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ETF Investment Plans Could Reshape Market

Small investors in Hungary have been watching the emergence of low-cost investment plans in the West with envy. Now, the ice has broken, with two service providers offering an alternative for conscious long-term savers using exchange-traded funds or ETFs.  15

Cybercrime Resilience: Survey Calls for Collective Effort

Hungarian society continues to underestimate the threat posed by cybercrime. According to a recent Mastercard study, cybersecurity knowledge barely exceeds 1.5 on a four-point scale among the most digitally adept age group.  16 BUSINESS

PerformanceBus Drives Away With European Arts Award

Economic Neutrality Paying Off

Hungary’s approach to investment promotion is economic neutrality and connectivity put into practice, strategies that are already delivering tangible results for the economy, says Hipa CEO István Joó. 10

A traveling bus initiative by Budapest’s Trafó House of Contemporary Arts to encourage artistic encounters and create more access to modernday art and performance across Hungary has been awarded a European Award by France’s Art Explora and the Académie des beaux-arts.  21

Further Tax Breaks to Moms, Pensioners, but who Will Pay?

Prime Minister Viktor Orbán had good news for mothers in Hungary in his “State of the Nation” address on Feb. 22, when he announced “Europe’s biggest program of tax cuts” to encourage working women to have children.  3

Economic Optimism up, With Reservations

Local bosses are optimistic about the global and national economic outlook for 2025, but confidence in their own revenue growth remains at a record low, PwC’s 14th Hungarian CEO Survey finds.  12

EDITOR-IN-CHIEF: Robin Marshall

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

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THE EDITOR SAYS

MIHÁLY VARGA ONCE AGAIN SUCCEEDS GYÖRGY MATOLCSY

After 12 years as Governor of the National Bank of Hungary (MNB), György Matolcsy has stood down from his role to be replaced by Mihály Varga, a long and faithful lieutenant to Prime Minister Viktor Orbán, and most recently, his Minister of Finance. If you are a relative newcomer to Hungary and from a tradition where the relationship between a country’s central banker and the government is more arm’s length, shall we say, you should know this is not the first time an ally of the prime minister has stepped out of a cabinet role and into the halls of the MNB.

When Viktor Orbán was returned to power in a landslide election in 2010, the governor of the MNB was András Simor, who had been appointed to the role in 2007. Simor was many things: an economist who had served as board chairman of the Budapest Stock Exchange and the chairman and office managing partner of Deloitte Hungary. He would go on to be the vice president for policy at the European Bank for Reconstruction and Development. He would eventually become its senior vice president, chief financial officer and chief operating officer.

What he was not was Orbán’s man, a fact that became an evident frustration to the prime minister, who believed the government and the central bank had to work together to right the storm-wracked economy in the wake of the financial crisis and the subsequent Great Recession. Simor was attacked in the press, and his salary was cut, but he refused to resign early, and Orbán had to bide his time. Simor’s term ended in 2013, and he was replaced by Minister of National Economy György Matolcsy, once described by Orbán as his “right hand.” Matolcsy was succeeded as minister by Varga.

At first, the government and central bank seemed to move in lockstep. Matolcsy, who once complained that others could

not see the economy’s potential “with my eyes” and predicted a “Hungarian fairytale” of a recovery, insisted the MNB was independent, but its operation was clearly much more to the liking of Orbán. Matolcsy’s first six-year term was extended. But he has become more openly critical of government policy, and in particular, of Márton Nagy, who had been a deputy governor under Matolcsy until surprisingly resigning to become chief economic advisor to Orbán, and from 2022 Minister of Economic Development, later given expanded duties as Minister for National Economy from 2024.

There was, briefly, some suggestion that Matolcsy was exploring the possibilities of seeking a third term. Whether that was ever seriously considered by him or anyone else, the idea was soon squashed, Orbán pointedly saying that rows between the governor and his ministers would “come to an end in March” when the second term expired.

And so Matolcsy has, again, been replaced by Varga. I can’t pretend to know the new governor, though I have introduced him at several international events I was moderating. He was always charming and struck me as having a self-deprecating sense of humor. I remember him making a joke at an AmCham event years ago during the Pénz7 financial education week (the latest version of which was running in the week this edition of the paper went to print). He agreed to teach a class in a Budapest school and assumed he had done OK as he was still the finance minister. Like his predecessor, Varga has vowed to maintain the central bank’s independence. I suspect that, unlike his predecessor, we won’t be invited to enjoy Hungarian fairytales or see the economy through his eyes.

Robin Marshall Editor-in-chief

THEN & NOW

In the black-and-white photo from the Fortepan public archive, taken in 1954, a then-new Ikarus 30 coach stands in front of the Grand Hotel Galyatető in Mátraszentimre (110 km northeast of Budapest by road), with a Skoda 1101/1102 Tudor sedan in the background. In the color image from state news wire MTI, captured on Feb. 27 this year, a 72-year-old Ikarus 30, one of the most valuable pieces in the Transport Museum’s collection, is showcased in front of the Kossuth Museum Ship in Budapest. While the vehicle is undergoing extensive restoration, it can already cover short distances.

Photo by Gyula Nagy / Fortepan

Photo by Tibor Illyés / MTI

1News

PM Orbán Gives Further Tax Breaks to Moms, Pensioners, but who Will Pay?

Prime Minister Viktor Orbán had good news for mothers in Hungary in his “State of the Nation” address on Feb. 22, when he announced “Europe’s biggest program of tax cuts” to encourage working women to have children.

Net Effect of new tax measures (% of GDP)

feel financially secure having children.”

Most notably, the package will exempt mothers with two and three children from personal income tax for life. An extension of the existing benefit for women with four or more children, this will be introduced in phases, beginning in October this year for women with three offspring. For those with two children, the exemptions will commence from January 2026 for women under 40, continuing until 2029 for those aged 60 and above.

Pensioners will also benefit from this latest round of giveaways, being eligible for VAT refunds on purchases of vegetables, fruit and dairy products up to a capped sum. Declaring the moves “a world sensation,” Orbán opined, “I am also convinced that more children are born when mothers can

Opposition politicians were quick to denounce Orbán’s entire speech. Tisza Party leader Péter Magyar accused the prime minister of avoiding such issues as the systematic destruction of state healthcare, the shortage of nurses and “the many trillions of forints of EU funds missing due to his family’s industrial-scale corruption.” Meanwhile, analysts worked overtime to assess how these measures would be funded. The prime minister, ever optimistic, claimed that an “accelerating economy, business support programs and full employment” could generate the necessary sum “while reducing the budget deficit and the national debt.”

Fine words, except economic growth in the final quarter of 2024 was an anemic 0.1%, according to Central Statistical Office adjusted data. Independent economists forecast 2-2.5% as a better-case scenario for this year and were warning before Orbán’s speech that the government was likely to overshoot its target for the budget deficit of 3.7% of GDP.

Matolcsy Says Goodbye as Varga Takes Reins at MNB

After completing his second, six-year stint as governor of the National Bank of Hungary (MNB), György Matolcsy stepped down, allowing former Minister of Finance Mihály Varga to take the helm as of March 4.

Paying tribute to MNB staff at a ceremony to mark his departure on Feb. 27, the outgoing governor presented a book summarizing what he termed “the challenges, achievements and successes of the central bank” under his leadership, according to a statement on the MNB’s website.

Titled “Twelve Years in the Service of Stability,” a period somewhat immodestly described by Matolcsy as “the golden age of the central bank,” the volume recalls the MNB’s efforts to preserve the stability of the domestic economic and financial environment in difficult times, including Hungary’s emergence (in part) from the financial crisis of 2008-9 and

the COVID pandemic. Matolcsy also faced a rapid rise in the price of energy worldwide after the Russian invasion of Ukraine.

“In October 2022, the central bank prevented a significant depreciation of the forint with a crisis management measure, which could have led to a euro exchange rate of up to 500-700 forints,” he said in what was presumably a reference to the bank’s decision to raise the overnight deposit rate to 18%.

Matolcsy’s leadership has not been without controversy, however, with critics noting the loss in value of the forint. When appointed, the Hungarian currency traded at HUF 295 to the euro; on Matolcsy’s departure, it hovered around HUF 400, a 35.6% loss in value against the common currency.

In recent years, the erstwhile governor has also had an ongoing feud with Márton Nagy, Minister for National Economy and formerly deputy governor

of the package will be effective in the second half of this year, the effects on the budget are likely to be a modest HUF 118 billion, or just a 0.13 percentage point increase, in outgoings. However, the impact will mount in subsequent years as more measures take effect (see tables).

“As a result, the deficit in 2025 under a no-policy change scenario would reach 4.7% according to our calculations, only moderately higher than the [OTP] 4.5% estimation before the announcement,” Gergely Tardos, senior economist at OTP Bank, told the BBJ

Nevertheless, to reach the 3.7% target, the government would still necessitate cuts in state spending.

“We are not aware so far of any new measures to counter the negative effect of the VAT refund and tax exemptions for mothers of three, but as mentioned earlier, the effects this year are relatively small compared to later years,” Tardos argued.

He cautioned, however, that other measures, such as the one-off, six-month extra salary for law enforcement and military employees, will also comprise a significant budgetary outlay next year.

An analysis by S&P Global Ratings stated that the government was taking “economic risks” with pre-election spending promises that make it harder to reduce the budget deficit and stabilize the forint.

Likely Budget Impact

Asked by the Budapest Business Journal about the likely results of the measures, OTP Bank noted that since only a part

Tardos also noted that the bank’s calculations were partially based on government figures and that, unlike many other analysts, the estimations were based on the net effect of the measures.

“That means that we accounted for the fact that the extra income for households will increase consumption and [hence] the budget’s VAT revenues. For this reason, our numbers may be lower than those from other sources,” he said.

Net Effect of new tax measures (billion HUF)

of the MNB under Matolcsy, for the minister’s Keynesian approach to fuelling economic growth using cheap credit.

The irony here is that Matolcsy’s own so-called “unorthodox economic policy” from 2013-2020 was based on precisely the same Keynesian theories to kick-start growth.

György Surányi, himself MNB governor twice between 1990-2001, accepts that easy-credit policies were justified in the first years of Matolcsy’s tenure but lambasted his successor for continuing them well beyond sustainable limits.

This was especially true from 2017 when the economy was growing at some 4.5% annually, a performance impossible to sustain given Hungary’s productivity growth of just 1-1.2%, Surányi argues, and it was such a policy that helped lead to inflation well beyond the regional norm in the crisis of 2022-23.

But what of the MNB under Varga’s leadership and with Andrea

Máger appointed as the new member of the rate-setting council?

Gergely Tardos, senior economist at OTP Bank, envisages little change under the current economic circumstances.

“[The MNB’s] room for maneuver has narrowed substantially, given domestic inflation developments, the forint exchange rate, the monetary policy of the world’s major central banks and cautious global risk appetite,” he told the BBJ Further, given that Varga stressed the importance of forint stability during his parliamentary hearing, this “currently leaves no room for easing,” Tardos reasoned.

“We expect the focus will be on longterm yields and the EUR/HUF exchange rate rather than the short-term yield curve. The new governor might change the longterm exchange rate trajectory as well, as in a good scenario, the depreciation of the last few years could be replaced by a more flattish trajectory,” he concluded.

KESTER EDDY

Source: OTP Bank

CTP Signs Built-to-suit Lease With Manufacturer Zoomlion Real Estate Matters

CTP has signed a 10-year built-to-suit lease agreement with Chinese manufacturer Zoomlion to relocate its operations to CTPark Tatabánya. Through the agreement, the Chinese firm will invest EUR 100 million in technology in the factory, while CTP will tailor the existing 35,000 sqm TBN5 logistics building to meet Zoomlion’s needs for producing scissor and boom lifts.

In addition, the leading Chinese manufacturing company will be able to utilize outdoor areas, newly constructed service facilities, and a 20,000 sqm testing zone in adjacent areas.

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

A construction and agricultural machinery manufacturing constructor, Zoomlion Heavy Industry Science and Technology has been present in Hungary since 2021. This new development represents a significant milestone in the company’s local growth trajectory. The location of CTPark Tatabánya, with connectivity to major transit routes and its proximity to Budapest, Bratislava, and Vienna, was a critical factor in the decision. Another key consideration

Significant Growth in Budapest Hotel Market

CBRE anticipates the delivery of 800 Budapest hotel rooms in nine hotels for the year. Further ongoing investments will add 3,700 rooms to the Budapest hotel market in the coming years. Nationwide, 2025 could bring the delivery of 10 hotels and 1,000 additional rooms according to the consultancy’s database.

This includes the first Marriottbranded hotel in the Lake Balaton area with the delivery of the 102-room Le Meridien in Balatonfüred and the first branded hotel at Debrecen Airport, the 73-room Ibis Styles.

“In terms of new hotel openings in Budapest, 2024 fell short of the record year 2023, when nearly 1,500 hotel rooms entered the market,” comments CBRE. “However, that year was exceptional as several developments were delayed due to COVID, resulting in the opening of 10 hotels.”

Three hotels opened in Budapest in 2024 as guest nights surged to nine million, representing a 10% rise. The delivery of the fivestar Kimpton Hotel has extended the number of five-star and fivestar superior hotels in Budapest to 21, totaling almost 4,000 rooms. Budapest is thus catching up

with Vienna, where 25 five-star hotels offer more than 4,500 rooms.

Beyond Budapest, five new hotels opened in 2024, representing 434 rooms. The first Hilton-branded hotel outside the capital delivered 101 rooms with the opening of the Hilton Garden Inn Debrecen City Center. The development is seen as capitalizing on a growing business hub and center for automotive andbattery manufacturing.

Looking across a two-year time horizon, CBRE anticipates the addition of a further 11 hotels consisting of 1,880 rooms that are currently under construction and expected to be delivered between 2026 and 2028. An additional 11 hotels comprising 1,828 rooms are in the planning phase. If all these projects come to fruition, the Budapest hotel market could expand by 3,700 rooms by the end of 2028. However, the countryside pipeline appears to be shrinking, with around 1,000 rooms at the planning stage and expected to be completed by the same year.

The average room occupancy rate for Budapest was 67.9% for 2024. Budapest Airport reached

was the logistics park’s position within the rapidly growing industrial zone of the Tatabánya-Komárom region, one of Hungary’s fastest-expanding economic hubs. That will allow the Chinese firm to “fully focus on our production and logistics activities,” said Yongxiang Wang, co-president of Zoomlion.

“CTP not only develops and retains ownership of its real estate portfolio over the long term but also delivers exceptional property management services.

This includes providing sustainable energy solutions cost-effectively and ensuring efficient maintenance with rapid response times, guaranteeing top-quality service for its tenants,” the firm said.

High-quality and Sustainable

“We chose CTPark Tatabánya as the base for our operations because CTP offers highquality, sustainable properties and services, allowing us to fully focus on our production and logistics activities,” Wang noted.

“We are excited to fully leverage our newly established localized factory to provide products and services to both local and European customers with greater efficiency and convenience. This strategic move will not only enhance our operational capabilities but also strengthen our service delivery in the region,” he commented.

CTP owns and operates more than 6 million sqm of space in CEE and has a total of 1.8 million sqm under construction and a landbank of around 26.4 million sqm.

“We leased a record 1.2 million sqm in 2024, 70% more than the last year. This illustrated the continued strong demand in CEE and the robust growth potential of the business-smart region in Europe. As the supply-demand balance remains healthy, we realized robust rental growth in the year,” commented Remon Vos, the founder and CEO of CTP.

a peak with more than 17.5 million passengers, exceeding 2019 levels by 8.7% and representing a 19% yearon-year growth. The development of another terminal has been announced at the now governmentowned airport to increase annual passenger traffic to 20 million by 2030. The second Budapest airport hotel to be developed by Wing will open this year under the Tribe

brand with 157 rooms. The picture also looks rosy beyond Hungary.

“The hospitality industry in CEE and SEE region has proved its resilience and ability to rebound quickly. […] We have seen a steady growth in the number of tourists visiting the region, as well as a rise in the number of luxury and boutique hotels and expansion of existing hotel chains on the CEE hotel markets,” CBRE notes.

GARY J. MORRELL

The new Tribe Hotel, the second hotel at Budapest Airport, is due to open this year.

The existing TBN5 building is being tailored to suit Zoomlion’s needs in a 10-year deal.

Orbán Hails Trump for ‘Standing for Peace’ in Oval Office Row Roundup Crisis Ukraine

Minister of Foreign Affairs and Trade

Péter Szijjártó met with U.S. Secretary of State Marco Rubio on March 4 to discuss “the urgency of ending the war in Ukraine and ensuring lasting peace and stability in the region,” according to the U.S. Department of State.

In a statement following the meeting, Szijjártó said the United States maintains that the war in Ukraine must not continue despite ongoing conflicts and challenges. He said his U.S. counterpart had emphasized that peace negotiations were the only viable path to ending the conflict.

“I told the Secretary of State that Hungary fully supports the efforts of the U.S. president and his administration,” Szijjártó added.

“The secretary of state informed me that the U.S. has temporarily suspended military aid to Ukraine,” Szijjártó said, which the European Union would address during a special summit on March

6.

Regarding that meeting, Szijjártó affirmed that Hungary would not support any decision that could contribute to prolonging the war.

“We are fully committed to advocating for peace and negotiations,” the Hungarian foreign minister underlined.

Aid on Pause

On March 3, U.S. President Donald Trump temporarily halted all American military aid to Ukraine. “President Trump has been clear that he is focused on peace,” a White House official said. “We need our partners to be committed to that goal as well. We are pausing and reviewing our aid to ensure that it is contributing to a solution.” This was followed by the States cutting off its intelligencesharing with Ukraine on March 5.

The timing of the pause suggests it was at least partly precipitated

by the sudden and very public breakdown in relations between Trump and Ukrainian President Volodymyr Zelensky during a meeting in the Oval Office on Feb. 28.

Zelensky had come to the White House ostensibly to sign a deal granting the United States rights to certain rare earth mineral deposits in his country in exchange for securing continued support. However, the press “spray” before the main closeddoors meeting (which, in event, never took place) descended into little more than a shouting match, with Zelensky berated for his perceived lack of gratitude by both Trump and Vice President J.D. Vance.

While most Western leaders were horrified by the public rift between supposed allies, Prime Minister Viktor Orbán applauded Trump in a post on X on February 28.

“Strong men make peace, weak men make war,” Orbán said. “Today, President Donald Trump stood bravely for peace. Even if it was difficult for many to digest. Thank you, Mr. President!”

Just before the March 6 EU summit in Brussels, Orbán was invited to

“I am convinced that the European Union, following the example of the United States, should enter into direct discussions with Russia on a ceasefire and sustainable peace in Ukraine. […] It has become evident that there are strategic differences in our approach to Ukraine that cannot be bridged by drafting or communication.”

Paris on March 5 by French President Emmanuel Macron to discuss the war.

In light of America’s recent policy reversal with regard to Ukraine, Macron had endeavored to maintain European unity on the matter, organizing a pair of emergency

meetings in Paris among European allies of Ukraine, which representatives from Hungary notably did not attend.

European Defense Loans

In addition to support for Ukraine, the EU summit will also concern European defense. To this end, European Commission President Ursula von der Leyen proposed sending loans of up to EUR 150 billion to EU governments to help them boost military spending.

The loans could be used to procure artillery, missiles, ammunition, drones, and anti-drone systems while also enabling EU countries to supply weapons to Kyiv. The measure would allow governments to “massively step up their support to Ukraine,” von der Leyen added. However, Orbán believes that EU countries should take a different approach.

“I am convinced that the European Union, following the example of the United States, should enter into direct discussions with Russia on a ceasefire and sustainable peace in Ukraine,” Orbán said in a letter sent to European Council President António Costa on March 1.

“It has become evident that there are strategic differences in our approach to Ukraine that cannot be bridged by drafting or communication,” Orbán wrote to Costa.

NICHOLAS PONGRATZ

In this photo released by the Hungarian Ministry of Foreign Affairs and Trade (KKM), U.S. Secretary of State Marco Rubio (left) meets with Minister of Foreign Affairs and Trade Péter Szijjártó in Washington on March 4, 2025.

Photo by KKM / MTI

Ewelina Zawadzka: Controlling the Controllable, Embracing the Change

The Budapest Business Journal speaks with Ewelina Zawadzka, general manager of the Coca-Cola Company in Hungary since July 2023, about how diverse teams foster growth and innovation, the power of collaboration, and the need for curiosity.

BBJ: Coca-Cola has a long history and strong corporate culture. How do you balance staying true to its legacy while bringing your vision and leadership approach to the role?

Ewelina Zawadzka: There are many things I love about Coca-Cola. The positive approach of our corporate culture is something that resonates so well with me. I genuinely believe that this kind of “can-do” attitude can turn obstacles into opportunities for growth. The multicultural environment is another huge draw for me. These diverse teams foster growth and innovation; it is a source of strength that we have a small but very well-trained team of professionals in our Hungarian office.

We constantly challenge ourselves to do our job even better. By doing so, we can achieve amazing things. We support a collaborative work environment through a network of global connections, insights and experiences. These all make it easier for me to navigate my role as a leader, as I am naturally drawn to the company’s commitment to excellence and leadership, which are central to Coca-Cola’s strategy. Additionally, I believe in the power of collaboration and consider myself a team player, working to build strong, inclusive teams that help drive success while staying true to the company’s legacy.

BBJ: What leadership values do you consider essential for success in today’s fast-changing business environment?

EZ: I would define my core values as authenticity, inclusivity and agility. I’m delighted I found that place in Coca-Cola. Staying true to myself and being honest is an integral part of my personality.

Being inclusive and approachable is very important to me. I pay attention to building good relationships with everybody in the organization. I love working with talented and passionate people. I have a lot of trust in my team, and I want them to be part of the decisionmaking process. Lastly, the world is changing so rapidly around us that I believe agility is a must-have for a modern leader. I always focus on “controlling the controllable” while embracing the changes I have no impact on. When faced with change, my usual routine is to list risks and opportunities and then develop actionable scenarios to tackle the situation effectively. I would also advise everyone in business leadership to stay curious and open-minded and prioritize learning and development. It’s essential to embrace new experiences and be willing to learn and unlearn along the way. I also believe that “magic happens outside of your comfort zone,”

But the true role models for me are women in my family. My grandma became a widow at a very young age, and she raised six kids by herself. My mum finished agriculture school, but her dream was always to cook; she started washing dishes in one of the small local restaurants, and by the time she retired a few years ago, she had become a well-recognized chef with many years of experience. They taught me resilience, independence, and the importance of focusing on long-term goals, and I carry these notions with me every day. CocaCola is committed to providing opportunities for employees to grow and develop, and I am grateful for the support and guidance I have received throughout my career here.

“I’ve been very privileged to work at The Coca-Cola Company for more than 12 years now, and during this time, I had many great bosses and mentors, both male and female. They helped me to shape my leadership style. But the true role models for me are women in my family.”

BBJ: People can often face the challenge of balancing their professional and personal lives. What advice would you give to aspiring leaders navigating this path?

so I would encourage people to embrace new experiences and dive into the business environment, even if it seems challenging.

BBJ: Have you had mentors or role models who inspired you along the way? If so, what were the most valuable lessons you learned from them?

EZ: I’ve been very privileged to work at The Coca-Cola Company for more than 12 years now, and during this time, I had many great bosses and mentors, both male and female. They helped me to shape my leadership style.

EWELINA ZAWADZKA is an experienced FMCG leader with over 15 years in management, covering areas such as media and digital, brand marketing, business development, and commercial operations. Before becoming the general manager for

EZ: I wish I had a golden recipe for balancing personal and professional life, but I don’t, and I wouldn’t be my honest self if I claimed otherwise. Based just on my personal experience, self-awareness helps a lot. It’s essential to have a clear understanding of your life priorities and what drives you: for some people, it might be money; for others, family, status or personal development. Only in our own heads can we decide whether some things are worth fighting for or sacrificing. That clarity helps us make decisions and maintain balance authentically. But one thing is for sure: an inclusive culture that fosters belonging and provides access to equal opportunities is key to being able to achieve this balance. I am lucky that these are all among the key principles at Coca-Cola.

The Coca-Cola Company in Hungary, Zawadzka led the company’s operations in Norway and Iceland for more than two years, where she drove strategy and commercial initiatives. Her diverse career also includes roles at major companies like L’Oréal and Nivea.

BENCE GAÁL

Ewelina Zawadzka

Zwack Unicum Joins National Tree Planting Day Initiative

As part of its commitment to sustainability, Zwack Unicum Nyrt. joined the inaugural National Tree Planting Day as an official partner. The event, held on Saturday, March 1, encouraged individuals, businesses, and communities across Hungary to plant trees in a collective effort to combat climate change and promote urban reforestation.

individuals, families, communities, and businesses to plant trees nationwide.

Zwack Unicum previously supported similar projects, including urban micro forests in Budapest and Kecskemét. The company says it sees tree planting not only as a way to improve air quality and urban biodiversity but also as a symbolic gesture toward future generations.

The inaugural National Tree Planting Day coincided with the first day of meteorological spring (astronomical spring starts on March 20 with the vernal equinox). Launched by the 10 Million Trees Foundation, the movement calls on

The collective effort is driven by the belief that small, tangible actions can contribute to a greener future. National Tree Planting Day seeks to establish a new tradition in Hungary, encouraging widespread participation every year on the first Saturday of March.

Participants from all walks of life, families, students, corporate teams, and community groups, took up shovels and planted trees in their gardens, public parks, and urban spaces. The goal is to maximize the number of trees planted in a single day, supported by the foundation’s botanical and

ecological expertise. The initiative has garnered widespread backing from well-known public figures, artists, municipalities, and corporations.

Urban Reforestation and Micro Forests

Zwack Unicum has a history of supporting urban reforestation projects in partnership with 10 Million Trees, including the planting of Miyawaki micro forests at Boráros tér and Nehru

Transfer Pricing Controls: NAV Hitting Targets With Pinpoint Accuracy

Tax controls involving transfer pricing are increasingly common in Hungary, based on the structured data reporting required by companies since 2022. Transfer pricing played an essential part in last year’s Hungarian Tax and Customs Administration (NAV) control plan, and all signs are that NAV is increasing this pursuit.

SÁNDOR HEGEDÜS

The transfer pricing documentation obligation, in other words, the regulation on recording related-party transactions, affects almost 20,000 companies in Hungary. Significant changes entered into effect in 2022. Transaction and partner-level transfer pricing data now have to be reported in the company tax return, requiring companies to submit substantially more complex and structured data reports to the tax authority than before.

NAV has a highly accurate means of control through the structured collection of transfer pricing data, which provides it with up-to-date information on the players’ pricing, profitability, and profits. This enables cross-checking

and detecting systemic errors while supporting risk analysis, making a significant overall contribution to more effective control activity. With these methods, the tax authority can now use algorithms to automatically filter the data to identify transactions where the pricing or volume differs from the norm.

The first year following the introduction of the amended rules was considered a leniency period; errors and internal discrepancies in data reporting did not in themselves result in a fine, except for significant tax differences. This period is over, as shown by the increased number of controls and the sanctions imposed.

NAV has not only learned to process the received data and utilize its new control tool but also seems to be enjoying its use.

This means the data, the analysis methodology, and the technology

are all available, and the tax authority is now devoting energy to developing its team of experts.

All Transactions in the Crosshairs

Based on feedback from the affected companies, it can be determined that NAV is using the new control method to focus on more than just larger, multimillion transactions. Thanks to the structured data reporting-based risk

Park in Budapest, and the Pentagon Forest in Kecskemét. These compact, densely planted green spaces are designed to improve urban air quality and biodiversity while absorbing industrial-scale levels of CO₂ within two to three decades.

Beyond its direct ecological benefits, tree planting is a symbolic act of long-term responsibility. By engaging in the initiative, Zwack emphasizes that trees planted today will contribute to a healthier, more livable environment and leave a lasting legacy for future generations.

“At Zwack Unicum, we believe that the actions we take today shape the future, whether it’s the legacy of a family-owned company or the planting of a single tree,” says Dávid Gábor Kovács, marketing director of Zwack Unicum Nyrt.

“As a responsible business, we are committed to sustainability and environmental protection, and participating in National Tree Planting Day is more than just a corporate initiative for us. It’s a gesture toward future generations, a reminder that longterm values are built through collective effort. The trees we plant today will stand for decades, providing shade, purifying the air, and symbolizing our dedication to a sustainable future,” Kovács adds.

analysis, all transactions are now in the crosshairs. It is also apparent that, in addition to examining the quality of the data reporting, tax controllers are also endeavoring to gain a deeper understanding of the transactions and the participating parties.

It should also be stressed that control is almost certain if an affiliated undertaking consistently generates losses while the whole group is profitable. While this had always been a potential trigger for tax control, since introducing the new regulations, NAV has been attributing even greater weight to such conditions.

Experience shows that auto industry suppliers receive higher-thanaverage attention in transfer pricing controls. Pharmaceutical and industrial manufacturing companies are also subjected to more frequent controls, as are Hungarian companies with distributors in foreign countries.

The related penalties have also become more stringent since 2023: they can now be imposed separately per record, almost on the level of individual transactions. A company that fails to prepare records is fined HUF 5 million, which rises to HUF 10 million for repeat offenders. These penalties may even be imposed more than once per tax year. This is combined with the penalty that can be imposed if a tax shortage is determined (up to 50% of the shortage) and the late penalty.

Sándor Hegedüs, director of Andersen Adótanácsadó Zrt.

Zwack staffers at a previous tree-planting event in Budapest.

Hungarians See AI as Most Defining Technology of Next Decade

A newly conducted global survey that included input from Hungary for the first time has revealed that while Hungarians remain somewhat skeptical about emerging technologies, more than half still recognize artificial intelligence as the most influential technological advancement that will shape the next 10 years.

The latest Bosch Tech Compass, a survey conducted every two years, was carried out in the fall of 2024 and aimed to provide a more detailed picture of how different nations perceive technological development and its role in society.

The findings indicate that for 53% of Hungarians, AI will be the dominant technology of the coming decade. By comparison, 72% of German respondents and 67% of global participants expressed the same view.

Although artificial intelligence ranks as the most significant technology in the eyes of the majority, the survey highlights an underlying ambivalence in Hungarian attitudes toward emerging innovations.

While 65% of respondents globally expressed enthusiasm about understanding how technology works, in Hungary, this figure dropped to 56%, suggesting a more cautious approach to engaging with new developments.

Furthermore, 26% of Hungarians stated that they find the pace of technological change overwhelming, indicating that a significant portion of the population struggles to keep up with rapid innovations and often finds it difficult to adapt.

According to Teodóra Bodó, director of communications and government affairs at Bosch Hungary and the Adriatic region, the findings underscore

the importance of providing people with the necessary knowledge and tools to navigate an increasingly digital world.

Unprecedented Acceleration

“The speed at which technology is advancing, particularly artificial intelligence, has accelerated at an unprecedented rate over the past few years. As a company that plays a major role in technological innovation and as one of Hungary’s largest employers, we felt it was essential to conduct this survey domestically. Our goal is to assist people in understanding these changes and help them develop the skills needed to adapt to the challenges and opportunities of a rapidly changing world,” she explains.

When it comes to individual technologies, the survey found that AI, 3D printing, and 5G connectivity are among the most widely recognized innovations in Hungary.

Industrial robots emerged as the second most significant technology among Hungarian respondents, with 35% selecting

and enhancing everyday life. However, they also expressed concerns about the potential drawbacks that could arise from these advancements.

The most commonly cited risks associated with technological progress included corporate monopolies (52%), cybersecurity threats (50%), and job losses due to automation (48%).

Additionally, 59% of global respondents identified data security issues as one of the most pressing challenges that will need to be addressed in the future.

Hungarian Paradox

According to Bodó, the survey highlights a key paradox in how Hungarians view artificial intelligence and technological advancements more broadly.

“This research provides an insightful look into Hungary’s relationship with technology and artificial intelligence. What we see is a clear sense of ambivalence: while AI is expected to bring the most significant benefits, it is also one of the areas that generates the greatest fears.”

“This research provides an insightful look into Hungary’s relationship with technology and artificial intelligence. What we see is a clear sense of ambivalence: while AI is expected to bring the most significant benefits, it is also one of the areas that generates the greatest fears,” she notes of the results.

them as highly relevant, considerably higher than the 17% global average. The 5G network, which plays a key role in digital infrastructure and connectivity, was ranked as the third most important technology by 32% of Hungarians, which aligns with global trends.

Despite the sense of hesitation that appears in some aspects of the survey, the overall perception of technological progress in Hungary remains primarily positive. The research found that 60% of Hungarians believe that technological advancements will create new opportunities, while only 16% see them as a significant source of risk.

These figures are closely aligned with global attitudes, suggesting that while Hungarians may be more skeptical than some of their international counterparts, they still recognize the benefits of innovation.

A majority of respondents agreed that technological progress contributes to making work more efficient, improving productivity,

“Given that one-quarter of Hungarians admit they find it difficult to keep up with the speed of technological change, we see an even greater need for support in this area. Our role is to help people use the latest technological developments safely and effectively,” Bodó says.

“Since 2017, we have been sharing brand-neutral educational content on our IoT blog, and since

2021,

our podcast series has been dedicated to exploring how technology and digitalization shape everyday life,” she adds.

The Bosch Tech Compass survey was conducted by Gesellschaft für Innovative Marktforschung mbH (GIM) and included participants from seven countries, gathering input from more than 11,000 respondents aged 18 and above. The study took in 1,000 respondents each from France, Germany, Hungary and the United Kingdom, and 2,000 participants from each of Brazil, China, India, and the United States.

The Hungarian respondents were aged between 18 and 69. Throughout the survey, Bosch was not disclosed as the research sponsor in an attempt to ensure an unbiased approach to the data collection and analysis.

GERGELY HERPAI

Teodóra Bodó, director of communications and government affairs at Bosch Hungary.

Heart Disease Remains Leading Cause of Death in Hungary

Cardiovascular diseases continue to be the leading cause of death in Hungary, accounting for every second fatality. Meanwhile, advanced untreated vein-related cases also take a high toll. Hungary currently ranks among the top European countries for the number of amputations performed annually. But steps can be taken to improve those figures, a specialist tells the Budapest Business Journal

valves fail, blood stagnates, leading to increased pressure, swelling, and, in severe cases, the development of deep vein thrombosis, a condition that can be life-threatening if a blood clot travels to the lungs.

Women at Risk

“The heightened risk of thrombosis in women is closely linked to hormonal functions,” explains Tersztyánszky.

“Certain female sex hormones and their fluctuations due to menopause or pregnancy can alter blood composition in a way that increases clot formation. During pregnancy, the added pressure on lower limb veins also contributes to the condition,” she notes.

Lifestyle Modifications

However, experts agree that lifestyle modifications can significantly reduce the risk of vascular diseases. By adopting a healthier lifestyle, avoiding key risk factors, and undergoing regular medical screenings,

individuals can prevent the onset of vascular disease. Early detection and timely intervention can also reduce the likelihood of severe complications, including limb loss.

For individuals with venous disease, avoiding prolonged standing with heavy loads or engaging in activities that exert excessive pressure on the veins, such as weightlifting, is crucial. Standing for long periods in warm environments should also be minimized, as it exacerbates congestion in the veins.

Professions such as chefs and kitchen staff, often working in high-temperature settings while standing for extended periods, are particularly at risk. In such cases, periodic breaks to take a walk or perform stretching exercises can improve circulation. Those with desk jobs should consider elevating their legs regularly to alleviate venous congestion. Compression stockings prescribed by a doctor can also help, but tight clothing restricting circulation should be avoided.

In the case of atherosclerosis, daily walks can promote circulation and slow disease progression. Maintaining a heart-healthy diet is another crucial step in preserving vascular health.

“Consuming fiber-rich foods supports digestion and helps reduce the buildup of waste materials in the blood vessels. Reducing salt intake is also important, as excess sodium causes the body to retain water, increasing blood pressure and contributing to vein damage,” advises Tersztyánszky.

The prevalence of arterial, venous, and vascular diseases is alarmingly high in Hungarian society, warns Dr. Rita Tersztyánszky, an internist and angiologist at private healthcare provider Affidea Hungary. Despite the high mortality rate and the number of amputations, these conditions can often be prevented through proper lifestyle choices, regular screenings, appropriate treatment, and continuous monitoring, she says.

One of the most visible symptoms is varicose veins, which affect four in 10 people in Hungary. While society may dismiss it as a cosmetic issue, it can lead to serious complications and even death if untreated.

Varicose veins predominantly affect women and are influenced by several risk factors, including genetic predisposition and a sedentary lifestyle. Long hours of sitting, coupled with insufficient physical activity, impair venous circulation and increase pressure on blood vessel walls. This excessive strain can damage the valves within the veins, which act as natural regulators. When these

Another threat is atherosclerosis, which affects the arteries, reducing blood supply to the limbs. While it may not initially cause noticeable symptoms, it can be detected early through specialized medical examinations.

It is more common among men and is heavily influenced by lifestyle choices. Key risk factors include smoking, diabetes, high cholesterol, untreated hypertension, obesity, lack of physical activity, depression, sleep disorders, and excessive alcohol consumption.

The disease develops gradually, often without noticeable symptoms, meaning that the condition may already be in an advanced stage by the time warning signs appear. Atherosclerosis can affect multiple organs simultaneously, leading to lifethreatening complications such as heart attacks, strokes, or kidney disease.

A recent international study covering 12 countries found that Hungary has an amputation rate two to three times higher than the Western European average. According to the HunVascData research group, the concerning domestic statistics stem from complex demographic, epidemiological, economic, and broader societal factors.

15 APRIL 2025

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Dr. Rita Tersztyánszky, internist and angiologist.

2 Business

Results of ‘Economic Neutrality’ Measured in Billions of EUR, Hipa Says

Hungary’s approach to investment promotion is economic neutrality and connectivity put into practice, and these strategies are already delivering tangible results for the economy, István Joó, CEO of the Hungarian Investment Promotion Agency, tells the Budapest Business Journal.

BBJ: What were the final FDI figures for 2024?

István Joó: Hipa achieved outstanding results in 2024, with investment capital inflow exceeding the EUR 10 billion mark for the second year running. Our results clearly demonstrate that investment promotion is the first key area where economic neutrality and connectivity are proven successful. Hipa facilitated deals on 77 investment projects, which will inject EUR 10.3 bln of fresh capital into the economy and are expected to create 18,500 jobs.

BBJ: How does 2024 compare with previous years?

IJ: 2024 is the second most successful year in Hipa’s history, trailing only the record-breaking year of 2023, even though Europe experienced a 45% decrease in FDI. Our results reflect a balanced structure, with contributions from both East and West and a record number of Hungarian projects. Another highlight is the prominence of the highest value-added activities.

BBJ: How are these Hipaguided projects distributed across the country?

IJ: Eighty-two percent of new investments target areas outside the capital, highlighting that Hungary awaits investors with high service standards across the country. The tier-two university towns, such as Debrecen and Szeged, show a constant growth pattern and are emerging as alternatives to Budapest.

BBJ: How do the various projects break down in terms of industry sector?

IJ: The investments are spread widely across the economy, targeting 18 sectors. Automotive accounts for nearly 40% of the investment volume, closely followed by electronics, with a 38.7% share of the total investments. Investors increasingly rely on Hungary in innovation and development, as reflected in the strengthening of the BSCs. The sector already contributes 3% to the country’s GDP: the number of positions in R&D has doubled in a single year, and total employment exceeds 110,000. Together with ICT and other R&D activities, 19 projects stand out as primarily innovationfocused investments. These projects will help ensure that Hungary leads in the number of patents registered in the battery industry across Europe.

2024 Data Breakdown

Hipa facilitated investment projects: 77

Total FDI generated: EUR 10.3 bln

New jobs expected: 18,500

Target sectors: 18

Biggest share: Automotive, 40%; electronics, 38.7%

Primarily innovation-focused projects: 19

iFactory in Debrecen to commence production. In addition, operations such as CATL, Lego and Nestlé will either start or expand their capacities.

BBJ: In terms of the Hipa toolbox, are there any new incentives or tax breaks you can offer in 2025?

IJ: Hipa continually refines its investment promotion schemes, but the core principles remain unchanged. Hungary’s competitive tax system, alongside our tailor-made financial incentive offers, will remain central to our strategy. One of our key new initiatives is a series of forums where investors meet local suppliers. A prime example is BYD’s first Hungarian Suppliers’ Forum, which proved a great success.

BBJ: As an agency, Hipa again won significant recognition in 2024; are there any you are particularly proud of?

IJ: Receiving recognition is always an inspiration. In this regard, 2024 was no exception, as our efforts were recognized by Site Selection Magazine, which publishes the Global Best to Invest ranking. For the second consecutive year, Hungary ranked first in Eastern Europe & Central Asia.

BBJ: The German economy on which Hungary relies continues to struggle, and tensions between the U.S. and the EU, the EU and China, and China and the U.S. all seem likely to grow. Does this economic environment concern you?

BBJ: Which are the top contributors in terms of origin country?

IJ: Investment promotion is about combining multiple sources of growth and finding the right balance. This is especially important when Western economies perform poorly. This is why China takes the lead with EUR 5.2 bln, South Korea is second with EUR 2.6 bln, and the countries involved in the Eastern Opening policy overall account for EUR 8.2 bln, or 80% of the total investment volume. At the same time, the largest number of foreign projects, at 10 investments, came from Germany, the country that has been Hungary’s number-one partner for many decades. Hungary aims to become a meeting point for Eastern and Western capital and technology. This is reflected in the diversity of 2024: our country attracted investors from 19 foreign countries across three continents. At the same time, Hungarian-owned companies launched 23 projects in cooperation with our agency, reaching a new high.

BBJ: How do you expect the figures to change in 2025?

IJ: After creating new industrial ecosystems in the Miskolc–Nyíregyháza–Debrecen triangle, we need to strengthen the southern regions. In this regard, BYD’s decision to build its first European car factory in Szeged is a significant milestone. It is also our mission to support R&D projects and Hungarian companies further. 2025 will be crucial for several large-scale projects. We expect BYD’s factory and BMW’s

IJ: Hungary is indeed facing a challenging external environment; this is also why we have a constant obligation to support firms and save jobs. That is precisely the main driving force behind our latest endeavor, the “100 New Factories Program.” Germany’s GDP has been decreasing since 2023, and Europe’s largest economy is expected to remain in recession this year. This is concerning for Hungary, given the close integration of our economies.

2024

Investment Sources

Top investors: China, EUR 5.2 bln; South Korea, EUR 2.6 bln

Total “Eastern Opening” investment: EUR 8.2 bln (80% of total)

Most foreign projects: 10 (Germany)

Number of source countries: 19

Hungarian projects launched with Hipa: 23

Despite the crisis in Germany, German investors launched 28 projects in 2023-2024, securing the top position in the investor country ranking in both years. We hope the new German government will once again prioritize the growth of the German economy and businesses. Many German companies have faced severe losses due to radical economic ideologies. It is also encouraging to see that, today, we have the best relationship with the new American administration in all of Europe, and we also have the best relationship with China. This is an exceptionally good opportunity for Hungary to enter a golden era.

István Joó, CEO of the Hipa

Budapest Airport Deal Skews Hungary’s 2024 M&A Data

Hungary “Sees Best

M&A Value This Decade,” law firm A&O Shearman says in the second headline of its press release looking at the 2024 market; but behind this, as so often, the Devil lurks in the details.

The value of the global mergers and acquisitions market last year totaled USD 3.17 trillion, a 9.3% jump over the USD 2.9 trillion in 2023, the Budapest office of A&O Shearman announced on Feb. 20, citing the global law firm’s M&A Insights 2024 Report.

But while Balázs Sahin-Tóth, head of A&O Shearman Budapest’s M&A practice, was cautious about future hopes, saying in a presentation that “hopefully, [we can] show you some light at the end of the tunnel,” the law firm’s press release highlighted the seemingly fantastic performance of the local market in 2024.

The value of M&A transactions in Hungary last year amounted to USD 4.75 billion. This is barely a drop in the vast ocean of big-ticket deals globally, but it is an astonishing 30 times the USD 157 million sum of all deals recorded within Hungary in 2023. What's behind this astonishing surge?

The answer, as Sahin-Tóth explained to the media, is almost entirely down to one deal: the joint acquisition in June 2024 of Budapest Ferenc Liszt International Airport’s operating concession by Hungarian state investment fund Corvinus and international airports operator Vinci Airports.

The deal was for a USD 3.2 bln payment plus USD 1.23 bln in net debt taken on by the buyer. In other words, the airport transaction was worth a total of USD 4.43 bln, or a staggering 93% of the year’s M&A total in the country.

Skewing the Figures

As Sahin-Tóth emphasized, the airport sale wildly skewed the overall market result and represented “one of the largest Hungary M&A transactions in years.”

It also left a total of USD 320 mln spread across 56 deals to make up the remaining 7% of the total, although Sahin-Tóth pointed out this was still double the USD 156.7 mln total chalked up in 2023.

That year saw 73 transactions across Hungary, meaning the average deal value was a mere USD 2.15 mln, easily trumped by last year’s average (again, not counting the airport sale) of USD 5.7 mln.

In terms of its regional peers, however, Hungary’s market action is relatively modest. Last year, Central and East Europe registered a transaction total of USD 23.1 bln from 1,474 deals. This results in an average deal value (once again stripping out the Budapest airport deal) of USD 12.7 mln, more than double the Hungarian figure.

But what is the basis for the law firm’s cautious optimism, particularly in a world of increasing regulatory vigilance?

The short answer is private equity (PE) and its typical investment cycle.

“Private equity needs to do deals because that’s their business. Typically, they invest for five years, then they want to sell the company at a profit,” Sahin-Tóth argues.

Fund Manager Frustrations

However, fund managers have been frustrated in recent years by lowprice offers in sluggish economies, leaving them “sitting on a lot of money, dozens of portfolio companies, waiting for the right moment to

Draghi Proposals Could Boost European M&A activity

Mario Draghi, the former governor of the European Central Bank, has proposed a package of measures aimed to enhance EU competitiveness which, if enacted, should lift M&A activity, argues

Attila Kőmíves, counsel and head of A&O Shearman Budapest’s EU and Competition law practice.

“One of the key issues that Draghi identifies for Europe is the lack of innovative companies. We have large, established players, but very few, really innovative, globally competitive players,” he says. One exception is Airbus, Kőmíves points out, but Europe has very few Airbuses.

“And that’s a problem. He [Draghi] wants more Airbuses!” he chuckles. One major issue is the size of European companies, which are frequently smaller than their U.S. and Asian rivals and, therefore, less competitive globally.

sell,” he adds. The prevailing lower interest rates will also encourage borrowing and enable buyers to invest, further boosting demand.

At least, that’s the theory. At the same time, global uncertainty has increased. The election of Donald Trump as U.S. President, initially viewed as positive, given his promises to reduce market regulation, has already faded.

“These slides were prepared a month ago, and at the time, it was suggested that we should say Trump is more business-friendly, de-regulating and so on, so business is happy and the pipeline is good,” Sahin-Tóth said in his business presentation.

“Now, I think we have more of a mixed picture because uncertainty and market volatility doesn’t help the industry as a whole, so I will not look into the crystal ball because your guess will be as good as mine,” he admitted.

However, in Sahin-Tóth’s assessment, one elephant in the M&A regional room could be removed if Trump’s moves to bring peace to Ukraine bear fruit.

“The war has put Hungary and the region off the map of investors. It’s why we have not seen big-ticket M&A coming from the U.S. or Western Europe. When the decision-makers decide to invest, the fact that there’s a war in the background doesn’t look good,” he told the Budapest Business Journal in an interview. If or when the war ends, this would likely lead to a premium for the local market.

“Trump seems really keen to agree with Putin, which is probably good from a geopolitical, global security risk perspective. And from a deal-making perspective, without regard to the morality [question], any type of peace is good for deal-making,” he concluded.

One cause of this has been European Commission policy: it has frequently blocked mergers between two innovative companies over fears that the resulting single operation will reduce overall innovation.

Change of Approach

“The Draghi report says, ‘Let’s change that approach and allow the combination because that could be more competitive globally.’ But, to ensure no loss in innovation, we must have these companies commit to R&D spending in Europe,” says Kőmíves.

The trick, he admits, is to ensure that spending ensues. Another proposal is to fine-tune competition rules to facilitate cross-border consolidation in the fragmented European telecoms and military and defense sectors.

“The Draghi Report says two things, and everybody reads into it what they want to read. The telco sector reads it as support for consolidation, which is indeed there. But the way I read it, there is also another section which states that that cannot be at the expense of allowing anti-competitive mergers,” Kőmíves argues.

In his view, the way to resolve the seeming contradiction is to understand the report as encouraging cross-border mergers.

“If [say] Deutsche Telekom grows big in Europe but still faces at least two competitors in every market, which is possible, then we have a scale which is large enough [for global competition], but we still preserve competition in every market,” he says. “That’s how I read the Draghi Report; others might read it differently. It’s a very controversial topic.”

KESTER EDDY

Balázs Sahin-Tóth, head of the M&A practice of A&O Shearman Budapest.

Hungarian CEOs: Optimism for Economic Growth up, With Reservations

Hungarian CEOs are increasingly optimistic about the global and national economic outlook for 2025, but their confidence in their own revenue growth remains at a record low. Those aren’t the only findings revealed in PwC’s 14th Hungarian CEO Survey.

Local business leaders were cheerful overall when asked about growth perspectives. While 70% of respondents foresee global economic acceleration, an all-time high to date in the survey’s history, up to 60% expect Hungary’s economy to pick up. This high level of optimism dips significantly in terms of the outlook of their own companies’ expansion, though, given that just 39% express strong confidence in a positive development.

“The change in confidence about improving economic growth has always signaled the direction GDP will change. The current results suggest that last year’s growth will accelerate,” said Szabolcs Mezei, a partner at PwC Hungary, at a press conference presenting the results of the 14th survey. “Yet, Hungarian CEOs are less confident than ever about their own revenue growth. The growth of some could easily present a problem for many.”

The CEOs surveyed predict Hungary’s GDP will grow by 1.8% in 2025, with inflation at 4.8% and an exchange rate of 415 forints to the euro. By comparison, the National Bank of Hungary (MNB) expects an inflation range of 3.3-4.1% and GDP growth of between 2.6% and 3.6%.

In geopolitical forecasting, Hungarian business leaders count on the RussianUkrainian war to end in 2026, a date they have pushed back year after year. (It is perhaps useful to note that opinions were surveyed between

October and December 2024, before President Donald Trump had even assumed office, let alone kickstarted peace talks with Russia’s Vladimir Putin.) Similarly, the CEOs anticipate Hungary’s adoption of the euro in 2034, which is also a year later than previous predictions.

While the economic outlook is apparently improving, Hungarian CEOs are more concerned than their global counterparts about critical external risks. The biggest challenge remains the skills shortage, with 44% of respondents citing it as a major concern, almost double the global average of 23%.

Worries about geopolitical conflicts (36%) and macroeconomic volatility (38%) remain essentially unchanged from last year, while inflation concerns have eased from 51% to 39%.

Viable Majority

Despite these concerns, 60% of Hungarian CEOs believe their organizations will remain viable for at least the next decade, though only 12% expect still to hold their current CEO position then. Those doubtful about their companies’ longevity cite external pressures such as intense competition (48%), regulatory changes (47%), rising costs (46%), and declining demand (44%).

parliamentary elections, which tend to delay such strategic decisions.

AI Focal Point

AI is increasingly becoming a focal point for Hungarian businesses, with 80% of CEOs reporting efficiency gains from its implementation. Some 38% of Hungarian executives trust AI, which is not only a much higher level than the Central and Eastern European average (19%) but is also a regional record. And yet, even that figure hints at skepticism.

Despite this trust gap, expectations for AI’s impact remain high. Two-fifths of CEOs foresee GenAI-driven profitability gains this year, and nearly half (49%) expect AI to be fully integrated into their technology platforms and workflows.

“It is perplexing that CEOs plan to future-proof their companies with a technology they don’t fully trust. The question is whether their trust in employees’ AI skills offsets their skepticism towards the technology itself.”

“The keys to business success are trust and cooperation,” noted László Radványi, the country managing partner of PwC Hungary. “It is perplexing that CEOs plan to future-proof their companies with a technology they don’t fully trust. The question is whether their trust in employees’ AI skills offsets their skepticism towards the technology itself.”

In contrast, executives with confidence in their company’s longterm viability attribute their optimism to internal factors such as sound strategic decisions (64%), operational efficiency (42%), and workforce preparedness (37%).

The survey also reveals a strong appetite for innovation and restructuring. More than half (55%) of Hungarian companies have developed new products or services in the past five years, outpacing the global average of 38%.

Additionally, 40% have established strategic partnerships, and 38% have expanded their customer base. Regarding revenue sources, Hungarian firms generated 13% of their income from new products or markets and 4% from entirely new business lines last year. Meanwhile, 29% of Hungarian companies plan acquisitions within the next three years, though most aim to acquire competitors rather than enter new industries.

That contrasts starkly with the global trend, where crossindustry acquisitions are more common, Mezei noted. According to the PwC expert, the moderate Hungarian activity forecast may also be due to the upcoming 2026

Sustainability remains a secondary concern for Hungarian CEOs. Only 34% have their personal performance assessed based on sustainability targets, far lower than the global figure of 60%. Additionally, just 13%

of Hungarian business leaders view climate change as threatening their operations.

True enough, some companies have embraced climate-friendly investments, but the primary motivation has been cost savings rather than environmental concerns. Just under half (49%) of companies that made green investments in the past five years reported cost reductions, while only 21% said they saw revenue growth as a result. Regulatory complexity remains the most significant barrier to sustainability investments, followed by economic returns and funding limitations.

“While the undeniable signs of climate change are already seriously affecting actors in the value chain, CEOs do not perceive this as a threat on their time horizon, which is why sustainability is not high on their agenda. In addition to facilitating climate-friendly operations, regulators must also enable businesses to integrate compliance with sustainability requirements into their value choices in a normative manner,” Radványi added.

Szabolcs Mezei (left) and László Radványi present the findings of the 14th PwC Hungarian CEO Survey.

Varga Sworn in as MNB Governor by Sulyok

Mihaly Varga was appointed to a six-year term as Governor of the National Bank of Hungary (MNB) by Hungary’s President Tamás Sulyok at the Sándor Palace on Monday, March 3.

The appointment of the governor is made by the president of the republic based on the proposal of the prime minister, after a hearing before the Parliamentary Economic Committee, which was held in the Economic Committee of the Parliament in the Kálmán Tisza Hall of the Parliament on Dec. 16, 2024.

Before receiving his former letter of appointment from Sulyok, Varga swore an oath on the Fundamental

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Law, promising to exercise his office for the benefit of the Hungarian nation. Varga was one of the longestserving ministers in Orbán’s various governments, serving as Minister of Finance from March 7, 2013Dec. 31, 2024. Almost his last act as Minister of Finance was to speak at the plenary session in Parliament during the debate and vote on whether to accept Hungary’s 2025 central budget on Dec. 20, 2024.

Varga also served as deputy prime minister from May 22, 2018-May 24, 2022. By a strange coincidence, his predecessor as finance minister was the erstwhile MNB Governor György Matolcsy, making this the second time the former has succeeded the latter.

According to state news agency MTI, the swearing-in event was attended by Prime Minister Viktor Orbán, House Speaker László Köver, the head of the Prime Minister’s Office, Gergely Gulyás,

and the head of the Fidesz parliamentary faction, Máté Kocsis. Varga’s wife, Szilvia Sántha, also attended, standing behind him during the ceremony.

‘Credibility and Trust’

In his first public comments following his appointment, made on the following day, Varga said the national bank would continue a “consistent” and “disciplined” monetary policy under his leadership that “strengthens credibility and trust.”

According to MTI, Varga said that “stability, independence and transparency” would be the basic principles for the MNB’s operation. He promised what he called “firm” responses to any threats to the central bank’s 2-4% inflation target, financial stability, or the sustainable development of the economy.

“Clear communication and consistent action,” would serve to increase confidence in Hungary’s financial system and ensure security for economic players, the new governor promised.

The principles of transparency, professionalism and responsible management would underpin the operations of the central bank, its new head vowed.

Varga pointed to a favorable growth outlook and strong liquidity across households, businesses, and the banking system, saying the economy had solid foundations.

“By keeping inflation persistently low and preserving financial stability, the central bank can support sustainable economic growth,” he insisted.

BBJ STAFF

President of the Republic of Hungary Tamás Sulyok (right) presents Mihály Varga with the official document appointing him Governor of the National Bank of Hungary at the Sándor Palace on March 3, 2025.

Photo by Noémi Bruzák / MTI

Employee Satisfaction Requires Money, Friends, Supportive Boss

In October last year, when GDP growth was stuck in negative territory, Prime Minister Viktor Orbán announced a solution: “Economic neutrality will induce a 3-6% GDP growth. We do not see it yet in the current quarter, but at the beginning of 2025, we can expect explosive growth.” Where do we find ourselves today?

According to detailed data published by the Central Statistical Office (KSH) on March 4, year-on-year GDP growth in Q4 2024 was 0.1% and 0.5% compared to the previous quarter. Thus, the Hungarian economy exited the recession, albeit barely. The positive side was fueled mainly by internal consumption, which grew by 4.3%.

The Hungarian Economic Association (MKT) held its kickoff conference in February, where experts from the National Bank of Hungary, the Ministry for National Economy, market research companies, and banks discussed forecasts for this year. The consensus was that yearly GDP growth would be between 1.8% and 2.5%, while inflation would range between 5% and 5.5%.

Much depends on the evolution of the German economy, the participants added. As for the first quarter, expected to be “explosive” by the prime minister, economists surveyed by Bloomberg at the end of February forecasted 0.5% growth, with 1.4% for Q2. For the full year 2025, respondents expect 2.3% GDP growth and 4.5% inflation.

Compared to the 20% inflation two years ago, a 5% rate sounds bearable, and the long-awaited increase in household consumption seems to be starting. Intrum, in cooperation with market researcher GKI, periodically releases the Intrum Solvency Index (IFI), which measures household capacity for spending.

Contrary to official statistics, the latest IFI, released in January, showed a deterioration in household solvency in Q4 2024, declining by

18% compared to the previous quarter. Gross average income also rose in Q4 to HUF 633,500, an increase of 13.5% nominally and 9.6% in real terms.

High Household Savings

The household savings rate remains among the highest in Europe, which, according to Intrum, indicates that Hungarians are being very prudent about their savings and not optimistic about the future. A broader comparison with European trends paints an even worse picture, says Károly Deszpot, Intrum’s deputy CEO.

“According to Eurostat, consumption based on purchasing power parity shows that Hungary, Bulgaria, Latvia, and Estonia are the worst-performing in the EU. In 2023, Hungarian consumption barely reached 70% of the EU average,” Deszpot said.

The explanation is not necessarily that Hungary has become a poorer country but rather that other countries have developed more rapidly. This year, a slight improvement in household solvency is visible, but the long-term effects of current economic policies remain unclear.

In 2026, Hungary will hold national elections, and usually, during the pre-election period, the government introduces generous spending and incentives, which could boost household spending, Intrum notes.

HR Matters

A monthly look at human resource issues in Hungary and the region

those working in IT, retail, science, and education may expect increases of 20% or more, according to the Manpower survey. Low salary increases make higher employee turnover more likely. However, not everything is about money. Surveys conducted by Big Four consultancy firms PwC and KPMG show that employees value other factors, too. According to PwC, salary is the No. 1 priority, but other equally important factors include:

• Respect for private life;

A cooperative, supportive team; and Professional, supportive leadership

“This year, the gap between employers’ salary offers and employees’ expectations has significantly widened. Employees would only be satisfied with raises above 10%, but according to the latest data, only 5-6% of employers are willing to offer that.”

Although not in the top 10, a clear company vision and strategic transparency were also found to be important to employees.

From the employers’ side, households cannot count on a rapid income expansion this year. HR company Manpower surveyed

Hungarian companies, and the results, released on March 3, indicate that a large majority (78%) planned to raise salaries in the first six months of 2025. However, one-third of them intended to increase wages by only 5%.

Given the forecasted 5% annual inflation rate, employees would need a raise of at least 6% to maintain purchasing power. However, according to the Manpower survey, only 41.4% of companies planning salary increases intend to raise them by 6-10%.

Divurging Wage Expectations

Commenting on the results, Péter Varga, CEO of Manpower Hungary, stated: “This year, the gap between employers’ salary offers and employees’ expectations has significantly widened. Employees would only be satisfied with raises above 10%, but according to the latest data, only 5-6% of employers are willing to offer that.”

Last year, the average salary increase was around 13%, but forecasts for this year are much lower, Varga added. Employees in the telecom, electronics and electrical engineering, accounting, and HR sectors are less likely to receive raises above 5%. At the same time,

KPMG’s “Friends at Work” survey confirms the importance of a cooperative and supportive team. The survey, conducted among 1,000 employees, “clearly shows that workplace friendships improve mental wellbeing and job satisfaction,” said Zita Erős, HR director at KPMG. Four out of five respondents stated that having friends at work is very important, contributing to a greater commitment to their jobs.

These findings are crucial for employers, as fostering workplace friendships can help retain valuable employees. The survey also revealed that 83% of those considering quitting their jobs consider whether they will feel isolated in a potential new workplace. An important question remains: Should employees try to be friends with their superiors?

The KPMG survey indicates that most employees view their superiors as professional mentors rather than friends. This could be linked to less than half of respondents feeling that their team leader takes the time to get to know them personally. However, this is not necessarily a problem. What truly matters, KPMG states, is that employers create an environment where employees feel valued, motivated, and loyal to the company.

BALÁZS BARABÁS

Péter Varga, CEO of Manpower Hungary.

Banking 3 Special Report

How ETF Investment Plans Could Reshape the Hungarian Market

Small investors in Hungary have been watching the emergence of lowcost investment plans in the West that allow stock market participation for all with envy. Now, the ice has broken, with two service providers offering an alternative for conscious long-term savers using exchangetraded funds or ETFs.

“Einfacher geht’s nicht” (“It couldn’t be simpler,”) Dietmar Deffner says repeatedly in Germany’s most popular business podcast whenever he talks about ETF savings plans. His constant emphasis is that investing regularly and starting early in life will secure your wealth. The key to success is buying lowcost ETFs, which are ideal for building diversified portfolios and putting investments on autopilot. Hungary has lagged in adopting structured ETF savings plans, leaving local investors to listen to Deffner’s low-cost ideas with envy. That has changed with K&H Értékpapír (Securities) and Revolut recently launching ETF investment programs.

Hungarian society is notoriously risk-averse, with around just

of households investing in the stock market. In Germany, that figure is closer to 20; in the United States, it is more than 60%.

The appetite to invest in the capital markets has been held back in Hungary partly because of harsh brokerage costs. The low-cost advantage of ETFs was offset by disproportionate service provider fees that limited the ability to regularly save in stock-exchange-traded products for those with moderate amounts to invest.

Enter the two newly introduced investment plans, and a whole new horizon holds the promise of growing a nest egg for all.

Alternative Avenues

The launch of these products couldn’t come at a better time. Governmentissued inflation-linked bonds have dominated household investments in recent years, offering double-digit returns. However, with yields now declining, many investors are seeking alternative avenues for long-term wealth accumulation.

K&H Értékpapír’s solution went live in January 2024 with 50 ETFs to choose from. The product has become popular, as reflected by an 8% boost in the total number of customers.

“We see ETF investing becoming increasingly popular among Hungarian investors,” says István Horváth, head of K&H Értékpapír, a member of K&H Group.

“Our service allows clients to build diversified portfolios with significant cost advantages over actively managed funds.”

A key selling point of K&H Értékpapír’s plan is its cost structure. Unlike more traditional ETF purchases that incur a minimum transaction fee (typically EUR 6.99), K&H Értékpapír pools customer orders, allowing it to waive this fee. Instead, it applies a 0.6% commission per transaction, a rate slightly higher than competitors like Erste, for example, at 0.35%.

However, Horváth argues that the program’s convenience and the ability to purchase fractional shares justify

the pricing. K&H Értékpapír’s Hungarianlanguage customer support and tax reporting integration further differentiate it from foreign fintech competitors.

In contrast to a bank-led approach, Revolut’s ETF savings plan operates under an ultra-low-cost model.

“Our goal is to make investing easy, accessible, and affordable for everyone,” says Rolandas Juteika, head of wealth and trading for the European Economic Area at Revolut. “We do not charge commission fees for recurring ETF purchases, nor do we impose custody fees. Our revenue model allows us to maintain this structure without hidden costs.”

Lowering the Barrier

Revolut’s offering enables users to start investing from just EUR 1, with access to 300 ETFs. Couple this expansive selection with zero commissions, and it represents a significant advantage for cost-conscious investors. “Lowering the barrier to entry is crucial,” Juteika adds.

As stated in a 2023 study, “The ETF Savings Plan Market in Continental Europe,” by extraETF, 7.6 million ETF investment plans with an annual savings volume of EUR 15 billion were executed every month in continental Europe alone by the end of 2023.

“In Hungary, as in the rest of Europe, we see a shift toward long-term, passive investing. With our ETF plan, we expect to accelerate this trend,” Juteika notes. Looking ahead, Revolut is also considering adding Hungary’s TaxAdvantaged Savings Account (TBSz) to its investment platform. “TBSz is part of our roadmap,” Juteika confirms. “Aligning with local tax regulations will enhance our appeal to Hungarian investors, making our platform even more competitive.”

Playing the TBSz card could be a game-changer for Revolut. The uniquely Hungarian scheme offers tax-free investment for a five-year period, an ideal setup for long-term savings like ETF investment plans. Add the ultra-low-cost feature, and competitors may have a hard time keeping up.

Both companies acknowledge the importance of financial literacy in driving adoption. K&H Értékpapír focuses on investor education through local content and support, including making available a video series that explains the importance of investments in an easy-to-understand fashion. Revolut, in turn, integrates learning modules within its app, helping users navigate the investing landscape globally.

As competition intensifies, both players will likely refine their offerings to attract Hungary’s growing base of retail investors. ETF investing in Hungary is finally stepping into the modern era, a long overdue turn of events that should draw more people than ever to start saving regularly and at reasonable prices at last.

BBJ STAFF

Rolandas Juteika, head of wealth and trading for the European Economic Area at Revolut.

Cybercrime Resilience: Survey Calls for Collective Effort

Hungarian society continues to underestimate the threat posed by cybercrime even though the number of victims reaches tens of thousands annually and the financial damages amount to billions of forints. According to a recent Mastercard study, cybersecurity knowledge barely exceeds 1.5 on a fourpoint scale among the most digitally adept age group.

or email. Despite this awareness, fraudsters successfully deceived victims into transferring sums exceeding HUF 10 million in numerous cases last year. This underscores a key challenge in cybersecurity: the weakest link is often an individual caught off guard or unprepared for social engineering tactics.

Some 46% of respondents could not determine whether messages shown in the survey were legitimate or fraudulent. Younger generations tend to overestimate their ability to recognize scams.

While

The company first shared the findings with participants of Hungary’s KiberPajzs (CyberShield) initiative and will later approach industry stakeholders. The headline results were presented to the public at a press conference on Feb. 20.

Given the alarming rise in cybercrime, experts stress that only a coordinated effort, combined with collaboration and continuous knowledge sharing, can effectively curb these threats. KiberPajzs provides a structured framework for such efforts and has said it will incorporate the study’s conclusions into its initiatives. In 2024 alone, cybercrime in Hungary resulted in 13,000 victims and HUF 30 billion in financial damages. Online marketplaces have become particularly vulnerable, with 43% of users encountering fraudulent attempts and 20% reporting financial or data losses. Nearly half of the Hungarian population (48%) has personally experienced a cyberattack or knows someone affected who has.

Despite this, only 22% consider themselves adequately prepared to counter cyber threats. Meanwhile, the public sector remains the most targeted, although threats in the healthcare sector have declined since the pandemic. The technology sector, however, has become an increasingly attractive target for cybercriminals.

The recent representative survey conducted by Mastercard found that

of Hungarian adults recognize that banks will never request card details or login credentials via phone

KiberPajzs partner Mastercard’s in-depth study analyzes user security awareness and cybercriminal strategies. By identifying risks and reinforcing digital defenses, the study aims to equip individuals and organizations with a deeper understanding of cybercrime trends, emphasizing the importance of intelligence exchange in combating cyber threats.

“The Cybercrime Age 2025 study is a unique and essential resource that provides national and regional insights into the evolving landscape of cyber threats. It offers a data-driven, in-depth assessment of Hungarian users’ cybersecurity knowledge and their most pressing needs,” says Gergely Márkus, country manager for Mastercard Hungary and Slovenia.

Kick-starting Collaboration

“With this document, we aim to support security professionals and decisionmakers within and beyond the digital payments ecosystem. I firmly believe this study will serve as a valuable starting point for collaborative efforts to enhance security. The KiberPajzs initiative offers a particularly effective and well-structured framework for organizations committed to strengthening cybersecurity,” he adds. The study also gives an international context, estimating that global damages caused by cybercrime could have reached USD 9.5 trillion by the end of 2024. In Hungary, one of the most striking findings is the gap between theoretical cybersecurity knowledge and actual digital behavior.

Communications Authority, the Ministry of Justice, the Financial Arbitration Board, the Supervisory Authority for Regulated Activities, the Ministry of National Economy, the Hungarian State Treasury, the National Protection Service, as well as newly joined participants such as Szerencsejáték Zrt. and Visa.

‘Universal Responsibility’ “Combating cybercrime is a universal responsibility for all responsible organizations and individuals.

Cybersecurity preparedness requires collaboration among government entities, IT, telecommunications, retail, and financial service providers. We welcome Mastercard as a key player in KiberPajzs, as their research confirms that consumers actively seek cybersecurity guidance from trusted service providers. The initiative aims to meet these expectations by developing new security content and solutions to improve public awareness,” says Levente Kovács, secretary-general of the Hungarian Banking Association.

90.5%

of 18-29-year-olds consider themselves difficult to deceive. However, when tested on their cybersecurity knowledge, their average digital security index score was just 1.5 out of 4. I

Interestingly, while older individuals were reportedly less confident in their ability to protect themselves from digital fraud, the results showed they performed better than younger participants.

Cybercriminals continuously refine their techniques in parallel with technological advancements. Fraudsters utilize automation, collaboration, outsourcing, artificial intelligence, and intelligence-sharing to maximize their illicit profits. Cybercrime is an industry that evolves rapidly, making real-time access to security information a critical factor.

Effective defense strategies require both the development of practical cybersecurity habits and the seamless dissemination of up-to-date security intelligence to consumers and businesses. Ideally, such information should be integrated organically into users’ existing digital ecosystems, including their preferred communication channels.

However, coordination is necessary to ensure knowledge-sharing and collaboration among stakeholders. This is precisely the role undertaken by the KiberPajzs Program, initiated by the Hungarian Banking Association and the Hungarian National Bank (MNB). The initiative brings together institutions such as the National Cyber Security Center, the National Media and

“We have observed that the primary vulnerabilities among users stem not from technological limitations but from a lack of awareness and preparedness,” Sándor Töreki, deputy chief of the Hungarian National Police, notes. He says the survey findings align with law enforcement insights, remarking that 80% of survey respondents acknowledged that two-factor authentication was neither overly complicated nor timeconsuming, yet it remains significantly underutilized. “Through collaboration, we aim to bridge this gap,” Töreki adds.

“User-friendly digital platforms must integrate essential security features to protect consumers while maintaining ease of use,” emphasized Lajos Szabó, director of the National Cyber Security Center.

“Built-in solutions should not only recognize fraudulent transactions but also proactively prevent them or issue timely alerts. Initiatives like KiberPajzs and cutting-edge cybersecurity technologies are essential components of an effective defense strategy,” Szabó argues.

Throughout Europe, recent trends and the emergence of new cybercrime tactics highlight the urgent need to enhance existing security measures. The number and sophistication of cyberattacks targeting Hungarian institutions indicate that further preventive actions are necessary.

“Banking systems remain secure. Thanks to OTP Bank’s security measures and its cooperation with law enforcement and card networks, financial fraud losses affecting customers have been significantly reduced,” insists Gábor Bucsek, director of security at OTP Bank.

“In 2024, OTP Bank recorded a 32% decrease in financial fraudrelated damages compared to 2023. Furthermore, in terms of prevented fraud, we successfully safeguarded more than three times the amount of customer funds compared to the previous year,” he concludes.

GERGELY HERPAI

Levente Kovács, secretary-general of the Hungarian Banking Association, at the presentation of the Cybercrime Age 2025 study.

Stability and Profitability Still Hallmarks of CEE Banking Market in 2024

Despite the challenges of recent years, such as geopolitical tensions and changes in the macroeconomic environment, banks have continued to show outstanding resilience in the CEE market, according to Big Four company Deloitte’s Central and Eastern Europe Banking Mergers and Acquisitions Study

BENCE GAÁL

Deloitte has published its annual study, which provides a comprehensive picture of the region’s banking sector, for the seventh time. The analysis for 2024 generally shows that strong profitability in a high interest rate environment, a still fragmented CEE banking market and the solid capital position of acquisitive banks create favorable conditions for further market consolidation.

“The anticipated new monetary easing cycle could, therefore, provide a boost to the banking M&A markets on two fronts,” he adds.

Regional Powerplays

Changes

in the number of banking market players in the region

The consolidation of the banking market between 2017 and 2023 has reduced the number of players by around 21%, from 237 to 187 banks.

Change in the number of banking groups in the region (2017,2023)

Last year, the CEE banking sector showed declining M&A transaction activity. The high interest rates and the sector’s superior profitability reduced the selling pressure for smaller, less efficient players, while tightening market liquidity significantly limited the availability of cheap funds, making it challenging to finance and attractively price acquisitions, Deloitte noted.

Despite this, consolidation in the regional banking market is expected, as players’ pursuit of economies of scale and further strengthening of market positions remains a key strategic objective.

Last year, M&A activity in Hungary’s banking sector slowed down as the economic environment, as elsewhere,

characterized by high interest rates and strong profitability, did not provide significant incentives for either buyers or sellers. The only major transaction of the year was MBH Bank’s acquisition of a 14.9%

stake in Fundamenta-Lakáskassza from Generali, reflecting a cautious but strategic approach to consolidation in the financial sector.

“While 2024 saw slightly fewer banking M&A transactions at the regional level than 2023, it was still a busy year. Through our transactions, we have a good understanding of seller and buyer motivations, which we expect to continue the consolidation of banks in the region in the coming period,” summarized Albert Márton, partner at Deloitte Financial Advisory and head of CEE portfolio transaction advisory services.

Continuing Consolidation

Regional banking consolidation is expected to continue in the coming years as financial institutions focus on improving scale efficiency and strengthening market positions, according to Deloitte partner Albert Márton.

Over the past six years, the number of banking institutions across the region has declined significantly due to consolidation trends. Between 2017 and 2023, the total number

of banks in the region dropped by nearly 20%, from 237 to 187. In Hungary, the number of operating financial institutions fell from 33 to 19, while Poland and the Czech Republic also saw a moderate decrease.

One of the main drivers of this trend has been the changing valuation of banking transactions. Before the financial crisis, it was not uncommon for banks to be acquired at a priceto-book value (P/BV) multiple of six or seven. However, last year, the average P/BV ratio for banking transactions had dropped to just

1.1,

making selective acquisitions of regional banks increasingly attractive.

In addition, their de-inflationary liquidity sterilization measures of central banks have significantly tightened market liquidity, limiting the availability of cheap funds to price and finance acquisitions favorably.

“The high interest rate environment is currently holding back the banking M&A markets on two fronts. On the one hand, it creates a favorable business environment for less efficient players so that they are not under transaction pressure, and on the other hand, it makes acquisition financing more expensive,” explains Csaba Csomor, director of Deloitte Financial Advisory, and head of the firm’s blockchain and digital assets practice in Central Europe.

Among regional players, OTP Group has been the most active (or most successful) acquisitor in the past six years, completing five transactions. Other key players in the market include Erste Group, Raiffeisen Bank, and Estonia’s LHV Pank, each of which has executed four acquisitions during this period.

Thanks to these acquisitions, OTP, at the end of 2023, was among the top five banking groups by total assets in Albania, Bulgaria, Croatia, Serbia, and Slovenia. In Hungary, it remained the market leader. OTP was only ninth in Romania by total assets at the end of

2023;

the group sold its Romanian subsidiary to Banca Transilvania in 2024, which also points towards consolidation efforts.

“While 2024 saw slightly fewer banking M&A transactions at the regional level than 2023, it was still a busy year. Through our transactions, we have a good understanding of seller and buyer motivations, which we expect to continue the consolidation of banks in the region in the coming period.”

For the third year running, the study also highlighted the development of the fintech sector and its impact on the banking ecosystem.

According to the findings, global fintech faces significant challenges due to limited investment funding, a restrictive monetary environment, and a shift in investor focus toward artificial intelligence. As a result, traditional banking institutions may see further opportunities to strengthen their positions through strategic acquisitions, leveraging favorable valuations and market conditions, Deloitte noted.

In Central and Eastern Europe, the maturity of fintech companies has led to several significant capital raises, allowing these companies to expand regionally and enter the European or even global market.

Hungary’s five largest fintechs at the end of 2023 were Simplepay, followed by Dorsum Zrt., W.UP (Finshape), Seon Technologies Kft., and Taxually. Seon’s growth was the most outstanding among these: doubling its turnover in 2022 and growing by 44% in 2023 to HUF 17.3 billion.

Source: national bank data, Deloitte analysis | Table excludes foreign branches and data for Bosnia and Herzegovina and Albania

Bank Workflow Automation on the Brink of a Revolution, Says Hungary’s Intuitech

A Hungarian AI company is building “virtual agents” that help financial services companies transform into AI-first entities by automating complex processes. And the bar has been set super high, given the sector’s exceptionally stringent accuracy standards.

Robotic Process Automation is yesterday’s news; generative and agentic AI are changing the game today regarding streamlining workflows. The reason is simple: while RPA is broadly limited to automating repetitive, rule-based tasks, the arrival of large language models has opened the door to a dimension shift.

GenAI can analyze complex patterns and generate original content, whereas agentic AI enables systems to make decisions, learn, and adapt autonomously.

“This is the dawn of a whole new era,” describes Máté Jendrolovics, founder and CEO of Intuitech, on the significance of the technology.

As he explains to the Budapest Business Journal , up till now, only those processes that could be grasped in line with the rules of mathematics could be automated. Most workflows are not like that, but the emergence of Gen AI and agentic AI has shifted the goalposts.

Building an agent to perform a specific task accurately requires a complex toolset and know-how. But apart from completing certain actions, like collecting data from pdf files or sorting and validating inbound communication and documents, they need to be able to speak to other agents as well, Jendrolovics notes.

“We have learned how to build such efficient agents fast within a given domain. Then we pick a workflow like complaints or claim management, and we deliver it as end-to-end solutions to our customers,” he says.

What matters even more is that they have learned to put together

agents that comply with banking and insurance standards, a fact that “is just so far from being self-evident,” the expert points out. It matters because vendors face massive entry barriers in the industry.

Avoiding ‘Innovation Theater’

“Without accuracy, reliability and transparency, the whole thing is just innovation theater, not a solution. If all those factors are in order, only then can you talk about business impact,” the CEO notes.

Jendrolovics recalls that digitalization’s primary initial purpose was to have manual tasks performed digitally, which was followed by the ambition to make it all more convenient, hence mobile compatible. The next big leap is automating end-to-end workflows, which is what Intuitech is taking on.

Given the complexity of the job, relevant expertise is scarce. Intuitech leads the way in the field by dint of having multiple agents

and even change the output of the virtual agents. The implied result of this progress is that loan officers or complaint managers should get ready to assume a new role overseeing “digital workers” that can be taught concrete tasks and can effectively be treated as trainees.

Working the Workflow

It helps that the main structure of workflows is similar across the whole financial industry; once you have that covered, customer-specific needs can be handled more easily. Such as, for instance, training an agent on an insurance company’s operations manuals, product catalog, and internal processes.

“Without accuracy, reliability and transparency, the whole thing is just innovation theater, not a solution. If all those factors are in order, only then can you talk about business impact.”

This reusability factor also boosts scalability and flexibility. The latter is key as core banking systems are typically complex to change. The agentic AI approach offers a way around that obstacle.

“We need to build agents that we can deliver within 4-8 weeks each for financial institutes,” Jendrolovics says. To ensure that, their agents are built on top of legacy systems so that they can be implemented with little or no changes required from their clients.

in production with proven results, while most players are still working on their proof of concept and pilot programs.

Jendrolovics has been building digital banking solutions in Hungary and abroad for the past six years and is capitalizing on that knowledge to offer solutions to players in the financial industry that really make an impact.

“To deploy our solutions on a large scale within an organization, we need to provide transparency; it can’t be a black box,” he says. That is an oft-heard criticism of AI systems where no one can tell you why AI does what it does.

“We, therefore, build software that checks that [transparency] box,” the CEO adds, highlighting the necessity of having such an approach. Indeed, Intuitech’s agents don’t just perform tasks autonomously; upon request, they will also explain all the decisions they have made with detailed reasoning.

That provides an opportunity for “human in the loop” experts to validate

Intuitech’s CEO notes that providing accurate operations and creating real value is the most challenging part. “You need deep domain expertise for that,” he says. There are two types of problemsolving: you either target customer service across industries or just deal with banks. It doesn’t go both ways.

“The primary tech issue for banks is accuracy, but if you can handle that, which is the case with Intuitech, the sky’s the limit.” In fact, the firm is cooperating with a Stanford spinoff that writes code that tries to manipulate Intuitech’s AI agent into providing false information just to test the safety limits of their solution.

The opportunity is underscored by a McKinsey report that estimates the value creation of GenAI in the global banking sector at USD 200 billion-340 bln, the equivalent of 9-15% of banks’ profits.

“What inspires me is to elevate complex banking or insurance processes and critical business functions to a new dimension because that’s how you create the most value,” Jendrolovics concludes.

LEVENTE HÖRÖMPÖLI-TÓTH

Máté Jendrolovics, founder and CEO of Intuitech

Home Insurance Campaign Kicks Off: Why Homeowners Should Pay Attention

As the home insurance campaign period begins, homeowners across Hungary have a rare chance to reassess their policies and secure better coverage. With insurers competing to offer more favorable terms, policyholders can take advantage of this window to either renegotiate their existing contracts or switch providers altogether.

to protect homeowners and ensure that families secure the best coverage for their most valuable asset: their home.

Many insurance companies have introduced new, more competitive offers, making it an opportune time for policyholders to compare options. Túri specifically encouraged those who do not yet have home insurance to explore the market, as insurers are now providing highly favorable conditions.

The initiative, backed by the Hungarian National Bank (MNB) and the Ministry of National Economy (NGM), is designed to enhance market competition and encourage consumer-friendly insurance choices. Beyond potential cost savings, the campaign highlights the importance of comprehensive home protection, especially in light of rising property values and increasing climate-related risks.

The annual home insurance campaign runs from March 1 to March 31, providing homeowners a unique opportunity to switch to a more favorable policy regardless of their contract’s renewal date. With a competitive market offering a wide range of insurance products, it is crucial for policyholders to review their existing agreements and explore better deals. The MNB and the NGM have launched an informational campaign to assist homeowners in making informed decisions.

Speaking during a joint press conference with the MNB, State Secretary for Public Administration Anikó Túri of the NGM emphasized that the initiative is designed

The impact of the home insurance campaign has already been measurable in previous years. Deputy Governor of the MNB Csaba Kandrács recalled that, during the first home insurance campaign, 640,000 contracts were renegotiated. Of these, 300,000 customers reviewed their policies with their existing insurers, while a similar number opted to switch to a different provider.

Enhance Market Competition

Kandrács highlighted that the primary goal of the initiative was to enhance market competition rather than simply lower prices. The figures suggest that this goal has been successfully achieved. Instead of an all-out price war, the campaign has led to an improvement in the value-formoney ratio of insurance products.

A growing number of policyholders are opting for so-called consumerfriendly home insurance (MFO) policies, which offer high service quality and transparent conditions. In fact, one in three online home insurance contracts now fall into this category.

Last year, nearly 900,000 home insurance contracts were renewed, demonstrating the campaign’s growing effectiveness. Approximately one

Looking ahead, the central bank and the economy ministry anticipate that insurers will invest billions of forints into this year’s campaign, a sign of its growing importance in the industry. They expect around 155,000 new contracts to be signed, with 17% of them being MFO policies.

Nationwide Campaign

The MNB has prepared a nationwide communication campaign this year to enhance awareness further, encouraging policyholders to review their contracts and take advantage of better insurance terms. The central bank is placing particular emphasis on MFO policies, which guarantee high-quality services and fair conditions. At the same time, the MNB says it expects insurance companies to communicate transparently and maintain fair competition throughout the campaign.

in four policyholders reviewed their coverage, highlighting an increased awareness of available options. The home insurance market has remained highly concentrated, with premiums increasing by 16% on average. While some concerns were raised about potential market shrinkage due to rising premiums, the opposite occurred: the total volume of home insurance policies expanded slightly.

The number of insured properties in Hungary also increased slightly, rising by 0.5 of a percentage point to 76.42% of all residential buildings. This suggests that more homeowners recognize the importance of securing financial protection against unexpected damages and losses.

“The central bank and the economy ministry anticipate that insurers will invest billions of forints into this year’s campaign, a sign of its growing importance in the industry. They expect around 155,000 new contracts to be signed.”

Another significant objective is to increase awareness among uninsured households. Currently, around one million Hungarian households lack any home insurance, leaving them vulnerable in the event of natural disasters, fire, burglary, or other property damage. By highlighting the advantages of home insurance, the campaign aims to reduce the number of uninsured properties in the country.

The insurance industry actively prepared for this year’s campaign. Key stakeholders, including individual Hungarian insurance companies, Mabisz (the Association of Hungarian Insurance Companies), the NGM, and the MNB, recently gathered for a roundtable discussion to address the most pressing issues affecting the home insurance sector.

Participants at the meeting confirmed that both insurers and the MNB have developed extensive communication plans to ensure policyholders are aware of the opportunities available during the March home insurance campaign.

Market players say they are eager to stimulate competition within the sector further. The upcoming “Ethical 2.0” regulatory package is expected to introduce a wave of new product innovations, significantly improving the value-for-money ratio in the entire Hungarian insurance market.

GERGELY HERPAI

Csaba Kandrács, Deputy Governor of the MNB.

Photo by Gergely Herpai / BBJ

State Secretary for Public Administration Anikó Túri.

Photo by Gergely Herpai / BBJ

Commercial Banks

by total assets in 2023 (HUF mln)

1

2

3

4

5 RaiFFeisen Bank ZRt.

6 CiB Bank ZRt.

7 gRánit Bank ZRt. www.granitbank.hu

8 mBH

9 CitiBank eURope plC magyaRoRsZági Fióktelepe www.citibank.hu

10 ing Bank n v magyaRoRsZági Fióktelepe www.ingwholesalebanking.hu

11 Bank oF CHina (köZÉp-kelet-eURópa) ZRt. https://www.bankofchina.com/ hu/brh_en/

guy

tóth

Corvinus Nemzetközi Befektetési Zrt. (15) Erste Group Bank AG (70), Európai Újjáépítési és Fejlesztési Bank (15) Radován Jelasity

Raiffeisen International BankHolding AG (100) györgy Zolnai

S.p.A (100) pál simák

Tiberis Digital (44.83), Employees stock ownership plan (36), Pannónia Nyugdíjpénztár (7.28), MKB Nyugdíjpénztár (5.5), other (6.39) –Éva Hegedűs

Magyar Bankholding Zrt. (99), free float (1) –Zsolt Barna

Citibank Europe plc (100) veronika spanarova

1051 Budapest, Nádor utca 16. (1) 473-5000

1095 Budapest, Lechner Ödön fasor 9. (1) 328-9000 bank@kh.hu

1054 Budapest, Szabadság tér 5–6. (1) 301-1271 info@unicreditbank.hu

1138 Budapest, Népfürdő utca 24–26. (40) 222-221 erste@erstebank.hu

1054 Budapest, Akadémia utca 6. (40) 484-848, (1) 484-8484 info@raiffeisen.hu

1027 Budapest, Medve utca 4–14. (1) 423-1000 cib@cib.hu

1095 Budapest, Lechner Ödön fasor 8. (1) 235-5900 info@granitbank.hu

1056 Budapest, Váci utca 38. (1) 327-8600 kommunikacio@mbh.hu

1133 Budapest, Váci út 80. (1) 374-5000 vallalati.ugyfelszolgalat@ citi.com

1068 Budapest, Dózsa György út 84/B (1) 235-8700 communications.hu@ ingbank.com

1051 Budapest, József Nádor tér 7. (1) 429-9252 service.hu@bankofchina.hu 12 Bnp paRiBas magyaRoRsZági Fióktelepe www.bnpparibas.hu

1062 Budapest, Teréz körút 55–57. (1) 374-6300 info.hu@bnpparibas.com

1054 Budapest, Bajcsy-Zsilinszky út 42–46. (1) 374-9900 info@kdbbank.eu 14 magnet Bank ZRt. www.magnetbank.hu

1062 Budapest, Andrássy út 98. (1) 428-8844 info@magnetbank.hu 15

Győr, Árpád út 93. (96) 550-720 kozpont@mbhdunabank.hu

1133 Budapest, Váci út 96–98. (1) 354-5000 infohu@cofidis.hu

4090 Polgár, Hősök útja 8. (52) 573-035 titkarsag@polgaribank.hu

4 Socialite

Hungarian PerformanceBus Drives Away With European Arts Award

A traveling bus initiative by Budapest’s Trafó House of Contemporary Arts to encourage artistic encounters and create more access to modern-day art and performance across Hungary has been awarded a European Award by France’s Art Explora and the Académie des beaux-arts.

generations as well as more diverse social groups in rural areas,” Erdődi says. Trafó shifted the mission of PerformanceBus, adapting it to the local sociopolitical context and focusing more on sharing contemporary art in places lacking a cultural infrastructure and resources.

Reconnecting With the Countryside

The award, worth €50,000, will be dedicated to bringing the PerformanceBus project to life in Hungary. It originated in the Czech Republic as the creation of Studio Alta, Trafó’s Prague partner.

Back in Hungary, Trafó is dedicated to social issues and describes itself as a platform for establishing values and context and generating new ideas and productions. It offers a space for work by local and international artists.

Although Trafó focuses on the younger generation, its performances, concerts, exhibitions, and community and audience-building programs are accessible to all. It is unique in Hungary and a significant player in international contemporary arts.

“We’ve become an emblematic institution for the Budapest arts scene and an essential support structure for independent artists,” says curator, dramaturg and researcher Katalin Erdődi, Trafó’s director. “We’re also an important social forum where, through

“We aim to work closely with artists now living in Budapest who grew up in the Hungarian countryside and are keen to reconnect with their local communities and share their work in the places they come from,” Erdődi tells me.

“This will be the starting point for planning the bus tours in Hungary as we can build on the local knowledge and social networks of the artists, making interventions more meaningful, locally embedded and personal,” she explains. “For us, PerformanceBus is a ‘vehicle of connection,’ a chance to devise epic journeys across the country, get to know new people and places and create moments of encounter and togetherness.”

For audiences, PerformanceBus will demonstrate that contemporary art can be thought-provoking, fun and liberating. Erdődi believes it will also be a vehicle for “resisting the lack of dialog and increasing polarization across rural and urban contexts that are dominant tendencies in Hungarian society,” she says.

Erdődi at Trafó’s year-opening Hot Swap event on Jan. 8, 2025, which marked the passing-on of batons between the old and new leadership with a “goodbye revue” celebrating the achievements of the former director Beáta Barda and founding director György Szabó, and a “performative newscast” introducing Erdődi’s plans, including the PerformanceBus project.

art, we can talk about the burning issues and changes that concern us, creating a safe public space where many different opinions and views can be voiced.”

Winning the European Arts Award will allow Trafó to launch PerformanceBus, a project that decentralizes its activities and enables the institution to travel outside Budapest.

Presented at the Arts and Audiences event in Paris on Dec. 12, 2024, the award encourages access to arts and cultures for everyone and champions new dialogs between the arts and audiences. It’s given to organizations working against social, economic and geographic barriers to offer access to the arts.

PerformanceBus was entered into category two of the European Prize, dedicated to cultural organizations with annual budgets of between EUR 500,000 and EUR 2 million.

Other initiatives in the category included France’s Terre de Culture with “Event 25: Living Trails,” the United Kingdom’s puppet “Suitcase Theater,” and the Notranjska Museum of Postojan, Slovenia’s “Museum for Rookies.”

Inspiring New Encounters

Founded by entrepreneur Frédéric Jousset in 2019, Art Explora is an international foundation that inspires new encounters between arts and audiences locally, nationally and internationally. The organization

works in partnership with artists, cultural organizations and communities.

The Académie des Beaux-arts (the French Academy of Fine Arts) is one of the five academies that make up the Institut de France (Institute of France). It promotes and supports artistic creation through all forms of expression.

Together with Studio Alta and supported by Art Explora, Trafó will devise three bus tours in the 2025/26 season. Planning will begin this spring, with the first tour in the fall.

Erdődi was appointed Director of Trafó in December 2023,

starting her term officially in January this year.

“PerformanceBus was conceived by our partner Studio Alta. We share their view that the arts scene in small countries such as the Czech Republic and Hungary tends to be highly centralized,” she says.

“People often forget that the capital city doesn’t represent the whole country.

Studio Alta wanted to venture beyond its physical boundaries, so they conceived the institution as an idea that can travel, discover the world outside its walls, and emphasize interconnectedness.”

Thanks to its relatively long history, Trafó has built a dedicated core audience, but, at present, its activities focus on Budapest.

“We feel it’s important to increase our outreach, to connect with younger

“We’re currently searching for an interested bus rental company to partner with us. For us, the big question is how PerformanceBus continues after the three tours funded by the award. We will be searching for long-term partners for the future.”

Looking to that future, the main challenge is the state of the independent art scene, which has been hard hit by cultural budget cuts and existential uncertainty in the past year.

“The government has been reducing the operational and project funding dedicated to this field,” Erdődi explains.

For Émilie Boucheteil, head of public and community engagement at France’s Art Explora, its mission is to “put audiences at the heart of everything we organize or program. We want to enable art for all. This means building connections across communities and cultures, fostering dialog and understanding to enhance social cohesion and inclusion and encouraging greater civic engagement and democratic involvement. PerformanceBus fits perfectly with our mission.”

Art Explora prizes support innovative projects from small to big cultural organizations that can be shared, valued, replicated and scaled, and to encourage best practices.

“PerformanceBus convinced the jury because we were really impressed by the way the project responds to ongoing political changes in Hungary and shrinking access to critical and contemporary culture,” adds Boucheteil.

DAVID HOLZER

Katalin

Photo by Máté Kalicz

‘Dream Girls’ Reunite for Women’s Day

In honor of International Women’s Day tomorrow (Saturday, March 8), two actresses will reunite for an evening of musical hits in Székesfehérvár under the slogan “A Concert About Women; not Just for Women!”

Adrienn Fehér and Andrea Jónás first met when they were members of the Vörösmarty Theater in Székesfehérvár. In 2007, the pair performed “Dream Girls,” a musical event of their own making, with additional ideas by Miklós Szurdi and István Verebes.

The women have remained friends, and both achieved success over the years, Emerton Awardwinning Fehér in the musical “Hair” and Jónás, who moved to Budapest and spent 10 years at the Attila

Honoring 1848 and Hungarian Male Choir Traditions

“Tizenkét.hu,” a concert honoring Hungary’s 1848 Revolution and War of Independence and the country’s male choral singing tradition, will be staged in Budapest on Saturday, March 15.

The evening promises “12 Hungarian composers, 12 Hungarian pieces, 12 works from the treasury of Hungarian male choir music.” The selection of compositions, “ranging from

Bartók Spring Festival Lineup Finalized

The program for the Bartók Spring International Arts Weeks has been finalized and will include performances by Arooj Aftab’s jazz trio and María Pagés’ De Sheherezade, among others, organizers announced on March 4. The fifth edition of the festival will run from April 4 to May 18 in Budapest, Miskolc (185 km northeast of Budapest by road), Pécs (195 km southwest of the capital),

Culture Matters

A regular look at culture issues in Hungary and the region

József Theater in “Nutcracker” and the musical “Chicago.”

The idea for a sequel to reunite the “Dream Girls” actresses came from conductor Tamás Ruff, who knows both well and is the leader of the Alba Régia Symphony Orchestra, back in their old stomping ground of Székesfehérvár (64 km southwest of Budapest by road).

The “Igazán Nők” (“Truly Women”) program includes the work of artists that Fehér and Jónás have admired and been inspired by. Thus, international hits by Céline Dion, Barbra Streisand and Tina Turner will be performed alongside the songs of the Hungarian jazz, pop, rock, and soul singer Zsuzsa Cserháti from 7 p.m. in the Alba Regia Sportcsarnok indoor arena (still known to some locals at the ARÉV Sportcentrum).

Although the inspiration is Women’s Day, two male guests, Szilveszter P. Szabó and György Szomor, both from the Operetta Theater, will add color to the program. Ruff’s Alba Regia Symphony Orchestra will also appear under his baton.

Budapest Zoo Celebrates World Wildlife Day

The Budapest Zoo and Botanical Garden hosted 16 presentations and information programs throughout the day on March 3 to mark the United Nations’ World Wildlife Day. The day included educational sessions on the giant anteater, giraffes and Mhorr gazelles, sharks and rays, bears, flamingos, gorillas, tigers, rhinos, and reptiles, plus a seal show and an elephant training session. The events were organized in collaboration with WWF Hungary, the Budapest Jane Goodall Institute, and the Budapest Herman Ottó Institute, among others. The UN General Assembly designated March 3 as World Wildlife Day in 2013 to celebrate and raise awareness of the world’s wild fauna and flora. The date marks the anniversary of the 1973 signing of the Convention on International Trade in Endangered Species of Wild Fauna and Flora.

Fine Arts Museum to Showcase Major Exhibitions in 2025

masterpieces and adaptations to innovative musical solutions, will offer an overview of the diverse and unique musical landscape from the Hungarian Reform Era to the present day.”

The concert features StEFREM, described as Hungary’s most popular chamber vocal ensemble. The sevenperson acapella group was established in 2002 by Tamás Bubnó, a Hungarian Artist of Merit and Liszt Award laureate. The choir is named after Saint Ephraim the Syrian, a celebrated hymn composer. It also reflects the group’s deep roots in Byzantine music, the backbone of their early repertoire.

According to the organizers, StEFREM takes pride in its seven members all being performers, composers, and arrangers.

“They know and understand the unique sound of the vocal ensemble […]

and Győr (120 km northwest), Csaba Káel, director of the Palace of Arts (Müpa), which is organizing the event, said at a press conference. Last October, organizers revealed that the lineup will feature operatic superstars Diana Damrau and Jonas Kaufmann, as well as performances by the Munich Philharmonic Orchestra, the Basel Kammerorchester with violinists Barnabás Kelemen and Júlia Pusker, and the Orchestra of the Age of Enlightenment. Star saxophonist Jan Garbarek is set to perform in

and can build on this extraordinary and unconventional vocal world with virtuosity and sensitivity.”

In addition to works by the choir’s members, the evening will feature among its dozen pieces compositions by Béla Bartók, Zoltán Kodály, and Franz Liszt.

The concert venue will be Ison, at Hársfa utca 25., Budapest 1074, from 6:30 p.m. Tickets are available online from HUF 8,000.

Budapest on April 7, in Győr on April 24, and in Pécs on May 18, festival operative director Janina Szomolányi said. Wynton Marsalis will also take the stage, the organizers added.

Budapest Pride to go Ahead as Planned: Karácsony

Preparations are underway for the 30th Budapest Pride, and the event will take place as planned this year on June 28, Budapest Mayor Gergely

The Museum of Fine Arts in Budapest will feature exhibitions this year on the Chinese Terracotta Army, the works of William Blake, and the enigmatic Master MS and his era, while the Hungarian National Gallery will present a collection of Secession posters. László Baán, director of the Museum of Fine Arts and its affiliated institutions, told the press that, starting on Feb. 28 and running until June 1, highlights from the museum’s graphics collection will be exhibited at the renowned Guggenheim Museum in Bilbao. The display will include works by Dürer, Leonardo, Raffaello, Rubens, Rembrandt, and Goya, alongside pieces by Hungarian artists such as Barabás, Aba-Novák, and Vasarely, Baán added. He noted that successful exhibitions, recordbreaking visitor numbers, and the institution’s rising prestige have significantly expanded the museum’s collection in recent years.

Karácsony said in a Facebook post on Feb. 28. “It is just as evident as the love between two people,” he wrote, emphasizing that in Budapest, no one should face discrimination based on their beliefs, birthplace, or whom they love. Karácsony criticized what he described as intensified smear campaigns by those in power during times of national difficulty but reaffirmed that Pride, a celebration of joy, love, and freedom, will return in June. “Perhaps it will be greater than ever before,” he added.

ÉVA BODOR

ÉVA BODOR

The seven members of StEFREM.

Photo by ODPictures, Orbán Domonkos

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

Belgian Business Club in Hungary (Belgabiz)

Belgabiz will hold a networking event, “Solarization: Hungary’s Economy Under Global Spotlight in 2025,” where Dávid Németh, chief economist at K&H Group, will share insights into the current economic trends. The themes explored will include global exposure and shifting alliances: how can Hungary adapt in 2025? And how will global shifts impact Hungary’s economic landscape in 2025?

• When: Thursday, March 13, 6-9 p.m.

• Where: MaMaison Hotel Andrássy, Munkácsy Mihály u. 5-7, Budapest 1063 • Fee: Members, free; non-members, HUF 22,000

Italian Chamber of Commerce for Hungary (CCIU)

On Feb. 21, the Italian Chamber of Commerce in Hungary hosted an exclusive event highlighting the excellence of Italian viticulture. It brought together two leading names in the sector, Vivaistica D’Andrea and Vivai Viticoli Fontanel, presenting their strategic partnership to an audience of Hungarian businesses and industry professionals. The gathering served as a platform to showcase the entire viticultural production chain, from carefully selecting vine cuttings to the final stages of wine production. Through detailed presentations, attendees gained insights into the innovative techniques used by these companies to ensure high-quality vineyards, resilient grape varieties, and sustainable cultivation practices. Beyond the technical aspects, the event underscored the importance of collaboration between Italian and Hungarian businesses in fostering growth within the wine sector. Hungarian professionals had the opportunity to explore the advantages of integrating Italian expertise into their own viticultural processes, strengthening commercial ties between the two countries. The evening concluded with a refined wine-tasting experience, where guests sampled premium wines perfectly paired with a selection of traditional “Made in Italy” delicacies. The collaboration between Vivaistica D’Andrea and Vivai Viticoli Fontanel marks a step forward in bridging Italian viticultural excellence with the Hungarian market, ensuring a future of high-quality wine production and shared success.

Hungarian-French Chamber of Commerce and Industry (CCIFH)

The CCIFH invites you to boost team spirit and CSR impact by joining the international French chamber #ChallengeCCIFI 2025: running, walking, cycling, and (new this year) Yogist indoor (breathing, stretching and relaxing) breaks for everyone. Some 25% of the participation fees collected will be offered to the Solar Impulse Foundation. Prizes to be won by competing teams/individuals.

• When: March 31-April 27. Registration deadline: March 21.

• Where: Anywhere in Hungary

• Fee: (per teams of five): Members EUR 350 + VAT; non-members EUR 450 + VAT

Swiss-Hungarian Chamber of Commerce (Swisscham)

This year is the 30th anniversary of the chamber, and it is pleasing to see how the Swiss business community in Hungary continues to grow. Representatives of several new Swiss businesses and businesses operating in Switzerland and businessfolk interested in Switzerland have joined Swisscham in the past year. Our February networking event was held in the new Toyota showroom of our member, the Swiss-owned Emil Frey, where some of our latest members had the opportunity to introduce themselves.

Save the date for our upcoming HR Café event.

• When: Monday, March 31, 11 a.m.12:30 p.m.

• Where: Hágeni Távegyetem Budapesti Információs Központja, Madách Imre út 13-14, A ép. 4. Emelet, Budapest 1075

• Fee: Members, free; non-members, HUF 20,000

German-Hungarian Chamber of Industry and Commerce (DUIHK)

The DUIHK invites members to participate this month in its English-language webinar “Europe & the U.S. in 2025: Economic Realities in a Changing Political Landscape,” a collaboration between the German Chamber Network Abroad (AHK) and RGIT - the liaison office of the German Chamber of Commerce and Industry (DIHK) and the Federation of German Industries (BDI) in Washington, D.C. Speakers will provide key insights into the latest developments and executive orders impacting U.S. foreign trade policy in the first two months of the Trump administration. They will also share their perspectives on the potential implications for European businesses and transatlantic trade relations.

• When: Tuesday, March 25, 1-2:30 p.m.

• Where: Webinar

• Fee: The webinar is exclusively for members, for whom it is free. www.ahkungarn.hu

American Chamber of Commerce in Hungary (AmCham)

How can Europe reach its climate targets while maintaining competitiveness in an increasingly complex global landscape? This was the key question AmCham Hungary addressed during its recent Policy Forum with Dr. Barbara Botos, Hungary’s Ambassador-at-large for Climate. The discussion explored the latest developments introduced by the Clean Industrial Deal and the European Competitiveness Compass, highlighting their implications for Europe’s economic and environmental future. In addition, at the Feb. 27 forum, Botos provided an overview of the primary outcomes of the COP29 conference and their impact on European and Hungarian climate policy. The discussions covered the path from the Lisbon Strategy to the Budapest Declaration, touching upon significant milestones such as the Antwerp Declaration. These discussions paved the way for a closer look at the key aspects of the Clean Industrial Deal and the European Competitiveness Compass. The Clean Industrial Deal aims to drive decarbonization while strengthening European industries, ensuring they remain globally competitive. Meanwhile, the European Competitiveness Compass outlines a strategic roadmap to foster innovation, reduce dependencies, and create a stable investment environment. These efforts unfold amid a global net-zero industrial race, where cleantech leadership is evolving rapidly. China has emerged as a leading force, accounting for 39% of global net-zero investment, controlling key segments of the solar and wind value chains, and planning to quadruple battery manufacturing by 2030. At the same time, the United States is leveraging massive investments in clean energy start-ups to establish itself as a future technological leader. Despite these trends, the EU remains the second most attractive location for net-zero investors, ahead of America (based on 2023 data). However, sustaining this position will require targeted support and regulatory simplification to ensure European industries can thrive in a competitive global market. The discussions highlighted that industries require a predictable legal and economic environment to make longterm decisions. The key takeaway was clear: the only viable path forward is accelerating clean industrial investments that reinforce sustainability and economic resilience.

Netherlands-Hungarian Chamber of Commerce (Dutcham)

Save the date of the annual Dutcham Gala Dinner on Wednesday, May 28, from 6 p.m. Similar to past years, the event will be a seated dinner in casual style with Dutch, Indonesian, and Caribbean culinary inspirations.

Canadian Chamber of Commerce in Hungary (CCCH)

The Canadian Chamber of Commerce in Hungary will host the FirstMed Business Breakfast, an event exploring AI’s transformative role in healthcare. The gathering will offer business professionals valuable insights into the evolving healthcare landscape. Dennis Diokno, founder and CEO of FirstMed, will share his 30+ years of experience in international healthcare, discussing how AI refocuses doctor-patient interactions and what the future

holds for healthcare businesses and professionals. The discussion will highlight how AI-driven diagnostics enhance efficiency, improve patient outcomes, and streamline healthcare operations. Experts argue that automation and predictive analytics redefine decision-making processes, allowing physicians to prioritize patient care over administrative tasks. As AI integration accelerates, healthcare providers must balance between technological

advancements and maintaining a human-centric approach. The event will conclude with an interactive Q&A. Taking as its theme “From Paper Charts to AI: How Technology Has Transformed Healthcare,” this exclusive event provides key perspectives on balancing innovation with personal care in a rapidly changing industry.

• When: March 19, from 8:30-11 a.m.

• Where: W Hotel Budapest, Andrássy út 25, Budapest 1061

• Fee: Members HUF 11.900+VAT, non-members HUF 19.900+VAT.