Diplomacy & Trade 2011 September by Diplomacy&Trade

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THE GERMAN QUESTION - AGAIN? POLITICAL ANALYSIS PAGE 4

AUTOMOTIVE FOCUS

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COUNTRY FOCUS: PORTUGAL

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ISRAELI AMBASSADOR’S FAREWELL

LASZLO L. SIMON ON CULTURE

DANUBE BEND

TOKAJ NAME DISPUTE

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republic of portugal > “THE IDEA THAT THE FIRST PORTUGUESE KING’S FATHER was of Hungarian origin may be one of the reasons why Hungary enjoys a romantic, very friendly place in the Portuguese imagination. Even if this has no historical evidence, this traditional assertion is mentioned in the major Portuguese work of literature "Os Lusiadas" written in the 16th century. However, this attraction is mainly due to the rich Hungarian history and culture that has been captivating Portuguese people's interest.” These words by the Portuguese Ambassador to Hungary, Antonio Augusto Jorge Mendes to Diplomacy and Trade reflect what sort of things can connect two countries as distantly located from each other as Portugal and Hungary.”

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automotive focus > THIS SPECIAL SECTION LOOKS at the development of the automotive industry in Hungary in the past 20 years. We present the mayors of the two cities that host the largest investments in this sector in the country and talk to experts on the perspectives of car manufacturing and sales.

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Country protection plan > THE LATEST PLAN BY THE GOVERNMENT, announced in Hungarian Parliament by Prime Minister Viktor Orban includes measures affecting the cost of borrowing, utilities prices and Hungarians with foreign currency-denominated mortgages. It also holds out the possibility of a higher VAT rate for luxury purchases and the expansion of a public jobs program. He said the pace of reforms would be accelerated and a new sense of national solidarity established. The government will extend the system of centrally-regulated prices of household energy to water, sewage and trash pickup services. The government wants to introduce a 35% VAT rate for the sales of luxury items and services and reverse taxation in the farm sector, he added. On these issues, Hungary will seek approval from the European Commission.

HOLIDAYS from the Specialists – these holidays are prepared especially for those who insist on high quality travel, accomodations and enriching programs. All this at the right price! For full details contact Mária Gordon, E-MAIL gordon.maria@morea.hu • PHONE: +36 30 921-0510

GREAT “VIP” AUTUMN GETAWAY PROGRAMS, OCTOBER 27TH – NOVEMBER 2ND trip options Q Fall in Love with Lisbon and Madeira, Q Wonders of Israel and Petra, (holiday in Eilat, sightsseing tours in Tel Aviv, Jerusalem, Dead Sea and Massada. Optional program in Petra)

CELEBRATE NEW YEAR’S IN A “NEW WAY” DECEMBER 27TH – JANUARY 7TH trip options Q Sri Lanka with a stopover in Mumbay in 5 star hotels. New Year’s Eve in historic Kandy. Q Tour Delhi, Agra and Mumbay. New Year’s Eve at Goa seaside resort.

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LETTER FROM THE PUBLISHER > WHILE BEFORE THE CHANGE OF THE POLITICAL SYSTEM, Hungary was allocated the manufacture of autobuses within the Soviet bloc, the last two decades have seen the arrival of some of the biggest names in the world’s automotive industry: Audi, Mercedes, Opel, Suzuki. In this edition of Diplomacy and Trade, we talk to the mayors of the two cities that attracted the largest investments in car manufacturing, Gyor and Kecskemet, about the impact these companies have had on their cities and the surrounding areas. An investment expert looks at the attractiveness of Hungary for the car industry and the ability of Hungarian companies to become an integral part of the supply chain. We also discuss with the head of the association of automobile dealers the reasons for the drastic fall in new car sales in Hungary. Also in this edition, our political analyst discusses the role of Germany in the present and future of the European Union. This month’s country focus is Portugal. I would like to thank H.E. Antonio Augusto Jorge Mendes for his contribution as we look at bilateral political, business and cultural relations as well as tourism. On the cultural front we look at the Danube Bend, a string of picturesque small towns north of Budapest. Additionally, we have an article on the northeastern Hungarian region of Tokaj where the HungarianSlovak dispute on using the geographical brand name may end soon. Outgoing ambassadors also contributed to the present issue of Diplomacy and Trade. Aliza Bin-Noun of Israel talks about her four-year tenure in Budapest, while Korea’s Chung-Ha Suh has written a piece for our Witty Leaks series.

The Memory of 9/11

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Peter Freed PUBLISHER

NATIONAL ASSEMBLY'S COMMITTEE ON FOREIGN AFFAIRS > “CENTRAL EUROPE HAS NO GEOGRAPHIC BOUNDARIES. This is primarily cultural and spiritual phenomenon, which should translate into political and economic cooperation,” Hungarian Foreign Minister Janos Martonyi (on the left) said at a meeting with Austrian Foreign Minister Michael Spindelegger, Italian Foreign Minister Franco Frattini and Pierre Vilmont, Secretary-General of the European External Action Service, held in Pannonhalma on August 31.

Joe Woolhead/MTI, David Harangozo

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Newsstand price: HUF 840, EUR 3 Subscriptions are available for an annual fee of EUR 33 in Hungary, or EUR 90 to all other destinations. Payment may be made with American Express, MC, Visa, and Eurocard.

> THE TERRORIST ATTACKS ON THE UNITED STATES TEN YEARS AGO HAVE CHANGED THE WORLD AS WE KNOW IT. As U.S. President Barack Obama put it, “we remember that 9/11 was not only an attack on the United States, it was an attack on the world and on the humanity and hopes that we share. On September 12, 2001, we awoke to a world in which evil was closer at hand, and uncertainty clouded our future. In the decade since, much has changed for Americans. We’ve known war and recession, passionate debates and political divides.” However, he added that “our belief in America, born of a timeless ideal that men and women should govern themselves; that all people are created equal, and deserve the same freedom to determine their own destiny –- that belief, through tests and trials, has only been strengthened.” Former President George W. Bush said 9/11 proved that conditions in other countries could have an impact in American streets. He reasoned American presence in world affairs by stating that “it may be tempting to think it doesn’t matter what happens to a villager in Afghanistan or a child in Africa, but the temptation of isolation is deadly wrong.” The then Mayor of New York city, Rudolph Giuliani recalled the tragic events by saying that “I think, spiritually we're stronger. We have to remind ourselves…we were attacked with the worst attack in the history of this country and we survived it. And the city is bigger, stronger - you know, twice as many people live down here now as before September 11th… The terrorists thought they were going to destroy this place - this place is twice as big as it was before.” As many countries worldwide, Hungary also prepared a series of events to commemorate the victims of terrorism and – as a communique by the Foreign Ministry says – “to further strengthen the fight against terrorism”. The document states that “ Hungary is ready for further action against terrorism, including the elimination of causes that promote terrorism, as well as for intercultural dialog and the strengthening of international law and respect for democratic values.” As an expression of sympathy and respect for the memory of all victims of terrorism, a memorial concert was held at a Lutheran church downtown Budapest under the patronage of the President of the Republic of Hungary, Pal Schmitt, and attended by the Hungarian political and administrative leadership, counter-terrorism agencies and representatives of the diplomatic corps accredited to Budapest. The International Center for Democratic Transition (ICDT) organized a conference ‘Ten years After, Remembering 9/11 ‘ in Budapest in association with the U.S. Embassy and the Ministry of Foreign Affairs of Hungary. In a related event, the Counter-terrorism Center and the Scientific Council of Ministry of Interior holds an international conference on September 29-30 with the title ‘Terrorism and Democracy in the 21st Century’.

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For the Future of the Printing Industry in Hungary OCÉ-HUNGARIA IS A KEY PLAYER ON THE HUNGARIAN MARKET ORIGINALLY A FAMILY BUSINESS ENGAGED IN FOOD COLORING RESEARCH, the Dutch company Océ has developed into one of the world’s major printing industry firms employing 22,000 people worldwide and realizing a turnover of EUR 3 billion in 2010. Océ is distributing its products and services in 80 countries. It is presently in 30 countries with its own branch offices. One of these countries is Hungary where the Océ Hungaria Kft. was established in 1995 with activities ranging from distributing the company’s equipment and software to counseling, system integration, servicing and printer supply. As Océ Hungaria Managing Director Gyorgy Nemeth explains to Diplomacy and Trade, Océ is actively involved in all operations related to printer equipment: from the design and manufacture through to sales and service, to providing business services with financing. It also plays a pioneer role in large-scale personalized digital printing such as utility bills or bank account statements. The biggest change since the inception of Océ occurred in March 2010. The Canon Group bought 90% of the shares in Océ, creating the largest company in the printing industry, which, therefore, has the full range of products and services to offer. Currently, the two companies operate as separate legal entities with integration teams ensuring and harmonizing cooperation of the companies on regional and national levels in all business segments. Thanks to its excellent products and savvy professionals, Océ has made significant progress in Hungary. In the market of high volume printers, wide format engineering print systems and related services, the firm enjoys a leading position in this country, too, while in

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Ferenc Kalmandy/MTI, David Harangozo

the area of office document management, it is a key player in the Hungarian market. In 2011, the estimated turnover of the Hungarian branch, employing a hundred people, will reach HUF 3 billion (EUR 11 million). Since these

machines require prompt, highly technical support, Océ Hungary employs several service engineers, consultants, software specialists, all trained abroad. They are on 24-hour stand-by as the machines work constantly and even a short

New Gas Pipeline between Hungary and Croatia Operational

Memorial Plaque Unveiled

> A NEW NATURAL GAS PIPELINE CONNECTING HUNGARY AND CROATIA WAS PUT INTO OPERATION EARLY AUGUST. It is a milestone event for Croatia as, for the past 33 years, the country's only access to an international gas pipeline had been a single line to Slovenia. System operator Plinacro said the new pipeline connecting Varosfold in Hungary and Slobodnica in Croatia has expanded the latter's import capacity. It will provide wider access to supply sources, or even allow Croatia to become and exporter. Approved in 2009, the project cost EUR 395 million and has created 80.5 kilometers of pipeline in Croatia and 210 kilometers in Hungary. Plinacro, teamed up with MOL subsidiary FGSZ as its Hungarian partner, contributed EUR 75 million to the project costs. 2011 SEP

stop may mean a loss in business for the user. Therefore, all the technical persons are constantly trained and highly motivated to ensure a high-level service for the customers. “It is an added value that only a few companies can provide. This is one of Océ’s strengths,” Gyorgy Nemeth points out. New products are inspired by direct feedback and experience from customers. Océ’s business model considers cooperation with its partners important in all areas. This includes research and development, manufacturing and transportation. Gyorgy Nemeth calls attention to the challenge in the printing industry that the circulation of books and newspapers is on the decrease, mainly due to the spreading of contents online. “We can call this decrease dramatic. It has such an impact on advertising income in the printed media that by 2012, the amount of money spent on online advertisements may reach those spent in the printed media,” he says. “Of course, everybody is looking to make up for the lost income, and that is where digital technology comes into the picture. This makes it possible to print books and newspapers for small circulation in a profitable way, while the classic offset technology is economical for large circulation only,” he adds. Gyorgy Nemeth likes the challenges of introducing and spreading new technology, and the business philosophy that focuses on the human factor. Besides work, he enjoys time spent with his family as well as sports (tennis, swimming and bicycling) but music is also very important in his life as “I have been holding a guitar in my hands for 40 years now” playing rock and jazz music for himself and for friends. <

> A MEMORIAL PLAQUE WAS INAUGURATED IN THE HOLOCAUST MEMORIAL CENTER IN BUDAPEST at the end of August to recall the memory of the victims of the Kamenec-Podolsky massacre of Hungarian Jews 70 years ago. In July and August of 1941, nearly 16,000 Jews regarded as aliens or whose citizenship was stated to be unresolved, were deported to territories under German rule in Galicia where the Germans massacred them in the vicinity of Kamenec-Podolsky. This was the first "five-digit massacre" during the Holocaust of the European Jewry and also the first massacre of the Holocaust to be legitimated by the Hungarian leadership. By unveiling the plaque, the Government of the Republic of Hungary and the Ministry of Public Administration and Justice paid homage to the memory of the victims.

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EUROPEAN UNION: A PROBLEM OR A SOLUTION? B Y T A M A S M A G YA R I C S DIRECTOR OF HUNGARIAN INSTITUTE OF INTERNATIONAL AFFAIRS

IT WAS COMMONPLACE AMONG HISTORIANS and researchers of international relations to refer to the Federal Republic of Germany (FRG) during the Cold War years as an ’abnormal’ country. The ’Bonn Republic’, in general, imposed a number of selfrestrictions upon herself, first and foremost in the area of security. The Germans were among the most dedicated Atlanticists. The FRG was also known for her ’checkbook diplomacy’; it primarily meant financing the ’European project’ and accepting French political leadership within the European Economic Community (EEC) and, later, the European Community (EC). A number of West German political leaders were also afraid of a resurgent Germany. Their strategic goal was to integrate the country as completely into Europe as possible. For them, to be a German sometimes meant to be a good European first and a good German only second. One of the final building blocks into the

European ’edifice’ was giving up their currency, the Deutschemark in favor of the Euro. The dramatic changes in the international relations in the post-Cold War period triggered significant shifts in the ’Berlin Republic’. The

> AT T H E H E L M I N B E R L I N : German Chancellor Angela Merkel grapples with the euro-zone crisis

geopolitical position of the (re)united Germany became different from that of the FRG in various ways. The single most important factor was the collapse of the Soviet Union and, therefore, the disappearance of the threat perception that had defined the security outlook of the Bonn Republic. Although, the Chancellor of the (re)unification, Helmut Kohl, continued to be a committed Atlanticist, his successor, Gerhard Schroder opted for a more independent foreign and security policy. One, he openly opposed the George W. Bush Administration’s Iraq policy – even a sort of Paris-Berlin-Moscow ’axis’ emerged on the eve of the war on Iraq in late 2002 and early 2003. Two, he pursued a spectacular rapprochement with Russia. Chancellor Schroder called President Putin a ’true democrat’ and, more importantly, concluded a deal with Moscow to construct the Nordstream pipeline. The political and strategic implications of the planned pipeline evoked strong reactions in Central Europe: the cooperation of Berlin and Moscow reminded Polish Foreign Minister Radoslaw Sikorski of the infamous Molotov-Ribbentrop Pact. Later on, President Barack Obama’s ’reset’ of relations with Russia smoothed things for Germany, too; it contributed to the ’reset’ of links between Germany and Poland as well as Poland and Russia. Schroder’s successor, Angela Merkel, is a bit more reserved concerning the German-Russian bilateral relations, but there is no question that the two countries have developed close relations in certain fields, especially in trade and energy – the bilateral trade volume has reached EUR 70 billion this year. It is true that the German Chancellor resisted adding a third pipeline to the two under construction in the Nordstream project, but her government’s decision to scrap nuclear power by the early 2020s is likely to make Germany more and not less dependent on Russian fossil energy exports.

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The German Question – Again?

Though, observers talk about Germany becoming a ’normal’ country, that is, to put national interests first, the CDU-FDP coalition seems to be reluctant to take advantage of the ’unipolar moment’ for the country. Germany is unquestionably an economic hegemon in Europe and, therefore, practically nothing can be achieved without Berlin’s cooperation in financial and economic issues – witness the crises of some of the euro-zone states. Nevertheless, there are signs that the German political and economic elite, as well as a large segment of the public at larg e, increasingly see Europe as a problem and not a solution. The latest opinion polls underline this shift: 63% of the Germans have little or no confidence in Europe and for 53% of the people in Germany; Europe does not seem to be the future. Germany’s major export markets are still EU-members, but there seems to be a shift towards the BRIC (Brazil, Russia, India, China) countries. Exports to the euro-zone c ountries dropped from 43% to 41% in the total German exports in the last two years, while her exports to Asia rose from 12% to 16% in the same period. In her speech in Brugge last year, Chancellor Merkel speculated about a move away from the ’community’ method (i.e., federal) to a new intergovernmental ’Union method’ (read: Europe of nations). She emphasized that the member states are the ’guardians’ of th e treaties. Her words were reinforced by the German Constitutional Court in Karlsruhe, as well: the body ”opposed any further integration efforts by stipulating inviolable national responsibilities and appointed it as the guardian of German national identity” (Jurgen Habermas). In sum: German ’normality’ paradoxically undermines the European ’normality’ of the post-1945 years; Berlin’s new go-it-alone menta lity might, in the long run, challenge the de-nationalization and deterritorialization ideas, which became the pillars of European integration. The concerns over the current and future policies of Germany are enhanced by the sometimes wayward decisions of Chancellor Merkel. She made a number of about-faces, including the construction of Nordstream (she first opposed then endorsed it); the conflicting decisions made in relatively short period on nuclear energy – she finally came out against it predominantly for short-term political gains (which did not materialize after all in the province of Baden-Wurttemberg). Germany, in the company of Russia and China, abstained at the Security Council vote, which authorized military action in protection of civilians in Libya; the decision placed Berlin against the major democracies in the world. The German Chancellor sent out mixed signals with regard to the handling of the euro-zone crisis at a time when leadership was badly needed. In a broader context, as the New York Times warned with reference to the re-election of George W. Bush (applicable to Angela Merkel, too) and cited approvingly by Habermas: to the extent that politicians make decisions based exclusively on the prevailing public mood, which they slavishly chase from one election to the next, the democratic process loses its purpose. <

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Polish PM discusses Presidency at the European Council

POLISH AMBASSADOR IN HUNGARIAN PARLIAMENT The Polish Ambassador to the Republic of Hungary, Roman Kowalski, accompanied by councillor Agata Zajega, talks about the program and the priorities of the Polish Presidency of the European Union in front of the European Affairs Committee of Hungarian Parliament in Budapest in mid-September. Ambassador Kowalski has also told members of the Committee about the hitherto acheivements of the Polish EU Presidency and answered several questions, as well.

POLISH PRIME MINISTER DONALD TUSK MET WITH THE PRESIDENT of the European Council Herman Van Rompuy in Brussels in September to focus on issues surrounding economic governance in the EU, preparations for the Eastern Partnership Summit, and work on the EU accession treaty with Croatia. â&#x20AC;&#x2DC;Poland is in favor of the European Union showing more economic and financial discipline as a whole, and against creating new divisions in the community,â&#x20AC;&#x2122; Prime Minister Donald Tusk said at the subsequent press conference.

> L E A D E R S I N A G R E E M E N T: Both the Polish Prime Minister (on the left) and the EC President stressed the importance of concluding necessary regulations of EU economic policy.

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consilium.europa.eu, Andras Kovacs/EU, Tibor Illyes/MTI

â&#x20AC;&#x153;Our chief task today â&#x20AC;&#x201C; in cooperation with the President of the European Council, the European Commission, and the European Parliament â&#x20AC;&#x201C; is to work towards adopting, already in September, all the necessary regulations for economic governance, the so-called six-pack,â&#x20AC;? the Polish Prime Minister stated, referring to the issue of adopting six acts of legislation to tighten economic governance in the EU. EC President Herman Van Rompuy announced that â&#x20AC;&#x153;in October, we will continue our economic discussion at the European Council. The agenda will focus on external aspects of the EUâ&#x20AC;&#x2122;s economic policy and on enhancing European competitiveness.â&#x20AC;? He also added that the Council, at the meeting in October, will set the EUâ&#x20AC;&#x2122;s position for the G20 summit and the Climate Conference in Durban, South Africa. Donald Task noted that â&#x20AC;&#x153;we are both determined to make sure that the crisis does not harm in any way the efforts to bring the European Partnership countries closer to Europe and to finalize negotiations over further EU integration and enlargement.â&#x20AC;? As Konrad Niklewicz, spokesperson for the Polish Presidency reported, the meeting was also an opportunity to discuss preparations for the Eastern Partnership Summit to be held in Warsaw on 29-30 September. Other topics discussed included steps to enable full membership of Bulgaria and Romania in the Schengen area. <

! !!!

â&#x20AC;&#x2DC;THE YEAR OF CENTRAL EUROPEâ&#x20AC;&#x2122; CONTINUES #"#

As the Eastern Partnership Summit of heads of state and governments was postponed during the Hungarian EU Council Presidency, it will take place in September during the Polish rotating EU presidency, and co-hosted by Hungary. 2011 SEP

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Martian Operation Hungarian innovations in the car industry range from safe cars to the carburator and Tin Lizzie.

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Audi and Gyor “Audi is almost everywhere in Gyor in one way or another,” says Gyor mayor Zsolt Borkai.

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Mercedes and Kecskemet The mayor of Kecskemet, Gabor Zombor says the establishment of the Mercedes-Benz plant has led to significant changes in the city.

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New Car Sales Gloomy until Economic Upturn A NEW CAR IS WAY DOWN ON THE SHOPPING LIST OF HUNGARIANS BEFORE THE WORLD ECONOMIC CRISIS, FINANCING COMPANIES AND MANUFACTURERS made enormous efforts to sell as many new cars as possible. With zero down payment, it was easier to buy a new car than a used one. As a result of the crisis, the market basically collapsed in Hungary as the number of new cars sold annually fell from 180,000 to 52,000 last year. “The problem is that while in Slovenia or the Czech Republic, sales figures have already climbed back to pre-crisis levels, the situation is Hungary is so grave that new car sales will not reach even the two thirds of the pre-crisis level in the next 4-6 years,” Gabor Gablini, the President of the Hungarian Association of Automobile Dealers (GEMOSZ) explains to Diplomacy and Trade. He says the reasons are manifold, from the precrisis possibility of zero down payments to the “consume-at-all-cost” attitude most of the Hungarian population had. People bought apartments, cars, flat-screen TVs, etc., many times all of these, for credit. When the crisis struck, masses of people stopped paying back loans and car distribution figures show that some 200,000 cars were repossessed in the past five years. “As we live through the current foreign exchange craze, people with Swiss franc based loans have higher installments to pay, thus, they cannot afford to buy new cars. Likewise, those fortunate enough not to be in this situation must face the fact that the demand for their

> A DV I C E F R O M T H E C A R D E A L E R E N T R E P R E N E U R : “The only way out is for people to view work as something that creates value, to save money and use credit reasonably.” products and/or services is lower as the population can afford less to spend,” the President points out.He believes a big division can be seen in Hungary. “There is the world of multinationals who have their markets in Western Europe or somewhere else in the world. They do well, but they do not contribute much to

the well-being of the Hungarian economy. On the other hand, the small and medium-size Hungarian enterprises (SMEs) are usually in bad shape and their opportunities are bleaker. It means that the negative spiral has not yet broken in the Hungarian economy with more layoffs and wage reductions still going on. This results in lower purchasing power. I believe Hungary will not have the chance to break out of this vicious circle in the next two years. Even if that happens, people will be cautious in their spending plans and a new car will be low on the shopping list.” As for the used cars market, the situation in Hungary is again unique, the GEMOSZ President states. What most people look for is a car in the price range of HUF 500,000-1,000,000 (EUR 1,800-3,600). The reason is that those who were forced to sell the car bought for credit (or whose car was repossessed) are still in need a vehicle but cannot afford to pay for more than a ‘chassis on wheels with an operating engine’. “The last time Hungary saw such an extreme situation was back in the 1970s. On the other hand, since the volume of car sales is way below the normal level, there are no 2-3-4-year-old cars on the market that people normally sell after buying a new vehicle.” He says that in Western Europe, car sales are an unbelievably sensitive sensor of the economic situation. However, in Hungary, (the decrease in sales was so severe that the population must

consolidate themselves and their loans first and start buying more basic necessities than a new car. Therefore, this indicator does not work in Hungary. As for regional comparison in this respect, Gablini is of the view that it is only Romania that is in a worse situation than Hungary in East, Central and South Eastern Europe. Slovenia, Poland, the Czech Republic basically did not feel the crisis, while Slovakia had just one bad year. Since the future of new car sales depends very much on how fast the Hungarian economy recovers, Gabor Gablini says he has major concerns. As a member of the board at the National Association of Entrepreneurs and Employers, he reminds us that there were great expectations after the change of government last year. However, it seems that the promises of support for the Hungarian SME sector remain rhetoric, at least, the allocation of funds does not seem to support the words of government officials. “Like it or not, it is the SME sector that could employ masses and could help the government meet its declared target of hundreds of thousands of new jobs. The only way out is for people to view work as something that creates value, to save money and use credit reasonably. They should expect the government to help this process with wellthought measures.” It is only after that that people are able to push a new car higher on their shopping list. <

BY LASZLO KISS B.

THE NUMBERS ARE HARD TO ARGUE WITH, THEY DO NOT LIE. The latest data by the Hungarian Association of Vehicle Importers (MGE) shows that company car purchases keep the Hungarian car market alive. The proportion of purchases by individuals is a single-digit percentage for many brands. In the first seven months, sales increased slightly compared to last year, although, nobody is really happy about the 30,755 new cars sold (+4.1%). Still, there are brands that have shown an increase: more Skoda (+3%), Renault (+11%), Volvo (+47%), Opel (+38%), Peugeot (+20%), Mercedes (+45%), Hyundai (+77%), Citroen (+23%), Audi (+27%) and BMW (+48%) were sold than in the previous year.. Opel sold close to a thousand more cars, re-taking the top position among the brands. Interestingly enough, only four of the major car

manufacturers – Honda, Chevrolet, Kia and Mazda – sold more cars to private individuals than to companies, although the difference in number is not significant. At Ford, for instance, 82% of the customers were corporate, and this proportion was higher than 70% at several major dealerships. For one of the models of the French Citroën, this figure was as high as 91%. The majority of auto importers concentrated their forces on fleet sales. Interestingly, prestigious brands like Mercedes-Benz also increased the corporate sales of passenger cars – from 18.5% to 42%. In the Hungarian market, clearly, the biggest loser is the previous market leader, Suzuki, which did not even sell a thousand cars this year. For this brand, the proportion of fleet sales is already 60%. Some level of decline in individual purchases is understandable. Many people still feel the impact of the 2008 economic crisis, and buying a new car is in last place on the family

shopping list. Those making purchases do not take out a car loan because of the high interest rates. Several market surveys indicate that the drop in demand – apart from the general bad mood and the low level of willingness to borrow – is due to the narrowing of credit opportunities also played a major role. This year, there were much fewer large central procurement purchases because of public expenditure reductions. Experts believe that larger acquisitions expected in the second half of 2011 may boost the market. Of course, this is an

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optimistic forecast, as is the view that the Hungarian market has passed the low point, and by 2014-2015, it could reach the 2008 level. If only it were so, but, unfortunately, that is not the reality. It is a fact, however, that many car companies have a clear goal of increasing profitability – they would rather sacrifice a number of cars than go below a certain price level. The market is very small, and today, the successful are those who have paid attention to the fleet market. MGE says proportional data supports their earlier forecast that after 2010 a slow recovery from the deep crisis will begin and their professional opinion that this will be a slow, fragile and fluctuating process, possibly with minor setbacks, but the trend shows the recovery process. In July, the market came to a halt, but the importers’ association is confident that this is only temporary and the rest of the year is expected to show increase from the previous year and compared to the previous months, as well. The low volume of sales may bring more financial problems to dealers and repairers, and that may result in further reducing the number of facilities in the second half of the year. <

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THE HUNGARIAN NEW CAR MARKET IS KEPT ON A BREATHING MACHINE BY COMPANY CAR SALES. PRIVATE INDIVIDUALS RARELY STOP BY THE DEALERSHIPS, AND IT SEEMS, THEY WILL NOT RETURN FOR QUITE SOME TIME. THE 2011 SALES REMAIN UNPROMISING.

David Harangozo

Company cars keep the Hungarian market alive

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Martian Operation

In any case change will come; if the price of petrol reaches a certain level, the economy might grind to a halt.” Prove him right or wrong, here’s one of the latest green cars, invented by, again, a team of Hungarian engineers.

FLAGSHIP HUNGARIAN INNOVATIONS IN THE CAR INDUSTRY

THE AUTOMOBILE AS WE KNOW IT WAS NOT INVENTED IN A SINGLE DAY BY A SINGLE INVENTOR. THE HISTORY OF THE AUTOMOBILE REFLECTS A LONG EVOLUTION WITH AN ESTIMATED NUMBER OF 100,000 PATENTS AND EVEN MORE, NOT-PATENTED PIONEER IDEAS. MANY OF THEM CAME FROM HUNGARIAN INVENTORS. BY REKA A. FRANCISCK

Antro Solo Prototype

Jozsef Galamb the concept that we think of innovation as the engine of development.

BMWd

A street was named after him, too, in Sindelfingen, Germany, where he died in 1997 at the ripe old age of 90. Most of Barenyi’s creations can be seen in Stuttgart, the hometown of Mercedes Benz.

Tin Lizzie, alias Badog Boske

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Courtesy pictures

The Brain Behind Vehicle Safety SAFE CARS ARE THE ‘BRAINCHILDREN’ of Bela Barenyi, a Hungarian genius and engineer who was born in Hiertenberg, Austria in 1907 (then still part of the Austro-Hungarian Empire). He completed his studies in Hungary and Germany, to be employed as the first ever Mercedes-Benz safety engineer in 1939. A year after taking the job, he already attracted global attention by developing the ’terra cruiser’ that featured an accident- resistant floor assembly, rigid passenger cell and special side protection. The patent was granted in 1952, and was first used in serial production in the Mercedes-Benz 220 (W111) in 1959. Many more let’s-makepassengers-feel-safe-ideas followed. By the time Barenyi went into retirement in 1972, he had applied for more than 2,500 patents. Nonsplintering steering wheels, side impactprotection in doors, multi-piece steering column and roll-over bars were just some of the pioneering inventions conceived by Barenyi from his seemingly inexhaustible pool of ideas. Crash tests are also associated with his name. Some of his visions were far ahead of his time and went into production only years after his patent application. He was also responsible for the Volkswagen Beetle in 1925, which became a symbol of Germany’s progress after World War One. Today his innovations still provide the basis for modern automobile technology. It is believed that with his ideas Barenyi has probably contributed to saving the lives of millions of people on the roads every day. “I have always assumed that nothing is perfect and that is why I have constantly looked for new ways and solutions,” he once said over his concerns for what later became known as ‘passive safety.’ In recognition of his achievements Barenyi was honored with a place in the automobile industry’s Hall of Fame in Detroit, the world’s car-making capital at the time, in the United States.

JOZSEF GALAMB NOT ONLY CREATED FORD'S MODEL T, affectionately called "Tin Lizzie" but he was elemental in introducing the conveyor belt to production lines and is the designer of the assembly line. He was born in Mako, southeast Hungary, to a poor family of eight children. Despite hardships, due to his talents, he earned his engineering degree in Budapest. Galamb's first job was with Magyar Automobil (today Arad, SW Romania), which sponsored a trip to Germany in 1903 to study at Daimler-Benz. The turning point in his life was the following year, 1904. He sailed to the U.S. to see the International Automobile Show at the Saint Louis World Fair, and travelled on to the car manufacturing hub of Detroit. It was there in 1905 that Henry Ford took him on after seeing his first sketches, assigning him to oversee the design and production of the new Model T. During that time, Galamb invented the planetary gearbox and the electric ignition plug, landmarks in auto technology. He was also responsible for the seminal Fordson light tractor and the first conveyor belt installed in 1913. He designed ambulances, light army tanks, trucks and racing cars. Galamb returned to Mako many times and set up a foundation to support the town's poor but talented students. He shipped the first batch of Ford cars to Mako through the port of Fiume (today Rijeka, Croatia) in 1921 and helped finish work on one of Hungary's first car saloons and shops his two brothers had opened. Cars started roaming on the streets of Mako with crazy speed in those years. Perhaps we owe to

2011 SEP

HAVING MENTIONED ‘ENGINE’, another name that needs to be noted is Ferenc Anisits. If BMW today can boast of having the best diesel engines in the world that is largely down to this Szolnok-born engineer. He graduated in 1962 from the Budapest University of Technology and Economics and then finished his PhD in Braunschweig in 1973 after learning German in only a few months. He made it to the top of BMW’s diesel development division within 15 years, founding the BMW Diesel Development Center in Steyr, Austria. Under his leadership, the electronically controlled diesel injection system was introduced in 1993 for which Dr. Anisits received the Ernst Blickle Innovation Award in 1995. He has developed three generations of Diesel engines for BMW. Besides cars he also developed diesel engines for trucks and ships. “I think the fashionable hybrid cars of today are a dead end. Hydrogen-

Basics Donat Banki was a Hungarian mechanical engineer and inventor of the carburetor, together with Janos Csonka. Their fruitful cooperation is earmarked by several other patents, too, such as the gas hammer. "Seeing how florists blow water with their glass blowpipes in a pulverized form to water their flowers, I told Banki that we should evaporate petroleum or petrol the same way to achieve a perfect combustion. Some days after this observation we got together with assistant professor Banki and constructed the atomizer together," Csonka recalled the start of the project. The invention of the carburetor helped

where are they? Nobel Prize Laureate in Physics Enrico Fermi, said to be a firm believer in the existence of extraterrestrials, was frustrated by the lack of firm evidence of their existence. Reasoning that advanced civilizations should by now have filled the Galaxy, Fermi came downstairs for lunch one afternoon at Los Alamos and blurted out his now-famous question, "Where are they?" "They are among us," it is reported that Hungarian-born physicist Leo Szilard responded, "but they call themselves Hungarians." powered engines are the future,” he said in an interview once. “However, first we need to invent a way of cheaply producing hydrogen in large quantities. As a temporary measure, a simple duel-cylinder engine will be fitted into cars, the only purpose of which will be to produce electricity and the electric motor will drive the wheels.

DIPLOMACY & TRADE

DISPLAYED AT THE BUDAPEST MUSEUM OF TRANSPORT, this innovative eco-car is built from carbon fiber composite materials. Beyond its surreal design, the concept vehicle would be likely to produce an incredible fuel economy of 65 km / l, by relying on the muscle-power of driver and passengers as well as a hybrid fuel/electric engine. A larger model, called the Duo, offering room for six but otherwise essentially identical, is planned to follow. The company is looking at 2012 release date for mass production and current estimates for the purchase price are around USD 18,000.

the development of automobiles, as previously no method was known to correctly mix the fuel and air for engines. Displayed at the Paris World Fair in 1900, this invention has remained an indispensable part of cars ever since. <

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AUDI AND GYOR

A Mutually Fruitful Cooperation

INTERVIEW WITH THE MAYOR OF THE NORTHWESTERN HUNGARIAN CITY OF GYOR, ZSOLT BORKAI future. We also try to help the provision of skilled workers by eliminating grammar school classes and launching vocational school classes instead,” Borkai says. Zsolt Borkai believes the expansion of the Audi plant is going to have an explosive effect whose magnitude is hard to predict. “We can already feel the interest of foreign suppliers and those jumping on the opportunity to satisfy the increased demand in the various fields. We need to facilitate this development – within the framework of the regulations, of course – in areas like the issuing of construction permits,” he points out. The city also participates in creating apartments for rent and makes

them available for workers. However, he warns of possible threats like the siphoning of skilled labor from businesses not related to the automotive industry. As almost everything in Gyor, the future of the city also very much depends on the Audi plant. “According to international experience, one job at Audi creates about ten jobs from suppliers to the service industry in Gyor and the agglomeration area, which has a population as large as that of the city and accounts for 20-30% of the Audi workforce. As a consequence, I expect the population of Gyor to grow from the current 130,000 to 160,000 in the near future,” the mayor concludes. <

BY SAN DOR L ACZKO

“AUDI IS ALMOST EVERYWHERE IN GYOR IN ONE WAY OR ANOTHER.” That is how the mayor of the city of Gyor, Zsolt Borkai explains to Diplomacy and Trade the importance of the automotive giant for his city. “It is not just a company that has developed a business in the city to provide jobs for thousands of people. Basically, there is no field, from research and development, to support of the local university, to culture and sports where the company is not present. This seems kind of natural on the part of a company that employs some 7,000 people in the city directly. I can say that the Audi is the ‘engine’ of the city of Gyor but one should not forget about the other companies who are also here as suppliers of Audi ,” he adds. In such a situation, it is critical that the management of the company and the city have a mutually fruitful cooperation and sustainable relations can only work if both sides benefit. The one-time Olympic champion gymnast (Seoul, 1988) Zsolt Borkai, now also the President of the Hungarian Olympic Committee, points out that “everything is related. For instance, Audi supports cultural activities. It is good for the city’s population but it is also good for Audi as its foreign employees also enjoy the benefits, it contributes to their well-being in Gyor. The same can be said about infrastructural developments as the downtown area is also a more pleasant place to stroll for Audi employees.” The local government has provided Audi with a school building. The ‘Audi school’ (currently for grades 1 through 4) provides education in Hungarian and German, is recognized by both governments. Therefore, upon leaving this institution, pupils are accepted for further studies in Hungarian or German schools without any special exam. As a result of cooperation between the local government, the local university and Audi, a research and development center has been established in the city. The engine diagnostics center, set up with a cost of HUF 1.6 billion, is indispensable for Audi and has also created interest among other engine factories. The local university has an Audi department, which provides the proper engineering background for Audi. Further cooperation has been established within the international sister cities network between Gyor and Ingolstadt, Germany, where Audi is headquartered. Of course, Audi is the major local tax payer, providing the city with crucial amounts of revenue. The mayor is proud to mention a local initiative (unique to Gyor in Hungary) that allows for local companies to indicate whether the city should spend one twentieth of their tax: on education, R&D or sports purposes. This amount runs to HUF hundreds of millions a year. Another service by the local government at the request of not just Audi but other companies and the local chamber of commerce, as well, is the provision of a skilled workforce. “Also as a unique initiative in Hungary, we introduced a scholarship system for secondary school students in order to attract them towards professions where there are likely to be a lack of skilled laborers in the next 5-10 years. The youngsters receive a monthly stipend at present and job security for the

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David Harangozo

DIPLOMACY & TRADE

2011 SEP

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Competitiveness as Driving Force THE DEVELOPMENT AND PROSPECTS OF THE AUTOMOTIVE INDUSTRY IN HUNGARY BY SAN DOR L ACZKO

ALL CAR MANUFACTURERS IN THE WORLD ARE LOOKING FOR AREAS where they can have more profitable production. In the past one and a half or two decades, Central Europe as a region has become more valuable and has attracted several production hubs in the midst of increased competition in this market. As investment expert Csaba Kilian explains to Diplomacy and Trade, Hungary had a good start in this race with a Suzuki assembly plant starting production in 1991. In another early development, General Motors appeared in Hungary to manufacture engines and assembly cars. The assembly activity was later moved to Poland but then, Audi came to Hungary with a large engine production facility. In the meantime, the assembly capacities appearing in the region chose other countries around the turn of the millennia: Toyota and Hyundai set up plants in the Czech Republic, Kia and Volkswagen in Slovakia and Fiat in Poland. Later, Romania joined the list of these countries. All these assembly plants attracted numerous

other direct suppliers. “It was only in the past three years that Hungary again recorded major automotive investments with Mercedes-Benz establishing an assembly plant, which starting production in 2012 and Audi carrying out an expansion of its facilities here to create, by 2013, a factory with all phases of car production being at the same venue,” Kilian, a former director of the Hungarian trade development agency ITDH, points out. Altogether, this translates to nearly EUR two billion in investment value for Hungary. In addition, they create some 30,000 jobs directly and – through the suppliers – indirectly in the next 3-5 years. “This result means that Hungary has a good place on the automotive industry map of the world with cutting-edge technology and the best-known manufacturers present. Mercedes plans to manufacture 100,000 cars a year, Audi 125,000 and Suzuki some 150,000. This capacity is big enough to attract major suppliers to the

country”, Kilian says. Following the world economic crisis, “we experience a kind of boom in the car industry – thanks primarily to the increasing demand from the Chinese market –, with Audi, BMW, Mercedes registering increases of 15-20% in 2010 and probably in 2011, as well. This boom pulls up the supplier industry, too,” Csaba Kilian stresses. This is also a great opportunity for Hungary, for the Hungarian small and medium-size enterprises who could find their place in the supply chain. However, these companies have a lot of problems: the lack of capital and that of operating funds many times prevent the development of competitive technology. “Those having survived the crisis are not well funded, either, and thus, they are not really able to exploit this opportunity for expansion and ‘jump on this train’. For a company to become a supplier in the automotive industry requires a very carefully and consciously planned medium- and long-term

“EVERY INVESTOR IS FUNDAMENTALLY INTERESTED IN MANUFACTURING CARS IN A COMPETITIVE WAY AND IN HAVING ACCESS TO SKILLED WORKFORCE IN QUALITY, QUANTITY, IN NUMBER AND IN COST LEVEL.”

Thinks about you. Traffic Sign Recognition.

Thinks about others. Auto High Beams.

Thinks about itself. Thinks, so you can focus on the driving pleasure.

Active Park Assist.

DIPLOMACY & TRADE

2011 SEP

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The above mentioned technologies are not available with every engine version and series. The technologies can be ordered as options or as part of optional packages for additional cost. The advertisement does not provide full description of the mentioned technologies. For further details concerning the technologies and availability of the technologies please visit your Ford dealership or www.ford.hu. Ford Info Line: 06 40 200 024. The car is illustration only. Average fuel consumption: 4.2-8.3 l/100 km, CO2 emission: 109-144 g/km.

David Harangozo

THE ALL-NEW FORD FOCUS. Start more than a car. ford.hu

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Competitiveness as Driving Force THE DEVELOPMENT AND PROSPECTS OF THE AUTOMOTIVE INDUSTRY IN HUNGARY BY SAN DOR L ACZKO

“EVERY INVESTOR IS FUNDAMENTALLY INTERESTED IN MANUFACTURING CARS IN A COMPETITIVE WAY AND IN HAVING ACCESS TO SKILLED WORKFORCE IN QUALITY, QUANTITY, IN NUMBER AND IN COST LEVEL.”

Thinks about you. Traffic Sign Recognition.

Thinks about others. Auto High Beams.

Thinks about itself. Thinks, so you can focus on the driving pleasure.

Active Park Assist.

DIPLOMACY & TRADE

2011 SEP

PHOTO BY

David Harangozo

THE ALL-NEW FORD FOCUS. Start more than a car. ford.hu

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Sandor H. Szabo/MTI, Courtesy picture

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strategy, not to speak of the time span of three, five or perhaps ten years,” he explains. “In addition, they lack relational capital to be able to start off in this global world with equal chances. There are some companies in Hungary who have been suppliers for 10-15-20 years and should deserve to be among the direct suppliers if they had the proper relational capital. The others should aspire for the sub-supplier category but even for that, they need proper education, financing and technological development.” The Hungarian government has signed agreements with Audi, Mercedes-Benz and General Motors to develop the circle of Hungarian suppliers and maintain the country’s ability to satisfy such demands in the future if need be. The vehicle industry in Hungary employs some 120,000 people, altogether. However, it does not only provide employment but also creates an innovation capacity that spreads to other industries in the country. The machinery industry, electronics, information technology, software development, chemical industry, glass industry – these are all connected to the automotive industry that serves as a driving force for these fields, as well. “In Hungary, and elsewhere, too, only those suppliers can remain competitive who pursue and employ innovative technologies since the cost competition and the price competition is very high. Only those able to create proper price margins and profatibilty for themselves who can carry out development in an innovative way,” Kilian points out. The contest in attracting automotive industry investments is quite intense. “Every investor is fundamentally interested in manufacturing cars in a competitive way and in having access to skilled workforce in quality, quantity, in number and in cost level. In this comparison, if you look at the past 20 years, there have always been countries where the situation is way more favorable than in others – a situation that changes every 5-10 years. As for subsidy policy, countries apply various methods to calculate the level of support. The most important consideration is how soon the sum a government spends on attracting an investment is recovered in different forms like tax revenues, duties and local income or in other aspects like industry development. In the past few years, such subsidies were recovered in Hungary usually within three years. “Of course, in such calculations, it is very hard to quantify income appearing in the whole service industry, logistics development, in any other aspects of the supplier side like facility management or even in tourism,” the expert says. As for the near future, Csaba Kilian is optimistic. “The recently started projects will grow in the in the next 3-5 years, providing more opportunities for a wider circle of suppliers in this country – opportunities that should be utilized.” Also, the volume of production – and therefore, the need for supplies – has by now reached the pre-crisis level and further growth opens up new opportunities for Hungarian small and mediumsize companies who can use EU funds and Hungarian credit lines to develop their business. In addition to the currently operating ventures, “there is still place in Hungary for at least one more big assembly plant”, Kilian says. He hopes that the competent authorities work on attracting more automotive investments to Hungary. >

Kecskemet and Mercedes:

Factory for Mutual Benefit MAYOR SAYS THE CITY ENDEAVORS TO BE A GOOD HOST TO THE GERMAN PLANT By the end of this year, the construction of the new Kecskemét Aqua Park will be finished. Together with the earlier Waterslide Park, it is going to be a huge bathing complex with the largest water surface in Hungary. The list of things to do includes items from altering the bus timetables to organizing different types of cultural events that are related to the MercedesBenz plant directly or indirectly. These issues do not only benefit the city but its vicinity, as well. “The surrounding settlements are aware of the importance of these possibilities and they try to seize the opportunity. They have the same chances, for example, in the field of housing and workforce recruitment. They can take part in these efforts besides Kecskemet,” Gabor Zombor concludes. <

BY SAN DOR L ACZKO

NEGOTIATIONS BETWEEN HUNGARIAN INVESTMENT PROMOTION OFFICIALS AND DAIMLER AG on the establishment of a Mercedes car assembly plant in Kecskemet, an hour’s drive southeast of Budapest, started in 2008 and in October 2010, Mercedes-Benz and the city celebrated the factory’s topping-out ceremony. The installation of the production line also started then. “The construction of the building is finished by now, occupancy permits are being issued continuously, test-production is starting,” says proudly Kecskemet mayor Gabor Zombor. He has been at the helm of the town since 2006 and has taken part in the preparation of the investment from the very beginning. “The establishment of the Mercedes-Benz plant has led to significant changes in many fields of our city. The world’s attention turned to us, bringing several benefits. Thousands of workplaces are being created, only MercedesBenz Ltd., itself is directly responsible for 2,500 jobs,” he tells Diplomacy and Trade. Local enterprises had been contracted during the construction period of the factory, which resulted in higher local tax revenue. This income is to become one of the most relevant sources for the city once production has started. Local enterprises of trade and service industries can see the advantages as well, since the employees and their families already live in Kecskemet. 300 German families, among others, represent an additional purchasing capacity. “We can also apply for European Union sources with more chances. Beyond all of these, our city has aroused the interest of investors, and not only of automotive industry suppliers. This again means economic expansion, and within a few years the population of the city could increase by even 15%,” the mayor adds. He says city officials have a very good relationship with the management right from the start. “These people are very precise, and they expect the same accuracy from us, as well. Day by day they turn to us with different requests, problems to be solved, and we do our best to help them, as the local government is their most important partner.” The setup of the plant involved and still involves not only advantages, but commitments, as well. “The investment gave our town a new development perspective, set the pace for us, which we have to maintain as we strive to remain a livable city. As reliable partners, we set up a team within the local government, which coordinated the commitments related to Mercedes-Benz. We regularly negotiate and cooperate with the labor office, the chamber and the College of Kecskemet in providing the adequate workforce,” Zombor points out. Then, there are the everyday duties in connection with German expatriates, Hungarian employees and their families moving to Kecskemét: housing, nursery,

2011 SEP

PARTNERSHIP WITH MERCEDES

kindergarten, school capacities. New residential areas have been constructed; education began in the ‘Mercedes-Benz Schule’. From this autumn, the city provides the educational conditions for the upper grades in one of the secondary schools. One task is a matter of priority: the infrastructural traffic developments. New roads and cycle paths have been constructed, but the hardest part is yet to come. “We embarked on three transport development projects supported by the EU, with the total value of HUF 135 billion (EUR 500 million). One of them refers to local community transport, the other aims at regional accessibility, and the third affects suburban traffic. We also need more quality tenement flats; we would like to create 300 new apartments within the framework of the government’s New Szechenyi Plan,” the mayor stresses.

DIPLOMACY & TRADE

The strategic agreement concluded last December is about the introduction of the dual vocational education of five new vehicle industrial professions: mechatronic, toolmaker, motor vehicle technician, coating technician and production line assembly worker. The basis of dual vocational education is organizing the practical training in the workshops, where students can acquire the necessary knowledge and skill set directly from their future employer. Since then, such agreements have been signed with nine other Kecskemet companies. The city worked in close cooperation with the Bacs-Kiskun County Chamber of Commerce and Industry in order to fulfil all requirements needed to have these five professions included in the National Registry of Recognized Vocational Qualifications. The government decree about exam requirements came into force in the middle of July. Kecskemet mayor Gabor Zombor emphasizes that this is an outstanding achievement not only for Kecskemet and Mercedes-Benz, but for all motor industrial companies working in Hungary. This September, the education of these motor industrial professions has started in the city with the school year of 2011-12 within the faramework of the new 3-year dual tarining system. “This way we are able to provide skilled labour force for Mercedes-Benz (see factory photo below) and other firms of the automotive sector, and the generations to come will have secure source of living. Therefore, Kecskemet is said to be the flagship of Hungarian dual education,” the mayor points out.

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THE AUTOMOTIVE INDUSTRY IS ONE OF HUNGARY'S MOST IMPORTANT INDUSTRIES in which the firm Hammel & Hochreiter conducts successful interim management activities at several companies. As a result of its cooperation with the Interim Manager Academy, Hammel & Hochreiter in the fortunate position that it can present the relationship between the Hungarian automotive industry and the interim management from two sides – on one side from the point of view of the interim manager, and, on the other hand, from that of the client who is the recipient of the interim management service. The graduates of the Academy include the managing director of the Kecskemet company Bosal, Miklos Rasovszky, and Hammel & Hochreiter interim manager Peter Fejos. We asked for their opinion:

How can interim management as a management tool contribute to the realization of automotive industry developments? In the automotive industry, where can interim management present a solution? PETER FEJOS The automotive industry – and this is especially true in the current situation – is one of the motors of the Hungarian industry. The automotive industry requires the application of the latest technologies, the latest developments and the most comprehensive quality management. It's no different in the field of management

methods, either. Interim solutions widely used in western countries are becoming more common in our country, as well. The area of application in the automotive industry is also the classic one: in a sudden onset of needs – workers’ temporarily drop-out from work due to reasons such as illness or pregnancy at times that require meeting higher orders, implementing new products or relocation production, or on the occasion of projectrelated tasks - the instant professional solution is the employment of a qualified and experienced interim manager who does the job cost-effectively, concentrates on the task itself, and afterwards leaves. As an active interim manager, what motivated you to participate in the educational program of the Interim Manager Academy? PETER FEJOS Lifelong learning probably sounds cliche. For those who want to be successful in their own field, it is essential to continuously train to be professional. The Interim Manager Academy is a great opportunity to become a pro. In addition to your existing experience, what has the Academy provided for you? PETER FEJOS The Interim Manager Academy – as the name suggests – is not basic training. The participants are professionals with decades of management experience and extensive expertise. However, this is not enough in interim management because this – like any other profession – must be learned. This is the knowledge I have obtained from

excellent local and Dutch educators and practicing managers of the profession. How can you apply the knowledge acquired in the field of interim management, especially those provided by the Academy, in your current automotive project? PETER FEJOS An excellent knowledge in a particular field is a trivial expectation in interim management. The Academy taught me a wealth of practical knowledge and skills. In addition to my existing knowledge, I acquired a toolbox of skills and know-how, which I can very well use as an interim manager; these can be used immediately, and, in fact, should be used during projects. Skills offered by the Academy, including intercultural communication, assertive communication and knowledge in the field of business ethics have all contributed to the fact that I could create a very effective collaboration with a mixed international team (German, Dutch, Japanese and Hungarian members) in a very short time. How can interim management as a management tool contribute to the realization of automotive industry developments? MIKLOS RASOVSZKY Most of the automotive industry companies have human resources adapted to specific daily tasks, thus, all unexpected or additional jobs require extra resources. What’s more, a task is rarely associated with adequate time. In my

RAJMUND VIRAGH I n t e r i m M a n a g e r A c a d e m y, M a n a g i n g D i r e c t o r MARKET PRACTICE SHOWS THAT INTERIM MANAGEMENT, as a management tool, supports the success of large businesses even within a short time in an impressive way. Interim management has been available for a long time in Hungary but not much attention, if any, has been paid to training. The Interim Manager Academy shares with its students the expertise of the Dutch Nyenrode Business Universiteit and the domestic experience of Hammel & Hochreiter. The firm Hammel & Hochreiter is the major professional sponsor of the Interim Manager Academy, an institution whose first graduate students received the joint certificate of the Academy and Nyenrode Business University in June this year. With its permanent Interim Manager team, Hammel & Hochreiter covers all corporate strategic and functional areas: management, finance, accounting, controlling, information technology, human resources, logistics, marketing, sales, production and quality assurance. The Hammel & Hochreiter International Interim Management Partnership comprises managers who have acquired experience in senior positions in the management of medium and large companies in Hungary and the region. <

DIPLOMACY & TRADE

2011 SEP

As a senior manager, how you can apply the knowledge acquired at the Academy to your everyday business activity? MIKLOS RASOVSZKY I am in the fortunate situation that – as a member of a team composed of a variety of very experienced, past and present leaders – I could spend half a year learning from amazingly good teachers. The training was practical throughout, with a lot of situational exercises and analyzing conversations even further deepened the knowledge gained. The palette ranges from easy situation management to the deeper analysis of correlations, and this is a great support for my work. In your view, which aspects of interim management may be of interest to the automotive industry? MIKLOS RASOVSZKY Primarily, you can find interim managers at a company in the following roles: - as an expert, with specialized knowledge, clearly defined tasks such as machine and/or software repair or installation, the introduction of methods, technologies, etc.; - in connection with a major development or investment project as a project manager who acts in a so-called project structure, clearly separate from permanent corporate body and tasks. Often, he does not have any impact on the primary activities of the company, controlling the project organization only; - as a gap manager, substituting for someone and filling the temporary gap during a longer leave of absence or illness, leading the division and often chosen for the task by the employee he replaces; - although, primarily, consulting is the main hunting ground of multinational consulting firms known as the "big four", you can more and more frequently encounter people, who were successful interim managers earlier, in a consultative role; - last but not least, the classic interim manager role arises when a situation at a company demands profound changes in output and the owner / senior manager already had the training- consultancyemergency credit sequence. For this lack of inhouse resources, an external expert should be invited into the company, a professional interim manager who can devise and implement the changes or have them implemented. <

Courtesy pictures

GRADUATES OF THE ACADEMY TALK ABOUT THE SKILLS ACQUIRED THERE

As an active senior manager, why have you decided to attend the Interim Manager Academy? MIKLOS RASOVSZKY Given that the interim managers have the same or very similar tasks as the permanently employed managers – only they are not ensured time for learning and development –, I have always been interested in effective methods and tools which help an experienced interim manager to successfully overcome difficulties caused by the limited time. I think, in my daily responsibilities, I myself can apply what is learned here.

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Interim Management in the Automotive Industry

opinion, in such cases, the provider of interim management can primarily help with the ability to provide the client with trained, experienced staff on short notice.

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WITTY

LEAKS IN OUR SERIES, DIPLOMATS GIVE THEIR PERSONAL ACCOUNT OF THE EXPERIENCES OF THEIR “EXCURSIONS” TO HUNGARIAN CULTURE, ART, GASTRONOMY AND LANDSCAPE.

musicians was absolutely marvelous. Such high level of music, I believe, comes from the Hungarian people’s love and passion for music itself. Music appears to be an integral part of the lives of the Hungarian people and even the economic difficulties following the global financial crisis of 2008 did not seem to have prevented them from going to concerts and musical events. For a country where music is given so much importance, it must also be an important resource for promoting external relations. As for Korea, our musical link with Hungary dates back to 70 years ago when Ahn Eak Tae, composer of the Korean national anthem, studied music under Zoltan Kodaly in the Liszt Academy of Music. Once diplomatic relations were established, the bilateral link in music also was reestablished, and many Korean students have been benefiting from good education in the prestigious Liszt Academy. The Academy orchestra’s visit to Korea in 2009 highlighted the commemoration of the 20th anniversary of

diplomatic relations of our two countries, and their concert turned out to be a huge success. Against this background, I would like to take this opportunity to emphasize that music will continue to play a bridging role between Hungary and Korea. Now that Korean music, particularly Korean pop music, better known as K-pop, is becoming very popular across the world, music will play a greater role in bringing Hungarians and Koreans closer to each other. In this vein, I am happy to note that Kpop has successfully landed in Europe. Its first appearance in Paris this summer was indeed a big success. I am confident that Hungarian music lovers will quickly fall in love with the dynamism, vitality and the colorfulness of Korean music. And the Korean Cultural Center scheduled to open at the end of this year will greatly contribute to both introducing Korean music and promoting interactive exchange and cooperation in the field of music between Hungary and Korea. <

CHUNG-HA SUH

Music as Tie between Nations BY CHUNG-HA SUH, FORMER AMBASSADOR OF TH E R EPU B LIC OF KOR EA TO H U NGARY

BEFORE I WAS ASSIGNED TO HUNGARY AS KOREAN AMBASSADOR, the word ‘music’ used to come to my mind when I thought of Hungary. The primary reason was because one of my favorite musical pieces has always been Brahms’ Hungarian Dances. My enchantment with this piece was so great that I even chose the tune from Hungarian Dance No.5 as the ringtone of my mobile phone. Another reason for my connection of Hungary with music came from my fascination with the song Gloomy Sunday, the theme song for the film of the same title. Before taking up my new task here in Budapest, I took time to watch the film in an effort to better understand my new post. The song, composed by Hungarian pianist Rezso Seress, was so captivating that I could almost understand the wave of suicide allegedly touched off by this music in the 1930s. Feeling that the melancholic melody would appeal to Korean sentiment and that Koreans would be able to sympathize with the music, I gave CDs of this music as souvenir to many official visitors as well as personal guests from Korea. This rather fragmented encounter I had with Hungarian music motivated me to experience in earnest the musical world in Hungary during my service in this country. After being exposed to various kinds of Hungarian music on different occasions, my conclusion is that Hungary is indeed a "country of music". I, of course, am not the first to say this, and the great musicians from Hungary of international stature – Ferenc Liszt, Bela Bartok, Zoltan Kodaly, and Eugene Ormandy to mention a few – are a very testimony to it. The deep-rooted musical tradition in Hungary has today led to a wealth of talented musicians throughout the country. As Ambassador, I have been invited to numerous concerts, some of which were held in provincial cities. What amazed me was the high standard and professional level of musicians from the local areas. The musical excellence I witnessed in these cities led me to realize how wrong I was to be biased against provincial cultural performances. Musicians from small cities impressed me as much as those from big cities such as Pecs, Miskolc, and Szeged. Recently, I had the prestigious opportunity to attend the opening ceremony of the “Water Theater” in Szarvas, a small city in southeast Hungary. Coupled with the beauty of the theater and its natural surroundings, the performance by the local

PHOTO BY

David Harangozo

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New Country Cake Introduced > THERE WAS GREAT INTEREST IN THE ENTRIES FOR THE ‘CAKE OF THE COUNTRY’ COMPETITION THIS YEAR. After pieces that used typical domestic raw materials and real Hungaricums in the previous years, this time, the winner was an unusual cake. In 2011, special confectionary masterpieces competed for the fifth consecutive year to be presented for the celebration of statehood on August 20th. Based on the decision of the Jury of the Hungarian Confectionery Artisans' National Industry Body, the winning confectioner was again master confectioner László Zila who came up this time with the apricot millet cake of Kecskemét. As the pastry chef said, the idea of ??using this fruit was inspired by a letter from a housewife in Karcag, eastern Hungary. She wrote her feelings were hurt by the fact that the Pánd cherries and Szabolcs county plums were already featured in the cake, while the Kecskemét apricot has fallen behind in this series. The millet cake was designed by modifying the basic recipe found in the letter. The basis of the cake, made, of course, with the patented Zila cake pan, is millet cooked soft in flavored milk. Whipped cream mixed with cooked millet is also put on top of the cake whose cavity is filled with slightly cooked and blended apricot pulp. A little chocolate plate half a peach is placed on the top. The dessert may be consumed by people with celiac disease (but those with lactose intolerance are left out again). The new cake was introduced on August 20. Its recipe was very carefully worked out by the pastry chef. Still, it is very difficult to produce according to the planned quality since the quality of the peach strongly influences the overall effect. Until next year's competition, the apricot millet cake of Kecskemét is made in pastry shops around the country and sold continuously.

Nation’s Bread > AT T H E I N I T I AT I V E of a law professor, the ‘Nation’s Bread’was baked in Pecsvarad, southern Hungary. The flour for it was ground from wheat donated by some 300 settlements in Hungary and the Hungarian-populated areas of the neighboring countries. The initiative is meant to strengthen national togetherness. In addition to the 5-kilogram bread, 4-5,000 loaves were sold with the income going for charity purposes, 5 tons of flour were given to a foundation that uses it for baking bread for underpriviliged children in Transylvania.

Diplomacy and Trade Club Celebrates August 20 with Marriott

PHOTOS BY

Ferenc Kalmandy/MTI, David Harangozo, Courtesy picture

> T H E L AT E ST E V E N T O R G A N I Z E D by the Diplomacy and Trade Business Club took place on the national day of August 20th in the Budapest Marriott Hotel with the participation of diplomats, business people and their children. Cooperation between the Diplomacy and Trade Business Club and the Budapest Marriott Hotel provided an exclusive opportunity for the guests to converse with one another and watch the traditional national day fireworks from the balcony of the hotel's ballroom. In addition to high-standard catering, several types of wine were presented, a show was performed by the Polai Dance School and the guests could enjoy orchestra music.

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Macedonia National Day > THE MACEDONIAN AMBASSADOR TO HUNGARY, DARKO ANGELOV hosted a reception at the Hotel Intercontinetal in Budapest in early September on the occasion of the National Day to celebrate the 20th anniversary of the Republic of Macedonia. The invited guests had the opportunity to taste the traditional Macedonian dish, ajvar, which is a spread of roasted red pepper and eggplant consumed as side dish or appetizer.

Brasilian National Day

Senior Diplomat Departs > D E PA RT I N G A N G O L A N A M B A S S A D O R J OA O M I G U E L VA H E K E N I held his farewell party at his residence in Budapest. The Ambassador and his wife said goodbye to Budapest after eight years of service here.

Malaysia Independence Day > THE AMBASSADOR OF MALAYSIA TO HUNGARY, DATO KAMILIAN MAKSON hosted a reception at his residence in Budapest at the end of August to mark the nation's birthday. Malaysia gained its independence from British colonial rule and became an independent country on August 31, 1957. The Ambassador, his wife, wearing national costume, received the guests who enjoyed traditional Malaysian cuisine.

> THE BRAZILIAN AMBASSADOR Sergio E. Moreira Lima welcomed guests at his country’s national day reception in the Museum of Military History in the Buda Castle. The ‘Dia da Independencia’ marks the declaration of independence from Portugal in 1822.

Preparation goes according to schedule

Being able to rely on the partner Everything is in good hands

Concentration on the conference

Even the smallest details are taken care of

More time for the essentials

Final rehearsal went like clockwork Convinced that the event will be a success

IMAGINE Falling asleep with a good feeling

Five Star Conference Service

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Why wrack your brain? Just relax regarding things that you can easily leave to others to take care of. Professionals, for example, who know their trade. And also understand your desire to inspire the audience. With superior sound, light, projection and stage technology. Or a brilliant welcome speech, for which you can prepare in peace and quiet, while we deal with the planning, realization, assembly and disassembly for your event. No matter where, no matter when, a KFP Team is always at your service. Sometimes even overnight. And always at www.kfp.eu.

David Harangozo

If you can imagine it, we can realize it.

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French National Day > F R E N C H A M B A S S A D O R Rene Roudaut invited guests to his Budapest residence to stylishly celebrate the National Day of France.

New Ambassadors > H U N G A R I A N P R E S I D E N T PA L S C H M I T Treceived three new ambassadors: John Griffin (Australia), Charles A.Ononye ( Nigeria) and Archbishop Alberto Bottari (Vatican City).

Nancy Brinker Visits Hungary > N A N C Y G . B R I N K E R arrived to Budapest to celebrate the opening ceremony of ‘Retrospective,’ a painting exhibition of Daniel Horvath, organized by Next Art Gallery. Former ambassador of America to Hungary delivered her opening speech as a patron of Art Market Budadpest.

Romanian Farewell Party > D E PA RT I N G R O M A N I A N A M B A S S A D O R TO H U N G A RY Ireny Comaroschi held a reception in Budapest’s Hotel Le Meridien to say her goodbyes after 6 years of service.

Departing Ambassadors Decorated > H U N G A R I A N P R E S I D E N T PA L S C H M I T T awarded Israeli Ambassador Aliza Bin-Noun and Korean Ambassador Chung-Ha Suh with the Commander’s Cross Order of Merit of the Republic of Hungary at the end of their service in Hungary.

Slovakia Celebrates > S L OVA K N AT I O N A L DAY was also celebrated recently: guests, greeted by Ambassador Peter Weiss, enjoyed traditional Slovakian food and wines.

National Day of India > A M B A S S A D O R O F I N D I A TO H U N G A RY Gauri Shankar Gupta welcomes guests to his residence to celebrate the National Day of India.

Newly Appointed Ambassadors > H U N G A R I A N P R E S I D E N T PA L S C H M I T T bids farewell to Hungary’s new ambassadors leaving for their posts abroad, including our regular contributor Tamas Magyarics (on the right of the group in the middle picture) who has been appointed to represent Hungary in Ireland.

Korean Farewell Party

PHOTOS BY

David Harangozo, Lajod Soos/MTI

> KO R E A N A M B A S S A D O R TO H U N G A RY Chung-Ha Suh said his goodbyes to Budapest during a garden party. Farewell speech was delivered by newly appointed Ambassador of the Holy See Archbishop Alberto Bottari.

Indian Guru Visits Budapest > A RT O F L I V I N G : Ambassador of India, Gauri Shankar Gupta held a reception in honor of Indian spiritual icon Sri Sri Ravi Shankar at the India House.

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Portuguese-Hungarian Chamber

Hungaro DigiTel

The Lisbon Experience

The Portuguese-Hungarian Chamber of Commerce, based in the Portuguese capital, Lisbon, was established in 2007 to enhance commercial activities between page 19 the two countries.

The Hungarian-.Portuguese joint venture is the largest Hungarian satellite data transmission company that also endeavors to spread in Hungary the page 20 technical expertise gained in Portugal.

An undefinable city of lovely narrow backstreets - that is how the author of our article describes her experience in the Portuguese capital that she page 21 considers culturally truly unique.

Distinct Courses of History Enriching Bilateral Relations BY SAN DOR L ACZKO

FROM THE HUNGARIAN POINT OF VIEW, , the fact that the Portuguese language is spoken by more than 230 million people and is the official language of countries in Africa, Asia, Europe and Latin America is one of the reasons why it receives significant attention also in Hungary where it is taught in four Universities. At ELTE University, Portuguese has been studied for thirty years. A recent publication in Hungary of a new dictionary has been referred as a benchmark for these studies. Hungarian writers are becoming more and more known in Portugal. Translations of Portuguese literature have been published for many years. The Hungarian version of a renowned "Concise History of Portugal" will be launched this September. It is noteworthy that an international Symposium, entitled "the Portuguese Discoveries and Mittel Europa" was held at ELTE last October. “Due to diverse geopolitical situations both nations had very distinct courses of history that translates currently in a mutual enriching exchanging of views and information. The relations between the two countries retain a special dynamic given that both nations are members of NATO and European Union,” the Ambassador points out, adding that “however, the developments of their societies and economies, stirred up by an open and competitive world, have created new opportunities for interactions and cooperation.” For instance, Portugal has been in the forefront of areas such as renewable energies (53% of electricity consumed last year came from these sources), communications systems, egovernment, and electrical mobility. In these fields and others, Portugal and Hungary have been exploring ways of enhancing cooperation and looking at each other’s relative advantages for mutual benefit. As for economic ties, there are Portuguese companies active in financial services, telecommunications, construction, consulting in Hungary. Business activity has yet to reach its full potential. The international crisis affected trade and investment between the two countries, but the data of 2010 suggests that

FACTS COMPARED AREA country comparison to the world: POPULATION country comparison to the world: POPULATION GROWTH RATE country comparison to the world BIRTH RATE country comparison to the world LIFE EXPECTANCY AT BIRTH country comparison to the world NET MIGRATION RATE country comparison to the world GDP - PER CAPITA (PPP) country comparison to the world UNEMPLOYMENT RATE country comparison to the world TELEPHONES - MOBILE CELLULAR country comparison to the world AIRPORTS country comparison to the world

HUNGARY

93,028 sq km 109 9,992,339 (July 2010 est.) 83 -0.156% (2010 est.) 212 9.7 births/1,000 population 200 74.57 years 93 1.4 migrant(s)/1,000 population 48 $18,600 63 10.7% (2010 est.) 117 12,224,000 54 43 100

PORTUGAL

92,090 sq km 111 10,760,305 (2011 est). 75 0.212% (2011 est.) 179 9.94 births/1,000 population 194 78.54 years 49 2.98 migrant(s)/1,000 population 29 $23,000 57 10,8% 118 15,178,000 48 65 77

Source: World Factbook

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those flows are growing. The trade balance is currently favorable to Hungary and there is more direct investment of Portugal in this country than vice-versa. Antonio Augusto Jorge Mendes is proud to say that “there is a consistently increasing movement of people such as students and tourists. In this latter case, it is favored by daily flights between Budapest and Lisbon by the Portuguese airline TAP.” He says “the work of the Embassy is a continuous activity that looks for new potential opportunities. These are generated by evolving circumstances as well as ideas and contributions from various agents in the public sector and civil society of both countries, in the political, economic, social and cultural fields.” Although, the Ambassador has just completed his first year in Budapest, “an intense and busy year dominated in part by the Hungarian presidency of the EU and the many visits by Portuguese high officials, including our President,” he had the opportunity to travel in Hungary, “to taste its flavors, to be very pleasantly surprised by its wines and to discover its culture.” He visited places near Lake Balaton such as “Keszthely and its beautiful Festetics Palace, Heviz where my family and I enjoyed a relaxing moment in its delightful thermal waters and Veszprem where Hungary's history is very much present.” In Villany, southern Hungary, “I was introduced to some of the best wines in particular the ‘portugieser’, which has a very inspiring name.” Regarding Hungarian gastronomy, he had the opportunity to taste local cuisine and to become “very attached to the cherry soup, the gulyas, the Hortobagyi palacsinta and, of course, the always perfectly made and delicious chocolate cakes.” But mostly, he says he has been fascinated by Budapest, “a beautiful city full of treasures, some almost hidden and waiting to be found and surprise the curious visitor, its rich history from a distant past to recent times that are still alive in the memory of many Europeans, its streets framed by elegant buildings, its cafes, the opera, the ballet, the concerts and all the stimulating cultural program that I wish I could have the time to follow even more. In all it has been a very rich experience and one that my family and I are very much looking forward to develop even further,” the Ambassador has concluded. <

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C O U N T I N U E D F R O M F R O N T PA G E >

David Harangozo

PORTUGAL AND HUNGARY EXPLORE WAYS OF ENHANCING COOPERATION

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Opening Doors to Each Other in Business INTERVIEW WITH THE CHAIRMAN OF THE PORTUGUESE-HUNGARIAN CHAMBER OF COMMERCE THE IDEA OF THE PORTUGUESE-HUNGARIAN CHAMBER OF COMMERCE, ESTABLISHED IN 2007, WAS FIRST DISCUSSED BETWEEN THE THEN HUNGARIAN AMBASSADOR IN PORTUGAL, ATTILA GECSE AND PORTUGUESE-HUNGARIAN BUSINESSMAN LASZLO HUBAY CEBRIAN IN ORDER TO ESTABLISH AN ORGANIZATION THAT COULD ENHANCE THE COMMERCIAL ACTIVITY BETWEEN THE TWO COUNTRIES. LASZLO HUBAY CEBRIAN, WHO CAME TO BE THE FOUNDING CHAIRMAN OF THE CHAMBER, GAVE A SHORT INTERVIEW TO DIPLOMACY AND TRADE. with Portuguese partners. Currently, the Portuguese-Hungarian Chamber of Commerce has twenty members. The sustainability of the Chamber is basically guaranteed by the "Benemerits" composed of Banco Espirito Santo, Amorim Group, Brisa - Auto-Estradas de Portugal, Hovione, Mota-Engil and OTP Bank. BY SAN DOR L ACZKO

THIS ORGANIZATION WAS MEANT TO WORK WITH SPONSORSHIP MONEYS, utilizing my high level contacts in Portugal and looking at investment possibilities that one could offer to Portuguese capital in Hungary and vice versa. It was also to offer Hungary an open door policy to the Portuguese-speaking golden triangle, which is composed of Portugal, Brazil and Angola, inclusive of Mozambique. The Portuguese language is spoken not only by 10 million in this continental European country, but also by other 290 million spread throughout the world, especially within the countries mentioned. Lisbon could be a door opener for Hungarian businesses extending them into these territories

What are Hungarian-Portuguese economic and trade relations like?

How did/does the world financial crisis affect bilateral economic relations? The world financial crisis is affecting Portuguese business very negatively and as such, interest for foreign investment has shifted to the Portuguese speaking countries in detriment to eastern European countries because exports to these countries have to be increased. As such, the crisis affects our bilateral economic relations negatively. <

They are basically driven by agricultural exports from Hungary to Portugal and industrial exports, such as textiles and apparel

For more information on the PortugueseHungarian Chamber of Commerce, see the web site www.cclusohungara.pt

Our activity has been on-going involvement within the agricultural business, real estate as well as banking contacts and new company formations within the banking and real estate sector. The main partners are corporate and civil institutions, with special regard to the Portuguese export organization AICEP.

Chairman of the Portuguese-Hungarian Chamber of Commerce, has since January this year been a Partner and Managing Director of ‘Nutri Ventures SL’, a company that has begun to produce the world’s first animation series specifically created to encourage healthy eating for children. Previously, he worked for The World Disney Company between 1980 and 2004. Between 1999 and 2004, he acted as Country Managing Director and President of The Walt Disney Company Iberia, President of The Disney Store Spain and President of The Walt Disney Company Portugal. He also worked as a Consultant for The Disney Company and for Stage Entertainment between 2005 and 2007. Alongside work for Disney, he was frequently asked to give lectures to universities, secondary schools and other organizations on subjects including administration, leadership, environmental protection, counterfeiting, change management, the leisure industry or company restructuring. Laszlo Hubay Cebrian, the grandson of the renowned Hungarian composer, Jeno Hubay, is fluent in Portuguese, English, Spanish, French, Norwegian, Hungarian and German. He is the recipient of the state decoration

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Courtesy picture

What are the major fields of activity and who are the main partners you work with?

accessories, from Portugal to Hungary as well as real estate. We, at our Chamber of Commerce, believe that the trends and possibilities between the two countries are very positive from the Portuguese point of view, using Budapest as the center point for accessing all peripheral countries with common frontiers and vice versa from the Hungarian point of view, using Lisbon as a door opener to the golden triangle.

LASZLO HUBAY CEBRIAN the founding

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‘The Cross of the order of Merit of the Republic of Hungary’.

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Providing Secure and Reliable Communication HDT ENDEAVORS TO CREATE A WIN-WIN SITUATION IN CUSTOMER RELATIONS IN A FOREST OF SATELLITE DISHES IN LAKIHEGY, ON THE SOUTHERN BORDER OF BUDAPEST lies the headquarters of Hungaro DigiTel (HDT) Plc., the largest Hungarian satellite data transmission service provider and one of the determining players in this area on the European market. It is a Hungarian-Portuguese joint venture established in the early 1990s with the Hungarian broadcasting company Antenna Hungaria as the majority and Portugal’s PT Participacoes (member of Portugal Telecom group) as the minority shareholder. The largest antennas are 8 and 9 meters in diameter. This size is necessary as “ours are centralized networks, which means, there is a hub communicating with all the individual terminals whose location can be anywhere in the world,” General Manager (GM) Antonio Felizardo, who has been the CEO of the company since 1999, explains to Diplomacy and Trade. The company works with large firms, banks, petrol station networks – these are the traditional customers. The GM calls them partners as he is convinced that “in this business, long-term relationship can only be maintained if it’s a win-win situation for both sides.” The largest Hungarian bank, OTP has been HDT’s partner from the very beginning. At that time, the bank needed fast and reliable connections to expand its automated teller machine (ATM) network all over Hungary and it is still a partner as HDT follows OTP’s expansion into the neighboring countries. Secure lines provided by Hungaro DigiTel allow the authorization of bank card payments. You are also likely to use such ‘invisible’ HDT services when you fill up the car tank or buy a motorway vignette, as communication lines for most petrol stations in

reached a quite advanced stage in implementing the ‘e-government’ concept, providing its citizens with the possibility of Internet-based administration. “There, you have these best practices that we don’t have to invent; we just import these ideas and implement them. The two countries are easy to compare as they are similar in size and in the number of inhabitants, what’s more, even the level of economic development is not that different,” Antonio Felizardo explains. With very close cooperation with the Portuguese Embassy, Antonio Felizardo himself is very eager to present the Portuguese practice of ‘egovernment’, explaining – in presentations and workshops – to ministries in Hungary the benefits, and how they could save time and money, as well. The general manager is a native of Portugal but has been living in Hungary for over 30 years. He conducted his university studies in Hungary, he has a Hungarian family and, little wonder, he speaks excellent Hungarian – the language of “nice people, nice country,” he says –, in addition to English, Spanish and French. Over the years, technology has changed and Hungaro DigiTel has kept up with these changes to offer its partners the most modern services available. One proof of this is acquiring the "Suitable Supplier for NATO Tenders" qualification in October 2010. As for the future, the general manager says there are two directions. “In the last couple of years, we have experienced a rapid development in technology. Customers need secure and reliable communication, more dedicated services. Also, the number of units in use is growing, bringing about lower price for these products, therefore more people will be able to afford it.” <

PHOTO BY

David Harangozo

Hungary are provided by the company. If you buy a lottery ticket in Hungary, that process is also authorized through HDT communication lines. There are services, especially in the government area, where quality is a must – as are security and reliability. For these reasons, satellite-based communication provided by HDT is often used as a back-up service, a completely independent infrastructure, to ensure business continuity in case something happens to the primary line of service. In situations of emergency, authorities need solutions to have mobility as well as increased communication capabilities where increased bandwidth is also needed. In such a

case, HDT has provided a solution to one of its partners who is able to send a special truck to the premises to establish an extra mobile network cell that connects directly to the central network of the mobile communications company via satellite, easing the burden on the local network. “One of HTD’s partners is the Hungarian Ministry of Foreign Affairs that keeps contact through us with embassies in regions where communication is not reliable. The Hungarian Embassy in Tripoli, Libya is a very good reference for both Hungarian diplomacy and HDT as the secure and reliable line of communication was provided by us via satellite for the Embassy that – for months – represented not only Hungary there but the EU and the United States, as well,” the general manager says. In terms of the number of people employed, about 30, HungaroDigiTel Plc. may seem a small company but its annual revenues amount to approximately HUF two billion (over EUR seven million), serving about 50 partners at some 4,100 locations, most of them in Hungary, some of them in the region and some of them elsewhere in Europe and other continents. The Portuguese shareholder in the company, PT group, did not only invest money in this joint venture but also brought technical expertise gained from experience in Portugal where financial industry services are on a very high level, even by international comparison. Portugal has a unified network of ATMs (actually, the densest one in Europe) that cannot only be used for cash withdrawal but also for paying bills, buying tickets for football matches or cultural events and even paying taxes or using other government-related services. Portugal has also

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The Lisbon Experience

THE SIEGE OF LISBON

THE UNDEFINABLE CITY OF LOVELY NARROW BACKSTREETS

Huh? So how’s that then? Well, the Siege of Lisbon occurred during the Christian Reconquest sweeping through the Iberian Peninsula, and was one of the most important battles during the Second Crusade, and, in fact, one of the few Christian victories during that time. The Crusaders sailed to Portugal with the intention of ousting the moors, but bad weather forced them to land at Porto, where they met with King Afonso I, Afonso Henriques. Having joined forces, they put Lisbon under siege and the moors eventually surrendered 4 months later. Portugal at this time was an independent Kingdom in the north of the country, having previously broken off from the Spanish Kingdom of Leon. Before that, Portucale was a Suebic Kingdom covering the north of Portugal and Galicia, then also the first county (Condado de Portucale). The name derives from the Latin “Portus” or Port and the Greek “Kalós” or beautiful. Another theory mentions that Cale or Gale was the ancient name of Vila Nova de Gaia (located in the Porto district), coming from the Celtic “Gale” which means foreign, and possibly originating with the Gallaeci tribe living in this area. In any case, the King of Portugal invaded and conquered Lisbon, and soon after ordered the large Mosque, called the Aljama, turned into a Cathedral, becoming Lisbon’s famous “Sé”.

RARE AND UNUSUAL CHINESE VASE FOUND IN PORTUGAL

B Y S Z I LV I A B AT KO V

‘LISA’ AS THE LOCALS NICKNAME HER IS A BEAUTY, but not a conventional one. Situated on the north banks of the River Tagus, the charm of Lisbon exists in its strong links to the past. However, at the same time it is also a vibrating youthful city living in the present. Though the writer of these lines was lucky enough to see many capitals before, this was the first time she found herself confused for not being able to describe a city in simply a few words. Shaped by a rollercoaster history with Romans, Moors, ambitious explorers, a devastating earthquake and post-world war dictatorship and influenced by former colonies in Brazil, Asia and Africa, Lisbon is culturally truly unique. So unique, that it’s essence is hard to grasp or put into words. Spread across steep hillsides that overlook the Rio Tejo, Lisbon offers all the delights you’d expect from a Mediterranean hotspot, yet with half the fuss of other European capitals. The visitor can find Gothic cathedrals, majestic monasteries and quaint museums, but the real delights of discovery lie in wandering the narrow lanes of Lisbon’s lovely backstreets. The city has three downtown neighbourhoods: posher Alfama with the Sao Jorge Castle; Baixa, the lower town full with shops and Bairro Alto, the upper and hilly part of the capital. The Belém district with the UNESCO heritage Torre de Belém, the city’s most photographed landmark, contains reminders of Portugal’s golden age when explorers brought back untold riches from the newly invaded territories.

PHOTO BY

Jose Manuel/Turismo de Portugal

Cristo Rei, a Jesus Christ monument inspired by the famous statue in Rio de Janeiro and built in 1959 in thanking God for having spared Portugal during WWII opens his arms to the city and the visitors wanting to admire Lisbon’s setting and skyline from it’s top. This often forgotten enormous statue reminiscent of Rio stands in sharp contrast next to the San Francisco Golden Gate resembling 25 de Abril Bridge. Looking at those two, the visitor gets the impression that Lisbon indeed encompasses the whole world in itself. Compared to Havana with her graffiti-slashed houses and San Francisco with her blue waters, bridges and little yellow trams, Lisbon’s spirit is hard to decode. The Lisbon experience includes so many things, from enjoying some local wine at a tiny patio restaurant while listening to a ‘fado’, Portugal’s traditional melancholic singing or strolling through the city with its lovely tiny yellow trams to joining the locals at a neighbourhood festival. Just outside Lisbon, once the visitor wishes some rest from this confusing city, there’s more to explore: the magical setting of Sintra with its fairytale castle overlooking the ocean, the glorious beaches and the traditional fishing villages are great destinations for day-trips. Immense riches, fires, plague, Europe’s worst recorded earthquake, revolutions, coups, spies and a dictatorship along with an exceptional melting pot of cultures and races have made and still make Portugal’s capital an intriguing destination. Not too many other destinations have such an exciting mix of the old and the new, or so many contrasting faces, making this a city for unhurried exploration and a place worth to get lost in. <

A true porcelain rarity has been found in Portugal. Archaeologists from the Nova University of Lisbon encountered a porcelain dish depicting graphic sexuality at a quite unexpected place: in a monastery! “The novelty of this blue and white piece lies in the fact that openly portrays sexual intercourse between men and a woman,” Mario Varela Gomes, head of the excavations said. Postures seen on the vase had not yet appeared on porcelain up to the 17th century. Its maker is likely to have depicted a scene from Kama Sutra. Apart from the sexual content, the vase also serves the better understanding of the habits of that era. According to archaeologists, the depicted scenes reflect the habits of Chinese aristocracy in the 17th century. For centuries, Portugal had strong commercial ties with the Far East, and the vase is believed to have arrived to Western Europe as the fruit of this trade. "There are a lot of pieces of Chinese porcelain in monasteries in Portugal, originating from the Lusitanian expansion in the 15th17th centuries" –Varela Gomes explained. Apart from the chipped porcelain vessel, archaeologists also found Vietnamese porcelain and ruby jewelry from India.

LISBON IS OLDER THAN ROME And according to most estimates, around 4 centuries older. It is in fact the second oldest European capital after Athens, many historians believing that it was settled by the Phoenicians around 1200 B.C., and who used the excellent transport possibilities offered by the River Tagus. One of the theories for the origin of the name Lisbon is that it came from the term “Allis Ubbo” or “safe harbour” in Phoenician. 2011 SEP

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BY SAN DOR L ACZKO

> “I CAN LOOK BACK AT THESE FOUR YEARS WITH SATISFACTION.” That is how the Israeli Ambassador to Hungary, Aliza Bin-Noun, summarized her tenure in office in Budapest to Diplomacy and Trade before she left Hungary in early September. “I enjoyed these four years very much, in this very special place for me, because I was born in Transylvania, I am a second generation holocaust survivor (my grandparents died in the holocaust), and because Israel and Hungary have very good relations. This combination made Hungary a special place for me,“ she added. However, she said this very special mixture also presented a special challenge for her. “Hungary and Israel are two friendly countries with two friendly societies – relations are amicable, be it political, economic, social, scientific, cultural or people-to-people ties. This is despite the difficulties, a damage potential presented by the extreme right in Hungary. I believe that officials on both sides should do everything on order not to let this damaging potential be successful,” the ambassador said. “Extremists who follow an agenda of hatred and persecution – an agenda harmful to every society – made it to parliament, and you can see that their rhetoric there is inciting, antiSemite, anti-Roma, xenophobic, racist. I think it is a problem in society.” Looking back at the expectations she had four years ago, the ambassador said “this is a country where everybody in the street speaks the language that my parents spoke at home in Szatmarnemeti (now Satu Mare, Romania) so, I grew up into this. Cultural habits, the cuisine, everything I remembered from home – all this reminded me of my early life at home with my parents. For me, this is not just another country I’m posted in.” Given these familiarities and given the fact that the political and economic relations between Israel and Hungary are good, her expectations were fulfilled. However, she stressed that what she was not prepared much for was the expression of anti-Semitism that she encountered

The Mainstream of Hungarian Society is Friendly to Israel INTERVIEW WITH THE DEPARTING ISRAELI AMBASSADOR

throughout her four years in this country. “I knew that in Hungary – like in many countries in the world – anti-Semitism exists, it was nothing new but it was not until I encountered it personally in various incidents that I suddenly understood better what it means. It reflects the sentiments of a marginal layer of society but it is there and it should not be ignored, it should be fought against and should be dealt with in education. This is another thing I go back with but I don’t want to exaggerate it with regards to the mainstream type of relations because I believe the mainstream of Hungarian society is very positive and very friendly.” As for the achievements during her term in office in Hungary, Aliza Bin-Noun was proud to

mention that “we signed a research and development agreement with Hungary, which is every important in boosting the two economies to cooperate, especially in the fields of hi-tech and communication. Also, two years ago, we signed a cultural agreement and just two weeks ago, we extended the education agreement.” According to another agreement, people from Israel come to Hungary as well as people from Hungary go to Israel in all fields of culture. This exchange involves hundreds of people, close to a thousand. In the framework of cooperation to fight anti-Semitism, a group of teachers from Hungary will travel to the Yad Vashem Institute this November as they do every year. Reflecting on the issue of what she takes with her from Hungary, the Ambassador said “at the

end of August, the Hungarian President presented me with the state distinction, the ‘Commander's Cross Order of Merit of the Republic of Hungary’. This I can definitely show at home with regards of my work in Hungary but reflected in this honor is also the work of the Embassy staff in all fields.” On what she leaves behind here, she said “first of all, all the nice people I have worked with, I hope some of them can come and visit me in Israel.” She said she would tell her successor in the ambassadorial position that “Hungary is an open society, friendly to Israel and I think we should make the best out of it in order to enjoy this cooperation and this advantage. Once you have open doors and you have accessibility in all walks of life, this is a very big thing that every ambassador everywhere aspires to.” Ending the interview on a personal note, she recalled that four years ago, “my eldest daughter didn’t come with us to Budapest as she was doing her army service then. Later, she visited us but she continued her studies in Israel. My younger daughter was 16 when we came. First of all, she didn’t want to go anywhere. Before I applied for this job in Hungary, I brought her here for week-end and told her: ‘you can decide after this trip whether I should apply for ambassadorial position in Budapest! ’. We had a very nice week-end here and after that she said sort of reluctantly ‘well, O.K…’. However, after two years, when she had to go back to do her army service, she was really crying that she had to leave Hungary. Recently, when she visited us here in Budapest I asked her: ‘Had you known before where I would take you, would you do it again?’ And the answer was a much more resolute ‘of course’!” . <

Márta Kucsora: Fluidum Exhibition at Gallery B55

info@bardonwines.com, bardonborok@gmail.com Telephone: Szabó Tímea 06-20/288-66-38

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2011 SEP

PHOTO BY

Gallery B55 Budapest, 1055 Balaton utca 4. +36 1 354 1350 art@b55galeria.hu Mon: closed, Tue-Fri: 12-18, Sat: 10-13, Sun: closed

Márta Kucsora’s natureinspired pictures have a „watery character”, and are on the borderline of abstraction and representation. The technical feats are reminiscent of action painting, especially of the oeuvre of Helen Frankenthaler: the artist spills, splashes, pours the paint on the canvas. Kucsora uses highly diluted oil paint, which renders pictural forms literally dissolved on the canvas. The title of the exhibition, Fluidum, refers to this process. There is not a single brushstroke on the paintings, some of them several meters in size. The material – as the artist herself has put it – „shapes itself into a picture”.

David Harangozo

8 September – 1 October 2011

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Better Than it Looks THE LATEST CULTURE POLICY ACHIEVEMENTS IN HUNGARY

“WE’VE BEEN CRITICIZED FOR NOT PROVIDING ENOUGH MONEY FOR THE HUNGARIAN FILM INDUSTRY. THE TRUTH IS THE MONEY TO BE GIVEN HAS ALREADY BEEN SPENT BY OTHERS,” SAYS LASZLO L. SIMON, CHAIRMAN OF THE PARLIAMENTARY COMMITTEE ON CULTURE AND MEDIA.

BY REKA A. FRANCISCK

“CULTURE SHOULD ALWAYS BE CONSIDERED AS A HIGHLIGHTED SECTOR. My job is to do everything so that this would manifest,” says Laszlo L. Simon, Chairman of the Parliamentary Committee on Culture and Media. “And by highlight I do not mean those‘cultural’ issues that seemed to stir the Hungarian public recently, relating to the National Theater,” he adds. Robert Alfoldi, director of the National Theater, whose adaptation of Imre Madach’s ‘The Tragedy of Man’ raised huge controversies, is, first and foremost, an artist, and should be allowed to decide how he directs a scene. After all, artistic freedom is a stately guaranteed right. ”According to L. Simon, there are much more vital questions concerning Hungarian culture. “These display disputes take away valuable time from the more important problems, such as the lack of funds and sources which affect every

aspects of Hungarian cultural life. For instance, due to the bankruptcy of the Municipality of Heves County, the Eger theater and castle museum are threatened to be shut down. These are problems of which no one talks about. On the other hand, by setting up an independent committee for culture, the Parliament expresses real importance of the area of culture, and certain accomplishments have been already achieved.” One project L. Simon is especially proud of is the “reloaded” performing-art law which, along with multiple other tasks, is to modify the financing system of independent theater companies. “Companies which bear no regular theater buildings are also significant component of the theatrical culture,” remarks the politician, adding that this new version of the law must cure those disproportions of the current theater support system which mainly afflict provincial companies. L. Simon reveals that the Hungarian film financing system faces an alteration as well. “We’ve been criticized for not providing enough money for the Hungarian

film industry. The truth is the money to begiven has already been spent by others”,comments L. Simon. “Piled up debts (up to HUF10 billion) of the Hungarian Film Foundation(MMKA) must be consolidated first, then, a new financing model is required, which is to be prepared by 2012.” According to the chairman, it is essential and basically an economic goal thatHungary, which is home to some big filmstudios, could have a giant share from film industrial sources and would be able to attract serious international productions. Further cardinal problem is the distribution of films: the support of art film production could be carriedout through non-profit organizations, which would participate in the national and European distribution of films. “The new film law should deal with the rather complex Hungarian filmculture including the documentary and art filmproduction.” State Secretary for Culture, Geza Szocs named the film industry as a highly emphasized area of culture policy and hedrafted the idea of a film festival, the Budapest

PHOTOS BY

David Harangozo

BRAD PITT TO RETURN TO HUNGARY FOR ZOMBIE THRILLER

International Film Festival. L. Simon agrees that such international festivals would do so much good to Hungary, yet, he believes the realization of this plan is very unlikely, at least in this year.“To organize such an event requires quite a lot of money which we don’t have. The state at the moment can’t finance such festivals and there are no private investors, either. So, I’m quite skeptical about it.” Earlier this year the chairman was particularly eager about the then up-coming Marai-Program, which targets the development of book culture. The fate of this program was quite vague for a while but despite of the difficulties it is now launched and the list of the first five hundred supported books is already available. “It is a huge accomplishment, yet, I’m not quite satisfied,” L. Simon notes. “First of all, we didn’t manage to get the planned HUF one billion funds, but I have to admit the sum we finally got is still much more than the book publishing industry has ever received. Secondly, the Publishing Hungary program, which aims to support the translation of Hungarian books into foreign languages, sadly, hasn’t started. This is a huge debt of ours towards Hungarian literature.” “The biggest achievement of the first term of this year is surely the alteration of the law of archeological excavation, which was my own personal representative initiative. Under the previous governments the archeological excavations were centralized and the Cultural Inheritance Staff Corp decided about who would accomplish the excavations, also where and for how much money,” L. Simon recalls. “The maintenance of county museums was seriously damaged by the central organization’s with drawing HUF several billions from them though these museums are essential as most of the local values concentrate here. The chairman is equally enthusiastic about the new world-heritage law, which is, according to him, exemplary. “This law does not only adjust to the international agreements but it is steadily supported by all the groups of heritage experts. It will be a huge step forward if the worldheritage locations get the HUF 400 million funds, expected for next year”, reveals L. Simon. “The problem of ecclesiastic heritage is also to be solved as the government has started to support the protection of ecclesiastically built constructions,” he adds. “ Promising initiatives, such as the concept of the so-called ‘Andrassyquarter’ are delayed for now. It’s a shame that the city of Budapest lacks new, state-of-the-art museums, not having been able to present any of the kind in the last 20 years, with the exception of the Ludwig Museum (located in the building of the Palace of Art). But we’ll get there sometime.” <

REFURBISHED ZSOLNAY MAUSOLEUM CONSECRATED

US movie star Brad Pitt will return to Hungary to shoot the zombie thriller

The refurbished Zsolnay Mausoleum in Pecs, the final resting place for Hungary’s most

World War Z with director Marc Foster this autumn, the Hollywood Reporter

famous family of porcelain makers, was consecrated by Bishop Gyorgy Udvardy at a ceremony

movie magazine reported. The shooting is expected to start in October for

attended by President Pal Schmitt. The mausoleum was built by Miklos Zsolnay for his father

the film adaptation of Max Brooks title, a bestseller of the past years, of a

Vilmos on a hill next to the factory he founded. It was refurbished at a cost of

world war of zombies. One reason that brings Foster to Hungary is the

500 million forints as part of the Pecs’s 2010 European Capital of

popular 20 percent tax offered here for international productions, irrespective

Culture program. “Only if we treat our heritage well will we have a

of changes affecting the domestic movie industry, said the paper. Brad Pitt

chance to maintain the significance of a highly reputable name. If

was last time in Hungary in 2010 for several weeks with Angelina Jolie, who

necessary, we will protect it by adding new meaning and new

directed her first film here, a love story of a Serbian man and a Bosnian

opportunities to it. Its success was once built from work and

woman meeting on the eve of the Balkan War. He was in Hungary also in

talent, and it only has a future if we add further talent and much

2000 shooting the movie "Spy Game" together with Robert Redford.

work to it,” Schmitt said at the ceremony.

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The Danube Bend A PICTURESQUE LENGTH OF THE DANUBE DOTTED BY A STRING OF SMALL TOWNS NORTH OF BUDAPEST

Szentendre THIS SMALL TOWN, ALSO CALLED THE GATE OF THE DANUBE BEND, has a relaxing Mediterranean atmosphere. Its well preserved, distinctive 18th-century townscape features cobbled squares, colorful baroque houses, narrow streets, graceful churches, nice cafes and souvenir shops. The character of its old center was formed by influxes of Serbian Orthodox Christian refugees who fled there, first from the Turkish invasions and later

from continuing battles in the Balkans. Szentendre is often referred to as ‘the town of living art’ due to its artist colony of international renown, and its museums and galleries. In the 1920s, Szentendre became the home and inspiration of well-known Hungarian artists, and today, every second building seems to be a gallery, craft shop or museum. The Kovac family, for instance, has been working with indigo since 1878, and their shop sells nothing else but blue craftworks. Two unusual attractions worth seeing are an oil lamp collection and the marzipan museum. At the beginning of the 2nd century, the Romans built a defense system in and around Szentendre. Their reinforced military camp was called Ulcisa Castra, the first known name of the town. Later, the town was called after the patron saint of the parish church, the apostle St. Andrew (Szent Endre). Recent decades have seen major changes in the life of Szentendre as a result of the rapidly growing tourism industry, thanks to the historical atmosphere of the town's streets, its art life, as well as the Hungarian Open-Air Museum (Szentendrei Szabadteri Neprajzi Muzeum, Skanzen). Szentendre was awarded the Hild Medal in 1980 in recognition of its successes in town development and in preserving its traditions.

Leanyfalu LOCATED BETWEEN THE BRANCH OF THE SMALL DANUBE AND THE SPURS OF THE VISEGRAD HILLS, Leanyfalu is a declared holiday resort since 1936. The remaining Roman guard tower evokes its earliest history. Residents of the

LOCAL RECREATION TRUFFLE SEARCHING, THE MOST PEACEFUL kind of ‘hunting’ can also be quite an adventure. The pursuit starts at the noted Hotel Silvanus during the truffle season, which runs from June to February. The area where truffles grow is found in a one-to-two-hour light walk, with the help of trained dogs who are equipped with a sensitive nose to assist in finding the treasures hidden underground. On the way, you can try to master the profession, learning the ins and outs of truffle hunting with the help of practiced guides. And with luck, you are unlikely to return empty handed, and so there is nothing left to be done but to eagerly consume the catch at the hotel. The Basaharci Equestrian Club at the nearby Pilismarot is also worth a visit. The 7hectare equestrian center is located between Visegrad and Esztergom, and has a riding hall that greets in a comfortable 80-box stable complete with indoor and outdoor hoof washes and even an infra dryer. Guests can saddle-up at any time of the year and, imbued with the spirit of the place, revive memories of the historic past when the Turks stormed the fort of Esztergom. Families can take a ride on the Borzsony Hill's Children Railway. The narrow gauge, steam powered train departs from Kismaros where it usually operates between May and September. The terraced thermal pools at the open-air beach at Lepence-Visegrad offer a unique combination of recreation. Go for a pleasant walk on the Danube shore and explore the villages. Among the natural beauty of the region, the Duna-Ipoly National Park is the showcase for the region's wealth of natural beauty as are the Small-Danube promenade and Strazsa mountain study trail guides people while rest is provided by the many angling spots on the Danube and the thermal water aqua park recently built on Primate Island (Primas-sziget).

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second half of the 1960s, a thermal spring of 40 degrees Celsius was found in the settlement and the largest beach and pool complex of the area was subsequently built around it.

Esztergom ESZTERGOM IS, IN FACT, THE HISTORY OF HUNGARY ITSELF, expressed in buildings and monuments. The favorable geographic location played a significant role in the development of the settlement. It stands at the meeting place of the mountains and the flatlands, at a crossing point of the Danube, and also at a crossroads of military and trade routes. Hungary's first king, Istvan I was born and crowned here in 1000, and the town was the seat of the Hungarian kings up until 1241 when it was moved to the more defensible Buda after the Mongol invasion. Although, King Bela IV moved his court from Esztergom, Hungarian church dignitaries continued to consider this town the “Rome” of the country – the city's archbishop is still the head of the country’s Catholics as Hungary's primate. The major attraction is the enormous neoclassical Esztergom Basilica (the largest church in Hungary) dominating a crest above the Danube. Its red marble Bakocz chapel, rich ecclesiastical collection in the treasury and crypt are often visited. The Maria Valeria Bridge is a border crossing to Slovakia.

Lajos Kalmar,Alex J. Bernath,Artificial Fotoprodukcio Kft/Hungarian National Tourist Office

THE DANUBE BEND IS THE S-SHAPED CURVE THAT BEGINS JUST BELOW ESZTERGOM and twists for 20 kms past Visegrad where it splits into two, forming the long and narrow Szentendre Island. This great natural beauty of the area, where forested hills loom over the river, makes the Danube Bend (Dunakanyar) a welcome haven for those weary of the city. This is one of the richest regions in terms of historical and cultural heritage: an extremely scenic area with green valleys and hills rising up from the Danube, picturesque little towns and commanding fortresses with sweeping view. Both Hungarians and foreign tourists find this a popular excursion destination. It was during the second part of the 19th century that the region began to develop into a vacation belt. Some of the best Hungarian writers, artists and musicians have retreated to Leanyfalu, Veroce, Zebegeny, God, Pomaz or Fot, where they found inspiration and space to create. The imprint of the intellectual activity of the area is manifest in the unique exhibitions held in memorial houses and museums, and in events – a veritable feast of cultural activities. While the clusters of charming towns enchant those who are hungry for culture, the chain of Pilis hills is a paradise for nature lovers with their bizarre rock formations, caves, and a rich flora and fauna. These holiday spots can easily be visited on day trips from Budapest since they are all close to the capital city, but you’ll feel the urge to return to discover more.

capitol discovered Leanyfalupuszta, part of Pocsmegyer on Szentendre Island, during the second half of the 19th century. Initially it was actors, singers and writers who purchased property here. The first settlers included Ignac Szendrey and his son-in-law, the writer Pal Gyulai, who wrote several of his works here. Later, in 1912, Zsigmond Moricz, the great narrator who knew Hungarian society so intimately also became an owner of a holiday house in Leanyfalu. During the

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BY REKA A. FRANCISCK

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Visegrad, a Royal Town in the Danube Bend VENUE OF THE HISTORICAL SUMMIT OF CENTRAL EUROPE IN 1335 - AND THAT OF THE VISEGRAD FOUR IN 1991 VISEGRAD IS LOCATED 43 KMS NORTH OF BUDAPEST. It can be easily accessed by car but for those who look for a unique experience, we suggest a boat trip on the Danube. Historically, the town was often at the center of attention due to its favorable amenities and strategic location. The earliest traces of a human presence in the area date back to the New Stone Age, and ever since, the town and its surroundings have been populated continuously. After the Celts, Romans settled here. You can still see the ruins of Roman watchtowers along the Danube. The first Latin language document mentioned the Visegrad fortress and its county in 1009. (The word Visegrad means ‘tall fortress’.) The first king of Hungary, Istvan (Stephen) I, established a stewardship here and raised the archdeacon’s church, the foundations of which still stand on Castle Hill. King Bela IV built the current fortress system in the 1250s. King Karoly Robert started the construction of the Royal Palace on the main street of the town close to the Danube Bank around 1320. Within a couple of years, Visegrad was turned into a

royal headquarters and became the favorite residing place of the King. The famous Royal Summit for the four Central-European kings took place here in 1335. Hungarian king Karoly Robert; the King of Bohemia, John of Luxembourg; the King of Poland, Casimir III; the Moravian Marquis, Charles, the Bavarian Prince Heinrich Wittelsbach; and the Saxon Prince, Rudolph, signed an agreement, which secured the economic independence of the affected countries from Vienna and from the Western merchants. In 1370, Hungary’s Louis the Great welcomed the delegation of the Polish Orders in the castle, who offered him the Polish crown. The next period of glory for Visegrad came under the reign of King Matyas (Matthias Rex), who erected magnificent buildings in the fortress and renovated the palace in Renaissance style. He was residing in Visegrad until 1408. In 1440, a real thriller took place in the castle, when the mother of the tragic-fated King Laszlo V had the Hungarian crown stolen for her son. The crown was later mortgaged together with the town of Sopron by Laszlo’s uncle, the German Emperor Frederic

III. King Matthias managed to regain the crown in 1463 by paying an extraordinary 80,000 golden coins for it. Matthias' Renaissance court was often visited by prominent figures of the era who were studying science, philosophy and literature, supporting arts and innovations. Visitors arriving from faraway countries described Visegrad as "Paradise on Earth". The riverside palace was destroyed during the Turkish occupation of much of the country and later dismantled by locals for building material. For a while, nobody mentioned the palace, as if it had been buried underground. Heavy rains washed the soil of the steep mountainside

SILVANUS CONFERENCE & SPORT HOTEL**** VISEGRÁD

down on the palatial ruins and completely covered the remnants. Though, archaeologists were looking for these in the 19th century, it wasn’t until 1934 when architect Janos Schulek (son of Frigyes Schulek, who designed the Fisherman’s Bastion and the Matthias Church in Buda castle) managed to dig out a chapel. Excavations have been taking place here continuously since then. With the arrival of steamboat traffic on the Danube in the early 19th century, Visegrad quickly became a popular location for outdoor activities. Its current settlement structure developed at that time, while the first holiday villas date from the early 20th century. The area along the Danube bank was given a new lease of life and a large enclosed sports bay was developed near the Lepence Lido. The Royal Palace’s historical walls witnessed the first V4 summit meeting of the heads of state or government of Czechoslovakia, Hungary and Poland in 1991. In autumn 2006 again, Visegrad hosted the meeting of the Prime Ministers of these ’Visegrad countries` celebrating the 15 years of success of their cooperation.

All of our 7 meeting rooms (max. 240 persons) have natural lighting and are equipped with projectors, are

Visegrád is situated 40 km north of Budapest in the Danube-bend!

internet capable, and have other modern technical

On land, water and in the air we organise everything in a professional way, you just have to contact us!

features. For companies we also offer different in- and outdoor programs for teambuilding or recreation.

The exceptional location of Fekete-hegy makes Hotel Silvanus a unique oasis of peace.

For families we propose the following leisure-time

Our hotel was built in 1971 for the International Hunting Exhibition. Over the years it has been renovated many

activities which are within a ten-minute walk from the

times. In 1999 with the installation of a solar energy collector and the introduction of selective waste collection,

hotel: the Bob-sled Course, Mini-golf Centre, the Citadel

the hotel was able to win the Hungarian environmental award “Green Hotel of the Year”. In 2000 we also obtained

and the Nagyvillám lookout tower. The lookout tower

the title: “The Best Wellness Hotel of the Year”. The capacity of the hotel expanded to 151 rooms in 2009 and

offers a beautiful panoramic view of the Danube Bend.

spacious superior rooms were created on the 3rd and 4th floor. Our latest novelty and highlight is the extension

For those brave adventurers who are looking for

of the Wellness-Centre. The outdoor swimming-pool with a paddling-pool for children which was completed in

something more exciting, try the Fun Extreme Canopy

2011, offers a breathtaking view over the Danube. Due to the ingenious design and construction of the pool, our

Cable-car Ride. In addition, there are other activities as

guests experience the feeling of swimming from the pool directly into the Danube.

well: archery, knight’s tournament, squash, bowling, billiard and darts. Finally, our Guinot Beauty Parlour will pamper both body and spirit. In our internationally renowned restaurant our master chef Rozália Ponácz and her team will offer guests a superb selection of meals and a choice of selected wines. On the culinary side we also offer features such as special grill parties, Romanesque toga parties in the wellness area, or feasts evoking royal times in the

Syed Javaid A. Kazi/Hungarian National Tourist Office

Renaissance.

INFORMATION

Silvanus Conference and Sport Hotel Fekete-hegy, H-2025 Visegrád Tel: +36 26/ 398 311 • Fax: +36 26/ 597 516 info@hotelsilvanus.hu www.hotelsilvanus.hu

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OUR PRICES ARE FLEXIBLE!

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Jungfrau Railway Celebrates its Centenary LIGHT ARTIST GERRY HOFSTETTER and his team will set up camp on the glacier below the Jungfrau summit, from where they will illuminate the Jungfrau during the first week in January 2012. A Swiss cross, a portrait of Adolf Guyer-Zeller (1839-1899), founder of the Jungfrau Railway, and a picture of a Jungfrau Railway train will be projected on to the north face of the mountain. This event will usher in the Jungfrau Railway centenary celebrations. The Jungfrau

Railway began preparations for its centenary as early as three years ago and plans to celebrate the occasion with over 80 activities and special offers. The official Centenary Book was presented at today’s media conference. The book describes the history of the Jungfrau Railway and is illustrated with many historic pictures. It also presents the tourist attractions in the Jungfrau Region and introduces employees of the Jungfrau Railway and the research station on the

Jungfraujoch, as well as the work at 3500 metres above sea level. The book is published by AS Verlag in Zurich, specialists in books on mountains and railways. On March 8, 2012, the Swiss Post will issue a special stamp for the Jungfrau Railway centenary and a specially minted coin will also be available next year. The official ceremony with invited guests will take place on August 1, 2012 on the Jungfraujoch, exactly 100 years after the opening of Europe’s highest-

altitude railway station. In April 2012, a 250-meter-long experience subway will be opened on the Jungfraujoch to mark the Jungfrau Railway centenary. This will create a direct link between the Sphinx Hall and Ice Palace and is intended to spread the stream of visitors. Moving walkways will transport guests on steeper sections and the touristic development in the Alps and the history of the Jungfrau Railway will be presented in experience alcoves. <

SWISS FAMILY EXHIBITION

Three Generations Bill BY SWISS A MBASSADOR CH RISTIAN MU H LETHALER

BUDAPEST HAS WONDERFUL MUSEUMS, EXTRAORDINARY MUSICAL performances and interesting galleries. But not all important cultural events happen in the Nation’s Capital. Big and even smaller towns offer culture on highest levels. A recent example is the exhibition on three artist generations of the Family Bill. It opened in Veszprem on July 30 and can be seen till October 30. The Museum itself is extraordinary: the “Modern GalleryCollection Laszlo Vass” is located in several interconnected historic buildings right at the entrance to the Veszprem Castle (Veszprém, Var u. 3-7). Laszlo Vass, the well known renewer of the Budapest Shoe, is a pioneer in collecting works of so called “concrete” artists. The museum in Veszprem contains a part of his collection and normally in parallel also a long term thematic exhibition. In addition to that, high quality artwork can be seen for some months in temporary exhibitions.

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Three Generations Bill in itself is worth a trip to Veszprem – but if you have some more time to look around the beautiful center of the old town, you would certainly have a well-filled and satisfying day out of Budapest. <

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A fine example of such an exhibition was opened at the end of July. Max Bill (1908-1994 ) was a pioneer, as an artist, an architect as well as a teacher; his theories on what he called “concrete art” have influenced one generation of artists after the other since the 40ies till today. His son, Jakob Bill (* 1942), followed his father’s path, but although based on the same theoretical ground, his pictures come to entirely different results, including dynamic elements within the colours in his pictures. David Bill, Jakob’s son, (* 1976) again works along the same lines, too, but only in black-and-white sculptures. The exhibition gives an extraordinary possibility to see works of the three generations of this extraordinary Swiss family gathered; three artists starting from the same theoretical background – but coming to different results.

Tamas Varga, Ferenc Navratil

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GOLF IS A GREAT GAME: SOMETIMES REWARDING, SOMETIMES FRUSTRATING BUT HIGHLY ADDICTIVE. AS THE JOKE GOES, “THE MAN WHO TAKES UP GOLF TO GET HIS MIND OFF HIS WORK SOON TAKES UP WORK TO GET HIS MIND OFF GOLF.” BY REKA A. FRANCISCK

“GETTING STARTED IN IT IS ACTUALLY NOT SO DIFFICULT, and our club’s aim is to point members in the direction of a lifetime of fun,” says Tamas Revesz, Managing Director of Budapest Highland Golf Club, a 36-hectare estate that feels like a secluded oasis on the outskirts of the busy city centre. Barely twenty minutes away from downtown, this place offers a sumptuous and relaxing environment, fresh air and green grounds, manicured to the highest of standards. The golf course itself is more than 3,000 meters long and comprises nine holes with a spectacular panorama. “Our goal is to popularize the game of golf in Hungary,” Revesz tells Diplomacy and Trade. “Between 1952 and 1970, golf became the subject of political discrimination in Hungary, being considered an undesirable sport, a ‘bourgeois’ past-time, and unfortunately, all golf courses went bust,” he explains. “However, this country has quite a rich and long tradition of golf, more than 100 years, and these days, the popularity of the game is growing, following global trends.” According to the Managing Director, golf has undergone a transformation from elitist “country club” game to something for everyone. “We’d like to see that people will look at golf as an available, family sport,” he continues. “Sweden, where almost six percent of the citizens play golf, is a good example. The country, with its 456 courses and a number of internships, attracts families in general and juniors in particular to the game of golf. With our Golf Academy, an exciting initiative that provides the perfect pathway for those aspiring to learn the game of golf, we try to do the same.”

Play and stay The Junior Section, now the Junior Golf Academy, has always been a thriving section of the club. It was specially set up to encourage young people to take up the game, providing a supportive, encouraging learning environment to develop the qualities of commitment, goal setting and diligence. “Due to a co-operation with the municipality of District 22, entire school classes are able to try the game for free. Additionally, as part of our Junior Program, we organize a Grand Tour to prepare the kids for major competitions like European Young Masters or Hungarian Junior and Open Championship.” Someone has said once that if you really want to get better at golf, go back and take it up at a much earlier age. I wouldn’t say this appeal to all players, but being able to start the game at a young age is a big advantage. Tiger Woods, for instance, was introduced to golf before the age of two.” According to Revesz, the club currently has over 50 young golfers, and it’s due to their talents and outstanding performances on national tournaments that the club was awarded ‘Golf Club of the Year’ last year. “Also, it often happens that the kids, who participate in our junior program, bring their parents, who also fall in love with the game.” With a number of cultural and social programs, such as wine tastings, yoga and zumba classes, pony-riding, Easter egghunting, the club shows a true dedication to bring the whole family on board. “From toddlers to grandparents, we have something for all the family. This is a perfect place to spend precious time together.”

On and off the golf course In partnership with Hungarian Ladies Golf Association, the club also launched the First Ladies Golf Tour. “The increasing number of

ladies golfers was the major reason to start this,” Revesz explains, adding that 30% of their total 400 registered members are women, which is good but can be further improved. “Golfing is of course, popular among businessmen, too. It is hard to say how much truth there is to the myth that more deals are cut on the golf course than in the boardroom, but one thing is sure: golf puts everyone in a relaxing, natural setting and lets them talk freely, without pressure. People, in the end of the day, are social creatures and spending several hours with others on a golf course is often a very rewarding experience,” he continues. If club members and visitors want to combine business with pleasure, Budapest Highland Golf Club offers a conference room with all the necessary equipment and facilities. Ideal for corporate golf, parties, formal and informal dinners, weddings and gatherings, the 36-hectare complex also provides full bar and catering facilities through its La Fiesta restaurant.

Golf for health “Playing golf regularly can help you stay fit and improve muscle tone and endurance,” notes Revesz. “A round of golf burns about 400 calories. Walking is good for health and pulling or carrying clubs can improve fitness and strength. The golf swing requires a great deal of athleticism. Strength, power, flexibility, balance, core stability, body awareness... they're all physical traits that every consistent golfer must possess. That’s why I suggest that ideally, the right age to take up golf is about 8,” he explains. “But I must say I was over the moon when I sold a membership for a newborn baby,” the Managing Director laughs, adding that he has also known a 93-year-old club member. “One of the greatest things about golf is that you can play the game your whole life,” he concludes. At least, during its season, which, in Hungary, starts in April and ends in October. Revesz considers golf as a relatively affordable sport. “Comparing to sailing or skiing, our annual membership (HUF 250,000) that enables anyone to play as much as he wants through seven months, is not expensive. Not to mentions smokers, who, instead of buying one pack of cigarette a day, could quit smoking, take up golf and live a healthy life, for the same price.”

Swinging Business BUDAPEST HIGHLAND GOLF CLUB & ACADEMY www.highlandgolf.hu • 1224 Budapest, Dozsa Gyorgy ut 99-103

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Golf history There is general agreement that the Scots were the earliest of golf addicts, but who actually invented the game is open to debate. We know that golf has existed for at least 500 years because James II of Scotland, in an Act of Parliament dated March 6, 1457, had golf and football banned because these sports were interfering too much with archery practice sorely needed by the loyal defenders of the Scottish realm. It has been suggested that bored shepherds tending flocks of sheep near St. Andrews became adept at hitting rounded stones into rabbit holes with their wooden crooks. Various forms of games resembling golf were played as early as the 14th century in Holland, Belgium and France too. But it was a keen Scottish Baron, James VI, who brought the game to England when he succeeded to the English throne in 1603. For many years the game was played on rough terrain without proper greens, just crude holes cut into the ground where the surface was reasonably flat. Early golfers played at the game for many years without any thought of forming a society or club until finally a group of Edinburgh golfers in 1744 formed a club called the Honorable Company of Edinburgh Golfers. At this time, the first rules of golf, 13 in all, were drawn up for an annual competition. The premiere of golf in Hungary was organized by International Olympic Committee member Count Geza Andrassy, at the racecourse, in 1902. The first golf course was built in Tatralomnic, and the first tournament took place there in 1909. Hungarian golf went through a huge development process in the '20s, and played a decisive role in European golf between 1926 and 1936. After the world wars, agricultural engineer Dr. Ferenc Gati started to organize the rebirth of Hungarian golf. In 1979, he founded the Blue Danube Golf Club, and started to build a course at Kisoroszi. Conditions were right again for golf after the Communism, and for founding the Hungarian Golf Association in 1989. The Association immediately became a member of the European Golf Association and the World Amateur Golf Council (now the International Golf Federation). Hungary has mounted official tournaments since 1921.

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revolution

design Week 2011 SEP 30-OCT 9 Many designers believe that the cultural and geographical > background, the history and traditions, all in all, ‘the local colors’ are the main sources of inspiration authenticating their creative activities. This year’s Design Week, choosing ‘Couleur locale’ as its slogan, is willing to find out what are those specific colors Hungarian artists add to the European visual and design culture. This year’s edition of the annual series of programs will also focus on Poland, showcasing the most exciting works of contemporary Polish designs. There will be star designer lectures at the Moholy-Nagy University of Art and Design (MOME), an exhibition presenting international works and projects and exclusive weekend design tours led by experts of the profession. In the framework of the Open Studios initiative 14 design workshops open their doors for visitors. 72 shops offer their products at a 20% discount during the ten days of the design festival. www.designhet.hu

World Press Photo exhibition 2011 SEP 30-OCT 30 AT THE ETHNOGRAPHY MUSEUM Attracting 2.5 million people each year in some 100 different locations, the world’s most prestigious annual photo exhibition returns to Budapest. Now in its 54th year, the World Press Photo exhibition is the main travelling exhibition dedicated entirely to photojournalism, profiling the globe’s top press photographers and showcasing the world’s best press photos. Every February an international panel of judges selects the winning photographs from the entries. For the 2011 edition, 5,691 photographers from 125 countries sent their works to the competition and the jury judged a total of 108,590, to pick the final set. This year, 55 photographers were chosen as bests, including Hungarian MTI photographer Peter Lakatos, who won first prize in the Spot News Singles category for his photo of a suicide jump, taken in Budapest on May 22, 2010. Top honors this year went to Jodie Bieber for her image of Bibi Aisha, a disfigured Afghan woman, taken for Time magazine. www.neprajz.hu

OCT 3 AT TRAFO International director > and choreographer Nigel Charnock warmly embraces Hungary to create a new dance theatre piece called Revolution. This intensely physical, beautifully dramatic work is inspired by all revolutionaries of the world, and is a celebration of the human spirit and the search for freedom. www.trafo.hu

Music in colors A NEW WORLD EXHIBITION BY KEREN HANAN OPENED ON SEPTEMBER 15 in the Israeli Cultural Institute of Budapest. Keren Hanan is an internationally acclaimed concert pianist and painter. Her paintings, inspired by the music she plays, bring together the two arts, creating a unique passage from one to another. On September 26, during the 'Meet the Artists' event, Hanan will present and talk about her art, while performing short pieces that inspired her paintings.

budaPest autuMn Festival OCT 8-17 The Budapest Autumn Festival to be held this year for the > 19th time is now one of Europe’s leading festivals of the contemporary arts. The aim of the organizers has remained unchanged since the beginning – to promote contemporary culture with the help of drama, performances, concerts and exhibitions presented in several locations and also, to contribute to the concept of “Budapest, festival city” and to reinforce Budapest’s cultural standing in Europe. Performers on stage this year include the New Music Studio, Les Percussions de Strasbourg and the English outdoor theatre Whalley Range All Stars, while an exhibition “Foreign Bodies” showcases different aspects of otherness through video, drawing and sculptural installation. For more programs and venues, visit www.bof.hu

iva bittova concert OCT 5, 7.30 PM AT PALACE OF ARTS The singer is just as comfortable performing > jazz and rock as she is with classical music and opera. Her inimitable, expressive style plumbs every genre, and she would never nail her colors to the mast of a particular performing style. Instead, she prefers to maintain her natural, “everyday” voice. The violin has been her closest ally throughout her performing career and the mirror reflecting her musical vision; the resonance of her voice and her instrument is the most striking aspect of her stage presence. Vaclavek has since also embarked on a solo career, achieving success as a singer-songwriter, composer of film scores and member of several bands. www.mupa.hu

MuMMies uncovered

japan is here! BUTOH AND PERFORMING ARTS FESTIVAL

MERLIN THEATRE (1052 BUDAPEST, GERLÓCZY UTCA 4.) PERFORMANCE, EXHIBITION, WORKSHOP, SCREENING, SYMPOSIUM WWW.BUTOH.HU WWW.MERLINSZINHAZ.HU Organizer: Supporters: Media partner:

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Partners:

Main supporter: Kazuo Ohno Dance Studio

photos: Shoichi Ono, Christian Perez, Pettendi Szabó Péter

Liaison of International Butoh

Jodi Bieber,Imre Barnabas, Courtesy pictures

2nd

PHOTOS BY

UNTIL 22 OCTOBER 2011 IN THE MUSEUM OF FINE ARTS > In spring 2011 the Museum of Fine Arts, Budapest launched a comprehensive program (Budapest Mummy Project) devoted to the interdisciplinary research of four mummified bodies in the Egyptian Collection of the Museum of Fine Arts, Budapest. The program includes scientific methods and medical diagnostic techniques, such as X-raying and CTscanning, histological study, radiocarbon and DNA analysis of the mummies. The aim of the research program is to ‘resurrect’ four human beings who lived in Ancient Egypt and personalize their past, through the reconstruction of the facial features and the anthropological properties of their bodies in order to rewrite four chapters in Ancient Egyptian history. The results of the Project were rendered and interactively explored in 3D. These 3D models form the base of a temporary exhibition called ‘Mummies uncovered’, which presents Egyptian mummies in stereo 3D display for the first time in the world. The exhibition is based on four thematic parts on Egyptian mummies in the Egyptian Collection of the Museum of Fine Arts complemented by a 3D display with stereo 3D animation about the results of the mummy research, such as virtual unwrapping of mummies, facial reconstruction of Hortesnakht, paleopathology (age physical features, diseases of the mummies) and mummification (technique of eviscaration, conservation, wrapping). ww.szepmuveszeti.hu

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determined by the sunny, south-facing slopes, the proliferation of Botrytis Cinerea (noble rot) and the subsequent shriveling of the grapes (that leads to the development of aszú). Tokaji has a long and turbulent history. It is not known exactly how long vines have been grown on the volcanic soil of the area but according to historians, this probably predated the settlement of the Magyar tribes to the region in the 10th century. The first official mention of wine made from aszu grapes is from 1576. A royal decree in 1757 established a closed production district in Tokaj with the world's first system of wine appellation, established over 120 years before the classification of Bordeaux! The Tokaj region was split up in 1918 after Hungary’s defeat in WWI, with the majority of vineyards going to Hungary and a small section of vineyards going to then Czechoslovakia (Slovakia today). The era of Communist rule in Hungary saw deterioration

Tokaj NAME DISPUTE ENDING SOON? B Y S Z I LV I A B AT KO V

ACCORDING TO THE LATEST NEWS, EUROPEAN LEGISLATION COULD SETTLE THE YEARS-LONG DISPUTE between Hungary and Slovakia about the use of the Tokaji brand name. Under the EU reform of mandatory description of wine products and the fact that the historical wine regions were, in theory, already granted protection with Hungary’s accession to the EU in 2004, Hungary is required to submit the descriptions of the wines produced in the country's traditional wine-growing regions to the European Commission by the end of 2011. If the Commission gives a green light to the Hungarian definition of Tokaji wine, Slovakia's claim to apply the brand to wines produced on the Slovak side of the Zemplen hills could become void. If so, Slovak wines could only be labeled "Tokaji" if producers adopted the EUapproved Hungarian definition and production requirements for the wine hailed as “the king of wines and the wine of kings” by King Louis XIV of France. The escalation of the historical dispute resulted from Slovakia’s failure to observe its 2004 legally binding undertaking with Hungary to introduce the same production standards as Hungary for its wines from the region. Meanwhile, tensions are rising in Slovakia itself. Not even the size of the Slovak territories trying to claim the right to use the name is clear: as according to recent Slovak news, the Slovak producers urged their agricultural minister in a recent petition to finally mark the boundaries of the wine region and to immediately end the negotiations with Hungary held without their participation. Keeping Tokaji’s fame in mind, there is little wonder that there has been so much dispute about the use of its name. Tokaji aszu, the world’s oldest botrytized wine is as much part of the Hungarian image as Budapest, paprika, Bartok or gypsy music. No other wine is mentioned in a nation’s national hymn and, throughout history, Tokaji was regarded as the ultimate gift between monarchs. It was the first and has been for centuries among the most expensive of the world’s great sweet wines, credited with miraculous qualities such as aphrodisiac and life saver. Tokaji wine was the favorite of numerous great writers and composers including Haydn, Beethoven, Liszt, Schubert, Goethe, Heine, Schiller and Voltaire. The vineyard region, officially called Tokaj-Hegyalja in Hungarian and Vinohradnícka Oblast Tokaj in Slovakian, is approximately 7, 000 hectares and is located in Northeastern Hungary and Southeastern Slovakia. The Hungarian wine growing area is currently 5,967 hectares with 14,575 registered producers. Tokaji’s uniqueness lies in the combination of the incomparable clay or loess soil on top of the volcanic subsoil soil and the microclimate influenced by the proximity of the Tisza and Bodrog rivers. The special flavor of the wine is also

PHOTO BY

Courtesy picture

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DIPLOMACY & TRADE

in the quality and reputation of Tokaji wines. However, since 1990 a considerable amount of investment has gone into the Tokaj region, creating what has been dubbed as the "Tokaj Renaissance". There are now almost 600 wineries in the region, of which about 50 produce the full range of wines. The post-Communism awakening of Tokaj has been an extraordinary phenomenon. Capital has poured in (from France above all), new transport links have brought it closer to Budapest, fine tourist hotels and restaurants have opened and in 2002 the region was declared as a World Heritage Site. Seemingly, the territory’s fortune is changing for the better. Besides the realistic expectations to finally end the name war with Slovakia, a further boost could be the new USA marketing strategy in elaboration for the Hungarian wines through the overseas consulates as promised by George Pataki, the ex-mayor of New York during his visit to the Badacsony wine region in June. <

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BUDA CASTLE WINE FEST CELEBRATES 20 YEARS

‘ETYEKI KEZES-LABOS’ FESTIVAL (SEP 24-25) This traditional gastronomic festival kicks off its 9th edition this year.

High-tech solutions and the French

and handcraft festival for those, “who are susceptible to gastronomy, Hungaricums, original and natural flavors, traditions and the values of culture and those, who demand breezy but highstandard entertainment.” The two-day series of programs include folk music concerts, sport and cooking competitions, parades and wine-tasting with Hungary’s best wine-makers. The organizers make sure that there are lots of activities for children, too.

Alsace (a major wine region along the Rhine), Languedoc, the largest wine-producing region of France, the Bordeaux wine region and the Val de Loire,” she reveals. “The festival offers a little bit more every year, by taking new programs and services on board,” Olah notes. “Novelties for 2011 included free WI-FI connection, covering the whole area of the Castle terraces. Also, a number of i-phone applications were introduced, featuring maps, data and contact details on the exhibiting winemakers, a presentation of the performing artists and groups, recommended wine tours and other handy information.” “Wine-lovers are usually curious to learn about wine competitions and to become acquainted with judging methods,” Olah tells Diplomacy and Trade. “Perhaps, because wine competitions have strict international rules, involve the most experienced wine judges and they are usually hidden from the public. We took the opportunity to kick the habit, bringing the world of wine compet itions very close to our visitors.” This year, the festival's VinAgora tent offered information on the first wine judging computer system in the world, in use since 2000, as well as a chance to become a wine judge for an hour, with the assistance of wine judging professionals. “Our Wine Academy was also extremely successful,” Olah continues. “This three-day-long lecture series program represents the actual wine market, traditions, historical and cultural issues, complemented by

enjoyable wine tasting, led by Hungarian and international experts. Presentations on France, fungi porcini was amongst this year’s main topics. This event is a wonderful opportunity for wine enthusiasts to make direct contacts with the winemakers. Wine-lovers and those wanting to refresh their knowledge of wine can enjoy high standard, interesting presentations linked with wine tastings from renowned experts at the two-day course.” Good wines were accompanied by good food, such as grill and bogracs dishes, Balaton trout, lamb-goulash and “toki pompos”, classic stove cake, special roasts, delicacies made of Mangalica, goat’s and cow’s milk cheese, ham specialties and homemade smoked delicacies. An interpretation of French cuisine by Hungarian chefs was also available. To celebrate the 20th anniversary of the Buda Castle Wine Festival, an open-air poster exhibition was held at the festival site, showcasing photos of those memorable cultural productions and atmospheric moments of the festival’s first two successful decades. According to Olah, the International Wine and Champagne Festival attracted up to 50,000 people this year. “There is an increasing number of wine festivals these days. But so far, our series is the oldest, biggest and bears the strongest reputation,” Olah concludes. “We are proud to represent a wine and viniculture event that even on its own makes Budapest and Hungary worth visiting.” <

GRAPE HARVEST FESTIVAL AT TOKAJHEGYALJA (SEP 30-OCT 2) The traditional Grape Harvest Festival at Tokaj has been held every year since 1932. The festival includes folklore programs, a harvest procession, grape, must and wine tasting, a market fair of folk art objects, craft shows and local specialties. During the Grape Harvest Days cellars will open their doors – during the rest of the year they only sell their wines to order.

5TH BUDA CASTLE PALINKA AND SAUSAGE FESTIVAL (OCT 6-9) The Buda Castle Palinka and Sausage Festival is organized 5th times this year with the participation of Hungary’s best palinka brewers and professional sausage makers. In addition to gastronomical specialties the program is completed by performers representing the musical culture of Hungary. This year, the guest country is Russia, and consequently the vodka will also be in focus.

21 A MAGYAR VENDÉGLÔ

A Delightful Study in Contrasts THE STYLISH “21” RESTAURANT HAS A MODERN YET SEDATE AMBIENCE featuring elegant cuisine reminiscent of Hungarian bourgeois home-cooking from the peaceful prewar period. The attractive interior in warm beige and brown tones has a contemporary feeling with a few well-chosen antique accents. This blending of old and new is mirrored in the menu that is prepared in the open kitchen. For a delicious starter, try the cold duck liver pate with quince. Continue with the creamy pumpkin soup with poached egg. For a main dish we recommend the Sirloin steak with goose liver and letcho ‘cake’. As with other dishes on the menu, the chef combines elements of Hungarian haute cuisine with side dishes from the peasant kitchen, all made with a deft hand. Another excellent example for this is the roasted breast of duckling with dumplings and sun-dried plum. Desserts are

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all made in-house. Try the wonderful chocolate cake with raspberry ice-cream or go for the original ‘Kaiserschmarn’ with home-made apricot jam and vanilla ice cream. It is like something from your grandmother’s kitchen. Like the decor and the menu, the attentive service reflects the owners’ high standards. Your knowledgeable waiter can recommend the perfect local wines and spirits to accompany each dish. The owner has carefully chosen special vintages, including some wonderful examples from the cellars of Janos Bolyki in Eger. The 21 Restaurant is a delightful study in contrasts: modern but traditional, sophisticated but homey. <

OPEN: MONDAY-SUNDAY 12:00- 11:00 ADDRESS : 1073 BUDAPEST, Erzsebet krt. 37-39. TELEPHONE: +361 787 8615

Courtesy pictures

YEAR AFTER YEAR, BUDAPEST’S INTERNATIONAL WINE AND CHAMPAGNE FESTIVAL PROVES TO BE THE HIGHLIGHT OF THE FESTIVAL SCENE in the fall, traditionally presenting thousands of Hungary's best reds and whites, live music, gourmet food and countless programs, in the beautiful historic setting of the UNESCO World Heritage site Buda Castle. Spread over five days between Sep 7-11, this year’s edition was the 20th in a row. “Wine producers make every effort to attend this event,” says Rita Olah from the organizer Hungarian Viniculture Public Benefit Company. “Event attendees were again able to taste wines and network with independent growers to learn about the differences between styles, regions and country production methods, taking mundane wine tasting to new levels,” Olah continues, adding that alongside the homegrown nectars, numerous foreign wines were available by noted wine traders. “Special attention this year was devoted to the French wine regions, including Champagne,

wine and sparkling wine production organizes its annual gastronomy

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THE AIM OF THIS FESTIVAL IS NOTHING LESS THAN TO INTRODUCE THE BEST WINES OF HUNGARY AND THE WORLD, TO INVITE WINE-MAKERS TO A PERSONAL MEETING WITH WINE-LOVERS AND TO PROVIDE AN UNFORGETTABLE EXPERIENCE TO EVERYONE.

The little village of Etyek, known for its stunning landscape, excellent

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Average cost for 2 person in HUF ✪ 5.000 – 8.000

✪✪ 9.000 – 12.000

✪✪✪ 13.000 – 25.000

www.bestofbudapest.com

1053 Budapest, Ferenciek tere 7-8. TEL.: +36-1 317-3596

✪✪ KÉHLI

21S T C ENTURY E VENTS ! H-1101 Budapest, Expo tér 2. Tel.: +36 1 263 6800 | Fax: +36 1 263 6801 E-mail: info@expohotel.hu www.expohotel.hu

BAVARIAN ✪ HAXEN KIRÁLY 1068 Budapest, Király utca 100. TEL.: +36-1 351-6793 CAFÉS

1036 Budapest, Mókus u. 22. TEL.: +36-1 250-4241 ✪✪ MIRROR CAFE & RESTAURANT 1053 Budapest, Kossuth Lajos u. 19-21. TEL.: +36-1 889-6022; FAX: +36-1 889-6090 ✪✪ MÚZEUM KÁVÉHÁZ 1088 Budapest, Múzeum krt 12. TEL.: +36-1 267-0375; FAX: +36-1 338-4221 ✪✪ SPINOZA CAFÉ 1074 Budapest, Dob utca 15. TEL.: +36-1 413-7488

✪✪✪ VADRÓZSA 1025 Budapest, Pentelei Molnár u. 15. TEL.: +36-1 345-0426 HUNGARIAN-INTERNATIONAL

✪ ARAZ RESTAURANT

1074 Budapest, Dohány u. 42-44. TEL.: +36-1 815-1100

✪ CASCADE 1125 Budapest, Szarvas Gábor út. 8.

TEL.: +36-1 392-0007

✪✪✪ DIÓ

✪ SHAMBALA CAFÉ

1061 Budapest, Andrássy út 38. TEL.: +36-1 331-5790

✪✪ LIZARD

1114 Budapest, Villányi út 12. TEL.: +36-1 279-1133

1092 Budapest, Ráday utca 16. TEL.: +36-1 299-0702

1137 Budapest, Pozsonyi út 16. TEL.: +36-1 789-6110

✪ CAFÉ PANINI

1135 Budapest, Radnóti M. út 45. TEL.: +36-1 784-1017

✪ RING CAFÉ

✪ TÁSKARÁDIÓ ESZPRESSZÓ

✪✪✪ NOSZTALGIA

1053 Budapest, Papnövelde utca 8. TEL.: +36-1 266-0413

1051 Budapest, Október 6. u. 5. TEL.: +36-1 317-2987

✪✪ NEW YORK CAFE

1073 Budapest, Erzsébet krt. 9-11. TEL.: +36-1 886-6167 CHINESE

✪ HONG KONG & TAIWAN

1135 Budapest, Béke út 26. TEL.: +36-1 329-7252 1097 Budapest, Gyáli út 3/b TEL.: +36-1 215-1236 FUSION

✪✪ SPOON

1051 Budapest, Vigadó tér 3., Kikötô TEL.: +36-1 411-0933 FAR EASTERN

✪✪✪ RICKSHAW

1073 Budapest, Erzsébet körút 43–49. TEL.: +36-1 479-4855

1053 Budapest, Veres P. u. 22.

✪✪ WASABI

✪✪ ROSENSTEIN 1087 Budapest, Mosonyi u. 3. TEL.: +36-1 333-3492 INTERNATIONAL ✪✪✪ ARCADE 1126 Budapest, Kiss János altb. u. 38. TEL./FAX: +36-1 225-1969

✪ COFFEE HOUSE 1067 Budapest, Terez krt 23. TEL.: +36-1 269-2935

✪✪✪ BARAKA 1063 Budapest, Andrássy út 111. TEL.: +36-1 483-1355

✪ BUENA VISTA 1061 Budapest, Liszt Ferenc tér 4-5. TEL.: +36-1 344-6303

✪✪ BOOM & BRASS 1054 Budapest, Vigadó utca 4-6. TEL.: +36-1 877-7788

✪✪ PAPIRTIGRIS

1025 Budapest, Pusztaszeri út 57. TEL.: +36-1 325-6078 ✪ CAFÉ KÖR 1051 Budapest, Sas u. 17. TEL.: +36-1 311-0053; FAX: +36-1 311-0388.

✪✪✪ PIERROT RESTAURANT

1014 Budapest, Fortuna u. 14. TEL.: +36-1 375 6971

✪✪✪ CYRANO

1052 Budapest, Kristóf tér 7-8. TEL.: +36-1 266-4747

✪✪ CORSO

TEL.: +36-1 235-0490

1052 Budapest, Apáczai Csere János u. 12-14. TEL.: +36-1 327-6392

1092 Budapest, Ráday utca 4. TEL.: +36-1 219-0696 ✪✪ DUNAPARK KÁVÉHÁZ 1137 Budapest, Pozsonyi út 38. TEL./FAX: +36-1 786-1009 ✪✪ FRESCO CAFÉ & LOUNGE 1061 Budapest, Liszt Ferenc tér 10. TEL./FAX: +36-1 411-0915 1014 Budapest, Hess A. tér 1-3 TEL.: +36-1 889-6600

✪ KISBUDA GYÖNGYE

1034 Budapest, Kenyeres u. 34. TEL.: +36-1 368-6402 ✪✪✪ LE BOURBON 1051 Budapest, Erzsébet tér 9–10. TEL.: +36-1 429-5770 ✪ LUKÁCS CUKRÁSZDA 1062 Budapest, Andrássy út 70. TEL.: +36-1 373-0407; FAX: +36-1 373-0406

✪✪✪ MOKKA

1061 Budapest, Székely Mihály u. 2.

✪✪ FAUSTO’S OSTERIA ✪✪ MILLENIUM DA PIPPO 1062 Budapest, Andrássy út 76. TEL.: +36-1 374-0880; FAX: +36-1 374-0881

✪ OKAY ITALIA 1137 Budapest, Szent István krt. 20. TEL.: +36-1 349-2991 1055 Budapest, Nyugati tér 6. TEL.: +36-1 332-6960 ✪✪ SYMBOL ITALIAN FUSION 1036 Budapest, Bécsi út 56. TEL.: +36-1 333-5656 TEL.: +36-1 242-0369

✪✪ TRATTORIA POMO D’ORO 1051 Budapest, Arany János u. 9. TEL.: +36-1 302-6473 ✪✪ PORCELLINO GRASSO 1024 Budapest Ady Endre u. 19. TEL.: +36-1 886-7880; FAX: +36-1 886-7837

✪ VAPIANO 1052 Budapest, Bécsi u. 5. TEL./FAX: +36-1 411-0864 JAPAN

1051 Budapest, Vörösmarty tér 7-8. TEL.: +36-1 429-9023

1025 Budapest, Csatarka u. 54 TEL.: +36-1 325-7111 MEDITERRANEAN

✪ REMIZ

1021 Budapest, Budakeszi út 5. TEL.: +36-1 275-1396 ✪✪ SZÉCHENYI ÉTTEREM Danubius Grand Hotel 1138 Budapest, Margitsziget TEL.: +36-1 889-4700; FAX: +36-1 889-4939 ✪✪ VÉNDIÁK CAFÉ LOUNGE 1053 Budapest, Egyetem Tér 5. TEL.: +36-1 267-0226 ✪✪ XO BISTRO 1088 Budapest, Rákóczi út 5. TEL.: +36-1 411-0111 IRISH PUB

✪ BECKETT’S PUB

1055 Budapest, Bajcsy-Zs. út 72. TEL.: +36-1 311-1035

✪✪ 21 A MAGYAR VENDÉGLÔ

1014 Budapest, Fortuna utca 21. TEL.: +36-1 202-2113

✪✪ 220 ÉVES PINCEÉTTEREM

1036 Budapest, Bécsi út 56. TEL.: +36-1 333-5656

✪✪ ARANYSZAVAS BISZTRO

1013 Budapest, Szarvas tér 1. TEL.: +36-1 375-6451

✪✪✪ ALABÁRDOS 1014 Budapest, Országház u. 2. TEL.: +36-1 356-0851; FAX: +36-1 214-3814

✪ BAGOLYVÁR

1146 Budapest, Állatkerti út 2. TEL.: +36-1 468-3110 ✪✪✪ KÁRPÁTIA

TAIWAN RESTAURANT

Celebrates 20th Anniversary

Courtesy pictures

✪✪✪ FAUSTO’S

✪✪ FUJI

1056 Budapest, Belgrád rkp. 16. TEL.: +36-1 318-1222 HUNGARIAN

PHOTOS BY

1026 Budapest, Pasaréti út 55. TEL.: +36-1 275-0049

1051 Budapest, Sas u. 4. TEL.: +36-1 328-0081

✪✪✪ ONYX RESTAURANT

✪ TAVERNA DIONYSOS

TAIWAN IS ONE OF THOSE FEW RESTAURANTS THAT SERVE the most authentic regional Chinese food in Budapest. The menu contains specialties from the four most significant cuisines of China: Peking, Shanghai, Szechuan and Canton, each of which has its own remarkable flavors and ingredients. The owner imports the highest quality ingredients from China, as well as fresh lobster from Canada, and oysters from Belgium. Start out with one of their fragrant soups. We recommend the hot and sour, a specialty of Peking cuisine. Unlike most other Hungarian Chinese restaurants, here they use white pepper to give the original spicy taste to the soup, instead of hot paprika sauce. The sour taste comes from the addition of a little vinegar. The stock is filled with Chinese wood ear mushrooms, scrambled egg, pork or chicken, and garnished with fresh spring onion. Move on to one of their great seafood specialties, including the whole pan-fried or steamed

✪ ALESSIO

1072 Budapest, Dohány u. 5. TEL./FAX: +36-1 269-6806

✪✪ COSTES

1037 Budapest, Szépvölgyi út 15. TEL.: +36-1 430-1056 GREEK

INDIAN ✪ SHALIMAR 1072 Budapest, Dob utca 50. TEL.: +36-1 352-0297 ITALIAN

TEL.: +36-1 877-6210

✪✪✪ ICON

1051 Budapest, Sas utca 4. TEL./FAX: +36-1 328-0360, +36-1 328-0361 ✪✪✪ GRESHAM 1051 Budapest, Roosevelt tér 5-6. TEL.: +36-1 268-5110 ✪✪✪ GUNDEL 1146 Budapest, Állatkerti út 2. TEL.: +36-1 468-4040

✪ BRIÓS KÁVÉZÓ

✪✪✪ CAFÉ 57

ONLINE RESTAURANT RESERVATION

fish with soy sauce, or fresh lobster and oysters. The crustaceans are kept alive in tanks of sea water, while the fish swim in their own pool until they are ready to be cooked. You cannot get fresher fish than that! Another specialty of the house is the Peking duck. After the initial preparation, the skin of the duck is coated with a honey mixture and the duck is hung until the skin is dry and hard. After the duck is roasted in the oven, the skin becomes golden and extremely crisp. While still hot, it is cut into small pieces and served with thin pancakes (called Peking doilies), accompanied by scallions and Hoisin Sauce. You will not find a better example of this dish! Fantastic banquets can be prepared for up to 180 guests with the guidance of the knowledgeable owner. < OPEN: MONDAY-SUNDAY 12:00 – 23:00 ADDRESS: 1097 BUDAPEST, Gyali ut 3/B TELEPHONE: +361 215 1236 2011 SEP

DIPLOMACY & TRADE

✪✪ PEPPERS! MEDITERRANEAN GRILL 1052 Budapest, Apáczai Cs. J. utca 4. TEL.: +36-1 737-7377

✪✪✪ RIVALDA 1014 Budapest, Színház u. 5–9. TEL.: +36-1 489-0236

✪✪✪ ROBINSON 1146 Budapest, Városligeti tó TEL.: +36-1 422-0222 ✪ KÉT SZERECSEN 1065 Budapest, Nagymezô u. 14. TEL.: +36-1 343-1984 FAX: +36-1 343-1983

✪✪ SQUARE BISTRO 1061 Budapest, Liszt F. ter 5. TEL.: +36-70 375-6376 MEXICAN ✪ TACOS LOCOS 1073 Budapest, Erzsebet krt. 37-39. TEL.: +36-1 786-4416 PASTRY AND BAKERY ✪ GERBEAUD 1051 Budapest, Vörösmarty tér 7-8. TEL.: +36-1 429-9000 RUSSIAN ✪✪✪ ARANY KAVIÁR 1015 Budapest, Ostrom u. 19. TEL.: +36-1 201-6737 SPORT PUB ✪ PUSKÁS PANCHO SPORT PUB 1036 Budapest, Bécsi út 56. TEL.: +36-1 333-5656 TEL.: +36-1 242-0369 THAI ✪ BANGKOK THAI 1056 Budapest, Só utca 3. TEL.: +36-1 266-0584

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