Budapest Business Journal 3301

Year Ahead

The Budapest Business Journal Wish List 2025

It might seem heresy for the BBJ to suggest this, but the world is more than just business, finance, and the economy. So, for the eighth consecutive year, Kester Eddy has gathered an eclectic mix of voices to share their wishes for 2025.  12

Hungary’s Real Estate Players Anticipate Busier 2025

Real estate and related industry professionals are looking to New Year 2025 for an uplift in the investment markets. Meanwhile, players will need to incorporate ESG at all levels of the development and property management cycles.  14

Dipping

a toe into Hungarian Literature

Until New Year’s Day, I’d only dipped the tip of my littlest toe into the bracing waters of Hungarian literature. Inspired by a visit to the Massolit bookshop and recommendations by my wife and some connections with a literary bent, I’ve shortlisted five books to read in 2025. 17

When Two Become One

Last 2024 Rate Decision no Surprise

The National Bank of Hungary left the base rate unchanged in its last interest rate decision of the year. A new era will begin in 2025 with Mihály Varga at the helm. Analysts say the next interest rate cut may not take place until mid-year, but 2025 may be characterized by a moderate interest rate cut overall.  3

Tamás Bányai, CEO of One Hungary, the new name for the combined Vodafone and Digi brands from Jan. 1, launches the rebranded flagship store at Westend Shopping Center.  8

Can Hungary Become a Haven for Future-proof Automotive?

Asian suppliers are leading automotive’s global digitalization efforts, with apparent ripple effects at the expense of European competitors. Amidst the sector’s challenges, could Hungary become a haven of future-proof manufacturing?  11

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

REMEMBERING THE REMARKABLE

As a business publication, we don’t often get involved with carrying obituaries. If you want to read about the life of President Jimmy Carter (remarkable in many ways, especially his early years), there are plenty of publications and online news websites to choose from. But every now and again, someone so influential to the local business community dies, and we have to mark the occasion.

During the Christmas and New Year break, we were saddened to learn of two deaths in particular: Christopher Daniels and Charles Huebner. You can read their fuller obituaries on page 18. They were two very different men, but each was significant in their own way. At first glance, Huebner would seem like the more obvious candidate for us to cover. He was president of the American Chamber of Commerce in Hungary from 1997–1999.

In an organization that has just celebrated its 35th anniversary, those were not exactly pioneering years, but Hungary’s market economy, although established by then, still had plenty of excitement to offer. Posting the news of Huebner’s death on LinkedIn, AmCham described him as “a pillar of our community and a tireless advocate for strengthening Hungarian-American business relations.”

I remember the first time I met him at an event, something to do with strengthening links between academia and the commercial world. He asked if he could say a few words, the summation of which was that perhaps the most important thing teachers could do was instruct their students to say “Good day” when they walked into a room, sit up straight and pay attention. There was an oldworld air about him, and I mean that as a compliment. It is reflected in the comments people gave us: “Decent, honest and reliable,” “generous and kind,” and “a fine

gentleman with great knowledge and an even more humble attitude.” He was also fun to be around and talk to. Christopher Daniels, a man who took on many roles but always had a love of music, is, perhaps, the less obvious candidate for us to cover until you recall his job title at the Budapest Festival Orchestra (BFZ): international development director. He moved to Budapest the same year I arrived here, and while the success of the BFZ would never have been possible without the great talent of its musicians and its founding conductor, Iván Fischer, Daniels played no small part in promoting it and helping it build its international reputation. He was never shy of exploring sponsorship opportunities, but it was always done with such enthusiasm. I have an email from him in 2009 in which he talks about the BFZ playing at the Proms in London, “just about the most exciting music festival in the world, and our orchestra is privileged to have been invited to perform many times over the years. […] The Proms audiences are incredibly enthusiastic and appreciative, and the atmosphere is positively ‘electric.’” Even after all these years, it still positively crackles with excitement. Since we were already committing space to these gentlemen, it would have seemed churlish not also to mention the passing of Ágnes Keleti, Hungary’s most decorated Olympian who truly lived a “life less ordinary.” According to The Associated Press, she survived the Holocaust by hiding her identity and working as a maid. Swedish diplomat Raoul Wallenberg saved her mother and sister, but her father and other relatives died in Auschwitz. Three very different people. All remarkable. All will be missed. Happy New Year.

Robin Marshall Editor-in-chief

THEN & NOW

In the black and white photo from the Fortepan public archive from 1977, a stand selling New Year’s Eve costumes and accessories can be seen at Ferenciek tere in Budapest’s District V. In the color image, taken on Dec. 31, 2024, by state news agency MTI, a similar stand offers festive accessories on Teréz körút, continuing the tradition of celebratory preparations in the capital.

Photo by Fortepan / Fortepan

Photo by Péter Lakatos / MTI

1News

• macroscope

Last 2024 MNB Rate Decision Brings no Surprise

The National Bank of Hungary (MNB) left the base rate unchanged in its last interest rate decision of the year. A new era will begin in 2025 with Mihály Varga at the helm of the MNB. According to analysts, the next interest rate cut may not take place until the middle of this year, but 2025 may be characterized by a moderate interest rate cut overall.

The last interest rate decision of 2024 did not come as a surprise: the MNB did not touch the base rate, which remains at 6.5%. The central bank did not cut it at its previous meeting either, with the last base rate reduction of 25 basis points back in September. The overall picture had not changed significantly since the November interest rate decision meeting.

The decision was in line with analysts’ expectations.

According to Dániel Molnár, senior macroeconomics analyst at Makronóm Intézet, the central bank’s decision did not come as a surprise, as it was expected that monetary conditions would not change at the last meeting of the year, similar to October and November.

“Although inflation accelerated in November, it was still slightly below expectations and within the central bank’s tolerance band. Although the rate of monetary deterioration may have increased further in December due to base effects, we expect a slowdown to occur again from the beginning of the year. For this reason, inflationary processes would have made it possible to ease monetary conditions,” he said.

However, Molnár continued, while the domestic situation created some room for maneuver, the international environment was generally unfavorable, similar to the previous months. The strengthening of the dollar, which occurred as a result of the economic

policies expected from the incoming second Trump administration, created a turbulent financial market situation in emerging markets, which also weakened the forint exchange rate, but the intensification of geopolitical conflicts also had an impact in this direction. It may have been this monetary environment that ultimately prompted the central bank decision-makers to err on the side of caution.

“The central bank also highlighted in its statement that there is significant uncertainty regarding the interest rate and budget paths of the dominant economies, while geopolitical tensions also reduce the willingness to take risks in emerging markets, which in turn necessitates a cautious and patient approach,” he said.

The Fed Factor

In case the forint further weakens in reaction to the rate-cutting policy of the Federal Reserve in the United States, there will be no room for easing domestic interest rates at the beginning of next year.

“However, if the Fed continues to cut interest rates, the domestic base rate may gradually decrease further, according to our expectations, to 5.5% by the end of 2025,” Molnár predicted.

The MNB’s last decision of 2024 also coincided with the expectations of MBH Bank experts. As for this year’s monetary policy, MBH Bank analysts Zoltán Árokszállási

and Márta Balogh-Béki wrote in a joint note that they expect inflation to return to the tolerance band permanently in

2025,

but the issue of the forint exchange rate may still be a source of excitement. One of the MNB’s tools to stabilize the exchange rate may be maintaining the relative interest rate premium.

“We continue to expect that the MNB will be able to resume interest rate cuts sometime during the spring and that the base rate in Hungary may fall below 6% in the second half of 2025,” the pair concluded.

This year will also mark the start of a new era for the MNB. Mihály Varga, who was Minister of Finance in its various guises from March 7, 2013, to Dec. 31, 2024 (it was subsumed into the Ministry for National Economy from Jan. 1, 2025), will take over the reins at the central bank from March, replacing György Matolcsy who has been the governor since 2013.

Stable Exchange Rate

“At his committee hearing at the end of last year, Varga emphasized the importance of a stable and predictable exchange rate; we hope that this will be realized in practice,” says Gábor Regős, head economist at Gránit Alapkezelő.

“At the beginning of his work as the central bank chairman, he must also gain the trust of the market in this position; his every step will be

watched with keen eyes. Accordingly, I would not count on monetary policy easing in the first months of the new chairmanship,” Regős notes.

“The international interest rate environment and the development of Hungarian risk perception will be decisive for the subsequent interest rate path. According to my expectations, inflation will be less of an obstacle to Hungarian interest rate cuts. Accordingly, I expect that another easing will only take place at the end of summer or the beginning of autumn, so that the base rate will decrease to 6%

by the end of the year,” he adds.

The MNB has also published its latest macroeconomic expectations. Economic growth is expected to come in at between 0.3-0.7% for 2024. This is a significant reduction compared to the September forecast but is not surprising given the weak third-quarter economic data. The MNB is forecasting growth of 2.6-3.6% in 2025, which is slightly lower than the previous forecast and 3.5-4.5% for 2026, the same as in the September forecast. Regarding inflation, the central bank expects an average price increase of 3.63.7% for 2024 and forecasts an average price rise of 3.3-4.1% for 2025, which is about 0.5 percentage points higher than previously stated. The upward revision was mainly explained by the depreciation of the forint exchange rate and changes to the excise tax system.

ZSÓFIA CZIFRA

Photo by Lajos Soós / MTI

Then Minister of Finance Mihály Varga (center) arrives for his hearing for the position of governor of the National Bank of Hungary at a meeting of the Parliamentary Economic Committee in the Tisza Kálmán Hall of Parliament, on Dec. 16, 2024. On the right is the committee chair, Erik Bánki.

Skanska Begins Construction of H2Offices Phase II

In a rare Budapest office development that has started without pre-announced lettings, Skanska has undertaken construction of the second 22,000 sqm phase of its H2Offices complex in the Váci Office Corridor. The eight-story building is scheduled to be completed in the first quarter of 2027.

GARY J. MORRELL

The construction of the office project started in 2020 with the development of the first building of what is planned as a three-phase complex.

“The Budapest market is important to us at Skanska, and I am very proud of adding another relevant milestone

Real Estate Matters

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

to the city’s office investments skyline,” says Aurelia Luca, executive vice president of operations for Hungary and Romania at Skanska commercial development business unit.

“Building on the success and recognition that H2Offices has already achieved, we are excited to continue our ambitious journey with the next phase. With this one, we take sustainability, technology and innovation to the next level, aiming to have the firstever fully carbon-neutral in operations office building in Hungary,” she adds.

Designed by Arrow Architects from Denmark, the development will offer

a mix of future-focused, sustainable and innovative solutions and a landscaped design that will be connected conceptually with the plot’s heritage as the former headquarters of the Budapest Waterworks.

Decreased Carbon Journey

“With the second building of H2Offices, we continue our journey to constantly decrease our carbon footprint and support our tenants in achieving their real-estate ESG objectives,” notes András Ábrahám, project director at Skanska commercial development business unit.

“We will use low-carbon construction materials such as concrete, steel, and

Gránit Asset Management Acquires Exchange Palace

Gránit Asset Management has successfully closed the acquisition of the iconic Exchange Palace building in the historic center of Pest. A private equity fund managed by Gránit Asset Management, the company owning the Exchange Palace building, represented by Andrea Suriano (senior manager of Futura Investment Management and Futura Funds SICAVKappa Fund), and the Canadian investor Michael Tippin, founder of Tippin Corporation, successfully closed the transaction at the turn of the year.

Gránit says it intends to redevelop the Exchange Palace for a “function

and purpose which highlights its iconic architectural status while preserving its historic characteristics.”

Tippin held the building for several years, intending to create a high-end office complex combined with streetfront restaurants and cafes. However, converting the historic building into a modern, sustainable space proved difficult and protracted, as can often be the case with the redevelopment of classic listed buildings in Budapest.

“I am confident Gránit will design and develop this truly extraordinary building to its fullest potential. Since 2006,

Tippin Corporation, together with Futura Funds (from 2013), have been proud custodians of this famous Hungarian landmark,” the investor noted.

Álmos Mikesy, CEO and chairman of the board of Gránit Asset Management, speaks on behalf of the buyer. “We always kept an eye on Exchange Palace, waiting for the right time when we could quickly move and acquire this historic building in this excellent location,” he says.

“For us, this is just the first step, and, in fact, the real journey is yet to come with creating a completely new design for Exchange Palace and executing its full restoration,” Mikesy adds.

The palace (known as Tőzsdepalota in Hungarian) is a Beaux-Arts building, completed in 1905 to a design by Ignác Alpár, and with a total floor area of about 50,000 sqm. From its completion, it served as the home of the Budapest Stock and Commodities Exchange until World War II. Following the war, it became the headquarters of the Hungarian State Television until 2009. It is a listed historical monument under the protection of the National Heritage Authority.

Gránit was advised in the deal by DLA Piper and Sentient. CMS Cameron McKenna, CBB law, CBRE and Cushman & Wakefield represented the sellers.

glass structures. At the same time, we are assuring carbon neutrality during operation by four season heat pumps, secured by on-site energy production with the help of the photovoltaic panels installed on the roof, and will purchase 100% electricity from renewable sources,” he says.

The second building is planned to be Leed “Platinum,” Well “Platinum,” and Access4you “Gold” certified. On top of these, Skanska also aims to meet WiredScore and Smart Score criteria.

“Skanska remains committed to the long-term vision of the H2Offices development, including the potential for a third phase. While this is a natural part of our plans, we are focused now on delivering the second phase and ensuring its success,” concludes Luca.

The developer has been operating in Hungary for more than 37 years and has developed more than 250,000 sqm of commercial space.

DVM Starts Construction of Latest Residential Project

The DVM group is undertaking the construction of its latest residential development in Újbuda in District XI, providing 141 smart homes with close to zero utility costs. Andor Liget will comprise six green-roofed, five-story buildings surrounding a 3,000 sqm inner park and community playground.

The ground-floor apartments include private gardens, while upper-floor flats will have balconies or terraces. Underground parking, electric vehicle charging stations and bicycle storage will also be provided. The “A++” energy-rated, nearly zeroenergy apartments will result in minimal utility costs. Currently, less than 0.5% of certified properties in Hungary meet this standard, according to DVM.

“When designing Andor Liget, we envisioned a residential park that offers both the proximity of nature and all the advantages of urban life in one of Újbuda’s most popular suburban green areas,” comments Tibor Massányi, managing partner at DVM group.

“Taking market expectations into account, we also designed the apartment mix to provide not only a unique lifestyle but also an excellent investment opportunity. As a result, one- and two-bedroom properties are also available, offering reliable rental potential and predictable returns due to their size and features,” he adds.

The Hungarian DVM group has been operating for almost 30 years in the comprehensive design, development, and construction of office, commercial, industrial, and residential properties. With the Andor Liget project, the group is responsible for the entire development process, from planning and construction to sales and customer service.

Artist’s rendering of what the restored Exchange Palace might look like, seen at the junction of Zoltán utca and Nádor utca.

Artist’s rendering of the H2Offices development by Skanska.

End of Ukraine Gas Route Leaves Some Struggling Roundup Crisis Ukraine

Minister of Foreign Affairs and Trade Péter Szijjártó has placed responsibility for the recent spike in European gas prices on Ukraine, citing its decision to halt the transit of Russian natural gas through its territory as further encumbering Central Europe’s already beleaguered competitiveness.

Despite the ongoing war, Russian gas had continued to flow through Ukraine as part of a deal from 2019. However, that agreement only ran to the end of 2024. As expiration approached last year, Ukraine declined to renew the arrangement (it had signaled this would be the case a year earlier), saying it would no longer continue to finance Russia’s aggression against it.

Although supplies officially halted on Jan. 1, Szijjártó said that since the decision was finalized in mid-December, the price of natural gas on the European market had increased by 20%.

“While Ukraine is trying to join the EU as a candidate country, it has once again put the European economy in a more difficult position with its latest decision,” Szijjártó said.

He argued that Hungary’s neighbor should honor the “Association Agreement between the EU and Ukraine, which also provides for the maintenance of energy transport routes.” Instead, Ukrainian President Volodymyr Zelensky celebrated the pipeline closure on Jan. 1, framing it as a significant blow to Russia’s energy dominance.

years ago,

in December. Hungary and Ukraine have submitted a EUR 1 billion joint border and road development package to Brussels. The joint Hungarian-Ukrainian plan will include the construction of two motorway links and a new freight crossing point between the two countries, as well as related road improvements on both sides of the border.

its territory to Austria and the Czech Republic. Now, with flows redirected, Slovakia has not only lost this revenue but has also become more dependent on Hungary for its gas needs.

below the late 2024 peak of around 100 GWh, the absence of exports to Austria and the Czech Republic indicated that the total remained within Slovakia.

the annual gas pumping through the territory of Ukraine to Europe amounted to 130+ billion cubic meters,” Zelensky said. “Today, the transit of Russian gas is zero. This is one of Moscow’s biggest defeats.” He described it as a step toward ending the Kremlin’s energy blackmail while advocating for alternative energy partnerships, particularly with the United States.

Zelensky noted that many European countries had already divested from Russian resources, but those still dependent have been left scrambling to make up the shortfall. While Szijjártó acknowledged that Hungary would be affected by the price changes, he maintained that efforts to diversify its natural gas supply meant the country’s energy supply was secure.

Significant Losses

Slovakia, on the other hand, has become one of the most affected nations, as it also grapples with a significant loss of revenue; prior to the shutdown, Slovakia had benefited from transit fees from Russian gas traveling through

“Russian natural gas supplies to Europe via Ukraine have stopped, which has tripled the value of the Hungarian gas system.”

Gas deliveries from Gazprom intended for Slovakia’s domestic use, under a long-term contract with the country’s primary supplier SPP, which supplies roughly two-thirds of the Slovak market, also ceased following the termination of the Ukraine transit route.

Data from Slovak gas transmission operator Eustream showed daily gas flows from Hungary to Slovakia reached

gigawatt hours (GWh) on Jan. 6, the highest level since the beginning of the year. While still

SPP stated that the Hungarian route, which transports gas from Russia via the TurkStream pipeline, has become a crucial alternative following the halt of flows through Ukraine. According to one active gas trader, Hungary may actually benefit from the situation.

“Russian natural gas supplies to Europe via Ukraine have stopped, which has tripled the value of the Hungarian gas system,” a market source told Index. Szijjártó did not hesitate to highlight the establishment of this safeguard.

“I remember well the discussions years ago about whether to build the Turkish Stream gas pipeline,” Szijjártó recalled. “And I also remember well the threats that came from our allies, just as I remember well how they tried to ‘friendly’ dissuade us from this investment. If we had not been able to resist the ‘friendly’ pressure then, we would now be in a very, very difficult situation as a landlocked country,” he added.

“When Putin was given power in Russia more than

NICHOLAS PONGRATZ

Photo by KKM / MTI

In this picture released by the Ministry of Foreign Affairs and Trade (KKM), Deputy Minister Levente Magyar (right) speaks next to Serhiy Derkach, Ukrainian Deputy Minister for Infrastructure, at a press conference at the Luzsánka-Beregsurany border post in Astély, Transcarpathia,

in Brief News

Gov’t ‘Protecting’ Utility Price Caps After 20% Rise in Gas Prices

The government is “protecting” utility price reductions even after the 20% rise in gas prices in Europe on the back of Ukraine’s decision to cease gas deliveries from Russia, Minister of Foreign Affairs and Trade Péter Szijjártó said in a post on his Facebook page on Jan. 7. “By now even the most fanatic Brusselites don’t contest that the European Union’s competitiveness had deteriorated sharply,” Szijjártó said. He added that gas prices, which are now higher in Europe than in most competing countries, are one of the main reasons for this. “At the same time, European natural gas prices have increased mostly due to measures that deliberately cut the amount of gas delivered, such as sanctions or other political steps to cut out certain resources or the

closing of certain delivery routes,” he said. “Europeans are clearly the ones most harmed by those measures.”

Report Reveals Hungarians Least Well-off in EU

Household wealth in Luxembourg was 36% higher than the EU average, while Hungary and Bulgaria ranked lowest at 30% below the average, according to Euronews Business. Croatia, Estonia, Latvia, and Slovakia also ranked poorly, just ahead of Hungary and Bulgaria. At the top end of the table, Luxembourg is followed by Germany, the Netherlands, and Sweden, where real individual consumption per capita exceeded the EU average. In contrast, Central and Eastern European nations generally reported lower consumption figures. Türkiye outperformed nine EU countries in material well-being, underscoring disparities between Western, Nordic, and Eastern European regions.

Number of Battery EVs in Hungary Over 70,000

The number of battery electric vehicles in Hungary climbed over 70,000 last year, the Ministry of Energy Affairs said in a post on its Facebook page on Jan. 6. Close to 22,000 BEVs were registered in Hungary in 2024, including more than 20,000 passenger cars, the ministry said. Hungary’s government has earmarked HUF 60 billion for programs promoting electromobility, including incentives for BEV purchases and expanding the charging infrastructure.

Hungary Reopening Embassy in Damascus

Hungary is reopening its embassy in Damascus, as armed conflict has abated and the security situation has stabilized in Syria, Minister of Foreign Affairs and Trade Péter Szijjártó said on Facebook on Jan. 6. The Hungarian presence in the country will facilitate gaining firsthand, credible information about local developments and an opportunity to represent Hungary’s political

Source:

PPI Prices up 7.9% y.o.y. in November

Factory gate prices in Hungary rose 7.9% year-on-year in November, data released by the Central Statistical Office (KSH) on Jan. 7 shows. KSH said the Producer Price Index rose mainly because of the weakening of the forint against the euro and an increase in global energy prices. Prices for domestic sales

Producer Price Index for Industry in Hungary 2002-January-November 2024; same period of previous year equal to 100

increased 3.2%, while export prices climbed 10.2%. Domestic prices in the manufacturing sector, which have a 60% weight in the PPI, rose by 4.2% year-on-year. Domestic energy prices, which account for 38.6% of PPI, edged up 0.5%. Export prices of the manufacturing sector, which have an 82.9% weight in

stance, as well as the interests of Hungarian citizens whenever necessary, Szijjártó noted. The foreign minister said Hungary had a vested interest in the stability and peace of the Middle East and paid special attention to Christian communities living in the region to which it continued to provide humanitarian aid. “We continue to raise our voice firmly for respecting the rights of Christian communities,” he said.

HUF 2.11 tln

Deficit Q1-Q3

Hungary’s government sector had a HUF 2.11 trillion deficit in Q1-Q3, equivalent to 3.5% of GDP, according to preliminary data released by the Central Statistical Office (KSH) on Jan. 3. Government sector revenue rose 8% to HUF 25.205 tln, while expenditures increased by 4% to HUF 27.315 tln. Revenue from social insurance contributions climbed 13.8% to HUF 6.189 tln, and revenue from taxes on production and imports increased by 6.3% to HUF 10.262 tln. On the expenditure side, investment spending fell 10.3% to HUF 1.865 tln, but interest expenditures climbed by 11% to HUF 2.898 tln. In the third quarter alone, the government sector deficit reached HUF 621 bln, equivalent to 3% of GDP.

Unemployment Rate at 4.5% in November

The jobless rate in Hungary for people between the ages of 15 and 74 stood at 4.5% in November, according to data released by the Central Statistical Office (KSH) on Jan. 3. In absolute terms, there were 221,000 unemployed. The number of employed reached 4.679 million in November, down 32,000 from 12 months earlier. For SeptemberNovember, the average number of employed slipped 36,000 to 4.691 million. The number of people employed on the primary market fell by 39,000 to 4.517 million. The number of Hungarians working abroad changed little at 111,000, and the number of people in fostered (public) work programs was flat at 63,000. The employment rate for the 15-64 age group edged down 0.3 pp to 75.1%.

EUR 742 mln Trade Surplus in November

the PPI, rose 6.8%, while energy export prices, with a 16.7% weight, climbed 22.3%. In a month-onmonth comparison, factory gate prices rose 4.3% as prices for domestic sales climbed 3% and export prices increased 4.9%. In January-November, factory gate prices inched up 0.3% year-on-year as prices for domestic sales dropped 2.1% and export prices rose 1.5%.

Hungary had a EUR 742 million trade surplus in November, according to a first reading of data released by the Central Statistical Office (KSH) on Friday. Exports fell 3.5% year-on-year to EUR 12.582 billion. Imports rose 2.3% to EUR 11.841 bln. Trade with other European Union member states accounted for 76% of Hungary’s exports and 72% of its imports during the month. For January-November, Hungary had a trade surplus of EUR 11.11 bln. Exports fell by 3.9% to EUR 133.924 bln, and imports declined by 5.5% to EUR 122.813 bln.

U.S. Slaps Sanctions on Gov’t Minister Rogán on Corruption Allegations

The United States has announced sanctions on Antal Rogán, Minister for the Prime Minister’s Cabinet Office, for what outgoing U.S. Ambassador David Pressman said was Rogán’s “leading role in systemic public corruption in Hungary.”

but the responsibility of the Hungarian judiciary,m” Magyar wrote in a Facebook post. Repeating his call for the resignation of the entire government, he added: “In recent years we have seen unprecedented bad governance and serious destruction in our country.”

Reading from a prepared statement at a short press conference early on Tuesday evening, Jan. 7, Pressman said that in his various positions of authority “Minister Rogán has enriched himself and those loyal to his political party. He has used his official power for personal gain, depriving his country and its citizens of needed financial resources, while weakening institutions vital to a strong democracy.”

Moreover, the ambassador then went further, enlarging the accusation to envelop a broader, if unnamed, group of the ruling elite.

“For too long, senior government officials in Hungary have used positions of power to enrich themselves and their families, moving significant funds from the public purse into private pockets. It is no accident that when one peruses the list of Hungary’s richest, hovering near the top are the family and friends of the leaders of Hungary’s government. Those closely connected to the ruling political party have acquired massive empires of holdings.

Antal Rogán is a primary architect, implementer, and beneficiary of this system of corruption,” Pressman stated.

The sanctions, officially imposed by the U.S. Department of the Treasury, mean access to any property or assets owned by Rogán in the United States are blocked and the minister is also under a travel ban to U.S. territories.

In addition, “financial institutions and other persons” undertaking business or financial transactions with Rogán may potentially suffer from U.S. legal action, according to a treasury press release.

Unprecedented Move

The measure was described as “unprecedented” against a minister of a government of a member state of the European Union and NATO, an embassy spokesperson told the  Budapest Business Journal

Markets Unmoved

The financial markets appeared unshaken by the sanctions news, the Hungarian forint moving in a narrow band around HUF 415.50 to the euro before and after the announcement, according to the foreign exchange website XE.

“The market expects Trump to reverse it [the sanctions decision]. It has been a long time coming, too long in fact, but I expect the [incoming] administration to reverse it,” Péter Róna, the Hungarian economist and Oxford University emeritus professor said in response to questions from the BBJ

U.S. Ambassador David Pressman announces the sanctioning of Minister Antal Rogán at what is likely to be one of the diplomat’s last press conferences at the U.S. Embassy on Jan. 7, 2025.

In a swift response on Facebook, Hungarian Minister if Foreign Affairs and Trade Péter Szijjártó hit back, denouncing the U.S. move as the “personal revenge” of what he framed as an unsuccessful U.S. ambassador sent to Hungary by a “failed administration.”

“It’s good that in a few days the United States will be led by people who view our country as friends, and not enemies,” Szijjártó declared.

Gergely Gulyás, Head of the Prime Minister’s Office, dismissed the sanctions as the outgoing Democratic administration’s “petty and baseless revenge.”

Péter Magyar, leader of the opposition Tisza Party, argued in his response that it should be the domestic justice system doing the sanctioning.

“The prompt prosecution of Antal Rogán is not the task of foreign powers,

“In reality it is a fairly meaningless gesture coming as it does 12 days before the end of the Biden administration,” added Róna, who was the nominee of the United for Hungary political alliance in the 2022 Hungarian presidential election and led the rightist Jobbik party’s list in the 2024 European Parliamentary election. Indeed, for any chance of making the sanctions effective longterm, Róna argued that the Biden administration should release all the evidence on which its decision is based, but that would probably risk compromising sources.

Róna, who played a significant role in establishing Hungarian-U.S. relations in the early years of Hungary’s transition (including assisting then Prime Minister József Antall’s official visit to the States in October 1990) brushed off any concerns about the sanctions affecting U.S. investor sentiment.

“There isn’t much of an investment case for Hungary [today]. There is little growth, no surplus labor, a small domestic market and bad relations with other European Union countries and unpredictable economic policies,” he noted.

Pressman: Sanctions in Accord with Shared Interests of Hungarian, American People

As has been his wont in public statements critical of the Hungarian government, U.S. Ambassador David Pressman made a specific effort to differentiate between the administration of Prime Minister Viktor Orbán and the Hungarian people in his Tuesday press conference.

Stressing that the sanctions decision on Minister Rogán was “a moment that the United States hoped we would never reach,” and that America “takes no pride in having to resort to actions like this with an ally,” he declared the action had been taken “with our shared interests foremost in our mind.”

Pressman insisted: “The American and Hungarian people have an

enduring connection, one that we cherish and one that we will protect. Today’s actions are a reflection of, not a departure from, our longstanding commitment to this extraordinary country and our enduring relationship with its people.”

The ambassador, who, as a political appointee, is set to leave his post immediately the Trump administration comes into office on Jan. 20, also sought to deflect what he believed would be the government’s response through its media organs.

“It is well known that Antal Rogán also plays a central role in controlling Hungary’s media ecosystem, so I can imagine what he will direct the newspapers to write tomorrow,” Pressman said.

However, while what he termed “Minister Rogán’s media megaphones” would likely seek to make the sanctions a story about partisan politics or an affront to national sovereignty, the U.S. move is “actually the reverse,” he argued. “It is not the United States that threatens Hungary’s sovereignty, but rather the kleptocratic ecosystem Minister Rogán has helped to build and direct and that he has benefited from personally,” the ambassador underlined.

It appears from an initial scan of domestic media stories from outlets close to the government that the Hungarian people are unlikely to be exposed to these finer points within the ambassador’s address.

Photo by Zsolt Szigetváry / MTI

2 Business

Vodafone, Digi Rebranded as One Hungary, Westend Store Renewed

One Hungary, part of the listed 4iG group and the new name for its Vodafone, Digi, Antenna Hungária and Invitech brands, has opened its renewed flagship reference store in the Westend Shopping Center in Budapest.

From Jan. 1, 2025, Vodafone Hungary and Digi have been merged into the One Magyarország Zrt. brand, while the business and enterprise services of Vodafone, Antenna Hungária and Invitech will be marketed under the One Solutions sub-brand.

The telecoms company is now present in 98 municipalities across the country with 135 stores, following the merger of the former Vodafone and Digi shops. They will be rebranded by the end of January and gradually renewed over the course of the year. One Hungary claims they represent an entirely new concept not only in terms of image but also in customer service.

“With the introduction of the One brand, we want to offer our customers the best possible service

tailored to their individual needs,” said Tamás Bányai, CEO of One Hungary, at the Westend store opening ceremony.

“Our aim is to be the first choice among Hungarian telecom operators for residential and, of course, business subscribers. This is the goal that guided us when we created the new concept for our business network and […] our new home services portfolio. We want to provide the best quality and most affordable services available on the market from a single source,” he added.

The One stores are designed around a concept focusing on the customer experience from the first moment, including fast and efficient professional assistance.

two million households. Customers will have download speeds of up to 1,000

Mbps

with the Home GigaNet tariff package and WiFi6-enabled devices for up to HUF 7,490 per month.

One offers innovations in television and combined television packages, including fixed internet service. Customers can choose from two basic TV packages but can personalize different versions of the packages with streaming content.

Customers can watch 114 linear channels for HUF 8,490 per month in the TV Family offer. The package also includes a program replay function, allowing customers to replay selected programs for up to seven days, and subscribers can record and store programs for up to 90 days at no extra charge.

Unlimited RTL Access

The TV Family package also offers unlimited access to the Premium package of the RTL+ streaming platform. This makes One the only telecom operator in Hungary to provide the complete RTL+ Premium package at no extra charge, the company claims. Customers can now access UEFA soccer matches, including Champions League, Europa League and Conference League games, as well as RTL’s exclusive in-house content, international films and series at no extra cost.

“We broke away from the traditional telecoms store design, instead working with international experts KVB Design of London, Room Design Studio and the 4iG team to create a space concept that is characterized by simplicity, clarity and transparency,” said Richárd Csáki, deputy CEO of One Hungary, Sales and Commercial.

Service Focus

“We have created three zones, each with a different service focus, to serve our clients as conveniently, quickly and efficiently as possible, following our philosophy of ‘supportive expertise.’ It is of utmost importance to us that our customers feel comfortable […] and receive all the support they need to find the best solution for them.”

The visual design of the new store space “aims for simplicity, naturalness, clarity and transparency, while all elements are designed to enhance the customer experience,” One says. Customers can try out and learn about the latest devices, grouped by manufacturer and their accessories, while getting expert help and simple and quick solutions in-store.

One Hungary has also unveiled its new home services portfolio and residential tariffs, which combine the benefits of the former Vodafone and Digi services. The highlight of the home services is Gigabit speed internet. As a result of continuous network upgrades, the operator says it will soon be able to make its Gigabit speed network available to more than

Customers receiving TV and fixed internet services from One will be given an extra discount. For example, they can get the Home Giganet 1,000 and TV Family package offer for HUF 11,490 per month, which can be reduced to HUF 9,192 per month with a discount from the operator. While customers will find some packages under a different name, One says the content and tariffs will be the same as the previous Vodafone and Digi tariff packages. The operator has, however, prepared an offer for existing customers: subscribers with a Vodafone or Digi fixed line service can now choose a mobile subscription with unlimited data and calls on the landline for just HUF 9,990, which it claims is one of the best unlimited offers on the market today.

The operator also has something new in store for its top-up card customers. Also launched on Jan. 1, the new Tuti Top-up card service is available to new customers with a starting SIM card package of

HUF 1,500 and offers flexible, simple solutions with no extra charges.

The starter package includes 3 GB of mobile data and 10 minutes of talk time (both of which can be used within 30 days) at what One says is “ an exceptionally low price” of HUF 19 per minute. The operator also offers customers 60 minutes of talk time every Monday at no extra charge and 100 MB of usable mobile data per month.

Customers can choose between data and voice options according to their personal preferences, and their SIM card remains valid for one year without recharging. Top-up cards are delivered free of charge by courier to the address of the customer, allowing them to complete the transaction fully online.

BBJ STAFF

Tamás Bányai, CEO of One Hungary, at the launch.

The renewed One flagship store at Westend Shopping Center.

News Company

EIT Opens Innovation Community Hub in Hungary

The European Institute of Innovation and Technology (EIT) has opened a community hub for innovation in Budapest, the organization said in a press release on Jan. 7. The EIT Community Regional Innovation Scheme (RIS) Hub is part of a European network that extends to nearly 20 countries. EIT said its hubs serve as a one-stop shop for local stakeholders in the countries in which they are established. Their primary mission is to ease access to knowledge and innovation support and identify synergies between the EIT Community and local actors. They strengthen local entrepreneurship and build bridges between local and EU innovation networks. EIT was established in 2008 and is part of Horizon Europe, the EU’s framework program for research and innovation.

Energy Investment SE Releases HUF 1 bln of EU-Solar Dividend Claim

EU-Solar Trading and Services SE announced that its sole shareholder, Energy Investment SE, has released HUF 1 billion of its HUF 1.8 bln dividend claim against the company, according to an announcement on the website of the Budapest Stock Exchange. Based on a shareholder resolution from May 31, 2024, this decision provides significant financial relief for EU-Solar. The move allows the company to retain funds that would have been distributed as dividends, enhancing liquidity and operational flexibility. The retained amount can now be used to strengthen financial stability, reinvest in renewable energy projects, or fund strategic growth initiatives. This action highlights the shareholder’s commitment to supporting EU-Solar’s long-term objectives and demonstrates a collaborative approach to ensuring the company’s continued success.

MÁV Ranks 16th out of 27 European Rail Companies

The latest European Federation for Transport and Environment (T&E) analysis assessed 27 European rail companies on eight service criteria, including ticket prices, reliability and on-board facilities. While Italy’s Trenitalia S.p.A., at the top of the overall list, scored 7.6 points out of a possible 10, Hungarian State Railways (MÁV Zrt.) is in 16th place with 5.9 points. The worst performer was Eurostar, which received 4.7 points. The study highlights that high ticket prices do not necessarily mean a high-quality service, T&E says. For example, Eurostar, which charges the steepest fares, is ranked lowest overall

because of significant shortcomings in reliability. In contrast, operators such as Trenitalia and Switzerland’s SBB, which offer more competitive prices, achieve higher rankings. In unrelated news, MÁV Group has called tenders for 131 diesel buses and a single hydrogen-fueled bus, the state-owned transportation company said on Jan. 6. The cost of the diesel buses is estimated to be close to HUF 10.5 billion. MÁV Group will pay for the hydrogen-fueled bus with HUF 267 million from the Humda Hungarian Motorsport and Green Mobility Development Agency and the Ministry of Energy Affairs. Between 2018 and 2023, the MÁV Group (comprising the Hungarian State Railways (MÁV), Volánbusz, and the HÉV suburban overland railway) took delivery of 2,500 buses, reducing the average age of its 5,800-vehicle fleet to ten years.

OXO Completes Relocation to the Netherlands

OXO Technologies Holding N.V. has announced the completion of its legal relocation to the Netherlands, effective Jan. 1, 2025, following a cross-border transformation completed on Dec.31, 2024, according to an announcement on the website of the Budapest Stock Exchange. The company will now operate as a Dutch-registered entity. This transition necessitated a share exchange scheduled in coordination with Kelleter Ltd. and the Budapest Stock Exchange. Shares will be converted on a 1:1 basis to new shares with a EUR 2 nominal value and a new ISIN identifier. The exchange will occur automatically, requiring no action from shareholders.

Vitafort, MATE Awarded HUF 611 mln From National R&D Fund

Hungarian feed company Vitafort and the Hungarian University of Agriculture and Life Sciences (MATE) have been awarded HUF 611 million from the National Research, Development and Innovation Fund to develop a sustainable feed system that improves output and animal welfare, Vitafort said. The cost of the two-year project is HUF 882 mln. Vitafort had a net sales revenue of HUF 16.9 billion in 2023, according to public records.

4iG Creates Executive Position for Space, Defense Business

Listed ICT company 4iG on Jan. 2 announced the creation of an executive position to oversee the company’s space and defense businesses, according to an announcement published on the website of the Budapest Stock Exchange.

István Sárhegyi, who currently heads 4iG Space and Defense Technology, 4iG’s unit for the development and production of space, satellite and UAV technologies, as well as drone defense and defense digitalization services, has been appointed deputy CEO for space and defense technologies.

Suzuki Retains Leading Auto Position in 2024

Suzuki retained its leading position in Hungary’s passenger car market in 2024, Magyar Suzuki said in a press release on Jan. 2. Statistics from Datahouse show 15,732 new Suzuki passenger autos were registered in Hungary in 2024, giving the brand a 12.94% market share. Suzuki took the top spot for the 21st time since it started production of cars in Esztergom (45 km northwest of Budapest). Two models produced at the plant, the Vitara and the S-Cross, were the top sellingmodels in 2024. Vitara sales came to 6,883, while S-Cross sales reached 6,607. Sales of the Suzuki Swift, also made in Esztergom, came to 1,867.

MNB Fines OTP, MBH Banks HUF 43 mln

The National Bank of Hungary (MNB) has fined OTP Bank and MBH Bank, the country’s two biggest commercial lenders, more than HUF 43 million

for failing to take all the required steps to correct shortfalls regarding the prevention of money laundering and financing of terrorism, the central bank and financial market regulator said in a statement issued on its website yesterday. The MNB had instructed the lenders earlier to take remedial measures because of the regulatory shortfalls. It is the second fine announced for MBH in a week. The MNB fined the bank and its unit MBH Investment Bank, HUF 27.5 million for failing to complete remedial measures, the financial market watchdog said. The MNB had ordered the banks to correct IT shortfalls in a probe covering 2022-2023. The failure to follow through with the remedial measures poses no risk to the banks’ secure operation, MNB said, but it noted MBH Bank’s significant market scale

MNB Fines MagNet Bank HUF 63 mln

The National Bank of Hungary (MNB) has fined MagNet Bank and MagNet Faktor HUF 63 million for failing to fully comply with regulations on enterprise management, risk management and IT security, the central bank and financial market watchdog said in a statement on its website. The MNB has set deadlines for MagNet to take remedial measures.

Aldi Hungary raised store and warehouse staff pay by 8% from Jan. 1, the German-owned discount chain has announced. Full-time non-management store staff will earn a starting salary of gross HUF 521,000/month with a chance to earn up to HUF 721,800/month in

time. Salaries for store managers will rise between HUF 979,000 and HUF 1,511,800/month. Aldi Hungary noted that 35% of its staff had been with the company for more than five years. With 182 shops, Aldi Hungary has around 5,500 store and warehouse staff.

Photo

Aldi Raising Wages by 8%

CIB, ORFK Join Forces to Cut Online Fraud

The National Police Headquarters (ORFK) and CIB Bank - a member of the Italian Intesa Sanpaolo Group, signed a cooperation agreement on Wednesday, Jan. 8, 2025, at the Police Administration Center in Budapest, under which the two organizations will undertake to work even more closely together to detect and prevent online crime.

The number of online offenses, especially online fraud against property, has steadily increased over the last five years. According to the ORFK Communications Service, the police are also receiving a rising number of reports of this type, and the damage caused to victims has now reached several billion forints.

The number of money laundering cases linked to crimes committed online has also increased compared to the previous year, making it a priority to identify those opening bank accounts to launder the money obtained through criminal activity. According to a representative survey commissioned by CIB Bank and carried out by Magyar Target Pulzus Média Kutató Kft. in March 2024, with the participation of 1,005 respondents, the vast majority of the adult population in the country, 84%, are trying to find out and obtain information on how to avoid being the victim of fraudulent activity, often committed on behalf of banks, over the phone or online.

The study also shows that people consider banks the most trusted source of information after the authorities. CIB Bank, like the police, has launched a series of campaigns and is raising awareness on its website of essential cybersecurity information, such as never allowing others to access your electronic banking devices and being careful when installing applications or remote access programs on your computer or mobile phone.

Effective Action

Effective and efficient action against cybercriminals is a priority for both the police and financial institutions, hence

Hungarian, U.S. Researchers Could Bring Treating Memory Disorders Closer

A new Hungarian discovery could open new perspectives on treating age-related and neurological diseases. Using a 3D laser scanning microscope developed in Hungary, it has become the first to observe the birth of memories in living animals in a fraction of a second, in structures 100 times thinner than a human hair. BBJ

The joint research of the Zuckerman Institute at Columbia University in New York, the BrainVisionCenter and the HunRen Institute for Experimental Medicine has produced a revolutionary result: using a 3D laser scanning microscope developed in Hungary, the researchers were able to observe the “birth” of memories in living animals in a fraction of a second, in structures 100 times thinner than a human hair. The study has been published in the prestigious journal Nature.

Recall of memories is based on changes in the strength of connections between brain cells, known as synapses. Although this theory has been known for almost 50 years, until now scientists have not been able to observe these synaptic changes directly in a living rodent model.

In recent years, advances in microscopy technology have allowed researchers to study the activity of brain cells in living, behaving animals in real-time.

“To identify precise genetic and molecular targets and future therapies, we need a deeper understanding of

the new agreement, signed by Major General Sándor Töreki, deputy chief of the National Police for Criminal Investigation, on behalf of the ORFK, and by Pál Simák, chairman and CEO, and Tamás Ákos, retail business unit manager, on behalf of CIB Bank.

The parties have already been cooperating in the rapid exchange of information and the immediate transmission of data, which was underlined by the signing of the agreement. A 24-hour on-call system has been set up between the two organizations to ensure an immediate response. This will allow police investigating authorities to request, provide and act on data to mitigate the damage to their clients. It will also enable the two organizations to support each other by knowledge sharing of new crime methods.

“The aim is clear: to take active and effective action to protect assets and prevent crime and to reduce the extent of the damage caused to both the customer and the bank,” Simák said, commenting on the signing of the agreement.

Major General Töreki explained that the 300-strong national network of cyber investigators established in the police in October 2023 is working to reduce such crimes as part of the Matrix Project. And not without success, as he said they “have already dismantled call centers and removed stooges and managers from the criminal system.”

the mechanisms of memory fixation and formation,” said Hungarian scientist Attila Losonczy, a senior researcher at Columbia University’s Zuckerman Institute.

A therapeutic and diagnostic mission based on exploring these mechanisms is planned to be carried out in part at the BrainVisionCenter, a collaboration partner founded by Balázs Rózsa and Botond Roska.

Real-time Revelations

The hippocampus is one of the most studied areas of the brain, but research in recent decades has relied mainly on EEG scans and brain slice preparations. These methods, although necessary, offer limited possibilities as they do not allow real-time and high-resolution studies of brain processes in living animals. Real-time observation of neural networks is essential for a deeper understanding of brain function, which requires technologies that can quickly and accurately scan cells and synapses in large-volume samples.

The researchers’ work is a significant breakthrough. They aimed to develop a methodology to measure the longterm synaptic plasticity (changes in synapse strength) of neurons responsible for learning and memory, which can last for hours or days in real-time in live rodent models.

A critical role in achieving this breakthrough was played by unique two-photon laser scanning microscope technology developed with the help of the research team led by Rózsa of Hun-Ren Koki and applied at the BrainVisionCenter. The system, equipped with 3D real-time image stabilization, can compensate for the continuous movement of the brain, allowing the study of its tiny elementary components, cells and cell extensions.

The device can monitor all the activity in structures a hundredth of the thickness of a human hair and is fast enough to capture changes in synapse strength that occur in hundreds of seconds. Used in conjunction with so-called voltage sensors, the microscope system has achieved what previously seemed impossible: measuring voltage signals at the level of a single synapse in the brain of a living, behaving animal. The application of the technology promises much.

Pál Simák, chairman and CEO of CIB Bank (left) and Major General Sándor Töreki, deputy chief of the National Police for Criminal Investigation.

Photo by ORFK

Can Hungary Become a Haven for Future-proof Automotive?

Asian suppliers are leading the charge in automotive’s global digitalization efforts, and that dominance has apparent ripple effects at the expense of European competitors. Amidst the sector’s challenges, could Hungary become a haven of future-proof manufacturing?

A recent international study involving Corvinus University of Budapest reveals that Asian automotive suppliers are at the forefront of digitalization, significantly outpacing their European counterparts. The research assessed 54 major automotive corporations worldwide, exposing a pronounced digital divide between regions.

The study, conducted by researchers from Babeș-Bolyai University in Cluj-Napoca, Corvinus University of Budapest, and Aalborg University in Denmark, focused on the 30 largest automakers and the top 100 automotive suppliers by revenue. The assessment covered firms with at least five years of reports available from 2012 to 2022. Suppliers were found to be more advanced in digitalization compared to car manufacturers, with Asian companies leading the charge. The top five most digitalized automotive companies globally are all Asian suppliers, with tire maker Hankook securing the top position.

In Europe, Grupo Antolin, a supplier of interior components, ranks first; however, none of the top five European suppliers match the digitalization levels of their Asian counterparts. Among automakers, Isuzu leads globally, while Volvo heads the European ranking, standing approximately on a par with Subaru, Asia’s fifth-best.

4.0

Automotive Matters

A monthly look at automotive

The study’s 10-year analysis highlighted a steady increase in both traditional and cutting-edge Industry 4.0 technologies within the automotive sector. Conventional technologies, such as robotics, radiofrequency identification (RFID), and algorithms, have grown by 15%, reaching a score of 54 on the researchers’ 0-100 digitalization scale.

Meanwhile, advanced Industry 4.0 solutions, including the Internet of Things (IoT), smart machinery, artificial intelligence, and simulations, surged by 24%, attaining a score of 26.

“While Industry 4.0 solutions are advancing dynamically, traditional technologies remain widely used,” explains Krisztina Demeter, a professor at Corvinus University and a member of the research team. “Their prevalence reminds us that Industry 4.0 innovations are built on established technologies.”

Acceleration Necessary

The study’s findings underscore a pressing need for European automotive companies to accelerate their digital transformation efforts. As the industry grapples with challenges such as electrification and the shift towards autonomous driving, enhancing efficiency through digital readiness is becoming increasingly critical.

Accordingly, share prices of Europe’s “big five” automakers, Volkswagen, Mercedes, BMW, Stellantis and Renault, have mostly struggled

throughout 2024. For instance, Stellantis dropped 37%, VW 23% and BMW 21%, respectively. High interest rates and rising vehicle prices have held back consumer demand. The EV segment, where affordability remains a primary concern, along with range anxiety due to the charging infrastructure not developing fast enough, was particularly badly hit.

That is where the price advantage of dynamic Asian manufacturers kicks in.

As a result, perception is shifting even in Germany: a recent Adac survey found that 80% of respondents could imagine buying a Chinese brand. The price tag was mentioned as the main reason for such a preference.

Although the market share of Chinese cars is still just 3% in Germany, the process seems to be accelerating and unstoppable. Big Four consultancy PwC estimates that 2024 may have seen 440,000 vehicles exported to Europe. This would mean that, for the first time, the number of cars shipped in from the Asian powerhouse would exceed related European exports to China.

All that has implications for the Hungarian economy, which is largely dependent on the sector’s performance. Orders were down 23% year-on-year as of the end of October, and stakeholders don’t see the end of the tunnel just yet.

Pressure comes partly from the 2035 deadline set by the European Union, beyond which only zero-emission cars can be produced and sold new.

Many are questioning whether that date should be set in stone; indeed, BMW chief executive Oliver Zipse said it was “no longer realistic” at the Paris Motor Show in October 2024.

Tariff Wars?

Another issue is tariffs. The EU, the United States, and Canada have all announced plans to limit the sale of Chinese EVs, although European OEMs fear that this could have a cannibalistic effect that could lead to plant closures.

As Stellantis boss Carlos Tavares noted earlier, Chinese car manufacturers such as BYD have been stepping up plans to build their vehicles in Europe to circumvent the tariffs. Tavares predicted that Chinese brands would not be going to Germany, France or Italy, the home of Europe’s oldest carmakers, but would seek cheaper options in countries in eastern Europe, such as Hungary, where labor costs are lower.

This, the Stellantis CEO added, would mean “accelerating the need to shut down plants” elsewhere in Europe, thereby defeating the object of protectionist tariffs.

Indeed, BYD’s multibillion-euro factory project in Szeged (175 km southeast of Budapest by road) is progressing according to plan. The leading EV manufacturer’s first European plant is scheduled to be up and running by the second half of this year.

“While Industry 4.0 solutions are advancing dynamically, traditional technologies remain widely used. Their prevalence reminds us that Industry 4.0 innovations are built on established technologies.”

Development is also progressing well at the other ongoing flagship investment for Hungarian automotive, BMW’s iFactory in Debrecen (233 km east of the capital). According to the head of the new plant, Hans-Peter Kemse, construction is “in full swing.” Pre-production is ongoing, and serial production of the fully electric Neue Klasse X model Sports Activity Vehicle is set to start at the end of 2025.

Kemser noted that the Debrecen plant was planned with a maximum annual capacity of 150,000 vehicles, though it will be ramped up gradually. That is another glimmer of hope for the sector and the Hungarian economy as a whole.

LEVENTE HÖRÖMPÖLI-TÓTH

3 Special Report

Year Ahead

The Budapest Business Journal Wish List 2025: Food to Make Your Brain Cells Dance, a Positive Approach to Mental

Health, and Fulfilling

It might seem heresy for a commercial journal such as the BBJ to suggest this, but the world is more than just business, finance, and the economy. So, for the eighth consecutive year, Kester Eddy has gathered an eclectic mix of voices, including some that tend to get less coverage in a publication like ours, to share their wishes for 2025.

us to rediscover the profound joy in simplicity and gratitude.

KATINKA CSIZMADI:

Embracing Gratitude and Simple Living

As we step into 2025, I find myself yearning for a collective shift and a conscious decision to consume less and appreciate more. In a world that often equates happiness with abundance and success with accumulation, my wish is for

Imagine if we embraced a day each week dedicated to slowing down, where wallets stayed closed and hearts opened. A day free from transactions focused instead on connection with loved ones, ourselves, and the natural world.

Such a practice could recalibrate our lives, reminding us that what matters most and fulfills us most cannot be bought. The benefits of consuming less extend beyond personal wellbeing. Reduced water and energy usage, fewer unnecessary purchases, and more mindful travel would significantly reduce our ecological footprint.

Small, deliberate choices, like buying things second-hand or borrowing instead of buying them, could ripple outward, sparking broader change. But this wish isn’t just about conservation; it’s about transformation. When we pause our relentless pursuit for more, we create space to notice what we already have. We recognize the beauty in everyday moments, such as a conversation with a friend, the comfort of home, or the taste of a meal made with care.

Gratitude flourishes when we focus on being rather than having. Such a shift requires effort. It means resisting societal pressures to always strive for the next big thing. It means teaching ourselves and future generations that contentment doesn’t reside in the latest gadget or trend but in cherishing what we hold dear.

Childhood Dreams

I wish 2025 to be the year we redefine prosperity, not by the volume of our consumption but by the depth of our gratitude and the strength of our connections. Together, let us tread more lightly, live more mindfully, and celebrate the richness of simply being. For in that simplicity lies the essence of a truly fulfilling life.

After a post as a marketing manager of a language school in Scotland, Katinka Csizmadi is now a stay-at-home mum in Zsámbék, 30 km west of Budapest.

GERGELY HARIS: Food for Thought in 2025

Coming from a family of restaurateurs, what would my wish for 2025 be? I see that fewer people are cooking at home, and even when they do, fewer are preparing good quality dishes, often opting for industrial meals or ordering online.

But is it really “only” about food?

Food is, of course, nutrition. But are you mindful of what, when, and where you eat and how your food is prepared? Do you choose local, organic products, not to mention zero-waste options?

It’s also important to be aware of allergens, additives, vitamins, and other ingredients that can influence your physical or mental health. When reading about food and diets, try to rely on trustworthy sources or invest in classic cookbooks. Should you decide to dine out, visit restaurants that serve high-quality dishes made in-house.

Food is a social opportunity. It’s worth trying not to eat alone and taking your time. Even if it’s just a quick office lunch, slow down and chew properly. Enjoy the taste and texture. Smile at the person across from you or maybe at someone at another table. And talk (only not while chewing).

Spend time with family and friends while sharing a delicious meal. Food brings people together or can tear them apart, especially if one’s too blunt in sharing an unsolicited opinion (welcome to Hungary).

Food for thought: food is bliss for your senses and calls your brain cells to dance. Food can help you close a deal. It can also be a generous donation to people in need. Food can make you love somebody or somebody love you. Food is a love language. Food is an inspiration.

So, what do you wish for? A perfect apricot? A decently cut schnitzel? Or maybe a gluten-free, vegan chocolate mousse? I wish for favorable weather so we can enjoy more locally sourced food. I wish for favorable market conditions that provide access to a variety of food experiences. Most of all, I wish everyone improves their relationship with food this year; for your mind, body, and soul.

Gergely Haris is co-owner of Bobo Restaurant in Budapest and managing director of hospitality consulting firm Haris Concept.

DAVID MCCALL: Priestly Advice From 50 Years Ago Still Valid Today

Many years ago, when I was still in college, a man-of-the-cloth who had devoted his life to education, a Jesuit, impressed upon me the practice of completing the reading of a book each month.

It wasn’t important how many books you began, he argued, but that you finish a book each and every month,

KESTER EDDY

Katinka Csizmadi

Gergely Haris

no matter what type of book, no matter what is going on in your life.

I have adhered to this practice ever since, and it has helped me stay grounded while exploring the world through lines written by people I will never meet. Reading for half an hour before going to sleep (rather than scrolling on your phone) will help inspire dreams and better sleep.

It helps you process what happened during the day, whether good or bad. It opens doors to other cultures, other places, other thoughts and broadens our horizons, which in turn helps us understand others, making the world a place to which we can better relate. It will also provide information that may come in handy next time you’re playing trivia or just having coffee with a friend.

My wish is a request that everyone reading this piece adopts this practice, and completes a book each month. I’ll also throw in a challenge: at least one of those 12 books each year should be in a language other than your mother tongue, though I know that this will not be possible for all. I will start the New Year with Angela Merkel’s newly released book “Freiheit” (“Freedom, in English) in the original German.

American David McCall was based in Budapest for 22 years before returning to the United States in 2012. Most of his career has been in waste management, including a project introducing curbside recycling in Budapest in 2007. He is now the city manager in Bay City, Oregon.

MILOS MISKOVICS:

Let’s Become our True Selves and Fulfil our Childhood Dreams

I would like everyone to start looking inside themselves, put down their telephones, stop using social media to escape, and instead take care of themselves and those around them. Look into each other’s eyes and start to understand who we are and where we’re going. Not to be scared of difference, but embrace it.

It would be nice if people realized life is beautiful, appreciated what they have, and felt grateful. It’s not all about possessions but about friendships. I wish we would all stop moaning and blaming others and instead find the courage to start working to change ourselves into the person we would really like to be.

I would like us to remember our childhood dreams and start fulfilling them! To take care of our traditions and families and have more fun together! To not be afraid of change, of learning new things, of being challenged to reinvent yourself into the creature you always wanted to be.

I wish that you keep pushing forward, and that you don’t lose courage at the first challenge. Don’t stop when it becomes difficult, but pull yourself together, look forward, see the light of hope, and become a kind, wonderful person.

The road to true happiness is long and rocky, but the destination is wonderful! Through patience, care and empathy, you will find more love, joy and contentment.

Milos Miskovic, originally from Voivodina, Serbia, is the owner and creative director of MM Hair, one of Budapest’s most admired hairdressing studios.

PATRYCJA RUP:

Embrace Your Special Place Within the Local Community August 2024 was a significant anniversary for me; it marked a decade I had spent living in Budapest. It wasn’t the first time I had moved away from my hometown of Częstochowa, Poland, but certainly, it brought a variety of excitement and challenges that I hadn’t faced in my home country.

Before coming to Hungary for good, I spent my student years in Poznań, western Poland, where I graduated with a BA in social communication, and inter-faculty individual studies in the humanities and social sciences with an MA in interactive media.

It was also a time of growing up to my future adult responsibilities. I believe that each place we visit, every city we live in, leaves a mark on us, drives changes in our perception and enriches our human experience. Poznan taught me how to be an empowered citizen and activist. In Budapest, I have grown as a writer, event producer and art curator.

None of these developments would have been possible without a strong support network provided by local communities, which welcomed me with trust. Communities offer us a unique sense of belonging, and they can answer our need for growth. Gathering for a small or great cause, to garden or to write, to complain or to build, to celebrate and compete, simply to do what matters to us collectively. Community can be a temporary home. Budapest is certainly one of the dearest cities to me. I want it to be a space of safety, prosperity and inspiration. I wish for Hungary to have a multitude of healthy, supportive communities growing in various fields, but always from a pure and thoughtful place, without hidden agendas and for a good cause. Recognizing the history and tradition of its regions, honoring its roots, but also welcoming new citizens, new communities and reforming itself. If, as Heraclitus said, “the only constant in life is change,” then I wish for us to see changes for the better in 2025.

Patrycja Rup lives in Budapest, where she works for IBM as a talent marketing content creator.

OLHA YARMOLIUK: Mental Healthcare

Must not be Taboo

Why is caring for our minds still seen as a weakness while caring for our bodies is recognized as a strength? In today’s world, anxiety surrounds us from all sides. At times, I just want to

pull a blanket over my head, like I did as a child, and hide from all the problems. But unfortunately, life doesn’t work that way.

Why do some people seem to easily handle stress and challenges while others spend years battling their inner selves, searching for answers? At 28, I never thought I would face overwhelming anxiety and panic attacks. The relentless race to find my place in the world, adapt to a new country, and worry about the health of my loved ones, my country, and our future, pushed me to breaking point.

My condition feels chronic: I sleep poorly, I struggle to focus, and sometimes, I feel on the verge of depression. The hardest part? I don’t know how to fix it. I am Ukrainian, and the hardships my people endure are beyond words. To me, every Ukrainian is a hero because, despite everything, they seek harmony, continue to live, and hold on to hope for a better future.

War does not just destroy homes and cities; it shatters minds and souls. The mental health of millions has become an invisible casualty of this war. It’s rarely talked about, seldom shown on TV, but it’s real, a deep, hidden wound that, if left untreated, will only grow worse.

Today, I wish for mental healthcare to no longer be taboo and for us to speak openly about our struggles and seek help without fear of judgment. This isn’t weakness; it’s strength, the strength to admit help is needed and the courage to begin on the path to healing.

My wish is for my people, every Ukrainian, to preserve their souls, heal their inner wounds, and emerge stronger than ever before.

Olha Yarmoliuk, an English teacher, fled Kyiv with her family in March 2022 in the aftermath of Russia’s full-scale invasion of Ukraine. Her husband has stayed behind as a volunteer in the defense forces.

David McCall

Milos Miskovics

Patrycja Rup

Olha Yarmoliuk

Hungary’s Real Estate Players Anticipate Busier 2025

Real estate and related industry professionals are looking to New Year 2025 for an uplift in the investment markets. Meanwhile, players will need to incorporate ESG at all levels of the development and property management cycles.

GARY J. MORRELL

New builds and redevelopments in all sectors must adhere to ever more all-embracing green regulations and sustainability-related market pressures at all stages of a building’s life cycle. There is a strong pipeline in the industrial, hotel and residential sectors, but speculative development in the office and retail sectors is expected to remain constrained.

Investment

Investment activity in Bulgaria, the Czech Republic, Hungary, Poland, Romania, and Slovakia is showing signs of picking up; Colliers has revised the 2024 CEE investment volume upwards to EUR 7 billion-7.5 bln, although this is 30% below the 10-year average.

“In the investment market, with the anticipated ECB interest rate cuts, lower financing costs could boost investor activity in the second half of 2025. Yield levels are expected to remain stable to ensure that the domestic market remains attractive compared to Western European markets and other CEE countries,” says Colliers.

CBRE sees prime CEE yields (the Czech Republic, Hungary, Poland, Romania, and Slovakia) moving in, reflecting a flight to quality across asset classes. Prime office and industrial and logistics yields for Budapest stand at around 7%.

Given the current market conditions, Colliers experts estimate that regional investment transaction volume could exceed EUR 10 bln in 2025. Investment activity is picking up in Poland and the Czech Republic, and the question remains when this will occur in Hungary.

CBRE predicts increasing CEE investment volumes with a possible EUR 9.5 bln concluded for 2024, around 50% of which was recorded in Poland. Further, several deals are in the final stages and are due to be closed in 2025. Hungary has still not seen this growth trend, however, with no pressure to sell from vendors and a pricing gap.

The acquisition of a portfolio of warehouse properties from 7R by the Czech fund Investika Real Estate Fund and its joint-venture partner, the private equity company BUD Holdings, represents the most significant transaction on the Polish warehouse market in the last two years.

In the Czech Republic and Slovakia, Blackstone has purchased a portfolio of 500,000 sqm of industrial assets, in addition to development potential assets, for EUR 470 million.

“Developers and landlords increasingly need to develop in accordance with tenant-specific solutions, although this provides less flexibility from the perspective of landlords and developers with regard to future lettings. The development of a facility for a car manufacturer or supplier, for example, is very tenant-specific.”

“The outlook for real estate in the CEE region remains positive, although it is not immune to external influences and macroeconomic factors that may affect markets and industries, particularly with regard to major trading partners,” says Silviu Pap, director of CEE & Romania Research at Colliers.

“Economic growth in CEE, especially in contrast to the recession in Germany, together with price stabilization and the return of institutional capital, signals more favorable conditions until 2026. Transactions are currently

and modernized to become ESGcompliant continue to attract demand; repurposing buildings could also come into consideration,” comments Colliers.

The changing dynamics of office space, with more flexible and collaborative environments due to shifting work patterns, will continue to influence the design and development of office buildings, argues Noah Steinberg, chairman and CEO of Wing.

“Our mission remains unchanged: to create and own buildings that meet the needs of their users. To do this, we need to consider what they want to do in the building and what is important to them. We develop our products based on this, so we work with a very complex set of criteria and needs,” he says.

“Another important consideration will be the ever-increasing emphasis on sustainability and energy efficiency. In the real estate market, energyefficient solutions and sustainable practices will continue to be essential,” Steinberg adds.

focused on value-add and opportunistic strategies, particularly in sectors where prices have adjusted,” he notes. “However, significant price differentials remain, particularly in logistics. Looking ahead to 2025, optimism is cautious, driven by price stabilization and expectations of interest rate cuts by the European Central Bank, which could stimulate market activity,” Pap concludes.

Office

Attila Madler, chief asset management officer at CPI Hungary, does not expect speculative office developments this year, only the start of a few projects that can show significant preleases of at least 70%. However, as companies become more cost-aware, it is quite rare that they are willing to afford the rent level of approximately EUR 22 per sqm per month for new developments instead of moving into existing schemes for approximately EUR 16-17 sqm, he says.

CBRE has traced 100,000 sqm plus of space due to be delivered in Budapest in 2025, and 256,000 sqm for 2026, with a more than 90%-plus prelease ratio. “Office in CEE has not been this weak in 20 years,” notes the consultancy.

The vacancy rate in the Budapest office market could reach 15% by mid2025, according to Valter Kalaus, managing partner at Newmark VLK Hungary. The long-term effects of home office and hybrid working have left their mark on the sector, with tenants increasingly rethinking their space requirements, with the result that rents are expected to plateau or even fall, he argues.

“On the office market, the supply side has started to adapt to demand trends; the amount of office space under construction is currently at a historically low level. Vacancy rates continue to rise and are expected to increase further. However, properties located in good areas

The office sector will likely see an acceleration in value-add investments, particularly retrofitting assets to improve energy efficiency.

“Failure to adapt could render some buildings obsolete, especially as tenants and investors increasingly prioritize green-certified properties. Regulatory incentives or penalties may become a decisive factor in driving market behavior,” reckons Zsombor Barta, ambassador to (and a former president of) the Hungarian Green Building Council (HuGBC).

Industrial

CBRE has traced a pipeline for the year of about 640,000 sqm of new space, 220,000 sqm of which is already under construction.

In the case of industrial properties, countryside plots are becoming increasingly valuable due to the significant inflow of FDI to date and anticipated future investments from the likes of BMW, BYD, and CATL. Colliers says This will likely increase demand for industrial and logistical properties.

“In 2025, I expect stable demand in Hungary and an increased focus on regional markets, especially in the south. At CTP, we already see a healthy prelease ratio for our 2025 pipeline and even more for the years beyond. This is driven by nearshoring trends and increasing manufacturing demand,” comments Ferenc Gondi, managing director and country manager at CTP Hungary. He regards a major CTP milestone as the handover of Tesco’s 100,000 sqm complex distribution center at CTPark Szigetszentmiklós.

“Strategically located near Budapest, this facility combines cuttingedge automation with sustainable technologies to support Tesco’s expansive operations. This development strengthens Tesco’s Hungarian logistics network and sets new benchmarks for sustainable industrial property development,” Gondi says.

Centrale, a mixed-use development project.

As the market continues to evolve, one key focus area will undoubtedly be sustainability. Development activity will increasingly prioritize energy-efficient buildings, renewable energy integration, and sustainable industrial property development, he concludes.

Madler, chief asset management officer at CPI Hungary, expects development in the county capitals, primarily driven by the expansion of the supply chains of the main automotive factories.

“To the background of a cooling in the industrial market, where overall availability has risen to 8-9% from a low of 2-3%, the BTS [built-to-suit] development option has become the preferred option as manufacturing and distribution hubs have become more important,” says Kalaus of VLK Newmark.

“In this way, developers and landlords increasingly need to develop in accordance with tenant-specific solutions, although this provides less flexibility from the perspective of landlords and developers with regard to future lettings. The development of a facility for a car manufacturer or supplier, for example, is very tenant-specific,” he adds.

There is an estimated pipeline of around 700,000 sqm in the coming year, 390,000 sqm of which is in the Budapest area and 300,000 sqm in regional hubs, according to Colliers.

“As of the end of the third quarter of 2024, speculative construction represents 44% of the CEE pipeline,” comments Blanka Vackova, head of research at iO Partners in the Czech Republic.

“In Hungary specifically, the speculative construction trend closely mirrors the regional average, with 43% of the circa 400,000 sqm of ongoing construction being developed without pre-existing tenant commitments,” she adds.

To maintain competitiveness, industrial developers must integrate sustainability features as standard, particularly for cross-border logistics hubs. Green financing could be a game-changer, enabling

a wider adoption of renewable energy and smart technologies. A failure to address these challenges risks diminishing Hungary’s position as a regional logistics hub, argues Barta.

Retail

A few retail park developments and stand-alone single-tenant retail buildings will be launched, mainly in the countryside, according to Madler.

“Many retail properties are not ESG-compliant, leading to rising operational costs and diminished investor interest. Furthermore, the sector must navigate changing consumer expectations, requiring a balance between convenience, sustainability, and the growing demand for mixed-use spaces,” says Zsombor Barta.

“Retail developers and operators must prioritize diversification, blending shopping, leisure, and communityoriented spaces to remain relevant. Retrofitting and integrating green building certifications will be critical, as will addressing the energy efficiency gap in older properties. Those failing to innovate risk declining footfall and asset devaluation,” he adds.

Hotel

The hotel sector in Hungary continues to stand out as an attractive development and investment opportunity. The country and the broader region remain popular tourist destinations,

with guest nights steadily climbing back to pre-pandemic record levels. This recovery underpins strong demand for new and upgraded hospitality assets, particularly in Budapest, where the market benefits from a vibrant mix of leisure and business travel in the view of Máté Szoboszlay, partner for business development and transactions at Faedra Group.

“In 2025, we expect the transaction volume to increase, especially in the hotel segment. The office segment will also see an uplift in transaction volume as the pricing uncertainty should ease.”

CBRE figures indicate that 1,500 hotel rooms will be delivered in Hungary over the year, 1,200 of which are in Budapest. There is also a strong pipeline in spa towns outside the capital; the Balaton region has a healthy pipeline, with 700 rooms scheduled to be delivered by the end of 2027, including the Le Meridien Resort.

The critical challenge is adopting sustainable technologies, such as geothermal heating and water recycling systems, which is still uneven across the sector. Smaller operators, in particular, struggle to meet sustainability expectations without access to affordable financing or technical expertise, according to Barta of the HuGBC.

“To maintain growth, the sector must embrace sustainability not just as a marketing strategy but as an operational imperative. Hotels that incorporate advanced energy-saving technologies and green certifications will attract not only environmentally aware travelers but also institutional investors. Those that fail to adapt risk losing competitiveness in a market increasingly shaped by ESG compliance,” he adds.

“In 2025, we expect the transaction volume to increase, especially in the hotel segment. The office segment will also see an uplift in transaction volume as the pricing uncertainty should ease,” concludes Madler.

ESG

Although the framework is quite broad and not yet formally mandatory, it seems that in some European countries, especially the Nordics and Germany, ESG standards are a must when investment decisions are made. This trend is growing in Hungary, too, notes Szoboszlay.

In practice, this means that developers and investors who do not take ESG aspects into account may face difficulties raising capital, and this will also likely be the case when it comes to leasing or selling assets in the future.

So, ESG will remain a key trend in 2025, and the increasing importance of sustainable development impacts all real estate sectors and their supply chains. A noticeable trend is that investors, banks and occupiers are all looking for certified energy-efficient properties, Szoboszlay adds.

Looking ahead to this year, the Hungarian real estate market must address three critical areas, argues Barta. The first of these is bridging the retrofitting gap.

“Upgrading older assets is essential to remain competitive, but developers and owners will need stronger financial incentives and technical support to achieve this,” says the HuGBC ambassador.

The second area is driving green financing adoption. “Access to affordable, sustainability-focused financing will be crucial for developers and operators, particularly in sectors like industrial and residential,” Barta argues.

The third is leveraging policy and regulation. Clearer regulatory frameworks and incentives will be vital in accelerating the market’s transition toward zero-carbon goals.

“Hungary’s real estate market holds immense potential, but the path forward requires collaboration between stakeholders to address the sustainability challenges ahead. Those who innovate and adapt will be wellpositioned to thrive in the evolving landscape, ensuring long-term value while contributing to a more sustainable built environment,” Barta says.

“Across all sectors, sustainability is no longer a differentiator but a necessity. Hungary’s alignment with EU taxonomy and ESG reporting requirements is shaping investment decisions, tenant preferences, and regulatory frameworks. However, significant challenges remain, particularly in retrofitting existing assets and financing sustainability upgrades,” he concludes.

Liberty by Wing.

Marina City by Cordia.

CTP Tesco warehouse.

2025 in Hungarian Healthcare: COVID-19

on a Definitive Decline

With new, integrated methods for data collection and monitoring, Hungarian healthcare professionals are preparing for another year of challenges, both expected and unexpected. Dr. Ágnes Galgóczi, head of the Epidemiology and Infection Control Department of the National Center for Public Health, shares her outlook on general health in Hungary, vaccine campaigns in the upcoming year and where the country currently stands on COVID-19.

Although there has been little talk of COVID-19 since the declaration of the end of the pandemic in May 2023, medical professionals across the world are still studying its effects and preparing for the possibilities of new variants, with data collection for respiratory diseases at its annual peak in Hungary this season.

“Autumn to spring is the season for respiratory infections, when airborne pathogens circulate more widely in the population,” explains Galgóczi.

“In addition to influenza and SARSCoV-2 [COVID-19], a number of other respiratory pathogens circulate, such as adenoviruses, RSV, rhinoviruses, parainfluenza virus and infections of bacterial origin,” she notes.

“The influenza epidemic in our country typically starts in January and peaks in February before gradually subsiding. In Hungary, a so-called respiratory surveillance service has been in operation for decades, collecting the number and age distribution of people presenting to their general practitioners with influenza-like illnesses,” Galgóczi says.

“An integrated surveillance system was launched in the

2023-2024

respiratory season, which includes complex clinical, microbiological and weekly monitoring of concentrations

INFLUENZA

of SARS-CoV-2 and a genetic agent of influenza A in wastewater,” says the expert. These values are charted “every week from the 40th week of the year until the 20th week of the following year,” with weekly updates, with the most recent revision at the time of this publication reflecting the values collected on the 51st week of 2024.

The values from the past 83 weeks show that the highest average of the genetic material of the COVID-19 virus found in wastewater across Hungary peaked in the last couple of weeks of 2023, with a sudden and rapid decline in the first few months of 2024. Although the values peaked at roughly the same weeks during 2024, the numbers did not reach the same levels as in the previous year.

Geographical Distribution

A geographical chart further details this information, displaying data regarding the concentration and tendency of the COVID-19 genetic material found in the wastewater. It shows that while many areas around the country still have increased values, most of the concentrations, such as the ones found in Northern Budapest, Pécs and Debrecen, are stagnating, while some values, in places such as Miskolc, Central- and Southern Budapest, are already decreasing.

According to the National Public Health and Pharmaceutical Center (NNGYK) website, where

CORONAVIRUS

these graphs are posted, “Based on the wastewater results, the increase in the number of COVID-19 infections is expected to stop in the near future.”

Galgóczi says this type of monitoring is key for medical facilities in counties across Hungary. “Healthcare providers can be informed about areas with high pathogen circulation and where an increase in the number of cases is expected. On this basis, in-patient care facilities can strengthen their infection control measures, for example, by requiring visitors to wear masks or imposing visiting restrictions,” she notes.

Although rates of COVID-19 are expected to decline, vaccination campaigns are still being run, mainly targeting at-risk demographics in terms of both COVID-19 and influenza.

“Both the influenza and COVID19 vaccination campaigns have started, and the vaccine is available and accessible to the population at their general practitioners. We rely on them in particular during the vaccination campaign, as their preventive role includes offering and administering vaccines to care recipients,” says Galgóczi.

“The two vaccines can be administered at the same time, and it is not too late to take advantage of them,” she urges. “For influenza vaccine, the World Health Organization will issue a recommended vaccine formulation for the [current]

respiratory season. This season, the vaccine contains the JN.1 variant and is available to the general public in our country,” she says.

Primary Targets

“The primary target groups are those at risk of more severe influenza and COVID-19, with the aim of preventing hospitalization. These are people over 60 years of age, people with chronic, mainly cardiovascular, respiratory or metabolic diseases, immunosuppressed people and transplant recipients,” the doctor explains.

According to Galgóczi, some strain on the healthcare system is also expected for the upcoming period.

“During the respiratory season, primary and in-patient care can experience increased workloads. There may be an increase in the number of people presenting to doctors with respiratory symptoms and an increase in the number of respiratory illnesses requiring hospitalization in vulnerable, at-risk populations,” she shares.

“Prevention should be emphasized to minimize the burden. Vaccination is a safe and effective way to do this. Seasonally recommended vaccines are available in Hungary against both influenza and COVID-19. Vaccination is aimed at developing individual protection and preventing the development of severe disease.”

“The influenza epidemic in our country typically starts in January and peaks in February before gradually subsiding. In Hungary, a so-called respiratory surveillance service has been in operation for decades, collecting the number and age distribution of people presenting to their general practitioners with influenza-like illnesses.”

As significant as the decline of COVID19 cases has been since the height of the pandemic, it is still an active subject that medical professionals have to account for, at least until the number of cases declines to a consistent near zero.

“On May 5, 2023, the WHO declared the end of the COVID-19 pandemic,” says Galgóczi notes. “However, this did not mean the end of data collection on SARS-CoV-2 and the respiratory illness it causes. Data on acute respiratory illnesses and microbiological results from airway sampling can be used to monitor the current circulation of the SARS-CoV-2 virus variant. The virus is volatile, with the current circulating variants causing less severe disease. However, those at risk, the elderly, those with chronic disease and the immunosuppressed, remain at risk of more severe infection.”

LUCA ALBERT

4 Socialite

Dipping a toe into Hungarian Literature for 2025

Up until New Year’s Day, I’d only dipped the tip of my littlest toe into the bracing waters of Hungarian literature. Inspired by a visit to the Massolit bookshop on Nagy Diófa utca in District VII (as featured by Kester Eddy in the Nov. 29, 2024, issue: see “The Bookshop-Café Tucked Away in Budapest’s Jewish Quarter”) and recommendations by my Hungarian wife and some gracious connections with a literary bent, I’ve shortlisted five books to read in 2025.

While I don’t claim that my selection does justice to the Hungarian literary canon, it has turned out to be satisfyingly eclectic. Unsurprisingly, for someone who speaks Hungarian like a Venusian and can’t imagine ever reading the language, all the books on my list are translated into English. So, from kids’ literature to avantgarde classics, here’s my famous five.

“The Paul Street Boys”

Set in 1889, Ferenc Molnár’s 1906 classic “The Paul Street Boys” is about a group of schoolboys in Budapest’s Józsefváros neighborhood who have to protect the “grund,” an empty lot they regard as their “Fatherland” from a rival gang of boys named the “Redshirts” whose name alludes to the then vogue for “Red Indian” themed children’s stories in Hungary.

János Boka is the leader of the Paul Street Boys. Ernő Nemecsek is the constantly put-upon smallest member of the gang.

“The Paul Street Boys” is, for the most part, a ripping yarn which, at its most engaging, suggests the influence of Mark Twain. The book veers into pathos for its last section as it focuses

“The Paul Street Boys” (“A Pál utcai fiúk” in Hungarian) is not only a staple of the Hungarian curriculum; it also inspired this bronze sculpture group, depicting an early scene from the book, in front of the Prater Street Primary School (Práter utca 11, in District VIII), just round the corner from the Corvin Plaza shopping center.

on the character of little Nemecsek, who (spoiler alert) dies from pneumonia caught in the battle for the grund.

The work remains compulsory reading for Hungarian general school students. Without wishing to analyze it overmuch, I’d say the boys’ feeling for their grund resonates with the average Hungarian’s love for this country, right or wrong. I’m tempted to read a critique of the then class structure into the book, but I suspect I’d be shot down in flames. Incidentally, Mark Twain spent a week in Budapest in 1899.

“A Book of Memories”

I picked up “A Book of Memories” by Péter Nádas at Massolit, mainly on the strength of the puff on the front cover from perennially hip American literary theorist Susan Sontag. She called the book “the greatest novel written in our time and one of the great books of the century.” I’m about 30 pages in, and it’s clearly a profound literary achievement, but, man, it is hard going.

The narrative of “The Book of Memories” follows a Hungarian novelist in a romantic triangle in East Berlin. The main character is writing a novel about a turn of the 19th-century German novelist, sections of which are woven into the narrative. When it was published in 1986, the book was reviewed by Eva Hoffman in The New York Times under the headline “The Soul of Proust Under Socialism.” Like Proust, Nádas delights in writing extraordinarily long sentences and paragraphs that go on page after page. If you decide to tackle

“The Book of Memories,” I suggest the best strategy is to sink into it and not worry overmuch about losing your way.

“Satantango”

László Krasznahorkai’s “Satantango” was published in 1985. Like “The Book of Memories,” it’s impressive but, for me so far, extremely hard to find one’s way into. It’s not apparent from the little I’ve read, but each of the book’s chapters is intended to follow the form of a tango: six steps forward and six back. Every chapter is a single paragraph without line breaks which makes things even more murky. The story centers on a Hungarian village whose inhabitants are pretty much cut off from the outside world. Irimiás, the main character, is a conman posing as a savior who, gaining power over the inhabitants of the village, persuades them to give him their money and move to another abandoned village before bringing them to a town.

When Jacob Silverman reviewed the book for The New York Times in 2012, he described it as “an altogether more digestible work” than Krasznahorkai’s later novels. As I certainly won’t be reading any more Krasznahorkai, I’ll never know if that’s true or not. But as with “The Book of Memories,” my feeling is that at least the first time around, it’s best to read “Satantango” without getting hung up on grasping what’s going on.

“Luigi the Last”

After those two heavyweights, you’re going to need some light relief, even if it’s of the barbed kind. Tibor Bödőcs’ “Luigi the Last” is a satisfying palate cleanser.

Bödőcs is a popular Hungarian comedian whose first and third books won Libri Reader’s Choice awards. “Luigi the Last” is his third. Set in the circus empire of Hetticania, which is preparing to celebrate 30 years of the monstrous King Luigi’s rule, the book is obviously satirical. It’s not hard to figure out who or what’s being satirized. At one point, Luigi says, “And I’m pissed off with the people. Why don’t they revolt?” Whether you get the finer points of the satire or not, “Luigi the Last” is thoroughly entertaining in a Rabelaisian way.

“By the Danube”

My last recommendation is a volume of poetry. I’m not much of a poetry reader, but my wife loves the work of Attila József. She bought me “By the Danube,” József’s selected poems for my name day. József lived between 1905 and 1937. His reputation soared after his death. The socialists of the 1950s called him Hungary’s great “proletarian poet.” Today, he’s one of Hungary’s best-known poets outside this country. Apart from the quality of his work, I suspect his appeal is that of the classic tortured, rebellious poet who died young.

My heartfelt thanks to Masha Kamenetskaya, publisher of the excellent literary journal “Panel,” writer Peterjon Cresswell and translator and poet David Hill for their tips and suggestions.

Photo

DAVID HOLZER

Obituaries Culture Matters

CHRISTOPHER DANIELS, Budapest Festival Orchestra

Dec.28,1947-Dec.28,2024

At times a submariner, shopkeeper, baker’s assistant and parking valet for VIP hotel guests, Christopher Thomas Daniels lived a wildly varied life before he passed away from cancer in Budapest on Dec. 28, 2024, his 77th birthday

But it was his love of classical music in general, and the Budapest Festival Orchestra in particular, that won him acclaim over the past quarter century.

While cast-iron facts on early life details are difficult to obtain, Daniels was born in Pennsylvania, USA, in 1947. It was far from an affluent upbringing, and he helped feed chickens on the parental farm before attending school.

He earned a bachelor’s in music education from Clarion University of Pennsylvania in 1970, at some point after which he joined the U.S. Navy as a submariner.

“I wanted to avoid being drafted to Vietnam, and since submarines weren’t involved in the conflict, that seemed the best way to achieve that,” he told me in years past by way of explanation.

A life beneath the waves was cut short after he became a conscientious objector, a transformation triggered when sitting with a torpedo between his legs in the process of loading the weapon onto his boat. He then got a desk job. In subsequent years, he variously worked in a bakery, ran a shop in Carmel, California, selling flags from around the world and scooped up spectacular tips by parking celebrities’ cars at the exclusive Hotel Del Coronado in San Diego.

For all the glitz, he was desperate to align his life closer to music. Daniels enrolled in an arts administration post-degree course at the University of Cincinnati in 1987 and, upon graduation, moved seamlessly into the post of artists’ liaison and assistant production manager with the Cincinnati Symphony Orchestra in 1989.

Nearly a decade later, Daniels encountered Iván Fischer, the founding conductor of the then little-known

A regular look at culture issues in Hungary and the region

but up-and-coming Budapest Festival Orchestra (BFZ). The chemistry worked, and the American moved to Budapest in 1998 to become the orchestra’s international development director.

For the next 13 years, during which time the BFZ rose to global fame, Daniels “worked wholeheartedly” for the orchestra, initially living and working in Fischer’s childhood apartment on Andrássy út, according to Amy Módly, a close friend. His unstinting work for the BFZ, his unfathomable love for music and singing, along with his dedication to supporting St Margaret’s Anglican Episcopal Church of Budapest (particularly its work for the poor), won him many friends and admirers.

One such was Alan Sutton, to whom he revealed his “conversion” experience.

“We were having coffee at the Astoria when he told me he was at home in his bedroom soon after his mother had died, and he heard her voice saying, ‘Chris, I’m in Heaven.’ That was what started his belief and going to church.”

His employment with the BFO ended somewhat abruptly in 2011, though Daniels continued to support the orchestra’s work via friends’ groups in London and New York long into his retirement years.

Daniels was gay, of which he made no secret, and lived “a Spartan private life in a tiny top floor flat with no lift in Budapest,” as one correspondent put it. He also owned a simple peasant’s house in Zala County, some 200 km southwest of Budapest.

“I never saw Chris happier than when he was at his little cottage, cooking something over an open fire in the evenings, talking with friends over a glass of wine, and watching the sunset across the trees at the bottom of his garden,” recalls friend Richard Brasher.

Richard Adams speaks for many who sent tributes for this obituary. “I am missing him very much,” he wrote simply.

By Kester Eddy

DR. CHARLES A. HUEBNER, Entrepreneur 1934-Dec.29,2024

The American Chamber of Commerce in Hungary has announced the death of one of its former presidents, Dr. Charles Huebner, who died on Dec. 29, 2024, at the age of 90.

In a simple statement posted on LinkedIn, AmCham Hungary said that Huebner came to Hungary in 1990 to establish the Hungarian American Enterprise Fund in Budapest as its executive vice president and managing director. He was president of the chamber from 1997–1999, during which time “he became a pillar of our community and a tireless advocate for strengthening Hungarian-American business relations. His exemplary contributions were recognized in 2012 with the Völgyes-Iván Award,” AmCham said. “Dr. Huebner’s vision,

leadership, and unwavering dedication leave a lasting legacy for our business community. May he rest in peace.”

According to Huebner’s LinkedIn profile, he was EVP and managing director of the Hungarian American Enterprise Fund from 1990-1997. From 1998-2002, he was managing director and partner at the Első Magyar Alap (First Hungary Fund), planning and budgeting for companies in which it invested. Between 2004-2009, he was an investment fund partner at the iEurope Fund.

“Decent, honest and reliable, Charles Huebner was an outstanding example of the virtues that characterized an America that, unfortunately, has largely disappeared,” said Péter Róna, the Hungarian economist who, at the time, was the chairman of the First Hungary Fund.

“He was generous and kind, without any meanness or malice toward anyone. He reached the upper levels of middle management at General Electric, where he learned and practiced the culture of the Fortune 500 of the ’70s and ’80s,” Róna added.

Huebner was a dedicated Roman Catholic who served as Minister Counselor of the Sovereign Military Order of Malta for a period. Indeed, he imbued his professional work with his Christian ethics, as one contact from diplomatic circles who liaised with Huebner at the time recalled.

“I remember him as a fine gentleman with great knowledge and an even more humble attitude. He was a key figure of the business community, devoted to developing economic ties.”

One source told the Budapest Business Journal that Huebner was born and spent some of his early life in Székesfehérvár, 65 km southwest of Budapest. Having graduated in 1958 from the University of Detroit first-in-class with a bachelor’s in mechanical engineering, he went on to the Massachusetts Institute of Technology in Cambridge, MA, as a member of the first U.S. Air Force two-year astronautics program.

There, he was a co-winner of the American Rocket Society’s outstanding thesis award, given by Werner

von Braun. Huebner gained his masters in aeronautics and astronautics from MIT in 1960 and his doctorate from American University, Washington, D.C.

By Kester Eddy and Robin Marshall

ÁGNES KELETI, Olympian

Jan.9,1921-Jan.2,2025.

Holocaust survivor and five-time Olympic champion gymnast Ágnes Keleti died early on Thursday, Jan. 2, 2025, Hungarian sports daily Nemzeti Sport reported. She was days short of what would have been her 104th birthday. According to international newswire Associated Press, she had been hospitalized in a critical condition with pneumonia on Dec. 25. Keleti represented Hungary at the summer Olympics in Helsinki in 1952 and Melbourne in 1956, winning 10 Olympic medals: five golds, three silvers, and two bronzes. Until her death, she was the oldest living Olympic champion in the world, and she remains the most decorated Hungarian female Olympian. Born Ágnes Klein, Keleti immigrated to Israel in 1957, where she worked as a coach, before returning to Hungary in 2015 at the age of 94.

By BBJ Staff

Charles A. Huebner (right), then AmCham President, pictured with Jack Welch, then chairman of GE.

Ágnes Keleti taken on April 26, 2024 in Budapest.

Christopher Daniels

Photo by Róbert Hegedüs / MTI

Photo by AmCham Hungary

Photo by Lora Bernabei

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

Swedish Chamber of Commerce in Hungary (SCCH)

Lucia visited the Swedish business community in Hungary on Dec. 9, 2024. “Team Sweden” had a seasonal gala dinner starting with an interesting discussion with Ambassador of Sweden to Hungary Diana Madunic, and Roland Jakab, SCCH president, moderated by Márta Holló. The Lucia Choir, Tutti Cantabile, brought the feeling of Lucia and

Christmas, while Balázs Kiss literally enchanted the guests. After a raffle with valuable prices, four Stars from the Budapest Operetta Theater (Kata Janza, Nikolett Füredi, Ádám Bálint and Norman Szentmártoni) brought us a brilliant Abba show. The event reminded us of what Lucia brings: light and hope in the year’s darkest days.

Belgian Business Club in Hungary (Belgabiz)

Belgabiz will hold its New Year’s Networking Reception to kick off another year. Come and join us to connect with other professionals, share ideas, and grow your network, all in a friendly and inspiring environment.

• When: Jan. 16, 6-10 p.m. • Where: Hotel Vision, Belgrád rakpart 24, Budapest 1056 • Fee: Members free; non-members HUF 24,000

Canadian Chamber of Commerce in Hungary (CCCH)

The CCCH, in collaboration with the László-Fekete-Bagaméry Law Office, invites professionals and business leaders to an insightful business breakfast focusing on the latest tax changes and their implications in a dynamic economic climate. The presentation will be held in Hungarian. The discussion will cover topics such as new tax regulations and incentives in corporate taxation, VAT considerations from a cash flow perspective, and the viability of simplified tax regimes for small businesses. Participants will gain practical knowledge about the evolving tax landscape and identify cost-effective solutions.

• When: Jan. 22, from 8:30 a.m.

• Where: LFB Law Tax, Nagymező utca 7, Budapest 1065. • Fee: Free, but prior registration is required.

German-Hungarian Chamber of Industry and Commerce (DUIHK)

The DUIHK annual kick-off 2025 event will offer a wealth of information and networking opportunities in a festive setting. The DUIHK will provide information about the chamber’s planned activities and focal points for the coming year, in which companies in both countries will continue to face significant challenges given political and geopolitical developments. The early federal election also casts its shadow, raising many hopes and questions regarding the future economic policy course of the newly elected German government. Guest speakers will be Minister for Economic Affairs Márton Nagy and Prof. Dr Michael Hüther, director and board member of the Cologne Institute for Economic Research.

• When: Thursday, Jan. 30, 6-10 p.m.

• Where: Bem Center Budapest, Bem József tér 3, Budapest 1027

• Fee: Members HUF 39,000 (+ VAT); non-members HUF 62,000 (+ VAT).

Hungarian-French Chamber of Commerce and Industry (CCIFH)

The CCIFH year-opening business lunch will feature Minister for Economic Affairs Márton Nagy on the 2025 economic outlook for Hungary. The professional partner of the event will be MAPI Magyar Fejlesztési Iroda Zrt. The language of the event will be English, without translation.

• When: Feb. 6, noon-2 p.m.

• Where: Anantara New York Palace Budapest Hotel, Erzsébet krt 9, Budapest 1073. • Fee: Members HUF 34,900 + VAT; non-members HUF 52,200 + VAT.

Italian Chamber of Commerce for Hungary (CCIU)

The president of the CCIU, Bernardino Pusceddu, will be a member of the jury of the Indo-European Business Excellence Awards & Summit 2025, an event dedicated to celebrating international business excellence. It will focus on sectors such as information technology, pharmaceuticals, manufacturing, banking, and energy. The summit highlights innovation, sustainability, and operational excellence. Other jury members include Duncan Graham, chairman of the British Chamber of Commerce for Hungary, Norbert Revai-Bere, a foreign policy advisor at the Office of the Hungarian National Assembly, and Balazs Uzoni, global partner manager at Vodafone Intelligent Solutions. The jury will evaluate and recognize the most deserving companies, honoring achievements in innovation, positive impact, and sustainable practices. The event will emphasize the significant contributions of businesses to global economic development and the promotion of sustainable solutions. It will also provide an invaluable opportunity to strengthen economic ties between Europe and India.

• When: day, March 7, 2025, noon-10 p.m.

• Where: Budapest Marriott Hotel, Apáczai Csere János utca 4, Budapest 1052

Swiss-Hungarian Chamber of Commerce (Swisscham)

In December, Swisscham had a wonderful evening celebrating the end of the year with our members and partners in the glorious ambiance of the elegant W Hotel. Swisscham Hungary has many exciting plans for 2025 and looks forward to another successful year of partnership and community building.