Diplomacy & Trade 2016 August

FOCUS country

Switzerland

“Hungary and Switzerland have many things in common, some of them dating back to the Roman Empire. Building on these historical relations, my main goal during my close-to-four-year term in Budapest has been to reestablish the confidence of the Swiss people and potential Swiss investors in Hungary,” the Swiss Ambassador to Hungary, Jean-François Paroz tells Diplomacy&Trade.

Formula One

Young talent Rio Haryanto, Indonesia’s first Formula One pilot was among the contestants at the 31st Hungarian Grand Prix on the Hungaroring circuit this July as a member of Manor Racing team. Diplomacy&Trade spoke to him in an exclusive interview.

NATO 2016 FELLOWSHIP OF THE STAR

In response to the changing political landscape, the NATO Summit in Warsaw this July decided to deploy four combat battalions in Poland and the three Baltic states – a move meant to serve the same purpose as the U.S. troops served in Germany during the Cold War.

SEE ANALYSIS ON page 7

jointlyorganised bythebudapest festivalorchestra andmüpabudapest

french days at müpa budapest

21–28 september 2016

bfz.hu and mupa.hu

letter from the publisher cont en ts

The primary aim of the Treaty of Washington in 1949 was to provide territorial defense for NATO members. With the collapse of the Soviet Union a quarter of a century ago, this goal was pushed into the background. However, as you can read it in our expert analysis, participants of the NATO summit in Warsaw this July decided to respond to the changing political landscape at the organization’s eastern and southeastern borders by reviving this concept with a tripwire deterrence against Russia and by establishing ’permanent rotational presence’ of the Alliance in Poland and the Baltic states.

The Focus of this issue of Diplomacy&Trade is Switzerland. On the 725th anniversary of a confederation of Swiss states, we offer an exclusive interview with the President of the country’s National Council, Christa Markwalder. The Swiss Ambassador to Hungary, Jean-François Paroz discusses with Diplomacy&Trade the bilateral economic relations as well as cultural, social and civic ties. He stresses that Switzerland is an important economic partner for Hungary and he also talks about his brainchild, the ‘Grand Tour of Switzerland in Hungary’. With his tenure ending here this August, we wish Ambassador Paroz success with his next posting in Tokyo. Sayonara, Ambassador.

This issue also features two other ambassadors. Mohammed Abu Zafar from Bangladesh highlights the main issues in bilateral relation in an interview, while Chile’s Verónica Chahin, the author of this month’s WittyLeaks article shares her observations of Hungarian identity.

July was the 227th anniversary of the French people triumphing with ‘liberté, fraternité, égalité’. On this occasion, we continue our Focus on French-Hungarian relations by presenting several French companies operating in this country.

We also have an exclusive interview with Rio Haryanto, the first Indonesian Formula One pilot who has been racing in Hungary in various categories since 2010, while our cultural section highlights the ‘Hollywood Tour of Hungary’.

In closing, having just spent many hours watching the US Republican and Democratic conventions, it is clear to me that there has never been a greater divide in the future direction of US policy that will surely have global ramifications. It’s an election of ‘doom and gloom’ vs. ‘hope and unity’. In the next months, leading up to the November 8 election, Diplomacy&Trade will feature analysis articles from American and international perspectives.

Peter Freed PUBLISHER

PUBLISHER: Peter Freed, EDITOR: Réka A. Francisck, COPY EDITOR: Joyce Freed

PHOTO EDITOR: Dávid Harangozó

SALES & MARKETING DIRECTOR: Tamás Varga, DISTRIBUTION MANAGER: Tibor Ocsenás

ADMINISTRATION: Judit Ludányi ASSISTANT: Ágnes Rapaport

CONTRIBUTORS: Sándor Laczkó, Nándor Mester, Tamás Magyarics, Réka A. Francisk, Verónica Chahin, Balázs Bokor

PHOTO CONTRIBUTORS

Gergely Botár/Prime Minister's Press Office (Cover), 123RF.com, Márton Kovács/MFAT, ELTE, Árpád Földházi/foldhazi.hu, NATO, Luzern Tourismus AG, Switzerland Tourism/Jan Geerk, Herrenknecht AG, Ágnes Komondi, Ádám Samu/airportal.hu, Air France, Embassy of Chile, Tamás Dobos, Zoltán Bagosi, www.anp.hu, László Mudra/Rockstar Photographers, Krisztián Kolesár, Zsolt Melczer, Schneider Papp, Attila Németh/US Embassy Budapest, Máté Földesi, Viktor Kádár, Four Seasons Hotel Gresham Palace Budapest, Attila Zerczi, MTI Photos: Mária Weberné Zsikai, Edvárd Molnár, Zsolt Szigetváry, Zoltán Balogh, Szilárd Koszticsák, János Vajda

07 ANALYSIS

The Warsaw NATO summit

8-17 SWISS FOCUS

Interview with Ambassador Paroz Swiss National Council President in Hungary

Swiss firms: eisberg, Givaudan, Sika, SWISS

18 INDONESIA

The country's first F1 pilot Indonesia's reggae ambassador

19-21 FRANCE

Air France-KLM, Auchan, Servier

22-23 SOUTH KOREA

The restoration of light - August 15

Hungary-Korea Society

Economic outlook

24 WITTY LEAKS

Observing Hungarian identity (a piece by Verónica Chahin, Ambassador of Chile)

26 BANGLADESH

Interview with Ambassador Abu Zafar

27 CULTURE

The Hollywood Tour of Hungary

28-29 WHAT'S ON

Concerts, festivals, events, exhibitions in and out of Budapest

30-31 GASTRONOMY

Szamos Marcipán opens new store at Parliament

Blind Date by Kollázs Brasserie & Bar

D TCH FOC S - COMIN SOON

is preparing a special focus section on the Netherlands, an important business partner for – and substantial investor in - Hungary. It explores the bilateral political, economic, cultural and civil relations as we carry an interview with the Dutch ambassador to Hungary, Gajus Scheltema. We look at the achievements of the Dutch EU Presidency in the first half of 2016, including the circular economy the Netherlands is a pioneer of. We also present the Netherlands-Hungarian Chamber of Commerce and its high level programs in the fields of business, culture and social life as well as Dutch companies who are very active in their social responsibility programs in Hungary, as well.

on the record

HUNGARIAN POLITICIANS CONDEMN TERRORIST ATTACKIN NICE

Hungarian Prime Minister Viktor Orbán has called the July 14 terrorist attack in Nice shocking and unacceptable. In a telegram, he expressed his condolences to François Hollande, President of France. “On behalf of the Hungarian people and myself, I wish to express my deepest condolences and sympathy to you, the French people and the relatives of the deceased. Our thoughts are with you in these difficult hours,” the note said. A statement by the Hungarian Ministry of Foreign Affairs and Trade strongly condemned the attack and said the Bastille Day terrorist attack in Nice confirms the need to step up joint efforts to fight terrorism. Hungary is making every effort to contribute to the international fight against terrorism, Minister Péter Szijjártó said. He confirmed that his ministry knew of only one Hungarian woman injured in the attack. At least 84 people were killed and 18 critically wounded in Nice on Thursday evening after a truck drove into a crowd of people celebrating Bastille Day.

POLISHREINFORCEMENT to BESENT to HUNGARYBORDER

Poland will send another contingent of border guards to help patrol Hungary’s southern border, Polish Interior Minister Mariusz as c a ann unced after a meet n th h s se rád ur c unterparts n the sh cap ta arsa

Last year and sent rder uards t he p un ary th ts rder pr tect n eff rts as c a as u ted y the un ar an ne s agency MTI as saying that the protection of the European Union’s external borders will remain a priority of the V4 under Poland’s presidency of the Group. Hungarian Interior Minister Sándor Pintér said the help Hungary will receive from its V4 partners will allow the country to better enforce its new border regulations that entered into effect earlier this month.

He said that only 17 migrants have managed to get past border police and enter the country since the new rules have been in effect. Under Hungary’s new border rules, illegal entrants stopped within eight kilometers of the border are to be escorted back over the border and offered an opportunity to apply for asylum at a transit zone. Migrants who comply with authorities and apply for asylum will not be expelled from the country and their appeals will be processed without delay. The presence of foreign border guard units is now welcomed by Hungary but analysts note that only a year ago, Hungarian PM Viktor Orbán refused a Czech offer for reinforcements for the Hungarian-Serbian (Schengen) border.

UNITEDARABEMIRATES to OPEN EMBASSY in BUDAPESTNEXTYEAR

UPCOMING NATIONAL DAYS

August

1Switzerland National day

6Bolivia Independence day

9Singapore Independence day

14Pakistan Independence day

15India Independence day

15South Korea National day

17Indonesia National day

20Hungary National day

24Ukraine Independence day

25Uruguay Independence day

27Moldova Independence day

29Slovakia National day

31Malaysia National day

September

2Vietnam National day

7Brazil Independence day

8Macedonia Independence day

16Mexico Independence day

18Chile National day

21Malta National day

21Armenia National day

23Saudi Arabia National day

HUNGARIAN NOVELIST PÉTER ESTERHÁZY PASSESAWAY

Internationally renowned Hungarian writer Péter Esterházy died in Budapest at the age of 66 years. He had been suffering from pancreatic cancer. Born in 1950 into a Hungarian aristocratic family that was dispossessed of its wealth by the communist regime, sterhá y as a ua f ed mathemat c an and r ed f r f ur years n the m n stry f ndustry in the 1970s before devoting his energies to literature. As the AFP news agency notes, he was considered one of Hungary's most influential contemporary writers, his works are character ed y a ran e f sty es as e as e per mentat n he a ency u ted mer can writer John Updike as saying in the New Yorker magazine that "Esterhazy's prose is jumpy, allusive, and slangy... there is vividness, an electric crackle." Esterházy wrote in a witty post-modern style. He became known for, among other things, his works ‘Little Hungarian Pornography’ (1997), ‘Down the Danube’ (1992) and ‘Celestial Harmonies’ (2001). Just over ha f a year a sterhá y d scussed h s ness n h s atest n s he u ty d not believe that writing would be a therapy, but having been writing for 45 years, I might lack the overview." It was last October that Esterházy mentioned, in an interview, for the first time, that he was suffering from pancreatic cancer. This June, he was still well enough to open a prestigious Budapest book fair where he presented his final work, ‘Pancreas Diary’, which portrayed his battle with the illness.

EUROPEANUNIONPOPULARITY RISES in HUNGARY

SIXHUNGARIANUNIVERSITIES AMONGWORLDTOP1000

The Foreign Minister of the United Arab Emirates, Abdullah bin Zayed Al Nahyan announced at a press conference during his visit to Hungary mid-July that his country will open an embassy in the Hungarian capital next year, a development that, he said, will be an important step in further strengthening bilateral relations. Following talks with his Hungarian counterpart, Péter Szijjártó, Abdullah bin Zayed Al Nahyan said, in a joint press conference with Szijjártó, that the governments of the UAE and Hungary hope to conclude several agreements this year. As a leading country in the Persian Gulf, the United Arab Emirates plays a key role in ensuring stability in the region, Szijjártó said. He added that cooperation with that country is of vital importance now that NATO faces challenges from that direction. Speaking about bilateral economic ties, the Hungarian Minister of Foreign Affairs and Trade identified cooperation prospects primarily in water management and energy including training nuclear experts for the UAE. He said that the UAE’s airline, Emirates plans to operate its second largest customer service center in Budapest soon. he enter f r r d n ers ty an n s has re eased the r annua st f the t p un ers t es n the r d a st that nc udes s un ar an un ers t es ran s the r d s un ers t es y us n e ht nd cat rs ua ty f educat n a umn emp yment ua ty f faculty, publications, influence, citations, broad impact and number of patents. From Hungary, it is the Eötvös Loránd University (ELTE) in Budapest that has the highest ranking on the list, at position 488, thus e n n th s c untry L a s e ce s n terms f the ua ty f educat n y ccupy n

the th p ace n th s cate ry he ua ty f the facu ty measured y nternat na rec n t n rece ed y the academ cs f the un ers ty s 117th in the world, while based on the number of highly-cited publications, ELTE ranks 268th. The other five Hungarian universities on the list are Semmelweis University Budapest (631th), the University of Debrecen (661th), the University of Szeged (708th), the Budapest University of Technology and Economics (850th), while the University of Pécs is ranked 877th. Experts compiling the list named UK and US institutions in the top positions: Harvard was ranked the world’s best university, followed by Stanford and the Massachusetts Institute of Technology (MIT). From the United Kingdom, Cambridge and Oxford earned fourth and fifth place, respectively.

According to 70% of Hungarians, the first 12 years of EU mebership was all in all beneficial for the country – a figure 13 points higher than polled a year ago. Another important point in the public opinion poll conducted by the Publicus Institute is that close to two thirds of the respondents believe Hungary is able to utilize the opportunities arising from the membership – showing a 7-point increase. The survey interestingly found that the majority of supporters of the main political parties are in favor of EU membership, even among the voters of the most EU-skeptic extreme right Jobbik party.

One thousand people nationwide were surveyed in early July, after the Brexit vote in the United Kingdom. Despite the fact that the life outside the EU was widely discussed in connection with the British referendum, a clear majority (64%) of the respondents said they would again vote ‘yes’ if they were asked about Hungary joining the European Union. This is also a 7-point increase compared to a year before. 46% of those polled were of the opinion that UK citizens will be worse off leaving the EU, while less than one third (30%) believe it will be better for the British if they do.

HIPAASSISTS EUR 1. 33 BN INVESTMENT in FIRSTHALF of 2016

In the first half of the year, the Hungarian Investment Promotion Agency (HIPA) was involved in the launch of 38 investments in Hungary, with a combined value of EUR 1.33 billion, Minister of State for Economic Diplomacy in the Hungarian Ministry of Foreign Affairs and Trade, Levente Magyar said at a press conference in early July. HIPA Chairman Róbert Ésik added that these investment projects created a total of 8,529 new jobs in Hungary. The majority of these investments, eight in all, were made by US-based companies, according to HIPA. The United States was closely followed by Germany, with seven companies investing in Hungary in the JanuaryJune period. The HIPA Chairman noted that, broken down by sector, the automotive and vehicle manufacturing industries still dominate in terms of the number of foreign investments made as well as the value of the capital invested. HIPA is expecting to conduct talks in the second half of the year with 169 companies planning to invest a total of EUR 5 billion of capital in the country, he added. “Out of the 38 projects realized in the first half of the year, 25 were supported based on individual government decisions, and the government funding in those cases covered 16% of investment costs on average,” Ésik was quoted by the Hungarian News Agency (MTI) as saying.

UBERRIDESHARESERVICE PULLSOUT of HUNGARY

Drivers of the on-demand ride share service company Uber received a notification mid-July that "at noon on 24 July 2016, Uber is suspending its services in Budapest." According to the financial website portfolio.hu, the use of the word 'suspending’, may suggest that the exit is not permanent.

Zoltán Fekete, operations manager at Uber in Hungary, said Uber was willing to be part of a system that allows it to pay taxes in Hungary, but realized the government is not willing to agree to that. Uber is excluded from transporting passengers in Hungary by a new government decree, which says passenger transport companies must operate a dispatch service. By definition, Uber does not require a dispatch service as it offers its services exclusively via a mobile application. The ban to "make temporarily inaccessible" applications ensuring such services and websites promoting them can be ordered, if the party organizing or brokering the taxi service fails to comply with the dispatch regulations, may be ordered for a 365-day period.

The effective blocking will be organized and monitored by the National Media and Telecommunications Authority, and every electronic telecommunication service provider must comply with the resolution to block the website and the application. Uber had also been threatened that the driver's licenses of Uber drivers would be revoked and the license plate of their cars also taken away, banning the use these vehicles even for private purposes.

WIZZAIRREVISESPLANSDUE to BREXITVOTEHUNGARY’SMOLSELLS

Hungary-based budget airline Wizz Air has published its earnings report for the first quarter of 2016, which shows a jump in profits as a result of dynamically rising passenger numbers, improving load factor and low fuel prices. The carrier’s management confirmed their growth estimates for this year, but also warned that the favorable impact from the fuel price decrease is temporary and that the second half of the year has "limited visibility." Fares could drop, according to the company’s CEO, József Váradi who expects a decline of about 5% for this year. Wizz Air had a strong run in the second quarter of 2016. The airline carried a total of 5.8 million passengers, a 17.9% increase compared to the first quarter, and generated revenues of EUR 364.9 million, a growth of 9.8% compared to the previous quarter. The carrier’s after-tax profit jumped to EUR 38.6 bn from EUR 33.9 bn a year earlier.

According to analysis by the financial website portfolio.hu, the growth outlook in the region remains favorable.

Wizz Air is no longer just the largest low-cost / low-fare airline here, but the largest airline. The carrier will announce 60 new routes and open three new bases in 2017, seeing growth potential on all of its markets. The United Kingdom’s decision to leave the European Union has led to a notable weakness in fares (in euro terms) on routes to/from the UK mainly due to the much weaker British pound which is currently 19% lower than the same period last year versus the euro, the company said. Wizz Air has already started re-adjusting its network due to this weakness and halving its intended second half growth to the UK and re-deploying this capacity to other non-UK routes.

BAT to INVESTEUR9.5M in SECONDHUNGARIANPLANT

British American Tobacco (BAT) plans to increase production capacity with an investment of HUF 3 billion forints (EUR 9.5m) at its plant in Pécs, in southern Hungary, creating 200 new jobs. The CEO of BAT Central Europe, Richard Widmann said the group has invested more than HUF 57 billion in Hungary since 1992, and its Hungarian unit has become one of the biggest investors and employers in the country. In 2014, a new production facility was created in Pécs with an investment of HUF several billions while maintaining the old downtown production unit in the city. Also speaking at the opening ceremony, the Hungarian Minister for Foreign Affairs and Trade, Péter Szijjártó noted that Hungary’s investment promotion agency HIPA is in talks with another seven British companies on further investments. He said the value of trade between Hungary and the United Kingdom grew by 15% to EUR 5 billion last year. As a result of an overhaul of BAT’s European production strategy, the group is eliminating certain capacities in western Europe and moving investment to Hungary, the minister said. Headcount at the Pécs tobacco factory will increase to 800, he added.

Hungarian oil and gas group Mol has announced that it is selling its minority stake in Energopetrol to INA, its own Croatian subsidiary. According to the announcement, Mol signed a share purchase agreement with INA with regard to the sale of its 33.5% equity stake in Energopetrol.

Following the completion of the transaction, INA holds a 67% ownership stake in Energopetrol. The balance of the company is held by the Government of Bosnia-Herzegovina with an ownership of 22.1% while 10.9% is publicly traded on the Sarajevo Stock Exchange. Energopetrol is among the top fuel retailers in BosniaHerzegovina; it owns and operates more than 60 retail stations and conducts wholesale activities across the country. "Following the completion of the deal further operational and organizational synergies are expected to be delivered as INA is a major player in the wholesale and retail motor fuel markets of Bosnia-Herzegovina," Mol said in a statement on the website of the Budapest Stock Exchange (BSE). Mol acquired a majority stake in Energopetrol in September 2006 when the Mol-INA consortium signed a contract with the government of Bosnia-Herzegovina, and became the majority owner of Energopetrol with a 67% holding obtained via a capital increase. The biggest yield of the acquisition for Mol, besides entering a new market, was possibly the strengthening of its relation with INA.

NEWSOLAR POWERPLANT COMMISSIONED NEARSAJÓBÁBONY

A new solar park was put into operation near Sajóbábony, northeastern Hungary this July. The value of the investment in the solar power plant is HUF 200 million (about EUR 630,000) and it is expected to produce between 550,000 and 580,000 kWh of electricity per year, which is enough to supply up to 200 households. The construction of this solar park was financed through a commercial loan and resources of the Hungarian company Solarpark-Bábony.

In the power plant of 1.2 hectares, DC power produced by 1930 solar modules, each with an output of 265 watts, is converted to AC current and then sold and fed into the electricity grid. Speaking at the opening ceremony, State Secretary in charge of energy issues in the Ministry of National Development, András Aradszki talked about Hungary’s energy strategy, which, he said, is not only about nuclear energy but is also aimed at creating alternative energy production tools. This latter include the use of renewable energy.

He added that Hungary has undertaken to raise the proportion of renewable energy resources within the country’s energy usage to 14.65% by 2020. This share in 2013 was 9,81%, over the value scheduled for 2016. The state secretary noted that the government is committed to the goals laid down in the EU 2020 Strategy and in the 2030 Framework for climate and energy but it is very important that the energy sources usedcan fully guarantee the smooth, safe and efficient operation of the Hungarian electricity system.

NATO:BACKTOBASICS?

2016 NATO SUMMIT REVIVES TRIPWIRE DETERRENCE AGAINST RUSSIA

BY TAMÁS MAGYARICS

The Treaty of Washington in 1949 was first and foremost concluded to provide territorial defense for its members. This mission was somewhat redefined after the collapse of the Warsaw Pact and the Soviet Union in the early 1990s, and the Atlantic Alliance had to look for another core mission lest it should ‘go out of business’ in the words of then Senator Richard Lugar. NATO adopted ‘out-of-area’ operations, in other words, became engaged in exporting and/or maintaining stability in areas from the Balkans to Afghanistan and Iraq. This mission was made possible by the dissolution of the Soviet Union and the ensuing domestic and foreign problems which made Russia rather passive in the international arena; the ‘unipolar moment’ for the U.S. (Charles Krauthammer) as China, the other potential major rival to the West had not yet become strong enough to challenge the positions of the Atlantic Community. NATO was able to expand practically without any major opposition in East and Central Europe: Moscow’s so-called red lines turned out to be empty threats in reality.

No assurances

The expansion of NATO into East and Central Europe gave rise to a war of words between Russia and the Alliance. Moscow claimed that it had been given assurances at the time of the political transformation in the region that NATO would not move closer to the Russian border, while the Americans, in the first place, declared that no such promise had been made at that time. Moscow’s other grievance against the Alliance was the latter’s ’humanitarian intervention’ in the Balkans against Russia’s traditional ally, Serbia in the mid- and late1990s, which threatened a substantial weakening of Moscow’s influence in the region. The geopolitical landscape started to change in the early 2000s. China became more and more assertive; the U.S. got involved in extremely complicated (and controversial) wars in the wider Middle East, and President Vladimir Putin initiated a more active foreign policy aimed at restoring Russia’s great power status. This endeavor involved, among others, restoring Russian hegemony in a number of regions around the country. Although, the Obama Administration harbored high – and largely unfounded – hopes of working with the Kremlin in a number of areas (’reset’), it seemed to ignore the fact that President Putin was (and is) thinking in terms of Realpolitik, and his major interest was (soft) balancing the U.S. wherever possible. Deputy Secretary General of NATO, Alexander Vershbow has rightly pointed out recently that the Alliance, in fact, is “in a long-term strategic competition with Russia” instead of having some sort of ‘strategic partnership’ or the like as some people would like to believe. NATO Secretary General Jens Stoltenberg talked even more forcefully when

he declared that Russia poses a strategic challenge and threat in the Euro-Atlantic region.

Forward deployment

For all intents and purposes, the relationship between the Alliance and Russia has assumed a character which is similar to the one during the Cold War to a large extent. (Former President Mikhail Gorbachev’s comment about an impending ’hot war’ between the two sides is quite wide off the mark, though.) The latest NATO summit in Warsaw (which in itself implied strong symbolisms) revived, on the one hand, the tripwire deterrence against Russia. The deployment of four combat battalions with about 1,000 troops each in Poland and the three Baltic states is meant to serve the same purpose as the U.S. troops served in Germany during the Cold War. (The fact that it is the U.S. that will lead the Allied forces in Poland is also meaningful.) The ’permanent rotational presence’ of the Alliance forces (because the ’permanent’ deployment per se is banned by the NATO-Russia Founding Act of 1997) can also be seen as forward deployment, which is also of Cold War vintage. Moscow is vehemently opposing this decision by maintaining that the ’Russian threat is nonexistent,’ but the countries around the Kaliningrad oblast have some justified misgivings about the mechanized brigades, tanks, long-range air-defense systems, and the nuclear capable missiles which Russia has been putting into the territory. Moreover, the repeated violations of the airspace of the Baltic states by Russian fighter jets are also difficult to interpret as acts

of friendship. We may also add the annexation of the Crimea and the destabilization of Eastern Ukraine as further indications that President Putin is not shrinking from using force or the threat of force to achieve his goals.

Parallels with the 1980s

The second element of the declaration of the Warsaw meeting invokes the dual track strategy of the Alliance in the 1980s, when after the 1979 Brussels summit NATO decided to deploy the cruise missiles and the Pershing IIs in response to the Soviet deployment of the intermediaterange SS-20s and, at the same time, offered talks to Moscow in order to remove them. This time, U.S. Secretary of State John F. Kerry left for Moscow almost immediately after the Warsaw summit to engage in discussions over a wide range of security topics with Russia. There are other parallels with the situation in the 1980s: the Germans were not happy with the tough line taken by Ronald Reagan at that time, while now German Foreign Minister Frank-Walter Steinmeier warned against unnecessary ’war-mongering’ and ’saberrattling’ by NATO. It seems that ’understanding Russia’ (’Russland verstehen’) (and President Putin) is still popular among certain segments of the German society. With the tripwire deterrence and forward deployment, NATO has returned, in essence, to its original mission of territorial defense in Eastern Europe. The new element vis-á-vis Russia is a preparation for a hybrid warfare, that is a combination of conventional military tools, psychological warfare, cyber-attack, economic and political pressure, targeting the population through the social media, and the like.

NATO still relevant

The threats NATO’s southern flank is facing are of different nature to some extent. Here, the traditional territorial defense and forward deployment elements are also relevant in the form of enhanced NATO-presence in the Black Sea. The decision in Warsaw may or should, however, be revisited soon given the repercussion of the coup in Turkey.

President Erdogan has taken steps towards a rapproachement with Russia lately, and he viewed the Black Sea as a mare nostrum for Turkey and Russia earlier. Therefore, he may not have the appetite to provoke President Putin in the region. Moreover, he may invoke the Montreaux Convention of 1936 any time, which restricts the presence of countries in the Black Sea which are not adjacent to it. Moreover, the Turkish President claims that Fethullah Gulen is behind the recent coup against his rule, and demands that the U.S. extradite the clerical leader, who currently is living in Pennsylvania. The complications with Turkey, which has the second largest military in NATO after the U.S. are bound to make it more difficult for the Alliance to deal with the asymmetrical threats in Syria, Iraq, and Afghanistan – and, above all else, the challenge posed by the ISIL/Da’esh. There were calls for the dissolution of NATO at a time when the Warsaw Pact had become history; events since then have proved that collective security and the concomitant structures are as relevant nowadays as ever.

Tamás Magyarics is a foreign policy analyst

INTERVIEW WITH JEAN-FRANÇOIS PAROZ SWISS AMBASSADOR TO HUNGARY

BY SÁNDOR LACZKÓ

“Both Switzerland and Hungary were part of the Roman Empire. In fact, I grew up in Switzerland near Avenches (or Aventicum), which used to be the former capital of Roman Helvetia and now, I have served almost four years in Budapest whose northwestern part (at that time called Aquincum) was actually the capital of the Roman province Pannonia,” Ambassador Paroz draws a historical parallel when talking to Diplomacy&Trade. It was almost four years ago that he arrived to Budapest, setting several objectives for himself. “The reinforcement of bilateral economic relations is a priority to both the Swiss and the Hungarian governments. Despite not being a member of the European Union, Switzerland is an important economic partner for Hungary. With approximately 300 companies present here, Switzerland is among the top 10-investor countries and continues to make further investments. During my tenure, I had many opportunities to visit Swiss companies in Hungary. The Swiss economic presence in Hungary was also highlighted on the occasion of special events organized with the Swisscham Hungary or other partners like Swiss Business Day, Swiss Sports and Adventure Day,” he notes. “The Swiss Contribution Program constitutes an important pillar of our bilateral relations

with Hungary. During my mission, the focus was on the implementation of the 37 projects designed to reduce economic and social disparities in Hungary. They help to foster specific objectives like promoting economic growth and improving working conditions; enhancing social and public security and safety; protecting the environment; and strengthening civil society. The diversity of projects and partners involved in the program enabled our two countries to develop strong relationships and cooperation not only at the official and governmental level, but also between cities, municipalities, universities, NGOs, etc.” Ambassador Paroz stresses. The Ambassador took part in promoting the dialogue and contacts between Switzerland and Hungary at various levels through creative projects and programs. Last year, it was the SwissHungarian Friendship program, which contained a series of jubilees, festivities, cultural and academic events and the celebration of the town twinning between Montreux and Sátoraljaújhely. Political personalities from Switzerland and from Hungary have agreed to support the implementation of the successful program as well as the strengthening of the political dialogue, particularly at the parliamentary level. The ambitious Lake Balaton and Lake Geneva partnership project has been initiated by representatives of the Balaton region and the Swiss Embassy.

A GRAND TOUR of HUNGARY

PROMOTING THE SWISS PRESENCE IN HUNGARY

Based on the concept of tourists exploring the main attractions of Switzerland, Ambassador Paroz came up with the idea of creating the ‘Grand Tour of Switzerland in Hungary’. Thus, on the occasion of the upcoming 60th anniversary of the Hungarian Revolution, the Swiss Embassy created a unique project, aimed at offering a unique opportunity to the broad public to learn more about the ‘Swiss side’ of Hungary, as numerous Swiss related places have gained importance through historical events, famous persons, city partnerships or as business locations. According to the Ambassador, “this program enabled us to organize numerous events throughout the country and to celebrate the long-time friendship between the two countries and its people by creating a unique project in collaboration with the Swissham Hungary, the Swiss Business Club, the Swiss Association in Hungary (Schweizer Verein in Ungarn), Switzerland Tourism and companies like Nestlé and Stadler, who are celebrating special anniversaries in Hungary.”

He notes that 60 years ago, around 200,000 Hungarians were forced to leave their country. “The Hungarian Revolution unleashed an unprecedented wave of solidarity in many countries, including Switzerland, where more than 12,000 refugees were accepted. Taking into account the population, one of the highest quotas was accepted by Switzerland. Swiss integration of the Hungarian refugees was exemplary. These are the people who guaranteed the close ties between our two countries, which – after the quarter of a century that has passed since the transformation of the political system in Hungary – are still noticeable in the center of a free and democratic Europe. Besides the extent of the Hungarian impact on Switzerland, there are also several spots in Hungary closely linked to Switzerland. Therefore, we created an interactive map on the website of the Swiss Embassy, which points out the numerous places in Hungary that have gained importance through historical events, famous persons, city partnerships or as business locations. The ‘Grand Tour’ not only consists of the interactive map on our website, we also try to celebrate the diversity of relations through special events: on the World Red Cross Day for example, the Embassy organized a commemoration ceremony in Pannonhalma, western Hungary, where we remembered Friedrich Born and Eduard Brunschweiler, two Swiss ‘Righteous among the Nations’, who saved thousands of lives during the Holocaust. During the official visit of the President of the National Council in April, we were also able to visit places in Budapest such as the Glass House, where Carl Lutz produced thousands of protection documents with his Hungarian helpers, or the Ganz Museum, where the lifetime achievement of Abraham Ganz, a Swiss-born Hungarian iron manufacturer, machine and technical engineer, can be marveled. On June 1, we celebrated the opening of the Gotthard Base Tunnel in the southwestern Hungarian town of Szentgotthárd, which not only shares the same name but also has several connections with Switzerland. As you can see, the ‘Grand Tour of Switzerland in Hungary’ is a very varied project. It is dedicated to the longtime friendship between our countries and aims at promoting the Swiss presence in Hungary,” the Ambassador concludes.

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FAMO S SWISS IN H N ARY

From a historical point of view, private initiatives were always of major importance within bilateral relations. “Some of the Swiss who came to Hungary contributed to important developments in this country and left traces that are still visible today. Let me give you some examples: Abraham Ganz from Embrach (ZH), was the founder of Hungarian heavy industry. His breakthrough came with his patent for railway wheels, which he sold to the expanding railway companies throughout Europe. Starting as a journeyman in a foundry, he soon became one of the wealthiest men in Hungary and a pioneer in industrial mass production.

Only few people know that Émile Gerbeaud, a Swiss confectioner from Geneva, founded the legendary Gerbeaud café and confectionery on Vörösmarty Square. It is one of the most famous cafés in Europe. Eduard Weber from Basel was the founder of ‘Helvécia’, a suburban village close to Kecskemét. Swiss Reformation - particularly Calvin’s teachings - has not only affected the city of Debrecen but also the Hungarian church and people. Let’s not forget Carl Lutz or Friedrich Born and many more Swiss citizens in Hungary, acknowledged as “Righteous among the nations“ who saved the lives of countless Jews in Budapest.

He was also keen on objective reporting about the political and socioeconomic situation in this country. “When I arrived in Hungary, the country was under criticism. Media reported extensively on the government’s plans remodeling the state, the deficit of democracy and the unorthodox economic policy in Hungary. One of my priorities was to get a clear and objective picture of the current political situation without being biased. The Embassy also made a big effort to ensure objective and factual reporting on the country.”

Economic relations

According to the Ambassador, business ties between Switzerland and Hungary can be characterized as a ‘win-win situation’. According to Swiss customs statistics, in 2015 the volume of Swiss-Hungarian bilateral trade, in both directions, amounted to HUF 314 billion (CHF 1.1 bn), which clearly exhibits the close links between the two economies and about 30% was covered by machinery. Vehicles covered 20%, which included the exports of a Swiss train manufacturer and the Hungarian car manufacturers, respectively. In the case of Switzerland, the third largest exports were realized in the field of medicine, in the case of Hungary it was the export of agricultural products.

About 300 Swiss companies employ thousands of people in Hungary and have made impressive investments in their Hungarian facilities. Nestlé recently announced it will make the largest investment so far in Hungary. The Swiss food producer will invest a further HUF 20 bn in its pet food factory in Bük. “I am very satisfied that

not only large companies like Nestlé and Stadler have increased their production capacities in Hungary but also medium sized enterprises like Fraisa, producers of industrial cutting tools, and Contrinex, a specialist for high-tech sensors, are growing. Producing mainly for export markets, these companies are doing well and continuously increase their investment in Hungary.”

As one of the top 10 investor countries, Switzerland has been a significant partner to Hungary for many years and it is not only because of the cheap work force. There is a good legal framework, which defines the bilateral economic relations between our two countries. Besides the treaties, which Switzerland negotiated with the European Union, we also have bilateral agreements between Switzerland and Hungary. In economic terms, the most important ones are probably the double taxation agreement and the agreement on the reciprocal protection of investments. Unfortunately, during my mission, there have also been some cases where we had to remind the Hungarian government on their obligation to respect the latter. The investors in such cases are not so happy with the business environment here. The Swiss owner of the Zsolnay porcelain manufacture in Pécs, for example, has been facing strong actions by Hungarian authorities that harm his business and endanger his investment. In such cases, we are in talks with our Hungarian partners and try to reach satisfactory solutions. I hope that we can reach a good solution also in the case I just mentioned. Here, I definitely see room for improvement.”

SWISS-H N ARIAN FRIENDSHI THRO H C LT RE

Concerning the cultural relations between Switzerland and Hungary, Ambassador Paroz points out that they are tight, rich and diverse. Cultural life in Switzerland and Hungary display such enormous variety: there is a vast range of attractions such as museums and galleries as well as festivals of music, theater and literature. “The cultural relations have their roots in an exchange between artists of our two countries. Cultural ties became stronger throughout the second half of the last century when famous Hungarian artists immigrated to Switzerland to live and work there. The piano player Géza Anda, for example, migrated to Switzerland during the Second World War; his heritage, the Geza-Anda-Concours, which takes place in Budapest in the Liszt Academy, has since established itself to be one of the most prestigious Piano-competitions for young musicians from all over the world. Sándor Veress is another brilliant example. The teacher of renowned Hungarian composers like Lajos Vass, György Ligeti and György Kurtág moved to Bern in 1949.”

The active involvement of the Swiss Embassy in Budapest in the cultural field is twofold: the priority is to ensure the presence of the Swiss culture in Hungary, or more precisely, the ‘Swiss Cultures’, since the three national languages, German, French and Italian, all have their cultural particularities. The Ambassador highlights that “we have established a strategy of close cooperation with partners in the form of festivals that attract a large number of visitors. In March, we start off with the ‘Fête de la Francophonie’, a month of cultural and educational programs in French language; April is dedicated to literature, Switzerland takes part in the First Novelist Festival and is represented at the German-language Stand of the International Budapest Book Fair; during the German-language film festival ‘Sehenswert’ in September, Swiss films are screened in Budapest, Szeged and Pécs; October closes with the ‘Settimana de la Lingua Italiana’ (The week of the Italian language), where either Swiss films or musical performances are presented to the Hungarian public. As you can see, film and music are two of our main instruments to promote Swiss culture in Hungary.” Cultural issues relevant to Hungarian-Swiss bilateral relations included “in 2014, the movie ‘Carl Lutz – the forgotten Hero’ perfectly fit into the commemoration of the Holocaust in Budapest 70 years ago. The premiere of the film ‘Viktória – a tale of grace and greed’ about Hungarian prostitutes on the streets of Zürich gave us the opportunity to illustrate the problem of human trafficking in central Europe and the cooperation between Switzerland and Hungary to prevent and combat it,” he says.

A RI ATE RAND TO R OF H N ARY

During his tenure here, Ambassador Paroz has had many opportunities to tour Hungary. “Sometimes Swiss companies invited me to visit their factories spread all over the Hungarian countryside. When time allowed, I took these opportunities to visit the city centers and the most important sights. On weekends, I preferred to take trips, especially to Lake Balaton, where I have a favorite coffee house on the Tihany peninsula. I enjoyed living in Hungary and I tried to get to know as much of it as possible. When it comes to Budapest, the city has no shortage of things to see. The capital is also full of extraordinary examples of architecture.

I like the panorama at the Danube River from the Citadella which is maybe one of the best in the world.” He also found Budapest as a paradise of antique shops. Given that he is a passionate collector of old maps, he was able to expand what he calls “my modest collection.”

While traveling in Hungary, Ambassador Paroz also discovered the great treasures of the Middle Ages. “The impressive castles and fortresses in Visegrád, Eger or Diósgyőr and - for an avid collector of old maps - of course, the well-preserved libraries that conserve the spiritual and intellectual heritage of that period. Particularly noteworthy are the libraries in Eger, the Festetics castle in Keszthely, the Archabbey of Pannonhalma and the library in the Reformed college of Debrecen. Hungary definitely has a good share and takes good care of a significant part of the European and World Cultural Heritage,” he points out, adding that these are the memories he takes with him to his next posting in Tokyo, Japan.

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CLOSE COOPERATION on POLITICAL LEVEL

INTERVIEW WITH CHRISTA MARKWALDER, PRESIDENT OF THE NATIONAL COUNCIL OF SWITZERLAND

This April, a delegation of the Swiss National Council, headed by President Christa Markwalder, held official talks with members of the Hungarian Parliament in Budapest. Hungarian President János Áder also met with Christa Markwalder who gave an exclusive interview to Diplomacy & Trade.

According to official Hungarian sources, Speaker of the Hungarian Parliament, László Kövér, said Switzerland remains a strategically important partner for Hungary regarding both trade and investments, and “on the political scene, Switzerland is not a neutral country.” In this respect, Kövér urged a compromise and a pragmatic approach concerning immigration issues, including benefits of Hungarians working in Switzerland. Currently, there are about 20,000 Hungarians working permanently in Switzerland mainly in industrial, commercial and service sectors.

“It is not all about the refugee crisis, which has to be tackled jointly across Europe. It is also about so-called labor immigration. Let me remind you that due to the results of a referendum, the Swiss government is obliged to submit a resolution to the National Assembly on curbing immigration but I know this conflicts with the free movement of citizens within the European Union. The article win our Constitution only says Switzerland should manage the migration issue itself,” Christa Markwalder said.

However, she expressed optimism about finding a suitable solution. She emphasized that members of the Swiss parliament are working hard to specify which sectors have to be protected and which

may accept additional foreign labor. “In sectors where the unemployment rate and the number of foreign applications are high, we probably will use so-called national privilege. As 25% of our

population has foreign roots, we have to consider that those already working in the country may enjoy this national privilege practice, too, so, employers have to accept their application. Employers may accept new foreign applicants only if they do not find a suitable person for a certain job.” Speaking about the future of the Schengen system, the President reminded that Switzerland has been member of the Schengen area since 2005. “Swiss people are happy to be part of this system. We share the concerns of European countries and say that this system should be protected. We also say that migration has to be solved at the roots: in Syria and other countries and Europe have to preventhumanitarian catastrophe. Some of the migrants come to Europe to save their lives, to find shelter, and some just try to look for better prospects. Switzerland has a long humanitarian tradition, we understand refugees in these years just as we did 60 years ago when we warmly welcomed about 12,000 Hungarians fleeing after their tragic revolution. Certainly, we cannot invite everybody to come to Europe but we cannot push them back them to suffer either,” she argued. Although, Switzerland is not a member of the European Union, it supports many social and infrastructure projects across less developed EU countries. Christa Markwalder said that the Swiss parliament is discussing new contributions which are supposed to be used by EU and non EU member states in Europe. She reminded that Switzerland contributed more than CHF 130 million over the last 10 years to several projects in Hungary. She referred to the latest mobile dam along the river Danube and also spoke about a mobile laboratory funded by Swiss sources and used by experts of Hungarian security forces and environmental experts. During a short visit in Keszthely, SW Hungary, Christa Markwalder said she appreciated the partnership between authorities of the Balaton and Lake Geneva regions and expressed optimism that other regions will follow their example.

WORLD’S BIGGEST RAILWAY TUNNEL OPENS

The world's longest and deepest rail tunnel has officially opened in Switzerland, after almost two decades of construction work. The 57-km twin-bore Gotthard base tunnel will provide a high-speed rail link under the Swiss Alps between northern and southern Europe.

The tunnel, the first flat, low-level route through the Alps, has overtaken Japan's 53.9-km Seikan rail tunnel as the longest in the world and pushed the 50.5-km Channel Tunnel linking the UK and France into third place.

In a speech to guests in Erstfeld, near the northern entrance to the tunnel, Swiss Federal President Johann Schneider-Ammann said it was a "giant step for Switzerland but equally for our neighbors and the rest of the continent". He added that the new tunnel fits into the European railway freight corridor, which links Rotterdam and Genoa, key ports in the Netherlands and Italy. “Aside from saving time, more merchandise can be carried through the Alps,” he explained.

According to newspaper reports, engineers had to dig and blast through 73 different kinds of rock, some as hard as granite and others as soft as sugar. More than 28 million tons of rock was excavated, and then broken down to help make the concrete used to build the tunnel. The completed tunnel travels up to 2.3 km below the surface of the mountains above and through rock

that reaches temperatures of 46 degrees Celsius.

The project, endorsed by Swiss voters in a referendum in 1992, consists of two single-track tunnels connecting Erstfeld (Canton Uri) with Bodio (Canton Ticino) and passing below Sedrun (Canton Graubünden). It is part of the AlpTransit project, also known as the New Railway Link through the Alps (NRLA), which includes the

Lötschberg Base Tunnel between the cantons of Bern and Valais and the Ceneri Base Tunnel (which is under construction and is scheduled to open late 2020) to the south. It bypasses the Gotthardbahn, a winding mountain route opened in 1882 across the Saint-Gotthard Massif, which is now operating at capacity.

When full services begin in December this year, the journey time for travelers between Zurich and Milan will be reduced by an hour to two hours and 40 minutes. About 260 freight trains and 65 passenger trains are expected to pass through the tunnel each day in a journey taking as little as 17 minutes.

The tunnel, which cost over USD 12 bn to build, is being financed by value-added and fuel taxes, road charges on heavy vehicles and state loans that are due to be repaid within a decade. According to an analysis by the Credit Suisse, its economic benefits will include the easier movement of goods and increased tourism.

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eisberg - THE SALAD FACTORY

“Fresh cuts consist of nothing but raw materials; consequently, of course, we depend on nature. We accept its unpredictability, but we do our utmost to ensure that erratic nature brings us and our consumers only good surprises,” eisberg Hungary Managing Director Zoltán Gazsi tells Diplomacy&Trade in the company’s 3,000-sqm salad factory in Gyál just outside Budapest where ruling out unpleasant surprises is accomplished by state-of-the-art technology. Producing healthy, ready-made, extra fresh products is a great challenge and a great responsibility. With its modern, healthy and reliable convenience products, eisberg has been able to experience continuous growth, even during the economic crisis, owing to a professional, motivated team and strict quality assurance requirements. “We believe that motivated work is reflected in product output, therefore, as a Managing Director, I regard it as my most important mission to build a team that loves and enjoys their work, and I am proud that even under constant market pressure, we have a good team and great atmosphere,” Gazsi explains the company’s key to success.

The history of the eisberg group started 40 years ago with a Swiss family’s agricultural production plant, which extended its operation to Hungary in 1992. The company took the lead on the fresh cut market here from its inception and has also become a significant player in the field of salad dressings. In 2014, eisberg started cooperation with a professional local producer in the Tokaj region, and introduced a wide range of fruit dressings selection based on natural vinegar

that contains no artificial colorings, no preservatives and no added sugar, meeting all modern, healthy culinary requirements. The Tokaj dressings were awarded several prizes in 2016, such as the Dietetic Product of the Year in Hungary, the Sirha innovation award and World Tour by SIAL in Paris.

Ingredients of salad mixes are grown mostly with open-field cultivation and gentle, nature-friendly methods by eisberg’s contracted suppliers in the spirit of their devoted commitment to sustainability. eisberg solely works with audited producers that are able to guarantee the GMO and pesticide residue free, microbiologically suitable, high quality ingredients. The company puts special emphasis on quality assurance: in addition to the control of suppliers, delivery, production, packaging and retail units are given strict attention, as well. Reliable and predictable quality can only be ensured with a reliable labor force; therefore, eisberg puts great emphasis on employee engagement. In the past few years, availability of proper workforce became an increasing problem. Most analyses point out that around 700,000 workers left the Hungarian

professional business sector, mainly to work in the UK, Austria and Germany. “It shows once again that being employed at a workplace constitutes a mutually agreed contract, a situation in which employees and managers respect and accept each other. It is no longer true that the employer can do whatever he or she wants because there is a chance of not finding a workforce with the necessary skills. However, a good compromise secures a long-term beneficial impact of the operation of the company. We offer more flexible worktime shifts, for instance, colleagues close to retirement age – or are retired already – are offered a flexible work schedule because they may not be able to work a full, eight-hour shift. Young students – often children of our staff – are offered good conditions to join us for the summer period. Salary level, bonus system and cafeteria package are revised

twice yearly. We are using creative ways, like facebook ads, to attract new workers. The importance of automatization is rapidly increasing, but people are still needed to run the machinery. We have increased the internal quality control and training staff, as quality can never be an issue for compromise! We attract young workers as they bring innovative ideas to the company but I believe that the generation of people in their fifties is going to be valued much more on the job market,” he says.

Zoltán Gazsi, who has recently been nominated for the title ‘Manager of the Year’, is very proud of the fact that eisberg Hungary Ltd. has not only managed to stay profitable in this changing economic environment but also succeeded in having employees who are accustom to working at an internationally recognized company and where they are appreciated. One not often hears about amenities that eisberg workers have access to,

like psychologists helping them if they have problems not only at the workplace but also in their private life, or the company lawyer being at their disposal with advice in any legal problem they may have. Such a working environment and fair wages by Hungarian standards are important but not sufficient to ensure the workforce that the company needs in an area close to Budapest, full of logistic centers and other production firms. There are staff living nearby the plant but some people commute by bus from as far as 150 kilometers and a few of them – and this is a new source of workforce for eisberg – from Sub-Carpathia, a region in Ukraine bordering Hungary. As of this spring, the eisberg group was purchased by one of the leading processors of meat and convenience products in Europe, the Bell Group.

Zoltán Gazsi says the Swiss owners of eisberg realized that such a move would serve the long-term survival of the group if it joined a corporate identity with large international background. It was also important that the Bell Group is also based in Switzerland, therefore, the already established system of Swiss relations is maintained, the Swiss prudence, Swiss business morale and the well-earned trust in Swiss investors gave confidence to owners of eisberg that the company would continue to be in good hands. The Managing Director points out that he really appreciates ties with the Swiss Embassy, Swiss organizations (like SwissCham) and other Swiss companies in Hungary. Therefore, eisberg was happy to be the starting point of the ‘Grand Tour of Switzerland in Hungary’ a project conceived by Ambassador Paroz.

His direct, sympathetic personality, Zoltán Gazsi says, has greatly contributed to cherishing the image of Switzerland in Hungary – as did the ‘Grand Tour’ to further improving the system of relations between Swiss companies in Hungary.

A SOCIALLY RESPONSIBLE COMPANY

eisberg Hungary has been supporting the Institute for the Blind and Visually Impaired for several years. Health days have been organized with vegetable carving, salad lunches and various programs in several kindergartens and schools. The company is taking the message of healthy nutrition to 1,300 kindergartens through the ‘Think Healthy’ Program.

eisberg is holding presentations at different places with the main objective of making young people love work: working is good, you just need to find the right, motivating job. “They have to look for their own path where skills and challenges will be in balance and they can develop in proportion with the challenges doing more and more complex jobs with joy,” Zoltán Gazsi says.

“We support an important new project for the Neonatal Preterm Infant Care Unit of the Honvéd Hospital and the summer program for overweight children in the Bethesda Hospital – both in Budapest. We also participate in the GYERE (‘Children’s Health Program’) International Program organized by the Hungarian Dietetic Association,” he adds. eisberg has been the sponsor of the National Mobile Screening Unit for 4 years, raising awareness about the importance of prevention. The Managing Director highlights that eisberg Hungary Ltd. has also become a member of the Business Council for Sustainable Development, “where we are actively present and in 2015, I was appointed to be a member of the executive board. We work on several topics in the working groups and my personal favorite is the ‘Leaders of the Future’ program where I have already delegated three colleagues.” eisberg Hungary is the supporter of all events at the Department of Affective Psychology at Eötvös Lóránd University in Budapest, in addition to sponsoring conferences and causes like the Walk for the Quality of Birth/Giving Birth Program.

“QUALITY CAN NEVER BE AN ISSUE FOR COMPROMISE”

▶ CUSTOMER SERVICE TEAM

▶ RAW MATERIAL STORAGE WAREHOUSE

▶ MANA IN DIRE TOR - O T N A SI

▶ SALAD PROCESSING LINE

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SIKA – the INVISIBLE POWER

As the world marvels at the latest great achievement of the construction industry, the recently opened 57-kilometer long Gotthard Base Tunnel, most people do not know that there is a kind of ‘invisible power’ behind this architectural wonder – something that was born a hundred years before, the same thing that made it possible to use electric-powered trains in the ‘original’ Gotthard tunnel as well as in the Gotthard Base Tunnel: Sika’s waterproofing technology. Its inventor, Kaspar Winkler, originally from Austria, set up a business (Kaspar Winkler & Co) in Switzerland in 1910, marketing a quick-setting waterproofing admixture he called ‘Sika 1’. Since then, Sika has developed into a successful global company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing and protecting in the building sector and the motor vehicle industry. The parent company, Sika AG (headquartered in Baar, Zug, Switzerland) has fully owned subsidiaries in 94 countries.

One of these, Sika Hungária Ltd., is headed by General Manager Johanna Kruchina (in fact, she was the first woman appointed to such a position within Sika AG). She explains to Diplomacy & Trade that technologies developed by Winkler’s company have long been used in Hungary but it was not until the middle of the 1990s that the Hungarian subsidiary was set up. She says this delay (compared to other Western companies who appeared here right after the fall of the Iron Curtain) was due to the traditional Swiss prudence and thorough consideration: initially, only a representative office was opened here (controlled by Sika Austria).

The General Manager, a civil engineer herself, highlights that this ‘invisible power’, the waterproofing technology, has remained an important part of Sika’s business. In the meantime, Sika experts turned towards innovation and developed new products for all areas of architectural chemistry. This is how the single-ply plastic membrane insulation was created, for instance. In the 1960s, Sika developed a one component polyurethane elastic sealant (Sikaflex). This led to a new business division: ‘Sika Industry’ that has developed and manufactured products for various industries. Thus, the ‘invisible power’ is actually in many places where most people would not suspect a Sika product: for instance, when you travel in a car – with Sika products

used to adhesive different components together. Accordingly, most of all the vehicle manufacturing firms in Hungary are Sika clients.

It is known that Sika representatives have been present in Hungary as early as the 1930s and would-be engineers were able to learn about Sika’s products during their studies, products that emitted trust. As for major projects in Hungary using Sika technology, Johanna Kruchina mentions the barrage built at Tiszalök on the River Tisza in the 1950s when Sika waterbar joints were reportedly used for the massive concrete structure. Another example is the bus manufacturer Ikarus that introduced, in the 1980s, Sika’s elastic bonding technology, while possibly the best known is the waterproofing of the tunnels on the M6 motorway in south-central Hungary. The Givaudan flavor production plant in Makó was inaugurated almost four years ago. Sika’s contribution to this green-field project included the pre-fabricated concrete elements (basically, the reinforced concrete structure), the

roof and the industrial floor. “It was a successful cooperation with the builders, irrespective of the fact that Givaudan is also a Swiss firm,” she assures. “Contracts like this are not handed out as gifts, you have to work hard to establish yourself on the market and to become a player that has to be reckoned with.”

The word ‘trust’ comes up several times in connection with Sika. The General Manager says the company is dedicated to providing and maintaining highest quality standards with its products and services. The commitment to innovation enables Sika to not only satisfy current demands, but also anticipate its partners’ future expectations. All Sika solutions are designed with the customers’ success in mind and to build long lasting and mutually beneficial relationships rather than focus on short-term business. This attitude is emphasized by the corporate claim: ‘Building Trust’. People at Sika Hungária work hard to maintain this trust associated with Sika’s name. “We have to be prudent,

we always have to provide the right solution – we must not break this trust that the company has built up over decades,” she stresses, also noting that “our competitors constantly motivate us to come up with new solutions and create added value, something extra.”

Another principle followed by Sika’s management and employees is the courage for innovation. Sika’s success and reputation is based on its long lasting tradition of innovation. Accordingly, the core of the business is innovation management and focus on developing quality products and the best solutions for customers. Sika has institutionalized the Sika Product Creation Process with its strong focus on consistently developing new products, systems and solutions for bonding, sealing, reinforcing, strengthening and protecting in the defined target markets. As it has been established technology centers and laboratories across the globe, the company both profits from a worldwide network of partners, suppliers and scientists and also fulfills its promise to be close to its customers.

Sustainability is a key component of the company's innovation drive. For buildings as well as for industrial applications, Sika aims to enhance durability and improve both energy and material efficiency. The company makes every effort to contribute to reducing resource consumption both within the company and for its partners who trust in Sika's products.

As an example, the Sika Hungária General Manager mentions the worldwide trend of more and more people concentrating in cities. “This requires the creation of higher structures with smaller footprint and Sika is doing its best to contribute to

easing this problem, making the urban environment more livable with green roofs or green terraces – complex issues that call for complex solutions!”

At Sika the appreciation of the workforce is of great importance. As Johanna Kruchina puts it, the wellbeing and health of the employees and partners is a prerequisite to Sika's success. The working climate is one of aspiration and inspiration. The company empowers its people to develop and propose new ideas and delegates decisions and responsibilities to the level of competence. Creating a safe work environment is always a top priority. All this is appreciated by the staff. At Sika Hungária, more than half of the 40 employees have been with the company for over a decade. Johanna Kruchina, herself, has been the General Manager for over two decades. Sika enhances social and economic progress in all countries and communities it operates in. Through the Romuald Burkard Foundation, Sika is actively supporting social projects in local communities. As a member of the UN Global Compact, the company is committed to global sustainable development. Sika Hungária also does its fair share in this respect. Children in need of special medical help receive support from the company as do the SOS Children’s Villages. The General Manager points out another important area of support, that is, sports: “It helps us to maintain our energy level.” The company has been supporting professional handball, most recently windsurfing but employees also receive help to engage in sports their leisure time. “It’s the combination of all these important values and principles that makes Sika – the Invisible Power – so powerful,” she concludes.

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MAKÓ SHOWS the WAY

DELIGHTING CONSUMERS WITH INNOVATIVE TASTE AND SCENT CREATIONS

consumer preferences and our unique capabilities to provide flavor solutions that have the ‘power to surprise’ our customers,” Mihály Karkas says. He adds that “also important for the company is to continue to drive excellence and a superior customer experience in the delivery of its products, services and processes. It is in this context that we should see our efforts in the Makó plant that aim to deliver high quality products and services that are cost-effective, safe and sustainable.” deliver high quality products and services that are cost-effective, safe and sustainable.”

A valued member of the local community

GIVAUDAN RECEIVES UNIVERSITY AWARD

In May this year, Givaudan Hungary Ltd. received the Alma Mater Prize of the University of Szeged (SZTE) awarded by the university’s alumni organization to its best cooperating partners. Mihály Karkas notes that “we submitted to the university an application that presents in what way it can help – and cooperate with – the University of Szeged in accomplishing its goals, evidently with the intention that our company’s aims are also met. We attempt to ensure the supply of workforce (including specialists and managers) for the plant through several channels. Therefore, we accept university students for summer jobs (in which they acquire skills); we participate in the work of the ‘Pro Talentis’ foundation (also set up by the University of Szeged); and we have established scholarships for SZTE students of excellent results.”

“Swiss-Hungarian relations were given a real boost with the establishment of Givaudan’s flavor production facility in Makó, southeast Hungary in October 2012. The green-field investment, worth CHF 170 million (HUF 43bn), the largest investment in the company’s history, is a best-in-class, centralized savory flavors production plant,” the Head of Operations at the plant, Mihály Karkas points out to Diplomacy&Trade. He adds that Givaudan had not had many ties with Hungary before but the creation of the plant was preceded by a very thorough selection process (examining 21 countries) reflecting Swiss meticulousness. “It was during this process – and since the opening of the plant, as well – that our Swiss colleagues got to know Hungary and the Hungarians and have gathered a lot of positive experience. It has been a ‘long journey’ for us, Hungarians, also, since the beginning of the project and we got to the point that the Makó plant is now a real flagship in Givaudan’s operation network. This is the company’s largest plant in Europe and in fact, the largest of our flavor division plants in the world,” he adds. The 50,000-squaremeter facility, operating in three shifts throughout the year, employs a staff of 400 people and has a total capacity of 40,000 tons.

Givaudan Makó offers its products to global, regional and local food, beverage and consumer goods markets and can even meet religious

food requirements (kosher, halal).

The end products are exported to 90 countries all over the world to about 900 customers, including the world’s top 150 food and consumer goods companies mainly in Western Europe but also in the countries of the former Soviet Union and Turkey, and in the whole EMEA (Europe, Middle East, Africa) region. In the flavor and fragrance area, Givaudan is the world business-to-business market leader. “Basically, a Givaudan component is present in every fourth product you find on the foodstuff and personal care shelves in your local

supermarket. We are proud to touch the lives of millions of consumers every day,” Mihály Karkas points out. Annually, Givaudan’s Hungarian plant processes almost 4,000 types of raw materials and semi-finished products in order to manufacture 3,000-3,500 different kinds of compositions of powder products altogether. It has 600-650 suppliers – over 25 of them from Hungary. “While at the beginning, it was us who had to learn the tricks of trade from others with Givaudan experience, nowadays, we are receiving colleagues here from all over the world to learn and understand work processes and production solutions, technical background that we have developed in Makó,” he highlights proudly.

Responsible growth and shared success

Givaudan’s 2020 strategy is grounded on its commitment to responsible and sustainable growth. In a world of fastpaced change, Givaudan recognizes the need for strong partnerships to help deliver innovative solutions for customers and responsible growth in the long term.

Delighting consumers with innovative taste and scent creations is central to Givaudan’s business. Consumer preferences are not only rapidly evolving, but are also very specific to each region. “Givaudan’s focus is to create additional value by leveraging our knowledge of local, regional and global markets and

Mihály Karkas stresses that sustainable development is very important for the company. “We have a central program at Givaudan to reduce the eco-footprint of our operations. Here, in Makó, for instance, we have managed to reduce our water consumption by over 25% in the past years. We continuously improve our operational performance and – in parallel – reduce our energy consumption. We also pay attention to the selective collection of waste.” Karkas, an enthusiastic footballer in his ‘non-Givaudan’ life, studied in Szeged and Budapest and graduated as a qualified food engineer and later as an economist. “We think it is important that our company is not only present here in the local industrial park but also as an active participant in public life in Makó and as a major contributor to it. We are supporting foundations and other organizations locally (in the town and Csongrád County) through several channels. One of the purposes is to continuously build up the Givaudan brand in our environment. This plant here in Makó is a production unit. At the same time, we would like to build and strengthen the Givaudan brand that creates in people’s minds the image of a very good, reliable and high standard employer. It is a very important part of our business strategy because if people living in the proximity of the plant (thus, being potential employees for us) associate these values with Givaudan, it will be easier for us to find new workforce. These ties with civil organizations and our appearance at different forums and fairs as well as the support we provide for foundations also have this non-secretive purpose that we make known as much as possible the Givaudan name as that of a serious Swiss company.”

On the occasion of the presentation of the recognition, Mihály Karkas told the university’s Alma Mater website that “it was a very pleasant surprise for us that we won this prestigious award. Of course, we did not start cooperating with the university in order to win this recognition. We believe that SZTE is a knowledge center, a talent training place whose graduate students are leaving it with the appropriate qualities required for the high quality work that we expect from ourselves within the company, and what our customers and partners expect from us, too.”

He also talked about other aspects of cooperation between Givaudan and the University of Szeged. “I think that the university is a place of education which – in addition to passing on an enormous amount of information –, is supposed to build up in the students the ability to receive and synthesize that information. If this effort is successful, the new graduates leave the university with the ability to face new and different kind of challenges in their career and cope with them well.”

Mihály Karkas is of the view that the research and development cooperation opened an important channel between the university and Givaudan Hungary, and it is an appropriate means for the higher education institutions to see what is happening around them in business life, what demands, challenges and innovative opportunities exist. “At the same time, our company gets an insight into what work is going on at the university and gets to know the potentials there. Research and development cooperation is a good bridge between the university and the economic actors, notably Givaudan Hungary Ltd. We have explored and identified several options together: the first steps opened environmental topics. We work together to solve industrial problems.”

We build your train with passion.

swiss focus

Canton of Zurich in the Air

THE

On July 15, Budapest Airport received a very special guest: the world’s first Bombardier CS100 passenger plane landed here as a scheduled flight operated by Swiss International Air Lines (SWISS) between Zurich and the Hungarian capital. The LX 2258/59 Zurich-Budapest-Zurich flight landed at 19:05 hours and, in the evening, she returned to the largest Swiss city. Swiss International Air Lines presented its first Bombardier C Series aircraft – a CS100 – at Zurich Airport less than two weeks before the flight to Budapest: on July 6. At that time, the aircraft also received its new name: Canton of Zurich. The innovative short- and medium-haul twinjet sets new benchmarks in terms of its in-flight comfort, its operating economics and its environmental credentials. SWISS became the world’s first operator of the totally newlydeveloped Bombardier C Series when its first CS100 entered commercial service on July 15. Approximately one year ago the manufacturer delivered a provisional Bombardier C Series aircraft to SWISS. That plane featured a nonSWISS cabin interior and only conditional SWISS livery. The first CS100 aircraft touched down at Budapest Airport was on March 10 this year. It was a 'route-proofing' flight without passengers. Such test flights serve

the purpose of making airports to get to know the new aircraft and also give the opportunity for airline staff to get acquainted with a new type of aircraft during flight.

New name: Canton of Zurich

SWISS has named its first Bombardier C Series aircraft Canton of Zurich – the canton whose residents will benefit most from its ‘whisperjet’ performance. The aircraft was co-named by Canton Zurich Government Councillor Carmen Walker Späh and Swiss rapper BLIGG, who was born and lives in the canton. Following the naming, invitees were able to experience HB-JBA aloft in a scenic flight around the canton and the Swiss Alps.

“I am hugely proud that we will now be the first operator of the most advanced and innovative aircraft in its class in the world,” SWISS’s Chief Executive Officer, Thomas Klühr pointed out.

“Our new Bombardier CS100 is extremely efficient and only half as loud as comparable aircraft types. For our customers, it ushers in a new era in in-flight comfort. And the fact that our new C Series will also enable us to create some 150 new jobs in our cabin crew corps makes me even prouder still,” he added.

Fred Cromer, the President of Bombardier’s Commercial Aircraft division, had words of

particular praise for the good collaboration in the aircraft’s development. “SWISS played a large part in developing this product,” he explained. “And with our specialists, we’ve been able to accommodate many of SWISS’s special requests.” Canton Zurich Government Councilor and Head of Economic Affairs Carmen Walker Späh and Stephan Widrig, CEO of Flughafen Zürich AG, both underlined the importance of the investment of CHF billions in state-of-the-art customer friendly, low-noise emission aircraft, both for the airport and its local residents and for Zurich as a whole and its locational appeal.

A technological milestone in energy efficiency terms

SWISS is the launching customer and first operator of Bombardier’s totally newly developed short- and medium-haul C Series aircraft. The first of its 30 jets on order – which are a combination of CS100s and the larger CS300 – will gradually replace the present SWISS Avro RJ100 fleet between now and mid2017. Following that, the subsequent C Series deliveries will partly replace other aircraft types and partly permit modest fleet growth. In SWISS configuration, the Bombardier CS100 will seat 125 passengers. With its

advanced engine technology, systems and construction materials, the new twinjet sets new benchmarks in comfort, economic and ecological terms. It is 10-15 decibels quieter than comparable aircraft types; and both its fuel consumption and its carbon dioxide emissions have been reduced by up to 25%. The cabin interior features large and closelyspaced windows that let in more daylight and give the cabin a very spacious feel. The innovative seat from manufacturer ZIM boasts a special design that includes a single central table support, providing optimum comfort and more legroom with the same seat pitch. The overhead bins offer ample room for passengers’ carry-on baggage. And the state-of-the-art cockpit and the ergonomically conceived galley, which were both developed in close collaboration between Bombardier and SWISS, have been specifically designed to meet crew wishes and needs.

First commercial flight

The new Bombardier CS100 HB-JBA performed its first SWISS commercial flight on Friday, July 15: LX 638 from Zurich to Paris Charles de Gaulle, departing at 12:30. The innovative new aircraft’s entry into service was the second SWISS fleet milestone this year, following February’s successful service entry of the Boeing 777-300ER. In the following days after this flight to Paris, SWISS also included Manchester, Prague and Budapest among the first destinations for its new CS100 aircraft. The SWISS C Series route network will be further expanded at the end of August with the addition of Warsaw and Brussels. Nice, Stuttgart, Hanover, Milan, Florence and Bucharest will follow in September. Further destinations will be switched to the new twinjet from their present Avro RJ100 operation with each CS100 delivery. The Zurich-London City route is expected to switch to C Series operation in the first quarter of 2017. The incorporation of the brand new CS100 aircraft is part of SWISS’s strategy to continuously expand its worldwide flights offer. SWISS invests CHF billions in advanced aircraft, attractive destinations and further product enhancements over the next few years as part of its ‘Next-Generation Airline of Switzerland’ strategy. With the new Boeing 777-300ER and the Bombardier C Series, SWISS has one of the youngest aircraft fleets in Europe.

Swiss International Air Lines

SWISS is Switzerland´s national airline, serving 102 destinations in 46 countries from Zurich and Geneva and carrying more than 16 million passengers a year. The fleet comprises 95 aircraft.

As ‘The Airline of Switzerland’, SWISS embodies the country´s traditional values, and is committed to delivering the highest product and service quality. SWISS is committed on various levels to the careful use of resources, and behaving responsibly towards the environment is a part of its corporate culture. With its workforce of 8,564 personnel, SWISS generated total operating income of CHF 5 billion in 2015. As part of the Lufthansa Group and a member of Star Alliance, SWISS remains faithful to its mission of providing quality air services that link Switzerland with Europe and the world.

WORLD’S FIRST BOMBARDIER CS100 PRESENTED BY SWISS

It’s time for new records.

Tissot PRC 200

Tour de France Special Edition 2016.

LIKE THE RACERS, IT IS p RECISE, r OBUST AND c L ASSIC. THE WATCH HAS A WATER RESISTANCE UP TO 20 BAR ( 200 M / 660 FT) AND THE T OUR DE F RANCE’S O FFICIA L LOGO ENGRAVED ON THE CASEBACK.

indonesia

RAS MUHAMAD TO PLAY AT SZIGET FESTIVAL

On August 14, Indonesian reggae musician Ras Muhamad will perform at the renowned Hungarian summer festival, Sziget.

A SPEEDY CAREER

23-year-old Rio Haryanto started his racing career in the national and international Gokart arena when he was only six years old. He joined – at the mere age of fifteen – the Formula Asia 2.0 racing competition and became a champion. A year later, he achieved another great accomplishment by taking the first place at the Formula BMW Pacific 2009 racing competition. In 2010, at the age of seventeen, he qualified for the Formula 1 super license from Virgin F1 racing in a Formula One test drive in Abu Dhabi. Aiming to race in Formula One, with support from several sponsors, Rio left Asia to step up to the more competitive European racing scene full-time in 2010 by joining the Manor Racing team for the Formula One-supporting GP3 Series. He scored consecutive victories in the GP3 Europe Series and in Monza, Italy, he earned the award for the ‘Best Win of Season GP3 series 2011’. In addition to his GP3 duties, Haryanto also drove for the DAMS team in the Auto GP series, competing in all but one round of the championship which clashed with the GP3 schedule. In June 2013, he climbed to the podium as the runner-up in the GP2 Sprint Race Series 5 at the Silverstone circuit in England. The importantance of a successful run in the GP2 Series is that it is considered by many racers as the initial step to reach Formula One.

In February 2016, Rio Haryanto was confirmed as a driver of Manor Racing for the 2016 Formula One season. He made his debut at the 2016 Australian Grand Prix in March 2016 as Indonesia’s first Formula One pilot. “Compared to other tracks in the Formula One calendar, the Hungaroring is a very technical circuit. There is just basically one straight, otherwise, there is really no space to pass with all those turns on the track, and it is a high downforce circuit which makes it physically demanding,” Haryanto explained – a view based on personal experience as he has been competing at the Hungaroring in various categories since 2010.

“For the whole of the season, I really want to keep on learning as this is my first year in the top category and I hope I can score a point or two. I believe that I will have opportunities for that the rest of the season, just like my German teammate, Pascal Wehrlein did at the Austrian Grand Prix. I am really looking forward to that,” he added. He did not manage to do that at the Hungaroring this time but he still has ten more races in which to do so this year.

ALWAYS BELIEVE IN YOUR DREAM!

This year, the Embassy of the Republic of Indonesia in Hungary has established a partnership with Sziget Festival. With this, the Indonesian Embassy became one of the official partners of Sziget, along with other prestigious institutions like the Embassy of Argentina, the French Institute and the Polish Institute. The Embassy believes that Ras Muhamad`s unique live concert will be a good opportunity to promote Indonesian culture and for visitors of the festival to get to know Indonesia better.

standpoint. Salam was released by Germany’s Oneness Records. Ras Muhamad’s

Ras Muhamad, born as Muhamad Egar in 1982 in Indonesia was educated in New York City for over twelve years, where he first came in contact with Jamaican music and Rastafarian culture. Upon his return from the United States, Ras aspired to re-introduce Indonesia on a global scale, to put Indonesia back “on the map”, specifically in the music, arts and talents that the country has to offer to the world. Ras Muhamad is also a radio programmer, producer and host of the Jamaican Music program of Mustang FM Radio, as well as writer of a book entitled “Negeri Pelangi” (Rainbow Country) which is about his journey to With the release of 2007’s “Reggae Ambassador”, Ras Muhamad opened a new frontier by premiering and introducing the 1st Dancehall Reggae sound to the Southeast Asian music market. From that year on, Ras has been recognized as a representative and ambassador for his country’s Reggae. It is his mission to accomplish and establish international relationships between Reggae Artists worldwide. Things are shaping up for Ras Muhamad as his awards and accolades have been pouring in since his first Indonesian debut album. In 2008, he was chosen by Rolling Stone Indonesia as the Best New Reggae Artist. Since 2003, Ras Muhamad has released five studio albums (Declaration of Truth – 2003, Reggae Ambassador – 2007, Next Chapter – 2009, Berjaya – 2012, Salam – 2014). His latest album, Salam, offers Asia’s first international Reggae album that is “Pure Roots Reggae”, although Dancehall and HipHop fans alike can truly relate to this Album musically. Thematically, even though most of the lyrics on the album are in English, Ras always finds a way to deliver his Indonesian standpoint. Salam was released by Germany’s Oneness Records. Ras Muhamad’s albums have led him to various international stages stretching out from Asia through Africa, Europe and America. Besides touring in Indonesia, he has played in Singapore, Bangkok, Oslo, New York, San Jose and many more places. In 2015, the Jamaican Tourism Board invited him to perform at the Earth Hour Reggae Fest in Kingston. In Summer 2016, Ras is coming to Europe for a short tour. In Hungary, he will introduce Indonesian reggae at the well-known Sziget Festival.

Ras Muhammad`s live concert will start at 7:30 PM on the Afro-Latin stage.

INDONESIA’S FIRST FORMULA ONE PILOT IN BUDAPEST

Young talent Rio Haryanto, Indonesia’s first Formula One pilot was among the contestants at the 31st Hungarian Grand Prix on the Hungaroring circuit just east of Budapest this July as a member of Manor Racing team.

Diplomacy&Trade spoke – in an exclusive interview – with Rio Haryanto four days before the Hungarian GP at an event organized by the Indonesian Embassy in Budapest. Every time he goes back to Indonesia, Rio finds time to visit an orphanage in Solo where he shares his stories and adventures with the kids, just like a big brother to his little siblings. He hopes to give motivation to the young generations of Indonesians, and fulfill his dream to bring Indonesia to the world of Formula One racing competition. “In Indonesia nowadays, there is a lot of interest in motor sports, kids at early age already starting to learn how drive a cart and then move to compete in cart races. What I can give them is advice that you always try to work hard for your goals and always believe in your dream.”

When he is not busy competing in a race, Rio stays in Singapore. There, he studies Business Management at FTMSGLobal Academy (Singapore). Every day, even when he is not competing, Rio, who idolizes Ayrton Senna, diligently works on his stamina and physical condition in the morning and evening by swimming, jogging, or working out in the gym for about four hours. Besides racing, he also hopes to take part in his father’s family business.

Regarding the fact that he is representing his country in Hungary and all over the world, he said that “it has been a real pleasure. Formula One racing is a sport seen at the track and in front of the television all over the world. In each country where I race, I always receive a very warm welcome from the Indonesian people living there. The support has been really overwhelming in and outside Indonesia. I hope that with my good performance in the years to come, I can get the Indonesian flag fly high.”

INDONESIAN REGGAE AMBASSADOR IN HUNGARY

SERVIER: LIFE THROUGH DISCOVERY

Servier Hungaria has been operating in Hungary for over two decades. What brought Servier into this country 22 years ago and what has kept it here ever since? The founder of the Group, Dr. Jaques Servier has built the number one independent French pharmaceutical group of the world - currently employing 21 thousand people - from a small group of 9 employees in 1954. One of the first patents of the company were invented by Dr. László Beregi, a Hungarian scientist, who had been working as head of the chemical department until the 80's. The affection for Hungarians goes back to this story. The high level of professional knowledge of Hungarian researchers is outstanding and indispensable, this is why Servier has constantly been increasing its investments in Hungary in the past years.

Servier is one of the very few international pharmaceutical companies, having the whole range of medicines development, molecular and clinical research, present in Hungary. Within the Group Servier it is only France and Hungary - among the 148 countries Servier is present worldwidehaving this strategic position.

Research and development is a core activity of your operations worldwide and it is true for the Group’s Hungarian branch, as well. How much do you spend on R&D activity and how much can/do Hungarian researchers contribute to new discoveries?

Servier is special for being a research foundation. 25% of our turnover is reinvested directly into research. Our guiding principle is, that our research is contributing to the progress of medicine. Research to us is at least as vital as

france

being an industry. Servier operates a Research Institute of Medicinal Chemistry in Budapest. Research projects, which have been carried out here since the establishment, are only present in France too, within the group. We are proud for having members of the team, Hungarians, coming back from foreign countries, even from teams of Nobel Prize winner researchers.

We also have an International Centre for Therapeutic Research here in Budapest. It is responsible for clinical development and 500 Hungarian healthcare professionals are involved each year in clinical clinical studies.

This June, you had an important announcement. What is this discovery about and how much Hungarian brain power was used in it?

With our fundamental research facility for medical chemistry in Óbuda (SRIMC) our leading Hungarian researchers were already successful in detecting promising molecules in the field of oncology, that have the perspective to possibly become a candidate for future oncology medicines in the world. But they are now in a very early clinical development stage. However, two medicines in Ocology would be available for patients by the end of this year which will open another new promosing field for Servier in Hungary.

What are the focus points of Servier’s corporate social responsibility policy?

Being socially responsible for Servier is

an organic part of our core business. Our guiding principle is to invent and develop innovative medicines to help doctors to relieve and to cure their patients.

We are supporting screening programs, health literacy, medical education, scientific conferences and working closely together with healthcare organizations, leading medical institutes and medical journals. While knowing that our population is aging constantly and that ancompying diseases in the elderly will be a big challenge in our future , the development of new medicines is most probably a important contribution, for the benefit of the society.

Dr. Jan Frederic Kesselhut has been the Managing Director of Servier Hungaria since the autumn of last year. How do you like Hungary and what do you think about the business environment here?

From personal point of view, as a German, I already had good memories of this nice country from the past decades.

From professional point of view Hungary has special values: It is special for its pharmaceutical industry with a heritage of more than 100 years. It is also famous for its medical education, and highly educated healthcare professionals. Our ambition is to contribute to these values with our innovations for the benefit of the patients. Servier Hungária has signed a strategic partnership agreement with the Hungarian government two years ago which is also underlining the importance of our long-term co-operation.

france

AUCHAN to LAUNCH E-COMMERCE

THE COMPANY MAKES AVAILABLE EUR 170,000 FOR NGOS

During its operation that could be characterized by long-term planning and responsible actions over the past 18 years, the hypermarket chain Auchan Hungary has made investments in this country in the value of approximately HUF 200 billion. In the 2015 financial year, it spent some HUF 3.5 billion in investments by opening new petrol stations in Debrecen and Szigetszentmiklós, increasing the number of petrol stations located at Auchan department stores in the country to 18.

Continuous development

The hypermarket chain has created – in all of its 19 stores in Hungary – a separate area, a place where customers can find items meeting special dietary needs: lactose, gluten and sugar free and organic products. The company is also planning the development of healthy and international cuisine assortments, so that it is able to provide an even wider selection to its customers.

The company is committed to Hungarian suppliers: in 2015, 86% of its suppliers were Hungarian. As a result, the store chain introduced nearly 800 new domesticdeveloped private label products last year so that customers in Hungary can currently choose from around 5,000 private label products, of which nearly 2,000 are food items. The company has also involved its customers in developing its own private label products; customers can taste products in the TestWorld area created in the hypermarket in Budaörs.

2015 FINANCIAL YEAR CONCLUDED WITH POSITIVE BALANCE

Auchan Hungary had a turnover of HUF 337.6 billion (nearly EUR 1.1 bn) in its 2015 financial year, calculated according to the Hungarian accounting regulations. This turnover was realized by the company's 19 stores and the corresponding 18 petrol stations. In the past year, these hypermarkets’ EBITDA (earnings before interest, taxes, depreciation and amortization) figure continued to rise to HUF 10.1 billion, which represents a 19% increase. Accordingly, Auchan Hungary became a profitable venture in the 2015 fiscal year and its balance sheet profit rose to HUF 2.2 billion. The company says this year's focus is on customer relations and strengthening the company's image by renewing the image and the introduction of e-commerce services.

The closure of the 2015 financial year has shown that Auchan Hungary has been self-financing for the third year in terms of investment, which means that it does not take a bank loan or use a group-level financing for investments or its operation. The company has reduced operating costs by 0.7% (a tendency continued in the past few years) and – as of October 1, 2015 – it implemented a comprehensive wage increase in jobs in its stores, investing HUF 1.2 billion in one year.

In 2015, Auchan placed great emphasis on the training of staff and the employment of workers with altered working capacity.

As a result, the company received – for another two years –, the Disability-Friendly Workplace award established by the Salva Vita Foundation. The number of employees with altered work capacity has exceeded 360, and Auchan plans to raise their proportion above 6% in 2016, setting an example for other Hungarian companies.

"We attach great importance on serving our customers in the best possible way with the selections we offer, with our services and renewed shopping areas and by giving quick responses to their needs as they arise. Accordingly, we launch our e-commerce activities in the fall of 2016, by which we make shopping even easier and more convenient. As our company became profitable last year, we do everything we can in 2016 to further improve our financial achievements, so that we can present positive results to the Auchan family shareholders as well as to our employees, who are also the company's shareholders and their number increases year by year,” the CEO of Auchan Hungary, Dominique Ducoux said.

“Our focus in the year 2016 is also on the renewal, changing the company's image and introducing a new corporate identity. In line with our new corporate trend, we wish to make memorable, through our products, both the shopping experience and the moments our customers spend in the warmth of their home. All this reflects our new slogan: Large selection of adventure. Auchan" he added.

For the young in need

The hypermarket chain’s social responsibility policy focuses on providing support for disabled and disadvantaged young people. The ‘Auchan Youth Foundation’ is celebrating its 20th anniversary in 2016 and on this occasion, it launched its call for projects this March for NGOs. Within the framework of the ‘Together for Youth’ grant program, 20 applicants have the chance to win a total support of EUR 170,000. The program will provide assistance for the realization of projects particularly

useful for the society in the vicinity of Auchan stores, helping young people aged 5-25 living in difficult situations.

Project proposals are to be particularly useful for the society or be of an experimental nature – proposals that, independently of political and religious views, are of paramount importance for local communities, and create sustainable and lasting value in cooperation with Auchan stores. Such values include reading, writing and numeracy education, social inclusion, environmental awareness and health promotion. One of the Hungarian project proposals, selected by an international jury, will have the opportunity to participate in a solemn awards ceremony held in Paris on November 17, 2016,

and will have the chance to be weighed in the international arena where it can win additional resources to implement its project.

The Auchan Youth Foundation was established by the Auchan Group in 1996. Since 2011, it has announced tenders in all countries where Auchan is present with its department stores. One particular example from Hungary was the creation of the first integrated playground in Budapest last year (with MagikMe’s initiative being supported by the Foundation), while also in 2015, the employees of the Auchan supermarket in the southeastern city of Szeged personally took part in the modernization of the city’s Sound Library.

▶ DOMINIQUE DUCOUX

france

THE CUSTOMER is FIRST

AIR FRANCE AND KLM MOVE UP IN AIRLINE WORLD RANKINGS

The Air France-KLM Group substantially improved its financial situation in the first semester of this year. “We can be truly proud of the strong improvement (EUR 286 million) of our operational results. We have being working very hard both on revenue generation and cost reduction at our group. On the revenue part, our commercial efforts to gain market share and customer proximity have been successful. We have introduced new products, invested in new aircrafts and constantly reviewed our network to offer customers new destinations. On the costs side, the improvement was driven by internal efforts and other factors, most importantly lower fuel prices that resulted in reduced cost per unit. Last but not least, we have also improved our net debt position. All in all, it is clear that our efforts and investments are well worth it and, in light of the competitive environment, we are encouraged to keep going in this positive direction,”

Air France-KLM Country Manager for Hungary, Dror Harel explains to Diplomacy&Trade.

This year’s Skytrax list shows both Air France and KLM moving up in the ranks of the Top100 airlines, with Air France winning in two categories (see box). Harel says “it is even more important that we have advanced substantially in the rankings, with Air France now being 14th and KLM 24th on the list of the top 100 airlines of the world, which is an amazing result. It is basically an external confirmation of all our efforts to constantly improve our services. This is our commitment to the customer and – at the same time – a recognition of the hard work of all our staff who make it happen and do their best to achieve such global standards.”

Regarding the services offered, he points out that an important element is the roll out of the new cabins. “In the second half of 2014, we started to roll out the new Air France’s first class ‘La Première’ cabin, which is a ‘crème-de-la-crème’ product in the industry. Before describing the product, he mentions the exclusive partnership with WiJet, with which you can fly from Budapest to Charles De Gaulle airport in Paris on a private jet under the Air France brand.”

The cabin is composed of private suites separated by thick curtains and equipped with wide seats that can be transformed into a bed with a futon mattress, a large pillow and a fluffy duvet by Sofitel MyBed. “Also at the disposal of our passengers are 24-inch HD TVs, Michelin-starred menus, flowers and windows that automatically adjust the shutters according to the angle of the light. We have four of these cabins in each of the Boeing-777s we operate. Of course, the use of the ‘La Première’ lounge at Charles De Gaulle airport and the amazing accompanying services are also included. You have the same standard at Los Angeles airport where you can be assured of VIP treatment at your arrival. So, especially for the business traveler, it is the service that we can stand out with and – as shown by feedback from our customers – Air France is very successful in this respect!”

Another of the many elements he mentions is the new business class full flat seats at Air France and KLM. On KLM’s new World Business Class you can experience a 2.07 meters long seat (‘the longest in the air’) with 180-degree recline. Further comfort is ensured by elements like double faced pillows and additional storage place. This new product is the

first one in the industry realized by full cooperation between the designer (Hella Jongerius from the Netherlands) and the seat manufacturer.

He also highlights the mobilization of the network to the benefit of the business traveler. One good example is flying from Paris or Amsterdam to China overnight in full comfort and arriving in the morning following an uninterrupted night of sleep. This is as opposed to alternatives where the passenger experiences a night stopover in the middle of the trip.

He proudly mentions that it is the result of innovative ideas like these – besides the comfort during flight and at the airports – that Air France and KLM flights are mostly fully booked. “From Budapest, we are running very high load factors. What is more, we have managed to bring our group to a great historical achievement where we operate altogether eight flights per day between the Hungarian capital, Paris and Amsterdam (with four flights to each city)!”

Regarding the company’s corporate social responsibility policy, Dror Harel stresses that in 2015, Air France-KLM has been listed as the number 1 airline in the Dow Jones sustainability index for the 11th consecutive year! “On top of that, we were rated as the Industry Group Leader in the transport category. This shows that the company is really thinking innovatively of how to make a difference to the environment, to the employees and to the community. The elements include the use of bio fuel (54 Air France flights and 20 KLM flights are running partially on it); the application of electric vehicles in ground handling; KLM business class carpet partly recycled from crew uniforms; substantial reduction in noise and CO2 emission levels, etc. We have invested EUR 14 million in charity (with the main focus on children) and 249 million miles were donated by Flying Blue members to charity. In terms of diversities, 43% of our employees are female and 25% of them are in executive positions. The company is taking every opportunity to do something for the environment and to give back as much as possible to the community.”

MORE SKYTRAX AWARDS FOR AIR FRANCE-KLM

Every year, at the World Airline Awards, the renowned Skytrax awards are a reference in the field of air transport. Air France and KLM’s improved ranking among the world’s top airlines, together with the two awards received by Air France, are the result of a satisfaction survey, carried out online with 19 million customers.

At the 2016 World Airline Awards organized by Skytrax in London this July, Air France-KLM was once again distinguished among the world’s top 100 airlines. In addition to both air carriers moving up in the rankings (Air France ranks 14th, moving up 26 places over the past three years; while KLM ranks 24th, moving up 13 places also over the past three years), Air France received two awards. The restaurant in its La Première lounge and menu signed by Chef Alain Ducasse at Paris-Charles de Gaulle won the award for ‘Best First Class Lounge Dining’. The cosmetic kit and sleep suit offered to guests in the La Première cabin were also awarded ‘Best First Class Comfort Amenities’.

As the Chairman and CEO of Air France-KLM Jean-Marc Janaillac, stated, “These awards illustrate our efforts to constantly improve our services as part of our daily commitment to our customers. These awards are dedicated to them and to all Air France and KLM staff. They offer further recognition of the efforts made by all Group staff to attain the best global standards.”

World’s Best First Class Lounge Dining

The La Première lounge at Paris-Charles de Gaulle has established itself as a world reference for the quality of its service, by offering the best in terms of fine French dining. The restaurant offers a range of dishes by Alain Ducasse and the finest wines from the Air France wine cellar. A bar is also available for customers, offering a range of delicious cocktails. This is what Air France calls ‘a moment of pure relaxation in a haven of peace’.

Best First Class Comfort Amenities…

… offered in the La Première cabin – the designer cosmetic bag signed by Givenchy and the sleep suit. Parisian chic and French elegance are embodied in these cosmetic bags offered to each guest, containing a range of exceptional and luxury beauty products – face cream, a lift intense anti-fatigue roll-on for the eyes, lip balm, hand cream and other items. Personally handed to each guest by the crew as a welcome gift, this cosmetic bag can be considered a real fashion accessory. In the La Première cabin, Givenchy cleansers and moisturizers are also available for guests throughout the flight. The designer sleep suits, made from the finest cotton, perfectly round off the cozy, comfortable feeling in the La Première suite.

SKYTEAM AWARDED ‘AIRLINE ALLIANCE OF THE YEAR’ 2016

Air France and KLM belong to the SkyTeam, an alliance of 20 major international airlines (set up in June 2000 with Air France being among the founders), whose members operate approximately 16,000 flights every day to more than 1,000 destinations around the world.

SkyTeam is an alliance of 20 major international airlines. In 2016, for the second consecutive year, SkyTeam received the ‘Airline Alliance of the Year’ award. The recognition was handed over in this year’s Air Transport News Awards in Salzburg, Austria in March.

"Winning this award for a second consecutive year is a great honor and clearly demonstrates that SkyTeam's customerfocused approach is being recognized by the industry and valued by our customers,” said Perry Cantarutti, SkyTeam’s Chief Executive Officer & Managing Director. “We are focused on delivering value to our 20 member airlines and their 665 million customers by creating a seamless travel experience across our network of 1,057 destinations and will continue to implement more industry-leading services and benefits to enhance the travel experience throughout the SkyTeam network."

As for the benefits of belonging to this extensive airline network, Dror Harel mentions the expression ‘harmonized offer’. “No matter which member you fly with, you take part in the common loyalty program, collecting and redeeming Frequent Flyer Miles. With SkyPriority (for passengers with Elite Plus membership or passengers flying on Premium Economy cabin and upwards), SkyTeam offers its most loyal customers the advantage of easy and priority access at the airport. So, you get a harmonized product and priority services on a huge network.”

republic of korea

THERESTORATION of LIGHT in KOREA

THE REPUBLIC OF KOREA CELEBRATES LIBERATION DAY ON AUGUST 15

down. This led to a nationwide protest and the foundation of ‘The March 1st Movement’ in 1919, which pushed for national independence. March

1 is also celebrated as a modern national holiday to commemorate the

33 Korean nationalists and students who took part in this declaration of independence. It was during the Japanese wartime mobilization of 1937-45 that Korea suffered the most during colonization as

Korean men were forced to fight on the frontline for Japan or were sent to work in Japanese factories, while many young Korean women were drafted as ‘Comfort Women’ for Japanese soldiers.

TRADITIONAL HOLIDAYS

Koreans officially follow the Gregorian calendar, even though, there are a few holidays that are based on the lunar calendar. During the official holidays, offices and banks are closed but palaces, museums, most restaurants, department stores, and amusement facilities are open. Seollal and Chuseok are the most important traditional holidays for Koreans, so millions of people visit their hometowns to celebrate with their families during these times.

SEOLLAL - S S S OL

Lunar e ear s ay Se a s one of the most important traditional holidays of the year; it is much more significant for Koreans than January 1st. Most businesses are closed, and people take several days off from work to visit their hometowns to be th the r fam y On the day f Se a people get up early, put on their best clothes and hold a memorial service for their ancestors and perform sebae, a formal bow of respect to the r e ders as a e ear s reet n and a reaffirmation of family ties. easts are he d th spec a y prepared food such as Tteokguk and Manduguk. People play traditional games, fly kites, or spin tops.

CHUSEOK

S -

Chuseok is one of the year's most important traditional holidays. It is celebrated on the 15th day of the eighth lunar month. Chuseok is often referred to as Korean Thanksgiving Day. It is a celebration of the harvest and thanksgiving for the bounty of the earth am y mem ers c me from all over the country to visit their ancestral homes.

including president

Hall of Korea in Cheonan or at the Arts. All buildings and homes public museums and places activists on the holiday.

Liberation Day is a holiday that marks the liberation of Korea from Japanese imperial rule in 1945 after the end of the Second World War. It was on this day that Japan declared unconditional surrender and the War was over, which made Korea restore her own power. It is also known as Gwangbokjeol, which literally means 'Restoration of Light' day. It perfectly describes the restoration of national independence that was lost for 36 years under the Japanese invasion. August 15 also commemorates the formation of the very first South Korean government three years later under Syngman Rhee, on August 15, 1948. It was designated a public holiday in 1949. The day is marked by different activities and events throughout the day, including an official ceremony – with the president in attendance – that takes place at the Independence Hall of Korea in Cheonan or at the Sejong Center for the Performing Arts. All buildings and homes are encouraged to display the national flag Taegukki, and most public museums and places are open free of charge to the descendents of independence activists on the holiday.

Historical background

The Japanese colonial rule from 1910-1945 was a dark period for the then unified Korea as Japanese colonialism was often quite harsh since Japan ruled directly through military might, and any Korean resistance was forcefully put

resistance was forcefully put

republic of korea

PUBLIC DIPLOMACY by a CIVIL ORGANIZATION

THE ACTI ITIES OF THE H N AR -KOREA SOCIET

in 1938-41. He received a scholarship from the Hungarian government for two years. His first visit to Hungary was in 1936 when he met two world famous Hungarian composers, Béla Bartók and rnő hnány e stud ed mus c at the L s t Academy of Music and learned composition from Z tán K dá y an ther reat un ar an c mp ser

to strengthen scientific cooperation between two countries.

The activities of the Hungary-Korea Society (HKS) are based on the idea that, in the age of a dramatic restructuring of global economic relations, branding and developing a country image requires that new ways be explored. Public diplomacy, a term that has appeared recently, may be one of these new ways. HKS is confident that, in addition to state diplomacy, civil organizations play an important role in public diplomacy by integrating different groups of intelligentsia, like artists,

MODEST GROWTH NEXT YEAR

Stricken by a challenging global scenario and a MERS outbreak, South Korea’s economy slowed in 2015. In 2016, domestic demand is forecast to support growth, which is expected to match last year’s 2.6%. However, weak external demand will continue to hurt exports and limit higher economic growth.

Economic activity is expected to have lost dynamism as the economic slowdown in China, Korea’s main trading partner, weighed heavily on the external sector. Next year, growth will pick up modestly due to better prospects for the global economy and GDP growth is expected at 2.8% in 2017, experts at focus-economics.com pointed out in their latest report in May 2016.

South Korea’s economic activity slowed notably in the first quarter of 2016 because weak demand continued to weigh on the external sector, while domestic demand showed a drastic deceleration. According to preliminary data, GDP

scholars, scientists into the fray.

"A firm pillar of the activities of HKS is to show similarities in the traditional culture of the two nations, such as habits, tastes, fairy tales, pentatonic sounding, rhythm systems, which are related to our unique feature in Europe, to the Asian origin of Hungarians," HKS President Andrea S e ő emphas ed

She also spoke about another important focus of the organization: Ahn Eak Tai, the composer of the Korean National Anthem stayed in Budapest

“Many elements of Ahn's relation to Hungary have been explored by HKS, which initiated the erection of a statue of this great composer in Budapest. We are very proud that a statue of the Korean artist was unveiled in 2012,” she added. HKS has unveiled another initiative this year: they want to bring together civil societies and cultural institutions of different European countries which are developing cultural, scientific, and social ties with Korea. To begin this cooperation, HKS organized a two day event in Budapest at the end of March. Civil societies from the Czech Republic, Romania, Poland, Slovakia and Russia came together and presented their organizations. They also discussed possible means of cooperation, such as joint publications and programs and decided to meet again in September this year. In a short interview with Diplomacy & Trade, the Russian delegation described the two day event in Budapest as very useful and expressed their hope that Moscow can host a similarly important meeting in the near future.

ndrea S e ő a s c mmented n ear er act ns f KS such as the nt an La rat ry h ch s a good example of how a civil organization can help

In 2009, the Hungary-Korea Society held an international conference on the 20th anniversary of the establishment of diplomatic relations between the two countries. One speaker from the Korean side was Dong-Pil Min, Chairman of the Korea Research Council of Fundamental Science and Technology. The main speaker from Hungary as sef á n ás res dent f the un ar an Academy of Sciences. This conference helped to quicken the realization of the joint laboratory. Another interesting event, the First Hungary-Korea Picnic, was organized jointly with the Korean Embassy in Budapest’s Orczy Park in May 2015. One could meet more than 200 cheerful, smiling people in the park and participants (Koreans living in Hungary and Hungarian citizens) could build direct connections. “We could enjoy each other’s culture, taste a famous traditional food and informal talk,” HSK’s website says.

“In the course of our colorful cultural program we could make our Korean guests acquainted with many uniquely Hungarian things. The guests were received at the gate in traditional Hungarian and Korean national costumes by the dancers who later came to the stage, meanwhile we heard zither mus c ndrea S e ő reca ed

DONATED CIMBALOM

The Hungary-Korea Society donated a historic Hungarian instrument, a ‘cimbalom’ (that is, a dulcimer), to Korea. A delegation by HKS handed over the instrument in a ceremonial event in the Seoul Arts Center in May, 2014. The event was organized to commemorate the 25th anniversary of the establishment of diplomatic ties between the two countries. The ceremony was followed by a cimbalom concert, presented by the students of the Korea National University of Arts. The program was realized as a joint project of the Hungary-Korea Society and Korea National University of Arts. For the first time compositions of Kodály and Bartók, containing cimbalom sounds, were performed in Korea. The compositions were received with standing ovations.

slower domestic demand. Imports slowed from a 6.1% increase in Q4 to a 1.5% expansion in Q1. As a result, net exports continued to be a drag on the economy. The deterioration in the external sector subtracted 0.7 percentage points to overall economic growth in the first quarter, which followed a 1.6 percentage-point detraction in Q4. In April, the Central Bank lowered its growth forecasts for this year and next. The Bank now expects GDP to increase 2.8% 2016, which was downwardly revised from a previous 3.0% projection. For 2017, the Bank now expects growth of 3.0%, which is down from a previous 3.2% expansion.

increased 2.7% in Q1 over the same period last year, which was down from the 3.1% expansion observed in Q4, 2015. The deceleration was widely expected as analysts had seen the economy increasing by only 2.6%. Sequential data confirm the deceleration suggested by the annual data. In Q1, GDP increased by 0.4% over the previous quarter in seasonally-adjusted terms, which came in below the 0.7% expansion registered in Q4 of 2015.

On the domestic front, private consumption grew 2.1% year-on-year in the first quarter, which marked a deceleration compared to the 3.3%

expansion tallied in Q4. In addition, gross fixed investment slowed substantially from a 5.4% increase in Q4 to a 3.1% expansion in Q1. The only bright spot in Q1 was government spending, which increased 4.5%, on the heels of a 3.9% expansion in Q4. Meanwhile, tumbling external demand at the beginning of the year affected Korean exports of goods and services. Overseas sales of goods and services were virtually flat in Q1, growing only 0.1% (Q4: +2.5% year-on-year). On the other side of the balance, imports decelerated notably in the first three months of the year, reflecting

The forward-looking business confidence indicator (BSI) for the manufacturing sector, elaborated by the Bank of Korea (BoK), rose from 70 points in April to 73 points in May. Due to the improvement, the indicator is now at the highest level since June 2015. Nonetheless, the indicator remains below the 100-point threshold that separates optimists from pessimists.

According to the Bank of Korea, economic sentiment among both export-oriented and domestic demand oriented firms improved in May. In addition, expectations regarding sales and probability were up substantially in May and the outlook on raw material purchase prices and on sales prices also improved notably. Meanwhile, the BSI’s current business conditions index ticked up from 66 points in April to 69 points in May.

witty leaks

OBSERVING HUNGARIANIDENTITY

CONTINUOUSLY DEVELOPING CHILEAN-HUNGARIAN RELATIONS

BY VERÓNICA CHAHIN, AMBASSADOR OF CHILE

Being a diplomat is like being a social engineer: one has to build motorways and bridges for people from all walks of life and all parts of the world to get to know each other, communicate, share their uniqueness and join their particular potentials. This understanding builds inclusiveness and mutual respect for different ways of thinking and living. The ultimate building with these fundamental elements, cemented in dialog, is the peaceful resolution of conflict and differences, granting a happier quality of life for mankind in our drastically interconnected and globalized world.

As Ambassador of Chile to Hungary, what strikes me most are the people, Hungarians on buses and streets, old and young, at the shop or at university, at school or at the working place. I perceive a certain stance, seemingly shaped by centuries of history and by being at the crossroads for many of the mightiest and most advanced cultures of East and West.

Many a great empire put its eyes on Hungarian land to subdue their people as subjects of their own civilizations. Nonetheless, through their shared struggle for survival, with hard work and enormous strength and effort, they have managed to preserve their language, the thinking that bred 14 Nobel Awards, their culture, their values. There is a markedly Hungarian identity present in every aspect of life, at home, in the streets, at work and at sunrise. It is amazing for me to see the elder people’s faces, still marked by their difficult life under domination, by their fight against conquerors, live witnesses of hard times: they stay up and face everyday life with enduring pride, their stern expressions and strong but kind eyes hiding always a smile, waiting to provide a solidary gesture, always prompt to help each other.

They look at foreigners with interest and take them for what they are, not for their position or what they own, or look like. I sense sort of a human equalitarian air permeating all relations that prevails over any other consideration. Youngsters are strong minded, hard workers, proud of their ancestors and traditions; they enjoy every aspect of living and show increasing curiosity for foreign lands and cultures. They seem to me like the young flock that, coming from the harsh historical winter, begins to fly, eager to test their wings around the world.

I might notice this because I am Chilean, from one of the countries hardest stricken by natural disasters; a land where our people and migrants from all around the world have learnt to surmount unthinkable difficulties, historically isolated from any immediate help, and learnt to start all over again, building from ashes. Much as the Phoenix. Another virtue that amazes me in Hungary is the extraordinary professional competence, ingenuity and abilities that I have seen all around in this first year living in beautiful Budapest. Not only here, too. Back home, creative and innovative Hungarian youngsters are participating with increasing success in the Chilean start-up program. Also, young scientists are interested in our Atacama Desert and in Antarctica, traveling there, exploring, visiting and studying, returning back home to share and promote their findings. Prestigious universities have Departments of Spanish Studies, and they gather interested crowds through organizing very successful events, which include professionals not only from Spain but also from Latin American countries. More and more people are eager

to know and to learn about other countries’ experiences. People´s Diplomacy at its best. I feel joyful at this newer generation’s interest in their future, which is being decided now. Luckily for them, their blooming curiosity paired with modern means of communication – from cheaper flights to the online reality – have shortened distances, making it possible to explore the world and make good friends across the oceans too. Thus, one of my priorities as representative of my country is to support the consolidation of these networks, to facilitate exchanges between Chile and Hungary in many fields, with emphasis on younger people. In turn, the future will be an ever richer and integrated framework of bonds, which I am convinced, can only bring benefits to all. The potential seems endless.

During last April´s Official Visit to Hungary of Chilean Vice-Minister of Foreign Affairs, Mr. Edgardo Riveros, to hold Political Consultations with his Hungarian counterpart Vice-Minister László Szabó, a Work and Holidays Agreement was signed to allow young Chileans and Hungarians to visit, work and live for a year in each other´s country.

This is a substantial component for the shared world I was referring to, as their experiences, while immersed in the other’s culture and language, will broaden the scope of bonds bound to emerge. The signing of these kinds of agreements has been a most positive initiative with valuable pluses for Chile. We have reached out to the world and get firsthand experience of realities which seemed so far away, discovering commonalities and expanding exchanges in businesses, investments, academic, cultural and of student flows. Furthermore, we are looking forward for Chilean students to join the Stipendium Hungaricum Program, working with various universities interested in accepting Chilean students into their international post-graduate programs. On this tune, an agreement on promoting academic and student exchanges was signed last March between the General Secretary of the Hungarian Rectors’ Conference, Mr. Zoltán Dubéczi, and his Chilean counterpart.

We are very enthusiastic in supporting the bonds of Chile with the founders of Europe’s first Academy of Sciences and with the knowledge-seeking tradition of a culture, which is justly proud of providing the world with 14 Nobel Prize Winners. These developments stem from the reinstallation of the Embassy of Hungary in Chile in 2014, in the framework of Hungary’s South-Opening Policy, followed by last year’s appointment in Santiago of a Commercial Attaché and the opening of a National Trade House in 2015. Concrete steps that contribute in great measure to consolidate trends, like the steady growth of trade, totaling USD 81.4 million in 2015 from USD 60.6 million a year before. We hope the near future will see crossed investments materializing in each other’s societies. In the multilateral arena, Chile and Hungary share a like-minded approach and joint actions on key issues such as disarmament, global warming, sustainable development and gender initiatives. Accordingly, during the last OECD Summit – Chile presided while Hungary held one of the Vice-Presidencies –, Budapest and Santiago supported a most important initiative for middle-income countries in the field of international cooperation. Furthermore, as an Observer country to the Pacific Alliance mechanism (PA), which is presided over by Chile until July 2017, Hungary and Canada were the first countries to propose a concrete project – in education – to jointly work with the four PA Member States (namely Chile, Colombia, Mexico and Peru). The above mentioned are but some examples that the bridges and motorways are working to get people together, to build a better world for our children and future citizens through knowledge, respect and inclusiveness. That will allow us all to have a more secure, sustainable and harmoniously developed world where people can live free and happy.

WITTY

LEAKS

National Day of Egypt

ON THE OCCASION OF THE 64TH ANNIVERSARY of the 23rd of July Revolution, the Ambassador of the Arab Republic of Egypt Mahmoud Elmaghraby held a National Day Reception at Budapest's Hotel Marriott with Minister of State for Security Policy and International Cooperation István Mikola as guest of honor.

USA Independence Day

US AMBASSADOR COLLEEN BELL HOSTED a special Indepence Day celebration at her residence on July 4. Several ministers were invited, together with ambassadors and senior members of the diplomatic corps.

Gottardo 2016

TO CELEBRATE the 100-year anniversary of the Organisation of the Swiss Abroad (OAS) in presence of Filippo Lombardi, Counsellor of States and Vice-President of OAS, the Ambassador of Switzerland, Jean-François Paroz together with the General Director of the Transport Museum, Dávid Vitézy opened the Gottardo 2016 exhibition at the Abraham Ganz Foundry Museum on July 14.

Bastille Day

FRENCH AMBASSADOR ÉRIC FOURNIER hosted a reception at the garden of his residance with guest of honor Minister of Justice, László Trócsányi, to mark the anniversary of the storming of the Bastille in Paris, on July 14, 1789, Guests, including ambassadors and members of the Hungarian Government could enjoy traditional French dishes.

Indonesian Stars in Budapest

K&H Move! Marathon

THIS YEAR MARKED THE 23RD ANNUAL 'K&H MOVE!' marathon and half-marathon held in Budapest. Up to 9,000 applicants participated at the competition, including the Ambassador of the United States, Colleen Bell.

THE EMBASSY OF INDONESIA HELD A SPECIAL PRESS CONFERENCE on July 20 to introduce Rio Haryanto, Indonesia’s first Formula One pilot who was among the contestants at the 31st Hungarian Grand Prix, and also Ras Muhamad, Indonesia's reggae ambassador, who will play at Budapest's Sziget Festival this August.

PEOPLE-CENTRIC and LIBERAL APPROACH in the COUNTRY of SIX SEASONS

INTERVIEW WITH THE BANGLADESHI AMBASSADOR

BY RÉKA A. FRANCISCK

“Bangladesh has maintained friendly relations with Hungary since its independence. The government and people of Hungary supported the cause of Bangladesh during the war of liberation in 1971, and Hungary was one of the first countries to accord recognition. For this, Bangladeshi people are very grateful,” reveals Mohammed Abu Zafar, Ambassador and Permanent Representative of Bangladesh to Austria, Hungary and Slovenia and the UN Offices and Intergovernmental Organizations in Vienna, who presented his credentials to Hungarian President János Áder in March this year. “Diplomatic relations were established as early as January 29, 1972,” the ambassador continues. “As a gesture of cordial and friendly relations, Hungary established her resident Mission in Dhaka in 1973 which existed until the year 1997. A number of agreements have been signed with Hungary such as the Trade Agreement in 1972, the Technical and Scientific Cooperation Agreement a year later, the Economic Cooperation Agreement in 1975 and the Cultural and Scientific Cooperation Agreement in 1982. However, these agreements have become inoperative and need to be reactivated. Moreover, signing of an Agreement on the Promotion and Protection of investments between Bangladesh and Hungary is lying with

A career diplomat, Mohammed Aabu Zafar joined Bangladesh Civil Service (Foreign Affairs) in December 1991. During his 25 years of service with Government of Bangladesh, altogether 30 years with the Government of Bangladesh, he served in different capacities at home and abroad, as Director General of the East Asia and Pacific Wing and as Director General of the South East Asia Wing. He was Consul General for Bangladesh in Dubai, UAE between 2009-2013 and Consul General for Bangladesh in the Pacific Coast of the USA between 2007-2009. He did B.Sc. Agriculture (Hons) at Sher-e- Bangla Agriculture University in Dhaka, and obtained Post Graduation Diploma in International Relations from International Institute of Public Administration in Paris, France. He did Master of Business Administration at Preston University, USA.

the Hungarian side,” the ambassador remarks, adding, “I believe, it is my mission to further bolster economic, political, trade and cultural ties between Bangladesh and Hungary.” He expects more people-to-people contacts including visits on political and business levels, as he believes in personal connections. “We need to better inform Hungarians on how beautiful and picturesque our country is so we could welcome more tourists from this country, and also, Hungarian investors have to know that doing business in Bangladesh is easy as pie. The current bilateral trade between the two countries is USD 16 million approximately, and I’d like to see growth there,” he says. “With a large, young and hardworking workforce, Bangladesh, the world’s eighth largest country by population (160 million in total out of which the majority, 88 percent, is Muslim), and a secular country by constitution, offers tremendous opportunities for Hungarians, especially in the energy, power, pharmaceuticals, information technology, telecommunications, and infrastructure sectors as well as in labor- intensive industries such as readymade garments, home textiles, foot-wear and agrofood- and leather processing. Bangladesh currently exports ready-made garments, agricultural products, jute goods and finished/

crust leather to Hungary, and has explored the possibility of exporting ceramics, handicrafts too. Imports from Hungary to Bangladesh include pharmaceuticals, hospital equipment and railway spares."

Investing in Bangladesh

"I’d like to reveal to Hungarians, that under our industrial policy and export-oriented growth strategy, a range of investment incentives are available with few formal distinctions between foreign and domestic private investors: 100 percent foreign ownership in most sectors, tax holidays and exemptions, reduced import duties, duty-free imports for 100 percent exporters of ready-made garments. All this plus steady energy prices help the development of our vibrant, dynamic private sector,” the ambassador reveals. He points out that while in 2005-2006, the country’s per capita was only USD 543, the figure rose to USD 1,466 as of this spring. “Bangladesh saw a sustained 6.3 GDP growth in the past seven years, and we expect that number to be 7.05 percent this year. This success is owed to our currently governing party Awami League and its liberal policies. Led by Prime Minister Sheikh Hasina (the eldest daughter of the Father of the Nation Bangabandhu Sheikh Mujibur Rahman),

the party in its election manifesto titled ‘Vision 2021’ envisioned turning Bangladesh into a Sonar Bangla (Golden Bengal), a middle-income country that might join the ranks of the developed countries by 2041.” According to the ambassador, risk factors for FDI are already minimal in Bangladesh. “In Standard & Poor’s, Moody’s and Fitch’s credit ratings, Bangladesh stands at BB-, Ba3 and BB, respectively, with a stable outlook.”

Women enpowerment

Ambassador Zafar notes that Bangladesh is one of the leading peace-keeping countries in the UN, a moderate Muslim country that has embraced the leadership of women. “Bangladesh ranks 68th among 142 countries in the Global Gender Gap report of 2014, thanks to our ambitious and bold pro-women development strategy which aims at ensuring equal opportunity and entitlement for women. In the current parliament, there are 70 women, including the PM and leader of the House, the opposition leader and the deputy leader of the House. In addition, over 12,500 women are represented in local bodies,” says the ambassador, who himself, must have experienced women’s leadership in his own house too. "With my wife Salma Ahmed who graduated from the Faculty of Social Science of the University of Dhaka, I am raising two daughters,” Ambassador Zafar nods with a smile.

Eco-tourism

According to the ambassador, today’s Bangladesh takes pride in her turning around a food selfreliant country from a chronic food-deficit country in over 35 years, and pursues a policy of zero tolerance toward militancy and terrorism. “We are a peaceful country, well-connected to the world,” he says. “Hungarians can travel to Bangladesh via Dubai and London. I personally encourage them to do so and explore my homeland’s natural beauty and culture, just as those many tourists who visit Bangladesh for its picturesque hills, exquisite wildlife and bio-diversity, or the unending stretches of golden sandy beaches. Did you know that Cox’s Bazar has the world’s longest unbroken clean sandy beach? It lays 120 km long in the Bay of Bengal. Another record breaker is Srimongol that is known for hosting the largest tea gardens in the world. Eco-tourists also love the Sundarbans (Mangrove Forest), an UNESCO world heritage site.” According to the ambassador, Bangladesh is often referred to as the land of rivers with almost 240 small rivers crisscrossing the country (with a few as wide as 4 km), where people have a profound relationship with nature. “The national anthem of Bangladesh composed by Nobel Laureate Rabindranath Tagore (who also wrote the national anthems for India and Sri-Lanka) says a lot about spontaneous bonding between the people and the land. We have six seasons with late autumn and the rainy season being the ‘extras.’ We are a land of many cultures, with Buddhist, Islamic and Munghal heritages. And we are a modern nation, vibrant and on the move, always forward.”

HUNGARIAN HOLLYWOOD TOUR 2016 HAS BEEN LAUNCHED

BY BALÁZS BOKOR

It is a fact that there were many-many Hungarian-born stars in the history of Hollywood. Hungarians should be proud of them, remember then and possibly follow their examples. The recently initiated Hungarian Hollywood Tour 2016 Project serves this very goal in Hungary. The tour will visit some of the villages and towns in Northern Hungary with a Hollywood 'fingerprint'. The village of Ricse where Adolph Zukor, founding father of the Paramount Pictures was born, Tolcsva where William Fox was born, Mátészalka where the parents of Tony Curtis came from, Nagylóc where the 3-times Oscar winner Miklós Rózsa spent his childhood, Miskolc where Emeric Pressburger was born and Kisvárda where Victor Varkoni was born. This unique, special and timely project aims to draw the attention of Hungarians to these stars, as unfortunately they are not well enough known in their homeland. 35 Oscars were won by artists of Hungarian origin and 21 'Hungarian' stars can be found at the Walk of Fame in Hollywood.

There is a separate Facebook page for the Tour where all the icons, Zukor, Fox, Curtis, Rózsa, and the others have a ‘memorial page’ which attempts to cover all possible information of them. The original idea of organizing this tour is based on the book of Ambassador Balázs Bokor, former Consul

General of Hungary in Los Angeles, 'My Hollywood'. In its preface, Secretary of State László L. Simon wrote, “It is a book that, as soon as published, will be the resource of Hungarian film history.”

This book presents all the 35 Oscar winners and offers a 'stop' at each of the 21 stars on the Hollywood Boulevard giving interesting details on the lives of world-known directors, actors, movie people. It introduces the Los Angeles Hungarian Film Festival, and leads us behind the scenes of film-making.

The first stop of the Hungarian Hollywood Tour 2016 paid tribute to Adolph Zukor. The Hollywood film mogul was born in the tiny village of Ricse in the Northern part of Hungary. During the unique event, the great number of participants witnessed the ceremonial unveiling of an Adolph Zukor memorial plaque in the local House of Culture also bearing his name. The main hall of the House was fully packed with an audience listening to a talk show moderated by Amabassador Balázs Bokor with the

active participation of Oscar winner director, Ferenc Rófusz, three-times Grammy-winner director, Gábor Csupó and Béla Bunyik, the director of the Hungarian Film Festival of Los Angeles. Members of the audience had a chance to take photos while holding a 'real' Oscar in their hands… After the discussion 'The Public is Never Wrong', everybody visited the old house where Zukor was born, planted a memorial tree and remembered the mother of Zukor in the local Jewish cemetery at her graveside. The Tour will continue to its next destinations in the second half of August and September. August 14 will be the memorial day for William Fox in his village, Tolcsva - in the middle of the famous Tokaj Wine Region. The event is an integrated part of the Zemplén Festival. August 26 will witness the feast of Tony Curtis with the unveiling of his memorial plaque. Afterward, the tour goes on to Kisvárda, Nagylóc and Miskolc. The last event will be part of the internationally known and respected CINEFEST Festival.

UNVEILING NAGYLÓC PLAQUE OF MIKLÓS RÓZSA

A North Hungarian small village, Nagylóc has witnessed a special ceremony of unveiling the memorial plaque of the 3-times Oscar winner Hungarian-born composer, Miklós Rózsa. The ceremonial event was organized amidst a great public interest by the Municipality of Nagylóc and the Hungaria Nostra Foundation of Los Angeles. Mayor Gabor Peter introduced the life of Miklós Rózsa who spent his childhood in this small village at his parents` estates. Listed his life achievements and talked about the three Oscar winner films` music composed by Rózsa. The President of the Foundation underlined that Rózsa had kept his Hungarianhood until the end of his life and he was proud of his Hungarian roots. It is of great importance for the village of Nagylóc that such a world-known and respected composer turned his face towards the local popular music ("paloc” music) in this very location. The memorial plaque was unveiled by the Mayor and the President of the Foundation. The plaque was blessed by the local Roman Catholic priest. Ambassador Balázs Bokor, former Hungarian Consul General in Los Angeles pointed out to the fact that there were many Hungarian-born stars in the history of Hollywood. Hungarians should be proud of them; they should keep their memories. Bokor underlined that his project, the Hungarian Hollywood Tour 2016 serves this very goal. The tour will visit the villages and towns in Northern Hungary with a Hollywood ‘fingerprint.’ The village of Ricse where Adolph Zukor was born, Tolcsva where William Fox was born, Mátészalka where the parents of Tony Curtis came from and other places. the Tour also will come back to Nagylóc on September 18, 2016 at the most important festival of the village to remember the memories of Rózsa. The official unveiling event ended with a concert from Rózsa’s compositions in the Catholic Church of the village.

O ce: H-Budapest, Apáczai Csere János utca 12-14 (Hotel Intercontinental) Tel: +36 1 327-6690

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JEWISH CULTURAL FESTIVAL

SEPTEMBER 4-11 AT MULTIPLE ENUES

Organized annually by the ewish Tourism and Cultural Centre, the ewish Summer Festival in Buda est is a great o ortunity to learn about Hungarian ewish culture. Klezmer music, cantor concerts, classical music concerts and light music concerts are on the list of programs every year, in addition to film screenings and theater rograms. Performers in 2016 include Myrtill the S INGUISTIQUE, Andrea Rost and the Ferenc Liszt Chamber Orchestra, M rk featuring Bea Palya, the Euro ischer Synagogalchor and Erika Lu , to name only a few. www.zsidokulturalisfesztival.hu

EVENING CONCERTS AT THE ZOO

UNTIL AUGUST 24

The annual summer concert series at Buda est s Zoo kicks off in uly staging light jazz, o and klezmer concerts at two venues the shore of the scenic Great Lake, and the Main Entrance Square. Before the concerts you may take a walk in the Zoo that o ens for these night sessions at 7PM.

AUGUST 03 Tam s Bényei and the Gramo honia Hot azz Orchestra I m All For You

AUGUST 10 Andr s Kern L v lde Square

AUGUST 17 Péter Geszti Lét gy

AUGUST 24 Buda est Bar

Further information www.zoobudapest.com

INTERNATIONAL HUCUL HORSE RACES AND

FARRIER

AUGUST 6-7 AT THE AGGTELEK NATIONAL PARK IN ÓS AF

COMPETITION

Each Hungarian national ark has one huge annual event at Aggtelek National Park it is the International Hucul Horse Races and Farrier Com etition every August. Catch the e citing chariot races, show jum ing and obstacle course horse com etitions, as well as the eagle eye, shoeing and bottle o ening com etitions among the farriers. You are invited to enroll in the Nature s Pharmacy alking Tour or the Hot Summer Night Sunset Tour. The ark also welcomes the return of the o ular Bat Night Tours and the o ening of the annual bird ringing camp. www.anp.hu

BUDAPEST SUMMER FESTIVAL

THROUGHOUT AUGUST AT MARGARET ISLAND AND IN ÁROSMA OR PARK

Buda est s annual o en air summer festival of o era, music and dance, staged at two o en air theaters, one on Margaret Island and one in rosmajor Park, celebrates the Year of Romance in 2016. The varied re ertoire of the fest includes Othello with Andrea Rost, Marc Heller and the State O era Orchestra, Shakes eare s remarkable comedy, the Two Gentlemen of erona resented in original language, by the Shakes eare s Globe Theatre , Stanley ordan, jazz guitarist and member of the great American guitar generation of the 80s, and much more. In August, Buda est Summer Festival brings us Les Ballets de Monte Carlo who will erform Romeo and uliet, and a su er s ectacular Magic Show, featuring Euro e s youngest, yet already world renowned classical illusionist, incent ignaud, 2015 Merlin rize winner David Climent and the uniquely elegant Peter Marvey. isitors to the island and audience members can enjoy the unique sights of Margaret Island, including the 105 year old ater Tower and the O en air Theater located in the triangle of the several hundred year old giant Platanus tree, the Saint Margaret Ruins as well as the monument of the Premontre Monastery. www.szabadter.hu

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SZIGET 2016

AUGUST

10-17 AT HA ÓGYÁRI SZIGET

Nearly half a million people come every year to Sziget also dubbed the Island of Freedom for a week of music and entertainment, and non-stop partying. Organized on a beautiful green island every August since 1993, the Sziget festival celebrates music, art, theater and dance based on the principles of freedom and tolerance. As the biggest music and arts festival in Euro e, it received the award for the Best Euro ean Line U for its 2015 edition. This year the fest resents Rihanna, Sia, Noel Gallagher, E cision, ake Bugg, the Muse, David Guetta, Parov Stellar, Manu Chao La entura and Hardwell, to name only a few names on the list of the international performers.

www.sziget.hu

Andrea Rost and the Ferenc Liszt Chamber

FLOWER CARNIVAL

AUGUST

15-21 IN DEBRECEN, 220 KM EAST FROM BUDAPEST

While Budapest celebrates August 20 (Saint Stephen's Day, commemorating Hungary's first king and the foundation of the Hungarian state) with a series of state ceremonies and concerts, the city of Debrecen organizes a flower festival to mark the official State National Day. In fact, an entire week is spent in the spirit of celebration, music and dance in the second largest city in Hungary. The festival has gradually grown into one of Hungary’s best known and Debrecen's most significant festival that offers a spectacular carnival atmosphere when the number of Debrecen’s population doubles. During the fiesta, a wide range of folklore programs, openair theatrical performances, concerts and art exhibitions welcome visitors, at different venues including Kossuth Square just in front of the emblematic Great Church of the city, and Nagyerdő, the ‘green heart of Debrecen’. The highlight and most memorable part of the festival is the closing day’s parade of the flower carts or floats, made exclusively of various floral components. Millions of blossoms are built into different forms, displaying famous Hungarians or even scenes from musicals and Hungarian folk tales. The floats are accompanied by dance ensembles and cheerleaders who have been practicing for several months in advance. www.debreceniviragkarneval.hu

what's on

ST. STEPHEN’S DAY

AUGUST 20 AT MULTIPLE LOCATIONS

August 20th is the greatest national holiday for Hungarians, celebrated with day-long festivities followed by spectacular fireworks throughout the country. St. Stephen’s Day commemorates the foundation of the Hungarian state, as Stephen I, the first king of Hungary was canonized on this very day. Festivities in Budapest usually start at 8.30 AM with the raising of the Hungarian flag in Kossuth Square and continue all day long, culminating in a spectacular fireworks display over the Danube. The main events include the procession of St. Stephen’s Holy Right Hand around the Basilica, the Court of St Stephen, a historical playhouse, a water parade and an air show along the embankments of the river Danube. St. Stephen’s Day also marks the festival of the new bread celebrated in cities and towns across the country, when traditionally, the first bread from the new harvest is baked. The Bread Blessing ceremony will start at 3.30 PM at Clark Adam Square. Cardinal Péter Erdő will bless the bread at 5 PM in the Basilica.

THE REAL SAINT MARTIN AND PANNONIA

UNTIL SEPTEMBER 30 AT THE MUSEUM OF PANNONHALMA ABBEY (9090 PANNONHALMA, MÁTYÁS KIRÁLY STREET 1-3.)

UNTIL NOVEMBER 30 AT THE ISEUM SAVARIENSE (9700 SZOMBATHELY, II. RÁKÓCZI FERENC STREET 6-8.)

30TH FESTIVAL OF FOLK ARTS

AUG 18-21 AT THE CASTLE DISTRICT

This festival is the most significant forum for living folk culture in Hungary. Renowned Hungarian artists and craftsmen from all over the country will introduce skills handed down through generations. In the historic atmosphere of the Buda Castle, visitors will be welcomed by leatherworkers, candle makers, beading masters, potters, woodcarvers, egg painters and gingerbread makers. Guest countries this year are Uzbekistan and China. The Festival of Folk Arts is an ideal family program, especially in 2016 when special focus will be on playing. On one hand, the material culture of folk toys with the help of toy makers will be presented, and on the other hand, traditional games and artistic performances will also be part of the program. There will be fairground puppeteers, comedians, traditional street theater presentations, traditional and skill developing playful exercises for children, musical performances, dancing possibilities, and story-telling-, musical- and puppet performances. Folk games will also play an important role in folk dance shows, and evening programs will once again be an outstanding musical and viewer experience for visitors. Gastronomy of the Hungarian countryside will also be on offer. www.mestersegekunnepe.hu

among

of our country, a Roman soldier who became the Bishop of Abbey and the Town of Szombathely. As the outstanding event

A unique archaeological exhibition opened recently within the framework of Saint Martin’s Memorial Year in two locations: Pannonhalma and Szombathely. The collection – boasting an array of famous archaeological finds and numerous gold objects, among them one item of the Nagyszentmiklós hoard – presents a period spanning nearly five centuries of Pannonia, Saint Martin’s land of birth and provides an insight into how Christianity spread in this region. Saint Martin, a world famous saint born 1700 years ago in the territory of our country, a Roman soldier who became the Bishop of Tours, is being celebrated this year by Pannonhalma ArchAbbey and the Town of Szombathely. As the outstanding event of the Saint Martin memorial year, this twin exhibition offers a unique collection of international importance, all gathered from the territory of Pannonia, a Roman province of that time. The lavish material of the exhibition is presented through the collaboration of two museums, divided in two parts and arranged to present two periods of history. The double identity of a Roman soldier converted into a Christian is the precise reflection of his age: through the objects on display in this exhibition visitors, for the first time, have a comprehensive insight into the way Christianity spread within the territory of the Roman province.

collaboration of two museums, divided in two parts and arranged within it

One part of the twin exhibition is located in the Iseum Savariense museum in Szombathely, where the history of Pannonia and Savaria can be traced back to the Roman roots of the time when Saint Martin lived, whereas in the Museum of Pannonhalma Abbey it is the age of Saint Martin, the Christian monk and bishop, as well as the subsequent centuries that are on display. www.szentmarton-pannonia.hu

5TH PALOZNAK JAZZ PICNIC

AUGUST 4-6 IN PALOZNAK

This summer, Paloznak will once again be the capital of jazz at Lake Balaton for three days: the Paloznak Jazz Picnic returns with a star-studded program. In the past five years, the event has grown into a celebration attracting thousands of guests with its true Balaton Uplands vibes, jazz concerts you can watch while lounging in the grass, quality wines, and top notch international and Hungarian artists. The program’s length is expanded to three days to accommodate a busier and more exciting concert schedule than ever before. Paloznak's streets will fill with music and people strolling with a wine glass in hand; the main stage will be set up on the edge of the village, and the Folk House's garden will be turned into a live music venue. The festival, organized by a local winery named Homola Pincészet and co-organized by the Municipality of Paloznak, is one of Hungary’s most charming summer events - last year, it attracted more than 6,000 guests. The event, part of the ‘MOL nagyon Balaton’ program series, held in cooperation with Veszprémfest, promises a unique, premium selection of music, performers and culinary experiences. During the festival, a dedicated bus service will help guests travel between Paloznak and their accommodations in nearby villages, like Balatonfüred, Csopak, Balatonalmádi and Alsóörs. The picnic vibes will be complete with picnic baskets, cooled wines, local farmers' delicacies (such as: artisanal cheeses and hams, ice cream and pálinka variations), and picnic blankets. The festival also stands for quality in terms of gastronomy: the most popular restaurants of Lake Balaton's north shore will be catering. The international line-up will star St. Germain, Incognito, Earth, Wind & Fire Experience feat. Al McKay while Hungarian performers include the Váczi Eszter Quartet, Bin-Jip - a project by Veronika Harcsa, Bálint Gyémánt and Andrew J -, Boggie, Pankastic!, Marge, Belau, the Kéknyúl Hammond Band, the Szőke Nikoletta Quartet, the Juhász Gábor Trio, and András Jász and Friends. www.jazzpiknik.hu

gastronomy

SZAMOS MARZIPAN HAS OPENED ITS 26TH STORE

NEW TRENDS AND TRADITIONAL ELEGANCE AT THE PARLIAMENT

One of the most successful Hungarian family businesses, Szamos Marzipan has opened a three-story retail space next to the House of Parliament in Budapest. The café, the construction of which DVM group took part in, boasts a superb view of Kossuth square.

With its modern style and expanded product range, the new Szamos coffee house represents a new direction for the company. This latest addition to the Szamos chain goes beyond the perception of a traditional confectionery. Besides selling cakes and marzipan, it serves the needs of tourists and nearby workers from early morning, offering pastries, sandwiches and business lunches as well. The place is already popular: the large wall decoration depicting a galloping horse reflects the energetic dynamism of the packed and sparkling coffee house. Representing the Szamos family, managing director Ádám Kelényi said that in addition to their traditional elegant approach they intentionally opened towards new trends as well. The progressive image and product range of the ‘Szamos Today’ concept was developed by studying business models and consumer habits in various large European cities.

Glass and mirror surfaces make the high-ceilinged, modern interior even more spacious. In the chocolate museum operating on the top floor, visitors can not only learn about the history of cocoa cultivation, processing and consumption through the collection of the Szamos family, but can also admire stunningly detailed marzipan statues or participate in chocolate making courses. "Because of the prime location it was particularly important to obtain all the necessary permits in time to ensure the progress of the scheduled conversion would work. We had that covered, among other things," added Tibor Massányi, managing partner of DVM group. "DVM Group also proved its expertise in the construction of the glass portals, the implementation of the new gallery and the establishment of a direct connection between the café and the chocolate museum above. It was an honor to take part in the creation of the new Szamos café. We believe that first-class workmanship boosts the success of quality service."

TASTES OF ABBAZIA AT CORSO RESTAURANT

Enjoy opulent summer days at the InterContinental Budapest hotel’s Corso Restaurant and daydream of Abbazia, an enchanting city in Croatia (today known as Opatia) on the Adriatic coast. On July 15-August 14, the restaurant introduces the culinary art of this beautiful city by the Mediterranean Sea, which is an exciting combination of Hungarian, Italian, Greek and Serbian tastes, as these nations all contributed to the history of Abbazia.

gastronomy

BLIND DATE WITH THE CHEF AND THE SOMMELIER AT KOLLÁZS - BRASSERIE & BAR

KOLLÁZS

BRASSERIE & BAR

Vibrant and inspiring, Kollázs Brasserie & Bar is a contemporary European brasserie in a landmark Budapest location, within Four Seasons Hotel Gresham Palace Budapest, overlooking the Chain Bridge and the Danube River. The Hungarian word for “collage,” Kollázs highlights creative combinations in all aspects of the dining experience. Chef Árpád Győrffy has created a menu that blends local and international flavors, as well as traditional and modern dishes. The focus is on modern European and French brasserie cuisine with signature Hungarian specialties.

BUTTERFLIES in YOUR STOMACH

Kollázs - Brasserie & Bar recently introduced a novel concept, which, without much advertising, spread rapidly by word-ofmouth: at Kollázs guests can have a blind-date with the chef and the sommelier. For a surprising dining experience, there is no menu. You never quite know what to expect but can be sure of one thing: it will probably be one of your most extraordinary dinners ever. Both the chef and the sommelier will pop up at your table presenting every single dish and paired drink.