Hungary 2021

Hungary DI PLOM ACY

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OLD UNIVIERSITY The University of Pécs, the oldest university of Hungary, was founded in 1367. It is just 279 years later the famous Bologna University or 217 years younger than Sorbonne.

HUNGARORING The 1986 Hungarian Grand Prix was the first Formula One race to take place behind the Iron Curtain.

It was placed in Hungaroring, the iconic racing field.

SPA TRADITION Hungary has one of the most important thermal spring cultures in Europe. The country boasts no less than 1,500 spas, typically featuring Roman, Greek and Turkish architecture.

EX PLURIBUS UNUM Around two-thirds of the Hungarians are Roman Catholic, about a quarter are Calvinist. The Hungarians are also from different stock: Turkic Kumans, Ossetian Yazighs and Serbian Hajduk all merged into Hungarians.

MAGIC CUBE Inventions by Hungarians in Hungary include the noiseless match (by János Irinyi), Rubik’s cube (by Ernő Rubik), and the krypton electric bulb (Imre Bródy).

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H U NG A RY

by ŽIKICA MILOŠEVIĆ

Our relations Have Never Been Better We have more things that connect us than those that separate us

I N T E RV I E W

e took the opportunity to talk to H.E. Attila Pintér, Ambassador of Hungary, about the culture, economy, infrastructure and tourism, and we concluded that in the last two centuries we have never had better relations, thanks to the reconciliation process and infrastructure works.

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Hungary and Serbia are entering the new period of good relations – after centuries of ups and downs, turbulent and harmonious periods. How do you assess the relations of Serbia and Hungary – they say the relations have never been better?

— I fully agree with you. So our bilateral relations have never been so good as in the past couple of years.

And I think this is due to the process of reconciliation, which was initiated by our two presidents in 2012. Mr. Tomislav Nikolić, former president of Serbia, and Mr. János Áder, President of Hungary. The whole process started with the official visit of Mr. Nikolić late mid-November 2012. And we continue this process next year in late June, with the official visit of our President, Mr. Áder, to Serbia. And a very important part of this visit was the ceremony in Čurug by two presidents and Šajkaš region was that that part of Serbia, which really suffered a lot during the Second World War, thanks God today, we can commemorate together our innocent victims. So at the beginning of January, we commemorate together with our Serbian friends at the Serbian monument, and late October, we commemorate also together with our Serbian friends at the Hungarian monument in Čurug. The past couple of years, we had a really wonderful examples concerning our bilateral relations, since 2014. Practically every year, we had a so-called joint government session. And the latest one we had is

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supported in 2019. And the next one, perhaps, we will have this autumn in Budapest. And during these government sessions, we signed a series of agreements, which are mainly focused on the economic cooperation. Let me mention two very important memoranda of understanding, which were signed by two prime ministers, the first one in 2015. The next one in 2019. And in these memoranda of understanding we put focus on infrastructural projects, because it is our firm conviction that we can develop together our economy only if we have good cooperation in the field of connection of infrastructures.

Hungary created Visegrád Group back in the 90s. It helped V4 countries approach the EU and finally join it. Do you think it could be a good example for WB6 group? And how do you assess the Mini Schengen Area as the core of this region?

— For the countries of Southeast Europe, I don't like to use this expression Western Balkans, our corporation can be a very good example. Why we initiated this cooperation immediately after the collapse of the communist regime in Central Europe? And in 1990, every Central European country was free to have their own foreign policy.

And our natural allies were Poland and Czechoslovakia, later Czechia and Slovakia. We signed an agreement about the cooperation in 1991. So this year, we celebrated the 30th anniversary of this special cooperation. And, and although our main goal was to harmonise our efforts in foreign policy, because every country's main goal in Central Europe was to join as soon as possible to NATO and the European Union. We joined NATO in 1999 and the EU in 2004 but our common goals remained, so the V4 did not collapse.

We have never had stronger coopera-

H.E. ATTILA PINTÉR Ambassador of Hungary

We managed to duplicate the turnover of our bilateral trade during the past 7-8 years

tion with these countries than today.

So every time when we have high level meetings in Brussels, on the level of the European Union, foreign ministers, prime ministers and presidents have the possibility to meet before these summits, and to harmonise our views concerning the agenda. Because if you see these countries alone, Poland has 40m million people, Czechia 15, Hungary 10, Slovakia 5, so separately we are week, but together we are almost like Germany. The bilateral trade of V4 with Germany is bigger than Germany's bilateral trade with France. These figures support this political cooperation. This cooperation can be a wonderful example, for the countries of the region. Because it is very difficult to imagine how certain countries can survive within the European Union, if they can't make allies, more cooperation, before their accession to the European Union. Mini-Schengen initiative is a really very useful format of cooperation. And you mustn't forget about that this kind of cooperation must remain, even after these countries join the EU. Is the mutual trade following the growth of political relations? What more can we do in the f ield of economy?

— Our bilateral trade has had very significant growth in the past couple of years. We managed to duplicate the turnover of our bilateral trade during the past 7-8 years. The biggest breakthrough came in 2016 and 2017, when the Hungarian government initiated Vojvodina development plan, we initiated it in 2016. And in 2017 the overall growth of bilateral trade was 35%.

From Serbian side, the growth was 40%, by Hungarian side 20-25%. Before and after 2017, the yearly growth was approximately 5-6%. Last year, although we had a crisis this COVID-19

crisis, we reached the historical peak in our bilateral trade, reaching 2.7 billion euros, which was 3.4% bigger than the previous year.

The biggest Hungarian bank OTP has been present on the Serbian market for years, and recently the bank made acquisition of Vojvođanska and Societe Generale banks. Due to these acquisitions, the bank has become the second or the third biggest bank in Serbia. You mustn't forget about the biggest Hungarian oil company Mol and the biggest Hungarian pharmaceutical company Richter which are also present in the Serbian market for years. And what is quite still important that Hungarian SMEs enterprises are more and more active on the Serbian market, which is a very good signal. Because, you know, when I started my career in the Minister of Foreign Affairs, I still remember those sentences, which we regularly repeated in different analysis, that we have excellent political cooperation, but unfortunately, economic relations do not reflect the excellent political cooperation. Now, due to the really good political cooperation and the activity of Serbian and Hungarian businesspersons, we can say that we have better and better results in the field of economy. And during past couple of years, we managed to welcome the first Serbian investment in Hungary in Szolnok, a big Hungarian city not very far away from Budapest. Our cooperation is so multilateral now.

We are well connected in infrastructure, and it will be even better. It promises a lot of tourists. Budapest and Szeged were always hot spots for Serbian tourists. And what about vice versa? Can we boost the mutual understanding through tourism?

— The developing of infrastructure on both sides has enormous importance from the point of economic cooperation, but it's equally important for the tourism as well. We have very good connection concerning the motorways, but we have some difficulties concerning the railway infrastructure.

From this point of view has a very big importance development of Belgrade- Budapest Railway, and in our view, it is also very important to develop direct railway connection, between Szeged and Subotica, because these two cities has always had very good cooperation during the history.

Concerning tourism, the past couple of years, Budapest has had bigger and bigger importance for Serbian tourists.

I have a lot of friends here in Serbia, and particularly I don't remember if I meet Serbian friends who didn't vis-

it at least one time Budapest. But of course, Budapest is not the only destination for Serbian tourists. We can welcome them very regularly in Szeged or in Morahálom. So if you visit during Morahálom during weekends or Serbian holidays, you can you can hear all the Serbian words in the city.

It is our aim as well to convince our Serbian friends not to visit only Budapest. We have wonderful places is in the North and Southeast. We have very famous wine regions, which really deserve the attention. Considering Hungarian tourists in Serbia, until very recently, our tourists were mainly focused on Vojvodina, which is understandable for some historic reasons.

But in the past couple of years, a number of Hungarian tourists who visited other parts was slowly but surely growing. I suppose Serbia has a lot of quite interesting places to see, which really deserve the attention, let's say famous Serbian monasteries, or Serbian wine regions. Serbia is very strong in so-called rural tourism. I guess slowly but surely more and more Hungarian tourists will discover your beautiful country. I would use assertive campaign in Hungary to convince Hungarian tourists to come to Serbia.

It seems that the two countries benefit the personal relations between Mr. Orbán and Mr Vučić. I think Hungary and Serbia follow similar politics, although they are in the opposite blocs: Hungary is in the EU and NATO, but has good relations with Russia and China, while Serbia is out of the EU and especially NATO, but it has good relations with everyone?

— Yes, they have had very good cooperation for years. And I'm sure that both countries use this opportunity.

It is my firm conviction that we Hungarians and Serbians have always had more common things which connected us then those which separated us.

So practically, we have a similar celebration, similar habits, similar practices. We are members of other political organizations. But this doesn't mean that we couldn't have good neighborly relations, and really good cooperation with each other. I remember during my studies at the University, I read a lot of article about articles about our common history. And what was quite interesting for me that during the history when Hungary and Serbia lived together, it was not a problem for Hungarians to celebrate Serbian holidays and for Serbs to celebrate Hungarian holidays. So it was quite normal on those places, where I believed together, so it is quite normal. If we have a common fate, a

common history and a common life with each other. China or Russia are both countries with a great importance in a global scene. Cooperation with both countries had a lot of advantages, and my country's aim to use these advantages. And sometimes I'll receive a very strong criticism but I suppose it is quite normal to have a good cooperation with these two big countries. And I suppose your president has the similar view. Today it is impossible to avoid cooperation with Russia or China, even though Hungary is a member of NATO and the EU, but it doesn't mean we don't respect NATO or EU principles or rules, but it is in our interest to cooperate with these countries concerning the vaccination. Our two countries are leaders in Europe and in the world as well, concerning the vaccination.

The V4 countries are weak separated, but together we are as many as Germans, and our bilateral trade with Germany is bigger than France’s – which is the great example for SEE6

What can we do in cultural field to bring our nations closer?

— Yes, you know, since the 1st of July 2014, we have had a cultural centre in the heart Belgrade. Until the virus, we were very satisfied with its activity, which has become a well known brand in Belgrade due to the activities of my colleagues, who really did a lot to promote Hungarian culture in Serbia. When I started my career here as an ambassador, my goal was to promote the Cultural centre. The Hungarian culture from Hungary and of Vojvodina, and the culture of Serbs, who have been living for centuries in Hungary, because it is my firm conviction that this cultural centre can be whole only if we are ready to promote these three parts of our common culture. As you may know, in Hungary, we have had for decades a Serbian theatre, which has had always very good spectacles and we have a lot of Hungarian theatres in Vojvodina. Last year we reopened the reconstructed Serbian Orthodox Museum in Szentendre and Serbia was represented by its FM Mr. Nikola Selaković. I would like to mention the field of culture and education.

Since a couple of years, we have had wonderful programme in the field of education name is a Stipendium Hungaricum. And with this programme, the offer 45 places for Serbian students for education at the universities in Hungary. And every year, we have more and more interested people in this programme. So I would like to use this opportunity to emphasise the importance of this programme.

And what's still very important that the scholarship programme practically provides everything for the interested Serbians students, of course, including the scholarship.

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New OTP banka Srbija

New Banking Force on the Market resulting from Synergies of Large Banking Brands CLICK ON ICON 

C O R P O R AT E

he new OTP banka Srbija a.d. Novi Sad, created from the integration process between OTP banka Srbija a.d. Beograd (former Societe Generale Srbija) and Vojvođanska banka a.d. Novi Sad, has started operations in early May 2021. The most complex banking integration ever implemented in this region represents a strategic move of OTP Group, aiming to form the largest banking institution in Serbia.

Upon generating the annual growth in loans of 15% in 2020 the total net loans in Q1 2021 amounted to EUR 3.8 billion, thus positioning OTP banka as a market leader with 16.9% of market share in the loan segment, and the second largest bank in terms of asset size with a total of EUR 5.3 billion.

OTP banka has the largest number of ATMs in Serbia at 322 locations and more than 200 branches across the whole country.

"The integration journey that lasted for 19 months would not have been successful if it were not for more than 3,000 of our colleagues and their commitment to this process, professionalism and expertise. It seemed that the pandemic crisis stopped the world at times in 2020, but neither this slowed us down in our efforts to integrate two big systems. Because when you know where you are going, you can clearly see the road ahead. The ideal joining of values, the combination of techni-

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OTP banka is a market leader with 16.9% of market share in the loan segment, and the second largest bank in terms of asset size with a total of EUR 5.3 billion

cal sophistication, top customer experience and tradition represents a synergy of the best solutions of two major banking brands", stated Predrag Mihajlovic, President of the Executive Board of OTP banka Srbija.

“This integration is a milestone in the history of OTP Group. We have expanded throughout the region both organically and via acquisitions, and as a result of our growth strategy OTP is not only present in eleven countries, but we are a market leader in Hungary, Serbia, Bulgaria and Montenegro, and a play key role in several other markets. We are proud of this achievement and OTP Group is keen to contribute to the long term success of the Serbian economy and the well being of Serbian society. Our regional expansion strategy is recently recognized by the Euromoney Awards for Excellence 2021, as OTP Group was named the best bank in Central and Eastern Europe. I am proud that Euromoney, which has run the awards since 1995, pointed out that our Group was the only bank in the region to post a double digit return on equity and had an impressive 9% growth in the loan portfolio, all while completing two complex merger processes including the one in Serbia” - said Mr. László Wolf, Chairman of the Board of Directors of OTP banka Srbija and Deputy CEO of OTP Bank.

The new OTP banka opened its doors

to its clients with a significantly enriched offer - new welcome packages, representing a diverse offer with a wide choice of benefits and focus on enhancing digital banking. Clients have the following at their disposal: online cash loan and automatic overdraft renewal, online purchase of travel-health insurance, online standing order and direct debit activation, early credit card debt repayment, but numerous benefits for our card holders as well, using the phone as a card (with mCard and ApplePay), P2P payment and transferring funds to private individuals by e-mail and phone, and a lot more.

OTP Leasing Srbija, a leader in the leasing market of Serbia by production, also operates within OTP Group, as well as OTP Insurance, which provides life insurance services.

OTP banka remains a loyal longterm partner to the Olympic Committee of Serbia and is fully supporting Olympic athletes representing Serbia at the current Olympic Games in Tokyo. In order to provide better conditions for athletes, OTP banka has enabled a part of the funds to be invested in the sports investment fund from each transaction with the Visa Gold Olympic credit card at the expense of the bank. Through the 5th Generator project this year the Bank will support social entrepreneurship and those who care about ecology and environmental protection.

H U NG A RY

External Trade Between Serbia and Hungary On the Up In 2020, the total external trade with Hungary amounted to 1,943.8 million euro, which is 10.3 percent more than in the same period in 2019

C O O P E R AT I O N

rade between Serbia and Hungary has been continuously growing, as are Hungarian investments in Serbia. Hungary is also Serbia's third most important external trade partner in the EU. According to the data collated by the State Bureau of Statistics, in the period from January to March 2021, the total external trade in goods with Hungary amounted to 530.6 million euro, which is a 7.3 percent increase compared to the same period in 2020. Total exports in the same period amounted to 245.1 million euro, an increase of 28.5 percent, while total imports amounted to 285.5 million euro, a decrease of about 6 percent. The external trade deficit, in the period from January to March 2021, dropped by 64.2% and amounted to 40.4 million euro. The export to import ratio in the same period was 85.9 percent, which is 23 percentage points more than in the period from January to March 2020.

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ECONOMIC COOPERATION BETWEEN SERBIA AND HUNGARY IN 2020

According to the data of the State Bureau of Statistics, in 2020, the total external trade in goods with Hungary amounted to 1,943.8 million euro, which is 10.3 percent more than in the same period in 2019. Total exports in the period from January to December 2020 increased by 8.5 percent and amounted to 805 million euro, while total imports amounted to 1,138.8 million euro, which is an increase of 11.7 percent relative to the same period in 2019. The external trade deficit in 2020 was 333.8 million euro (a 20 percent

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increase). The export to import, in the January - December 2020 period, was 70.7% (a 2 percent decline relative to the same period in 2019), Serbia's mostly exported the following products to Hungary in 2020 - sets of ignition wires, other sets for vehicles, new tires for passenger cars, parts for piston engines for ignition using spark plugs, pipes and hoses.

Also, in the same year, Serbia mostly imported the following products from Hungary - goods unclassified in the customs tariff register, gas oils for non-standard purposes (S = <0.001%, without biodiesel), medicine for retail and others.

COMPANIES IN SERBIA WHICH ARE MAJORITYOWNED BY HUNGARIAN NATIONALS

According to the data collated by the Business Registers Agency of the Republic of Serbia, there are 635 active companies registered on the territory of the Republic of Serbia which are majority-owned by the Hungarian nationals, i.e. legal entities registered in Hungary. When it comes to the economic branches, as part of the plastics and plastic product category, products used for transport of packing of goods would be interesting to pay more attention to when talking about the prospect of improving the external trade balance of the Republic of Serbia with Hungary. In 2019, Hungary imported 158-millioneuro-worth of these products from Serbia, as well as 61.4-million-euro worth of self-adhesive plates, sheets, films, etc. made of plastic. Regarding the Furniture product group, the

There are 635 active companies registered on the territory of the Republic of Serbia which are majorityowned by the Hungarian nationals

most interesting product is seats, including those that can be converted into beds. In 2019, Hungary imported 160 and 21-million-euro worth of these furniture products respectively. In regard to the paper and cardboard product group, Hungary mostly imported toilet and similar paper, as well as corrugated paper and cardboard from Serbia.

Other rubber products, as well as car tires, have been identified as promising products that can be used to improve the cooperation between Serbia and Hungary. There is also potential for the export of copper pipes, flatrolled non-alloy steel products and iron or steel pipe fittings. Pastries, cakes and biscuits, but also pork also have great export potential, as does malt-derived beer.

In order to increase Serbian exports to Hungary, as well as to balance out the existing trade, Serbia should focus more on the segment of infrastructure, more precisely on the reconstruction of the Budapest-Belgrade railway, financed by a loan granted by the Chinese fund for CEEC, then on the longterm forms of cooperation, investments, production cooperations, etc.

Serbia should also intensify the cooperation in promising sectors, as well as have a more active export strategy, among other things through appearances at the most important trade fairs in Hungary, as well as at specialized exhibitions that would present selected branches of our economy.

Economic and trade relations with Hungary, which remains a strategic partner of Serbia both politically and economically, have significant prospects for growth and mutual benefit.

Customers are the Focus of Everything We Do During the previous year, which brought challenges in all fields, we have opened five new service stations, and we are planning to maintain a similar progress this year as well

that, it is important to work on building a team that is ready to respond to all challenges. That is why one of my priorities is to invest in people, in a top-grade team of professionals who recognize MOL Serbia as an employer that helps their professional development and appreciates the commitment to mutual success.

C O R P O R AT E

OL Serbia appointed Milenko Janković as the new CEO in April this year. Mr. Janković has more than 20 years of experience in various management positions. We talked with Mr. Janković about the successful results of MOL and further goals of managing this company.

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After 20 years of experience in various managerial positions, you came to the position of CEO at MOL Serbia. On what principles do you base your business attitude and what goals have you set for yourself in the new position?

— Customers are the focus of everything we do. By expanding the network and increasing the number of stations, we strive to get closer to them and offer them our products and services. In five years, I would like to increase significantly the number of locations and stations, which will provide us one of the leading positions on the market.

MOL Group's 2030+ Shape Tomorrow Strategy defines the goal we are aspiring for - to become a digitally oriented leader in the consumer goods retail and a provider of innovative mobility services. In order to achieve

MILENKO JANKOVIĆ CEO at MOL Serbia

Our goal is to offer customers high quality fuel that will contribute to the preservation of the engine and its extended service life

One of the main goals of MOL Serbia is to expand the retail network.

What has been done so far, and what is planned for the future?

— Serbia is an important market for MOL and in accordance with that, we are looking for opportunities for further growth and expansion of the retail network. During the previous year, which brought challenges in all fields, we have opened five new service stations, and we are planning to maintain a similar progress this year as well. The first in a series of stations we have opened this year was in Temerin.

The company has begun to transform its service stations six years ago based on the Fresh Corner concept. How much has this concept contributed to the quality and integrity of the services, but also to customer satisfaction?

— Refuelling is only one part of the service that customers expect at the service station. What customers state as their expectations based on our research include also pleasant atmosphere, top quality service, as well as additional facilities such as - a terrace, children's corner, and an offer of warm meals.

First Fresh Corner has been opened at our service station Horgoš 2, five years ago, and today we have 27 Fresh

Corners in the MOL Serbia network. In accordance with the 2030+ Strategy, our idea is to further develop this concept in Serbia with additional enhancement of the offer in order to become the number one choice for customers.

As a part of the regional network, Fresh Corner has brought top quality service that is common to all our facilities, with an offer customized to the local tastes. Customers can enjoy quality coffee, fresh hot dogs, sandwiches, pastries, or take a break at our highway stations and try one of the warm dishes.

It can be read on various forums that customers state that MOL fuel is of exceptional quality, and given that fuel plays a key role in preserving the functionality and efficiency of the engine, what makes MOL fuel so high quality?

— Engine reliability, longer service life and quality fuel are extremely important to our customers. That is why we are constantly working on improving MOL EVO and EVO Plus fuels, as well as the MOL EVOTECH formula, which we have enriched with additional amounts of additives. Our goal is to offer customers high quality fuel that will contribute to the preservation of the engine and its extended service life. MOL EVO and EVO Plus fuels which are offered at our service stations come from MOL Group refineries. That gives our customers additional security when it comes to the product quality. The customers recognize the quality of our fuels and we are proud of that. The strategic goal set by the long-term Strategy of the MOL Group 2030+ is to sell kilometres instead of liters and be ready to expand the offer with alternative fuels.

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H U NG A RY by ŽIKICA MILOŠEVIĆ

ECONOM Y

Stable Central European Pillar Economy on several ”legs”

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nce upon a time, Austro-Hungary had one of the ten most powerful economies in the world. It was a superpower into which money and culture simply flowed. Independent Hungary inherited a lot, but it also lost a lot, and yet it never left the top of Europe. After losing 600,000 people and a huge part of its industry after the Second World War, it entered the SEV, where it was one of the best countries. Then, the country embarked on a transition, from which it emerged victorious, but somewhat bruised. The strong Hungarian national and community spirit helped a lot in this.

It is interesting to note that, unlike some other countries, Hunga-

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ry has a very complex economy. Instead of relying mainly on services, the robust Hungarian economy also relies on strong agriculture, industry, oil fields and tourism, and thus, as a mixed economy with high income, is ranked the 9th most complex economy according to the index of economic complexity. That is, Hungary’s economic “table has many steady legs."

Also, Hungary, along with Poland, did not accept the euro as its official currency and thus has a greater opportunity to influence fiscal flows.

Hungary is a member of the Organization for Economic Co-operation and Development (OECD), has a very high human development index, a skilled workforce, and the 13th lowest in-

The Hungarian economy will only show its strength in the second half of this decade, when, according to IMF estimates, it will become a serious competitor to many "old" EU members

with 20%. Due to this orientation, Hungary is still one of the leading countries in Central and Eastern Europe for attracting foreign direct investments: FDI in the country amounted to 119.8 billion dollars in 2015, while Hungary has invested more than 50 billion dollars abroad. Since 2015, Hungary's key trading partners have been Germany, Austria, Romania, Slovakia, France, Italy, Poland and the Czech Republic, and more recently Croatia and Serbia. Major industries include food processing, pharmaceuticals, motor vehicles, information technology, chemicals, metallurgy, machinery, electrical goods and tourism (Hungary had 12.1 million international tourists in 2014). Hungary is the largest producer of electronics in Central and Eastern Europe. Ferenc Liszt Airport is the main flight hub of Central Europe, and the automotive and electronics industries are the flagships of the economy.

In the last 20 years, Hungary has also grown into a major mobile technology, information security and related hardware research centre.

Well-known Hungarian companies include MOL Group, OTP Bank, Gedeon Richter Plc., Magyar Telekom, CIG

Pannonia, FHB Bank and Zwack Unicum, many of which operate in Serbia too. The German Mittelstand was also well-received in Hungary, and Hungary has a large number of specialized small and medium-sized enterprises.

When Yugoslavia "abdicated" from the world stage in 1991, Hungary stepped on it. It is no wonder that most of the world's companies today are based in this alpha city, which is the second fastest-growing urban economy in Europe. Trianon and the change of borders have made the once divided state very centralized: at the national level, Budapest is the capital of Hungary for business, as it generates up 39% of the national income. It is also a global metropolis. In the ranking of global competitiveness of cities by the EIU, Budapest is, among others, ranked above Tel Aviv, Lisbon, Moscow and Johannesburg.

All in all, conservative and cautious, and always looking to the future, just like the Hungarians themselves, the Hungarian economy will only show its strength in the second half of this decade, when, according to IMF estimates, it will become a serious competitor to many "old" EU members.

come inequality in the world. Probably, the egalitarian Hungarian spirit would not allow for greater differences. Today, the Hungarian economy is only the 57th largest economy in the world and ranks 40th in the world in terms of GDP per capita, measured by purchasing power parity, but for a country with such a small population, this is a great success. Hungary has an export-oriented market economy with a strong emphasis on external trade; thus, the country is the 35th largest export economy in the world.

Hungarians like to spend money on their families. Household consumption is a major component of GDP and accounts for 50% of its total value, followed by gross fixed capital formation with 22% and government expenditure

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H U NG A RY by ŽIKICA MILOŠEVIĆ

Spa Culture

The Bonvivents in Healthy Water

CUSTOMS

hey say that the ancient Romans had a tradition of enjoying thermal baths for good health and that this tradition was continued by the Eastern Romans - the Byzantines, and later, on the same land, by the Turks. It makes sense! However, very few tourists expect to find such a wealth of spas and such a love for the spa in Hungary, of all places. And that's exactly what's happening here!

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LOCATION, LOCATION, LOCATION

The Roman Empire was large, and on its periphery, there was a province called Pannonia, which covered approximately half of present-day Hungary.

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The Romans discovered many good baths, the gift of the old and never completely diminished Pannonian Sea. Then the Slavs and the Germans move to the area, followed by the Hungarians in the 9th century, and several other nations that will merge with them. They all continued the tradition of building a balanced life and maintaining health thanks to the use of spas and thermal baths. Although the Hungarians were steppe people, they quickly got used to the benefits of spas.

The key to Hungarian spa culture lies in its location in the Carpathian Basin, that is, the central part of the Pannonian Plain. Geology makes all the difference here - the Earth's crust is very thin here, and that allows water

The Roman Empire was large, and on its periphery, there was a province called Pannonia, which covered approximately half of presentday Hungary

to easily rise to the surface and break through the thin layer that separates groundwater from the ground. Then, it starts to boil, produces bubbles, and makes people happy. From ancient times, and throughout Hungary’s history, the hot water that was released throughout this region has been used well for its beneficial effects. The ancient Romans appreciated the healing effects of Hungarian thermal waters and developed a bathing culture in Hungary more than 2,000 years ago, as we have already mentioned. There is also a link to the famous Turkish hammams. Although many peoples in the region boast that they were not conquered by the Ottomans, this is simply not true. The Hungarians are ready

and proud to say that Hungary was part of the Ottoman Empire for about 150 years and that during the Turkish occupation in the 16th century, the Turks brought their beautiful Turkish baths, some of which are still in use today.

HOW MANY OF THEM ARE THERE?

More than enough, not only to live healthily thanks to them but also to set up businesses based on them. Hungary is home to more thermal springs than any other place in the world – they have more than 1,000 of them. All this has resulted in very beautiful and historical spas located in lovely buildings and adorned with attractive architec-

ture. From ancient times, Hungarian springs have attracted some of the most famous people in the world. They say that it all started with Emperor Marcus Aurelius, but the famous Hungarian acting star Zsa Zsa Gabor was also known to use them.

Mórahalom, and earlier, Harkány, which is located in the region of Baranya, not far from Pecs, are the two most popular spas with the Serbs. Since the discovery of water with medicinal properties 150 years ago, the number of tourists visiting the Harkany Spa has reached one million people a year.

Harkany is one of the city’s most famous spas; a lot of places for accommodation and recreation have been

Imagine swimming in something that resembles a castle or a fortress from the Middle Ages.

That’s the kind of experience that spas in Budapest and Gyula will give you

built around it, and it is also popular for treating rheumatism. The Szent Erzsebet spa is located in Mórahalom, and it has four wells with healing water (Arpad, Erzsebet, Szent László and Mátyás). The spa water is used to treat gynaecological diseases, abrasive and inflammatory diseases of the joints, problems with the spine and muscle rheumatism, so it is rightly called the "the knee and shoulder centre”. Visit Hungary advises that we should also visit Gyula, as one of the most beautiful spas. "Further south, the unique Castle Baths in Gyula are set around a medieval fortress, the spa converted into a recreational area in 1970, 450 years after the Turks bathed here,” the website says. However, spas in Budapest are the biggest hit with tourists and locals. The Széchenyi Spa, which is the largest in Europe, has two thermal springs, with water temperatures ranging from 74°C to 77°C. This spa is the most popular because it is the most beautiful - it is located in the City Park and was built in the Neo-Baroque style.

Imagine swimming in something that resembles a castle! People frolic and play chess here. Of course, there is also the Gellért Spa, built in the Art Nouveau style, and is part of the famous Gellért Hotel in Buda.

The list goes on and goes because Hungary is rife with beautiful spas like Egerszalok, with cascading pools as in Pamükkale. Hungary is spa heaven and spas are definitely part of Hungarian culture and national customs.

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H U NG A RY by ŽIKICA MILOŠEVIĆ

Sziget Festival

C U LT U R E

Role model for everyone

irst, it was Sziget, then came Exit and then INmusic. The three festivals followed in the footsteps of each other. But, the first in our part of the world was Sziget - monumental, set in Pannonian plains, Budapestian, Danubian, often identified with daylight.

The Sziget Festival or literally "The Island Festival" ("Sziget" means “island” in Hungarian) is one of the larg-

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est music and cultural festivals in Europe. It takes place every August in northern Budapest, Hungary, on Obudai-sziget ("The Old Budim Island"), a green island on the Danube. spanning 108 hectares. More than 1,000 concerts are held here every year. In addition to music, the festival offers many other activities, including cinema, dancing, theatre, tattooing, Internet access, volleyball, tennis, football,

Sziget is back on in 2002, in all of its glory, when it will again offer a “dream team” to regional giggoers

indoor rowing, rock climbing, bungee jumping and life-size soccer. The island is located in the city of Budapest, and festival visitors can take daily trips to the city centre.

While we, in Serbia, were languishing under sanctions, in the 1990s, Hungary was opening up to the world. Like Exit 2000, Sziget 1993 was a student event that did not receive much attention at first. Its evolution is also interesting - the next year, in 1994, it was named Eurowoodstock, and it featured performers from the original Woodstock.

It did not resemble today’s Sziget one iota. But then the madness started...

By 1997, total attendance exceeded 250,000, reaching the number of 496,000 visitors from 95 countries in 2016 (daily capacity increased to

90,000). That record was once broken in 2019, when 565,000 visitors attended the festival. Since the mid-2000s, the Sziget Festival has been increasingly referred to as a European alternative to the Burning Man Festival due to its unique features ("electronically amplified, a distorted amusement park that has nothing to do with reality"). Although, it seems that the organizers carefully observed the English Glastonbury, and subsequently managed to make "Eastern Glastonbury" out of Sziget.

And while Exit soon reduced its duration from initial 9 days to 4, like most festivals in the world, Sziget continued with its neverending party which, to this day, lasts 7 days. Most of the visitors are not Hungarians though. They come from Serbia, Ukraine, Central and Eastern Europe, but perhaps mostly from Western Europe. In 2011, The Independent ranked Sziget as one of the top 5 festivals in Europe. The festival is a two-time winner of the European Festival Awards in the Best Major European Festival category, in 2011

In 2002, Sziget branched out into Transylvania when its organizers co-created a new annual festival called the Félsziget Fesztival

and 2014. It also has a dedicated "party train" service (with resident DJs) that transports festival visitors from all over Europe.

Like Exit, Sziget expanded long before. In 2002, Sziget branched out into Transylvania when its organizers co-created a new annual festival called the Félsziget Fesztival (Romanian: Festivalul Peninsula), which soon became the largest of its kind in Romania. In 2007, the organizers jointly created Balaton Sound, an electronic music festival held on the south coast of Lake Balaton that quickly gained popularity.

While others always tried to be, like Iznogoud, "a caliph in place of a caliph" and become "Sziget in place of Sziget", the festival was always ahead of them. Sziget always knew how to create a perfect middle ground between the alternative, the mainstream and electronics, satisfying everyone's tastes. Thoughtful and balanced, it became almost ideal. In 2021, like in 2020, due to the still uncertain situation with the Covid-19 pandemic and the fact that most visitors could not come, the festival did not take place unfortunately although Hungary has had a really good epidemiological situation. However, Sziget is back on in 2002, in all of its glory, when it will again offer a “dream team” to regional gig-goers. Let's remain nostalgic this August and come next year, let's enjoy Sziget 2022.

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H U NG A RY by ŽIKICA MILOŠEVIĆ

TOURISM

Lake Balaton

Welcome to the Hungarian Sea!

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uring the Habsburg Monarchy, spas and lakes were as popular as the sea, if not more so. There were no planes to fly you there, so every trip was an adventure. Lake Balaton was conveniently located right in the heart of the K. und K. monarchy and Hungary - which made it a hit destination at the time.

And not only at that time... Many Yugoslavs, especially from Slovenia, Croatia and Vojvodina, liked to spend their summer vacations on Lake Balaton, during the socialist era. It was an adventure abroad, financially affordable and exotic. "Let's go to the 'Hungar-

D

ian Sea'!" - exclaimed the children excitedly in the 1980s.

Indeed, after Hungary lost its access to the Adriatic Sea 100 years ago, Lake Balaton was and remains the closest seaside atmosphere in this part of the world, without it being located on the seaside. If you feel like you are at sea on lakes Ohrid, Doiran or Prespa, then you can imagine how a person feels on this, many times larger lake.

Today, in an era of travel restrictions, various certificates that we need to have to cross borders and the risk of contracting viruses, the Hungarians have rediscovered "their little sea". In 2020, when the Serbs discovered lakes

of railways in 1861 and 1909 significantly boosted tourism, but the post-war boom of the 1950s was even greater.

During the 1960s and 1970s, Lake Balaton became a major tourist destination thanks to focused government efforts, with the number of overnight stays at local hotels and camps went up from 700,000 in July 1965 to two million in July 1975. With weekend visitors to the region, including tens of thousands from Budapest, the number exceeded 600,000 by 1975. The lake was popular with everyday working-class Hungarians, especially for subsidized holiday trips for trade union members.

It also attracted many East Germans and other residents of the East Bloc, including the Yugoslavs. West Germans could also visit, making Lake Balaton a common gathering place for families and friends separated by the Berlin Wall until 1989. For the Austrians, it was a close alternative to the sea.

NOW WHEN, NOW WHAT? Siófok, Keszthely and Balatonfüred are the main resorts situated around the lake. However, others have something to offer too. Zamárdi, a town on the south coast, has been the site of Balaton Sound, a major electronic music festival since 2007. The town of Balatonkenese has hosted a number of traditional gastronomic events. Siófok is

known for having big and interesting nightclubs, so it is, rightfully so, very popular with young people. Keszthely is the site of the palace of the Counts of Festetics, and Balatonfüred is a historic city. If you doubt the attractiveness of this city, just remember that Rabindranath Tagore, a famous Bengali poet, who went for medical treatments to Novi Sad’s Jodna Banja (The Iodine Spa), also stayed there. Today, there is an entire promenade dedicated to the famous Indian. Also, the famous actress Louise Blach had a house there, which is still dedicated to her.

The peak tourist season extends from early June to late August. The average water temperature during the summer is 25°C, which is the same as any warmer sea. Most beaches consist of grass, rocks or muddy sand, which also forms most of the lake’s bottom. Many resorts have artificial sandy beaches, and all beaches have a small staircase that leads you into the water. At some parts of the lake, you could have sworn you are at the seaside. Other tourist attractions include sailing, fishing and water sports, as well as visits to the countryside and hills, wineries on the north coast and nightlife on the south coast. If you like two-wheelers, the lake is almost completely surrounded by separate cycling tracks to facilitate cycling tourism.

Pačir, Golubac or Neum, the Hungarians rushed to the shores of the magnificent lake, which fell into oblivion somewhat.

A TOUCH OF HISTORY There is no valid reason why this lake should fall into oblivion. Several settlements on Lake Balaton, including Balatonfüred and Hévíz, have long been some of the favourite resorts of the Hungarian aristocracy and were widely popular as Karlsbad or Marienbad. However, it was not until the end of the 19th century that the Hungarian middle class began to vacation on the lake since the middle class did not use carriages very often. The construction

If you doubt the attractiveness of Lake Balaton, remember that Rabindranath Tagore stayed there

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Hungary FOCUS ON

2021