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Tourism in Hungary at its Highest in Years. Will it Remain in the New Year?

Tourism rates in Hungary are currently the highest they have been in the past four years, and with the Holiday Season upon us once again, the country hopes to further increase the guests it attracts through its Christmas markets.  15

The Nutcracker: An Elegant Opera House

Christmas Present

For decades, seeing the “Nutcracker” ballet at the Opera House in Budapest has been part of Christmas for countless Hungarian families and visitors from abroad drawn by the tradition.  16

The Bookshop-Café Hidden in Budapest’s Jewish Quarter

Kester Eddy meets Judit Pecák, who owns and runs Massolit. It is, she believes, the only bookstore-café in the Hungarian capital today dedicated to selling solely new and second-hand Englishlanguage books.   20

Putting the Customer at the Center

Investment Data Explains Weak GDP

Mathias Mentrop, CEO of Penny Hungary, discusses what the retailer does to stand out from the crowd, sourcing local products, charity fund raising and plans for 2025. 10

The two-year downswing in Hungarian investments continued in the third quarter of this year, with the indicator necessary for economic growth hitting a multi-year low, according to data released by the Central Statistical Office. The low investment is expected to restrain economic growth.  3

EDITOR-IN-CHIEF: Robin Marshall

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

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THE EDITOR SAYS

IN PRAISE OF PREPARATION

It’s beginning to look a lot like Christmas, to coin a phrase. Well, it certainly did when the snow fell on the night of Thursday, Nov. 21, into the morning of Friday, Nov. 22. The lights are up along Andrássy Avenue, if not yet (at the time of writing) switched on. The Nation’s Christmas Tree was set up in front of the Parliament on Nov. 25. The silver fir is about 20 meters tall, 50 centimeters in diameter and weighs five tonnes, according to state news agency MTI. It was transported (presumably on one very long vehicle) to Kossuth tér from Dubicsány, a tiny village 196 km northeast of Budapest by road, in Borsod-Abaúj-Zemplén County, not a million miles from the border with Slovakia.

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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.

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The two biggest Christmas fairs, the Vörösmarty Classic Xmas at Vörösmarty tér and the multiple awardwinning Advent Basilica (voted “The Most Beautiful Christmas Market in Europe” for the fourth year running in 2024), at the foot of the Szent István-bazilika, opened on Nov. 17 and will welcome marketgoers until Jan. 1. The newer Corvin Hütte opened at the Corvin Promenade on Nov. 23, but will run until Dec. 24.

All this, and we are not yet into December. Those of a Christian persuasion haven’t even begun to mark Advent, the period of waiting and anticipation ahead of Christmas that is analogous to Lent and Easter. By a happy coincidence in the timing of the calendar and the movement of the stars, this year, Advent Sunday, the fourth Sunday before Christmas Day, falls on Dec. 1, which at least makes the Christmas math easy. Nor should it be forgotten that this is not a uniquely Christian time of year. Jews will celebrate Hanukkah

and light the eight candles of the menorah from nightfall on Dec. 25 until nightfall on Jan. 2 this year.

Some like the idea of a period of contemplation before the gift-giving and excesses of the Christmas meals, although the commercial world sees this time principally as an excuse to sell Advent calendars and wreaths. When the festival was first introduced, fasting was a big part of it, sometimes starting as early as St. Martin’s Day on Nov. 11. That really is somewhat removed from today’s more secular and chocolate-centric approach.

The concept of preparation is one area where the business world has borrowed from Advent. For the conscious Christian, this means preparation for what they call the Gospel, derived from the Anglo-Saxon word god-spell meaning “Good News,” the good news in case being the birth of their Saviour. For the conscious businessperson, the point of focus is more about setting targets than saving souls. This is when many are going through their annual budget planning process, a headache waiting to happen if ever there was one.

But whether you are a person of any faith or none, perhaps we should all explore the idea of taking a step back, not to mention taking stock, right now. If you are lucky enough to have children, or if you are entertaining friends and family, you know that however much you enjoy Christmas, it won’t exactly be relaxing. Perhaps now wouldn’t be such a bad time to think more deeply about personal and commercial plans and goals for next year.

Robin Marshall Editor-in-chief

THEN & NOW

The black-and-white photograph from the Fortepan public archive, dating back 40 years to 1984, features a Mercedes Unimog snowplow (a more modern vehicle than those parked around it or following behind) clearing Áldás utca in Budapest’s District II. The color image from state news wire MTI shows a mini tractor plowing snow in Hungary’s second city Debrecen (233 km east of the capital by road) after the season’s first significant snowfall on Nov. 22, 2024.

Photo by Sándor

Bojár / Fortepan

Photo by Zsolt Czeglédi / MTI

1News • macroscope

Latest Investment Data Explains Weak GDP

The two-year downswing in Hungarian investments continued in the third quarter of this year, with the indicator necessary for economic growth hitting a multi-year low, according to data released by the Central Statistical Office (KSH). The immediate outlook is not too good either, with the low investment expected to restrain economic growth.

Investment in the national economy in Hungary (2002-Q1-Q3 2024)

Source:

Volume index, same period of previous year equal to 100

According to the KSH report on Nov. 22, domestic investments were 14.9% lower than the same period last year. But look at the first three-quarters of the year, and the situation is not any better: the sector’s performance declined by 14% between January and September, the worst performance in a decade. From Q2, investments fell by 2.5% in the third quarter of 2024.

None of this came as a big surprise, as the Q3 GDP figure was also disappointing, with a 0.7% decline compared to the same period of last year, meaning that the Hungarian economy slipped into a technical recession again. Although little is known in detail at this stage about the cause of the weakening investment data, KSH said that the most significant contributors to the sector’s decline were manufacturing, transportation, warehousing and education.

The one thing that stopped the decline from being even worse was increasing investments in the energy industry.

It is most likely that the collapse of the export markets of the domestic manufacturing industry, which focuses on the automotive and battery industries, explains the poor performance in the third quarter. Weak state investment activity due to a lack of EU funds also contributed to the poor performance.

It may also be a cause for concern that the economic performance of Germany, Hungary’s largest trading partner, is still below expectations. According to data from the German statistical office, the economy of the former European Union powerhouse grew by barely 0.1%, managing to underperform even the anemic expectations of a 0.2% expansion.

Commenting on the data, ING Bank’s leading analyst, Péter Virovácz, cautioned that we can already conclude from this year’s GDP figures that there could also be problems with investments in 2025.

Worryingly Weak

According to Virovácz, the picture is worrying because the data is weak even though several large investments are underway, such as the construction of Paks 2 and the battery projects of Chinese and South Korean firms. Residential investments, namely housing construction, have

also been put on hold, with families proving more likely to save than spend. Perhaps only government support programs will be able to boost the desire to build houses again.

State activity is also weak, as investments worth several trillion forints have been postponed to 20252026, maybe even longer. Meanwhile, the missing EU funds are also holding back investments, and it is not known when they will be released; it seems that Hungary cannot count on this resource in the near future.

The uncertain tax environment may also reduce the private sector’s willingness to invest. Since company managers do not know what extra taxes they can expect, they prefer to put something aside to avoid an unpleasant surprise. That, in turn, means there is less available for investment and research and development, Virovácz says.

According to him, no significant state investment is expected to start next year due to scarce resources. At best, with increased household consumption, VAT revenues could represent an additional source for the budget, which the government could then use for investment.

The chance of further EU funds being released is still small, so no significant source can be expected from there either. In conclusion, while there may be signs that the investment decline is stopping, this is said more in hope than expectation, the analyst says.

Given all of the above, it would be a miracle for the Hungarian economy to approach the upper limit of the 3-6% growth path spoken of by Prime Minister Viktor Orbán next year. It is much more likely that it will remain at or just below the lower limit of 3%.

This is also indicated by the fact that, according to the European Union’s latest forecast, the Hungarian economy will only grow by 1.8% next year. According to the ING Bank’s economic estimates, Hungary’s gross domestic product will only expand by 2.9% next year.

Decreasing Investments

As already indicated, the investment performance was weak again in the third quarter: its performance was even below the low investment volume of the previous quarter, and here we can see another reason for the weak GDP data, according to Gábor Regős, head analyst at Gránit Alapkezelő. The investment volume decreased for the sixth time on a quarter-on-quarter basis.

“Two factors can be highlighted in connection with the decline in investments: on the one hand, the lack of funds due to the withholding of EU funds, which is pulling back state investments (this is seen, for example, in the education and transport and warehousing sectors), and the uncertain economic situation,” Regős said.

“The latter is primarily seen in the weak investment activity of the manufacturing industry, although the investment activity of SMEs here is also determined by the availability of EU funds, since without state (EU) support, companies are reluctant to invest: on the one hand, it is less worthwhile for them, and on the other hand, the abundance of funds in recent years has accustomed them to state subsidies,” he argued.

He added that, at the same time, the low investment activity of manufacturing is also due to the low demand; companies do not see that it would make sense to invest, as it is not clear who would buy the product produced. This also contributes to the slowdown in large-scale investments.

According to Regős, the latest data bodes poorly for the GDP figures for the coming period: low investment will restrain economic growth. He did, however, sound one hopeful note.

“Let’s add that capacity utilization is not exactly high right now, so, in principle, it [the economy] could grow even with low investment volume,” he added.

ZSÓFIA CZIFRA

Hungary Worried by Missile Permission and Bank Sanctions Roundup Crisis

The war has entered its most dangerous phase, Prime Minister Viktor Orbán said in a post on his Facebook page on Nov. 20 as he called together his Defense Council.

“The threat of escalation and the expansion of the war is greater than ever,” the PM said after being briefed at the meeting.

Orbán called for the meeting of the Defense Council in response to U.S. President Joe Biden giving Ukraine permission to use U.S.-supplied longerrange Atacms missiles to strike targets in Russia on Nov. 17.

“In practice, this means that Ukrainians fired long-range missiles into Russian territory on Tuesday, and Russia responded by adopting a stricter nuclear doctrine,” Orbán said. While Donald Trump’s impending presidency had made the prospect of peace, or at least a ceasefire, tangible, he said, a “pro-war” U..S administration was still in power and would remain so for the next two months.

Minister of Foreign Affairs and Trade Péter Szijjártó also echoed the sentiment that “the most dangerous two months in decades are ahead of us” in a post on his Facebook page on Nov. 19.

He criticized Biden, saying that a president “who was voted out of power by his own party, whose capabilities are questioned by many, and who will leave office in two months, may make decisions that will lead to a global catastrophe. Because, let’s be clear, allowing the use of American weapons against deep-seated Russian territories poses a world war risk. And if this happens, we [could] lose everything,” Szijjártó warned.

Hungarian leadership was further irked by another decision made by the United States later that week.

On Nov. 21, the U.S. Treasury Department imposed new sanctions on Russia’s Gazprombank. By preventing the Russian lender from handling any new energy-related transactions tangent to the U.S. financial system, it could shut down the only way European customers can pay for Russian gas.

Payment Impossible

“EU payments for energy resources through Gazprombank will likely become impossible at the end of 2024,” Sinara Investment Bank analysts told international news wire Reuters.

Responding to the decision the following day, Szijjártó condemned the inclusion of Gazprombank on the U.S. sanctions list in a post on his Facebook page. Describing the move as a “deliberate threat” to Central and Eastern Europe’s energy security, he declared that Hungary considered any interference with its energy supplies, whether through sanctions or blocked transit deliveries, an attack on its sovereignty.

Szijjártó stressed that Hungary would not submit to such pressure and is working with Turkey, Azerbaijan, Bulgaria, and Serbia to address the issue.

Earlier, on Nov. 15, Orbán told Kossuth Rádió that the European Union ought to rethink sanctions against Russia as elevated energy prices were hindering the bloc’s economic competitiveness.

“Energy prices need to be lowered by all means. This means that sanctions need to be reconsidered because, under the current sanctions policy, energy prices will not go lower.”

He said that U.S. companies pay a fraction of what their European counterparts spend on gas and electricity, adding that this disadvantage could not be overcome by other means.

“Energy prices need to be lowered by all means,” he said. “This means that sanctions need to be reconsidered because, under the current sanctions policy, energy prices will not go lower.”

Energy Dependence

Meanwhile, the opposition Tisza Party stated that the key to ensuring Hungary’s sovereignty is ending Russian energy dependence in a statement issued on Nov. 14. While it supported the European Parliament’s vote that day to strengthen sanctions against Russia, the party said it was forced to abstain from the prohibition on Russian energy imports.

“Due to the Orbán government’s mistaken policies and omissions, an immediate, complete ban would endanger our country’s energy supply,” the statement explained.

Tisza added that Hungarian companies paid some of the highest prices for gas and electricity in the European Union because the government had neglected to invest in the sector and had accepted the country’s dependence on Russian energy.

While Western European countries have made serious efforts to wean themselves off Russian energy, landlocked Hungary continues to get 80-85% of its gas from Russia, with 80% of its crude oil supplies also coming from its former Soviet overlord, the party added.

NICHOLAS PONGRATZ

In this photo released by the Press Office of the Prime Minister, Prime Minister Viktor Orbán (second left) is seen with Minister of the Interior Sándor Pintér (third left), Minister for National Economy Márton Nagy (left, nearest camera), Prime Minister’s Political Director Balázs Orbán (fourth left), Minister of the Prime Minister’s Office Antal Rogán (right, nearest camera), Minister of Defense Kristóf Szalay-Bobrovniczky (third right), and Chief of the Defense Staff General Gábor Böröndi (fourth right) at a Defense Council meeting at the former Carmelite Monastery on Nov. 20. The meeting was convened by the PM in light of the latest developments in the war in Ukraine and the increased risk of escalation of the conflict.

Photo by Vivien Cher Benko / Prime Minister’s Press Office / MTI

Positive Indicators for the Industrial and Logistics Sector in Hungary

Analysts see industrial real estate as going through a market upturn with both leading regional park developers and operators and Hungarian players active in a market that has been thriving on the back of increasing demand in recent years. This is against a background of growing demand for high end, ESG compliant space to meet the significant demand for such logistics and manufacturing and distribution space.

“In spite of higher availability, there is a pipeline of nearly 700,000 sqm in the coming year or so,

The market is continuing to grow despite some market concerns over moderating demand that is causing developers to move towards a more cautious built-to-suit development model, rather than the more ambitious speculative model.

“I am optimistic with regard to the industrial market with a healthy pipeline and strong demand in both the Greater Budapest area and in regional hubs,” comments Valter Kalaus, managing partner at Newmark VLK Hungary, who is active in the industrial sector.

390,000 sqm of which is in the Greater Budapest area and 300,000 sqm in regional hubs,” he adds.

Kalaus sees the role of his firm in the current market environment as providing consultative or tenant representative advice to clients in the office, industrial, hotel and retail sectors, in addition to brokerage services.

“It is no longer enough to be exclusively a brokerage firm as there is an ever increasing need to provide consultative advice in the current market environment.

With regard to advice on ESG issues, this is currently a hot topic and previously was more dominantly in the office sector, although it has become more of a factor in the industrial sector,” he notes.

Preferred Development Option

To the background of a cooling in the industrial market, where the overall vacancy rate has risen to 8-9% from a low of 2-3% a few years ago, BTS has become the preferred development option as manufacturing and distribution hubs have become more important. As a result, developers and landlords increasingly need to develop in accordance with tenant-specific solutions, although this provides less

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Real Estate Matters

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

flexibility from the perspective of landlords and developers with regard to future lettings. Developing a facility for a car manufacturer or supplier is very user-specific, for example.

With regard to ESG and sustainability issues in the industrial sector, these elements have come to the fore, as had previously been the case with offices. This is central to tenant demands regarding the health and well-being of staff and the creation of what is seen as a healthy working environment.

This includes natural lighting, the provision of green energy, sustainable waste disposal and a low carbon footprint. Tenants and landlords have common obligations in moving towards zero-carbon goals, a pathway that both the industrial and the office sectors now find themselves on.

Financial concerns have come further to the fore as there is generally a longer negotiation process due to more specific demands and ESG requirements in preleases with, for example, a preference for heating to be via heat pumps rather than gas.

Cities in the countryside beyond Budapest, such as Győr, Kecskemét, Miskolc, Debrecen, Nyíregyháza and Szeged are now attracting inward industrial and logistics investment. It is increasingly important that all parties work together to resolve ESG and labor force challenges in order for the market to grow, Kalaus concludes.

CEE Investment Volumes Showing Signs of Recovery

Investment volumes for the Central and Eastern European region (Bulgaria, the Czech Republic, Hungary, Poland, Romania and Slovakia) hit EUR 5 billion for the first three quarters of 2024, up 24% year-on-year. This aligns with European and global market rebounds after a slow 2023. Colliers says year-end volumes could reach EUR 7 bln-7.5 bln, about 30% below the 10-year average.

GARY J. MORRELL

This year-end figure will depend principally on known activity closing as expected. The region has seen less pricing correction than Western Europe over the past 18 months, leading to a slower recovery. Further correction is expected in 2025 as deal activity picks up, though at varying rates across the six CEE countries. Total investment for Hungary for the first three quarters of the year fell to EUR 190 million, according to Colliers.

“Donald Trump’s 2024 election win has raised concerns in Europe, with

analysts expecting a return to his 2016-2020 policies,” comments Silviu Pop, director of research for CEE & Romania at Colliers.

“This could negatively impact Western Europe, especially Germany, which is CEE-6’s top export partner, with 27%

of exports in 2023. A decline in capital flows and increased risk perception for the Eurozone are anticipated, adding uncertainty to CEE economies and local asset risk. Clarity on Trump’s geopolitical stance will be crucial in early 2025,” Pop adds.

For the 2024 three-quarters period, Poland recorded EUR 2.73 bln in transactions, reflecting its position as the dominant CEE investment market. The Czech Republic recorded EUR 1.03 bln for the same period, with EUR 650 mln in investment activity traced for the rapidly developing Romania market.

Pinpointing Yields a Challenge

Given the lack of evidence in the market, it remains a challenge for all players to pinpoint where yields currently stand.

Colliers put prime yields for Budapest at 6.25% for office, 6.75% for industrial and 8% for shopping centers. This is a significant premium on both Western Europe and the Czech Republic and Poland. Prime office yields for Prague stand at 5.5%, with the Warsaw figure at 5.75%.

Avison Young estimates yields for Hungary at 6.75% for prime office, 6.75-7% for prime industrial, and 7.5-8% for strip malls.

Consultancy CBRE puts prime office yields at 7% but adds that a new benchmark is required. Industrial yields start at 7%, underpinned by a recent Greater Budapest transaction,

and best-in-class retail parks are estimated at 7-7.25%. Hotel with a lease contract is put at 7.5%

Real Estate is still not fully back on its feet, with most deals happening off-market. A more meaningful recovery is expected in

2025

but will depend greatly on an improved economic, inflationary and interest-rate environment.

“Looking ahead to 2025, there is cautious optimism as pricing appears to have stabilized, and expected European Central Bank rate cuts could boost market activity. However, a broader recovery in transaction volumes is not likely until the third or fourth quarter,” Colliers says.

“The region’s economic growth, especially compared to Germany’s recession, combined with stabilizing prices and returning institutional capital, point to better conditions by 2026. Current deals focus on value-add and opportunistic strategies, particularly in re-priced sectors, though a significant pricing gap remains, especially in logistics with regard to Central European investment,” the agency concludes.

GARY J. MORRELL

Valter Kalaus

Hungarian Automotive Fears it Must Brace for Impact Automotive Matters

Automotive in Hungary has been struggling for a while now, and with newly introduced European duties on Chinese EV imports and the threat of U.S. tariffs on “Made in the EU” products under Presidentelect Donald Trump, the future looks anything but rosy.

Now it’s official: the Hungarian economy is back in a technical recession, given a decline in two back-to-back quarters. The flagship automotive industry is confronted with alarming signs, too, having fallen 12.4% year-on-year in August. Much of the pain originates not here but in Germany, where the sector is already struggling, not least because of Chinese competition. Volkswagen is even contemplating closing German factories for the first time ever.

This may just be the beginning, though. The specter of protectionism looms over 2025, with a new tariff war potentially in the making, posing a considerable threat to stakeholders in the open and, therefore, exposed Hungarian market. For starters, the European Union has decided to impose punitive tariffs on Chinese electric vehicles to protect European automakers. It is a highly divisive measure, considering that just 10 out of the 27 EU member states voted in favor. The biggest portion of 12 states abstained, but Germany and Hungary were among the five who voted against (Germany was the only one of the EU’s six largest economies to do so).

Minister of Foreign Affairs and Trade Péter Szijjártó expressed deep concerns over the decision, calling the tariffs “another blow to the continent’s competitiveness.” Szijjártó argued that the decision by the European Commission disregarded the positions of many member states and the interests of major European automotive firms, which opposed the measure.

A monthly look at automotive issues in Hungary and the region

“The success of Europe’s electromobility strategy is difficult to imagine without cooperation with Chinese suppliers,” he said. The CEO of the Hungarian Investment Promotion Agency, István Joó, shared the minister’s criticism.

“Car buyers stand to lose the most due to the European Union’s punitive tariffs on Chinese electric vehicles,” Joó stated. He highlighted the significant partnerships that already exist between Chinese suppliers and German automakers such as BMW, Audi, and Mercedes-Benz. The latter have substantial manufacturing capacities in China, and the idea is to forge closer relations on Hungarian soil as well. Joó further warned that, without cooperation, Europe risks lagging in EV innovation and production as automakers increasingly rely on Chinese battery technology and expertise.

Chinese Response

The fallout from these tariffs could have significant implications for Hungary’s economy. As an emerging EV production hub, Hungary relies on foreign investments in the automotive sector to fuel job creation and economic growth. Chinese EV investments are particularly vital, with companies like NIO already active in the country. The factory BYD is building in Szeged will put that southern university city among Europe’s 30 biggest industrial centers. Leading battery manufacturers such as CATL and Eve Power have also announced large-scale projects here recently, among others.

Germany’s leading automakers such as Audi, BMW, and MercedesBenz, which dominate the industrial landscape in Hungary, have also

criticized the tariffs. They argue that the restrictions hinder their competitiveness and disrupt established supply chains, underscoring the interconnected nature of global automotive production.

“The success of Europe’s electromobility strategy is difficult to imagine without cooperation with Chinese suppliers.”

The first countermeasure has already arrived. China has responded with a directive urging its automakers, including BYD, Geely, and SAIC, to halt major investments in European countries that supported the tariffs. At an Oct. 10 meeting, China’s Ministry of Commerce advised these companies to pause assetheavy projects in such nations. Hungary, which opposed the EU’s proposal, may see a relative benefit from this decision as Chinese companies look for alternatives among EU countries. BYD is, apparently, considering moving its European headquarters from the Netherlands to Hungary due to cost concerns.

‘Beautiful Tariffs’

The EU-China showdown is just one piece of the puzzle. The election of Donald Trump projects even more challenging times for the sector.

The president-elect recently told Bloomberg: “To me, the most beautiful word in the dictionary is ‘tariff,’” and he even called the EU “a mini-China.”

It remains to be seen to what extent he’s bluffing. Pundits have been speculating he might use tariffs to protect domestic players and increase government revenues to compensate for the impact of promised tax cuts. He has expressed his view several times that he would prefer German automakers to shift production to the States rather than import models made elsewhere.

This has partially happened already: last year, a record

908,000

German-branded vehicles were manufactured in America. However, the existing U.S. factories of German car manufacturers don’t have enough spare capacity to absorb a large-scale shift of production from Germany to avoid tariffs.

Some 15-20% of the EU’s vehicle manufacturing output is exported to the United States. If tariffs are introduced, it would be a massive blow to the industry, and Hungary would be negatively affected.

On top of all that, Trump has suggested introducing a 60% tariff on Chinese imports. The incoming American president might want to use this policy to make partner countries form a united front against the Asian giant. Again, this development is bound to harm Hungary’s interests due to her increasing exposure to Chinese investments.

Trump’s eventual tariffs on EU imports alone would result in the German economy losing 0.2% of growth in 2025, while the drop could be 0.1% in other European countries, according to Berenberg Bank. It is a projection that sends a clear message to Hungarian stakeholders: brace for impact.

LEVENTE HÖRÖMPÖLI-TÓTH

U.S. President-elect Donald Trump’s threats to impose tariffs on China and the EU could be a double blow to Hungary’s auto industry.

Photo by Jonah Elkowitz

Why is the Young Mind More Agile?

The nervous systems of older people function more slowly and less efficiently in many ways; they react more slowly, make decisions more slowly, and find it harder to learn new things. This is well known, but scientists have long been intrigued by what happens in aging brain cells that cause these effects. Dr. Karri Lamsa and his Hungarian colleagues at the Human Neuron Physiology and Therapy Research Group of the Hungarian Center of Excellence for Molecular Medicine Research Institute in Szeged have come closer to finding an answer.

networks. These nerve cells play a crucial role in regulating and timing the dialog between neurons, key processes underlying thinking and learning.

However, much of what we know about living neurons comes from laboratory animals. Because studying living human brain tissue in the laboratory is so challenging, most research relies on so-called model animals, often rats.

The rationale behind this approach is that rats are relatively close to us genetically; therefore, our nervous systems are similar enough in specific important ways that useful conclusions can be drawn from studies. This holds true in many cases but less so when it comes to the aging brain.

Masters of the Abstract

Rats also have a significantly shorter lifespan than humans. In fact, among our closest relatives, the nearly 6,400 species of mammals, there are very few animals with longer lifespans than modern humans; only a few examples can be found among whales. Compared to the typical human lifespan of 70-80 years, a rat lives only one or two, so the usefulness of conclusions drawn from “older” rats is limited.

neurons in the old brain are electrically weak and slow, more repetitions are needed to store memory traces.

The molecular changes underlying the weaker electrical signal in the old brain are still unknown. The keystones of electrical signal propagation, as it spreads like a wave from neuron to neuron, are ion channels and pumps, proteins that allow electrically charged particles to move between the inner and outer surfaces of the cell.

It appears that the slowing of thinking with age is due not only to the reduced number of neurons in the aging brain but also to the weaker signaling of old neurons. These findings may also explain why older people need more repetition to learn new things.

The part of the brain responsible for complex functions is the outer layer, the cerebral cortex. It is here that the lion’s share of processes, such as learning, remembering and planning, take place. The importance of this area was first suspected by scientists through the life stories of patients who had suffered damage to the cerebral cortex as a result of an accident or illness and lost some of these abilities.

We now know that the cerebral cortex contains a large number (one in five cells) of neurons called interneurons, which strongly innervate other neurons and are important in forming neural

Over millions of years, our species has developed an extraordinarily powerful, efficient, and energy-consuming central nervous system. Just as other animals have specialized for perfect night vision, smell, or fast muscle reaction time and reflexes, humans have become masters of the abstract and complex thinking required for skills such as modeling, planning, and cooperation.

Our nervous system contains many unique evolutionary adaptations that serve these purposes. Lamsa’s research group has previously shown that certain molecules (ion channels on the surface of neurons) are specific to human neurons.

The Human Neuron Physiology and Therapy research group works with real human neurons. These are obtained from volunteer donors who have undergone brain surgery for a medical reason, such as a tumor or injury. In such cases, doctors often have to remove a small amount of intact brain tissue to access the area of interest. This living human tissue is used by the research group, which works with hospitals to keep these scientifically valuable samples alive for laboratory study.

In Lamsa’s latest study, recently published in the Journal of Biotechnology, the youngest neurons came from an 11-year-old patient and the oldest from an 84-yearold, revealing significant differences between the neurons in young and older people. The interneurons of older people fire electrical signals more slowly and produce weaker, lower-voltage responses (known as action potentials).

Weaker Signals

Thus, it appears that the slowing of thinking with age is due not only to the reduced number of neurons in the aging brain but also to the weaker signaling of old neurons. These findings may also explain why older people need more repetition to learn new things.

The formation of new memories in the brain requires strong electrical activity of neurons within time windows of only a few milliseconds. When

The researchers suspect that this is where older cells perform poorly. Their metabolism is no longer as efficient; neurons in the old brain conserve resources and cannot allocate enough energy quickly enough to produce fast, strong electrical signals like their younger selves. By gaining a deeper understanding of how neurons age, we are one step closer to protecting our brains and minds from the deteriorating effects of aging. To that end, the Human Neuron Physiology and Therapy research group is working to understand our brains better.

The Hungarian Center of Excellence for Molecular Medicine (HCEMM) is a distributed institute whose scientists develop advanced diagnostics and treatment options supporting healthy aging. The HCEMM program is currently funded by an H2020 Teaming Grant (where Semmelweis University, the University of Szeged and the HUN-REN Biological Research Center, Szeged cooperate with their advanced partner, the European Molecular Biology Laboratory, headquartered in Heidelberg, Germany) and a Thematic Excellence award, as well as a National Laboratory award from the Hungarian Government. The various activities are coordinated by HCEMM Kft., headquartered in Szeged, Hungary. HCEMM works at the interface of academic and industrial research on topics related to translational medicine. The goal is to improve the quality of life for an aging Hungarian population while at the same time lowering the cost of healthcare provision through novel applications in the field of molecular medicine.

Dr. Karri Lamsa

Young Hungarians Keep Heading West When it Comes to Studies

About seven percent of Hungary’s universityaged population is earning their degree abroad, with the number of students growing yearly. The destinations reflect steady preferences, but given the vast array of courses available and the constantly changing rules, many seek professional guidance.

that figure doesn’t reflect reality in full, as registration of international students is not compulsory in every country.

Hungarian youngsters continue to pursue opportunities to study abroad in ever larger quantities. The number has doubled since 2010, hitting the 17,500 mark in the current academic year. Even

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The unbroken enthusiasm has much to do with the fact that Hungary’s highestranked higher education institutions are in the 600-800 range globally at best. Medical university Semmelweis is the only exception; even it “only” ranks in the top 300 worldwide.

The shift in financial conditions offers another explanation for the trend. When

the number of government-funded university spots was dramatically slashed in 2013, it gave another push to the study abroad movement.

Even with that new reality in place, enrolment at prestigious Dutch universities isn’t necessarily more expensive than studying in the home country. The old saying “Go west, young

man!” is being taken to heart by an increasing number of Hungarian youths, male and female.

The Netherlands has also been gaining in popularity since Brexit. The latter event restructured the landscape for EU students, who were often traditionally oriented toward the United Kingdom. The appeal of Dutch tertiary education lies in its extensive English-language programs, which cover a broad range of fields and are known for their modern teaching methods, practical approaches, and global outlook.

This availability of English-language programs is unmatched among nonnative English-speaking countries, making it a top alternative to U.K. universities. Dutch universities also offer relatively affordable tuition rates, typically around EUR 2,500 per year, significantly lower than those in the United Kingdom or the United States.

“For the first time ever, more Hungarians study in the Netherlands than in pre-Brexit era Britain,” Rita Nádas, an educational leader at Engame Academy, highlighted as she presented recent research.

More Complicated Future?

Today, there are nearly as many Hungarian students at Dutch universities as at German. However, things might become more complicated in the future as local student associations have initiated requests at the government level to cut back on English-language degree courses.

Electronic Archiving: Businesses Have to Act Now!

Starting from Jan. 1, 2025, Hungarian businesses will receive natural gas and electric public utility bills in the form of e-invoices. This significant change is a new administrative burden not only for service providers but also for the businesses in question, who will be required to fully comply with the laws on the digital retention of e-invoices starting next year.

BENCE BARTA

E-invoicing will be mandatory for electricity and natural gas trading companies regarding all invoices issued to non-residential users. The current text of the VAT Act requires the invoice recipient to provide preliminary consent for the use of e-invoicing. This latter rule will also change, as confirmed by the ViDA (VAT in Digital Age) proposal package, which was politically approved last week and is likely to be announced in December.

The package is expected to amend the EU VAT Directive by allowing member states to forego obtaining customer consent in the case of domestic transactions if e-invoicing is mandatory.

Accordingly, starting in 2025, businesses may receive their public utility bills digitally even if they have not granted their preliminary consent. If Hungary would like to continue to expand the range of e-invoicing, it will be able to do so freely starting from 2025.

Adopting the ViDA package also means there will be no stopping the process: starting from 2030, all suppliers will be required to use e-invoices issued in line with EU standards for all cross-border transactions, and invoice recipients will be required to accept such invoices.

Regarding the tasks of invoice recipients, the VAT Act requires that e-invoices be retained electronically. The principles specified by the VAT Act shall be guaranteed throughout the end of the retention

period (eight years, according to the Accounting Act): the authenticity of the origin of the invoice, the integrity of its data content, and the legibility of the document.

A Coordinated Approach

Separate legislation prescribes the manners by which these requirements can be met. These set forth the rules, sometimes detailed and sometimes general guiding principles, for

each archiving solution. The tax authority may also inspect these in the framework of official tax authority audits. Generally, it can be determined that a digital archiving solution that complies with relevant legislation requires a coordinated accounting, tax, and IT approach, especially concerning the complexity of the rules and, in many cases, the nature of the framework. However, e-invoicing may also result in easier administrative tasks over the long term, allowing businesses to enjoy possible savings (for example, in document storage fees and mail costs). Moreover, legislative provisions also enable taxpayers to retain existing paperbased documents in digital formats if the digital conversion also ensures the guarantees prescribed by law. Based on the above, an important conclusion is that businesses not yet ready for e-archiving should review the available possibilities for digital document archiving as soon as possible. Businesses that are already able to manage and store e-invoices are strongly advised to ensure that their systems are legally compliant.

LEVENTE HÖRÖMPÖLI-TÓTH

Bence Barta, partner, Andersen Adótanácsadó Zrt.

“This has to do with the fact that the Dutch are used to having interactionbased education, and overcrowded lectures undermine that principle,” Nádas explained.

All in all, Hungarians’ top country preferences haven’t changed. Austria still tops the charts, followed by Germany. Both offer tuition-free education, are relatively affordable and are close to the homeland. English-language offerings in German universities are gradually expanding. Both countries also provide excellent pathways for graduates to integrate into their respective labor markets.

Among the top five destinations are Denmark and the United Kingdom as well. The Danish higher education system lures applicants with its tuitionfee scheme. Although certain restrictions in terms of programs taught in English have been introduced, the fierce labor shortage the economy faces may be a pull in the opposite direction. Either way, British colleges are losing ground for understandable reasons.

“After Brexit, EU students are charged international fees that can easily exceed the

30,000 mark as opposed to the GBP 10,000 U.K. fee,” Nádas says. “Attractive student loans are no longer available, and full scholarships don’t really exist at the undergraduate level.”

Not surprisingly, a mere 320 students applied to U.K. universities from

Hungary this year, and the number of students at British higher education institutions is down to just over 1,100.

Apart from the Netherlands, Ireland is another beneficiary of the postBrexit landscape. “You can nicely pair courses which Hungarians should find attractive,” Nádas points out. Affordable tuition is another plus, and the EUR 3,000 administration fee usually doesn’t apply to Hungarians due to income-based financial support. There’s a catch, though.

“The Irish convert foreign high school diplomas at a devalued rate, which means foreign applicants are disadvantaged compared to locals, hence need to deliver much better results,” Nádas warns.

Financial Support

Cross-border educational adventures are not necessarily the privilege of the wealthy. If students work in the Netherlands, the government matches their salary, which should enable them to make ends meet. Receiving professional guidance at home, which can be a critical component to gaining admission abroad, is not beyond reach, either.

The Engame Academy offers supplementary education to Hungarian high school students, with particular regard to preparing them to study abroad, and is accessible for youngsters with modest means too.

“We have helped 2,000-plus students enter the university of their dreams since our establishment in 2010, many

Hungarian Students Studying Abroad by Academic Years

of whom profited from our scholarship scheme,” CEO Ágota Bíró says.

Engame’s four-year program focuses on career guidance, life skills, and language development by covering a wide range of topics, one-on-one mentoring and field trips in different economic sectors. Their crown jewel is a

month

university admission preparatory course.

“Spoilt for choice, students do need personalized guidance in this maze of admission rules,” Bíró added.

The statistics speak for themselves. This year, Engame’s 78 graduates had

a 99% acceptance rate, the bulk of them landing at foreign universities. In line with current trends, destination No. 1 was the Netherlands, with 30% of Engame alums enrolling there.

“It’s so much more than calculating admission scores when it comes to applications. We help students find what fires them up and where they find the course most suitable to their needs,” Bíró explains.

“This could even be in Hungary. The bottom line is that they can make informed decisions about where and what to study, and thus gain the university education that will equip them to become confident, purposeful adults,” she concludes.

Zwack Unicum Expands its Range with Orange Bitter

Orange Bitter, the latest innovation from Hungary’s storied spirits maker Zwack, was un-veiled on Nov. 15, marking another milestone for the 230-year-old Hungarian distillery. Following the release of luxury liqueur Trezor XO in October (see Zwack Unicum Enters Luxury Market With Family ‘Trezor’ in the Oct. 18, 2024 issue), the company has now introduced what it describes as Hungary’s first orange-flavored herbal liqueur.

Orange Bitter combines the classic Unicum recipe, aged in oak barrels, with Sanguinello blood orange distillate and extract, creating Hungary’s first orange-infused

herbal liqueur. According to Zwack Sándor, chairman of Zwack Unicum’s board, speaking at the launch event, the new offering represents “a perfect harmony between the herbal complexity of Unicum and the refreshing aroma of orange peel.” Crafting the orange distillate involves a process that highlights the unique expertise of the Zwack team. This balance between spicy herbal flavors and the bright, zesty notes of orange aims to create a distinctive sensory experience, making the Orange Bitter a standout addition to the Unicum family.

Reflecting the sunny charm of Tuscany, the herbal liqueur is best enjoyed over two ice cubes with a fresh slice of orange in true aperitivo style.

Exciting Chapter

“With Orange Bitter, we bring a taste of the sun-soaked Italian countryside and the essence of dolce vita to Hungary,” Zwack explained. He noted that the drink adds an exciting chapter to the Unicum legacy, which includes products like Szilva, paying homage to Hungarian traditions, and Barista, evoking the exotic coffee farms of Costa Rica.

“This new creation takes us to my homeland, Italy,” Zwack added.

He emphasized that Orange Bitter is not merely an orange liqueur but an authentic Unicum product, enriched with orange distillate and extract, aiming to appeal to adventurous palates and reshape drinking culture. Its lively, versatile character makes it suitable for any occasion, whether a bustling city night, a cozy date, or a lively gathering of friends.

During a conversation with the Budapest Business Journal in June, Zwack reflected on the company’s resilience in navigating challenges posed by the pandemic and geopolitical tensions.

“The secret to our success lies in maintaining a delicate balance between tradition and innovation while keeping the founding family involved even after 230 years,” he said.

Sándor Zwack speaking at the launch of Orange Bitter.

Orange Bitter is best served on ice.

Photo by Gergely Herpai

Photo by Zwack Unicum

2 Business Customers Remain Penny’s Focus

Mathias Mentrop, managing director and CEO of Penny Hungary, sits down with the Budapest Business Journal to discuss the year to date, how the retailer stands out from the crowd, sourcing local products, charity fund raising and plans for 2025.

our network in rural areas. By the end of 2024, we will have 238 stores. We believe in the market and plan to expand as local opportunities allow.

BBJ: How has the 2024 financial year been for Penny Hungary? What are the highlights?

Mathias Mentrop: We are still before the most important shopping period of the year, Christmas/New Year. In 2023, our turnover was above EUR 1.2 billion, a double-digit growth compared to the previous year. What we can say about 2024 is that, once again, the year was challenging. We have a great responsibility to show our customers that the market is stabilizing and inflation is becoming more moderate. The cost of shopping makes it very tangible for them. Our primary focus in 2024 is on retaining current customers and gaining new ones; therefore, we made further improvements in our processes, optimizing our operations. But our job remained the same: to retain the trust of our customers that we are providing daily value-for-money shopping throughout the country. This is our core DNA, so we put a great emphasis on our assortment and providing even greater offers for our customers. This year, we have opened five stores thus far, which aligns with our focus on extending

BBJ: Given the competition that is out there on the Hungarian High Street, what makes Penny stand out?

MM: We are proud to say that almost 90% of our store network is in the countryside and there are many areas where we are the number one choice for groceries. Also, we provide the same assortment at the same price point and an excellent price-value ratio in our stores, which is very attractive to our customers. The Hungarian market is very competitive, and there are many options for a customer. Hence, at Penny, we provide extra features to improve the shopping experience, such as expanding further in e-commerce. In all our stores, we have partnered with Munch, the food-saving platform, which is a great way to eat more sustainably. On the other hand, this is a fantastic option to save even more if you are on a budget because the package discounts are at least 50%. We believe this service can be attractive to the youngest and to the older generation. If you are looking for more comfort and picking your favorite products from your couch, or you are in a rush and some ingredients are still missing from your next meal, we provide a solution for that too: from November, you can find us in all towns

It is the management’s responsibility to maintain the motivation in the team and encourage them to be bold. We can only reach our shared goals through teamwork, and I believe the recent years have shown our developing results. Our efforts were honored with the “Retailer of the Year” special award for the first time because our professional partners also recognize the hard work we put into our development.

BBJ: How much of the produce on your shelves is sourced in Hungary? How does this share compare with the five other Penny national markets? MM: Some two-thirds of our assortment is sourced locally, and we always seek to increase this ratio. We also label these products as “Selected from Home,” so it is easier to orientate the customer. Additionally, we have more than 10 years of cooperation with the Hungarian Product Nonprofit Ltd. So far, more than 600 of our own-brand products have this labeling. We aim to reach 1,000, so we actively promote this aspect to our suppliers. Customers are also searching for these labels since this is an important decision-making factor for them, right behind price and quality. We are proud to be winners for the third consecutive year of the Retail Excellence Award for Hungarian products.

BBJ: Every Christmas, Penny traditionally supports local Hungarian charities. Will you do so again in 2024? Who will benefit, and what will be the fundraising targets?

served by the Foodora delivery service. Moreover, we are also cooperating with the Roksh shopping and delivery service, through which we cover more than 50 settlements in Hungary.

BBJ: Penny has been going through a rebranding exercise in recent years. Where are you in that process now, and what has been the public response to it?

MM: Our entire store network has been renewed, and our product range has broadened significantly. It is time to act further, so we are now boosting our communications. Our focus is currently on our dedication to local products. We have launched the “Selected from Home” campaign, which takes a “from the farmer to our shelves” approach. The campaign showcased the ideals that we work with every day: Value for Money, Hungarian Products, and Sustainability. The next significant step is the cooperation with our celebrity chef Richard Farkas, who shows how highquality and budget-friendly meals can be prepared from our products, even at the chef-quality level. We have an excellent morning TV show cooperation, now expanded with Chef Ricsi’s appearance, which also positions Penny in terms of quality.

Change is always a challenge, for our employees and, to some extent, our customers because it takes us out of our comfort zone.

MM: Children have been at the heart of our year-round CSR initiatives for many years. This year, we are proud to partner with SOS Children’s Villages to support children in need. Together, we are focusing on three key activities: I. Allocating a portion of the proceeds from certain product purchases to the organization, with a target donation of HUF 10 million.

II. Engaging our employees in getting Christmas presents for disadvantaged children.

III. Sponsoring the Santa Claus Run in Budapest, where we’ll collect toys and essential items in collaboration with SOS Children’s Villages while also raising awareness about the importance of charitable giving.

In addition, we are supporting the International Children’s Safety Service in hosting events to brighten the holiday season for needy children so they can fully enjoy the spirit of childhood.

We recently concluded a successful fundraising campaign with the Red Cross at Penny, where we collected 43 tonnes of food in almost 160 stores to assist families as they prepare for Christmas.

BBJ: Finally, what plans does Penny Hungary have for 2025?

MM: The focus will continue to be on our customers’ needs, and we closely monitor their feedback, so improving operational excellence will be critical. Guaranteeing great prices for our customers is still one of our missions, but innovation and support of local partners will also be in our focus, as before.

Mathias Mentrop

Szijjártó Tells AmCham he Hopes for a ’Golden Age’ for U.S.-Hungary Relations

It is high time to get to the negotiating table in the war in Ukraine as the conflict has cost Europe a lot already, Minister of Foreign Affairs and Trade

Péter Szijjártó told an American Chamber of Commerce in Hungary Business Forum on Nov. 20.

LEVENTE HÖRÖMPÖLI-TÓTH

The event started with a brief ceremony, as this year marks the 10th anniversary of the strategic partnership between AmCham and the Hungarian Investment Promotion Agency. AmCham CEO Írisz Lippai-Nagy and Hipa CEO István Joó signed the document renewing a cooperation that both said had been mutually beneficial and promised to remain so.

In his speech, Szijjártó recalled how the government had followed a strategy based on low taxes and engaging the most people possible in the labor market.

This approach didn’t change during COVID, either, when a record incentivedriven investment program from the state and the assistance of the business community helped the country prevail.

According to Szijjártó, the impact of the war in Ukraine is even more significant than that of the pandemic. He blamed the inflation of the recent past on the side effects of the conflict and the sanctions that followed.

“No one’s ready to be confronted with the fact that the European economy was hurt much worse than that of Russia,” he said.

Economic Backlash

Szijjártó further stated that it is time to review the answers Europe has given to the war. He said the economic backlash is particularly harsh because the long-term basis of growth, namely the combination of Western technology and easily accessible, relatively cheap energy from the East, is gone.

He emphasized that the conflict must shift away from the battlefield, warning that if it continues to be addressed militarily, it could create conditions where achieving peace becomes nearly impossible.

With that in mind, he described the next two months ahead on the Jan. 20 inauguration of the

47th

U.S. President as “the most dangerous” since the conflict erupted. One example he cited was that Ukraine had been authorized to use the longer-range American Atacms missiles inside Russian territory, which, Szijjártó worried, could further escalate the situation.

He sees further threats to the economy in continued sanctions, not least because the EU has started to put together its 15th such package.

‘Final Knock-out’ Predicted

This time around, energy companies and the entire energy sector would face sanctions. According to Szijjártó, that would be a “final knock-out” blow to the EU economy. He highlighted that Hungary would oppose any sanctions related to its energy supplies.

The minister imagines a dramatic improvement in U.S.-Hungary relations, predicting they would enter a “Golden Age.” In his opinion, a second Trump presidency would also provide a chance for Europe to elaborate a peace strategy. On the other hand, he is hoping for the reintroduction of the doubletaxation agreement that the Biden

Incentive Scheme to Boost FDI Activity

Minister of Foreign Affairs and Trade

Péter Szijjártó gave AmCham a detailed overview of the government’s new incentive scheme. Projects involving renewables or energy efficiency and R&D will enjoy generous incentives. The scope of companies eligible for R&D-based grants has been widened: now, businesses of as few as 100 staff can apply. The maximum amount has also been increased from EUR 15 million to EUR 25 mln.

administration formerly terminated. He hopes that restrictions regarding the Esta [Electronic System for Travel Authorization] visa scheme might also be lifted.

In light of the economic worries, a new FDI strategy is needed to get the economy back on the growth track, Szijjártó said. Since currently 70,000 vacant jobs exist in the country, the government doesn’t need to focus on job creation but rather draw projects that increase innovation, automation, R&D, digitalization and added value in the national economy.

Under the government’s new incentive scheme, projects involving renewables or energy efficiency and R&D will enjoy generous incentives. The scope of companies eligible for R&Dbased grants has been widened: now, businesses of as few as 100 staff can apply. .

Therefore, BSCs, engineering and design centers, ICT, pharma, and the semiconductor industry will be in the spotlight, along with the full spectrum of the EV segment. The minister added that the incentive scheme (see box) has been designed to reflect those priorities.

In response, AmCham told the BBJ it has advocated transitioning the economy from a quantitative to a qualitative focus, and welcomes the new FDI strategy. It noted that highervalue-added investments are a vital step toward advancing Hungary’s economy and competitiveness.

The chamber stressed that its Recommendation Package emphasizes these priorities and highlights the importance of aligning policy with business needs.

It also welcomes the government’s readiness to negotiate a double taxation Treaty and continues to stress the importance of this agreement, underlining its potential to strengthen bilateral economic ties and deliver significant benefits for businesses in both countries.

Those ready to invest in training can look forward to funds of up to EUR 3 mln. The location of future investments will significantly affect how much companies can expect in government support. Access to cash incentives will be granted in county centers for minimum project values of EUR 5 mln-10 mln, depending on the location. In regions away from the county seats, an investment of EUR 3 mln can get the

conversation started for investors seeking government finance. In the case of projects that aim to achieve Net Zero under the Temporary Crisis and Transition Framework, incentives can go up to EUR 350 mln. The maximum support for training initiatives has been increased to EUR 3 mln. BSCs need to create fewer jobs (25) than before to become eligible. And companies adversely affected by the global minimum tax will be compensated by the new scheme.

Minister of Foreign Affairs and Trade Péter Szijjártó speaks at the American Chamber of Commerce in Business Forum in Budapest on Nov. 20, 2024.

Photo by Zoltán Kocsis / MTI

Digital Transformation in Hungary: The Very Worst Thing is to Wait

Leaders from diverse sectors in Hungary underscored the dual challenges of regulatory alignment and the technological lag Hungary faces in the global race at the recent Portfolio Digital Transformation Conference. But who would have thought that high digital literacy could make you even more vulnerable to fraud?

more meaningful customer relationships.

OTP has similarly embraced AI-driven transformations, particularly through its “OTP LAB,” dedicated to robotics and automation. However, despite this progress, the banks face regulatory hurdles that often impede digital innovation.

Hungary’s small- and medium-sized enterprises, which are the backbone of the economy, remain far behind in digital adoption compared to the European average. According to a study by the National Association of Entrepreneurs and Employers (VOSz), a prominent business federation, Hungary’s SMEs have a 50.5% digital adoption rate, 32% lower than the EU average.

VOSz emphasized that overcoming this gap requires not only technological upgrades but also strengthening HR capabilities and fostering innovation within these companies. The business federation has, therefore, set up a customizable digital platform offering decision-support tools, and it provides personalized consultancy services to help companies keep pace with cyber developments.

One sector leading the charge in digitalization is banking. Representatives from OTP and K&H highlighted how their organizations have committed to significant IT investments, targeting both efficiency and customer experience enhancements through artificial intelligence and data-driven personalization.

K&H has integrated AI to improve customer profiling and service personalization, helping to establish

Competitive Disadvantages

“The EU has two major competitive disadvantages: a fragmented market and overregulation,” András Fischer, OTP’s director of innovation, told

No to Overconfidence

Remember the Hong Kong clerk who wired USD 25 million after a video call with his alleged superiors, during which he could also see colleagues doing office errands in the background? It turned out that he was the only human participant in the call, with the rest being deepfakes.

As Zsolt Vassy of Technologies for Collaboration & Compliance (TC&C) highlighted, solutions exist to detect such forged content, and there’s an AI for that, too.

But deepfake is just one item in the rich toolkit of cybercriminals. The EU has adopted the NIS2 directive that demands organizations bolster their cybersecurity frameworks.

or if alternative solutions such as prebuilt software or decision trees might be more effective,” Fischer added. Despite this measured approach, the enthusiasm for AI persists. MOL Group has integrated generative AI into its MOL Move platform, enabling hyperpersonalized services that cater to over a thousand customer segments.

Follow a Roadmap

“You need to follow a roadmap here and go step by step,” István Mag, head of MOL’s Digital Factory, said. “It took us five years to figure out the most optimal way to sell hotdogs, for instance, relying on tonnes of data and sophisticated algorithms.” What matters the most is to act and to do so now.

“It won’t be AI that replaces people, but those who use AI will replace those who don’t.”

“Don’t wait if you are considering doing something about digital transformation,” K&H innovation leader Balázs Németh noted. “Even if some of the pilot projects fail, which they will do, the impact of altering the organizational culture won’t be lost.”

the conference. It can backfire that the EU often regulates first. The United States and China let innovation take root, and the regulator only steps in if issues arise.

When it comes to artificial intelligence, Hungarian companies must navigate the high costs associated with AI development and regulatory compliance.

“Companies need a clear vision. They must decide first what they need a solution for, and whether AI is the right tool for that,

AWS Hungary highlighted the importance of cybersecurity training, emphasizing human factors such as susceptibility to phishing attacks. This proactive approach is essential, particularly as cyber threats continue to evolve, targeting individuals across all educational and social backgrounds. Fraud damage grew by four-fold year-on-year from 2022 to 2023 globally. As Csaba Vári, a lawyer at Baker & McKenzie, said, everything has become risk-based.

“Companies will be forced to take cybersecurity seriously by the market, not eventual fines,” he noted. Part of this self-defense strategy also involves understanding the psychology of fraud. Criminals use sophisticated methods that exploit

However, digital literacy is not just about technology but also about creating a work culture where adaptability and continuous learning are paramount. Panelists argued that cultivating these digital skills and a supportive environment can empower employees to thrive as organizations increasingly shift towards skill-based hiring over traditional credential-based approaches. Experts agreed that the most valuable employees are those who can leverage digital tools to their advantage. As AI tools become more prevalent, the need to upskill employees to use AI effectively is rising.

“It won’t be AI that replaces people, but those who use AI will replace those who don’t,” was one conclusion.

cognitive factors. This is where preparation comes into the picture.

“Banks used to emphasize technology; now, they focus on raising awareness among colleagues,” István Ragó, chief security officer at Raiffeisen Bank Hungary, pointed out. The more clients one has, the greater the exposure, though, as organizations need to let them use their own systems. In this regard, the government faces the toughest challenge, having to cover all kinds of social groups. On the other hand, it is an illusion that only vulnerable groups are at risk.

“People with high social status and strong digital literacy get easily overconfident, which often leads to successful fraud attempts,” Turul Balogh, group information security officer at Tresorit, said.

LEVENTE HÖRÖMPÖLI-TÓTH

From left panelists Gábor Strén, enterprise account executive at Amazon Web Services Hungary; Balázs Németh, head of innovation at K&H Group; István Mag, head of Digital Factory at MOL; András Fischer, director of innovation, OTP Bank; and moderator Zoltan Ban, CEO at Net Média (Portfolio Group) nearest camera.

Photo by portfolio.hu.

AutoWallis Expands Czech Footprint with Historic Acquisition

AutoWallis Group’s latest move for the Czech-based Milan Král Group will, should it be approved, mark the largest acquisition in the listed Hungarian firm’s history to date, expanding its footprint in the region’s premium automotive market. It will not only strengthen its existing BMW operations but also diversify its portfolio with new brands like Mercedes-Benz and Ford, alongside entry into the heavy-duty vehicle market.

Factoring in Hungary: A Liquidity Solution and Regulatory Challenge

agreed-upon terms. This structure helps companies to maintain strong client relationships by keeping the factoring arrangement discreet.

Factoring has emerged as an essential financial solution for businesses in Hungary, offering a fast and flexible way to maintain cash flow and bridge liquidity gaps, especially for those with extended payment terms in sectors like agriculture, manufacturing and logistics. However, navigating Hungary’s complex regulatory landscape can pose challenges for companies seeking to use factoring to its fullest potential.

The acquisition will build on AutoWallis’ presence in the Czech Republic, following a deal earlier this year to buy the three

Significant Step

The transaction, valued at nearly HUF 50 billion in annual revenue with a robust EBITDA margin exceeding 6%, will position AutoWallis for continued growth in one of the region’s most lucrative markets. The deal is expected to close by the end of this year, pending regulatory approval and other conditions.

The Milan Král Group operates six companies across five locations and employs more than 200 people. Based in České Budějovice (147 km south of Prague by road), the group manages a diverse portfolio, including the sale and servicing of BMW, Mercedes-Benz, MercedesBenz Trucks, and Ford vehicles. It also handles Opel servicing and sells used autos under its auto.pro.Tebe brand.

The acquisition forms part of AutoWallis’ strategy to diversify and stabilize its revenue streams. The addition of Mercedes-Benz Trucks marks a significant new step into the heavy-duty vehicle segment, with a 3.1 hectare facility for truck sales and servicing already under construction in the Czech Republic.

AutoWallis has been expanding its presence in the Czech Republic, a market where new car registrations in 2023 reached more than 244,000, almost double the Hungarian figure. The group acquired Stratos Auto earlier this year, adding three BMW dealerships in Prague and two other cities. With the Milan Král acquisition, AutoWallis’ BMW retail market share in the Czech Republic is expected to increase from 13% to 20%.

“This acquisition is a significant step in achieving our updated strategic goals,” said Gábor Ormossy, CEO of AutoWallis Group. “By expanding our Czech operations and diversifying into new market segments, we are enhancing our ability to generate stable and sustainable returns for our shareholders. The integration of Milan Král Group will create synergies across our portfolio, further boosting efficiency and profitability.”

Ormossy emphasized the importance of the Czech market to AutoWallis’s growth strategy, particularly in the premium automotive segment.

The acquisition includes a 6% market share

in Mercedes-Benz sales within the Czech Republic, further consolidating AutoWallis’s position as a leader in the regional automotive sector.

The acquisition also reflects AutoWallis’s long-term vision outlined in its updated 2028 strategy. The group aims to more than double its revenue and EBITDA compared to 2023, targeting HUF 750 bln in revenue and HUF 40 bln in EBITDA by 2028. With its strong demand for premium vehicles and higher profit margins, the Czech market will play a crucial role in achieving these targets.

“We are committed to growing our presence in international markets while maintaining our focus on operational excellence,” Ormossy added. “This acquisition is a testament to our ability to execute our strategy effectively, delivering value for both our customers and shareholders.”

With options like silent factoring available to help preserve client relationships and a need for a thorough understanding of local laws, businesses can benefit significantly from a strategic approach. This article explores the advantages of factoring in Hungary, along with critical regulatory considerations, to ensure compliance and stability in companies’ financial operations.

Factoring and other receivables financing options are gaining strong momentum in Hungary, and it’s easy to see why. As a flexible and fast financing solution, factoring enables businesses to manage liquidity effectively, particularly those with extended payment terms of 30, 60 or even 90 days, which is common in the aforementioned sectors. Factoring allows companies to secure revenue in advance while still offering clients favorable payment terms, providing a crucial competitive advantage. Furthermore, many factoring firms take on debt management and legal proceedings for clients, thus reducing administrative burdens and helping businesses run smoothly.

Factoring can be utilized as a onetime solution, but its true benefit lies in long-term partnerships. Regular, ongoing factoring agreements ensure a business’s liquidity remains stable. As a result, companies often engage in long-term contracts with factoring firms to safeguard their financial stability over time.

In factoring, the core transaction involves the assignment of receivables, usually with related securities and rights, to the factoring company. Typically, clients are notified of this arrangement and directed to pay the factoring firm directly. However, when maintaining confidentiality is crucial, “silent” or “undisclosed” factoring is available. In such instances, clients continue to pay the original business, which forwards a portion of these funds to the factor based on the

Hungarian law provides various definitions of factoring, though slight differences exist. The Civil Code defines factoring as an assignment of receivables with recourse, meaning the factor can demand payment from the seller if the client defaults. Conversely, regulations governing credit institutions define factoring as a form of receivables purchase, whether an actual sale or not.

This lack of uniformity can lead to regulatory confusion, creating challenges for factoring firms and businesses trying to comply with Hungary’s financial and regulatory framework. It is essential for companies engaging in factoring to be aware of the regulatory requirements associated with receivables purchases. Failure to comply may expose the company to potential penalties and fines.

The Hungarian regulator has developed particular practices to manage factoring activities, especially silent factoring. Businesses that engage in silent factoring may be required to:

• handle client payments separately and remit these funds to the factoring firm at specific intervals;

• issue written reminders to clients if payment is delayed;

• legally pursue unpaid receivables if clients fail to meet their obligations despite written reminders. In these cases, the regulator interprets the company’s role as that of an intermediary. Since debt collection is indirectly carried out by the factoring firm and instead handled by the business, the latter must comply with intermediary regulations, which some businesses cannot do. Many companies are not even aware of these requirements, which can result in inadvertent non-compliance.

Careful planning and a well-defined factoring agreement can significantly mitigate regulatory risks. By adhering to the guidelines and regulations the regulator sets, businesses can confidently leverage cash flow without risking regulatory violations. www.wolftheiss.com

WOLF THEISS BUDAPEST

WOLF THEISS BUDAPEST

Gergely Szalóki

Noémi Csiki Senior Associate Associate

GERGELY HERPAI

Stratos Auto BMW dealerships in Prague and two other cities.

Lidl Hungary Marks Two Decades

as an FMCG Market Leader

Lidl Hungary marked its 20th anniversary by celebrating some outstanding achievements, including securing the top spot in the Hungarian FMCG sector for the fourth consecutive year. In 2022, the retailer recorded a turnover of HUF 1.151 trillion, solidifying its role as the ninthlargest employer in Hungary, with nearly 10,000 staff.

of Budapest by road), Lidl now operates additional fa-cilities in Hejőkürt (168 km northeast), Szigetszentmiklós and Ecser (on the southern and western borders of the agglomeration, respectively). Together, these four bases provide

200,000 sqm of storage capacity.

Construction of a fifth logistics center, the largest to date at 83,000 sqm, began this year in Kiskunfélegyháza (115 km southeast of the capital), with completion expected by 2026. This new facility is expected to enhance supply chain efficiency and create additional jobs in the Kiskunság region.

it has invested heavily in expanding its operations and forming partnerships that create ripple effects across the Hungarian economy. By collaborating with local suppliers, Lidl helps generate further value and stimulate new business opportunities.

Indeed, local suppliers are integral to Lidl’s operations. The “Lidl for Hungarian Suppliers” program, launched in 2013, has resulted in a 73% increase in local partnerships over the past decade. Today, Lidl collaborates with 487

to support increasing production needs,” explained Zoltán Nepp, procurement director at Lidl Hungary.

Export Champion

The retail chain is also a significant player in Hungarian exports. Currently, 167 Hungarian suppliers export their products to 28 countries through Lidl’s network, with EUR 338.2 million (HUF 135 bln) worth of Hungarian products sold internationally last year. Leading categories include sweet and savory snacks, generating HUF 19 bln, and wines, with 14.3 million bottles, nearly half of all exported Hungarian wines, sold through Lidl.

“One-third of Hungary’s bottled wine exports are facilitated by Lidl,” Nepp emphasized.

As an employer, Lidl has experienced substantial growth. Its initial workforce of 1,200 has grown eightfold, with staff numbers increasing by nearly 30%

in the past five years alone. With close to 10,000 employees, Lidl ranks as Hungary’s ninth-largest employer, accounting for 3.3% of the country’s retail workforce.

Lidl’s impact on employment extends beyond its direct hires. Between 2019 and 2023, the company says it indirectly created an average of 3,156 new jobs annually through its operations, investments, and supply chain activities. This reflects Lidl’s strategic role in supporting Hungary’s labor market and contributing to regional development. Customer numbers have also soared, with Lidl projected to serve 180 million shoppers this year, further cementing its position as Hungary’s top choice for grocery shopping.

This year, Lidl expects to welcome 180 million customers to its stores. At a press conference, the company highlighted two decades of growth, focusing on its contributions to the national economy and its commitment to local suppliers.

Lidl Hungary commemorated its 20th anniversary with a detailed overview of its growth and contributions. The company began operations in Hungary on Nov. 18, 2004, with 12 stores in cities and towns such as Barcs, Kaposvár, and Szeged. By the following year, the store count had grown to 50. In 2022, the retailer opened its 200th store on Budaörsi út in Budapest, and today, it oper-ates 210 locations with more than 261,000 sqm of retail space.

All Lidl-owned stores now meet the Edge green building certification standard of Green Business Certification Inc. (GBCI), which describes itself as the premier organization independently recog-nizing excellence in green business industry performance and practice globally.

The company’s logistics infrastructure has expanded significantly. Starting with one distribution center in Székesfehérvár (64 km southwest

In its first full business year, Lidl achieved HUF 58 billion in revenue, which had increased to HUF 258 bln by 2014 and reached HUF 1.151 tln in 2022.

“For four years running, Lidl has been the leading FMCG retailer in Hungary, with a market share exceeding 20%,” said Zita Szlavikovics, chairwoman of Lidl Hungary’s board of directors, at the press event on Nov. 15.

Boosting GDP

Over the past five years, Lidl has contributed approximately HUF 1.219 tln to Hungary’s GDP, of which HUF 682.3 bln was direct added value, with an additional HUF 537 bln generated through indirect impacts, the firm says. These include purchasing goods from local suppliers and reinvesting wages into the Hungarian economy.

Lidl says it has also paid HUF 765.8 bln in direct taxes, along with HUF 207 bln in additional contributions through employment, supply chains, and investments.

“In 2023, Lidl paid HUF 44 bln in retail taxes, and this figure is expected to increase this year,” Szlavikovics noted.

The company’s economic role extends beyond its direct contributions. Lidl says

Hungarian suppliers, offering more than 4,500 domestic products, a 143% increase compared to 10 years ago.

“Our long-term partnerships enable suppliers to make new investments, meeting the growing demand. These collaborations have led to the establishment of new facilities

Lidl’s commitment to sustainability is reflected in its efforts to achieve Edge certification for all stores it owns. The milestone underscores the company’s focus on environmentally friendly practices and efficient resource use. Looking ahead, Lidl says it plans to expand its operations further and maintain its leadership in Hungary’s FMCG sector.

GERGELY HERPAI

Zita Szlavikovics, chairwoman of the Lidl Hungary board of directors.

Lidl Hungary procurement director Zoltán Nepp.

3 Special Report

Christmas Shopping

Tourism in Hungary at its Highest in Years. Will it Remain in the New Year?

Tourism rates in Hungary are currently the highest they have been in the past four years, and with the Holiday Season upon us once again, the country is hoping to further increase the number of guests it attracts through its annual Christmas markets, other festive attractions and a newly launched tourism campaign.

LUCA ALBERT

General tourism in Hungary has been higher in almost every month of 2024 compared to the statistics from 2023, according to the database of the Hungarian Central Statistical Office (KSH). Between January and September of this year, approximately 14 million guests stayed at domestic accommodation, marking a 10% increase compared to the same period in 2023.

Last year’s holiday season saw nearly 1.1 million guests spending their holiday season in Hungary. Although statistics for accommodation bookings for November 2024 haven’t been released yet, the consistently high rates of tourism thus far are seen as a cause for optimism for the last quarter of the year.

In the meantime, the capital city is once again hosting an array of Christmas markets, smaller gastronomy festivals and other seasonal activities, which are already attracting large crowds from both local and international communities.

The stunning Advent Basilica, taking place at the foot of the monumental Szent István-bazilika, is one of the biggest holiday attractions in the country. The fair has not only returned for its 14th year

but has also broken a record; Advent Basilica has this year been voted “The

Most Beautiful Christmas Market in Europe” for the fourth time, the first holiday fair to achieve this honor.

According to Hungary Today, nearly 375,000 travelers from 179 countries cast their vote, with Advent Basilica at the top of the ranking with 51,253 likes, the most votes ever recorded for a single fair. The award-winning advent market again boasts its own iceskating rink with a tall, decorated Christmas tree in the center and nearly 150 exhibitors showcasing local and foreign culture in booths on either side.

A stunning, colorful light show will also be projected onto the wall of Saint Stephen’s Basilica every evening.

Classic Christmas

The Vörösmarty Classic Xmas market hosted at the nearby Vörösmarty tér is also preparing for a large crowd; the market attracted some 600,000 visitors last year, making it one of the largest, most visited holiday fairs in Europe.

Once again this year, exhibitors await visitors with handcrafted products, festive specialties and delicious Christmas treats. The main attractions of the fair are the 12-meter tall, decorated Christmas tree and the minirailway chugging around the square.

Budapest’s two principal Christmas fairs will host “thematic gastroweekends” throughout the holiday season, with different foods highlighted and served every weekend. Guests can experience local culinary traditions with goose, pork and fish dishes alongside stews and goulash, stuffed cabbage, desserts and a weekend of dishes centered around alcoholic ingredients.

The maximum price for each specialty meal during the thematic weekends is

HUF 2,500.

For good luck in the upcoming year, Advent Basilica will also host a Lentil Day festival on Jan. 1.

Returning for its second year after a positive reception by guests, the Corvin Hütte market will also host a wide array of exhibitors at the Corvin Promenade, centered around holiday gastronomy. Like the culinary concept at Advent Basilica and the Vörösmarty Classic Xmas, the theme of the dishes here will also vary weekly. Visitors can try local dishes and foreign specialties, meals and drinks alike, including vegetarian and vegan options.

The Corvin Hütte opened on Nov. 23 and will run until Dec. 24, while the main Vörösmarty Classic Xmas and Advent Bazilika markets opened on Friday, Nov. 17, and will welcome marketgoers until Jan. 1.

Opening hours vary for all locations, generally opening late in the morning until late at night. The fairs also operate on holidays with reduced hours, and admission is free of charge at every location.

Seasonal Boost

Although statistics from recent years indicate a consistent rise in Hungarian tourism during the holiday season, a significant post-holiday drop in visitors has also been observed. To combat this, Visit Hungary Ltd., a subsidiary of the Hungarian Tourism Agency (MTÜ), has launched its first winter tourism campaign from early January to late February 2025.

The campaign hopes to boost postChristmas travel to Hungary in the winter months, with the agency offering a 20% discount on more than 300 partnering accommodation venues, regardless of the length of the stay.

The Hungarian Conservative cited Olivér Csendes, CEO of Visit Hungary Ltd., saying that the campaign also intends to incentivize Szép card spending among Hungarians, as “cardholders used over HUF 327 bln during the first nine months of the year, approximately HUF 92 bln still remained on these cards by September’s end, partly due to concurrent increases in Szép card top-ups.”

The annual Christmas markets and festive attractions contribute in large measure to the high rates of seasonal tourism in Hungary, with an increasing number of Hungarians choosing to spend their holiday season at domestic accommodation alongside guests from abroad. With the constant development of tourism campaigns and the expansion of Christmas attractions, the country hopes to see a surge in seasonal tourism rates in the coming years.

Editor’s note: The Hungarian Tourism Agency (MTÜ) was contacted on a couple of occasions to provide further background to this story but had not replied by the time we went to print.

Photo by adventbazilika.hu

As part of the Christmas market, Szent István-bazilika becomes the backdrop for a light and sound show every evening.

The Nutcracker: An Elegant Opera House Christmas Present

For decades, seeing the “Nutcracker” ballet at the magnificent Opera House in Budapest has been part of Christmas for countless Hungarian families and even visitors from other countries drawn by the tradition. As ballet master and choreographer Tamás Solymosi tells me, “There’s no Christmas without ‘Nutcracker.’”

together and are joined by the entire corps de ballet in a grand finale.

On Christmas morning, Marie wakes up in her room, unable to tell whether what she experienced was a dream or real.

“Nutcracker” has been in the repertoire of the Opera House for more than half a century. But for Christmas 2015, Solymosi and “Nutcracker” specialist Wayne Eagling developed a choreography fuller of spectacle

I spoke with Solymosi at the Opera House before, as he memorably described it, the “‘Nutcracker’ tsunami” began. In the rehearsal studio across the corridor from his office, as we talked, a ballet dancer practiced alone in a world of her own.

For the uninitiated, the story of Tchaikovsky’s “Nutcracker” begins on Christmas Eve and tells the story of the Stahlbaum family Christmas. After Uncle Drosselmeier puts on a show telling the story of the battle between the Nutcracker and the Mouse King, he gives a nutcracker doll to Marie, one of the smaller children, which her brother Fritz promptly breaks. Drosselmeier mends it.

At midnight, while Marie sleeps with the nutcracker doll beside her, she dreams that the Christmas tree, gifts and furniture grow to an enormous size. A Mouse King leads mice and rats to attack the Stahlbaum house and Christmas tree. Nutcracker comes to life, leads an animated army of toy soldiers in battle against the Mouse King and defeats him and his army.

The Stahlbaum house then transforms into a forest winter wonderland, and Marie and Nutcracker, accompanied by Drosselmeier, take a fantastic journey to the fairytale Land of Snow. Here, Nutcracker becomes a prince and Marie his bride. They enjoy a series of dance divertissements, perform a pas de deux

and action than ever before.

For the “Magyar Nemzet” website review, Eszter Veronika Kiss wrote, “This new choreography by Wayne Eaglin and Tamás Solymosi is not only modern and as brilliant as one would expect, it is also a sort of the homage to the legend.”

Making a Great ‘Nutcracker’

In a glittering career, Solymosi had performed “Nutcracker” hundreds of times. “I’ve danced eight different versions

will perform. I wondered if it was still the case that most little girls want to be a ballerina.

“When I was auditioning for ballet school, there were more than 1,000 boys auditioning, and only 12 got in. There were 2,000 to 3,000 girls. Now it’s maybe only 100 in total. That’s why I founded the Hungarian National Ballet Institute, to encourage more children to consider the ballet,” Solymosi says.

“By now, I’m basically living at the Opera House. Every day, I watch the rehearsals and have new ideas to make the ‘Nutcracker’ shine brighter. I’m the main engine, and I’m very demanding.”

in different countries,” he tells me. “I’ve loved many things about them but not everything. This gave me an idea of what would make a great ‘Nutcracker’ for me.”

After dancing for some of the world’s great ballet companies, including the British Royal Ballet and the Dutch National Ballet, Solymosi took a position as deputy director at the Hungarian Dance Academy in 2006. In 2011, he became acting director of the Hungarian National Ballet. Under his leadership, it has refreshed and enriched its repertoire. He created the Hungarian National Ballet Institute within the Hungarian State Opera in

2016

to train young ballet students. Solymosi was made an Artist of Excellence in Hungary in 2018. Charismatic and charming, he nonetheless clearly has a will of steel.

“By now, I’m basically living at the Opera House. Every day, I watch the rehearsals and have new ideas to make the ‘Nutcracker’ shine brighter. I’m the main engine, and I’m very demanding,” he admits. “My job is to believe in my dancers. I’m sure if I do, they’ll believe in themselves.” It’s not just about the quality of the choreography and dancing, though.

“The sets, the costumes, should be as beautiful as the Opera House itself. That’s when the magic comes. I believe 2024 will be our biggest, best production so far, offering a window into Christmas in Hungary and giving people a beautiful three hours to remember,” Solymosi promises.

Focus on the Rats and Mice

This year’s production includes even more action and a greater focus on the children who play the mice and rats. All 68 kids enrolled at the Hungarian National Ballet Institute

“But, it’s not an easy life, so it’s understandable that fewer children want to enter the ballet and that their parents aren’t keen. It’s a short career. You work hard every day, and there’s a real risk of injury. Ballet dancers need the body of an athlete, but they also need a strong mind to be able to dance and act,” he admits. Solymosi believes his job is to be completely honest with dancers.

“I’m not here to waste people’s time telling them they’re great when they’re not.” But he’s also supportive. “Every year, I have a serious talk with the dancers about their work and make sure they’re aware of their options. I remind them that their career will be over when they’re 40, so they should be studying for their second career now. The Opera House sometimes provides financial assistance to help people study for a second career.”

After I said goodbye to Solymosi, I passed by the rehearsal studio. It was full of little girls preparing to practice. I was reminded of something quite profound, in an artistic sense, that Solymosi had told me.

“We have a responsibility to train our children. What they’ll become is on our shoulders. Ballet is much more than entertainment. It’s part of our culture.”

“Nutcracker” was due to have its 2024 premiere on Nov. 28 and is scheduled to run until Jan. 12. It is such a fixture of the holiday season in Budapest that many of the dates are all but sold out already. However, at the time of writing, tickets were still available for most dates, and it may be possible to get a return. Visit www.opera.hu/en for performance dates and times and ticket sales.

DAVID HOLZER

Tamás Solymosi

First Brunch of the New Year

A Fresh Floral Fragrance That is Uniquely Feminine

Celebrate the start of 2025 in style with a lavish brunch at the Pavilon Restaurant & Bar, nestled in the breathtaking winter garden of Dorothea Hotel. Indulge in a culinary journey featuring an array of main courses, delicacies from the tartare station, cheese and charcuterie boards, a fresh raw bar, an irresistible sweet corner, and more. To make the occasion even more special, enjoy bottomless sparkling wine as you toast a fresh start and a promising year ahead. Surrounded by the timeless elegance of this serene setting in the heart of Budapest, it’s the perfect way to begin 2025 with family and friends.

Stop looking for distractions; focus on your own journey with your unique femininity and inner strength and discover something truly magical! The new Betty Barclay Pure Flower fragrance inspires the wearer to look beyond what others think and to follow their own intuition and passion because life is not a competition! This fresh floral fragrance with pure and creamy notes reflects the diversity of life and reminds us that true beauty can be found in our uniqueness. Confident women who do not constantly compare themselves to other women but follow their heart’s path and blossom uncompromisingly in their uniqueness and beauty are what Betty Barclay Pure Flower stands for.

Available at dm.hu

Christmas Takeaway Menu

This holiday season, let Dorothea Hotel take the stress out of festive preparations with our exclusive Christmas Takeaway Menu, available for pickup from Dec. 21-26. Designed to bring the magic of fine dining into your home, the menu blends traditional Hungarian flavors with international festive classics. Highlights include the indulgent foie-gras confit duck leg, perfectly grilled salmon fillet, and an irresistible selection of delicate macaroons. Whether you’re hosting an intimate gathering or simply treating yourself, Dorothea’s takeaway menu promises a culinary experience that embodies the spirit of the season.

’Tis the Season for Indulgent Showers

Looking for the perfect Christmas gift? As the cold nights draw in and only the best will do, gift this pamper pantry to those who are dearest to you! A luxurious parade of six shower and body products that will nourish the skin and calm the mind. From fragrant fruity shower gels to rich honey-scented  scrubs, this is the perfect gift for those without a tub!

Season’s Greetings gift HUF 22,990 www.lush.com/hu

New Year’s Eve Dinner at ÉS Bisztró

Welcome in the New Year with grace and elegance at ÉS Bisztró and a dinner to remember. Enjoy an exquisite fivecourse culinary journey, accompanied by enchanting live music and a glass of Champagne to set the celebratory mood from the moment you arrive. Tickets cost HUF 58,000 + 15% service charge per person. Children (4-14 years) are half-price; under fours are free of charge. The cover price includes a glass of Piper Heidsieck champagne at ÉS Bisztró and entry to the New Year’s Eve party at Blue Fox The Bar. Dec. 31, 2024, dinner from 7:30 p.m., entertainment from 8 p.m.-1 a.m.

FOREO BEAR™ 2 Xmas Set

If you want to pamper your loved ones with an immediately visible, non-invasive facial lift, this set should be at the top of your gift list. BEAR™ 2 features 4 revolutionary types of microcurrent and is designed to tone the 69 muscles in your face and neck, contouring and lifting the face in just minutes a day. The set also includes SUPERCHARGED™ Serum 2.0 (30 ml), developed specifically for use with FOREO’s microcurrent devices, and SUPERCHARGED™ HA+PGA Triple-Action Intense Moisturizer (15 ml), clinically proven to increase skin moisture by 40% in just 15 minutes. Notino.hu

Ambra di Sicilia Anti-Wrinkle Cream

Discover Vagheggi’s exclusive innovation, the Ambra di Sicilia Anti-Wrinkle Cream, inspired by the unparalleled natural treasures of Sicily. Enriched with the precious “manna” resin from Sicilian ash trees, this unique formula utilizes our advanced hyperfermentation technology to infuse the skin with potent active ingredients. This anti-wrinkle cream, formulated with hyaluronic acid, vitamin E, and shea butter, enhances skin elasticity and hydration while gently reducing the appearance of wrinkles. Scented with warm amber notes, each application evokes the radiant sunlight of Sicily. Dermatologically tested. vagheggi.hu

Retailers Raging Against the Dying of the Black Friday Light

Drowning in dullness was our conclusion about last year’s Black Friday promotion in Hungary. More accurately, the promotion period, as the once one-day shopping spree, broadened to one week and then one month. In 2024, dullness turned into paralysis.

is 2.3 times bigger, the Czech three times larger, and it is even more so in Poland. The last time Hungary had a significant market player was Extreme Digital, which was acquired in 2019 by Romanian competitor eMag.

The trend may look logical now, but it was not entirely predictable. Back in 2022, the year the lockdowns were lifted after the pandemic, everyone was counting on a spectacular rebound in consumption and, consequently, the economy. But what nobody foresaw was the effect of a sustained period of very high inflation.

Prices started rising in spring 2022 and had skyrocketed to 24.5% in Hungary by December, the highest in Europe, and were still high at the end of 2023. In November 2022, online retailer eMag was still able to communicate a record turnover of HUF 10.5 billion following its Black Friday promotion on Nov. 18 of that year.

In a study published in March 2024, market research company NRC noted, “In the second semester of 2022, after COVID, we experienced some effervescence, but inflation ended it.” The nominal value of online purchase basket value grew in 2023 but calculating with the inflation, e-commerce registered a setback in 2023, a historical moment in Hungarian retail, NRC notes.

The plummeting sales hit not only webshops but the entire retail sector in Hungary, so much so that it impacted GDP growth, with the government frantically looking for means to reignite internal consumption. Households, however, had depleted much, if not all, of their savings during the record-high inflation of

2022

and 2023. Those with money left preferred to save it, many in bank accounts and investments abroad.

Apart from stopping all unnecessary spending and saving money, a third factor hit sales in Hungary: the rise of the Chinese webshop. According to NRC, the online purchase penetration was roughly the same ratio in Q1 2023 for EU countries

and China. About 53% of Hungarian online purchases were made via Chinese webshops and 55% from European.

By Q3 2023, these rates had changed dramatically, falling to 48% for EU webshops and rising to 62% for Chinese. There is no reason to think the gap hasn’t widened since then.

Chinese Champion

The change was confirmed by data released in May 2024 by GKid (now PwC). Chinese webshop Temu entered the Hungarian market in September 2023, and by April 2024, it had a Hungarian customer base of 1.28 million, placing 1.5 million orders in Q1 2024. In value, these amounted to 7% of all online spending in Hungary in just one webshop.

“This order volume is just a small part of what goes every day through Budapest to neighboring countries and the EU,” said Norbert Madar, leader of PwC’s digital commerce team.

So, in such a fundamentally changed environment, is there anything local

webshops can do to compete? László Szabó, executive partner at Growww Digital, has an answer.

“A Hungarian e-commerce player has two alternatives in global e-commerce: accept being a marginal player on the local market or, based on already successful strategies, become a regional player. Czech and Polish players have been following this path for years, and we can see that it bears fruit in Hungary, too,” Szabó said.

The list of top online retailers operating in Hungary confirms this strategy. Romanian retailer eMag is first, followed by two Czech companies, alza.hu and kifli.hu. The online shop of German store MediaMarkt is ranked 4th, while Hungarianowned companies appear only 7th and 8th, with Euronics and Aqua, according to GKid/PwC.

The problem with Hungarian expansion is that the market is simply too small. Compared to Hungarian e-commerce, the Romanian e-market

December to the Rescue?

Briefly, this is the complicated context in which retailers had to prepare for Black Friday in 2024. At the time of going to print, Black Friday (rebranded Black Month in many cases) is still ongoing. There is very little sales data, with stores probably waiting for a rebound in December to report better figures.

“A Hungarian e-commerce player has two alternatives in global e-commerce: accept being a marginal player on the local market or, based on already successful strategies, become a regional player. Czech and Polish players have been following this path for years, and we can see that it bears fruit in Hungary, too.”

Market leader eMag now has a policy of not publishing sales data, although the approach was different in past years. The company had previously offered the media access to a page showing real-time sales data on Black Friday and a summary of average spending per customer, basket value and other relevant data. This stopped last year.

The only public figures are revenues, which dropped from HUF 90.6 billion in the business year 2021/22 to HUF 61.2 bln in 2023/24, even in a high inflation environment. Interestingly, the Romanian branch proudly boasted sales of RON 896 million, about

HUF 72 bln,

on its Black Friday promotion this year (Nov. 8), 22% higher compared to Black Friday of 2023.

At the time of writing, the last figure posted by eMag Hungary about Black Friday was at noon on Nov. 15, which recorded spending in the first five hours at HUF 1.4 bln. Given that most of the sales are made between 7 a.m. and noon, the total expenditure on this day was probably not even close to the HUF 10.5 bln made two years ago by eMag.

Presumably, this is why the retailer continued the sale on promoted prices more than a week after Black Friday, albeit differently branded.

Given the above, we can probably expect the Black Friday promotion to be merged into the Christmas sales and the combined figures to be published before Dec. 31 or shortly after to somewhat sweeten what are expected to be very low figures.

BALÁZS BARABÁS

Image by Anton

Vierietin, alexandrexct / Shutterstock.com

Holiday Reads for Your Inner Hungarophile

A long-time reporter on business and life in Hungary, Kester Eddy offers three mini-reviews of books on or associated with the country he has read in the past 12 months. Potential Christmas presents for others, or perhaps even a treat for yourself.

BOB DENT:

‘Budapest 1956 Locations of Drama’ Mention 1956 and the Hungarian Revolution, and for many, it will likely conjure up black-and-white images of enthusiastic young Magyars toting guns, poorly clothed but happy going about their voluntary duties in a common effort to rid their country of a detested, Sovietimposed Communist government and the AVH, its dread security police.

There is often also an underlying narrative of a patriotic David seeking to defeat a cruel, powerful, foreign Goliath. Certainly, that is the framing frequently given by many of today’s politicians, notably the prime minister himself.

Reading Bob Dent’s “Budapest 1956 Locations of Drama” soon shatters any such romantic illusions: the rebel authorities in charge (such as they were) were frequently at odds with their troublesome, quarrelsome “freedom fighters.” Army Colonel Pál Maléter was originally sent to quell the insurgents at the Corvin cinema but later changed sides and would briefly become Defence Minister, and found himself toasted as a heroes’ hero. But he remained distrusted and detested by Gergely Pongrátz, a later leader of the Corvin fighters. As Dent describes, these are just two of the scores of divides with which the history of the uprising is riven.

The British-born author began planning this book at the turn of the millennium as a guide to the places of action for anyone interested in the history of the ’56 Uprising. He imagined a pocket-sized book of 100 pages. It emerged in 2006 to coincide with the 50th anniversary of the conflict at 435 pages and in hardback.

There are many books about ’56, but Dent’s unique approach and determined efforts to verify stories means that, for non-Hungarians and natives alike, this work is a must-read.

One slight complication is that the English version is out of print, but volumes are typically available on eBay and in used-book shops for around HUF 6,000-8,000. ISBN 963 07 8033 X. The revised (2016) Hungarian version entitled “Budapest 1956: A Dráma Színterei” is available from europakiado.hu, price HUF 2,495.

HELEN WOMACK:

‘The Ice Walk’

Declared a “pathological Russophobe” by the Russian authorities just days previously, journalist Helen Womack flew to Budapest in the summer of 2015 out of necessity rather than desire. It was a case of leave or go to jail, courtesy of the FSB (the successor to the Soviet-era KGB).

Upon landing and finding herself in the middle of Hungary’s “migrant crisis,” she immediately got to work and has been here ever since. One of her tasks this year has been to update her memoirs, initially compiled in 2013, of her nearly three-decade stint in Moscow.

“The Ice Walk” is thus a book about Russia. However, given that country’s current influence on world affairs, it is also a timely, indeed profound, primer into understanding the mindset of the average Russian struggling to cope with the collapse of the Soviet Union and survive the subsequent chaos before Vladimir Putin came to power in 2010 determined to “restore order.”

If the culture and customs of Hungary sometimes seem strange to the average Westerner even today, this volume reveals things in Russia are many multiples stranger. Womack wrote the book “for my Mum,” she told the Budapest Business Journal

The logic was simple: if her Mom, who was not a great reader, could understand it, everyone else could too.

This is what sets “The Ice Walk” apart from the scores of otherwise excellent recent histories of Russia that give the facts about when and what happened on the grand scale. Womack instead tells the lives of ordinary Russians, people to whom she had access through her knowledge of the language and marriages to two native husbands, their families and contacts.

Thus, we read how astrophysicist Timur Gagua ended up as a shopkeeper selling pet food and how Nina Veniaminovna, her flat’s once-a-week house cleaner, began arriving in a chauffeur-driven car and vacationing in Sri Lanka. (The answer is Andrei, her son, who became, as Womack terms him, a “minigarch.” Andrei was no crook but needed bodyguards as his business grew profitable for protection against racketeers.)

Sadly, from your reviewer’s perspective, Womack has self-censored one or two of the worst incidents of her time in Russia. Far from a Russophobe, she loves the country and its people too much. But perhaps that makes what she does reveal both more readable and believable.

The Ice Walk, pp 310, second edition, New Generation Publishing, 2024, ISBN 978-1-83563-211-6

ALISON LANGLEY:

‘Budapest Noir: Ilona Gets a Phone’ After a guide and reportage history, here is a volume of fiction. Yet as “Budapest Noir: Ilona Gets a Phone” is based around last century’s historical events in Hungary, it too inevitably involves an inordinately large dose of Soviet-Russian influence on the characters and events. Ilona, the central character, grew up pre-WW2 in an idyllic, aristocratic family, all, naturally, long gone. To describe her as neurotic is an understatement; many would say she is mad. The novel begins in 1991 with Ilona and her fantasies, followed by

fears, as she acquires a telephone. Not a mobile, you understand: a straight landline. Indeed, as impossible as it seems today, securing a phone, even in 1991, was something of an achievement, a hangover from communist-era inefficiency.

We soon learn that Emil, Ilona’s long-estranged son, is due to visit with Melissa, his American wife and their baby daughter. Emil, born in Budapest and a champion swimmer, was a disszidált (dissident) who escaped to the United States a decade or more earlier and had largely cut himself off from his mother.

The plot revolves around the horrendously incompatible aspirations of Ilona vis-á-vis her son and Melissa. Somehow, through twists and shatteringly unhappy turns, they make it through 320 pages to a solution, or at least a strong hint of one. Critically, we learn to appreciate Ilona, as, ultimately, do Emil and Melissa, impossible though that seemed early on.

Starting with the phone, Langley is at her best in revealing the incongruous details of daily life in Hungary in the early ’90s, a time when the country stumbled, often bewildered, into the ways of the Western world. Those who lived through those times will appreciate the reminders, even if some are exaggerated.

This is not a fast novel; as with Ilona, the book needs patience. Indeed, Ilona is sometimes so hung up she seems contrived. Yet Langley insists she is based on a real character encountered when the author lived in Budapest in that period.

And it’s true, the likes of Ilona did exist back then, and perhaps still do. If so, let’s hope they also have their version of Emil and Melissa to help them through.

“Budapest Noir: Ilona Gets a Phone,” by Alison Langley, 320 pp, Dedalus Press 2024, ISBN 978-1-915568-42-7

4 Socialite

The Bookshop-Café Tucked Away in Budapest’s Jewish Quarter

It’s early afternoon, and there are maybe a dozen people variously sipping coffee, reading or hanging out on laptops in the Massolit bookstorecum-cafe. The mood is more akin to a university library than a commercial operation.

the millennium, the move proved to be an expansion too far, and within a year, he invited Pecák to take over the business.

“I don’t think we have lots of different customers, but they come back frequently. We have people who come in every day or other day for coffee, and some come to work. I know people who are writing books or dissertations here.”

The speaker is Judit Pecák, who owns and runs Massolit. It is, she believes, the only bookstore-cafe today dedicated to selling solely new and secondhand English-language books in the Hungarian capital.

Despite opening in 2011, it remains relatively little known, even among long-term foreign residents. (A nonscientific survey sent out to two dozen such expatriates revealed just four in 10 respondents recognized the shop.)

It is just a 10-minute walk from the transport hub of Blaha Lujza tér, but its location, on Nagy Diófa utca, is not a main thoroughfare. It is on the fringes of the Erzsébetváros’ “party district,” but this is only a relatively recent development.

According to Pecák, when it first opened, “There was nothing in this area. It was one of the small streets, and it was difficult to get into,” she says. It certainly had a rocky start. Founded in 2011 by David Miller, an American entrepreneur who had co-launched a similar venture in Krakow soon after the turn of

“I didn’t have anything to do with bookstores. I was working as a Russian and Polish translator and interpreter and also as a teacher of Hungarian as a foreign language. I had just moved back after living in different countries for 10 years, in Poland and Russia and the U.K., [but] because I had nothing to do and we were good friends, I said, OK,” she recalls.

The young translator found herself at the bottom of a steep learning curve.

“It took us three years before we made any money,” she says by way of illustrating the struggle. Nor was she alone: Red Bus and Treehugger Dan’s, her two principal competitors in the city’s second-hand, foreignlanguage book trade, both pulled down their shutters for the last time in that period. Not that Pecák felt any joy in her competitors’ demise.

Bookstore Community

“I was happy that we had a kind of community. When Dan closed, after that, I felt all alone as a used bookstore, and it didn’t feel good,” she says.

As for herself, Pecák was not exactly the epitome of a thrusting, high-flying businesswoman determined to see the bottom line break records each year.

“In the beginning, I didn’t want to own the things. For me, to be a manager, an owner of a place, it took me years

Karen Culver, a retired British manager and recent graduate of the Central European University, is one Massolit aficionado.

Homemade Feeling

“I’ve known it for several years. For me, it took over when TreeHugger Dan’s bookshop was no longer the good place it had been with TreeHugger around. Massolit was a place for CEU students and some faculty to hang out [...]. We have bought books, donated books, and had their good coffee and very nice foods; there’s more of a homemade feeling to their baked stuff than most places,” Culver tells the Budapest Business Journal

Regrettably, Culver rarely visits of late after moving house. “They generally had very cheap and naff books outside. I sort of miss it,” she adds.

As for the books, among the 4,0005,000 in stock is a wide selection of Hungarian literature and history books in English. There is a healthy demand for Eastern European literature, while psychology, history and Jewish studies are also popular.

“The most exciting part for me [is] when we get books that are difficult to find, that our distributors don’t deal with, and I think that is why some of our customers are checking our shelves from time to time: to find these hidden treasures,” she reasons.

Intriguingly, and perhaps contrary to most peoples’ impressions of today’s youth, Pecák has detected a growing book-worm trend among younger customers in her time at Massolit.

“I’ve noticed that the younger generation, young adults in the 17-25 age group, are reading more and more and are interested in classics as well,” she says.

to get used to the fact!” she admits. Yet, through applying her personable business philosophy, the outlet has survived and built a support circle.

“We like working with small businesses, people like me. We have honey from the honey man; we know him, and he has good honey. We have specialty coffees, we get the beans from a farmer in Brazil, and we know his name. And our cakes are from a Hungarian food bank; we buy them so they can support their organization,” she enthuses.

“As a small local business, that’s how you should survive.”

Indeed, building long-term business relationships counts in challenging times when people can support each other if there are payment delays.

“There is a trust. When we had to close in COVID times, our customers were really nice. They kept coming here, buying coffee at the door. They were trying [to support us]. It means, for them, Massolit is important,” she says. Combining books and cafe refreshments has also been crucial as a business model.

“As a [stand-alone] book store, I don’t know if we’d have survived. Some people come for a coffee, get interested in books, and start to read. And if someone comes for a book, they sit and have a coffee. So it’s a good combination. I think that’s how we can survive,” Pecák muses.

But after 12 years as the managing director, how long does she plan to keep going? At the mere mention of a job title, Pecák chuckles.

“Yeah, or whatever. I sign the papers when the tax office comes, [but] I don’t think Massolit is me. Massolit is the people who come and the people who work here. We all, together, create a community in a way. I’m just part of it,” she says.

And for how much longer?

“While I enjoy it,” she retorts. “I’m still happy and surprised that we’re still here. Every year is a plus!”

Massolit: What’s in a Name?

In case you’re stumped about the shop’s name, it was coined by the founder, David Miller. It originates from the Soviet-style abbreviation for the “Moscow Association of Writers” in “The Master and Margarita,” the highly acclaimed novel by Mihail Bulgakov. Miller christened his first shop in Krakow, Poland and his Budapest “subsidiary” with the same name. If you are thinking in English, it also sounds something like “a mass o’ Lit[erature],” which is apt for the operation.

Judit Pecák, who owns and runs Massolit.

Photo by Kester Eddy

AmCham-Marriott Thanksgiving Dinner:

a Night of Celebration and Giving Back to Local Charities

The Thanksgiving Charity Dinner, one of the most cherished annual traditions of the American Chamber of Commerce in Hungary and organized in partnership with the Budapest Marriott Hotel, was held on Nov. 22. The event blended festive celebration with the spirit of giving.

This year’s Thanksgiving event brought together business partners, friends, and families to support two causes: UNICEF Hungary’s “Rajtad áll a jövőd!” (“Generation Unlimited”) program and the Hóangyal Foundation, both dedicated to empowering and supporting students.

Thanks to the generosity of attendees through donations, raffle tickets, and silent auction participation, close to HUF 4 million was raised to support these impactful programs.

The evening also provided an opportunity to celebrate and honor the founding members and most dedicated volunteers of the AmCham

Foundation. Established under the umbrella of AmCham in 1989, the ACF has, over the years, supported children in need of social, mental, or physical assistance, offered transparent and ethical charity services to donor corporations, and promoted corporate social responsibility and volunteerism in Hungary’s business community.

With the foundation closing its operations at the end of this year following a decision by the board of trustees, AmCham took the opportunity to reflect on its remarkable legacy and enduring impact.

To honor the festive spirit, guests indulged in a traditional Thanksgiving dinner featuring classics like turkey,

The

and other

came

with a lively performance by the

enjoyed their own magical experience in the kids’ corner, accompanied by music from the Eszter-lánc Fairytale Band, and there was even a surprise visit from Santa Claus.

pumpkin pie,

seasonal delights.

ballroom

alive

Imre Baross Circus Arts School. Children

Photos by Lázár Todoroff

Budapest Bonfire Tradition Raises HUF

4 mln for Local Charities

XpatLoop.com reports it raised HUF 4 million for local good causes at its annual charity fundraising Bonfire Night party at the Marriott Budapest on Nov. 2.

BBJ

The event has long supported the Hungarian Red Cross and UNICEF Hungary, happy to place them in the spotlight to raise awareness and funds for their work in Hungary. A new charity featured this year was Bátor Tábor, which provides life-changing experiences to seriously ill kids through camps (the name loosely translates as Camp Courageous), hospital and school outreach programs and online activities.

“It was a great pleasure to be at the Bonfire Night event; I could meet and talk to some amazing people,” said

Andrea Szabó, fundraising director for the foundation that runs Bátor Tábor.

“It was so nice to see the willingness of guests to support social causes in Hungary. As a result, I am already in touch with potential new supporters and donors; thanks a lot for everything.”

As XpatLoop.com says in its online event report, a mix of nationalities attended, including diplomats from the British, Canadian, U.S. and other embassies. Live music was provided by Fruzsi and party group Just Show Band, with DJ Tony spinning the discs. The

Eleven Dance Group performed a number of choreographies, with an additional show-stopping drag performance by Valerie Divine. The master of ceremonies was Henry Scullion, with TV celebrity Zsuzsa Demcsák a welcome return guest to help run the evening’s key charity element: the Live Auction.

The Bonfire Night-themed celebration also marks the birthday of expat portal XpatLoop. As usual, plenty of food and drink was available, including offerings from some of Budapest’s leading restaurants and hotels and vintners across the country.

CCCH Celebrates 30th Anniversary With Budapest Lobster Dinner

The annual highlight of the Canadian-Hungarian business community, the Lobster Dinner, reached a remarkable milestone this year, celebrating its 30th anniversary. Held at the InterContinental Budapest, the event provided the backdrop for a night of elegance and festivity. BBJ

Guests indulged in a selection of gourmet dishes, with hundreds of lobsters shipped in fresh from Nova Scotia to Budapest for the event, while a diverse range of exhibitors showcased their innovative products and services.

A portion of the evening’s proceeds was dedicated to a good cause,

with the Canadian Chamber of Commerce in Hungary supporting the KórházSuli Foundation by financing the operation of a hospital study room for the Hospital School organization for an entire year.

“This unforgettable evening would not have been possible without the generous support of our sponsors: special thanks go to them and our exhibitors,” the CCCH told the

Robust Expat Community

“It was a true pleasure to attend this year’s Bonfire Night event and partake in the festivities alongside a robust expat community,” said Juwan Woods of the U.S. Embassy, just one of several guests from the Budapest diplomatic corps in attendance.

“XpatLoop.com brought together an amazing group to support great causes, and I was happy to be a part of it. Congrats to XpatLoop on hitting its 24-year anniversary; here’s to 24 more!” Woods added.

Antónia Mészáros, executive director of UNICEF Hungary, greatly appreciated the support shown at the gala. “Thank you to everyone who participated in the raffle,” she said. “Without such generous donors, we wouldn’t be able to respond so swiftly in emergency crises or sustain our work in the long term.”

She also had some kind words for Stephen Linkfitt, the publisher of XpatLoop.com and the inspiration behind the Bonfire Night and St. George fundraising parties. The partnership between UNICEF and XpatLoop went back 15 years, she said.

“He is one of our most dedicated UNICEF Champions and wholeheartedly supports our mission to help the world’s most vulnerable children. […] UNICEF Hungary is deeply moved and grateful for Stephen’s active involvement in bringing people together to raise charity funds and awareness. As children face ever-growing challenges, we appreciate his loyal support year after year.”

For multiple photo galleries, full coverage on the evening and lists of all the generous sponsors, the report on XpatLoop.com.

Budapest Business Journal . “The CCCH is deeply grateful for their dedication to the Canadian-Hungarian business community and for helping them celebrate this special milestone in style,” the chamber said.

“Once again, the Lobster Dinner demonstrated the CCCH’s commitment to fostering meaningful connections while embracing community responsibility,” it added.

STAFF

XpatLoop’s Stephen Linfitt (far left ), shares the stage with sponsors, VIP guests and charities at the Budapest Bonfire Night party.

Photo by Marcus Schirrmacher.

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 organizing chamber’s website. If you have information for inclusion on this page, send an email in English to Annamária Bálint at annamaria.balint@bbj.hu

LUCIA GALA DINNER

Supported by:

Swedish Chamber of Commerce in Hungary (SCCH)

Hungarian-French Chamber of Commerce and Industry (CCIFH)

Lucia celebrations have always held a significant place within the Swedish community, symbolizing light and hope during the darkest days of the winter. End the year in style with Team Sweden, with Swedish music, delicacies, and excellent company. In addition to networking, the program includes welcome

Swiss-Hungarian Chamber of Commerce (Swisscham)

Registration is now open for Swisscham Hungary’s annual Christmas reception, which will take place in the atmospheric surroundings of the W Hotel Budapest, opposite the Opera House. The reception is a fantastic opportunity to build new relationships and nurture existing ones in a festive yet informal environment. Look back on the year together, laugh and have fun in each other’s company because that’s what Christmas is all about!

• When: Thursday, Dec. 5, from 10-11:30 a.m. • Where: W Hotel Budapest, Andrássy út 25, Budapest 1061 • Fee: Members HUF 34,000 HUF/person (0% VAT); non-members HUF 48,000/person (0% VAT)

remarks by the Ambassador of Sweden and the President of the SCCH, a Lucia choir performance, seated dinner, and an A BBA show.

• When: Monday, Dec. 9, 6-10:30 p.m.

• Where: Crowne Plaza Budapest, Váci út 1-3, Budapest 1066. • Fee: Members HUF 59,000/ person; non-members HUF 75,000/person.

German-Hungarian Chamber of Industry and Commerce (DUIHK)

German companies in Hungary do not have exuberant expectations for business development in the coming 12 months. This was the result of the latest economic survey conducted by the DUIHK.

For three-quarters of companies, a lack of demand is the most frequently cited risk, meaning that optimists and pessimists are roughly equally represented regarding their own business, employment, and investment plans. However, companies are also concerned about labor costs. They have risen by two-thirds in less than five years, and every second company sees this as a business risk.

Even so, the survey also offers some positive results. An (admittedly small) majority rate their competitiveness as better than five years ago. Interestingly, the often-criticized strict sustainability requirements in Germany are apparently helping German companies abroad to achieve a better competitive position.

Of course, the survey is a snapshot in time, and it took place before the U.S. elections and the collapse of the so-called “traffic light coalition” in Germany. Many of the results of the survey are in line with the predictions of other organizations. It is, therefore, to be hoped that the reality may turn out to be somewhat better than the currently very cautious forecasts. The results of the survey in full can be found on ahkungarn.hu

Join the CCIFH for its festive year closing cocktail party in a friendly atmosphere, with quality live music by Latte Maffiato Salon Jazz Band, mulled wine, a buffet of Christmas flavors, stands with Christmas goodies, and a raffle draw (bring your business card to participate). Several new members will be presented as well.

• When: Wednesday, Dec. 11, 6-8 p.m.

• Where: Courtyard by Marriott Budapest City Center, Blaha Lujza terem, József körút 5, Budapest 1088 • Fee: Members HUF 14,900 + VAT; non-members HUF 21,900 + VAT

Netherlands-Hungarian Chamber of Commerce (Dutcham)

Get into the holly-jolly spirit at Dutcham’s annual Christmas Drinks networker. Celebrate the closing of the year in good company with fine bites and warm drinks as you reconnect with fellow members over a cup of mulled wine and winter meals. Please note that this is a partly outside event, so wear warm clothes. Participation fee includes food and beverages consumed from 6-9 p.m.

• When: Thursday, Dec. 19, 6-9 p.m. • Where: The Cult Terrace, Crowne Plaza Budapest, Westend Shopping Mall) • Fee: Members HUF 21,900 + VAT; non-members: HUF 25,900 + VAT

Belgian Business Club in Hungary (Belgabiz)

Belgabiz will hold an “Art & Wine” networking event to celebrate the season. Tasting some highlights of the Tokaj/Tállya region, an art fair showcasing pieces from contemporary Hungarian artists, with some of them attending, tasteful bites and surprises and, most importantly, the sparkling international company of the chamber’s community.

• When: Wednesday, Dec. 4, 6-9 p.m. • Where: TokajArtWine Gallery, Hold u. 21, Budapest 1054

• Fee: members free; non-members HUF 18,000

Photo: Fredrik Larsson

Opening a business doesn’t make you a businessman.