Budapest Business Journal 3122

VOL. 31. NUMBER 22 | DECEMBER 1 – DECEMBER 14, 2023

HUF 2,100 | EUR 5 | USD 6 | GBP 4

HUNGARY’S PRACTICAL BUSINESS BI-WEEKLY SINCE 1992 | WWW.BUDAPESTBUSINESSJOURNAL.COM

SPECIAL REPORT INSIDE THIS ISSUE

Christmas Shopping

Advent Markets Prompt Big Rise in Tourism The return of the Holiday markets in Hungary are drawing in even more international tourists than last year, with a 15% increase in guest nights spent in domestic accommodation for this year’s November-December period, according to the National Tourism Data Supply Center.  15

Board Game Teaches Company Building Looking for something to encourage your child’s inner “Baby Boss” this Christmas? “Cégépítők,” the first Hungarian-designed, business-building strategy board game hit the stores earlier this fall, produced by MiniCRM, a firm that specializes in customer relationship management.  18

Bringing Invoices to Account

SOCIALITE

2 Decades Elevating Local Poetry Scene As Hungarian poetry and translation initiative Converging Lines celebrates its 20th anniversary, David Holzer spoke to two of the co-founders: David Hill, a former editor of the Budapest Business Journal, and Kálmán Faragó. 21

NEWS

MNB: Monetary Relaxation to Continue at Same Pace

In line with expectations, Hungary’s central bank cut the base rate by 75 basis points at its regular policy meeting on Nov. 21. According to analysts and the bank’s communication, this pace of interest rate cuts may continue for months to come.  3

BUSINESS

18-year-old Számlázz.hu takes the pain out of filling in and filing invoices. In an exclusive interview, managing director Balázs Ángyán reveals how it has maintained its market leadership and tackled new market challenges. 9 BUSINESS

Hungary’s Landmark 1st Drone Conference Takes Off

“Drone Technology Challenges for Data Processing and Data Security,” organized

by Gábor Dénes Egyetem, emphasized the growing relevance of the airborne technology, AI, and data security in today’s world.  10

2|1

News

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

IMPRESSUM 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.

BBJ-PARTNERS

VISIT US ONLINE: WWW.BBJ.HU

THE EDITOR SAYS

IN PRAISE OF TAKING A MOMENT And so, we enter Advent. Okay, technically, that’s not until this Sunday, we publish on Friday, and I am writing these words on Wednesday evening, but you get the point. The Advent and Christmas markets are open.

We will hold our traditional Santa Claus business mixer on Thursday. Mikulás himself will have rushed around Hungary filling shoes with candies by a week from today.

Before we know where we are, Christmas will have come and gone, and the year will have turned.

For no good reason that I can think of, 2023 seems to have absolutely whizzed past. I’m pretty sure we say so most years (I’m pretty sure we say that, too), but it really does feel oddly accelerated. Perhaps it is just me, but judging the rate at which time passes seems to have become harder ever since the pandemic when spending so much more time in the home office made it more challenging to find points and places to which we could pin events. Why that should have carried on into late 2023, I cannot say, but I was listening to an update of a memorable story on the radio the other day and was flabbergasted to hear the event itself dated back to January.

Perhaps it is the pace at which we live our lives since we came out of lockdown. In part, that is the natural result of needing to catch up commercially, but also on memory making. Our BBJ mixers seem to mean

more since we brought them back, and I know plenty of sports fans who say the same about attending live games. I may have mentioned this before, but we at BBJ Towers have been flat out all fall. Our sales team has been working wonders; I am incredibly proud of our group of writers and especially of the production studio. My page designer has been near non-stop.

There is light at the end of the tunnel, and fortunately, it appears not to be an onrushing train. This is the penultimate print issue of the Budapest Business Journal for 2023. We have one more special publication to pull together, one last BBJ, and then we can begin to relax. And it is an appropriate time of the year to do that. Whether you follow the liturgical calendar or not, whether you believe in Baby Jesus or St. Nicholas or not, Advent is to Christmas what Lent is to Easter.

It is a time of preparation. A period of calm and reflection before the child-friendly madness around the Yuletide Tree. I hope to see some of you at our mixer and others between now and the Holidays, but regardless, I do hope you get some time to pause, take a breath, and think back on all this year has brought.

Robin Marshall Editor-in-chief

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

• 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.

• 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

Photo by Zoltán Máthé / MTI

• 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.

Photo by Erzsébet Vizsnyiczai / Fortepan

THEN & NOW In the color photo from state news agency MTI, firefighters use a crane to erect the 24-meterhigh “Christmas Tree of Hungary” in front of the Parliament on Nov. 27, 2023. In the black and white picture from the Fortepan Public Archive, dating from 1978, a crane assists in placing a large Christmas tree atop a Socialist-era panel building in Szombathely (220 km west of Budapest). The signs on the balcony below wish readers “A nice Christmas and a Happy New Year.”

1

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

News

• macroscope

Monetary Relaxation to Continue at Same Pace

In line with expectations, Hungary’s central bank cut the base rate by 75 basis points at its regular policy meeting on Nov. 21. According to analysts and the bank’s communication, this pace of interest rate cuts may continue for months to come.

Investment in the National Economy in Hungary (2002- Q1-Q3 2023) Volume index, the same period of the previous year equals 100

ZSÓFIA CZIFRA

At its latest rate-setting meeting, the Monetary Council of the National Bank of Hungary (MNB) reduced its key interest rate to 11.5%.

Analysts unanimously expected this step, as the central bank has made several clear indications about the pace at which interest rate cuts may continue in recent weeks.

“Improving macroeconomic fundamentals and the international environment support the continuation of interest rate cuts at the rate of 75 basis points in October,” said MNB vice president Barnabás Virág a few days before the interest rate decision.

The MNB started reducing its benchmark interest rate in May, which it had drastically raised

to

18%

last October due to financial stability considerations. Employing a series of 100 basis point cuts, it had relaxed the rate to 13% by October of this year.

At that time, it normalized its tools, restored the guiding nature of the base interest rate, and narrowed the interest corridor, symbolically indicating that the period of emergency interest rate increases was over. At the same time, it switched to a slightly more cautious pace and continued to reduce the base rate by 75 basis points.

The 75-basis-point cuts have worked well for the MNB, as the steady decline in inflation confirmed that there is no need to reduce the rate of easing too firmly, and the forint exchange rate has also remained stable.

Source:

Several Month Forecast

The MNB is now cautiously forecasting the interest rate path a few months in advance. At a recent press conference, Virág said that the base interest rate could be below 10% for the first time since it started heading north in February 2024. This indicates that, if nothing unexpected happens, the benchmark interest rate will be reduced by 75 basis points twice more.

The central bank has created a so-called positive real interest rate rule, which states that the benchmark rate has to be above the latest available inflation rate. Based on the expected inflation path, the 75 basis point pace will be able to fit into this. It is also very likely that the Monetary Council will review the pace only once the Inflation Report is next published, in March 2024.

Based on the central bank’s communication, a similar schedule of

75

basis point

cuts can be expected until February, agrees Amundi’s investment director Péter Kiss.

He also points out that the central bank’s aim with the guidelines could be to cool the expectations of a reduction by a greater extent than at present,

thereby strengthening the monetary policy commitment to positive and rising real interest rates.

“All this also improves the central bank’s credibility, which is necessary if the central bank wants to continue reducing the base rate with a strengthening or at least a stable forint exchange rate,” he concludes.

Thus, according to expectations, the key rate will drop to 10.75% by the end of this year, and it could be at 6% by the end of 2024. “Based on our forecast for the inflation path, we can see a continuously positive real interest rate next year, but its rate will gradually decrease from 4% at the beginning of the year to around 1% by the end of the year,” Kiss believes.

Cautious Approach

The MNB also presented a cautious approach. As deputy governor Virág said after the rate-setting meeting, “We cannot sit back; we cannot declare victory over inflation.”

With the acceleration of disinflation, the real interest rate has continued to rise, which, according to the central bank, helps to reduce inflation further, a cornerstone of the central bank’s policy. The benchmark rate may drop below 11% by the end of the year and be in single digits in February 2024, according to Virág.

According to Gábor Regős, senior economist at the Makronóm Institute, the central bank’s presentation sends a mixed message: on the one hand, it states that disinflation must continue, as the inflation target is still far away; on the other hand, it claims that a cautious approach is needed, which indicates strictness.

In the presentation, the MNB stated that the base interest rate will fall

below

10%

in February 2024, which means strong relaxation is expected at the beginning of the year: the monthly rate, assuming a uniform relaxation, could be 50 or 75 basis points, Regős predicts.

According to the economist, this is a less strict tone, which means a definite relaxation. As a guideline, the maintenance of a positive real interest rate was also stated, and based on this, it is expected that the rate of the base interest rate will follow the development of inflation, especially if there are no unexpected events.

According to Regős, this rather strengthens the strict policy.

However, it is not a unique approach: the European Central Bank and the U.S. Federal Reserve both seek to maintain positive real interest rates.

4|1

News

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

NATO Pressure Mounts as Hungary Ukraine Takes Pulse on EU Actions Crisis Roundup Jens Stoltenberg, Secretary-General of the North Atlantic Treaty Organization, urged both Hungary and Turkey to promptly follow through with officially approving Sweden’s bid to join the Western military alliance in an interview with Index.hu on Nov. 28. Hungary and Turkey remain the only holdouts within NATO preventing Sweden’s accession, a process requiring unanimity.

NICHOLAS PONGRATZ

ADVERTISEMENT

Lieutenant General Nicola Zanelli, Deputy Commander of NATO Allied Land Command (at center, in beret), meets Hungarian and Italian soldiers of the NATO Forward Land Force Battlegroup (FLF BG) at a joint firing exercise in Hajdúhadháza, 230 km east of Budapest. In the meantime, Hungary has still not ratified Sweden’s NATO accession. Photo by László Gardener/ HM Zrínyi Nonprofit Ltd. / honvedelem.hu / MTI Although they had given their nominal approval earlier in the summer, the ratification proposals have since lingered in the two countries’ respective legislatures.

“All NATO allies support Sweden’s accession to NATO, and Sweden has fulfilled all its commitments,” Stoltenberg said. “I expect Turkey and Hungary to ratify the accession without further delay.”

In the interview, the SecretaryGeneral had praised Turkish President Recep Tayyip Erdoğan, who will pay an official visit to Budapest next month, for introducing the accession protocol to the Turkish Grand National Assembly and said he had spoken about the matter with President Katalin Novák when she had visited Brussels recently, adding that she agreed that “Sweden’s membership would make the whole alliance stronger.”

Stoltenberg pointed out that the Hungarian government had stated several times that it would not be the last ally to ratify Sweden’s accession.

The United States Ambassador to Hungary had previously emphasized this point on Nov. 16.

“I have been repeatedly assured at the senior-most levels of this government that Hungary will not be last to ratify Sweden’s accession to NATO,” Ambassador David Pressman said. “I expect Hungary to fulfill its commitments,” Stoltenberg concluded.

Hungary has also taken on an ever more skeptical perspective in its approach to the European Union’s support of Ukraine. At a meeting of the General Affairs Council in Brussels on Nov. 15, Minister of EU Affairs János Bóka said that Hungary needed “a period of reflection and a strategic discussion on the policy of the European Union towards Ukraine.

Before this strategic discussion, we are not in a position to take the decisions regarding the further steps in the accession process of Ukraine or the review of the multiannual financial framework,” he added.

National Consultation

To this end, the government has issued a new National Consultation survey, seeking the Hungarian population’s opinion about recent initiatives proposed by the European Commission.

In addition to matters such as the phasing out of the regulated utility price scheme for households, the interest rate cap, the windfall profit tax, as well as mandatory migrant relocation, and EU funding for Palestinian organizations, the survey also seeks to gauge support for the EU continuing financial aid for Ukraine, and that country’s prospective membership in the union.

Meanwhile, a recent analysis of Hungarian media by doctoral students at Johns Hopkins University revealed that narratives surrounding Ukraine largely matched those of Russian propaganda publications.

After using AI to analyze thousands of articles published by Hungarian media, the researchers found that between the fall of 2021 and the spring of 2022, the number of articles covering arms deliveries, EU sanctions, and ethnic minorities increased rapidly.

Additionally, they appeared to consistently follow the same narrative patterns: that arms supplies prolong wars, European Union sanctions are damaging to the Hungarian economy, and that Ukraine mistreats ethnic minorities, which the researchers claim shifted national sentiment to support Russian objectives from mid-September 2021.

“We can only speculate about the motivation of the Hungarian media to increasingly regurgitate Russian propaganda from that point on,” Martin Wendiggensen, one of the researchers, said when presenting the results of the investigation at a recent LabsCon security conference.

1

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

Industrial Developers Delivering Sustainability-accredited Warehouses The international freight and logistics service provider Transdanubia has signed a 24,000 sqm lease in the PT3 hall of HelloParks Páty. The new tenant is expected to take over the building by the end of 2024. The space will include classic high-rack storage elements, block storage and office functions.

GARY J. MORRELL

“The implementation will begin soon with the latest and most advanced warehouse technology solutions, meeting the strictest Breeam standards,” said István Pozderka, business development director of HelloParks, a member of the Futureal Group.

“Energy-efficient operation is a significant factor in the industrial real estate sector, and HelloParks focuses on achieving carbon-neutral operations as soon as possible. This is supported, among other things, by the company’s proprietary mobile application, which will be available to tenants in PT3,” the developer explains.

“The intelligent building automation and monitoring system in the warehouses will allow remote access to technical data of leased areas, utility consumption monitoring, and heating, ventilation, and lighting setting adjustment. Additionally, the offices in the building can operate with zero primary energy consumption, thanks to the solar panels to be installed on the roof and the heat pump system,” HelloParks continues.

“Even precipitation falling on the roof will be utilized for irrigating the green areas around the building. Smart-ready lamps will be installed in common areas, and electric vehicle chargers will be available in the warehouse parking lot for tenants,” it adds.

According to Rudolf Nemes, CEO of HelloParks, “Since our establishment in 2020, we have been developing our warehouses exclusively to the highest

News | 5

Green Matters A monthly look at environmental issues in Hungar y and the region

The HelloParks Páty logistics and industrial park development. categories of the Breeam sustainability standards. All of our developments under construction are already built to the ‘Outstanding’ certification criteria and EU Taxonomy requirements; HelloParks wants to set a forward-looking green industry benchmark in the country and the region.”

Sector-wide Uptake

Sustainability accreditation is increasingly being utilized in the logistics and industrial sector, with developers and park operators such as Prologis, CTP, Panattoni and HelloParks developing more highly specified Breeam (Building Research Establishment Environmental Assessment Method) or Leed (Leadership in Energy and Environmental Design) accredited complexes.

Panattoni, for example, is looking to add energy-efficient solutions to its products, such as solar panels, electric vehicle charging facilities and heat pump systems. The company aims for Breeam “Excellent” New Construction accreditation as standard for its products in Hungary. New tenant demands are increasingly related to ESG, and many require energy-efficient solutions.

As reported by the Budapest Business Journal in our last issue, Belgian-Hungarian company WLP (Weerts Logistics Parks) and RaktárAD have topped out the 40,000 sqm logistics and production plant for the Canadabased automotive supplier Magna.

“As Magna aims to achieve carbon neutrality in its European operations by 2025 and its global operations by 2030, sustainable principles, including the use of solar energy, have been incorporated into the site’s planning. As a result, the new WLP-built facility has received

the “Very Good” rating by Breeam,” said Lerouge Gauthier, vice-president of Magna International.

Academia Office Center Achieves Well Pre-certification

ConvergenCE and Europa Capital have been awarded Well pre-certification for the Academia office center and expect final accreditation in spring 2024.

The redevelopment of the 12,500 sqm office center, located on the Pest bank of the Danube in central District V, was completed this summer.

“Since our establishment in 2020, we have been developing our warehouses exclusively to the highest categories of the Breeam sustainability standards. All of our developments under construction are already built to the ‘Outstanding’ certification criteria and EU Taxonomy requirements.”

Europa Capital purchased what was the Akademia office center in partnership with ConvergenCE as the asset manager and has undertaken an extensive renovation of the historic building, bringing the complex to the standard required for Breeam, Well, Access4You and WiredScore, the latter being international accreditation system for technology.

“We pay great attention to ensuring that all our properties have the highest environmental ratings. Obtaining certification is not just a regulatory

compliance, but also a cost-saving, valueadded aspect, a crucial factor in sales and leasing,” said Csaba Zeley, managing director of ConvergenCE, on the project.

“The building is now complete, but a few operations are still ongoing: certifications are in progress, and I am proud to announce that Academia will soon become the first non-new construction Well “Platinum” building in Hungary. Breeam certification is underway, and we are on the verge of obtaining a ‘BB’ energy certificate, a level that even new office buildings in Budapest rarely achieve,” he adds.

Interior Recognition

Meanwhile, Regina Kurucz, an architect and Well building assessor, expects the first interior space to receive Well certification in Budapest soon.

“The chances are good for the Well Pre-certified MSD Office Budapest [in Millennium Gardens], but it could also be another private project,” she explains.

“In the last three years, two or three buildings per year have achieved the Well Core Certification in Budapest: Corvin Technology and Science Park and Nordic Light Trio in 2021; Advance Tower 1-2 and BudapestONE in 2022; and Agora Tower and Hub in 2023. I expect this trend to continue as there are seven pre-certified office-building projects in progress.”

“Beginning in 2024, tenants will be looking for office spaces that support their environmental and social sustainability goals. Third-party certifications and ratings are practical and useful means to make evidencebased but quick decisions,” Kurucz says.

“The Access4you certification is also gaining momentum in the Hungarian market. […This] helps not only people with special access needs but also supports property owners and companies to gain insights into their building’s accessibility and reach their business and ESG goals,” she adds.

6|1

News

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

Photos by Bence Bedegúz Boros

Emphasizing Regeneration and Sustainability The design competition run by the local chapter of the FIABCI International Real Estate Federation celebrated a landmark anniversary this November with the 25th annual Hungarian Prix d’Excellence awards.

GARY J. MORRELL

The competing entrants reflect the wide variety of projects ongoing in Hungary and the extent to which the national real estate market has developed over time.

That includes the range of competing developers, from commercial entities to local authorities. But it also embraces the role of architects and consultants in an era when sustainability and environmental issues are intrinsic elements of the design and management of an asset.

It is also reflected in the profile of projects from office to industrial, residential to hotel, and even to societal sectors. Further, in addition to new construction, the emphasis is now very much on refurbishment and redevelopment.

The increasing influence of sustainability in the real estate industry was also reflected in its own FIABCI Sustainability Award category.

“This year, the FIABCI European Presidents’ meeting was held in Budapest on the occasion of the awards ceremony.

László Gönczi, president of the Hungarian Chapter of FIABCI and jury vice-president of the FIABCI Prix d’Excellence Committee, welcomes delegates.

For the foreign professionals visiting our country, we organized a two-day program to showcase the latest real estate developments,” László Gönczi, president of the Hungarian Chapter of FIABCI and jury vice-president of the FIABCI Prix d’Excellence Committee, tells the Budapest Business Journal.

Budiarsa Sastrawinata, FIABCI world president for 2023-2024, reflected on the international importance of the organization.

“FIABCI has the goal of being a platform for networking and enhancing best practice around the world in real estate on different levels.

Spaniard Felice Tufano, president of FIABCI Europe, talks with BBJ real estate editor Gary J. Morrell.

The transformation of the industry in terms of smart solutions and sustainability is a must,” he said.

“This is not a choice, but we have to deliver cities and communities that are based on sustainable principles and the sustainable development goals of the UN and have citizens and people at the center of any project, whether this is a small residential or mixeduse development or for a large urban development with a large community,” Sastrawinata argued.

“FIABCI, as a global organization at the local, regional and international level, has a lot to do, also having a special consultative role at the UN,” he added.

At a roundtable discussion with Hungarian and foreign FIABCI guests and members moderated by Ottó Feuertag, founder and owner of Europa Design, Gabriella Sasvári, development director of Horizon Development, presented the Eiffel Palace and Váci 1 redevelopment projects in the historic center of Budapest.

These emphasize the redevelopment of listed buildings, giving them a modern use-value, while, at the same time, maintaining the historical facade and other classical elements of the structures.

The Eiffel Palace renovation and redevelopment project of a 19th-century building dating back to 1893, undertaken

by Horizon in partnership with the architects and designers DVM group, delivered 14,500 sqm of Leed “Gold” and Breeam “Very Good” space.

This was the first office project in the CEE region to achieve double third-

party sustainability accreditation.

The building has subsequently been purchased by investors twice.

Sasvári emphasized the role of the late Attila Kovács, founder of Horizon Development, in the project.

WINNER OF THE ATTILA KOVÁCS MEMORIAL AWARD The construction of the new building of the “Mocorgó” Kindergarten in Kőbánya Candidate: Municipality of District X of Budapest, Kőbánya Investor: Kőbánya Property Management Plc. Designer: KJT Architect Studio Ltd. Constructor: Nimród-BauInvestment and Construction Ltd. Citation A new kindergarten has been built following the demolition of the existing outdated ground-floor education buildings, reducing the built-up area and increasing the green spaces.

The child-friendly nature of the institution is emphasized by the use of cheerful, playful colors and geometric shapes reminiscent of classic shapesorting games, which are a recurring feature of the building’s exterior façade and interior spaces. The classrooms are organized in a transparent system around a bright and spacious inner lobby.

The connection between the individual classrooms and the courtyard is provided by terraces covered with large shades.

The use of natural materials and the closeness to nature were key design considerations. Modern technical solutions (heat pumps, solar panels, etc.) have significantly reduced the energy consumption of the building.

WINNER OF THE SUSTAINABILITY CATEGORY H2Offices, Phase 1, Budapest Candidate and Investor: Skanska Hungary Property Ltd. Designer: Arrow Architects, Studio IN-EX Plc. Constructor: Skanska Construction Hungary Ltd. Citation With the H2Offices building complex, a nature-inspired working environment was created, which benefits human health and productivity while reducing the ecological footprint of the building’s occupants through energy efficiency.

Located on the former site of the Budapest Waterworks, H2Offices offers a green environment in one of the busiest locations in Budapest. With a total of 65,000 sqm of leasable space, the complex consists of three buildings.

The well-being and health of employees are ensured by green areas, maximized natural light, excellent air quality, natural materials, a rooftop running track, and contact-free solutions.

The building has achieved Leed “Platinum” Core & Shell v4 certification, with the highest score yet achieved in the country, and is also targeting Well v2 Core & Shell and Well Health & Safety certifications, as well as Access4You Gold certification.

1

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

FIABCI: Hungarian Prix d’Excellence Attracts Record 50 Entrants This year’s 25th anniversary FIABCI-Hungarian Prix d’Excellence International Real Estate Federation competition attracted a record 50 developments, ending in a prizegiving ceremony and gala dinner at the Museum of Ethnography in Budapest.

The FIABCIInternational Real Estate Federation is present in 60 countries and was established in Hungary in 1992.

GARY J. MORRELL

“The large number of projects entered allowed us to award the best in each of the nine functional categories, as well as in the ‘Heritage’ and ‘Sustainable Quality’ categories, as there were three or more entries in these categories as well,” said László Gönczi, president of the Hungarian Chapter of FIABCI and the jury vice-president of the Prix d’Excellence Committee.

“In the previous period, developments that did not fall into one of these categories were at a disadvantage.

We have recently solved this problem by rewarding the best of these projects.

The quality of the works entered proves that developers in Hungary are doing a high-standard job. In a close competition, the facilities finishing behind the winners are also very high quality. Their creators have constructed great buildings and contributed to the improvement of their towns,” he said.

“In addition to private investments, the entries include priority public investments and developments initiated by local authorities. The success of buildings that represent the careful protection of our architectural heritage is

remarkable. It is encouraging to see more environmentally sustainable buildings being implemented by developers. I hope the award winners will go on to the FIABCI World Prix d’Excellence and that next year, at the FIABCI Congress in Singapore, we will again celebrate some Hungarian successes,” Gönczi added.

25th Hungarian Real Estate Development Award Results

RENOVATION OF THE HUNGARIAN STATE OPERA First place, and winner of the Cultural and Heritage categories, and Best Project Based on Applicants’ Votes Candidate: CÉH Planning, Developing and Consulting Inc., and ZDA-Zoboki Architect Studio Ltd. jointly Investor: 2017-2019 and 2022: Hungarian State Opera. Between 2019 and 2022: Opera Asset Management Ltd. Designer: ZDA-Zoboki Architect Studio Ltd. Constructing consortiums: Historic and functional areas: West Hungária Bau Ltd., Épkar Plc., Laki Plc. Stage systems: Bosch Rexroth Drive and Control Technology Ltd., Stage and Lifting ApparatusTechnology Ltd., Hidromatic Industrial Equipment Design and Electrotechnical Installation Manufacture Ltd. Citation Thanks to the renovation of the Opera House, the modernized building has retained its historical and cultural values, contributing to the liveability of the area and the well-being of the residents. The updated building fits the urban development concept, which includes barrier-free access to the Opera House through accessible public transport services. The partial accessibility of the historic building has been given special attention during the design and construction phase.

The spaces are equipped with technical facilities and installations satisfying modern requirements. The innovative technical solutions include energysaving systems, intelligent lighting, state-of-the-art stage technology systems, and energy efficiency.

The cultural and economic impacts of the refurbishment include the possibility of staging even largerscale performances and events, making the Opera House more attractive to art

lovers and tourists. The modernized Opera House can now host high-quality cultural and artistic events.

TRANSFORMATION OF THE SOUTHERN KLOTILD PALACE: MATILD PALACE, A LUXURY COLLECTION HOTEL Second place and winner of the Hotel category, and third placed in Best Projects Based on the Applicants’ Votes Candidate: Matild Palace, a Luxury Collection Hotel, Budapest Investor: Melis Investment Ltd. Designer: Puhl and Dajka Architects Ltd. Architects in charge: Antal Puhl, Péter Dajka Interior design: MKV Design Lead designer: Maria Vafiadis Constructor: Melden Construction Ltd.

Citation The basic objective of the development was to utilize the five-story neo-baroque building of the Southern Klotild Palace, built in 1900 and listed as a historic monument, as a five-star hotel.

The building itself forms a block, emphasizing its “sculptural” character.

Its location is as important in terms of the urban landscape as its architectural value. Regarding spatial structure, it is divided into two parts, both vertically and horizontally, which are then united by the façade. This division is fully compatible with the public and private space requirements of the hotel function.

The architectural aim was not only to preserve the protected historic spaces, the building’s original circulation system and spatial logic but also to shape the advantage of the new function. The intention was that the main protected spaces, such as the café, the staircases, and the entrance arcade, would not be preserved as a “museum” enclosure but would be brought to life according to their original function so that they become an integral and inseparable part of the hotel building.

MOL CAMPUS, BUDAPEST Third place and winner of the “Office Building” category Investor: MOL Campus Ltd. Architectural Design: Finta &PartnersArchitectural Studio Contractor: Market Építő Ltd. Technical Supervisor: CÉH Inc. Sustainability consultant and qualifier: Óbuda Group Concept design: Foster + Partners

News | 7

Interior design: Kinzo Architekten GmbH Interior design partner: Minusplus Generáltervező Ltd. Landscape Architecture Design: S73 Ltd. Mechanical Engineer: Korus Consult Ltd. Electrical Engineer: VA-IQ Ltd. BMS: Atria Consulting Ltd. Structure Contractor: Moratus Szerkezetépítő Ltd. Mechanical Contractor: Ensi Ltd. Electrical Contractor: Vilati Ltd. Façade Contractor: Scheldebouw B.V. Citation The new headquarters is a symbol of the MOL strategy. It integrates the 28-story tower with the connected podium into a single form to create a unified vertical campus.

The office building has 28 floors, is 120 meters tall, and accommodates 2,500 employees, with a total floor area of approximately 86,000 sqm.

MOL has relocated colleagues from three different districts and nine locations to the new headquarters, whose primary mission is to create a harmonious work environment for employees and, in line with the MOL strategy, to ensure efficient work performance.

The design of the interior spaces was based on the concept of creating a modern and sustainable workplace that supports collaboration.

Green spaces run through the entire building, bringing nature closer to the workplace. The building maximizes the potential of its surroundings, offering not only sustainable solutions but also a new reference point for both Budapest and Hungary. First in the country, it has successfully achieved the Breeam “Excellent” rating and the Leed “Platinum” certification.

Budiarsa Sastrawinata, FIABCI World President 2023-2024, welcomed the quality of projects on display.

“These awards showcase how Hungarian developers skillfully blend vintage and contemporary elements.

Breathing new life into historic structures while looking to the future exemplifies a fusion of tradition and innovation that has visually transformed Hungary. I am thrilled about the projects at the 2024 World Prix d’Excellence Awards in Singapore, and I am hoping to applaud Hungarian achievements there. Congratulations again to all who contributed to this significant journey. Keep pursuing excellence and remarkable achievements, and I shall continue watching Hungary’s extraordinary developments,” he concluded.

8|1

News

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

Dialogue and Partnership Where Profit- and Non-Profit Sectors Meet Bringing together what it calls a “symphony of perspectives,” a recent event by the “good deeds” organization Jóügyes orchestrated “a compelling exchange between major corporations and civil society organizations.”

“The responsibility of big companies is to touch base with reality.”

“The consensus was clear: merely funding initiatives is insufficient; authentic engagement and mutual respect are indispensable,” Hegedűs said. “Small group discussions identified strategies for effective NGO engagement with corporations, acknowledging the complexities and nuances inherent in fostering productive relationships.”

Gabriella Liptay of KPMG (center) and Péter Guzsaly of Skool and Jóügyes (right).

The event featured thought-provoking discussions led by influential figures such as Gabriella Liptay, head of marketing and communications at KPMG, highlighting the evolving dynamics in discussions between corporate entities and non-profit sectors.

Liptay’s powerful statement that “the responsibility of big companies is to touch base with reality” encapsulated the essence of the shifting dialogue, shedding light on the need for corporations to ground their approach in societal realities.

BBJ STAFF

“This groundbreaking gathering, held under the banner of catalyzing societal change, fostered an atmosphere ripe for collaboration and mutual understanding,” Pál Hegedűs, one of the organizers, told the Budapest Business Journal. He is the founder of advertising agency Brandventure and a co-founder of Jóügyes.

News

financial backing as the foundation for meaningful collaboration between the for-profit and non-profit sectors.

Representatives from both realms, alongside consultants, startup pioneers, and communication experts, collectively endorsed the imperative of funding for NGOs while advocating for genuine dialogue and equitable partnerships.

in Brief

EC Approves EUR 900 mln in Advance Payments to Hungary The European Union executive approved EUR 900 million (USD 1 billion) in advance payments to Hungary on Nov. 23 under its hitherto frozen share of recovery funds. The move comes as the bloc seeks to overcome Budapest’s veto of aid to Ukraine, according to international news wire Reuters. The advance payments, which do not require meeting rule-of-law conditions otherwise attached to EU financial aid, come under RePowerEU, part of the post-pandemic EU stimulus meant to support energy transition away from fossil fuels. EU officials said Hungary’s amended recovery plan is worth EUR 10.4 bln over several years.

That is about 5% of Hungary’s 2023 GDP, including EUR 4.6 bln under

RePowerEU: EUR 700 mln in grants and EUR 3.9 bln in loans. EU officials said Hungary would use the RePowerEU money to modernize its electricity sector through smart meters and digitalization of energy companies.

Number of Foreign Workers Nears 100,000 The number of foreign workers working in Hungary may soon reach 100,000, reports portfolio.hu, based on data from the Central Statistical Office (KSH). According to the data, there are currently 95,000 foreigners working in Hungary, and their number is increasing by about 1,000 every month. KSH points out that the increase has occurred among third-country nationals. In 2020, the number of foreigners working in Hungary was 60,000-70,000; by 2022, it already

Show me the Money!

Péter Guzsaly, partnership manager at Skool (an independent Hungarian NGO dedicated to inspiring and empowering young girls and women to take up technology) and another co-founder of Jóügyes, emphasized the significance of prioritizing financial support for NGOs. “Send money first, then comes knowledge transfer,” he said bluntly.

This pragmatic viewpoint underlined the critical need for sustainable

exceeded 80,000. The portal notes that, in addition to Ukraine and Serbia, foreigners from 15 other countries can come to work in Hungary under a simplified procedure.

Anti Violence Against Women Rally Held

by Momentum, NGOs Opposition party Momentum and women’s NGOs held a commemoration in front of the prime minister’s office in Budapest on Nov. 25, marking the international day for the elimination of violence against women, according to telex.hu. Opposition MEP Katalin Cseh asked the government to tighten social distancing rules and launch a campaign to draw attention to this severe problem while noting that, on average, one woman dies per week in Hungary due to a violent crime. Momentum head Ferenc Gelencsér and MPs Anna Orosz and Éva Sebők also spoke at the commemoration, saying they had submitted two proposals to Parliament to protect women. They ask the government to take decisive and effective action

Jóügyes is a pioneering platform of six individual collaborators drawn from various areas of business development, marketing and sales. All are dedicated to bridging the gap between corporate entities and NGOs, fostering meaningful collaborations to drive positive societal impact. It says it is “looking for multinational companies, social enterprises, foundations and entrepreneurs and startups with a similar mentality to join the Good Deeds platform.” You can find out more (in Hungarian) at jougyes.webflow.io

against forms of violence that typically or exclusively affect women. In response to the commemoration, the Government Information Center (KTK) said violence against women is on the rise due to the pro-immigration policies of Brussels and the parties on the left.

Unemployment Rate at 4.1% in October Hungary’s jobless rate stood at 4.1% in October, rising from 3.9% in September and 3.7% 12 months earlier, according to data released by the Central Statistical Office (KSH) on Nov. 24. The rate covers unemployment among people between the ages of 15 and 74. In absolute terms, there were 202,500 unemployed in October, 11,300 more than in September and 21,600 more than 12 months earlier.

The rolling three-month average jobless rate stood at 4.3% in October, climbing from 4.1% in September and 3.6% a year earlier. The monthly jobless rate for the 15- to 64-year-old age group stood at 4.1%, up from 3.9% in September and 3.7% a year earlier.

2

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

Business

Számlázz.hu Lets the Machine Free the Human

As the fintech industry evolves rapidly, the 18-year-old Számlázz.hu (the name translates as Invoice.hu) has established itself as a significant presence in Hungary.

In an exclusive interview, managing director Balázs Ángyán reveals how it has maintained its market leadership, tackled new market challenges, and adapted to the ever-changing world of digital financial services.

GERGELY HERPAI

BBJ: To what do you attribute your company’s success?

Balázs Ángyán: We have an internal saying from one of the founding fathers: “Man is too valuable to do a job that a machine can do.”

Almost everything that drives the people at Számlázz.hu is contained in this single sentence.

We appreciate our customers.

Even if they have never paid and never will pay for using Számlázz. hu. A customer is not someone who makes us money but someone whose life we want to make better.

We do not make our customers work unnecessarily while using the software.

If something can be programmed, we fix it, even if it means a lot of work for us and little savings for an individual customer. But with 700,000 customers, even the smallest simplification saves our customers a lot of time.

Otherwise, our experience is that innovation, while important, is not the most important thing to our customers. Much more important is how we treat and think about them. Maybe that is the secret.

Of course, we cannot forget the obligatory elements, such as easy, fast and reliable software, the stability we offer our customers, and compliance with current legislation at all times. These are essential, but they are not enough.

eNyugta or the instant payment system.

We now want to support our customers in the digitization and automation of activities related to economic events in a broader sense beyond invoicing.

BBJ: What are the advantages of introducing factoring services for your clients, and what feedback has the company received on these?

BÁ: In a more challenging economic environment like the one we are currently experiencing, companies find that maintaining liquidity requires more work, attention and possibly more financial investment than in good years.

A factoring service is a great help for companies to ensure they have access to their invoices as soon as possible after they are issued, either the same day or the next day. What is innovative about the joint service between Számlázz.hu and our factoring partner Flexibill is that it has made this service, which was previously only available to mediumand large-sized companies and required a lot of administration, infinitely easier and accessible to hundreds of thousands of small businesses. We have received excellent feedback and have already invoiced hundreds of millions of forints to our customers despite the short time since the service was launched.

BBJ: How does the new digital debt management service provide specific legal support to clients in case of overdue receivables?

BÁ: The automatic payment reminder service has been available on Számlázz.hu for quite some time. However, the digital debt management service introduced Balázs Ángyán, managing director of Számlázz.hu. this year has taken it to a new level. From the polite reminder, even before the due date, to the legal action, the process is BBJ: What new market needs and we could complete the developments almost entirely automated. Returning challenges has the company identified very quickly, months ahead of the deadline, to the previous question, in a tougher that have contributed to reaching so we “only” had to focus on the marketing economic environment, it is not only more than 700,000 customers? part for a few months. So, there was our own businesses that may struggle to BÁ: It’s clear that the two-step change in no significant change to our previous maintain liquidity but also our partners. legislation in 2018 and 2020 (that is, the development and innovation strategy.

And experience shows that those who obligation to send invoices online) has manage their receivables more consciously been a major driver of customer growth.

BBJ: How did the management of and, if necessary, more vocally get their But we could also talk about services that Visma Group change the operation money sooner. So now, unfortunately, are not so much innovations as market and growth plans of Számlázz.hu? this service is particularly relevant. disruptions: for example, the 40% reduction BÁ: Unlike many large investment in the price of e-invoices compared to the companies, Visma strongly believes KBOSS.hu Kft., the company behind prices at the time; our autokassza [bank local markets are best known by local Számlázz.hu, was founded in 2004. integration] service, which predates the management. That is why, somewhat The following year, initially growing EU regulation by years, our Számla Agent surprisingly for us, the management out of a need for its three IT founders service, which automates invoicing for team that previously ran Számlázz.hu to issue their own invoices to clients online shops and larger companies; or stayed in place when Visma became quickly and easily, Számlázz.hu was our delegated invoicing and self-billing the 100% owner of Számlázz.hu. They launched as an online invoicing services, which are still shocking the trust us, support us and help us when service. According to the company market today. There is no one magic we ask for it, but basically, they let us history, the first invoice was issued bullet, but there are well-thought-out work and accept the strategy proposed on Aug. 11, 2005, at 12:08 p.m. By services that work together to deliver a by the local management. Visma is October 2009, 500 companies were great customer experience. a growth-oriented company, but its registered in its system. Five years growth targets and expectations align later, it was the first on the market BBJ: How have changes in with what we think is achievable, given to provide an easy, simple e-invoicing online billing regulations affected our knowledge of the local market. service for SMEs at an affordable the company’s development price: the first e-invoice issue was and innovation strategy?

BBJ: Are there plans for Szamlazz.hu issued on March 10, 2010, at 9:35 a.m., BÁ: For online software, there should have to expand its range of services and the company started to grow in been no particular technical challenge beyond invoicing? earnest.

In 2018, Visma, the leading in meeting the reporting requirements BÁ: We are reluctant to give any provider of business software and of online invoicing. Moreover, at details at the moment, but we can tell e-commerce IT development in the Számlázz.hu, we did not see the change you that we are closely following the Nordic region, joined the founders as a problem but a great opportunity. legislative changes that are already of Számlázz.hu as an owner.

Once the technical criteria for the partially or fully known in the market, change in legislation were published, whether they are related to eVAT,

10 | 2

Business

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

The Future of UAVs: Insights from Hungary’s 1st Drone Conference The “Drone Technology Challenges for Data Processing and Data Security” conference, organized by Gábor Dénes Egyetem (GDE or Dénes Gábor University), was a landmark event, emphasizing the growing relevance of the airborne technology, AI, and data security in today’s world.

“While they generate digital wealth and enhance population wellbeing and comfort, they also pose significant risks if mismanaged,” she told the conference. In response, GDE initiated a research program to assess and augment the information security immunity of the general populace and SMEs. This initiative involves the deployment of state-of-the-art drones and software and student participation in research activities. The program aims to develop concrete proposals and programs to enhance information security awareness among the population, including innovative technologies, and strengthen workplace security, particularly in SMEs, ultimately contributing to Hungary’s national security.

Dual-language

The inaugural GDE conference was conducted in Hungarian and English to accommodate a wide range of participants from the country and abroad. It covered a comprehensive array of topics, including data and information security, UAV sensor data processing, various applications of drone technology, and the latest Ferenc Dietz, president of GDE. technical advancements.

Discussions also focused on automation in drone control, cloudrevolutionary impact in fields like the university’s role in shaping the future based solutions, image processing aerial photography, meteorology, techniques specific to drones, and of drone tech nationally and globally. and agriculture. These changes “According to our calculations, the new pertinent legal considerations for UAV are increasingly powered by AI, Hungarian drone strategy will contribute systems. A significant portion of the more than ushering in an era where drone event was dedicated to educational usage is set to escalate across all aspects, highlighting the university’s aspects of life. This underscores the role in preparing students for future to Hungary’s GDP and create nearly urgency to address the scientific challenges in the ever-evolving field 14,000 jobs by the decade’s end,” State opportunities and risks presented. of drone technology.

Secretary for Industrial Policy and Budapest-based GDE, renowned The agenda was structured to ensure Technology Gergely Fábián of the in Hungary for its expertise in IT an efficient flow of events. It commenced Ministry of Economic Development, education and innovation, took the with early morning registration, followed GERGELY HERPAI told the conference. significant step of organizing this by an opening ceremony and a series international conference, emphasizing of plenary lectures. The day continued The conference, the first of its kind 7-pillar Strategy the importance of responsible drone with various presentations, interspersed The strategy encompasses seven in the country, was held on Nov. 17 technology use. The event served with lunch and coffee breaks, main pillars, including establishing and served as a forum for Hungarian as a critical platform for presenting and concluded in the late afternoon. a legal framework and validation and international drone ecosystem the latest research in the field while Each presentation, lasting environment for drones, spurring experts to present their latest also shedding light on the essential the growth of the national drone research findings and trends. elements of the upcoming Hungarian minutes, industry and infrastructure, Reflecting on the transformative drone strategy. was designed to offer focused and and setting economic and business changes brought about by drone Integral to the nation’s technological thorough insights into different objectives. It also emphasizes technology in various domains, advancement, this strategy, was facets of drone technology, ensuring the development of transformative the conference highlighted its a focal point of discussions, reflecting that participants could gain projects and the dissemination a broad understanding of the field of knowledge regarding unmanned in a concise format. aerial vehicles (UAVs), coupled with Alongside the university’s president public and professional education. and vice-rector and the state “We are integrating our research secretary, other notable speakers results with companies into included József Berke, chair of our educational programs to the drone technology and image provide practical and up-to-date processing scientific workshop at GDM; knowledge,” emphasized Ferenc university associate professor Gábor Dietz, the president of GDE and Nagy; vice-rector for education and also the chancellor of the Budapest chair of the informatics department Business School. This approach István Vári-Kakas; and Dávid Jakab, aims to impart practical and up-toCEO of Omega Code Hungary Kft. date knowledge, blending the The presentations and findings from university’s research collaborations the conference will be made available with corporate entities directly into on GDE’s website (dge.hu), offering its educational programs. a valuable resource for those keen Highlighting the rapid advancement on exploring the latest advancements of info-communication technologies, in drone technology. This aligns with Veronika Kozma-Bognár, vice-rector the university’s goal to disseminate for science and head of research knowledge and foster an environment at GDE, pointed out the dual nature Veronika Kozma-Bognár, vice-rector for science and head of research at GDE. of these developments. of continual learning and innovation.

HUF 280 billion

15-20

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

PRESENTED CONTENT

2

Business | 11

UniCredit Predictions on Growth, Inflation and EUR/HUF The Budapest Business Journal sat down with Dan Bucsa, chief CEE economist of UniCredit Group, the Hungarian bank’s chief economist, Zsolt Becsey, and head of treasury, Attila Csáky, to discuss their views on the economy and its expected direction next year.

BBJ STAFF

BBJ: How is weak growth in Europe affecting the Hungarian economy?

Do you expect this to pick up in 2024?

Dan Bucsa: One of Europe’s biggest growth drivers has been the precautionary savings accumulated since COVID. Because of government transfers, households and companies could make these savings, but these have been fully spent. Some of this was used to pay debt, so households and companies are in a better position than before COVID. The extra consumption has taken all the extra savings, and now we are back to long-term savings rates in Europe and below that in the U.S., where the rate is very low.

And that means demand for products from our region is likely to go down.

Regarding the supply side, all energyintensive companies across Europe have had to cut back because of higher energy costs. We’re not seeing that production is coming back in many cases. So, European production has decreased, especially in Germany, which is down by almost 20%. This is affecting supply chains and suppliers from Hungary and Central Europe generally.

Going forward, what gives us some optimism is real wage growth. Wages are outpacing inflation now, both in Western Europe and our region, and we should see this spur an increase in demand by the end of this year. The second thing is lower interest rates: we think that lending will come back gradually, probably more in the second half of 2024.

On the domestic side, the biggest drag we’re seeing is from fiscal policy because it has been very lax across Europe. In 2024, the European Commission will return to

From left, Attila Csáky, Zsolt Becsey, and Dan Bucsa. employing the excessive deficit procedure, and we think that most countries in our region will be in the EDP by the end of 2024 because they will not manage to reduce their budget deficits in time.

Overall, we’re seeing the Eurozone growing by less than 1% next year, the U.S. by around 1%, and global trade growing between 1-3%, which for our countries means a natural drag on growth of at least 0.5-1 percentage points. Hungary is one of the most exposed countries to this trend.

BBJ: What Hungarian-specific factors might push inflation here higher next year than elsewhere in Europe?

Zsolt Becsey: I’d like to begin with a little bit of economic theory. Less developed countries tend to have higher inflation than developed ones. They grow faster, which comes with higher inflation. To have higher inflation in a developing country is quite normal; the extent is what we are looking at here.

And the reason why I think Hungary will probably experience higher inflation than the bulk of the region, but certainly higher than in Western Europe, is the budget. Why? For many reasons.

As Dan mentioned, to boost the economy, the budget needs to spend above the Maastricht threshold.

But I think the most important question here is the budget structure: it’s very reliant on indirect taxes on consumption, like VAT and excise duty.

The Hungarian budget is one of the most dependent on these kinds of incomes: if we’d like to see the budget in balance, it needs additional consumption. This will have to come from somewhere,

so it will probably arrive from real wages, or perhaps some kind of transfer will generate additional spending. The bottom line is that whatever happens with consumption, whether it is growing fast or very fast, will be inflationary.

The other reason why I think Hungarian inflation will be higher than elsewhere is that we already have a few elements pre-announced by the government. Most of these will come live from Jan. 1, and these add roughly 1.4 percentage points to inflation.

The most important element is the excise duty increase on vehicle fuels, but also the highway toll increase, and the introduction of the EPR, the Extended Producer Responsibility system. The biggest part lies on the manufacturing sector; manufacturers will need to pay for the packaging that they use. There are only broad estimates on how much that will cost on the national level, but it will certainly add a lot.

We forecast that the budget deficit will be between 4-5%, maybe nearer 5%, of GDP next year. This means additional income will have to come from somewhere, and it could come from taxes, which will add to inflation.

BBJ: Where do you expect the EUR/ HUF rate to move in 2024?

Attila Csáky: We think the currency shouldn’t weaken much in the course of next year, but we are counting on a weaker currency than we see on the screens right now. The forint has been strengthening a lot, but practically, there is still much uncertainty, including about EU funds and, of course, also the relative position of the Hungarian market versus

the global, meaning how persistent the currently elevated rates may prove, and how the central bank can react to that.

We advise clients to hedge their exposure in terms of FX and commodities but to hedge in excess of 50% of what needs to be hedged, not 100%. Currently, the EUR/HUF interest rate differential has come down significantly. Even for importers, hedging forward exposure on the euro is not as expensive as over the last year, when the peak was HUF 60 for one year; now it’s down to HUF 20, and hopefully, it can get even lower.

Of course, exporters have enjoyed the difference between the forint being high yield and the euro lagging. They have been very active and have done a great job hedging their exposures because when the EUR/HUF reached the HUF 430 level, we had some exporters who hedged at HUF 490.

BBJ: Do you expect any big moves in commodity prices over the next 12 months? Can UniCredit clients hedge against these risks?

ACs: We offer the whole range of hedging, including energy, gas, and electricity hedging. Something new, just starting, is HUPX-based hedging. The Hungarian energy sector is pegged to the Hungarian electricity stock exchange index, HUPX, and we can now offer that to clients and hedge even to calendar year 2025. We think this will bring a lot of client interest. We are also active in base metals, mainly aluminum; there are a lot of manufacturing companies, automotive, food and beverages, across the country that use extensive amounts of aluminum.

12 | 2

Business

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

Company

News

UNIVERSITY-COMPANY COOPERATION Miskolc Uni, FGSz Cooperate on Methane Measurement The University of Miskolc (180 km northeast of Budapest) and Hungarian gas transmission system operator FGSz Földgázszállító are cooperating on an HUF 869 million project to develop a way to gauge the methane emissions of gas networks, according to a press release. The three-year project, supported by HUF 518 mln in European Union funding, started in the summer of 2022. Judit Varga, who heads the university’s board of trustees, said the pilot project could become a “Hungaricum” and raise the school’s profile abroad. The University of Miskolc has more than 200 partners in the business sector with whom the school works on projects and submits funding applications,

Zhejiang Shuanghuan Driveline Setting up HUF 39 bln Plant

Photo by Arie n Bucky Photography / Shutterstock.com

Chinese automotive industry company Zhejiang Shuanghuan Driveline will set up a HUF 39 billion electric vehicle parts plant in Jászfényszaru (65 km east of Budapest), Minister of Foreign Affairs and Trade Péter Szijjártó announced on Nov. 17, according to

rector Zita Horváth said. FGSz accounts for under 1% of methane emissions in Hungary, chairmanCEO Szabolcs I Ferencz said.

MSD Pharma Hungary Signs Agreement With Pécs Uni MSD Pharma Hungary, the local unit of U.S.-based drug maker Merck, signed a cooperation agreement with the University of Pécs (195 km southwest of Budapest) on Nov. 23.

The goal of the partnership is to speed up the start of clinical trials, the university said. Szabolcs Barótfi, MSD’s clinical research director in Hungary, said the company was sponsoring 26 clinical trials with 60 patients at the University of Pécs.

Three-quarters of participants are being treated for cancer, he added.

MSD spends around HUF 3 billion on clinical trials in Hungary annually.

origo.hu. The government is supporting the investment, which will create 450 jobs, with HUF 7 bln, Szijjártó said.

Production will start in Q1 2024, he added. Zhejiang Shuanghuan Driveline will become a market leader in Europe in the production of gears and shafts for electric motors, he said. “Here’s another Chinese supplier that will make deliveries to big Western companies, such as Tesla, Volvo and Scania.

It is evident from this how silly and potentially harmful European politicians’ talk of the need for decoupling the Chinese and European economies is,” Szijjártó said. “Cooperating with China isn’t the danger; a lack of cooperation with China is,” he added.

5 Hungarian Firms Highlighted in Deloitte Fast 50 Five Hungarian companies have been included in the Deloitte Technology Fast 50 Central Europe 2023 report, according to autopro.hu. In the “Companies to Watch” category, for fast-growing businesses that are too young to make the “Fast 50” list, which is based on revenue growth in 20192022, the consultancy included software developer Digital Thinkers in sixth place and marketplace operator Pepita Group in 16th place. In the “Impact Stars” category (for businesses that link products or services positively impacting society, commerce, innovativeness, environment or diversity), the digital health platform DokiApp, mobility service provider Parkl Digital Technologies, and cloud-based software solutions provider SnapSoft were acknowledged.

Magyar Posta Raising Letter Delivery Rates Magyar Posta will raise its rates for letter delivery from Jan. 1, the stateowned postal company said in a press release on Nov. 24. The cost for a priority letter up to 50 g will rise from HUF 300 to HUF 310. The charge for non-priority letters up to 50 g will increase from HUF 210 to HUF 230.

Magyar Posta said the increases were under the rate of inflation and that its tariffs were still among the lowest in the region. The Hungarian post office delivers close to 450 million letters a year. About 90% are sent by businesses.

Hankook Tire Investing HUF 210 bln at Rácalmás South Korea’s Hankook Tire will invest HUF 210 billion to add bus and truck tire capacity at its base in Rácalmás (65 km south of Budapest), Minister of Foreign Affairs and Trade Peter Szijjarto announced on Nov. 23, according to origo.hu. The new plant will turn out around 800,000 tires a year, Szijjarto said. The investment will create 450 jobs, he added. Around 3,000 people work for Hankook Tire in Hungary at present. He said the government would announce the scale of state support for the project after the European Commission cleared the funding. South Korean companies form the fourth-biggest group of foreign investors in Hungary.

Spar Builds HUF 3 bln Debrecen Hypermarket Spar Hungary has completed a HUF 3 billion hypermarket in Debrecen (225 km east of Budapest), the retailer said on Nov. 23.

The 2,600 sqm store is the second Interspar hypermarket in Hungary’s second-largest city. There are more than 620 Spar stores in Hungary, including franchise shops.

Yettel 1st to Launch Standalone 5G Yettel has become the first telco in Hungary to launch standalone 5G, offering faster data transfer rates than 5G networks that still rely on 4G infrastructure. Yettel said on Nov. 20 that it had close to 700 standalone 5G towers in service in Hungary. The firm noted that it had started a network upgrade in 2021 at a cost of “tens of billions of forints” that boosted 4G network capacity by a factor of two to three and paved the way for its 5G rollout.

Waberer’s Building 20,000 sqm Debrecen Logistics Base Listed Hungarian hauler Waberer’s has announced plans to build a more than 20,000 sqm logistics base in Debrecen (225 km east of Budapest), according to an announcement posted on the website of the Budapest Stock Exchange.

Waberer’s said its unit KDI Property had signed a pre-purchase agreement for a 57,000 sqm plot in an industrial zone in the city. It added that the final sale and purchase agreement is subject to additional technical and financial conditions. KDI Property plans to finance the purchase of the land and the construction of the base with its own resources, external financing and a grant from the Ministry of Foreign Affairs and Trade. KDI Property has received a non-binding offer for the state funds, which will be available after the government clears it and contractual conditions are fulfilled.

2

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

Embracing the Circular Economy: The Path to Sustainable Growth The Sixth Circular Economy Summit, a landmark event in sustainable business practices, gathered nearly 150 experts and enthusiasts to highlight the circular economy as a versatile tool for addressing climate change and biodiversity loss and improving environmental, social, and governance reporting.

Speaking at the event on Nov. 23, Attila Chikán Jr., president of the Business Council for Sustainable Development in Hungary (BCSDH), emphasized the urgency of the transition to a circular economy.

“Every year, we use 1.75 times more resources than the Earth can replace to sustain our lifestyles, and the supply of ecosystem goods and services cannot keep up with our needs,” he warned.

“Degraded ecosystems exacerbate climate change, undermine food security, and put people and communities at risk.

While real societal needs could be met with 30% less material consumption, our economy continues to consume more material,” Chikán argued.

“In this situation, it is in our common interest to accelerate the transition to a circular economy, as the associated reduction in consumption alone would solve many climate and environmental crises. Immediate action is also needed in this area,” he emphasized.

The Global Material Use Index shows a worrying trend: rather than growing, the share of recycled materials in the global economy has fallen from 9.1% in 2018

to

7.2%

in 2023. This decline, coupled with the projected increase in global material use of up to 84% by 2050, underscores the urgency of reducing consumption.

and acknowledged the challenges ahead, including illegal waste imports and the need for education about the new system.

The Hungarian Green Building Council presented a zero-carbon recommendation for the construction industry, a significant step towards the 2050 climate goal. Gábor Szarvas, president of the HuGBC, highlighted the importance of this initiative.

A significant highlight of the summit was the presentation of the “Tulip Award for Sustainability,” established by the Embassy of the Kingdom of the Netherlands in Hungary. Dutch Ambassador Désirée Bonis emphasized the importance of circular economy practices.

“The circular economy remains an important priority for the Netherlands, as the country aims to be fully circular

by

2050.

In Hungary, the Circular Economy Platform, established through the joint efforts of the BCSDH, the Netherlands Embassy and the Hungarian Ministry of Innovation and Technology, now has 99 member institutions. These prioritize knowledge sharing, collaboration, and immediate action to advance circular economy practices.

Growing Awareness

GERGELY HERPAI

Business | 13

A BCSDH survey shows a growing awareness among Hungarian companies of the importance of transforming production processes, extracting resources from waste, and prioritizing waste management for the future. However, the survey also shows that while changes in consumer behavior are significant, systemic changes are paramount for substantial progress.

“It is in our common interest to accelerate the transition to a circular economy, as the associated reduction in consumption alone would solve many climate and environmental crises. Immediate action is also needed in this area.”

State Secretary for Environment and Circular Economy Anikó Raisz of the Ministry of Energy discussed Hungary’s regulatory environment for the circular economy. Key initiatives include phasing out single-use plastics, implementing an extended producer responsibility system, introducing

To achieve this ambitious goal, we should also build more sustainably, as the construction sector accounts for half of the raw material consumption Attila Chikán Jr. of the BCSDH. in the Netherlands,” she said.

An expert jury of Deputy Secretary of State for Climate Policy Barbara Botos, HuGBC ambassador and former a mandatory deposit system, and president Zsombor Barta, Shell Hungary a concession-based waste collection country chair Andrea Istenesné Solti, system to meet EU and Hungarian Zoltán Krázli, program director of GS1 climate targets.

Hungary Nonprofit Plc., the BCSDH’s An OECD study released earlier Irén Márta and Katinka Zinnemers, this year, with significant input from of the Netherlands-Hungarian BCSDH, provides guidance on how Chamber of Commerce, evaluated to achieve these goals. the submissions and highlighted The summit also featured the diverse and innovative approaches distinguished speakers from a variety to sustainability in Hungary. of sectors. Vincent Gruis, professor of housing management at Delft University of Technology, discussed sustainable construction, a critical area for circular economy integration.

Joost van Dun of ING Bank presented the application of circular economy criteria in sustainable finance.

Camilla Visconti of Circle Economy Consulting highlighted the Corporate Sustainability Reporting Directive toolkit, the first reporting system that requires progress reporting on circular economy practices.

The summit also highlighted the critical role of SMEs in the transition to a circular economy, with the launch of the Opten ESG Index as a tool to support their sustainability journey.

A panel discussion moderated

by Irén Márta, managing director of BCSDH, explored the relationship between the circular economy and ESG compliance. Panelists Dutch Ambassador Désirée Bonis. including Tibor Bodor of ING Bank, Kam Jandu of Budapest Airport, Károly Gábor Nyári of Grundfos, The BCSDH, as one of the key and Richárd Végh of the Budapest founders of the Circular Economy Stock Exchange, discussed the Platform, remains committed to importance of ESG compliance across guiding over 140 member companies sectors and how it can be supported and the wider business community by circular economy principles. towards improved biodiversity Need for Education conservation, ecological restoration A second panel, moderated by Bálint and addressing social inequalities.

Bartha-Horváth of CBRE, focused on the This commitment is at the heart reform of Hungary’s waste management of its Time to Transform 2030 system. Participants highlighted the new initiative, which is closely linked comprehensive system, which aims to to the principles and objectives be 90% operational within three years, of the Circular Economy Platform.

14 | 2

Business

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

PwC Hungary Opens Office in Debrecen Big Four business consultancy PwC Hungary has opened a new office in Debrecen, 230 km east of Budapest. The firm says it will seek to bolster Eastern Hungary’s economic potential and provide the highest quality services to clients in the region through its new base.

BBJ STAFF

Tamás Lőcsei, PwC Hungary’s CEO, officially announced the opening of the office at a ceremony in the city on Nov. 15.

Debrecen is Hungary’s second-largest city after the capital, with a population of just under 200,000, according to the 2022 census. It is the regional center of the Northern Great Plain and the seat of Hajdú-Bihar County and has undergone remarkable development in recent years. BMW is developing its first purpose-built iFactory in the city. Semcorp, which describes itself as the leading global supplier of lithium battery separators, and EV battery maker Catl are also building factories.

Speaking at the PwC opening in Hungary’s second city, Lőcsei said the move would open a new window of opportunity, both for the firm and the country.

“Although we are already working with Debrecen-based companies in several areas, we have now undertaken to strengthen relations with local businesses and higher education and to help new entrants prepare for the realities of a constantly changing business environment. I believe that flexibility and adaptability have been key to the region’s success, and we [will] strive to earn the trust of the local community,” he said.

“We are proud of our achievements and our leadership role in the industry.

PwC is committed to developing

the Hungarian economy and providing the highest quality services to our clients,” Lőcsei said.

He also pointed out that this is not the first office the 1,100-strong consultancy has launched beyond the capital.

Significant Contribution

“To further expand our business and increase our presence outside Budapest, 12 years after the opening of our Győr office, we are now opening a new office in Debrecen, with the full scope of our services available to businesses in the region. We believe in this city.

I’m confident that we will be able to make a significant contribution to the success of Debrecen and the region,” Lőcsei emphasized.

Mayor of Debrecen László Papp, and Zoltán Bács, chancellor of the University of Debrecen, welcomed PwC Hungary to the city on the occasion of it starting operations in the city.

In his speech, the Fidesz party mayor emphasized: “PwC doesn’t just need a city with good potential; they need a city that is economically successful, has a strong corporate background, and offers outstanding higher education.

This is a city whose success can contribute to the success of PwC.”

The mayor highlighted that a local PwC office would not only help Debrecen attract employees and retain young talent.

“Businesses operating in our city and in the region, whether they are SMEs or multinationals, can now have direct access to a world-class professional services firm and make use of all the expertise that PwC has to offer,” Papp said.

“The opening of PwC Hungary’s Debrecen office is a recognition of all the hard work we have done over the past 10 years. Debrecen has achieved high business standards that guarantee the success of our cooperation,” he insisted.

“Debrecen stands for reliability, stability, quality and, of course, opportunity for business. These are the defining characteristics of our city today. And PwC’s decision confirms this,” Papp concluded.

PwC has been in Hungary for more than 30 years, providing assurance, tax and legal, and advisory services to clients. “In addition to these three key areas, we also provide specialized services tailored to our clients’ needs. Now we are bringing our services closer to businesses in Debrecen and Eastern Hungary,” the firm said in a press release.

PRESENTED CONTENT

Autograph Collection Debuts in Hungary With Dorothea Hotel The newest addition to Hungary’s burgeoning luxury hotel scene has opened, the Dorothea Hotel, Budapest, Autograph Collection, part of Marriott Bonvoy’s global portfolio of more than 30 hotel brands.

BBJ STAFF

The District V hotel combines a block of three buildings of different eras and styles. It is named for Maria Dorothea, Archduchess of Württemberg, an influential public figure of the 1800s.

Together with Archduke Joseph Habsburg, the Palantine or governor of Hungary (she was his third wife), she brought significant cultural and economic development to the capital.

Designed by acclaimed Italian architect and designer Piero Lissoni, the Dorothea Hotel is a tribute to history and modernity.

The trinity of buildings that comprise the hotel dates from three distinct periods.

The Weber House (1873) was the former headquarters of the First National Savings Bank of Pest and has neoRenaissance features; the Mahart House, from 1913, is the former Art Nouveau headquarters of the Hungarian River and Shipping Company; and the Münnich

House (1937), a building combining modernist and art deco elements, once served as the headquarters of Futura Ltd. During the development, the historic elements of each building, including a remarkable historic staircase, were preserved and restored in cooperation with local heritage conservationists.

Entering the hotel, guests are greeted by a colonnade with richly decorated ceilings and walls. The reception area in the spacious courtyard holds a spectacular long drop-shaped glass chandelier, and to the right is

the fully restored monumental staircase, hidden behind a blue Zsolnay tiled wall.

The Dorothea’s 216 guest rooms and suites are divided into two distinct design categories, Contemporary and Heritage, each with modern amenities; the latter feature four-poster beds with canopies.

Crown-jewel

The hotel’s crown jewel is the top-floor Presidential Suite, comprising a master bedroom, built-in wardrobe, en-suite bathroom, infrared sauna, living room and dining area with a fully equipped

kitchen. The suite features 270-degree floor-to-ceiling windows and a spacious wrap-around terrace with a jacuzzi, comfortable seating area, and breathtaking views of the city panorama.

The Pavilion Restaurant & Bar is in the heart of the hotel, in an inner courtyard with the atmosphere of a green oasis. The restaurant, run by chef Carmine di Luggo, reimagines the urban dining experience with gourmet dishes based on local ingredients and following a farm-to-table concept.

Each Autograph Collection hotel offers a unique experience specific to the hotel.

In the case of the Dorothea Hotel, this unique feature is based on the theme of herbs, paying homage to Archduke Joseph, a botanical enthusiast. In the Pavilion, guests will find a sprawling wall of herbs and plants used in the cocktails and dishes served in the hotel’s restaurants.

On the ground floor, Anton’s Bar & Deli offers artisan coffees, light bites and freshly baked pastries by day, transforming into a dynamic bar and social space with a bubbly atmosphere and innovative cocktails in the evening. Next year, the hotel will open two more restaurants, both run by three Michelin-starred chef Dani García: BiBo, an Andalusian brasserie on the rooftop with stunning panoramic views of Buda, and Alelí, an authentic Italian osteria on the street front.

Wellness-loving guests can unwind in the 650 sqm spa with a swimming pool, sauna, steam bath and fitness room. Holistic body treatments can be enjoyed in three treatment rooms, including a doubles room.

3

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

Special Report Christmas Shopping

Advent Markets Bring Significant Rise in Seasonal Tourism

Foreign and Hungarian guests alike can find Christmas novelties and experiences at all of Budapest’s annual Advent markets. The Christmas market at Vörösmarty tér (vorosmartyclassicxmas.hu/en) opened on Nov. 17 and will welcome guests

until

The return of the annual Christmas markets in Budapest and around the countryside are drawing in even more international tourists than last year, resulting in a 15% increase in the number of guest nights spent in domestic accommodation for this year’s November-December period, according to the National Tourism Data Supply Center (NTak).

LUCA ALBERT

The annual Advent and Christmas markets in Budapest have once again opened their doors to guests, featuring festive activities, handcrafted gifts and traditional Christmas food. Experiencing the seasonal market atmosphere, redolent with crisp nights filled with the smells of fried food and mulled wine, is evidently as appealing to international tourists as it is to Hungarians.

Seasonal tourism has spiked in comparison to last year, according to data from the NTak, with more than four million guest nights in domestic accommodation registered for the 2023 November-December period, compared to the previous year’s

3.9 bookings. million

According to the latest seasonal data from the NTak, Budapest’s thermal spas and the Advent markets around

Dec. 31.

Similarly, the Advent Basilica fair (adventbazilika.hu/en) at St. Stephen’s operates between Nov. 17 and Jan. 1, while the market at Deák Ferenc tér started later, on Nov. 24, but runs until Jan. 7.

“About half of the visitors of Advent fairs in the capital are foreign tourists, providing an excellent opportunity to promote The market at Vörösmarty tér, pictured here on Nov. 24, Hungarian wine products has been rebranded the Vörösmarty Classic Xmas Christmas. internationally.”

Photo by Geza Kurka_Hungary / Shutterstock.com

the capital, which are hosts to traditional winter activities and Christmas sights, are some of the most influential factors for drawing in foreign guests during the festive season.

Although the majority of the bookings are actually for countryside venues, bookings within the capital have also increased by a quarter compared to the same period in 2022. The majority of pre-bookings for this period came from the Czech Republic, followed

by Spain, Austria and Italy.

Seasonal Experiences

Although most international guests may focus on Advent Basilica or Vörösmarty Classic Xmas, there are many other markets in the capital that offer their own seasonal experiences. The markets, many of which opened their gates in late November, offer a wide array of activities for guests during the holidays, including opportunities for ice skating, mulled wine tasting and browsing handcrafted gifts.

Due to the large number of foreign guests, some business-savvy associations also recognize that advent markets are an excellent opportunity to advertise Hungarian delicacies to a broader international audience.

This year, the Hungarian Wine Agency (MBÜ) will be promoting Hungarian wines at various Christmas markets around Budapest, with menus available at gastronomic units found in St. Stephen’s Square, Vörösmarty Square, and in Városliget.

The MBÜ stand in front of the Basilica will provide daily wine tastings, with

some

20

Hungarian wines available to buy.

Anita Pusztai, marketing director of MBÜ, highlights that “About half of the visitors of Advent fairs in the capital are foreign tourists, providing an excellent opportunity to promote Hungarian wine products internationally.”

New scenic additions have been introduced this year to keep the traditional market atmosphere modern and exciting. Novelties have been unveiled throughout the capital city, two of which can be found at the center of the oldest Christmas market in Budapest at Vörösmarty tér.

Giant Snow Globe

The statue of the iconic Hungarian poet Mihály Vörösmarty, in the center of the square, has always been wrapped up in plastic each winter to offer it protection against the frost. This year, however, it has been enclosed within a transparent snow globe design, while an LED wall has also been built around the figure, acting as an electronic information point where guests can research relevant information and even engage in a community game linked to a displayed QR code.

A colorful, multimedia light installation also awaits guests at Vörösmarty tér, embodying the fairytale characters of Alice in Wonderland.

Operating hours for each venue vary, but most open late in the morning and welcome guests until late in the evening. The markets are also accessible on most public holidays, albeit with reduced hours, and all are free of charge to enter. Beyond Budapest, there are many fairs in countryside cities and towns such as Debrecen, Eger, Pécs, Siófok, Szeged, Székesfehérvár, and Szolnok, amongst others.

Editor’s note: We contacted the Hungarian Tourism Agency to ask it for more detailed information about the economic significance of international visitors over the Christmas period, but it was unable to get back to us before publication.

Advent Basilica, the Christmas market situated in front of St. Stephen’s Basilica, where guests can enjoy light shows, VR experiences and stalls selling arts and crafts by some 120 domestic exhibitors, has been elected for the third time as the Best Christmas Market in Europe

by European Best Destinations. In another poll, online travel agency weloveholidays monitored 15 of the most popular European Christmas markets posted to Instagram, publishing a ranking where the Budapest Advent fairs placed seventh with 12,321 posts overall, highlighting Budapest as a leading tourist attraction this holiday season.

16 | 3

Special Report

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

Black Friday Sales Soar or Black Hawk Down?

Summarizing the Black Friday sales in Hungary, they can probably be described as drowning in dullness. Surveys conducted before had already predicted little to no crazy spending, but the figures were probably even lower than the worst forecasts retailers foresaw. So low, in fact, that they would not even communicate them.

Gfk Purchasing Power Hungary 2023

BALÁZS BARABÁS

The crash in sales is presumably closely related to Hungarian macroeconomic figures impacting the solvency of households, given that in other countries, Black Friday promotions went well.

In the United States, for example, online shopping totaled USD 9.8 billion, a 7.5% increase from 2022. This means the tradition of storming the stores or waiting in line for hours to make a purchase has shifted to more online shopping. In-store purchases still rose year on year, but much less than online, at

barely

1%.

Cyber Monday, ongoing in the United States at the time of writing this article, will probably further add to another successful pre-Christmas sales season for retailers.

This year’s sales data in Hungary was particularly low, which significantly limited opportunities for attractive promotion prices. Low sales meant low revenues, which meant low profits.

Therefore, the price reductions retailers were able to offer during Black Friday were seen as unattractive, generally not more than 30%.

However, EU regulations to protect consumers also limited marketing tricks previously used by retailers. In previous years, retailers often raised prices before

the promotion period to make the cuts seem more appealing. The EU rules now state that the promoted price must be set based on the previous month’s lowest average price.

Black Friday also paved the way for some unexpected marketing campaigns, such as retailers calling on customers not to buy anything on Black Friday and to stay away from unnecessary shopping.

Outdoor clothing and accessories retailer Mountex announced that it was protesting “against the environmentally destructive shopping frenzy and Black Friday” with a campaign to keep its hiking stores closed on Nov. 24.

Enjoy Nature Instead

The result of buying something “a little shinier, a little bigger, a little newer, or simply just another one of the same product” is leading to more garbage polluting the biosphere at such a pace that it is unable to regenerate. By keeping its stores closed on Black Friday, Mountex said it was encouraging its customers to go out and enjoy outdoor programs.

The outdoor clothing store even conducted an online survey about shopping plans and used clothing disposal habits. About 2,500 net users completed the survey, and according to this, relatively few, 28%, buy new clothing every two or three months.

2023 Per Capita Purchasing Power (Selected Countries)

More than half buy second-hand garments, most of them, some 25% because they are cheaper and 20% because they focus on sustainability.

As for the clothes they already own, 65% said they wear most of them regularly, although 20% almost never wear most of the clothes they have.

Regarding Black Friday,

59% said

they would not buy anything on that day, 24% would decide based on the discount rate, and 14% would buy a product they had already selected.

Of those who planned to make purchases on Black Friday, the majority of 56% said they would spend a maximum of HUF 15,000, 14% put the likely range at between HUF 15,000 and HUF 30,000, and 12% more than HUF 100,000. Another critical question was what discount rate customers would find attractive.

The majority would like to see price cuts of 40-50%, 30% wanted cuts of 30-40%, and 21% looked for between 20-30%.

So, what happened during the sales?

At the time of writing, there is very little information. The largest online retailer, eMag, had not announced any sales estimate before its Black Friday event held on Nov. 17, and also no figures afterward.

The only press release was published on the afternoon of that day and contained very scant information: the sales of small home appliances were higher than laptops, and smart devices and tablets sold better than clothing and home products.

Sales Information Dessert

While officially, Black Friday lasted one day at eMag, similarly to previous years, prices for many products remained at the Black Friday level for a week longer but under a differently branded promotion.

This indicates that the Nov. 17 sale did not meet expectations in Hungary, and the company hoped to recoup as much

as possible in the following days. But eMag’s lack of information in Hungary was not isolated; no other major retailer communicated sales figures, including MediaMarkt and Euronics.

In Romania, however, eMag boasted outstanding results and generously communicated these to the media and customers. A short summary of the Black Friday event, held on Nov. 10 across the border, tells the story. Emag estimated total sales on that day of RON 680 million (about HUF 51.6 bln), a target reached at 9 p.m., before finally going on to gross RON 730 mln, around HUF 55.4 bln. In

10 hours,

the company sold 2.2 million products, an amount sold in 16 hours in 2022. On average, Romanians spent RON 1,367, or more than HUF 100,000.

What is behind these dramatic differences? Do Romanians have more money to spend than Hungarians?

According to statistics, definitely not. Economic research institute GfK recently released this year’s report on the purchasing power in Europe.

Of the 42 countries examined, Hungary ranks 29th, with an average per capita purchasing power of EUR 10,834. This puts the country at 39% below the European average of EUR 17,688. Romanians, however, are 56% below the European average and even slipped two places down compared to the previous year, to 33. The average per capita purchasing power this year in Romanian is EUR 7,738, GKI says.

In both countries, the capital cities lead the ranking, Budapest with EUR 14,020 per person and Bucharest with EUR 15,314. Hungarian inflation, however, has been the highest in Europe for more than a year, which seems to have significantly eroded a willingness to spend, even at discounted prices, and perhaps also savings.

3

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

Special Report | 17

AMG Perfume Full of Passion for Him It’s not easy to find an exclusive and exciting Christmas surprise. But this year, we have special gifts for AMG lovers.

If you’re passionate about life and loves the scent of a unique and distinctive men’s fragrances, you won’t be disappointed with Mercedes-Benz’s special AMG Black Thrill EdP fragrance!

Each “Thrill version” is created by master perfumer Fabrice Pellegrin and is based on the core of the AMG universe: feeling of pure freedom. In this luxurious men’s fragrance, the scents of tonka and leather meets the aromas of clove and ripe mandarin. AMG Black Thrill EdP 60ml/100ml.

For more information, contact your Mercedes-Benz dealer! mercedes-benz.hu

Dreamy Moments Drift away on a journey to a magical dreamland with the help of these Sleepy-scented products and soothing Lush spa music, which plays from this wind-up musical tin. The fusion of calming lavender and sweet tonka bean aromas in these six bath, body, and shower products will leave you blissfully tranquil.

Nivea Cellular Luminous 630 2-in-1 Anti-age and Dark Spot Serum

Wind up the lid, and whimsical harmonies inspired by the Lush Spa soundtrack “Woodlark” will play as the snow globe turns, transporting you along a journey into calm. Reuse again and again as a beautiful bedtime essential that will help you find little moments of calm all year round. Dreamland gift Lush HUF 25,190

This serum combines the proven anti-dark-spot reduction efficacy of the patented ingredient Luminous 630® with NIVEA’s expertise in anti-age performance: It reduces 10 years of accumulated age spots with the first visible results in two weeks. It also strengthens, firms and densifies the skin’s structure. It fills even deep wrinkles in seven days for smooth, younger-looking, luminous skin. Its powerful formula is designed to work at the cellular level; the formula enriched with Luminous 630® reduces and lightens even stubborn dark spots and prevents the formation of new ones. Hyaluronic Acid1 plumps the skin with moisture. Collagen Booster increases the cell’s collagen production, helping to re-volumize the skin and fill deep wrinkles.

lush.com/hu/hu/p/dreamland-gift

nivea.hu

Magically Unique Mercedes-Benz Perfume for Her Looking for an inspiration for a lovely and original Christmas gift? Surprise your lady with a beautiful and unique perfume that will bring the perfect touch to the holidays! The original Mercedes-Benz Fanciful Edition EdT is a fruity-floral fragrance with the scent of lemon, green mandarin, rose, freesia, jasmine and amber. Dazzle your partner with a special gift made exclusively for Mercedes-Benz in a limited edition! Mercedes-Benz Women, Fanciful Edition EdT 60 ml.

For more information, contact your Mercedes-Benz dealer! mercedes-benz.hu

Authentic and Confident He moves as a stylish connoisseur through the breathtaking landscapes of the Amalfi Coast. The blue sea, the pleasure of Italy, and the unmistakable feeling of the truly beautiful things in life are always present. With his captivating charm, the Baldessarini man radiates the pure Italian “La Dolce Vita” lifestyle wherever he goes.

The new Baldessarini Uomo men’s fragrance is an exciting composition with masculine notes that are simultaneously fresh and woody. It is the male version of the best-selling Baldessarini Bella for women and has only been available in stores since early October 2023. m-w.de/en/maeurer-wirtzbrands-fragrance-worlds/ baldessarini

Bianco Cristallo The new Christmas Limited Edition by Vagheggi, is a cosmetic line born from passion and research, a synergy of innovation, excellence, and design; the perfect gift for this Christmas.

Its formulation includes an extract from a microorganism found in glaciers that stimulates the Chaperone proteins that regulate the molecules responsible for skin regeneration. The skin appears rejuvenated, with reduced deep wrinkles and a noticeable increase in brightness.

The new Bianco Cristallo Christmas 2023 Limited Edition pays homage to the Dolomites, the mountain range that provides spectacular views of exceptional color and light. vagheggi.hu/en

18 | 3

Special Report

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

Board Game Looks to Teach Successful Company Building Looking for something to encourage your child’s inner “Baby Boss” this Christmas?

The first Hungariandesigned, businessbuilding strategy board game hit the stores earlier this fall. Produced by MiniCRM, a firm that specializes in customer relationship management, “Cégépítők” (“Company Builders”) is aimed at people who want to learn how to run a company in a playful way without putting tangible assets at stake.

BENCE GAÁL

Hungary has always been a country with a tradition of board games that aim to improve the financial education of younger generations. Almost every Hungarian between the ages of 20 and 80 remembers “Gazdálkodj Okosan,” which could roughly be translated as “Be Smart With Your Money.” It was first released in the 1960s to fill the gaping hole left by the banned capitalist boardgame classic “Monopoly” in socialist Hungary.

Then there is “Takarékoskodj!” (“Save Up!”), released towards the end of the Kádár era, a less popular but more advanced game, where players could very quickly learn how important car insurance is and how they could even go on holidays abroad if they save enough money. Still, these games focused more on individual finances than “capitalistic” ideas like company-building.

“Cégépítők” differs from its forebears in that it offers a scenario where each player is responsible for making their own fortune by building a company, shaping its profile, and steering it towards success.

The business strategy game for two to four players has been available in stores since late October.

Thankfully, players are unlikely to flip the table when losing after landing

Csaba Rácz, CEO of MiniCRM on the wrong space after hours of careful strategizing, as in the case of “Monopoly,” as a single game only lasts

between

30

and 90 minutes.

The board game itself was created

by Zoltán Győri, a popular vlogger who was looking for a delicate balance between understandability and complex gameplay. The game space is modular, meaning that it was constructed using multiple elements, with visuals designed by Endre Koliger.

Intuitive Gameplay

“I aimed for an intuitive gameplay, as the primary target audience is not necessarily advanced players, but those who want to play something more serious after the game ‘Gazdálkodj Okosan,’” says the creator.

The key to winning a round is how you can make the best use of the resources

at your disposal and what decisions you come up with in a relatively short timeframe, making the game an enjoyable experience even for those who have considerable business experience.

Naturally, the other players represent your competition.

“Our customer relationship management software and other developments are based on the knowledge of more than

2,000 SME customers.

MiniCRM, based on its feedback, is a strategic tool for building a company that facilitates operations and business decision-making. We wanted to pass this knowledge on to others, which is how the idea of a board game was born,” recalls Csaba Rácz, CEO of MiniCRM. “Board games are experiencing a renaissance, as they teach and combine strategic thinking with fun in a playful way,” he notes. “‘Cégépítők’” is

“I aimed for an intuitive gameplay, as the primary target audience is not necessarily advanced players, but those who want to play something more serious after the game ‘Gazdálkodj Okosan.’” particularly suitable for giving players a taste of what it takes to run and successfully manage a business without real-life stakes. Besides being fun, the board game has the elements that create the business atmosphere and player flow, and the CRM cards that appear as special skills make it even more rewarding,” Rácz explains.

The Company Behind the Game Csaba Rácz sees a clear analogy between the special cards in the board game and real CRM systems, as he says MiniCRM can contribute from the first moment to the conscious, targeted and systematic building of a business in real life.

MiniCRM itself is a business success story, present in the Hungarian and Romanian markets for some 14 years and now employing almost 100 people. Today, it is Hungary’s market-leading CRM system and is already in use at nearly 2,000 Hungarian SMEs. The system offers essential functions for every company, such as efficient

task handling, transparent customer database management and decisionsupport reports.

The company’s domestically-owned Hungarian-language system has been continuously developed for 14 years to better meet the needs of micro-, small- and medium-sized enterprises.

The “Cégépítők” board game has been available at KellerMayer, Regio Játék, Müller drugstores and Játéknet since the end of October. More information about the company is available in English at www.minicrm. io and the game (in Hungarian only) at minicrm.hu/tarsasjatek

3

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

Special Report | 19

Jysk Prepares for Christmas with Pay Rise, Dec. 24 Closure The Hungarian operation of Jysk is preparing for the holidays by closing its stores on Christmas Eve and giving staff an early pay rise, the Danishowned retail chain has announced.

BBJ STAFF

For the sixth year in a row, Jysk will close its stores nationwide for Christmas, a tradition first introduced in 2018. Employees will also see their salaries rise by an average of 20% from today (Dec. 1).

Since January 2022, employees of Jysk Hungary have seen their salaries increase by an average of 45%.

Jysk currently has more than 1,000 employees in 94 stores in Hungary and a logistics center in Ecser. Two more new stores will open in December, while older existing stores are being renovated. It had a turnover of HUF 97 billion in Hungary in the 2022-23 financial year. It has won the Best Workplace award three times in the Aon and Kincentric employee survey and was named Top Employer in January 2023.

The weeks leading up to Christmas are one of the busiest periods in retail.

Jysk’s stores will be open on Dec. 22 and 23, and will open again after the holidays on Dec. 27.

“We work to ensure that our employees plan with us for the long term, and our Nordic corporate culture helps us to do that,” says Ági Nyeste, head of HR for Hungary, Greece and Austria at Jysk.

“We try to respond consciously to employee needs and maintain a workplace atmosphere in which colleagues feel comfortable. That’s why, for the sixth year running, we are closing our stores

on

Dec. 24,

so that our retail colleagues can prepare for Christmas at home and relax at the end of a very busy period,” she says.

“The months of November and December are extra busy for our colleagues in the stores because of Black Friday and the preparations for the holidays,” she adds.

2022 and again that September, salaries were increased by 10%, and in January this year, they went up by a further 5%.

As part of their compensation packages, employees also receive premium health insurance and sports membership contributions, while Jysk subsidizes the monthly commute to work

by

HUF 30

Seasonal table setting. Photo by Jysk

December Pay Rise

Jysk is also helping its staff prepare for December with a pay rise, with the January increase being brought forward by a month.

From Dec. 1, store employees can expect an average pay rise of 20%. In January

Jysk isn’t the only store closing on Christmas Eve. According to hrportal.hu Penny’s management, having examined the interests of its employees and customers, has decided to close all its stores from Dec. 24-26. The retail

per kilometer and says it spends millions of forints annually on team building.

Employees can also participate in a number of vocational training and education courses. For example, the company supports the acquisition of forklift truck drivers’ licences, but mentoring programs and training modules are also available, and those preparing for management positions are supported by the Talent Academy and the Manager Trainee Program. Jysk says it aims to appoint 80% of its managers in-house in the future, so that store employees will have an attractive career path.

chain operates 230 shops and three logistics centers and employs nearly 5,000 employees in Hungary. Lidl is another retail chain that will be closed on Dec. 24 so that employees can prepare for the holiday with their families.

ADVERTISEMENT

Celebrate the Magic of the Season with the Budapest Marriott Hotel!

Let us do the cooking while you celebrate: enjoy taking your time to savor the most delicious holiday turkey and roast duck without any hassle. Our home delivery service is available throughout the entire holiday season, until 1 January 2024.

Scan the QR code for more information:

20 | 3

Special Report

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

Modern Times: You Can’t Tell a Book by its Cover, nor its Bland Title War is awful; this is almost a truism, but that doesn’t make it any less terrible.

As YouTube videos of Ukrainian soldiers struggling to survive the mud and cold in snow-filled trenches on the frontline illustrate, it’s a miserable experience, even without the constant threat of exploding ordinance ripping bodies apart.

KESTER EDDY

And yet, even in war, there are sometimes surprising stories of decency. Take this anecdote, towards the end of Stephen Pogany’s “Modern Times,” related by his mother about the Budapest suburb of Zugló (District XIV) in late 1944, when Red Army forces were fighting their way, street by street, into the city.

“At one point, some German soldiers came down to the cellar and asked for the keys to our apartments so they wouldn’t have to break down the doors. They wanted to shoot at the approaching Soviet troops from the windows that faced onto the street.

After their positions became hopeless, and they were in imminent danger of being encircled, the Germans carefully relocked the doors of the apartments, descending once more to the cellar to return the keys to their owners before making their escape.”

Not that Pogany, a Britsh-Hungarian professor emeritus in the School of Law at the U.K.’s University of Warwick, is any Nazi-sympathizer, far from it. His mother was at the time living undercover, in constant fear of being unmasked as a Hungarian Jew and likely murdered on the spot.

“Modern Times” might be as unimaginative a title as one could imagine, but its contents belie its bland designation. And the fact that the author includes this incident in his book shows a certain even-handedness in his writings. This gives the reader confidence that he is not merely on some ideological crusade, however much the events he describes might excuse such an approach.

glowing embers of anti-Semitism and, using what might today be called “fake fiction,” helped extinguish any memories that some 300,000 Jews, including 25,000 officers, had fought side-by-side with their Gentile comrades-in-arms for Austro-Hungary in WW I.

Hours of Research

Nor is this book primarily about war. Rather, it describes the day-today reality of four generations of two “ordinary” families of Hungarian Jews, Pogany’s progenitors, from the mid-19th century to 1946. Inevitably, however, the events of World War I impinge on earlier chapters and, given the families’ ethnicity, the orchestrated brutalities of the second global conflict dominate the later pages.

Pogany’s fascination with his forebears, however unremarkable they may have been, is perfectly understandable. But why should anyone bother to read nearly 300 pages about Hungarian-Jewish folk who seemingly neither invented nor created anything of note outside their immediate circles?

The answer is simple: Pogany uses his various family members to meander into all manner of Hungarian historical realities, both on the grand, political level and at street-cum-kitchen (and sometimes even bedroom) level.

As befits an academic, Pogany must have spent hundreds of hours researching evidence on the various claims of family members. He peppers his text with a myriad of references and explanations (almost all citing English language sources), which is of great help to those who may wish to delve further into the rabbit warren of Hungarian history.

The author is sometimes a little repetitive; most readers should know by chapter 17 (the final one) that maternal grandfather Miklós was “a disabled war veteran,” though, to be fair, it helps each chapter maintain integrity and reminds more forgetful readers of who’s who among the many characters that feature in the book.

As for accuracy, your reviewer could only question one of the author’s Stephen Pogany assertions with some confidence. Though Budapest developed rapidly after the 1867 Compromise with Austria, it is most More Overlooked unlikely that the city produced “the world’s The former, of course, is what most first electric-driven railway engines.” historical tomes seek to address, certainly (This appears to be a commonly in English language publications; the claimed Hungarikum falsehood, probably latter is more overlooked and more deriving from a distortion of Kálmán difficult to access in anything other Kandó creating the globe’s first threethan a factual, data-driven way. phase asynchronous motors, which But through his family members’ were and are indeed used for rail use. experiences, Pogany helps readers feel However, German engineer Werner von the impacts of the grand, political and Siemens is usually credited with the social changes, including those propelled first working electric locomotive, at least by the hate-filled polemic of anti-Semite outside Hungarian historical texts.) persuaders, at a very personal, individual When presenting the volume for and even intimate level. review, Pogany revealed that he hoped Perhaps this is best illustrated by the life to destroy the stereotype of Jews as of Miklós, Pogany’s maternal grandfather, wealthy bankers and factory owners who, after serving as a dutiful patriot in living in luxury, in total contrast to the the miserably equipped Austro-Hungarian poverty-stricken masses struggling army on the Italian front, came home to put bread on their tables at night. crippled to face a life of unrelenting While there were undoubtedly some economic struggle, despite receiving a rich Jews (and Gentiles) in Hungary small pension on account of his war injuries. before World War II, it is abundantly In November 1944, Miklós was taken clear from his book that the majority away from his temporary home by the of the Mosaic faith struggled as much fascist Nyilas militia, consisting primarily as any Hungarian Christian to better of Hungarian boys aged around 16. He themselves between the wars. was never seen by his family again.

Technical niceties aside, “Modern Times” Pogany’s forebears were involved is a highly readable, masterful insight in or associated with a vast sweep of into Hungarian history in the hundred activities over the years: the military years between the mid-19th and midapart, the reader thus dips into the lives 20th centuries. Your reviewer thoroughly of writers, football managers, innkeepers, recommends it to those seeking to poets and, of course, housewives, the understand the vicissitudes of that era, and latter often doing demeaning menial in particular, how so many in the majority work on the side to survive.

Magyar population were readily persuaded The writer is perhaps at his tantalizing into believing their minority Jewish best in weaving both famous and compatriots were sub-human and should infamous historical characters into be exterminated without mercy. the lives of his key family members.

If it were available in Hungarian, the Thus, in chapter 11, he compares the book would be mandatory reading for all lavish (if fictitious) menu in Zsigmond high-school students in an ideal world.

Móricz’s story “Lunch,” served for the well-to-do in rural Hungary, with the vitamin-starved, protein-less fare Modern Times: The Biography of a his mother grew up on in the 1930s.

Hungarian-Jewish Family, by Stephen “We only ate meat one day a week,” his Pogany, ISBN 978-0-9931896-4-7, mother told him in old age, “On Sundays, 283 pages, is available from Amazon we had Wiener Schnitzel.” and Best Sellers in Budapest.

We also learn how writers Cécile Tormay and Dezső Szabó fanned the

4

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

Socialite

20 Years Raising the Profile of Hungarian Poetry As Hungarian poetry and translation initiative Converging Lines celebrates its 20th anniversary, I spoke to two of the co-founders: David Hill, a former editor of the Budapest Business Journal, and Kálmán Faragó.

DAVID HOLZER

Converging Lines was born out of a 2004 festival collaboration between Budapest literary cabaret The Bardroom, the British Council, British Airways, art’otel, the Hungarian Translators’ House, the British Embassy, and the British Chamber of Commerce in Hungary. It featured performances and workshops by English-language and Hungarian writers brought together to, as the festival’s organizers announced, “see what ideas, affinities and collaborations are sparked off.”

Since then, Converging Lines has raised the profile of Hungarian poetry internationally. Given that, according to the great poet Robert Graves, Hungarians have the same understanding of poetry as the Irish and Welsh (a huge compliment coming from him), being able to read and understand Hungarian poetry in translation is a boon for poetry lovers.

After the initial event, some of the poets’ translations of each other’s work were collected in a booklet also called “Converging Lines.” This grew into the 2010 anthology “New Order,” edited by UK-based Hungarian-born poet and translator George Szirtes.

Reviewing “New Order” for the Stride Books website when it was published, David Hart wrote: “I would guess that you could go into a bookshop, open the book at random, and want to stay with it, keep reading.” As much poetry in any language can be thoroughly baffling at first, Hart’s comment is praise indeed for the poets and translators.

One of the poets involved in the original event was Anna T. Szabó. In 2021, Arc published a selection of her poetry called “Trust” translated by

respected British poet Clare Pollard, who also took part in the original Converging Lines. That had grown out of The Bardroom, a literary cabaret that ran from 2001 to 2013 that featured visiting and local writers reading in English or in Hungarian with English translation.

Light Entertainment

“Converging Lines followed the format of The Bardroom. It featured poetry, song, comedy and storytelling presented in a light entertainment, variety show kind of format specifically engineered to appeal to a wider audience than usually goes to literary events,” recalls David Hill.

For Kálmán Faragó, “The Bardroom was about young poets and poetry lovers united by doing something that was far from obvious at the time and place. There was a sort of churning energy to it all, getting into a project not because of some master plan but because you just happened to know a person from another project.”

According to Faragó, “It was alive, unplanned and exciting. Converging Lines came about in much the same spirit. It was just people doing all sorts of things in every possible combination, and good things came out of it.

Absolutely no agenda there.”

As the concept developed and more partners got involved, elements such as writing and translating workshops were added.

Supplement” and “Modern Poetry in Translation.” Since Converging Lines, he’s translated for Bloomsbury and De Gruyter and for music artists Kistehén, Vilmos Gryllus and Gregory Vajda.

Hungarian poetry continues to fascinate a wider international audience.

Budapest and Hungary constantly inspire poets from other countries.

Independent U.S. literary publisher White Pine Press recently published “They’ll Be Good for Seed,” an anthology of Hungarian poetry in English translations by Gábor G. Gyukics and Michael Castro. The collection includes some of the poets featured in “New Order” but offers a broader range.

“If We’re Talking Budapest” is a 2023 anthology of short fiction in English about the capital city by Hungarian and foreign writers who have lived here and published by “Panel.” This English-language literary magazine, based in Budapest, describes itself as David Hill “the written record of a generation of artists from everywhere that can live anywhere, their literature and lives, “one of my BBJ colleagues responding in the language they speak.” to Converging Lines with a wry smile, saying, ‘I like how you’ve incorporated the business concept into the name “We were a creation of of a poetry festival.’”

The name was also a tribute to First a specific time and place; Lines, an earlier initiative involving we built upon the work some of the visiting British poets. of uncountable poets and With appropriately poetic verve, Faragó adds that Converging Lines “was many centuries. Now it’s a victory of poetry, and of organization. someone else’s turn to It was glorious it was done. It took off the ground and stayed aloft.” build upon ours. Let the

Career Booster

By bringing together writers from Hungary and the English-speaking world to collaborate on readings and workshops, Converging Lines led to new translations and a career boost for some of the writers and translators involved.

“Ottilie Mulzet said in an interview that being included as a translator in ‘New Order’ was one of her ‘first big breaks.’ Now she’s in charge of Hungarian translations at Seagull Books,” Hill tells me.

“For Clare Pollard, Converging Lines was an induction into translation.

She went on to serve a stint as editor of the U.K.-based magazine Kálmán Faragó “Modern Poetry in Translation,” during which she devoted one issue to Hungarian poetry.”

Some who took part were already Converging Lines got its name established translators. Hill had been because “converging” was a term much published in the U.K. newspaper used in finance at the time, related to Hungary joining the EU. Hill remembers “Independent,” the “Times Literary

next generation of young, energetic literature-lovers have the stage like we did.”

Faragó is confident that poets and writers will continue to champion Hungarian literature. “We were a creation of a specific time and place; we built upon the work of uncountable poets and many centuries. Now it’s someone else’s turn to build upon ours. Let the next generation of young, energetic literature-lovers have the stage like we did.”

You can follow Converging Lines and the Bardroom on LinkedIn and Facebook. “If We’re Talking Budapest” and “Panel” magazine are available at www.panel-magazine.com.

22 | 4

Socialite

PRESENTED CONTENT

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

Experiencing Ethnography in Budapest’s Newest Museum freely accessible green roof, have already created the physical conditions for it to become a meeting place.

The attraction of the building with freely walkable areas and two equal entrances has also been confirmed.

This is evidenced by the hundreds of thousands of visitors. The meeting place feature is reinforced through the inclusion of a new co-working area and, as mentioned previously, through the “Méta” educational space and the screening room.

The new building of the Museum of Ethnography in Budapest has bustled with life since its opening, featuring a diverse range of exhibitions and programs.

The Budapest Business Journal interviews Lajos Kemecsi, the director general, about the museum’s accomplishments, triumphs, and future plans.

BENCE GAÁL

BBJ: It’s been one and a half years since the new building of the Museum of Ethnography opened. How has this new environment impacted the work in ethnography and museology?

Lajos Kemecsi: The new buildings have had a significant positive impact in all areas of museological and curatorial work. The world-class collection storage facilities and highly efficient digitization have accelerated research access and ensured modern museum record-keeping standards.

The exhibition spaces, which meet all the professional requirements, are an obvious way of inspiring the various exhibition organizers with the possibilities and technical ADVERTISEMENT

conditions available and with a wide range of equipment. The library and archive research spaces and their equipment in the new main building also represent a significant qualitative change, which naturally helps the professional work carried out in these spaces.

BBJ: How successful have the innovations been in museum education and programs?

LK: Among other features, “Méta,” the museum’s educational space, has proven to be a great success. It serves the wonderful purpose of creating an area to transfer knowledge and educate children and young people.

We didn’t have such facilities before, and we are still learning how to operate them most effectively for our visitors through various projects and solutions.

Lajos Kemecsi BBJ: What about the range of services offered by the museum?

LK: Our most recent achievement is the launch of the “Spend the Night in the Museum” program, an event designed for school kids and families, which provides them with a unique opportunity to learn, play, and unleash their imagination, all while encountering the museum in a distinctive nighttime setting. The audience has shown great interest in it so far.

BBJ: In what ways has the visitor experience been transformed with the new building and its offerings?

LK: As had been hoped, the external features of the building, such as the

BBJ: What new exhibitions and features can visitors look forward to in 2024?

LK: The audience can expect a complex, exciting permanent exhibition to open in May. Regarding the temporary exhibitions, we are not slowing down; in fact, we are accelerating their implementation. Like the guest exhibition from Korea this year, we will continue to welcome such projects in 2024. We anticipate a fascinating show from Croatia showcasing hats and wearable elements in collaboration with the Ethnographic Museum in Zagreb. Moreover, we will continue the series of exhibitions that uncover our own collection, emphasizing exhibiting our exceptionally rich photo collection.

Most importantly, we will continue to focus on creating an engaging atmosphere and a vibrant and lively museum.

4

www.bbj.hu

Budapest Business Journal | December 1 – December 14, 2023

Chamber of Commerce Corner

This regular section of the Budapest Business Journal features news and events from various international business chambers. For further information and to register for specific events, visit the website of the organizing chamber. If you have information for inclusion on this page, send an email in English to Annamária Bálint at annamaria.balint@bbj.hu

Joint Venture Association (JVSz)

Canadian Chamber of Commerce in Hungary (CCCH) In November, the CCCH was delighted to organize two highlight events of its year. The Canadian Lobster Dinner in Budapest is an outstanding annual business event, gathering significant people from the business world to converse and participate in a Canadian tradition. The chamber thanks its sponsors and exhibitors for helping provide an unforgettable night. Come along next year for the grand 30th-anniversary Lobster Dinner. CCCH also held its first Canadian Lobster Dinner in Szeged. The evening demonstrated that there is a vibrant commercial and academic community in Szeged that is already active on the global scene. We are hopeful that our interaction with Szeged will open further opportunities for business as well as research between Canada and Hungary moving forward.

Belgium Business Club (Belgabiz) and the NetherlandsHungarian Chamber of Commerce (Dutcham) Mindset change. Holistic approach. Right data.

These were the key messages of the “CSRD: Transforming Businesses, Impacting Futures” event organized by Belgabiz and Dutcham on Nov. 21 at the K&H HQ in Budapest. The two business organizations appreciate the active contribution of the representatives of K&H Group, Business Council for Sustainable Development in Hungary, Randstad, Puratos, Atenor, and CBRE.

Swiss-Hungarian Chamber of Commerce (Swisscham) Swisscham members, along with the partner organizations of Netzwerkdigital, had the opportunity on Nov. 23 to visit Boxy’s fulfillment warehouse, which is equipped with state-ofthe-art machines and robotized technology. The site visit was preceded by a presentation on the company’s history and business strategy, followed by a Q&A session on current industry trends.

Mid-December will see the Swisscham Christmas reception, a traditional networking event to reflect on the year and get into a festive holiday mood. • When: Wednesday, Dec. 13, 6:30-10 p.m. • Where: The Anantara New York Palace Budapest Márvány Szalon, Erzsébet krt. 9, 1073 Budapest. • Fee: Members HUF 25.000 / person (0% VAT); non-members: HUF 35,000 / person (0% VAT).

Socialite | 23

Italian Chamber of Commerce for Hungary (CCIU) The CCIU will host an exclusive delegation visit to chamber member Lucart Kft. on Dec. 5. The event at the company’s headquarters aims to shed light on the firm’s journey in sustainable development, emphasizing its commitment to fostering a more inclusive, fair, and environmentally friendly world.

The featured speaker for the occasion is Omar Balducci, sales director of Central and Eastern Europe and EMEA and corporate group advisor of Lucart. Balducci will provide insights into the company’s growth trajectory. This event promises to be a unique opportunity for attendees to witness firsthand the company’s commitment to creating a more sustainable and environmentally conscious future. The Italian Ambassador to Hungary and representatives from the CCIU will also attend.

German-Hungarian Chamber of Industry and Commerce (DUIHK)

On Nov. 23, the third JVSz “Country Ride” event took place in Kecskemét, with 100 people drawn from Bács-Kiskun, Csongrád-Csanád, and Békés counties participating. Following an opening speech by Minister of Energy Csaba Lantos, the event focused on current energy challenges, the latest trends in energy efficiency and savings opportunities. In 2024, JVSz will continue this series with another six events with a ministeriallevel presence highlighting relevant topics.

Hungarian-Norwegian Chamber of Commerce (HNCC) HNCC held its general assembly on Nov. 22, coinciding with the festive Julebord event, a Norwegian Christmas party. This annual meeting marked a significant occasion in Hungarian-Norwegian economic relations, highlighting events during 2023 and reporting on the current and next year’s budget, new members joining the organization, and the programs planned for 2024.

The Julebord offered a conducive environment for participants to engage in more extensive networking and professional exchanges.

Following the general assembly, the focus shifted to the “Medical Service and Technology Day,” a specialized showcase event. This platform allowed two prominent Hungarian companies to present their innovative healthcare products and services to potential Norwegian partners. Wáberer Medical Center, a renowned healthcare service provider, and Attract Kft., the manufacturer of the Nosiboo nasal aspirator, presented their cutting-edge offerings.

The last Jour Fixe event of the year took place on Nov. 23 at the IntercityHotel Budapest, where nine new and one loyal member of the GermanHungarian Chamber of Industry and Commerce could introduce themselves. Over a delicious dinner, we enjoyed interesting and valuable discussions and also had the opportunity to take a guided tour of the hotel, built and run with sustainability in mind. A Jour Fixe is always an opportunity to network and spend a pleasant evening in good company in an exclusive location.

The DUIHK will continue this tradition next year.

American Chamber of Commerce in Hungary (AmCham) The annual Thanksgiving Charity Dinner, one of the most cherished events in AmCham’s calendar, took place on Nov. 20. Organized in collaboration with the Budapest Marriott Hotel, this remarkable event not only celebrated an American tradition but also aimed to give back to children in need by supporting the work of the AmCham Foundation (ACF) and the Regine Sixt Children’s Aid Foundation. The nearly 300 guests were treated to a fantastic live performance by the Imre Baross Circus Arts School, followed by a special Thanksgiving buffet dinner featuring roasted turkey, mashed potato, pecan, pumpkin

pie, and more. A delightful selection of delicious cocktails, soft drinks, and coffee specialties accompanied the dinner. The event also featured engaging activities tailored for the young: a children’s corner with balloons and face painting in collaboration with ACF and musical entertainment by the Eszter-lánc Fairytale Band.

Although Christmas is still a few weeks away, Santa Claus also stopped by for dinner to surprise the children with a little present. Moreover, AmCham also organized a silent auction and charity raffle and collected HUF 3.5 million to aid the foundations that help children in need.