, the communist leadership of the 1960s created a plan, a process, to mold the public memory of the Hungarian Holocaust to somehow deal with the difficulties it raised in society and to give the regime itself legitimacy.

The object of the exhibition today, he said, is “to process the processing of the past.”

That’s a mighty tall order, but this show at least makes a start. My only concern is that, lacking Kovács’ insights and hand-holding, many may be unable to take up the opportunity offered to those at the opening.

“Commissioned Memory: Hungarian Exhibitions in Auschwitz, 1960/1965,” comprises 22 images (a mix of paintings, drawings and etchings), two sculptures, and one object, an urn. It runs from Sep. 14-Dec. 3, 2023, in the Blinken Open Society Archives, Galeria Centralis, Arany János utca 32, 1051 Budapest. Hours: TuesdaySunday: 10 a.m.-6 p.m. (Closed during the Verzió Film Festival, Nov. 23-25.)

Daniel Véri. Photo by vegeldaniel.com

András Kovács. Photo by vegeldaniel.com

“AMan with A Yellow Star” by Endre Szász

Chamber of Commerce Corner

The Netherlands-Hungarian Chamber of Commerce (Dutcham)

How fast can your office adapt to the rapidly changing way of working? What are the major triggers behind future office space trends? Dutcham invites you to an interactive morning session to discuss ways to empower people and places from various angles. • When: Oct. 4 • Where: DVM Design Office, Promenade Gardens, Váci út 80, 1133 Budapest • Cost: members HUF 5,900 (incl. VAT); non-members HUF 9,900 (incl. VAT)

Canadian Chamber of Commerce in Hungary (CCCH)

Don’t miss out; it’s lobster time! The CCCH invites members and non-members to its upcoming iconic Canadian Lobster Dinner. Known as one of Budapest’s signature business community events, attended by some of the most prominent business leaders in Hungary, this will be the 29th time it has been held. This year, CCCH is expecting more than 250 guests. Unlimited drinks, raffle prizes, a silent auction, delicious cocktails, live music and entertainment are guaranteed.

• When: Nov. 10 • Where: Hotel InterContinental Budapest

Italian Chamber of Commerce in Hungary (CCIU)

This month’s Tecnologie Agroalimentari Italiane (Italian Agrifood Technologies) event aims to illustrate the most significant changes in innovations and technologies, subsidized financing and market prospects for Hungarian companies in the food and agricultural sector in 2024. Notable guests include Undersecretary of State for Foreign Economy Katalin Bihari; Secretary of State for the Food Industry and Trade Policy Márton Nobilis; State Secretary for Implementation of Rural Development Zsolt György Papp; CIB Bank Intesa Sanpaolo Group CEO Pál Simák; CIB Bank Intesa Sanpaolo Group deputy CEOs Alberto De Stavola and Balázs Szabo; and Attila Tóth, head of trade finance and EU services at CIB BANK Intesa Sanpaolo Group. The event intends to provide business opportunities involving Italian know-how holders and Hungarian buyers, as well as concrete and practical information to help sector players deal with the Hungarian market. Selected Italian-based companies will have the opportunity to participate in personalized matchmaking sessions, offering individual meetings with Hungarian investors and producers, the chance to learn about the prospects of the Hungarian market, present their activities and solutions, and interact with Hungarian experts in their field.

• When: Sep. 25-26

• Where: Danubius Hotel Helia, Budapest

• Cost: Sep. 25: members EUR 900; non-members EUR 1,100 (includes two nights in hotel). Sep. 25-26: members EUR 1,200; non-members EUR 1,500 (includes three nights in hotel)

Belgian Business Club (Belgabiz)

Belgabiz hosted its first networking event of the fall season in collaboration with Euroatlantic Consulting on Sep. 7 at The fourstar Three Corners Lifestyle Hotel. The presence of the newly appointed Ambassador of Belgium to Hungary, Jeroen Vergeylen, added a touch of diplomatic glamor to the occasion. From

German-Hungarian Chamber of Industry and Commerce (DUIHK):

The DUIHK had a packed house at its Sourcing Day on Sep. 7: Eight buyers from German companies held more than 50 conversations in person and online with 36 potential Hungarian suppliers. The German buyers were concentrating mainly on the procurement of metals. One of the main reasons for this is that the procurement market has changed significantly since 2018; buyers have to stand on several legs to ensure a continuous supply and are, therefore, always looking for new sources. The project covered both the procurement needs for small and large quantities, so there was a wide range of suppliers from the Hungarian side. The main objective was to match supply and demand. This event provided a good platform, as the negotiations resulted from a long process of preliminary discussions and needs assessments. The DUIHK organized the event in cooperation with the German BME, in which the German buyers are represented. The next joint event, the 9th CEE Procurement and Supply Summit, will take place in November in Krakow, Poland.

Swiss-Hungarian Chamber of Commerce (Swisscham):

Switzerland in Pécs: Swiss-Hungarian Business Talks on the circular economy for a sustainable future. Programs include a panel discussion with industry experts and government officials, lunch, networking and a factory visit to Holcim Hungary.

• When: Oct. 4 • Where: Pécs • Cost: Participation is free for members and non-members as well. swisscham.hu/rendezveny/svajci-magyar-uzleti-forumpecs-korforgasos-gazdasag-egy-fenntarthato-jovoert

Communication Club on Crisis Management

Should we prepare for war in peacetime? What are the organizational conditions for successful crisis management? The speaker will be Dániel Gergő Pintér, corporate communication manager, PR & RSE for the BioTechUSA Group. • When: Wednesday, Oct. 11, 9-10:30 a.m.

• Where: MGallery, Hotel Nemzeti Budapest, József körút 4, 1088 Budapest. • Cost: members HUF 8,500 + VAT; non-members HUF 12,750 + VAT.

Euroatlantic Consulting, Áron Fellegi (chairman of the board), Ármin Ladányi and Dorina Molnár represented the company, which runs offices in Budapest, Brussels, and Washingon, D.C., among other cities. In addition to the enriching discussions, the event was complemented by excellent company and exquisite cuisine. The next Belgabiz event will be on Oct. 5, an exclusive members-only reception at the Residence of the Belgian Ambassador.

Joint Venture Association (JVSz):

For the 12th time, JVSZ is organizing its annual Macro Conference Exclusive to provide business leaders with up-to-date economic forecasts, renowned experts and valuable knowledge sharing. The half-day conference aims to help business leaders plan for the year ahead and prepare for the challenges they may face in the period ahead. The event’s keynote speaker will be Minister of Finance Mihály Varga and the co-chair of the JVSZ (invited, participation to be confirmed).

• When: October 3, 9:00 a.m.-1:00 p.m.

• Where: ELTE University Congress Center (Gömb Aula) • Cost: members HUF 19,900/person, partnerorganisation’ members: HUF 29,900/person, non-members: HUF 39,900/person

• More information: www.jvsz.hu

French-Hungarian Chamber of Commerce and Industry (CCIFH):

Professional Forum on Pharma in the Next Decade

The French-Hungarian Chamber of Commerce and Industry invites guests to join its professional forum, “Perspectives in Hungary for the Pharmaceutical Industry in the Next Decade: According to Which Priorities Will Patient Care Change?” The speaker will be Deputy State Secretary for Professional Healthcare Management Judit Bidló. • When: Monday, Oct. 2, 9-11:30 a.m. • Where: Párisi Udvar Hotel Budapest, Petőfi Sándor utca 2-4, 1052 Budapest. • Cost: HUF 18,900 + VAT

American Chamber of Commerce in Hungary (AmCham)

IX. AmCham-HIPA Business Meets Government Summit AmCham Hungary, in collaboration with the Hungarian Investment Promotion Agency, will organize the 9th Business Meets Government Summit on Oct. 19. The summit has become a leading advocacy forum in Hungary, connecting investors and business leaders with key policymakers. It aggregates the expertise of 150-plus leaders from top investors, the government, think tanks and academia. With the leadership of local and international experts, participants will navigate the ever-evolving business landscape through four main breakout sessions: Business Environment, Energy, Healthcare and Workforce.

• When: Thursday, Oct. 19, from 9 a.m. • Where: Budapest Marriott Hotel, Apáczai Csere János u. 4, 1052 Budapest • Cost: members HUF 59,990 + VAT/person; nonmembers HUF 79,990 + VAT/person.