Diplomacy & Trade 2017 August by Diplomacy&Trade

AUGUST 2017 HUF 1710

EUR 6

CONNECTING TO THE V4 INTERVIEW WITH SLOVENIAN FOREIGN MINISTER KARL ERJAVEC

SLOVENIA AND THE VISEGRÁD GRÁ GROUP SHARE NOT ONLY GEOGRAPHICAL PROXIMITY BUT ALSO NUMEROUS COMMON INTERESTS AIMED AT ENHANCING THE IMPORTANCE OF THIS PART OF EUROPE IN THE INTERNATIONAL ARENA. SEE ARTICLE ON

page 21

Spain

country

FOCUS

“Spanish-Hungarian relations reached their peak when we both became members of NATO and the European Union which meant that we again met each other at the end of the 20th century through these large organizations,” the Ambassador of the Kingdom of Spain to Hungary, José Ángel López Jorrin tells Diplomacy&Trade. This year, the two countries mark the 40th anniversary of diplomatic relations and the ambassador talks, among other issues, about room for improvement in bilateral economic relations. see articles on pages 8-18

Direct flights to the USA

LOT Polish Airlines has announced it will create a direct air link between Budapest and the United States by May 2018 with ights four times a week to New York City JFK and twice a week to Chicago O'Hare airports. The Polish carrier will operate these ights throughout the year on one of the most modern aircra available, the Boeing 787 Dreamliner. see page 23

977155898070017008 Book 1.indb 1

7/31/17 11:15 AM

Book 1.indb 30

7/31/17 11:15 AM

w w w . d t e u r o p e . c o m

Book 1.indb 3

D I P L O M A C Y

T R A D E

F E B R U A R Y

2 0 1 5

3 7/31/17 11:15 AM

letter from the publisher In July, Hungary was the hub of Central European politics as the country took over the Presidency of the Visegrád Group (V4). One of the countries with special ties to the V4 is Slovenia whose foreign minister, Karl Erjavec gave an exclusive interview to Diplomacy&Trade, advocating regional cooperation. The country in focus in this issue of Diplomacy&Trade is Spain on the 40th anniversary of the establishment of diplomatic relations with Hungary. Many thanks to Ambassador José Ángel López Jorrin for his cooperation and his in-depth interview that covers a wide range of bilateral political and economic relations, as well as cultural ties. We also have interviews with the trade and commercial counsellor of the Spanish Embassy in Budapest, the director of the Cervantes Institute in the Hungarian capital and the director of the Spanish Tourism Office in Vienna to round out our focus. This month’s international analysis looks at the G20 summit that was overshadowed by the Trump-Putin meeting, while our business page features the announcement that LOT Polish Airlines will reestablish its direct flight connection between Budapest and the United States, as well as a piece on Hungary’s top beer producer’s latest sustainability report. In addition to all the political activity in July, as well as being a growing leisure tourist destination, the city hosted two major sporting events. The 17th FINA World Championship and the Hungarian edition of Formula 1. Both events went off without a hitch and were a testament to the city’s ability to orchestrate and accommodate so many visitors. Of course, “it’s not over until the fat lady sings” goes the saying as Budapest gears up for the 25th Sziget Festival, dubbed the Island of Freedom, with an expected attendance of nearly 500,000 visitors! This month’s WittyLeaks article is authored by the Ambassador of Ireland on Bloomsday that holds an important cultural connection with Hungary. Enjoy our outdoor dining recommendations, On the Terrace, and enjoy the rest of the summer.

What's On - the program guide

Lake Balaton in August

page 28-29

page 31

contents G20 summit - with the 'usual' results

page 19

05 ON THE RECORD 22-23 BUSINESS Budapest property prices soar; LOT connects Budapest with the US; 06-07COMPANY BRIEFS Heineken sustanability report 08-18 SPAIN FOCUS Interview with Ambassador López Jorrin; 24-25 SOCIETY Trade counsellor; Iberostar; CAF; Seat; Cervantes Institute; Spanish tourism; Zenit 26-27 TERRACE Hoteles; Opera in the glass Outdoor dining recommendations

19 ANALYSIS 28-29 WHAT’S ON G20 in the shadow of the Trump-Putin Concerts, festivals, events and meeting

PUBLISHER

AND DON’T FORGET

monthly in print - daily on the web

www.dteurope.com

20 WITTYLEAKS by the Ambassador of Ireland

21 DIPLOMACY Interview with Slovenian Prime Minister

exhibitions in and out of Budapest

30-31 WINE & GASTRONOMY Generosa is worth taking seriously; Pretty in pink; Balaton in August

Karl Erjavec

PUBLISHER: Peter Freed EDITOR: Tamás Varga 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, Tamás Magyarics, Ágnes Weninger, Pat Kelly PHOTO CONTRIBUTORS: Ádám Samu/AIRportal.hu (Cover), Pixabay.com, Shutterstock.com, Dávid Bíró/Noguchi Porter Novelli, Mark Mackenzie/

BRITISH FOCUS - COMING SOON

www.markmackenzie.co.uk, Győző Dósa/www.beloved.hu, Zsolt Burger/MFAT, Felipe J. Alcoceba/Spain Tourism Board, Juan Serrano/Spain Tourism Board, SEAT, Bundesregierung/Kugler, Embassy of Ireland, Attila Németh/US Embassy, Zsolt Czeglédi, Annarózsa Mészáros, CAF, Iberostar Grand Hotel Budapest, Heineken, Giovanni de Sandre, NASA, Intercontinental Budapest, Tamás Kaunitz/www.afstudio.hu, www.tamaspal.hu, István Király-Fotográfus/www.kiralyfotografus.com, Sándor Berta/info@stereoteam.hu, Remíz Restaurant, Georg Grainer Fotografie, Ágnes Weninger, Billionphotos.com, Miklós Szabó/www.szabo-miklos.hu, MTI Photos: Szilárd Koszticsák, Balázs Mohai, János Vajda, Sándor Ujvári, Lajos Soós, Noémi Bruzák, Attila Balázs, Zoltán Máthé

Diplomacy&Trade will present a special Focus on British-Hungarian relations. Since the Brexit vote, Hungarians working – or wanting to work – in the United Kingdom have become uncertain about the future, and talks between the UK and the EU have, so far, not made the situation any clearer. Companies are also concerned. Several financial firms are contemplating moving from the City of London to EU cities and the Hungarian government is among those hoping to attract EU agencies currently based in the UK. Meanwhile, in Hungary, there are rumors that TESCO may be considering leaving the country. These are some of the issues we plan to discuss with the British ambassador, the UK Trade & Investment, the British Chamber of Commerce in Hungary and others.

4 Book 1.indb 4

NEWSSTAND PRICE: HUF 1,710 or EUR 6 - Subscriptions are available for an

annual fee of EUR 72 in Hungary, or EUR 90 to all other destinations. SEND REQUESTS AND INQUIRIES TO DUAX KFT. H-1034 Budapest, Bécsi út 60. TELEPHONE [+36-70] 320-3051 | FAX [+36-1] 350-5660 E-MAIL editor@dteurope.com | ADVERTISING adsales@dteurope.com

We welcome inquires for advertising in this issue. PLEASE CALL TAMÁS VARGA FOR FURTHER INFORMATION +36 209350250 - tvarga@budapestweek.com A U G U S T

2 0 1 7

D I P L O M A C Y

T R A D E

photos by

COPIES ARE AVAILABLE AT SELECTED RELAY AND INMEDIO OUTLETS IN MAJOR HUNGARIAN CITIES.

ÁGNES WENINGER, BUNDESREGIERUNG/KUGLER, SHUTTERSTOCK.COM

Peter Freed

w w w . d t e u r o p e . c o m

7/31/17 11:15 AM

on the record

cooperation, was, in connection with the Hungarian Presidency of the V4, the role of these countries in the European Union. The patrons of the Summer University were the foreign ministers of the V4 countries: Péter Szijjártó, Minister for Foreign Affairs and Foreign Affairs of Hungary; Miroslav Lajčák, Minister for Foreign and European Affairs of the Slovak Republic; Witold Waszczykowski, Foreign Minister of Poland and Lubomír Zaorálek, Foreign Minister of the Czech Republic. The two-week international event was attended by 21 Master or PhD students and researchers from 39 countries. Most of the participants were from the V4 countries, the Western Balkans (Montenegro, Serbia, Macedonia, Albania, Moldova) and the Eastern Partnership countries (Armenia, Azerbaijan, Georgia, Ukraine and Belarus) and Italy, Canada, the United States and Israel. "The main goals of the V4 presidency, which began as of this July, are defined by the four pillars of the period, which also express the kind of Visegrád region that we will envision in the future. The region can succeed in achieving its goals if it is both European and regional, digital and global," said Krisztina Varju, the ministerial commissioner for the current Hungarian V4 Presidency, at the opening of the Antall József Summer University. "The aim of the Hungarian Presidency is to participate, together with European partners, in the most important EU debates. We also want to help connect the transport, energy and digital systems of the region, connect their social connections, digitalization and R&D, work together with global partners to solve global problems and strengthen the Visegrád brand," she added.

photos by

SZILÁRD KOSZTICSÁK/MTI, DÁVID BÍRÓ/NOGUCHI PORTER NOVELLI, BALÁZS MOHAI/MTI, MARK MACKENZIE/ WWW.MARKMACKENZIE.CO.UK

HUNGARIAN PRESIDENT AT THREE SEAS INITIATIVE SUMMIT This July, the Polish capital Warsaw hosted the ‘Three Seas Initiative’ summit where Central European leaders – including Hungarian President János Áder – discussed various aspects of security. The initiative is made up of 12 Central and Eastern European EU member states: Austria, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia. The summit also had a special guest, U.S. President Donald Trump who stopped by the Polish capital on the way to the G20 meeting in Hamburg, Germany. Regarding the Warsaw meeting, President Áder told Hungarian government media that military security is guaranteed by transatlantic cooperation, which essentially means cooperation within NATO. He added that US President Donald Trump “committed himself unambiguously” to this cooperation at the Warsaw summit. President Áder also mentioned increasingly close cooperation in the field of energy security between these 12 EU member states. The agenda of the summit included the topics of security and climate. On security issues linked to migration, more states appeared to prioritize protecting Europe’s external borders and stressed that the effectiveness of international cooperation on terrorism must improve in order to maximize the security of European citizens, Áder added. The importance of upholding the Paris Climate Agreement was also emphasized despite President Trump’s opposing view on the matter. The Hungarian President said that participant countries were in full agreement when it came to military security and energy security. Differences only emerged over the schedule of implementation, because “not everyone is so committed to action.” He said that some countries had fallen behind schedule on things they had undertaken. When it comes to migration, Áder said some countries emphasize solidarity, while others, including Hungary, put the stress on protecting the common borders of the EU. Estonia argued that quotas were not working because migrants sent to one of the countries quickly moved on to another. Commenting on US President Donald Trump’s participation at the meeting, János Áder said the new American administration “considers these 12 countries as partners” and looks to this part of the world as a region with a population of 100 million people.

V4 PRIME MINISTERS MEET WITH PRESIDENT OF EGYPT

In the course of the Visegrád Four (V4) summit of Visegrád Group Prime Ministers in Budapest on July 4, the participants met the President of Egypt, Abdel Fattah el-Sisi. The main topics of their meeting included the relations between the EU and Egypt, new security challenges, as well as economic cooperation. Other topics of the joint meeting of Czech Prime Minister Bohuslav Sobotka, Hungarian Prime Minister Viktor Orbán, Polish Prime Minister Beata Szydlo, Slovak Prime Minister Robert Fico and the President of Egypt included Egypt’s role in tackling regional security problems, the fight against terrorism, tackling illegal migration and energy security. The V4 countries are eager to continue to enhance the EUEgyptian relations. They can offer their experiences to Egypt – in particular, in education and the development of renewable energy sources. The V4 Prime Ministers also appreciated Egypt’s positive role in managing migration flows. At the same time, however, they urged improvements of its democracy, the rule of law and the protection of human rights, which are among the priorities of EU countries’ foreign policy. According to a joint statement, the V4 and the Arab Republic of Egypt agreed that tackling the current migration crisis requires first and foremost addressing its root causes. While they appreciate the efforts of the government of Egypt to curb illegal migration, the leaders agreed that close cooperation with the countries of origin and transit should be reinforced. The V4 and Egypt underlined the importance of strategic partnership established between the Arab Republic of Egypt and the European Union (EU) and reiterated their determination to further invest in comprehensive, mutually beneficial and future-oriented relations. The V4 declared its full support to the Arab Republic of Egypt to strengthen its ties with the EU. The V4 and Egypt affirmed their readiness to pay particular attention to strengthen their economic ties and endeavor to increase the volume and the level of their bilateral trade. They agreed to continue to encourage their respective companies to promote mutually advantageous cooperation, increase investments, establish joint venture companies and continue their cooperation, including collaboration in third markets, particularly in the fields of industry, agriculture, transportation, finances, telecommunication, tourism, as well as other areas.

HUNGARIAN V4 PRESIDENCY KICKED OFF WITH SUMMER UNIVERSITY Nearly 40 students and researchers from more than 20 countries arrived in Budapest this July for the József Antall Summer University. The event, organized for the fifth time, has received nearly 200 students in Hungary through the years. Participants discussed the possibilities for the Visegrád countries within the European Union, opportunities that can be measured in terms of co-operation and economic performance. The main theme of this year’s event, which focused on the competitiveness of the Visegrád countries (Hungary, the Czech Republic, Poland and Slovakia) and their most effective forms of w w w . d t e u r o p e . c o m

Book 1.indb 5

D I P L O M A C Y

T R A D E

A U G U S T

2 0 1 7

UPCOMING NATIONAL DAYS August 1 6 9 14 15 15 17 20 24 25 27 29 31 September 2 7 8 16 18 21 21 23

Switzerland Bolivia Singapore Pakistan India South Korea Indonesia Hungary Ukraine Uruguay Moldova Slovakia Malaysia Vietnam Brazil Macedonia Mexico Chile Malta Armenia Saudi Arabia

National day Independence day Independence day Independence day Independence day National day National day National day Independence day Independence day Independence day National day National day National day Independence day Independence day Independence day National day National day National day National day

ISRAELI PRIME MINISTER MEETS WITH V4 LEADERS During his four-day official visit to Hungary, Israeli Prime Minister Benjamin Netanyahu took part in a Visegrád Group (V4) meeting in Budapest. The leaders of the V4, met with the Israeli PM under Hungary's presidency of the group to discuss energy, innovation, and research and development. Other topics on the agenda included discussions on the migrant crisis, the EU's pay decisions and social rights pillar. Prime Minister Viktor Orbán welcomed the leaders to the Pesti Vigadó event center in Budapest. Speaking at a joint press conference after the meeting, Netanyahu said that "the great challenge that faces all of us is the threat posed by the rise of militant Islam and the sparks of terror that it sends flying through the Middle East and sweeping into Europe, Africa and elsewhere, Asia." Prime Minister Viktor Orbán announced that, at the initiative of Prime Minister Benjamin Netanyahu and the V4 countries, a joint task force will be set up to further the fight against terrorism. He also said that they will elaborate the details for establishment of a joint task force to promote technological cooperation. He stressed that the Visegrád countries will urge the EU to appreciate the efforts made by Israel in the interest of its region’s stability, as these efforts are also in Europe’s best interests, given that they protect the continent against ever more migrant invasions. The Israeli Prime Minister expressed appreciation for the position of the V4 countries in relation to Israel. He observed that Israel receives very frequent criticism from Europe, despite the fact that it is the only democracy in the Middle East, the only country in the region where Christians are safe, and where their communities are not only surviving, but are growing. Israel is a bastion of European and Western values in the region, he stated. He also called for redefining relations between Israel and the European Union.

HUNGARIAN RESEARCHER WINS BRITISH ECONOMICS PRIZE

27-year-old Hungarian researcher Gergely Raccuja has won the most prestigious British economics prize, the Wolfson Economics Prize, which the second largest recognition in economics in the world after the Nobel Prize, The GBP 250,000 Prize posed the question ‘How can we pay for better, safer, more reliable roads in a way that is fair to road users and good for the economy and the environment?’ The Prize’s website says Gergely’s entry, ‘Paying for road use could be Miles Better’, argued that to restore trust between politicians and motorists, fuel duty and VED should be scrapped and replaced with a simple and fair distance-based charge that also captures road and environmental impacts. The lighter and cleaner your vehicle is, the lower the per mile charge. The system will boost investment and update the way we run roads to ready them for a new generation of electric and autonomous vehicles. Drivers won’t be asked to pay more overall, paying in proportion to the distance they drive each year. The charge will be collected by insurers who already manage all data necessary for calculating the charge. When drivers pay their insurance, they’ll also pay their ‘road bill’, thus, avoiding issues of privacy and reducing administration costs. Gergely Raccuja was born in Budapest and moved to the UK in 2011. He studied Politics, Urban Planning and Italian at UCL, graduating in 2015 with First Class Honors. In January 2016, he started as a Graduate Transport Planner at Amey Consulting in Birmingham.

5 7/31/17 11:16 AM

company briefs NEW KOSHER SLAUGHTERHOUSE OPENS

World renowned cup noodles producer NISSIN Foods inaugurated its new plant in Kecskemét, which will also be their European base. The EUR 33 million greenfield-investment plant, built right next to the old one, means a substantial capacity-increase in production volume. According to the company, the success of the Hungarian operation since 2004 was the most important factor during the decision-making process. Since 1948, Tokyo-based NISSIN Foods Corporation has been one of the most important cup noodle producers in the world, supplying millions of people on all continents with instant quality noodles. In 2017, the group had a revenue of USD 4,6 billion, employing 12,000 people. NISSIN Foods Ltd. in Hungary is also engaged in noodle production. Their revenue had a massive 86% increase compared to 2015, while the number of employees also increased by almost 10%. According to a statement by the Ministry of Foreign Affairs and Trade, the key importance of the reinvestment by the Japanese company is the strong connection with the Hungarian food and agriculture sector. The Japanese pay special attention to quality ingredients, so their trust in Hungary is a positive acknowledgement of Hungarian farmers and their products. Japan is the most important market of Hungarian agricultural products outside of Europe, and also the most important Asian investor in Hungary: the FDI value from Japan is estimated to reach USD 4 billion, while Japanese companies employ more than 30,000 Hungarians. At the inauguration, Deputy State Secretary of the Ministry of Foreign Affairs and Trade, Szilveszter Bus, pointed out that the investment of the highly regarded Nissin group is of great significance to Hungary. One reason is because it is being realized in the key sectors of agriculture and food industry. Many people in Hungary relish Japanese gastronomy and, likewise, Hungarian high-quality food is valued in Japan. This is a reason Japan is Hungary’s largest market for food products outside Europe. He added that “we are pleased to see the revenue and profits of the Hungarian subsidiary of Nissin steadily rise along with the number of Hungarian employees. We are certain that with the development of Nissin’s manufacturing capacity, these numbers will continue to grow”.

6 Book 1.indb 6

A U G U S T

2 0 1 7

stay car parks. Holiday Parking now offers 2,525 spaces for motorists, providing parking for several days or even several weeks, at favorable rates. Enhanced security conditions are in place in the asphalted car park; parked vehicles are protected by a CCTV system, which also monitors entry and exit through the barriers. The project of approximately EUR 3 million (nearly 1 billion HUF) is part of BUD 2020, Budapest Airport’s

D I P L O M A C Y

T R A D E

ZSOLT BURGER/MFAT, PIXABAY.COM, BUDAPEST AIRPORT, ZOLTÁN MÁTHÉ/MTI, SHUTTERSTOCK.COM

NISSIN FOODS INAUGURATES NEW PLANT IN KECSKEMÉT

Budapest Airport’s latest car park development has been completed in less than two months, adding another one thousand new parking spaces to the existing car parks near Terminal 2. According to a statement by Budapest Airport, one of the country's largest continuous car parks was created at Terminal 2 after the completion of the latest phase in the expansion of its long-

photos by

five-year development program, in the course of which EUR 160 million (about 50 billion HUF) will be spent on upgrading Ferenc Liszt International Airport. As part of the parking investment, the Aeropark Aircraft Museum was relocated and significantly expanded, and another 150 meters of covered walkways was built, linking the existing sidewalks to Terminal 2. This is the second time within a year that parking capacity was expanded by one thousand spaces, which is attributable to the dynamic increase in passenger traffic. According to Manel Moreno, head of commercial landside services, another reason for the popularity of airport parking is that Budapest Airport offers parking products in various different categories and prices, from just a few hundred forints per day to Business Parking, tailored to the needs of business travelers. The airport operator also offers attractive discounts and promotions in its online booking system. Motorists currently have a choice of five different car parks, based on the length of their journey, the planned duration of their stay at the airport and the distance of the parking facility from the terminals. All in all, Terminal, Business, Holiday, Holiday Plus and Holiday Lite Parking offer nearly 4,700 spaces.

1000 NEW PARKING SPACES AT BUDAPEST AIRPORT

JÁNOS VAJDA/MTI, SÁNDOR UJVÁRI/MTI, GYŐZŐ DÓSA/WWW.BELOVED.HU

In its new plant constructed as part of a EUR 97 million investment, Quality Pack Zrt., of the HELL Group will produce approximately 1.2 billion pieces of 250 ml aluminum beverage cans annually. In addition, major developments are taking place in the company’s filling, logistics and commercial units, as well. Having developed, in just over ten years, into Hungary's market leader and an internationally dominant producer of energy and soft drinks, HELL has implemented investments worth over HUF 50 billion over the past decade near Szikszó, as a result of which, the company now employs more than 540 people in the disadvantaged Borsod-Abaúj-Zemplén county in NE Hungary. Due to ever increasing domestic and export market demands, in 2016 HELL Energy decided to implement a complex series of developments: in order to manage the increase in the volume of production and to ensure a quality product that meets the safety requirements of the export markets, the aluminum can factory was built and, in the framework of a greenfield investment, by 2019, a 5,000 square-meter bottling plant will be built with new production lines that expand the existing capacity with manufacturing and service facilities. The 42,000 square-meter Quality Pack can factory inaugurated by Deputy Minister for Foreign Affairs and Trade László Szabó and Quality Pack's Managing Director Barnabás Csereklye, has a capacity to produce 1.2 billion state of the art, 250 ml aluminum cans per year (3,000 per minute), at the Szikszó factory, with one of the most modern and efficient technologies available. With the completion of the development, HELL's annual production capacity is expected to grow by 700-800 million pieces, which means quadrupling the previous volume. The investments, of which the total value amounts to approximately 30 billion and which have created 320 new jobs are supported under an individual government decision by the Hungarian government – with the assistance of Hungarian Investment Promotion Agency (HIPA) – with a EUR 23 mn non-refundable subsidy.

A new kosher slaughterhouse and poultry processing plant has been built in the village of Csengele, Csongrád County in SE Hungary with a greenfield investment of some HUF 2.8 million forints (EUR 9 mn); the new facility was officially inaugurated early this July. At the inauguration ceremony, Minister of Agriculture Sándor Fazekas said that the new plant, which will create 80100 new jobs in its first phase, is one of the most significant investments for Hungary’s waterfowl sector. The project by Quality Poultry Limited (QP Ltd.), which is majority owned by the Unified Israelite Congregation of Hungary (EMIH), is in harmony with the Hungarian government’s agriculture policy, the Minister declared. Hungarian waterfowl products, which are based on hundreds of years of tradition, are Hungaricums [Hungaricum is a thing or phenomenon that is unique to Hungary and therefore represents great value for the Hungarians – the ed.], and thus mean much more than just food products. “The sector still provides jobs for many people today, and particularly in the Southern Great Plain region. The new plant will contribute to enabling the waterfowl industry to, once again, embark on a growth trajectory,” Sándor Fazekas said. The state-owned Hungarian Export-Import Bank provided a loan of HUF 1.75 billion for the slaughterhouse’s first phase of construction. The next phase, towards which the Government will contribute funding of 15%, will involve the expansion of the plant and an increase in the number of new jobs to 280. At the event, Ashkenazi Chief Rabbi of the State of Israel David Lau stressed that the plant would enable Jews throughout the world to become acquainted with the excellent quality foods produced in Hungary and to enjoy the advantages of a kosher diet, adding that the investment will provide jobs for many local residents. Executive Rabbi of the EMIH Slomó Köves told reporters that the plant is also a symbolic expression of the cohabitation of Hungarians and Jews, in view of the fact that no product is more Hungarian or more Jewish than fattened goose. 2,400 fattened geese-a-day are planned to be processed at the plant, thanks to which the rearing of fattened geese in Hungary, which has a long tradition but has experienced a slump in recent years, is expected to increase by some 15%. The geese processed at the plant will be purchased from around the region, primarily from Csongrád and Bács-Kiskun counties. The new facility in Csengele will be the second plant in Hungary after the one in Jászberény to specifically cater to the production of kosher goose liver and fattened goose products.

photos by

HUNGARY’S FIRST ALUMINIUM BEVERAGE CAN FACTORY

w w w . d t e u r o p e . c o m

7/31/17 11:16 AM

company briefs EBRD IN FINANCIAL RESTRUCTURING OF BUDAPEST AIRPORT

photos by

ZSOLT BURGER/MFAT, PIXABAY.COM, BUDAPEST AIRPORT, ZOLTÁN MÁTHÉ/MTI, SHUTTERSTOCK.COM

SICTA CONTINUES TO EXPAND FLAGSHIP MANUFACTURING FACILITY The French automotive supplier specializing in metal foundry, Sicta is on a roll implementing an estimated EUR 11 million project in Felsőzsolca, NE Hungary. The project is subsidized by the Hungarian government. Sicta, a subsidiary of Citele, which is a group of companies involved in automotive, energy, aviation and other industrial arenas, specializes in the high-output assembly-line manufacturing of cast parts with a solid core. As a leading global supplier of the automotive industry, Sicta owns interests in France, China, Bulgaria, and Hungary, according to a press release by HIPA. As its main profile, Sicta Hungary is a gravitational foundry, producing cast-aluminum turbo compressors for the automotive industry. Currently employing 380 people, Sicta has invested about EUR 30 million of its equity resources in its Hungarian operation. Over time, the venture has evolved into a strategic base and flagship manufacturing facility of the company, not only in terms of the number of employees but also in floor space. Additionally, the company has contracted an increasing number of suppliers, now cooperating with no fewer than 200 small and medium-sized enterprises in Hungary. The new project includes the building of a new manufacturing facility, as well as the acquisition of new machinery and tooling for the Felsőzsolca facility. All of this will result in a 45% increase in manufacturing capacity and a boost of employees on payroll to 500. The Hungarian Minister for Foreign affairs and Trade, Péter Szijjártó said that the investment further reinforces Hungarian-French economic relations; France is the fifth most significant investor in Hungary, and is Hungary’s fourth most important trade partner. Trade flow between the two countries exceeded 8.5 billion euros last year, and increased by a further 4.3% during the first four months of this year. According to the President of Sicta Hungary, André d'Ales, instrumental in this process has been an investor-friendly political and tax climate, as well as the central and local governments giving much-needed support in terms of collaboration and downright support, not to mention the excellent qualifications of the available Hungarian work force. Another factor he mentioned was the proximity of Miskolc University, with which Sicta has established an agreement for dual training. Sicta is a founding member of the initiative to resuscitate foundry engineering training in Hungary. As a result, there are already four students studying foundry under the Faculty of Material Science at the University of Miskolc.

The European Bank for Reconstruction and Development (EBRD) is taking part in a financial restructuring of the company that operates the Ferenc Liszt international airport in Budapest in an effort to attract greater international investment and improve the airport’s operational performance. According to EBRD, it will provide Budapest Airport Co. Ltd. with a senior note of EUR 100 million. This is part of an overall financing package worth up to EUR 1.32 billion – split between a privately placed senior note facility of EUR 525 million and a banking facility of EUR 795 million – to amend and extend existing debt facilities maturing at the end of 2019 and 2020. Budapest Airport is ultimately owned by the international investors’ group AviAlliance GmbH with 55.44% (owned by PSP Investments); Malton Investments with 23.33% (owned by GIC Infra Ltd); and CDPQ with 21.23%. The airport operator holds a 75-year concession to upgrade, operate and manage the Ferenc Liszt International Airport. In 2016 the airport registered almost 11.5 million passengers. Hungary’s efforts to boost the number of tourists visiting the country are expected to benefit the future utilization of the airport. As Sue Barrett, EBRD Director, Transport, said, “we are very pleased to join this effort and support this flagship project for

Hungary. The package will encourage the introduction of new capital market structures for mature infrastructure projects, develop secondary market transactions for public-private partnership projects attracting leading institutional investors and allow – last, but not least – customers of Budapest Airport to benefit from an improved operating performance.” Since the beginning of its operations in Hungary, the EBRD has invested over EUR 2.9 billion in some 175 projects in the country. Strengthening infrastructure development and local capital markets are among the Bank’s priorities in accordance with its concept of transition qualities, which says that successful and sustainable economies must be competitive, resilient, green, well-governed, integrated and inclusive.

CEVA PHYLAXIA INAUGURATES STATE OF THE ART VACCINE PLANT Ceva Santé Animale, one of the top 10 animal healthcare companies worldwide and one of the fastest growing, has opened its new European vaccine production facility in the Hungarian capital. Additionally, a further 3,900 m2 of space, containing more than 100 pieces of new equipment, were added to the existing Budapest campus at a cost of EUR 25 million, creating 60 new jobs. Ceva Phylaxia has been doing business in Hungary for more than 100 years. Today, the Budapest campus lies at the center of a global vaccine network and is the single largest R&D and production center. Over 95% of the site’s current production is exported to countries around the world. “We are very proud of Hungary’s long, innovative tradition in the research and production of veterinary vaccines. Since 2000, we have gained over 2,000 new global marketing authorizations, resulting in a 20 times increase in production on the site. In turn, this has created over 300 new positions. Although we take pride in our history, we are investing in Hungary for the future. Our teams here have demonstrated their ability to turn innovation into exponential growth,” the Director of Ceva’s Biology Unit, Thierry le Flohic said. The newly developed robotized production lines use all the latest technology. Antigen production capacity has doubled, and two separate laboratories dedicated to inactivated antigen production have also been added. “Innovation is more than ever before the key to success. But in an increasingly competitive world, with customers constantly asking for improved efficacy and quality, innovation is also more and more complex and expensive to deliver. As a result, individual scientists or even campuses like Budapest are unlikely to succeed alone. Our team here has delivered exceptional results but as part of a global network that brings together skills from the USA, Canada, Japan, China and Brazil. I am very proud of what they have all achieved, together." said Dr. Marc Prikazsky Chairman & CEO of Ceva. Part of the new production facility will also be dedicated to producing new technology vaccines used in poultry hatcheries. These vaccines use a virus strain named after József Marek, a Hungarian veterinary scientist who worked at Phylaxia, ensuring that his innovation will continue to have impact through the billions of doses of vaccine that will be produced in the new facility and used by poultry producers throughout the world.

MOL BUYS POLYOL LICENSE

HUNGARIAN DRUG GREENLIGHTED FOR THE EU

Half a year after the announcement of its 2030 strategy, Hungary's MOL Group has reached an important milestone in its industrial transformational journey. The license agreements signed with Evonik and thyssenkrupp, will enable MOL to produce propylene oxide, a key component for the production of polyether polyols. MOL has released a statement that it intends to become a significant producer of polyether polyols, high-value intermediates for products applied in the automotive, packaging and furniture industries. MOL Group has entered into key contracts related to core technologies of the Polyol Project, which was announced in 2016 as part of the first investment cycle of the MOL 2030 long-term strategy. The contracts signed with the two companies concern the purchase of technology licenses and process design packages for the so called HPPO (hydrogen peroxide to propylene oxide) technology of propylene oxide production. The contracts also contain binding offers

The Hungarian pharmaceutical company Gedeon Richter Plc. has announced that the European Commission has granted marketing authorization to Reagila® (Cariprazine) a novel antipsychotic for the treatment of schizophrenia in adult patients. This decision is applicable for all member states in the European Union. According to a statement by Richter, Cariprazine was discovered by Richter scientists and is licensed to Allergan in the U.S. and Canada. Following its FDA approval in September 2015, the product was launched in the U.S. in March 2016 under the trademark of Vraylar for the treatment of both schizophrenia and bipolar mania. In August 2016, Richter and Recordati signed an exclusive license agreement to commercialize Cariprazine in Western Europe, in Algeria, in Tunisia and in Turkey. The European approval of usage for the treatment of schizophrenia includes results from three short-term, placebo and partly active controlled positive trials in over 1,800 patients and one long-term trial, using the change from baseline in the scale, assessing the severity

w w w . d t e u r o p e . c o m

Book 1.indb 7

and pre-agreements regarding the later engineering and execution phases of the HPPO units by Thyssenkrupp and the purchase of proprietary catalysts from Evonik. The licensor of the hydrogen-peroxide unit for captive use is Evonik, while a consortium formed by Evonik and Thyssenkrupp Industrial Solutions licenses the propylene oxide unit.

D I P L O M A C Y

T R A D E

A U G U S T

2 0 1 7

of schizophrenia symptoms. A clinical trial with positive results was also carried out in patients suffering from predominant negative symptoms of schizophrenia.

7 7/31/17 11:16 AM

GREAT OPPORTUNITIES AHEAD INTERVIEW WITH JOSÉ ÁNGEL LÓPEZ JORRIN, SPANISH AMBASSADOR TO HUNGARY

8 Book 1.indb 8

Together in EU and NATO Spain and Hungary are members of the European Union and NATO. According to Ambassador López

Jorrin, “both countries are loyal partners and members of these organizations. We share the same concerns. Hungarian and Spanish officials regularly meet with each other within these organizations; we are both mindful of the need to cooperate in fields like security and fighting against terrorism. Bilateral contacts are good and our FACTS COMPARED AREA country comparison to the world POPULATION country comparison to the world POPULATION GROWTH RATE country comparison to the world BIRTH RATE country comparison to the world LIFE EXPECTANCY AT BIRTH country comparison to the world NET MIGRATION RATE country comparison to the world GDP - PER CAPITA (PPP) country comparison to the world UNEMPLOYMENT RATE country comparison to the world TELEPHONES - MOBILE/CELLULAR country comparison to the world AIRPORTS country comparison to the world

A U G U S T

2 0 1 7

different ministries cooperate regularly as befits EU partners. Spain belongs to the euro zone while Hungary remains with the Forint. Yet, this has not prevented our bilateral trade and investment from improving year by year given that we both share the single market as our common denominator. This cooperation is also visible in the field of security and HUNGARY

SPAIN

93,028 sq km 110 9,874,784 (July 2016 est.) 91 -0.24% (2016 est.) 216 9.1 births/1,000 population (2016 est.) 207 75.9 years 92 1.3 migrant(s)/1,000 population (2016 est.) 57 $26,200 (2015 est.) 70 6.8% (2015 est.) 79 11.786 million 76 41 (2013) 104

505,370 sq km 52 48,563,476 (July 2016 est.) 29 0.84% (2016 est.) 130 9.4 births/1,000 population (2016 est.) 205 81.7 years 22 8 migrant(s)/1,000 population 13 $36,500 (2016 est.) 51 19.7% (2016 est.) 174 50.926 million 30 150 (2013) 38

D I P L O M A C Y

T R A D E

DÁVID HARANGOZÓ

Ambassador López Jorrin arrived to Hungary almost three years ago. He tells Diplomacy&Trade that “the very first objective at the time of starting my tenure here was a very personal one: to get to know Hungary and the Hungarians. That is because we are two countries with rich history but we do not have a lot of direct contact, so, information is very often lacking about each other. Thus, the first idea was to get to know Hungary better in order to understand it more deeply. All the reports that I had received beforehand said that our relations were very good, so, basically, my other objective was to keep these good bilateral political relations in good shape and improve the economic and cultural relations as much as possible.” This year marks the 40th anniversary of the establishment of diplomatic relations between Spain and Hungary. As to how bilateral relations have evolved over these four decades, the Ambassador recalls that they have basically developed from zero. “It is a splendid situation in which we find ourselves today. In 1977, our relations were basically non-

existent. After the Second World War, as it is well known, there were different political regimes in the two countries, which meant that we neither had political relations, not even trade or investments. The improvement of Spanish-Hungarian relations started in the 1960s, little by little, but diplomatic relations were reestablished only in 1977. At that time, we had to start to renew the network of agreements.” He quotes statistics that in 1967, the volume of bilateral trade was just over USD 11 million. In 2016, this figure was around USD 4,500 million. “We opened embassies, we organized state visits: the King of Spain visited Hungary as well as different ministers and the President of the Republic of Hungary visited Spain. These relations reached their peak when we both became members of NATO and the European Union; thus, we came together again towards the end of the 20th century through these large organizations, after many decades of dictatorship in both countries.”

photo by

BY SÁNDOR LACZKÓ

w w w . d t e u r o p e . c o m

7/31/17 11:16 AM

spain focus defense, in this context soldiers of both countries have served in different missions in Afghanistan and Iraq, although not at the same time. Last year, a Spanish team of four Eurofighter aircraft took over the NATO patrolling of the Baltic air space from a Hungarian team of Gripen fighter planes.”

Moral power of arbitration Unlike Hungary, Spain is a kingdom. And like many other European countries such as the Netherlands, Sweden, Norway or Denmark, Spain is a constitutional monarchy and a parliamentary democracy. The current king, Felipe VI, took over three years ago, after the abdication of his father Juan Carlos I. His popularity is strong among Spaniards, with up to a 60% approval rate. The Ambassador stresses that “the Spanish monarchy is one of the most respected institutions by our citizens according to the Sociological Research Center. I think everyone agrees that it brings stability and certainty to our institutional life. Basically, these were the two main objectives for which the reinstatement of the monarchy was instrumental. In fact, except for a period in the 1930s, Spain has always been a monarchy, even under Franco. Spain today is a fully-fledged parliamentary democracy; people participate in the normal dynamic political life including elections every 3-4 years. The monarchy is always acting as the key to the vault of our institutional construction, effectively guaranteeing the stability and continuity of the system and it exercises a moral power of arbitration. In fact, the monarch has no executive power at all, his role is purely symbolic, as he represents the country. The King signs the laws – he cannot ‘not sign’ a law, it is not within his constitutional powers. The monarch is the Head of State, and also the Head of the Armed Forces. As for the rest, it is no different than in any other European country. As I said, of all political institutions, the Monarchy commands in Spain the greatest respect.”

DÁVID HARANGOZÓ

PIXABAY.COM

photo by

photos by

Minority government, a new situation Currently, Spain has a minority government. Ambassador López Jorrin is of the view that in everyday life, this minority government makes more newspaper headlines than would be the case otherwise. “It is the first time since the restoration of the monarchy that we have a minority government. Until now, either the socialists or the Popular Party have always had an absolute majority or they were in coalition with the smaller parties to ensure a governing majority in Parliament. Today, Parliament is very much fragmented, which leads to the minority government having to constantly look for partners to obtain a majority for each and every vote in Parliament. It is a steep learning curve, as all indications are that this is going to be the situation for the coming years. All politicians are learning how to concede, how to yield, how to reach compromise and manage this new situation successfully. This minority government is working: the budget and the ceiling for expenditure have both been approved. These are the main issues impacting people’s everyday lives. In this context, I can say that Parliament’s role has increased substantially, more than at any other time.” w w w . d t e u r o p e . c o m

Book 1.indb 9

Economic relations: large room for improvement The Ambassador considers bilateral economic relations are satisfactory noting that the trade balance is very favorable to Hungary. “As I mentioned, in 1967, the volume of bilateral trade was a mere USD 11 million. At that time, the value of Spanish exports to Hungary was about four times that of imports. In 2016, however, when bilateral trade amounted to USD 4,500 million, Hungarian exports exceeded Spanish exports by about EUR one billion.” According to data from the Spanish Ministry of Economy and Competitiveness, the top five categories of Spanish exports to Hungary are ‘automobiles and motorcycles’; ‘other capital goods’; ‘chemical products’; ‘automotive components’; and ‘textiles and clothing’, while the main groups of Hungarian exports to Spain include (in order of importance) ‘automotive components’; ‘other capital goods’; ‘automobiles and motorcycles’; ‘chemical products’; and ‘electronic components’. “All this puts the volume of our bilateral trade still at a relatively modest level. It cannot compare, for that matter, with Hungary’s trade with Germany, France or Austria. These are countries that have had traditional

D I P L O M A C Y

T R A D E

A U G U S T

2 0 1 7

economic relations with Hungary for centuries, while we arrived in this market only recently, at the end of the 1960s, and the real push came only when we joined the European Union. At the same time, it also means that the room for improvement in bilateral economic relations is very large, with many opportunities, especially in the fields of technology, in the automotive industry, in the agricultural sector, in infrastructure development or even in the fashion industry,” he adds. As far as Spanish investments in Hungary are concerned, the area the Ambassador mentions is the automotive industry (with firms like Gestamp or F.Segura). As regards tourism, Barcelona and its surrounding areas are at the receiving end of most Hungarian tourist flows (about 80%). However, the Ambassador notes, there a renewed interest to focus on new tourism destinations in Spain, like the Balearic Islands, the Canaries and the south of Spain. Low-cost flights now serve ten Spanish destinations with direct flights from Budapest: Madrid, Barcelona, Alicante, Málaga, Lanzarote, Fuerteventura, Gran Canaria, Tenerife, Mallorca and Ibiza. He points out that “also, more and more tourists are coming from Spain to Hungary because the pricequality ratio is very good. You have fantastic places to visit, reasonable prices in hotels and restaurants, particularly outside Budapest. Furthermore, many people return after discovering Budapest – and that is the best success tourism can achieve: the returning guest.” There are also a number of Spanish students here: 400 in the Erasmus program and 200 medical students. “These numbers are not that big in themselves but they attract families and friends who come to visit,” he adds.

Great interest in culture “In this area, the number one organization to highlight is the Cervantes Institute. It is our flagship, which contributes not only to the teaching of the Spanish language but also to the dissemination of Spanish culture and also of the other Spanish speaking countries as they have no cultural institutes here. We are also very pleased with the existing bilingual sections in Hungarian secondary schools. We bring native teachers to seven of these schools to assist local teachers,” the Ambassador highlights. In propagating Spanish culture, the Embassy is more interested in promoting the presence of young

artists. In the Ambassador’s view it is because “everybody knows Velazquez and El Greco. They promote themselves. We try to promote young artists coming to festivals like Sziget. Hungary is a fantastic place for work. There is a great taste for culture. People here are cultivated, they read a lot. So in our experience, the exhibitions and other events we organize are invariably fully booked.” He adds that “to put it in a nutshell, from a cultural perspective, there is definitely a growing interest towards Spain in Hungary. First and foremost, the number of Hungarians studying Spanish has been steadily increasing in the past years. The Cervantes Institute, for instance, has managed to grow the number of lessons provided to students by 26% in this first semester in comparison to the past year. On the other hand, the permanent presence of Spanish artists in the main stages and festivals of Hungary is a good indicator of how keen the local public has become to names like Plácido Domingo, José Carreras, Jordi Savall, Diego El Cigala or Estrella Morente. All of them, among many others Spanish artists, have performed in stages like MÜPA, the Opera or the Liszt Music Academy – some of the most prestigious concert halls across Hungary.” The Spanish Embassy also tries to promote Spanish gastronomy because there is a lot of room for improvement there, too. “We have recently celebrated the World Day of Tapas with all Spanish restaurants in Budapest participating,” he says.

A good place to retire from “I have tried to visit as many parts of Hungary as I could but I have to say the best of Hungary for me is Budapest. You find very nice architecture, very nice people here. But I also like cities like Szeged or Pécs, the region of Tokaj, the region of Sopron and Győr. For personal taste, I prefer the hillier, more mountainous landscape to the puszta,” Ambassador López Jorrin notes. He says he very much likes Hungarian wine, both red and white. He also likes beer, local beer – “I always taste local beer wherever I go.” The current posting in Budapest is the last one for José Ángel López Jorrin before he retires next year. Earlier, he served Spanish diplomacy in Caracas, Lima, The Hague, Sarajevo, Sofia and Bratislava. “It is not just a compliment to the Hungarian people but I have to say I could not think of a better post than Budapest to retire from,” he concludes.

9 7/31/17 11:16 AM

spain focus

SIGNIFICANT PROGRESS IN TRADE RELATIONS PREDICTABILITY AND REGULATORY STABILITY ARE CRUCIAL FOR INVESTORS

As regards foreign direct investments, Hungary occupies the 15th position in the list of countries by destination of Spain's foreign investments ahead of countries such as Italy, Poland, Belgium or the Czech Republic, which shows the interest the country holds for Spanish investors. However, Hungarian investment flows to Spain have not reached significant levels, yet, and the country ranks 66th among world countries in terms of investment position in Spain. “Spanish investments in Hungary are relevant specially, amongst others, in the electricity supply sector, and the automotive, hotel and textile,

10 Book 1.indb 10

Predictability is crucial According to the Economic and Commercial Counsellor, one of the main factors that attracts Spanish investments to Hungary is the strategic situation of the country in the center of Europe that makes it an interesting location for a foreign company due to the proximity of important markets and production centers. Regarding investments in the hotel sector, it has been a consequence of the increasing attraction of Budapest as a destination for international tourism. This is a sector in which Spanish companies have lot of experience and prestige. In the case of the automotive sector, the proximity to their main clients is an important factor when deciding the location of a new investment so as to establish the plant closer to their clients manufacturing facilities and supply them according to the specifications requested. She points out that the shortage of qualified labor force in Hungary is one factor that is affecting some foreign investors in sectors, like the automotive and hotel sectors. At the same time, she finds it important to mention that one should keep in mind when trying to attract foreign investment that “investing

abroad is a long-term decision, thus, predictability and regulatory stability are crucial factors for companies when taking investment decisions.”

exporters is another important activity. The Office is also in charge of assisting Hungarian companies that want to invest in Spain by providing information and helping them contact ‘ICEX - Invest in Spain’, the institution in charge of Investment promotion, so that they get the support needed.

Responsibilities and partners The Economic and Commercial Office of the Spanish Embassy’s activity is centered on the strengthening of the economic and trade relations between Hungary and Spain. “At the institutional level, we are in contact with the Hungarian Administration at all levels: with ministries in charge of economic and commercial matters and with local authorities, as well as with the institutions involved in international trade and investments, such as HIPA and Hungexpo, and with public companies. Contacts are also maintained with entities and bodies in charge of supervising the conditions of the economic activity and the regulations of economic sectors. The Economic and Commercial Office also works with associations and organizations of different economic sectors that serve as a meeting ground for Spanish companies, like the Chambers of Commerce,” the Counsellor says. Assisting the Spanish companies that want to access the Hungarian market by providing information about the Hungarian market and helping to identify possible partners or business opportunities in Hungary is one of the main missions of the Office. Contacts with Spanish firms established in Hungary and with Hungarian companies that are, or may become, trade partners for Spanish A U G U S T

2 0 1 7

D I P L O M A C Y

Competitive advantages Susana de Ibarrondo believes the future of bilateral economic relations are “fluent, but there is much scope for improvement, especially taking into account the good progress made in recent years and the positive forecasts for GDP growth in both countries. Spain is very competitive in sectors such as infrastructures, civil engineering, water management, renewable energies, automotive, trains and other vehicles and industrial goods, but there is also margin to increase trade in other sectors like new high added value technologies for intensive crops, consumption goods and e-commerce.” She adds that Spain, according to UNCTAD, the UN organization dealing with trade, investment, and development issues, ranks 13th on the list of countries receiving the most foreign direct investment and this is due to the competitive advantages it offers, among which we can highlight its dynamic and open economy, the quality of its infrastructures and logistics and its privileged location as a gateway to the markets of Latin America, North Africa and the Middle East. So, the Iberian country offers a lot of opportunities for Hungarian ventures, as well.

T R A D E

DÁVID HARANGOZÓ

Spanish FDI concentrated in specific sectors

sectors in which our country is very competitive. The actual flows of FDI from Hungary to Spain have been modest with the main target sectors being civil engineering and cinematographic activities,” Susana de Ibarrondo adds.

photo by

“Trade relations between Spain and Hungary are good and show a very positive evolution, particularly since Hungary joined the European Union. Due to historical reasons as well as to the geographical distance between the two countries, Spain has not been one of the principal trading and economic partners of Hungary in the past 40 years. However, significant progress in bilateral economic and trade relations has been made in recent years,” Economic and Commercial Counsellor at the Spanish Embassy in Budapest,” Susana de Ibarrondo tells Diplomacy&Trade. She adds that the bilateral trade between Hungary and Spain has been growing in a continuous and significant way from the early 90’s, with the only exception the years 2008 and 2009, in the midst of the global financial crisis. Thus, in 1995 the bilateral trade between both countries was slightly higher than EUR 420 million, while in 2016 reached EUR 4.14 billion, and in 2017, it is expected to exceed this amount. It is worth noting that, even with the negative effects of the economic crisis that began in 2008, data show that bilateral trade between Hungary and Spain has more than doubled since the entry of Hungary in the European Union. The bilateral balance of trade between the two countries during this period has been favorable to Hungary, although, the trade surplus diminished in 2016 when Spanish exports to Hungary reached EUR 1,538 million and imports from Hungary reached EUR 2,600 million. In 2016, Spain ranked 10th as a customer of Hungary with a share of 3.12% of total Hungarian exports and 15th as a supplier of Hungary, with a share of 1.68% of Hungarian imports. The main characteristic of the sectorial distribution of bilateral trade is the concentration in the automotive sector and machinery. Spain imported from Hungary in 2016 machinery and mechanical appliances which accounted for 28.5% of the total imports from this country, followed by vehicles (22.85%) and electrical appliances and equipment (21.22%). Concerning Spanish exports to Hungary in 2016, the highest monetary value corresponds to vehicles with 27.35% of the total, followed by electrical appliances and equipment (11.6%), machinery and mechanical appliances (9.81%).

w w w . d t e u r o p e . c o m

7/31/17 11:16 AM

spain focus

SUCCESS, PASSION AND COMMITMENT IBEROSTAR’S VENTURE INTO URBAN PORTFOLIO BEGAN IN BUDAPEST

Only recently, Grupo Iberostar, one of the most important Spanish companies in the world, celebrated 60 years of history. Six decades working with its customers and employees on a journey has positioned it at the forefront of the industry with hotels in 16 countries around the world. The owners of Grupo Iberostar have created a company that is one of success, passion and commitment to a job well done. Its history is closely linked with the emergence of tourism in Spain, and is now celebrating the sector’s excellent results from an internationally privileged position. It was in 1956 that Lorenzo Fluxà acquired Viajes Iberia, a company founded in the 1930s, leading to his family’s first venture into the tourism industry and making that year a milestone that would mark the beginnings of what Iberostar has become today.

Expanding the business

photos by

IBEROSTAR GRAND HOTEL BUDAPEST

In 1961, the Fluxá family embarked on its initial venture into the hospitality sector following the acquisition of its first hotel in Playa de Palma. That same year, Lorenzo’s son, Miguel Fluxà joined the company to focus on developing three key business areas: hotels, tourist services and package tour sales. In 1979, Grupo Iberostar opened its first international offices and laid the foundations for the international expansion of its hotel division thanks to the signing of an exclusive agreement with the tour operator Neckermann. Just four years later, the Fluxá family registered the Iberostar trademark, with its familiar

w w w . d t e u r o p e . c o m

Book 1.indb 11

70 Park Avenue, situated in the heart of New York. Continuing the journey of success, the year 2017 features six new openings for Iberostar hotels: in Barcelona and Mallorca in Spain; in Havana and Varadero in Cuba; and in Lisbon, Portugal.

Urban portfolio began in Budapest

star logo. From then on, all the chain’s hotels included its name and by the early 1980s, Iberostar Hotels & Resorts had become a firmly consolidated company. As Miguel Fluxà explains, his father taught him something when he was 12 years old which he believes is absolutely essential: “You have to have an international vocation. Today we can be proud of having moved beyond a boundary that represents a major challenge for any hotel company, and are present in 16 countries with a portfolio of top quality hotels.” After a period of sustained growth in the Balearic and Canary Islands, it was time to look to the international market, and in 1993, the company opened its first hotel in the Dominican Republic, followed by a hotel in Cuba. Later, in 1998, GRUPO Iberostar would revolutionize the sector with the launch of its own airline, Iberworld. The journey was proving to be a major success. The Fluxá family had channeled all its efforts into laying the foundations of Iberostar as it is today. “I have always been obsessed with quality. It is our most valuable asset, as it is the most important aspect perceived by our guests and one that has positioned us at the forefront of today’s international tourist industry”, Miguel Fluxá adds.

D I P L O M A C Y

T R A D E

A U G U S T

2 0 1 7

Diversifying the Group In 2004, the Group created Fundación Iberostar, a foundation aimed at promoting social action and education for development in Spain and Latin America. This period was also one of diversification for the Group, with the founding of the cruise company Iberojet Cruceros. One year later, the fourth generation of the Fluxá family joined the company in order to continue the family tradition. In 2009, the Travel Trade Gazette, a UK-based travel industry publication, named the company "Best Hotel Chain of the Year." In line with its ongoing quest for excellence, Iberostar launched The Grand Collection category with the opening of the Iberostar Grand Hotel Paraíso in Mexico. In 2010, the company ventured into the area of urban hotels with the opening of the Iberostar Grand Hotel Budapest in the Hungarian capital, and the Iberostar Grand Hotel Mencey in Santa Cruz de Tenerife. In 2015, the company’s expansion plans received another boost with the acquisition of the online travel agency almundo.com, and the international travel service provider W2M. 2016 marked the latest major milestone in Iberostar’s 60-year history with the opening of its first hotel in the US, the Iberostar

The urban portfolio of Iberostar includes hotels in Spain (Madrid, Barcelona, Santa Cruz de Tenerife), Hungary (Budapest), Cuba (Havana) and the United States (New York, Miami). Iberostar's urban products all share a common theme: they are housed in historic buildings, in prime locations, in the world’s leading tourism destinations. The Hungarian hotel of the chain also complies with these requirements. In fact, the Iberostar Grand Hotel Budapest, opened six years ago in August 2011, was the first unit of Iberostar’s urban portfolio. The Spanish chain decided to come to the Hungarian capital because it is an excellent business destination. With its gourmet restaurant, a wide range of amenities and a unique design, the hotel has been upgraded by the operator to the Grand Collection – only available in the chain’s holiday resorts before. Reflected in the interior decoration of the hotel is the history of the house and of other buildings in Budapest, especially in the area of Szabadság Square to which many of the hotel’s windows open. In the colors of the rooms, white and red dominate, bathrooms are often separated by a glass wall. The facilities and the interiors have been designed to ensure that the hotel meets the needs of both the leisure and business traveler: from flat screen TVs to iPod docks and wi-fi, there are a variety of amenities available in the rooms.

60 YEARS AT IBEROSTAR: A PASSIONATE JOURNEY

11 7/31/17 11:16 AM

spain focus

A TRAM WORTH WAITING FOR SPANISH VEHICLES PROVE THEMSELVES ON THE STREET TRACKS OF BUDAPEST AND DEBRECEN

According to the Country Director, putting into service the world’s longest tram with such a success rate is one of the highlights of this project for CAF. “Furthermore, we understand that Budapest citizens are highly satisfied with this new acquisition as it increases the quality, comfort and safety of their journeys with a considerable number of low floor trams with wide corridors equipped with air conditioning and camera systems, as well as with easy and comfortable access for strollers and handicapped travelers. We have heard that with the newly developed FUTÁR system, people are aware of which type of tram will arrive next to the stations and they will let one or even two tramways pass, so that they can travel with the new CAF tramways; we love to hear that.” As for the adjustments/modifications in the vehicles that have been in the press, Maria Pérez says modifying or adjusting vehicles during the first years of operation is very common in the railway industry; clients that have had experiences with other vehicle types commonly tend to modify the new vehicles to adapt them to what they have been operating for years. “CAF tailors its products in order to meet the specific needs of each user, even after the final design has been agreed with. In Budapest’s case, the Urbos tramway platform standard main elements that were fine-tuned were the air conditioning and heating system or the camera heaters in accordance to Budapest’s weather conditions and/or to passenger’s requests and some elements were reinforced such as the seat consoles and battery boxes.” In the contract, there is an option for a shipment of another 77 trams to Budapest. “We are now working with BKK and the Municipality of Budapest to increase the number of trams circulating in the capital. BKK has the opportunity to draw down all 77 tramways until 2021, we can only hope that all necessary resources will be assured to do so, so that we can keep working together on modernizing Budapest’s public transport system.”

12 Book 1.indb 12

CAF trams in Budapest… “I guess every foreign company would confirm that public procurement processes in Hungary are quite demanding, and regarding the Budapest tramway tender, the competition was high. Requirements by the Center for Budapest Transport (BKK) were those of a 21st century tramway project with modern technology in which safety and reliability as well as minimizing operating cycle costs were important. The length of the now longest tram in the world and the number of tramways to be delivered in a short period of time were two concepts that differentiated this project with other ones CAF had won in the past. CAF’s offer was competitively priced and technically well developed for Budapest’s network. It was in accordance with the Public Procurement Law specification, which led to a clear decision in the eyes of BKK and the Public Procurement Authorities,” the Country Director stresses. CAF supplied 47 trams for BKK (35 of the 34-meter long type and 12 of the 56-meter long type). “The delivery of the first 25 tramways within approximately 4 months was an exciting challenge for all actors: BKK, the Hungarian Transport Authority, the transport service provider BKV and CAF. We have to emphasize that cooperation in this project with all institutions stated above has been one of the key factors of success. BKK demonstrated, since the project began, a very forward-thinking attitude and interest in modernizing to the best of its ability Budapest’s fleet by minimizing the overall operation costs,” she adds.

can happily say it was one of our most successful and smooth tramway projects so far, in which the collaboration and common understanding in spite of such differences between the Spanish and Hungarian languages were exceptional. It was a very good feeling for CAF to be able to come back to the Hungarian market after a railway deal 1995 and the experience in Debrecen clearly allowed us to better understand the needs and expectations of a Hungarian tramway operator and put them into use for the Budapest project. We are looking forward to continuing our collaboration with the local operator DKV and the city of Debrecen in future projects.”

oldest international clients. We are also looking forward to working with MÁV and sharing with them our knowledge and product development regarding commuter and regional trains, as well as high speed trains in the near future.” Two years ago, CAF also entered the tender for the modernization of underground carriages in Budapest but eventually, the Russians were awarded the job. In light of the problems that have surfaced with the Russian carriages in the past few months, the question is obvious: ‘how much better vehicles could passengers travel on now if CAF had won the tender?’ In reaction, Maria Pérez points out that CAF has many successful metro projects all around the globe, from Rome, Italy to Medellín, Colombia, and some of them are driverless like Istanbul, Turkey. “When entering the Metro 3 modernization tender here, CAF’s first idea was to offer new modern metros instead of renewing 30-40 year old ones. By buying new vehicles, BKV would not only have improved the comfort and reliability of the service given but also lengthened the life expectancy of the Budapest metro fleet. We have worked on fleet refurbishments in the past, and are confident that we would have provided BKV with reliable and passenger-friendly solutions. However, even though we are right now not collaborating with BKV when it comes to metros, we are concentrating our efforts on diversifying our activities and rollingstock deliveries in Hungary,” she concludes.

CAF trains above and under ground Apart from trams, CAF has supplied railway passenger cars for MÁV Hungarian State Railways. As the Country Director puts it, “the Hungarian market is a very special one for CAF. When the project for the delivery of 72 passenger cars was signed in 1992, it was one of CAF’s first international projects, if not the first one, which marked the beginning of the company’s international development and discovery of Central Europe as a potential market. These rail cars have been in service since 1995 with great success and MÁV has now started to refurbish them. We are, of course, very interested in participating, as much as possible, in the refurbishment process and keen to start closely collaborating again with one of our

DÁVID HARANGOZÓ, ZSOLT CZEGLÉDI, CAF

INCREASED QUALITY, COMFORT AND SAFETY

to high speed trains in Turkey or Spain. In the last years, as a result of its commitment to R&D and long-standing experience, CAF has developed the OARIS solution, a family of very high-speed trains capable of reaching 350 km/h.

…and in Debrecen The city of Debrecen signed a contract with CAF even before Budapest (in 2011). As to the experience of running the 18 trams there, the Country Director highlights that “after the delivery of the 18 trams and the 3 years of maintenance and guarantee service based on our contract, we are now closing the last details of the project. We

photos by

Although, thousands of people ride CAF trams in the Hungarian cities of Budapest and Debrecen every day, very few, if any, of them are aware that the company that produced the vehicles, Construcciones y Auxiliar de Ferrocarriles (CAF) celebrated its centenary this year. What’s more, the company’s beginnings go back to 1892 in Beasain with the manufacturing of wagons and 1897 in Zaragoza with tramways, both in Spain. It was in 1917 when Compañía Auxiliar de Ferrocarriles S.A. was created to manufacture freight wagons. As the CAF Country Manager for Hungary, Maria Pérez explains to Diplomacy&Trade, “throughout these 100 years, we have grown to become one of the world leaders in the design and implementation of comprehensive transit systems. CAF´s global rail solutions include the supply of rolling stock, signaling systems, equipment and components, operation and maintenance. In terms of rail vehicles, the company designs and manufactures cuttingedge high speed trains, regional and commuter trains, metros, tramways and locomotives.” CAF operates production facilities in Spain, France, USA, Brasil and Mexico and are now investing in opening one in UK in order to successfully implement projects around the globe, from tramways in Hungary or Taiwan, to automated metros in Santiago de Chile

A U G U S T

2 0 1 7

D I P L O M A C Y

T R A D E

w w w . d t e u r o p e . c o m

7/31/17 11:16 AM

REFURBISHMENT

O TI RA

WHEELSETS, GEARBOXES & COUPLERS

TRANSPORT SYSTEMS

N & M AI

G K C

ELECTROMECHANICAL SYSTEMS

N TE

LL RO TRACTION AND COMMUNICATION SYSTEMS

C IL

IV S

W RAILWAY SIMULATORS

Book 1.indb 13

www.caf.net

7/31/17 11:16 AM

spain focus

VENI, VIDI, VICI Yes, the Seat Ateca came, saw and won. The Spanish brand was very much in need of a successful model and this medium-sized sporty leisure SUV has scored a direct hit. Ateca is a pretty and trendy car at an affordable price. It became obvious that in the midst of the raging SUV fashion, a well thought-out SUV could produce an upswing for the long-stagnating Spanish brand. The new Ateca has greatly contributed to the expansion of Seat's deliveries. As with previous models, the company's new model was named after a Spanish city: the first Seat crossover bears the name of Ateca, a town in the province of Zaragoza. 24,200 units were sold in the first half of last year. Thanks to the successful introduction of Ateca, Seat sales jumped by 5.3% in the second half of 2016. Moreover, Seat has closed the first quarter of this year with the best sales results since 2001. So, the idea turned out to be successful; demand is great for the Ateca all over Europe. It is a bit incomprehensible why they waited so long with its introduction since the technical foundations were already present at the parent company Volkswagen. The president of the Barcelona-based company, Luca de Meo, is pleased with the results: "Ateca's launch allows us to look to the future with optimism. Our sporty leisure car is already the third pillar of the brand, and its contribution to sales data will be even greater this year. As of this fall, we will introduce Ateca's little brother, Arona, which will further increase our sales in 2017."

14 Book 1.indb 14

Arona, competing in the city-size class, will be the competitor of the Peugeot 2008, the Kia Stonic and the Citroën C3 Aircross. This market has swollen to four times its size in Europe since 2015, and by 2020, analysts expect it to double again, so, it's not unexpected that Seat will also enter here with the Ibiza convertible edition, which is very similar to its big brother. Like Ateca, it is perfectly integrated into the brand image. The character-styled design that was started by the Seat Leon is crystal-clear on the Ateca. It is most evident in the lamps where it received the cutting glance like LED headlights. It looks firmly established from the front, and – thanks to the unique lamps – it is easily recognizable

from the rear that it is a Seat. The trapezoidal lower air inlet, aligned with the two front fog lights, is a well-done and highly spectacular design element on the car's nose. To enhance the off-road character, the car has been fitted with plastic all around. One must say, though, that it is similar to the Audis in several ways, especially from behind. Of course, this is not a problem, and it is understandable as the ties are strong. Overall, one can conclude that perhaps no single Seat has ever been as German-like as the Spanish brand’s first SUV. The most original feature on the Ateca is a lamp that, when opening the front doors, projects a small image onto the ground from the bottom of the mirrors. In this image, one can see the model A U G U S T

2 0 1 7

D I P L O M A C Y

T R A D E

photos by

name and stylized silhouette of the Ateca in the evenings. It's a fine introduction and welcome to an interior that will not disappoint. The crossover Seat offers a pleasant feeling of comfort inside. However, the designers made sure that it falls short of a Volkswagen, let alone an Audi, but the car’s interior is still appealing. While the materials used are of a different level as in the German brothers, the car has been engineered just as thoroughly. The equipment is pleasant and functional inside. Controls and technical equipment are reasonable, easy to learn and easy to operate. If you have the budget, you can fill the Ateca with many desirable extras. For instance, you can order an emergency brake assistant with pedestrian protection, LED headlamps and rear lights, adaptive fog headlights, an auto hold, three-stage seat heating in front seats, electric windows, stop-start system, cruise control or parking radar. In the center of the dashboard, you can find the 8-inch touchscreen, a great resolution and fast display where navigation is also located. Add the Full Link technology and you can access your smarthone apps as you go. The basic engine is a three-cylinder, 1.0 liter turbocharged with 115 horsepower, while the 1.4 petrol engine generates 150 horsepower. There are three diesel variations with 115-190 horsepower. For the base models, there is a six-speed manual transmission. As an option, you can order a seven-speed DSG automatic duplex transmission, even for 4x4 versions. The Spaniards had the good sense not to overrate the Ateca. At least in price: for HUF five and a half million, you can get the basic model. This is a tempting price for such a car. So, the Seat Ateca came, saw, and won – quiet naturally.

BY LÁSZLÓ KISS B.

SEAT

SEAT BOOSTS SALES WITH NEW LEISURE MODEL ATECA

w w w . d t e u r o p e . c o m

7/31/17 11:16 AM

THE NEW SEAT ATECA

EXPERIENCE EVERYDAY!

TECHNOLOGY TO ENJOY CHANGE YOUR POINT OF VIEW The commute to work can be the perfect start to every day in the New SEAT Ateca. Thanks to Traffic Jam Assist, you’ll see that congestion doesn’t have to be stressful but rather relaxing and with Blind Spot Detection you can feel comfortable knowing the New SEAT Ateca has your back. What’s more with Full Link technology you can stay in touch with your work and social life while on the road. FOLLOW US ON:

SEAT.HU

Average fuel consumption: 4.2–6.2 l/100 km. Average CO2 mass emissions: 111–143 g/km. The values stated were calculated according to the measuring methods specified in the currently applicable version of Directive 715/2007/EK. The data do not relate to a specific vehicle and are not part of the specification, but are merely for the purpose of comparing different vehicle types. For more information contact your local dealer.

Seat_Ateca_280x360_angol.indd 1 Book 1.indb 15

2017.07.18. 10:15:01 7/31/17 11:16 AM

spain focus

AN OPEN WINDOW TO SPANISH CULTURE

so we offer a wide range of courses designed to address any need students might have.” In addition to its Spanish courses, the institute promotes the quality Spanish education by organizing, in collaboration with the Embassy Education Department and different Hungarian universities, an extensive training program (workshops, courses and congresses, etc.) for Hungarian teachers. The institute also carries out the official Spanish (DELE) examinations issued by the Spanish Ministry of Education in accordance with the Common European Framework of Reference for Languages.

CERVANTES INSTITUTE CONVEYS SPANISH WAY OF LIFE TO HUNGARIANS

A window to culture

16 Book 1.indb 16

Teaching the language

In Budapest, the Instituto Cervantes started operations as a cultural center in 2004. The present King and Queen of Spain, Their Majesties Felipe and Leticia, inaugurated it in the presence of the President of the Republic Ferenc Mádl and his wife Dalma. According to the Director, “the opening of the institute backed the excellent relations between Spain and Hungary, both countries with no easy and straightforward past (wars, dictatorships, lack of freedom), but nevertheless have been able to look to the future and to create a common space of peace, prosperity and reciprocal understanding. Since then, the Instituto Cervantes has been a vibrant center of culture, learning and social life, offering Spanish courses for all levels and a cultural program that provides the latest cultural manifestations of the Spanish-speaking world.” Moreover, the Institute has a public library dedicated to Ernesto Sabato, a fundamental and terrific exponent of Argentinean literature, and provides convenient access to a wide selection of literature in Spanish as well as videos of the most important films produced in the Spanish language. The library, probably the most important Spanish library in Hungary, is a treasure to discover. It also contains ancillary material for the teaching of Spanish as a foreign language.

Why are Hungarians interested in Spanish? Why are Spanish language courses growing at secondary schools and universities in Hungary? Why do Hungarians come to study Spanish at the Instituto Cervantes? Trying to answer these questions, Iñaki Abad Leguina says one certainly cannot single out just one reason. “My guess is that has a lot to do with the curiosity and sympathy of the Hungarian people.” He is of the view that some students obviously come at the Cervantes to expand their business, to get a promotion, to pass an exam or to change their careers. Others do it because they like Spanish culture (music, cinema, literature, art, etc.) or want to make new friends at home or abroad. “Of course, many attend classes to travel more confidently and to enjoy the historical and cultural heritage of our countries, to enjoy nature and our beaches, weather, our landscapes, our tradition, gastronomy, fun, etc.” The Director, a graduate in linguistics and Spanish literature, stresses that “at the Instituto Cervantes we work to offer the best quality Spanish courses in Budapest in a pleasant and friendly atmosphere. We know that the best way to learn Spanish is to have fun. All teachers of the Instituto are native Spanish speakers from Latin America and Spain. They are expert professionals with specific degrees related to the Spanish Language and are trained in teaching Spanish as a Second Language, A U G U S T

2 0 1 7

D I P L O M A C Y

DÁVID HARANGOZÓ

Instituto Cervantes Budapest

▶

I n a d d i t i o n t o o t h e r m a t e r i a l, t h e li b r a r y o f t h e I n st i t u t e h a s 2 2 , 0 0 0 b o o k s a n d a t h o u sa n d m o v i e s.

T R A D E

photos by

“The Instituto Cervantes (Cervantes Institute) was established in 1991 from a reflection on the need of Spanish society to have a modern and effective tool of cultural diplomacy. Countries like England, France, Germany or Italy had had this type of institution (like the British Council, Institut Francais, Goethe Institut, Istituto Italiano di Cultura) for years. Nowadays the Instituto Cervantes is present on five continents with more than 87 centers spread out across 44 different countries,” the Director of the Institute in Budapest, Iñaki Abad Leguina explains to Diplomacy&Trade. “The crucial idea, I think, was not only to promote the teaching of the Spanish language around the world, but also the creation of a dialogue between Spanish and Latin American culture with the different cultures of the countries where we are established. The very complexity of our contemporaries’ societies needs mutual understanding between people,” he adds. “We are aware that Spanish is currently the second language in the world by number of speakers and the second language of international communication. Spanish is the official or national language in more than 20 countries; there are over 470 million native speakers. The US is estimated to have 138 million Spanish speakers by 2050,” the Director says.

The Instituto Cervantes is part of the Spanish Embassy in Budapest with which it pursues avenues cultural action. The institute also works in collaboration with other local institutions and Latin American embassies in organizing cultural activities such as lectures, book presentations, concerts, cinema, art exhibits, and events such as Spanish Cinema at Uránia cinema. The Director highlights that “basically, our activities are aimed at the broader Hungarian public. We work very closely with all of the Hungarian Universities' Spanish Departments to support them in conferences and workshops. We also collaborate with the Ludwig Museum, MÜPA, Liszt Academy, A38, BMC and different festivals, among others. We are also members of EUNIC (European Union National Institutes for Culture), with our European partners, we promote activities such as the Night of Literature or the European Day of Languages, for example.” The main idea that the institute wants to get across with our various programs is that culture in Spanish is a rich culture, full of traditions and values that began in the past but are projected into the future: above all it is a culture that integrates different people from different backgrounds through dialogue and mutual understanding. As an institution of cultural diplomacy, the Institute focuses on raising exchanges and knowledge. But, as the Director points out, “it is important to remember that we are an actual, physical place made by people for people. The Internet now offers us a whole range of resources for the advancement of knowledge, but it is usually a virtual knowledge and often very aseptic and isolating. So, if you really want to know how Spanish tastes, how it sounds, how it smells, how it s and how the people talk it; if you want to feel in Spanish, you definitely have to come to the Instituto Cervantes. The Instituto Cervantes is an experience! The Instituto Cervantes is a wide-open window to the culture in Spanish in the heart of Budapest.”

w w w . d t e u r o p e . c o m

7/31/17 11:16 AM

spain focus single culture but presents a wide range of cultures and civilizations in all their cities and villages.”

Taste the culture

SPAIN WELCOMES PEOPLE BACK “Due to the increase of direct flights between Spain and Hungary in the last two years, connecting Budapest with ten cities in Spain (with one more, Valencia, to be added to this list by the end of this year), the number of Hungarian tourists is growing year by year. In fact, according to the Hungarian Central Statistical Office, the last global data for 2016 tourism shows that 125,000 Hungarian tourists visited Spain and this number represented an increase of 30% in comparison to 2015,” says Teresa Ortiz, the Director of the Tourist Office of Spain in Vienna that also covers several east and central European countries including Hungary. She explains to Diplomacy&Trade that this figure could be even higher if others airports in the neighboring countries such as Austria, Bratislava and Romania were considered. By

including those airports of origin, the number of Hungarians traveling to Spain may have reached 190,000 in 2016. According to the Spanish Airport Managing Company (AENA), that would mean a 29% increase in 2016 versus 2015.

Direct connection She points out that Hungarian tourism is mainly oriented toward leisure (approximately 81%) while business and MICE travelers represent 9%, although, this last figure is growing each year. The most popular tourist destinations in Spain for Hungarians are mainly those that have a direct connection between the two countries, such as Cataluña (Barcelona), Andalucía (Malaga), Madrid, Baleares (Palma de Mallorca and Ibiza) and Canarias (Tenerife, Gran Canaria, Fuerteventura and Lanzarote)

photos by FELIPE

J. ALCOCEBA/SPAIN TOURISM BOARD, JUAN SERRANO/SPAIN TOURISM BOARD

THE NUMBER OF HUNGARIAN TOURISTS TO SPAIN INCREASES SHARPLY

w w w . d t e u r o p e . c o m

Book 1.indb 17

D I P L O M A C Y

T R A D E

A U G U S T

2 0 1 7

and Alicante (Valencia Region). “We also hope to be able to use these entry points to promote others parts of Spain or itineraries like, for instance, the World Heritage Cities that can be visited from almost all these points.” The Spanish tourism market share in Hungary has been increasing since 2014 and is currently double the figures from three years ago. “That means, of course, that our tourist attraction strong points are playing their role in this increase. These strengths such as quality infrastructures, variety of landscapes and beaches, wide range of touristic attractions such as cultural sites, theme parks, diverse gastronomy, wonderful weather, all contribute to this growth and they are highly appreciated because many of our Hungarian tourists come back to Spain after their first visit,” the Director says. Spain is also a favorite destination for highend, M.I.C.E. tourism. Teresa Ortiz says that “to our potential corporate travelers, we can offer convenient travel from all the destinations in Spain that have direct flights from Budapest. This means that by train, bus, car or even through a national airport, they can reach any point in Spain in a fast and comfortable way, allowing organizing companies to find the perfect venue for their clients. The variety of hotel accommodations also makes it possible to organize trips according to the budget of the clients and the splendid local gastronomy will enrich any offer. Additionally, we are the third country of the world to have a World Heritage Patrimony declared by UNESCO (behind Italy and China), and this huge Patrimony can be visited all over Spain, jumping from unique Muslim Heritage sites like Cordoba and Granada in the south, to Medieval Culture such as Caceres, the Roman Times Culture that has its main point in Mérida or Modern Spain with different monuments in Barcelona, Valencia or Bilbao. Spain is not a

Spain is famous for its culture and gastronomy, for instance, it has a high number of Michelin-star chefs, especially in the Basque country. As to whether Hungarians have discovered Spain as a cultural and gastronomy destination, the Director of the Tourist Office points out that “in order to create a little bit of awareness considering the relevance of gastronomy in Spain, we organized Tapas´ Day in Budapest on June 15 this year. That event allowed us to display some of our gastronomy through this original and authentic Spanish culinary expression. In fact, more than seven million international tourists visit Spain just because of our food. Michelin Star restaurants are a wonderful opportunity to taste the best cuisine in Spain and you can find them all over the country – the list grows each year. So, with this panorama, the opportunities to discover exotic and rich flavors in Spain are huge and we would like to encourage Hungarians to travel all over Spain – from one dish to another. We believe some products are already known in Hungary, such as Iberico Ham and Paella, but we want to go further because the Spanish cuisine is one the best in the world and offers many possibilities. Tapas are a way of discovering, through small portions, different flavors from fish to meat or vegetables – everything is used to create a ‘tapa’. A unique and tasty way to visit Spain is with gastronomy eyes so that you do not only visit the culture but also taste it.

An all-year destination Spain attracts tourism all year round, not only during the summer season. Teresa Ortiz highlights that “one should not forget why Spain is a top tourist destination in the world with more than 75 million visitors last year and a very high number of people who repeatedly visit the country. That means we not only offer a great experience in summer but also all through the year. The question is which region to visit in Spain at different times of the year. Outside the summer, we can offer wonderful city breaks in Madrid, Barcelona, Malaga or Valencia, for sightseeing and visiting one of the greatest concentrations of museums in Europe. We can also offer, beaches in the Canary Island and some parts of Andalucía, such as Malaga or Jerez de la Frontera in Cádiz, and the east coast of Alicante and Valencia. You can practice golf in Andalucía and the Region of Valencia all winter.”

17 7/31/17 11:16 AM

spain focus

STANDARD IN THE HOTEL INDUSTRY HOTEL ZENIT BUDAPEST PALACE RECEIVES HIGH CUSTOMER EVALUATIONS

The Spanish chain Zenit Hoteles was presented to the public almost two decades ago by Javier Catalán. The qualities and features that he introduced and that made this chain a standard in the hotel industry, according to Péter Szögi, the General Manager of the Zenit Hotel Budapest Palace is that Zenit Hotels strive to provide the best possible service to all of its guests, paying attention to everything down to the smallest detail. “All of our hotels are located in the center of their respective cities and have high quality facilities, meanwhile continuously adapting to the current times and improving to be able to satisfy the needs of even the most modern travelers. In Zenit Hotels, we believe in the ‘job well done’ and because of this, we have always employed the best professionals who are always available to attend to the needs of our customers.” The main characteristics of Zenit Hoteles that differentiate them from market rivals, says the General Manager, who worked at the Hoteles Catalonia hotel chain in Spain and the Dominican Republic before he came to Budapest, explains that all of the Zenit Hotels boast excellent locations, perfect for leisure travelers exploring the city, professionals on business trips or holding a meeting or family event. “We pay the

utmost attention to providing a personal service and impeccable customer experience to all of our guests. All of the hotels of the chain have a unique and recognizable design, carefully

country. According to the General Manager, the company is always on the lookout for growth possibilities in the international market, and the management quickly recognized Budapest as a dynamically progressing destination with enormous potential. “As luck would have it, in 2011, the owners found the beautiful and historic building that would soon become Hotel Zenit Budapest Palace, and instantly fell in love with it. Their instincts were correct as the Budapest property is pre-eminent among the Zenit Hotels with its excellent location and high customer evaluations.” Javier Catalán’s uncle, Antonio, who is also a businessman, recently said that rather than being dependent on tour operators, hotels must look for guests, themselves, “give them an experience and not just provide them with a place to sleep.” Péter Szögi confirms that people at Zenit Hoteles are firm believers of this philosophy, and think that in this competitive environment anyone who isn’t trying their best to keep their guests happy will fail. “Our priority is to give our guests the perfect hotel experience, to meet and exceed their expectations, and have every single one of our customers leave the hotel with a smile,” the General Manager of the Hotel Zenit Budapest Palace concludes.

curated by the proprietors to give our guests the most comfortable and relaxing stay.” Most Zenit Hoteles are in Spain with Budapest being one of the few venues outside the Iberian

OPERA IN THE GLASS SPANISH STAR LOVES GOOD FOOD AND WINE IN HUNGARY, ALSO

18 Book 1.indb 18

a year later following the Operalia semi-finals, which took place in Pécs, when Domingo invited 12 opera directors, the members of the 2009 Operalia Jury and his friends to the winery. The artist, who has been a fan of the full-bodied red wines since then, visits the Bock winery whenever he can. The winery is now a permanent partner of the Operalia prize-winning, new international opera star generation’s concerts. In recent years, Placido Domingo has often been happy to perform in Hungary, most recently at a free concert in Budapest last August. He has a particularly good relationship with the city of Pécs, which is also demonstrated by the artist being awarded Doctor Honoris Causa by the University of Pécs in 2016, as not only one of the most respected and influential personalities in the world of opera, but also in international public life. The world star, also known for his lifeaffirmation, is a true fan of good food and wine, which is no surprise, since his grandmother

ran a restaurant in Zaragoza, whereas his mother comes from the Basque country, also famous worldwide for its cuisine. One of the world’s most popular opera singers, Domingo reputedly also likes to cook to the music of Tosca, and says that he needs to make a romantic dinner for the Bohemian life to celebrate the melodies of La Traviata. In any event, Domingo does not only frequent A U G U S T

2 0 1 7

D I P L O M A C Y

the world’s best restaurants as a guest, but has also become a restaurateur, having opened the modern Mexican restaurant, the Pampano, together with owner-chef Richard Sando. This was followed in 2010 by the Latin-Asian Zengo, which includes the Saké and Shochu Lounge, specializing in Japanese alcoholic drinks and La Biblioteca Tequila, whose drinks menu includes 400 types of agave spirits.

T R A D E

photos by

The Bock winery created the limited edition red blend in honor of the new international multicultural touring festival founded by the city of Pécs and Placido Domingo Classics, as well as the eponymous artist. The wine quite rightly bears the star tenor’s name, as the Maestro himself selected this 2012 premium blend, from samples sent by the winery, which has now been bottled under the name Placido Domingo Classics Selection. Festival visitors were first able to taste the new wine selection during the festival in Pécs and will accompany the annual touring festival at its later stops. The relationship between Placido Domingo and the winery is not new. The Mayor of Pécs, Zsolt Páva, and the GuliAnd team who organized the artist’s first performances in Hungary in 2008 invited the artist to Villány. Placido Domingo became acquainted with the wine region and the wines of Bock Winery then. The opera star and József Bock deepened their relationship further

DÁVID HARANGOZÓ, ANNARÓZSA MÉSZÁROS

The Villány Bock Winery has launched a limited edition red wine, the Placido Domingo Classics Selection. The Maestro Blend, created according to the taste of the world-famous opera star, made its debut this June in Pécs at the Placido Domingo Classics Festival, where the Maestro himself performed in the extremely successful La Traviata.

w w w . d t e u r o p e . c o m

7/31/17 11:16 AM

analysis

IN THE SHADOW OF A US-RUSSIAN SUMMIT G20 MEETING IN HAMBURG WITH THE ‘USUAL’ RESULTS

photo by BUNDESREGIERUNG/KUGLER

BY TAMÁS MAGYARICS

The recent G20 meeting in Hamburg is likely to be remembered for two things. One was the quasi-civil war conditions in the streets of the city due to the global professional far-left protestors who, on the margins of shouting anti-capitalistic slogans and attacking the police, also took time to loot the shops which they were able to break into. Their activities discredited the peaceful protests by those who believe that the G20 is not the solution to the problem, but the group is the problem. The legitimate opposition to the excesses of the liberal world order was submerged by the aggressive action of anarchists and all sorts of other ’ists’ whose program, if anything like that exists, is a denial of everything without offering any alternatives. Ever since the opening of the G20 meeting (and even before that) a blame-game has been going on about the responsibility for the chaos, the hundreds of injured, and the substantial material damage caused by the clashes. The Social Democratic mayor of Hamburg is an obvious choice, but it seems that the generally overcautious Chancellor Merkel also made a mistake by deciding on Hamburg as the location for the mega-meeting. Additionally, it seems that political pragmatism won over common sense: Angela Merkel possibly wanted to demonstrate that she was not elitist, and that is why she picked the northwestern German city with known strong leftist tendencies. One can also discern some pattern in her behavior: she has been working on (sometimes quietly) w w w . d t e u r o p e . c o m

Book 1.indb 19

moving the CDU to a left-of-center position in the political spectrum; and she wished to demonstrate her blue-collar credentials before the upcoming Bundestag elections in September.

Trump and Putin face to face The other event that has made the G20 summit arguably memorable was the first face-to-face meeting between Donald Trump and Vladimir Putin. They definitely stole the show, which was not that difficult; as usual, the joint communique issued at the end of the gathering was sanitized enough to say almost nothing new. The ’strongest’ language simply recorded the position of the U.S. on climate change that had been known for weeks before the meeting; a number of media outlets were quick to dub the gathering G19+1 on this issue. Otherwise, it is replete with platitudes like increasing ”the pace of growth,” or emphasizing the ”importance of reciprocal and mutually advantageous trade and investment frameworks,”, or ”fighting protectionism including all unfair trade practices,” and so on. In reality, sometimes even these pious statements exceed the deeds: there is a lot of skepticism out there as to what extent the individual members of the group will be able and willing to implement the vague decisions formulated in Hamburg. Previous experience with similar commitments is not cause for being overly optimistic on this account. In fact, one of the major attractions of these multilateral events is the opportunity for bilateral meetings. This time, the single most interesting one was between the American and Russian Presidents, especially given the Russian hacking attempts during the 2016 presidential

D I P L O M A C Y

T R A D E

A U G U S T

2 0 1 7

campaign in the U.S., and President Trump’s hardline speech on Russian destabilizing policies in Eastern Europe delivered in Warsaw the day before. The Trump-Putin meeting also followed a pattern of sorts. At the beginning of the recent U.S. administrations, the new presidents invariably criticized their predecessor for the tensions between the U.S. and Russia, and promised correction. However, such expectations by George W. Bush and Barack Obama came to nothing; the divergent strategic interests of the two sides prevailed over the nice words. This time, the point of departure was even more complicated than before because of at least two questions: the proven Russian meddling with the U.S. presidential election in 2016 and the ongoing sanctions regime against Moscow because of the annexation of Crimea and the situation in Ukraine. President Trump was (and is) under tremendous pressure at home concerning these questions; showing weakness in either one of them would be taken as proof of being complicit in the Russian hacking attempts. Not much is known about the unusually long meeting of the two presidents, and even the scant information which has become public about the event is disputed by the Americans and the Russians. A conclusion almost everyone agrees is that there was no breakthrough in Hamburg in the US-Russian bilateral relations either.

The ‘usual’ achievements The balance sheet of the G20 meeting in general is rather meager. One potential change may be indicated by French President Emmanuel Macron’s invitation to attend another summit

on climate change in Paris in December 2017 – without the U.S. Given Angela Merkel’s recent statement about the need for Europe to rely on itself in the future, one potential outcome of the G20 meeting might be another step towards a more independent European foreign and security policy (interpreted in a broad sense). The question is, however, whether Europe will be able to play the role in world affairs which the German Chancellor and the French President envision. It is, of course, too early to make an informed judgment on their plans, but a word of caution is in order. Europe is just losing its second or third largest economy (the United Kingdom), including the British military and diplomatic capabilities. The East and Central Europeans seem to be suspicious of the French-German plans for creating a core Europe, practically the group of the ‘old’ members of the EU. This ‘core’ Europe does not seem to be a match for the U.S. or China in the global power struggle, and the Trump Administration, very much like all the previous ones, is determined to prevent a real rapprochement between the EU and Russia. The streets of Hamburg are cleaned up and the shop windows broken by the anti-globalist protesters are mended. Unfortunately, the global problems such as climate change, economic growth, huge income gaps, mass migration, transnational terrorism, cybersecurity, to mention only a few outstanding problems, are not so easy to fix. The previous G20 meetings were long on words and short on action. Unfortunately, the recent one in Hamburg does not seem to be an exception. Tamás Magyarics is a foreign policy analyst

19 7/31/17 11:16 AM

witty leaks WITTY

LE A K S

IN THIS SERIES, DIPLOMATS SHARE PERSONAL ACCOUNTS OF THEIR EXPERIENCES ON “EXCURSIONS” into Hungarian culture, art, gastronomy & scenery.

BLOOMSDAY IN HUNGARY’ A CULTURAL LINK BETWEEN IRELAND AND HUNGARY BY IRISH AMBASSADOR PAT KELLY

The 16th of June is not a date which most people regard as particularly significant. However, for Irish people and indeed for all concerned with IrishHungarian cultural issues, it is an important one. For June 16th is Bloomsday, the date in 1904 on which the world-renowned Irish author James Joyce set his famous novel, Ulysses. The hero, if such he can be called, of Ulysses is one Mr. Leopold Bloom, resident of 7 Eccles Street, Dublin. In his seminal novel, Joyce describes in great detail all the events which befall Leopold Bloom and all those who have dealings with him on this one momentous June day in 1904 (incidentally, Joyce chose to set Ulysses on the 16th of June 1904 because that was the day on which he had his first date with the woman who was to become his wife, Nora Barnicle).

Celebrations in Szombathely Since 1994, Bloomsday has also been marked each year in Szombathely. Through the hard work of the Hungarian James Joyce Society and the support of successive mayors over the years, Bloomsday in Szombathely has now grown into a significant event in the cultural life of this beautiful city in western Hungary. This year, I was once again honored to attend the festivities in Szombathely and to launch

20 Book 1.indb 20

formally the celebrations in the city’s Fő tér (Main Square), alongside the distinguished local Member of Parliament and former Minister for Defence, Csaba Hende. I also had the pleasure of meeting with Mayor Tivadar Puskás, attending a wonderful exhibition of local art opened by former Mayor, Dr. György Ipkovich, as well as attending a lecture by Professor Ferenc Takács, the renowned Joycean scholar, and declaring open the Irish tent at the Szombathely beer festival. It was also a pleasure to see once again the wonderful statue of James Joyce by local artist Gábor Veres which graces the main square of Szombathely. This statue, commissioned by the then Mayor and municipal authorities, was first unveiled in 2004 to mark the centenary of the original Bloomsday. We are already looking forward to the Bloomsday festivities in Szombathely in 2022, which will mark the centenary of the first publication of Ulysses in Paris in 1922.

celebration of his great novel. This year, I was delighted to welcome some 70 guests to the Residence on 24 June for the event. While I have only been Ambassador in Hungary for two years now, the Belated Bloomsday breakfast is easily one of the events which I most look forward to during the year. It is intended as a very relaxed, informal event, a chance to sit back and listen to some wonderful readings by local actors of extracts from Ulysses, (in both Hungarian and English, of course). Very talented local musicians, this year the Greenfields group, also join us to provide some musical accompaniment (music was very important to Joyce and he himself was no mean singer and amateur composer). Most of all, It is an opportunity to enjoy a wonderful Joycean breakfast, offering traditional Irish delicacies such as Irish bacon or rashers as they are known, Irish sausages and black pudding as well as lambs’ kidneys which featured in the breakfast prepared by Leopold Bloom for his wife Molly and which he himself, so Joyce tells us, loved to devour with relish. As someone who grew up just a few kilometres from the Forty Foot, the famous South Dublin bathing place which provides the setting for the opening scene of Ulysses, it has been an incredible honour to be associated with the Bloomsday celebrations in Hungary and I look forward to the day being celebrated for many years to come here.

Bloomsday breakfast The festivities in Szombathely each 16th of June are by no means the end of the story. It would be most remiss of us in the Embassy to overlook Budapest or not appropriately mark Bloomsday also here in the capital. Since 2015, I and my predecessor as Ambassador have hosted what we like to call our Belated Bloomsday breakfast at the Residence. This is an opportunity to join with all our good friends in Hungary in a Joycean A U G U S T

2 0 1 7

D I P L O M A C Y

T R A D E

photos by COURTESY

Bloom is not a traditional Irish name. In fact, it is a rough translation of virág, the Hungarian word for flower. For (and here comes the Hungarian connection), Joyce chose to make Leopold Bloom the son of a Hungarian, one Rudolf Virág who originally hailed from the town of Szombathely. As Irish Ambassador, I am greatly indebted to James Joyce for having had the foresight to create this wonderful cultural link between our two countries. While there is no evidence that Joyce ever actually visited Szombathely, he was familiar with Hungarian culture (at least a dozen Hungarian words and phrases feature in the text of Ulysses) and had many Hungarian acquaintances and friends during a literary life spent mostly in exile, with some considerable time spent living in Trieste and travelling to cities such as Pula, in what is now modern-day Croatia. Since 1954, Bloomsday has been celebrated each year in Ireland and has now grown into a major cultural event each June. Underlining the universal appeal and message of Ulysses, Bloomsday has also come to be celebrated internationally, particularly in countries which have a historical association with Joyce.

OF THE EMBASSY OF IRELAND

Bloom = Virág

w w w . d t e u r o p e . c o m

7/31/17 11:16 AM

diplomacy According to the Minister, Slovenia believes that migrants' countries of origin should be encouraged to cooperate more effectively with the EU on migration issues. The EU has instruments at its disposal to stimulate cooperation with third countries, however, unity and coordinated action by all Member States and EU institutions is vital.

Bled Strategic Forum

INTERVIEW WITH SLOVENIAN FOREIGN MINISTER KARL ERJAVEC

The annual Strategic Forum in the picturesque Slovenian town of Bled is a leading conference in Central and South East Europe. This year's event, that will take place in early September, will focus on the new reality fostered by the current global trends and innovations of the digital era. High political leaders, practitioners, experts, and other decisionmakers will reflect on a wide array of pertinent issues, such as the impact of new technologies on the economy, human rights, democracy, diplomacy, security, and the environment. The Foreign Minister stresses that “in addition to the pressing challenges of today’s interconnected world, we will also focus on the intersect between policy and political choices that will transform the future both regionally and globally. Through the diversity of perspectives, we hope to gain insights on the upcoming global trends and form a strategic vision required to adapt to the new realities without forgetting the foundations of our modern societies.”

Adriatic waters

ADVOCATING REGIONAL COOPERATION This year marks the 25th anniversary of diplomatic relations between Slovenia and Hungary. The Minister of Foreign Affairs of the Republic of Slovenia, Karl Erjavec explains to Diplomacy&Trade that during this period, excellent good neighborly relations and open political dialogue have been established between the two countries. Bilateral relations between the two have been additionally enriched by their membership in the EU and NATO and their participation in various regional structures. “The countries share mutual interests in implementing numerous projects concerning transport connections and infrastructure, and in incorporation into European transport and energy networks. Another valuable link between the two countries is their respective national minorities, which is reflected in an exemplary cooperation on providing minority rights on both sides of the border and on cross-border projects,” he adds.

photo by

DÁVID HARANGOZÓ

Regional cooperation Slovenia is a strategic partner of the Visegrád Four (V4) Group. The Minister highlights that Slovenia and the Visegrád Group share not only geographical proximity but also numerous common interests aimed at enhancing the importance of this part of Europe in the international arena. “I am pleased to see the Visegrád Group opening up to cooperation with Slovenia under the Hungarian Presidency. Owing to its partnership with the V4, Slovenia is interested in cooperation, particularly in areas such as cohesion and agricultural policy, w w w . d t e u r o p e . c o m

Book 1.indb 21

transport infrastructure, connectivity and EuroAtlantic integration of the Western Balkans.” According to the Foreign Minister, Slovenia strives to enhance regional structures, which are an effective tool for implementing joint projects, and indirectly strengthen each individual participating country. “Our country is actively engaging in the Western Balkans through the Brdo-Brijuni Process, which is chaired with neighboring Croatia; we are also interested in cooperation with Central Europe, which is particularly intensive in the V4, and in participation in EU macro-regional strategies (for the Alpine region, the Danube region, Adriatic and Ionian region). The EU provides the fundamental framework for regional cooperation; therefore, it needs to be in synergy with EU policies.” He adds that establishing quality transport links between Slovenia and Hungary (and wider Central Europe) is a priority of both countries. “The transport infrastructure in the region is less developed than that of the western EU members, which hinders its competitiveness and economic progress. Slovenia and Hungary share a common interest in constructing a second track of the KoperDivača railway line, and in developing the Port of Koper, the major sea port for Hungary. The construction of the second track will improve the capacity of the Port, and increase the possibilities of countries using its services to access all markets that are best accessible by sea, particularly all remote markets.”

D I P L O M A C Y

T R A D E

A U G U S T

2 0 1 7

No to protracted controls

The issue of illegal migration has been a matter of concern not only for Slovenia and Hungary but basically for the entire continent – especially during the past two years. Minister Erjavec explains that Slovenia has adopted several measures at the national level that address the challenges of illegal migration much more efficiently over the last two years. This process includes all levels of relevant Government structures and are accompanied by the necessary amendments to legislation, which makes Slovenia adequately prepared for a potential recurrence of mass transition. As to finding solutions, Slovenia advocates the EU response and policies regarding migration, while at the same time, exercising solidarity through active participation in the EU relocation scheme and providing support in the form of police officers to Macedonia and Serbia and to Frontex. “As a responsible member of the Schengen Area and fully implementing the Schengen regime, Slovenia does not believe in protracted controls of internal Schengen borders. Such controls should be only of limited duration and removed when the threat is no longer present. Regarding the solidarity component of the Dublin System reform, Slovenia supports a comprehensive approach, whereby allocation obligations are complemented by the contributing of experts to EU agencies or providing assistance to other member states. Solutions should be implementable in practice, while procedures and conditions must withhold legal judgements,” he says.

At the end of this past June, the Hague-based Permanent Court of Arbitration made a ruling in the disputed border issue between Slovenia and Croatia. Croatia refuses to accept the ruling but allows access for Slovenia to the high seas of the Adriatic via Croatian waters and calls for bilateral settlement of the matter. “In November 2009, the Slovenian and Croatian governments signed the Arbitration Agreement to resolve border disputes, which occurred after the dissolution of the former Yugoslavia. The Agreement was negotiated through the facilitation of the European Commission to eliminate all existing boundary disputes between EU Member States and future members. Therefore, it was relevant to the process of Croatia’s accession to the European Union. On June 29, 2017, the Arbitral Tribunal rendered the final award determining the land and maritime boundary between Slovenia and Croatia. According to the Arbitration Agreement and the general principles of international law, the award is final and binding on both countries. Croatia's unilateral decision to withdraw from the Arbitration Agreement was rejected as unfounded by the Arbitral Tribunal in June 2016. The Tribunal confirmed that a violation of the Agreement by Slovenia had no effect on the Tribunal’s ability to render an independent and impartial final award,” the Minister explains. He adds that Slovenia has already invited Croatia to work together to implement the arbitrated award. The European Commission and many EU member states, i.e. Germany, France, Benelux countries, and Hungary, stressed that the award should be respected and implemented. “I hope that other members of the Visegrád Group will also actively support the international law and decisions of the courts and tribunals. I am confident that Slovenia and Croatia can work together and implement the ruling of the Tribunal in compliance with international law in the spirit of good neighborly relations. The respect for obligations arising from treaties, decisions of international courts, tribunals, and other sources of international law are the very foundation of the European Union,” he concludes.

21 7/31/17 11:16 AM

business Chinese or Slovak citizens; they bought half of all foreign-owned apartments. Chinese, Israeli and Vietnamese customers are most interested in Budapest, 85-90% of their home purchases are realized in the capital. In contrast, over 80% of German, Austrian, Dutch, Belgian, Swiss, Romanian and Slovak nationals favor rural dwellings. Accordingly, expenditures of buyers from different countries Diplomacy-n-Trade.ai 1 2017. 02. 27. 11:22:30 move on a wide scale. Buyers from Romania

APARTMENT PRICES SOAR IN BUDAPEST FOREIGN BUYERS ARE ACTIVE ON THE HUNGARIAN PROPERTY MARKET

In 2016, the price of apartments for sale increased by 13% year on year and the rise in new home prices exceeded 10% in Hungary. During the first quarter of 2017, the price increase continued in the real estate market. The price of second-hand homes was 4.8% above the previous quarter's level and this figure for new homes was 1.7%. Last year, 146 thousand

bought for an average of HUF 10 million (EUR 32,500), with the Dutch spending an average of HUF 12 million (EUR 39,000) and Germans HUF 17 million (EUR 55,400). On the other hand, Chinese buyers with investment intent were looking for high-value real estate, and their average purchase value reached HUF 39 million (EUR 127,000). The average value of purchases by both Russian and American citizens exceeded HUF 30 million (EUR 97,700).

CMY

homes were sold, 9% more than in 2015. Despite K the increase in sales, however, in smaller towns and villages the rise in prices lagged behind those in the big cities. 5% of the sales or, every twentieth purchase is linked to foreign citizens, according to Central Statistical Office figures quoted by the financial website portfolio.hu. Most foreign buyers are German, Romanian,

FOR NEW SUBSCRIBERS to DIPLOMACY&TRADE YES! SEND ME ONE YEAR DIPLOMACY & TRADE SUBSCRIPTION (12 issues per year – including VAT and postage) at a price of

1 COPY: EUR 72 Name: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Company: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Title:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Address: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Phone: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fax: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E-mail: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PAYMENT BANK TRANSFER

Account No: ING 13700016-03317013-00000000

Date: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Signature: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

BUDAPEST WEEK PUBLISHING, DUAX KFT. 1034 BUDAPEST, BÉCSI ÚT. 60.

22 Book 1.indb 22

A U G U S T

2 0 1 7

D I P L O M A C Y

T R A D E

photo by SHUTTERSTOCK.COM

Please, invoice me at the address: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

w w w . d t e u r o p e . c o m

7/31/17 11:16 AM

business

DIRECT ACCESS TO THE UNITED STATES

POLISH AIRLINES CONNECTS BUDAPEST WITH NEW YORK CITY AND CHICAGO LOT Polish Airlines has announced it will create a direct air link between Budapest and the United States by May 2018 with flights four times a week to New York City JFK and twice a week to Chicago O'Hare airports. The Polish carrier will operate these flights throughout the year on one of the most modern aircraft available, the Boeing 787 Dreamliner. This development, taking advantage of the EU-U.S. Open Skies Agreement, marks the return of direct US services from Budapest after American Airlines and Delta Air Lines left the Hungarian market in 2011. The announcement ceremony was attended by Hungarian, Polish and American officials as well as those of Budapest airport. The CEO of LOT, Rafal Milczarski highlighted that, in the market for long-haul flights, the catchment area within a two-hour drive of the Budapest airport, there are no less than 8 million residents and therefore, the direct flights to the US will satisfy a major market demand, including Eastern Austria, Slovakia, the Transylvanian parts of Romania, and several countries in the Balkans. Quoted by turizmusonline.hu, the CEO justified the creation of these two new routes with the fact that 2% passengers on LOT flights from Warsaw to New York City and 5% on the

Warsaw-Chicago flights are Hungarians. He added that while the daily number of passengers from Warsaw to the United States is 656, the same number from Budapest is 813.

Polish deputy Prime Minister Mateusz Morawiecki declared that “today, LOT Polish Airlines is the most rapidly growing carrier in Europe. Launching direct flight connections

FOR A GREENER WORLD

photos by

DÁVID HARANGOZÓ, HEINEKEN

SUSTAINABILITY IS OF PARAMOUNT IMPORTANCE FOR HEINEKEN HUNGÁRIA Message in a bottle – this is the way Heineken Hungária Co. Ltd. has chosen to publish the results of its latest sustainability report. It has recycled 98% of its generated waste and covers 22% of its energy consumption from renewable sources and has reduced its specific water consumption by 13.8% since 2008. A statement by the company says these – by far not complete list of – results are due to the 10-year sustainability program ‘Brewing a Better World’ launched in 2010. Support for local communities, the protection of water resources, reducing carbon dioxide emissions, sourcing, health and safety at work and responsible drinking are the main areas of Heineken Hungária Co. Ltd.’s sustainability strategy. The ‘Brewing a Better World’ program embraces the entire range of business practices from barley to bar. José Matthijsse, the CEO of Heineken Hungária Co. Ltd. says ‘message in a bottle’ is the company’s symbol of hope, empathy and humanity. “Our Earth and our society need to get together to preserve our planet for future generations. At Heineken, we believe that we must live in a sustainable way as individuals and companies." w w w . d t e u r o p e . c o m

Book 1.indb 23

According to the company, Heineken also strives for sustainability when purchasing raw materials for brewing. Whenever possible, they buy from local suppliers to help local communities and the country's economy. This is reflected in the fact that one of the most important brands of Soproni beer has been made from 100% Hungarian barley since 2016. Heineken has invested HUF 300 billion in

D I P L O M A C Y

T R A D E

A U G U S T

2 0 1 7

Hungary over the past decade, contributing to the livelihood of 6,000 people. Sustainability is also of paramount importance during brewing. Thanks to the use of environmentally friendly technologies, Heineken has reduced its specific water consumption by 13.8% since 2008, reducing its CO2 emissions by 39% at corporate level, drawing 22% of its current electricity consumption – and 32.6%

from Budapest to the USA is another major step towards the consolidation of the CEE aviation market taken by LOT.” The Chargé d’Affaires of the US embassy in Budapest, David Kostelancik also welcomed the new direct services. “The new flights will form yet another link between the United States and Poland and Hungary – two important allies in the region, and two countries that themselves have a long history of friendship. As a native of Chicago, I am particularly pleased that Budapest will, for the first time ever, be accessible via direct flights from Chicago. But I am also excited by the countless doors these flights will open across the United States for Hungarians,” he said. The Hungarian Minister of Foreign Affairs and Trade, Péter Szijjártó said that Hungary has been at a competitive disadvantage for several years because it has not had a direct aerial link with the United States. That will change from next May. AS the CEO of Budapest Airport, Jost Lammers put it, “we are very proud to host the first base of LOT Polish airlines outside the borders of Poland with the launch of two very important US flights to New York and Chicago from Budapest. This is a truly historic moment for all three countries involved and creates a win-win situation for the passengers both in Hungary and in the US.” He added that “our market surveys clearly show that direct flights between these two major cities on the East Coast and the Mid-West of the US and Budapest are in high demand and will be a huge success in all segments of travelers. Aviation connectivity with a Dreamliner will also boost the economy through the use of belly cargo capacity of these modern Boeing 787 jets.”

of its heat demand – from renewable energy sources. It recycles 98% of the total waste generated. On products delivered in Hungary, the company reduced its CO2 emissions by 9.6%. The amount of CO2 emission per one hectoliter of beer produced is only 1.94 kilograms, which is the 6th best result in the world. Heineken also acts in a sustainable way when selling its products. It only purchases green refrigerators that comply with environmental regulations. For example, in 2016, they bought 926 units which consumed 45% less energy. Consumers' attention is drawn to the importance of responsible alcohol consumption in all campaigns: in 2016, 330 million boxes and bottles featured the logo "Enjoy responsibly!". The company also launches a consumer campaign every year to promote moderate alcohol consumption. For instance, in 2016, a highly successful campaign, with the involvement of Hungarian musicians and other performers, and through customized consultations organized for festivals, promoted the message of responsible alcohol consumption. In addition to job creation, the employment of local suppliers and payment of local taxes, in the framework of its corporate social responsibility program, the company helped 220 colleagues through the Amstel Foundation, spending HUF 130 million for charitable purposes. Volunteer programs are also supported annually for communities in Sopron and Martfű, where Heineken’s plants are located.

23 7/31/17 11:16 AM

society U.S. Independence Day The Chargé d’Affaires of the U.S. Embassy in Budapest, David J. Kostelancik welcomed hundreds of guests at the Ambassadorial residence in the Buda Hills to celebrate the 4th of July, the 241th anniversary of the Independence of the United States.

Day of Slovene Statehood The Ambassador of the Republic of Slovenia, Ksenija Škrilec welcomed guests to a reception at the Petőfi Literary Museum for a dual celebration of Slovenian statehood as well as the 25th anniversary of diplomatic relations between Slovenia and Hungary. The event was also a farewell party for the Ambassador who completes her four-year tenure in Hungary next month.

24 Book 1.indb 24

A U G U S T

2 0 1 7

D I P L O M A C Y

T R A D E

HARANGOZÓ, LAJOS SOÓS/MTI, NOÉMI BRUZÁK/MTI

The Ambassador of the Republic of France, Éric Fournier welcomed guests for a reception in the garden of his residence in Budapest to celebrate French National Day on the 228th anniversary of the Storming of the Bastille on 14 July 1789, a turning point of the French Revolution.

photos by DÁVID

Bastille Day

HARANGOZÓ, ATTILA NÉMETH/US EMBASSY

On the occasion of Poland handing over the Presidency of the Visegrád Group (V4) to Hungary, guests were invited by the Polish Institute in Budapest, the Embassy of the Republic of Poland and the Hungarian Ministry of Foreign Affairs and Trade to a concert at the Budapest Music Center. The program included performances by Polish musicians Anna Maria Staśkiewicz and Bartosz Koziak as well as young Hungarian soloists.

photos by DÁVID

Polish V4 concert

w w w . d t e u r o p e . c o m

7/31/17 11:17 AM

HARANGOZÓ, ATTILA NÉMETH/US EMBASSY

HARANGOZÓ, LAJOS SOÓS/MTI, NOÉMI BRUZÁK/MTI

photos by DÁVID

society Egyptian Revolution Day

Slovene Ambassador’s Farewell Party

The Ambassador of the Arab Republic of Egypt to Hungary, Mahmoud Elmaghraby welcomed guests for his country's national day reception at the Museum of Military History in the Buda Castle in Budapest. Revolution Day, the biggest secular public holiday in Egypt, commemorates the Egyptian Revolution of July 23, 1952.

The Ambassador of the Republic of Slovenia, Ksenija Škrilec welcomed fellow diplomats and other guests to a farewell reception at the Slovenian Embassy upon the completion of her four-year tenure in Hungary.

Croat and Slovene Ambassadors Decorated

Turkish Ambassador Exhibition

The departing ambassadors of Croatia and Slovenia were awarded a Hungarian state recognition. President János Áder presented Gordan Grlić Radman of Croatia and Ksenija Škrilec of Slovenia the Middle Cross of the Hungarian Order of Merit, civilian division.

“Through the art of the Ambassadors' Eyes…,” an exhibition by the Turkish Ambassador to Hungary, Sakir Fakili was opened at the Old Artists' Colony of Szentendre this July. It shows 38 works, mostly watercolors as well as some oil paintings, carbon and pencil drawings. The exhibition was opened by János Hóvári, DirectorGeneral of the HungarianCreative Art Public Non-Profit Ltd.

Belarus Independence Day The Ambassador of the Republic of Belarus, Aliaksandr Khainouski invited guests for a reception and concert at the Városmajor Open Air Stage in Budapest in celebration of his country’s national day, which marks the liberation of Minsk on July 3, 1944.

w w w . d t e u r o p e . c o m

Book 1.indb 25

D I P L O M A C Y

T R A D E

A U G U S T

2 0 1 7

25 7/31/17 11:17 AM

summertime OUTDOOR DINING RECOMMENDATIONS

TOP 10 REASONS TO DINE ALFRESCO

1061 Budapest, Andrássy út 8 • +36 1 611 7090 hello@bistrofine.hu • www.bistrofine.hu BISTRO FINE IS A CASUAL, FRIENDLY, YET SOPHISTICATED PLACE TO MEET with friends or business partners for a tasty lunch or a nice dinner in the heart of the city, on the magnificent Andrássy Avenue. Choose from their daily Business Lunch offer, which is designed to suit all tastes, or drop in after work for a glass of wine with some light tapas. Enjoy the creative cuisine and the colorful world of flavors it evokes anytime of the day.

ÉS BISZTRÓ

RISO RISTORANTE & TERRACE

1051 Budapest, Deák Ferenc utca 12 • +36 1 429 3990 info@esbisztro.hu • www.esbisztro.hu

1012 Budapest, Lovas út 41 • +36 1 224 7424 info@riso.hu • www.riso.hu

ONE OF THE BIGGEST OUTDOOR TERRACES, ÉS’ iconic 2-storey outdoor space is open all year round, seating up to 20 persons. It is enviably sheltered from street traffic on pedestrianized Deák Ferenc utca (aka Fashion Street) and it is perfect for people gazing. The casual Hungarian-Viennese bistro offers a laid-back experience and a chance to enjoy wine, beer and a few bites. However, the full menu includes classic Hungarian and Viennese favorites, as well as grilled meats and fish.

LOCATED AT THE FOOT OF BUDA CASTLE, RISO provides the perfect setting for romantic dinners, family gatherings, weddings and corporate events. The idyllic 80-seat bi-level terrace is surrounded by lush plants and greenery, thereby transporting you to another world. Riso cuisine offers Hungarian, International and outstanding Italian dishes including a wide variety of risottos and oven-baked pizza. They offer a weekday business lunch menu and specialties from the lava stone grill on Wednesdays.

26 Book 1.indb 26

A U G U S T

2 0 1 7

D I P L O M A C Y

T R A D E

w w w . d t e u r o p e . c o m

7/31/17 11:17 AM

photos by INTERCONTINENTAL

BISTRO FINE

KAUNITZ/WWW.AFSTUDIO.HU, WWW.TAMASPAL.HU, COURTESY PICTURE

Summer is so very short Catch a bit of R&R in the middle of the day Stock up on Vitamin D for the winter ahead Watch the comings and goings of people on the streets Feel the vibrations of the city Fresh, fizzy, flirty summertime drinks Simple foods with plenty of grill and BBQ It can be truly romantic Some of the best views of the city Your 4-legged friends can accompany you

photos by TAMÁS

1 2 3 4 5 6 7 8 9 10

BUDAPEST, ISTVÁN KIRÁLY-FOTGRÁFUS/WWW.KIRALYFOTOGRAFUS.COM, SÁNDOR BERTA/INFO@STEREOTEAM.HU, REMÍZ RESTAURANT, GEORG GRAINER FOTOGRAFIE

These lazy, hazy, crazy days of summer bring out the “Alfresco” fever in all of us and compel us to spend as much time outdoors as possible. Let’s face it, food tastes better in the open air and while there is no hard evidence to support this, we believe it to be true. Let’s examine some of the reasons why Budapest dwellers love gardens, terraces and sky bars (and even tables on the sidewalk)!

easy living PARISBUDAPEST

1051 Budapest, Széchenyi István tér 2 +36 1 235 5600/797 reservation@parisbudapest.hu www.parisbudapest.hu

BUDAPEST, ISTVÁN KIRÁLY-FOTGRÁFUS/WWW.KIRALYFOTOGRAFUS.COM, SÁNDOR BERTA/INFO@STEREOTEAM.HU, REMÍZ RESTAURANT, GEORG GRAINER FOTOGRAFIE

REMIZ

1021 Budapest, Budakeszi út 5 • +36 1 275 1396 remiz@remiz.hu • www.remiz.hu IN THIS EVER-CHANGING GASTRONOMIC WORLD, it is comforting to have a restaurant that has remained a stable institution in the Buda hills for decades under the same ownership. So many have celebrated special moments in their lives here and this month, Remiz celebrates their milestone 25th birthday. Why not reminisce along with them as you relax in the quiet garden and enjoy perennial favorite dishes like Zsüti Soup, Honey-crusted Turkey Bites, Spare Ribs on the lava stones, Kugler Chicken and more.

BUDAPEST BISZTRÓ 1054 Budapest, Vécsey utca 3 • +36 1 783 0788 info@budapest-bistro.hu • www.budapest-bistro.hu

THIS DOWNTOWN RESTAURANT AND BEAUTIFUL TERRACE with views of the parliament epitomizes the philosophy of using traditional Hungarian flavors with modern techniques in their state-of-the-art open kitchen. In addition to lunch and dinner, the kitchen offers an extensive breakfast selection with cakes and pastries made right on the premises. Adding to the overall unique experience is a wine cellar that guests are encouraged to visit. Evenings often include live music, creating a classic "piano bar" atmosphere.

CORSO RESTAURANT 1052 Budapest, Apáczai Csere J. u. 12-14 +36 1 327 6392 corso.restaurant@ihg.com www.budapest.intercontinental.com

LOCATED ON A UNESCO WORLD HERITAGE SITE, the Corso Restaurant and Bar Terrace is a unique downtown oasis that blends together modern gastronomy, premium drink specialties and local traditions. Standing proudly on the Danube promenade looking out over the Royal Palace and the Chain Bridge, it is an ideal location for business meetings, romantic dinners and bigger family occasions alike. The menu showcases the shared culinary heritage of Hungary and its surrounding neighbors, all presented in a sophisticated and exciting way.

photos by INTERCONTINENTAL

photos by TAMÁS

KAUNITZ/WWW.AFSTUDIO.HU, WWW.TAMASPAL.HU, COURTESY PICTURE

SIT BACK AND ENJOY THE SPLENDID VIEWS OF THE DANUBE AND THE BUDA CASTLE on the Terrace of Paris-Budapest Restaurant. Our premier location at the Chain Bridge ensures guests a first-hand view of the hustle and bustle of life in Budapest. The dishes on our à la carte menu seamlessly and creatively blend the cuisines of France and Hungary. Relax with a refreshing lemonade or a superb wine from the Kristinus Estate.

w w w . d t e u r o p e . c o m

Book 1.indb 27

D I P L O M A C Y

T R A D E

A U G U S T

2 0 1 7

PEPPERS! MEDITERRANEAN GRILL 1052 Budapest, Apáczai Csere J. u. 4 • + 36 1 737 7377 reservations@peppers.hu • www.peppers.hu BE OUR GUEST AT PEPPERS! Mediterranean Grill or the AQVA bar for a light snack or full meal. Here we have combined contemporary urban design and attitude with the best Hungarian produce and Mediterranean flavors. Enjoy the thrills of the grill and the views of the Danube, then chill-out with cool drinks and delicious desserts in the AQUA Lounge Bar. Watch for our events! Themed nights with a spectacular buffet, specialty cocktails and musical entertainment, Sunday brunches and Saturday buffet lunches.

27 7/31/17 11:17 AM

what's on

DEBRECEN FLOWER CARNIVAL

AUGUST 20 IN DEBRECEN, EASTERN HUNGARY One of Hungary's largest and most popular cultural events celebrated its 50th anniversary last year. Every August 20th, Debrecen celebrates Hungary’s founding king, St. Stephen, with a fragrant flower festival that festoons the city’s majestic scenes with vibrant hues. The history of the Flower Carnival dates back to the beginning of the last century. Since 1966, the Flower Carnival has been held regularly. Initially, only Hungarians participated but within a few years, foreigners were also invited. The central element of the event is the carnival procession of August 20, with the nearly 5-meter high and 12-meter long flower arrangements made with hundreds of thousands of live flowers, accompanied by national and foreign dancers and traditional performers, along the streets of Debrecen. PROGRAM: FROM 7.00 HOURS: Carnival procession in the downtown area AT 19.00 HOURS: Carnival night in Nagyerdei Stadium with well-known melodies, kids’ musicals, 2,000 dancers, spectacular show elements, etc. eng.debreceniviragkarneval.hu

NEW TICKET TO THE SZIGET FESTIVAL

AUGUST 9-16 ÓBUDA ISLAND The Hungarian Tourism Agency and Sziget Cultural Management has introduced a new ticket for Sziget Festival for those looking for a 3-day weekend getaway in the city of Budapest while attending Sziget, one of the best major music & art festivals of Europe. This ticket will give you access from August 10 to 12 or from August 11 to 13 to the Sziget Festival that takes place on Óbuda Island, a beautiful green island in the middle of the Hungarian capital. The vibrant Hungarian capital, Budapest, became one of the most popular tourist destinations today. The city has an amazing energy paired with great gastronomy and a wide range of programs day and night! Visitors can immerse themselves in history and culture, while visiting one of the hundred years old Turkish baths, unique ruin bars or just staring at the exceptional architecture the city has to offer. Sziget Festival is a multi-genre island festival in Budapest, Hungary, in August. Now one of Europe's most iconic music festivals, it has become famed for its diverse lineups that span everything from EDM, house and techno to rock, pop and indie. But Sziget is not just about the music but also a host of other activities to get involved in and experience, from an amusement park, workshops and beaches, to surreal venues and installations dotted around the site. www.szigetfestival.com

28 Book 1.indb 28

A U G U S T

2 0 1 7

D I P L O M A C Y

T R A D E

SHUTTERSTOCK.COM photos by

NOVEMBER 25 LÁSZLÓ PAPP BUDAPEST SPORTS ARENA Andrea Bocelli has been known for over twenty years as one of the most loved and most popular stars worldwide. After two years, the popular tenor returns to Budapest for a truly special concert. The Italian tenor is blessed with two talents. His unique voice is recognizable from any other - it is full and powerful, ranging from belcanto to verismo, from lyrical repertoire to popular ballads. Fate also gave him a different kind of ability when his hereditary glaucoma disease worsened, due to a childhood accident. He lost his eye sight and began to see with his heart. This has enabled the tenor to feel, see and pass on the secrets of the soul in his songs so perfectly. "One can only see well with the heart. What's really important is invisible to the eye", newspapers wrote about him as an opera singer who really needs to be much more audible in his career. The greatness of an artist can be measured not only with the albums sold, but with the humility of the artist. In Bocelli's personality, the world has a legend who is truly worthy of this title. The Budapest concert includes popular pieces of opera and the songs of his known pop albums. Andrea Bocelli is accompanied by a Hungarian symphony orchestra and choir. broadway.hu

GIOVANNI DE SANDRE, ATTILA BALÁZS/MTI, NASA

OCTOBER 18 LÁSZLÓ PAPP BUDAPEST SPORTS ARENA Ennio Morricone embarks on a largescale world tour to mark his 60 years as a professional composer and conductor. He has composed over 500 scores for cinema and television as well as over a hundred music works and is the only film composer in history to have received the honorary Academy Award for his lifetime achievement. Highlights of his work include his scores for Once Upon a Time in the West, One Upon a time in America, A Fistful of Dollars, The Untouchables, The Mission, Cinema Paradiso, The Best Offer and many more. Morricone’s score for The Good, The Bad and The Ugly holds the number two position in the Top 200 ranking of best film soundtracks ever composed. Since 2001, Ennio Morricone has performed his film music and his works for symphony orchestras and choirs on stage. More than 100 concerts have been held in Europe, Asia, the USA and Central and South America. In the Hungarian concert, Morricone will direct the Czech National Symphony Orchestra and will be accompanied by the Hungarian Kodály Choir. Altogether, over 200 musicians and vocalists will appear on stage. Ennio Morricone admittedly likes Hungary very much and says he is happy to return wherever he has the opportunity. www.eventim.hu

ANDREA BOCELLI

photos by

MORRICONE: THE 60 YEARS OF MUSIC TOUR

w w w . d t e u r o p e . c o m

7/31/17 11:17 AM

what's on FESTIVAL OF FOLK ARTS (MESTERSÉGEK ÜNNEPE)

BALATONFÜRED WINE WEEKS

AUGUST 17-20 THE BUDA CASTLE Want to find out more about the rich folklore and crafts of Hungary and two guest nations? Visit the Festival of Folk Arts in Budapest’s Castle District. Organized for the 30th time, the Festival is the most significant forum for living folk culture in Hungary The Festival brings the finest Hungarian craftsmen and their work to Buda Castle from across the country. They include a variety of different folk crafts ranging from woodcarving to egg painting and visitors can partake in many of the activities, as well as enjoy live folk music and dance performances. The most renowned Hungarian artists and craftsmen from different regions of the country will introduce their skills handed down from many generations. Like many other festivals in Hungary, the Festival of Folk Arts is also a celebration of the famous Hungarian gastronomy with wine and pálinka tasting, traditional Hungarian dishes and delicious home-made pastries. The festival is timed to coincide with the St. Stephen's Day celebrations. Workshops are available for visitors to try their hand at authentic folk crafts: e.g. wood carving, making musical instruments, embroidery, pottery making, weaving, smithery, egg painting etc. The special guest nations this year are Uzbekistan and China. mestersegekunnepe.hu/English

AUGUST 13 – SEPTEMBER 03 TAGORE PROMENADE IN BALATONFÜRED The Balatonfüred Wine Weeks, one of the most prestigious wine festivals of the Balaton region, will be held again this summer as part of the Nagyon Balaton event series. In August, every year since 1932, the town organizes this event where the best wines of the local wine region can be tasted. The wine festival, that lasts three weeks is one of the country's most visited and renowned gastronomic festivals. In a treelined promenade named after the renowned Hindu poet, Rabindranath Tagore, local wine-growers offer the best wines of the region from wooden huts. Fine bites also await visitors who can taste the best known wines in the Balaton area like Italian Riesling, Riesling-Sylvaner, Tramini, Zweigelt and the unmissable muscatel. Good wines, the unique atmosphere of the Tagore Promenade and Lake Balaton panorama - the Wine Weeks have an undeniable nimbus. en.balatonfured.hu

ZOO MUSIC EVENINGS WITH WINE

AUGUST 2-23 THE BUDAPEST ZOO A special mix of music and wine is presented on Wednesday evenings (from 20.30 hours) this August in the Budapest Zoo. Before each concert, a different winery from the Szekszárd wine-growing region will offer its wines to the public. Expecting summer heat, the winemakers are focusing on light and fresh wines like rosés and schiller but also on kadarka and kékfrankos both sporting the new Szekszárd bottle. As additional support for the zoo, the Szekszárd wine region has adopted ‘Albert’, the red panda that adores grapes. THE PROGRAM: AUGUST 2 AUGUST 9 AUGUST 16 AUGUST 23

Geszti; guest appearance by S'Iza. Wines for tasting by the audience is provided by the Sárosdi Winery. PapaJazz, guest appearance by Andrea Malek and Péter Szolnoki. Wines for tasting by the audience is provided by the Schieber Winery. Budapest Bár featuring Juci Németh, György Ferenczi, Tibor Kiss and Krisztián Szűcs. Wines for tasting by the audience is provided by the Szent Gaál Winery. ‘Star Siblings’: Gabi and Vera Tóth, Tomi and Csaba Vastag, Linda and Viktor Király. Wines for tasting by the audience is provided by the Dúzsi Tamás Winery.

www.zoobudapest.com/en/must-see/concerts

GIOVANNI DE SANDRE, ATTILA BALÁZS/MTI, NASA

SHUTTERSTOCK.COM

photos by

GATEWAY TO SPACE

UNTIL SEPTEMBER 25 MILLENÁRIS CULTURAL CENTER Discover the amazing history of space travel. Revel in man’s biggest adventure and at the same time, the most fascinating story of our time in this interactive exhibition. A story starting with those very first dreamers building their own rockets, through the eventful 20th century with the Space Race and the successful mission of putting people on the Moon, all the way to beyond the boundaries of our solar system. Look at and touch more than a hundred objects from the US Space and Rocket Center’s impressive collection. There are for example, several spacesuits, genuine bits of moon rock and replicas of rockets and space capsules used during these NASA-missions. The exhibition has returned to Hungary with even more interactive games after conquering four countries. Here, you can experience what it feels like to be an astronaut. urkiallitas.hu/en

JEWISH CULTURAL FESTIVAL

SEPTEMBER 3-14 BUDAPEST Once again we say farewell to summer with the multi-faceted Jewish Cultural Festival. As in previous years, there will be classical and lighter musical concerts, theatrical performances and literary evenings at several locations throughout the city, including the stunningly beautiful Dohány Street Synagogue. Other venues are the Goldmark Hall, the Bethlen Square Synagogue and the Hegedűs Gyula Street Synagogue. Some of the top name performers include the Budapest Klezmer Band, Zsuzsa Koncz, the Budapest Jazz Orchestra, the Trio Midnight, Béla Szakcsi Lakatos, Tony Lakatos and the Sabbathsong Klezmer Band along with the 100-member Gypsy Orchestra. www.zsidokulturalisfesztival.hu

w w w . d t e u r o p e . c o m

Book 1.indb 29

D I P L O M A C Y

T R A D E

A U G U S T

2 0 1 7

29 7/31/17 11:17 AM

wine

photo by DÁVID

Although, the varietal, a cross of Ezerjó and Gewürztraminer, has long been considered an aromatic, light variety, it now appears that it is also capable of yielding full-bodied wines with a capacity to age. As winemakers put it at the recent fourth Generosa Professional Day held recently at the Kecskemét Research Center of the Viticulture and Oenology Research Institute, “we would like to position Generosa with Chablis wines, which are produced from Chardonnay.” Plantings of the variety have gained momentum in the last few years and currently stand at 400 hectares, mainly in the Hajós-Baja, Kunság and Mór wine regions. According to János Frittmann, whose winery is based in Soltvadkert, Generosa represents great opportunities, so it’s important to strive to popularize it. The Frittmann Winery planted their Generosa vines in 2004 and after three years’ monitoring following the first harvest, they launched their first varietal wine, which has proved successful on the gastronomic scene. Many like it due to its special range of flavors. Moreover, they are also seeking a wine that the cellar can produce in both reductive and oaked versions. According to János Frittmann, although, Generosa’s rich aroma is similar to Gewürztraminer, it is not worth taking its production in the usual aromatic, Muscat direction: its wine is unique and it is worth retaining those flavors that make it distinct from other varieties. Researchers and winemakers agree that

30 Book 1.indb 30

the Generosa variety, both as grape and wine, clearly demonstrates that it is worth taking seriously. Thus, it’s high time to think about a common approach regarding market appearance and marketing across the wine regions. The main direction and elaboration of details can then follow. However, suggestions included the defining of a minimum price for quality, the introduction of a Generosa trademark and even a uniform bottle.

Pretty in pink… BY ÁGNES WENINGER

I am happy to report that trends show the once beleaguered and belittled rosé, which was never taken seriously, is happily making a comeback in Europe and most definitely in Hungary. The realization that Rosé can indeed be exciting and diverse has resulted in a growing demand that has encouraged wine producers to think pink, and as a result, its variety, quality and year-round availability have improved tremendously. The style of a rosé depends largely on the grape variety, but whether you choose your rosé by region, grape variety or because you like the label; chances are your wine won’t win prizes for sophistication. Having said that, there are very few wine lovers who would disagree that one of life’s greatest indispensable pleasures is sitting on a lakeside terrace, on a hot summer day drinking a refreshing glass of chilled rosé. A rosé needs to provide vibrant, fresh, fragrant and fruity natural flavors to be successful for summer sipping. Local tastes prefer a somewhat darker color than the classic French versions, with crisper acidity, stronger minerality and some added carbon dioxide. Hungarian rosés are primarily made from the local grape varieties of Kékfrankos, Kadarka and Zweigelt, as well as the international varieties commonly grown here: Merlot, Cabernet Franc, Sauvignon and even Pinot Noir and Syrah. Many vintners prefer to blend since the characteristics of each grape variety strengthen and build on each other, resulting in a more complex cuvée. Since rosés are style-wise in the middle between whites and reds, for everyday drinking they can generally accompany a wide range of foods. Hungarian chefs love them because they are a good fit with today’s healthier dining habits. They are an excellent accompaniment to salads of all kinds, including those with cheese and tomatoes like a Caprese or Greek Salad. Rosés go well with some of the lighter Hungarian paprika-based dishes such as lecsó (ragout of onions, tomatoes and yellow peppers) and halászlé (fish soup), and oddly enough, they are even a good match for the ubiquitous pizza, no matter what the topping. The more dynamic, stronger ones are superb with a grilled duck breast, suitably pink inside. A FEW ROSÉ RECOMMENDATIONS…

in this Cuvée including Kékfrankos, Merlot, Syrah, Cabernet Sauvignon and Pinot Noir. Spicy, well-rounded and refreshing with hints of strawberry, rosehip and pomegranate.

Béla és Bandi Rozé 2016 A fresh rosé of Kékfrankos and Merlot with a taste replete with plenty of red fruit and vibrating acids.

ROSÉ TIPS…

Bolyki Rosé 2016 Pale lilac color with the aroma of ripe strawberries and refreshing green pepper. Medium acidity, pleasantly sour with a long after-taste.

Always drink it cold. The ideal temperature is 8-10 ° C. If colder, the aromas are hidden and if it’s warmer, then the refreshing aspect is less prevalent.

Etyeki Kúria Rosé 2016 This very dry Cuvée of Pinot Noir and Kékfrankos has a fresh aroma of strawberries and red currants with elegant acids and a long finish. Heimann Mammaróza Rozé 2016 Perhaps one of his best rosés ever. This blend of Kadarka, Kékfrankos, Merlot, Syrah and Pinot Noir is a darker than most. It is very fresh and lively with a pleasingly sour taste of rhubarb and some strawberry.

Try the new trendy Rosé Fröccs (Spritzer), which can come in many forms depending on the wine-tocarbonated water ratio such as: • KISFRÖCCS little spritzer • NAGYFRÖCCS big spritzer • HOSSZÚLÉPÉS long step

Káli Kövek Rosé 2016 This Kékfrankos and Pinot Noir blend has nice minerality due to the volcanic soil on St. György Hill. Taste of blood orange and cherry. Kristinus Birtok Rozé 2016 This blend of Zweigelt, Merlot and Kékfrankos is a more serious, full-bodied exotic rosé with a definite leaning toward citrus.

Sauska Rosé 2016 All the red varieties of the winery are used

2 0 1 7

D I P L O M A C Y

2 dl wine + 1 dl soda 1 dl wine + 2 dl soda

If you get bored with Rosé, you can jazz it up quite easily or make it the base for a summertime cocktail. Add some lavender, raspberry, sour cherry or elderflower syrup, some seasonal berries and carbonated water, dress with mint, lemon or lime and you have a great cocktail.

Pálffy Rozé Cuvée 2016 This marriage of Pinot Noir and Zweigelt has an exciting aroma due to the Köveskál limestone and red sandy soil. It is juicy, with tastes of blood orange, raspberry and cherry.

A U G U S T

1dl wine + 1 dl soda

T R A D E

PICTURES, PIXABAY.COM

HARANGOZÓ

The Generosa grape variety is capable of producing a fresh, crisp reductive wine, but this Hungarian crossing also has the right characteristics to produce a more full-bodied, mature wine. In fact, according to unanimous expert opinion, it can eventually compete with legendary French varieties.

photos by COURTESY

GENEROSA IS WORTH TAKING SERIOUSLY

w w w . d t e u r o p e . c o m

7/31/17 11:17 AM

gastronomy BALATON IN AUGUST Still plenty to eat and drink (and see and do)!

Lake Balaton, known colloquially as the Hungarian sea is much more than just a place to lay in the sun like a proverbial sardine, while drowning out the sounds of screaming children and ingratiating rock music. It is in fact, home to bucolic landscapes of volcanic hills replete with vineyards, meandering streams, artisanal producers, fields of lavender, fortress ruins and historic towns.

Wine and Dine with a View….

photos by ÁGNES

WENINGER, PIXABAY.COM, BILLIONPHOTOS.COM, MIKLÓS SZABÓ/ WWW.SZABO-MIKLOS.HU

What could be more perfect than the unbeatable combination of excellent wines, quality food and spectacular vistas overlooking vineyards and the tranquil lake in the distance, dotted with tiny boats. The sheer number of outstanding wineries with restaurants, terraces and boutique hotels has risen exponentially in the last few years. HERE IS A SMALL SAMPLING: Csendes Dűlő Vineyards (Balatonörs) – amazing Kéknyelű wines and unparalleled peace and tranquility. Homola Winery (Palóznak) – eyecatching panoramic views, great wines and delicious bites to accompany them. Try the 100% series, including 100% Balaton (blend) or 100% Pinot Gris. Istvándy Winery (Between Badacsonytomaj and Káptalantóti) – spread a picnic blanket and enjoy the serene nature with grey cattle grazing gently near you. Try the Parfym, a blend of Riesling-Sylvaner, Királyleányka and Welschriesling. Kristinus Wine Estate (Kéthely) – the ultramodern, chic winery on the south coast with a gastro workshop, wine hotel and also a winecinema. Try their fresh, fruity Rosé 2016. Pláne (Badacsony) – the ultimate cool wine bar with wines only from the Badacsony region and great coffee for the designated drivers.

ALL THINGS LAVENDER… Apart from its serene beauty and enticing aroma, lavender (and its essential oil) has the power to treat and heal numerous ailments. It was just a matter of time before it became an ingredient in some exciting new food products. LOOK FOR THE FOLLOWING ALL OVER THE NORTH SHORE: Lavender Syrup Lavender Jams/Jellies Lavender Honey Lavender Ice-cream Lavender Tea Lavender Chocolate w w w . d t e u r o p e . c o m

Book 1.indb 31

Szászi Cellars – come for the peace and quiet, stay for the view of the Szigliget castle, the rows of vines and the newly established Viridárium restaurant. Bock Bistro Balaton (Vonyarcvashegy) – a continuation of the much-lauded Bíró/ Bock team with the addition of a 200 year-old wine cellar and a grand view. Szent Donát Manor (Csopak) – both the winery and the exquisite Márga Bistro boast to-die-for panoramas and ambrosial dishes. Try the Csopak 2015 Olaszrizling.

FOOD & WINE FESTIVALS IN AUGUST Street Food & Gourmet Festival Paloznak Jazzpiknik Gastro and Street Music Festival Beer and Gastro Days Wine and Song Festival Wine Weeks on the Tagore Promenade Wine and Bread Festival Harvest Festival Carp Festival Catfish Festival

Balatonfüred Paloznak Zamárdi Balatonszárszó Balatongyörök Balatonfüred Siófok Balatonboglár Vonyarcvashegy Fonyód

July 30 - Aug 2 Aug 3-5 Aug 3-6 Aug 9-13 Aug 11-13 Aug 13 - Sept 3 Aug 16-20 Aug 17-20 Aug 24-26 Aug 25-27

To Market, To Market… A great way to spend a few hours on a weekend morning is to browse your way through one of the local markets. They are resplendent with flowers, fresh produce (many organic), specialty cheeses, charcuterie, fresh-baked goods, pálinkas and other home-made pastries and goodies. Many also have a flea market/antique component to make it even easier to spend your money. Some of the more prominent markets include: • Tihany “Piac Placc” Market – at the Ferry Port every Saturday and Sunday. Be sure to grab a bite to eat at the Lakatos Food Workshop. • ART Placc – contemporary art and design exhibition next to the Tihany Market all August. • Liliomkert Market – the “original” Balaton marketplace at Káptalantóti on Sundays only. • Fonyód Market – the largest market on the south side on Wednesdays and Sundays. • Balatonföldvár Producers’ Market – quaint local market across from the port. • Balaton Fish & Farmers Market in Gyenesdiás – smoked fish available among other things every weekend. • Bácshegy Cheese – workshop with lavender and thyme goat cheeses. IN ADDITION, THERE ARE ALSO SOME FUN GOURMET FOOD SHOPS WORTH A VISIT: • Pörc in Balatonkenese – Hungarian deli with Balaton North coast products including plenty of sausages, dried and smoked meats • Káli Gourmet in Köveskál – plenty of lavender goods, cheeses and wines • Levendula Porta (Lavender Portal) in Kékkút – with home-made cordials, jams, jellies, and cheeses

D I P L O M A C Y

T R A D E

A U G U S T

2 0 1 7

CODE ZERO Csopak boat port Kalóz Beach Bistro, Badacsonytomaj and Fővényes KISHABLEÁNY TERRACE Badacsonytomaj Neked Főztem Grill, Zánka and Balatonfüred beaches

Re-invented Beach Food… If you decide to brave the masses and spend time at one of the municipal beaches, take heart in the fact that the government spent HUF 2 billion upgrading 50 of them with quality, child-friendly services. Thirty-three have just been awarded the BLUE FLAG, which is a testament to the cleanliness of the water and the beach, adequate shade and services available. Once on the beach, eating is inevitable and a must! The Balaton version of the big city’s street food can be found all over. Be sure to check out the many variations of burgers made with Angus beef, pike-perch and the hip new “lángos burger”. Here are some recommended beaches for your bucket list:

SZÉPLAKI LÁNGOS BÜFÉ Siófok-Balatonszéplak The Spot Bar & Grill, Vonyarcvashegy

Sweet Endings… For those with a sweet tooth, you need not look much further than Árpi Bácsi Home-made Strudel, Karolina Café and Bergman Pastry Shop and Café (2 locations) – all in Balatonfüred. The Várkávézó Ice Cream Parlour at the foot of Szigliget castle has quality, natural ice creams and other not often found pastries, such as Pavlova and the Florida Fagyizó (Ice Cream House) is for sure the South side’s top stope for cold treats.

31 7/31/17 11:17 AM

w w w . d t e u r o p e . c o m

Barcelona Gotica 280x360.indd 1 Book 1.indb 3

D I P L O M A C Y

T R A D E

F E B R U A R Y

2 0 1 5

3 25/07/17 12:03 7/31/17 11:17 AM