Diplomacy & Trade 2017 January

JANUARY 2017 HUF 1710

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WATER IS LIFE 2,200 participants from 117 countries gathered in the Hungarian capital for the Budapest Water Summit (BWS) 2016 to discuss solutions to the water challenges of the 21st century.

Organizers hope that the event will have a significant impact on the struggle to avoid the impending water crisis.

SEE OUR COMPILATION

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Portugal

country

FOCUS

“We have strong and long term cultural relations but they can always be improved,” the Portuguese Ambassador to Hungary, Maria José Morais Pires tells Diplomacy&Trade. In an extensive interview, she also talks about steadily growing economic ties, extensive opportunities for learning Portuguese in Hungary, historical personalities and ties that connect the two peoples, as well as the several waves of Hungarian migrants who found a new home in Portugal. see articles on pages 8-12

We Need to Value Water!

One of the most distinguished guests at the Budapest Water Summit 2016 was the President of Mauritius, Ameenah Gurib-Fakim, a member of the UN High-Level Panel on Water.

She talked to Diplomacy&Trade about the need to ensure the availability and sustainable management of water and sanitation for all at a time of unprecedented challenges. see page 18

INSTEAD OF CREATING TALENTS, THE HUNGARIAN CLASSICAL MUSIC TALENT SHOW ‘VIRTUOSOS’ DISCOVERS THEM. MANY COUNTRIES ARE INTERESTED IN THE SHOW, WITH CHINA BEING THE FIRST TO BROADCAST IT IN 2017. "VIRTUOSOS" HAS SET UP A FOUNDATION TO ASSIST THE CAREERS OF THE SHOW’S PARTICIPANTS WITH SCHOLARSHIP AND MENTOR PROGRAMS. THOUSANDS OF HUNGARIAN CHILDREN ENROLLED IN MUSIC SCHOOLS THANKS TO THE SMALL VIRTUOSOS FOUNDATION THAT ALSO ORGANIZES CONCERTS ON A REGULAR BASIS BOTH IN HUNGARY AND ABROAD.

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letter from the publisher Welcome to 2017! We begin a new year with new challenges ahead – a year in which we will strive to provide you with more interesting content, presenting Hungary’s relationship with countries around the world. In our ever more complicated world, we engage with prominent personalities and decision makers and attempt to put all points of view on the table for your evaluation. We will continue to bring the most interesting happenings in Budapest and elsewhere in Hungary in business, science, education, culture, gastronomy and other important fields.

Several large-scale events are on the calendar for Hungary in 2017. The World Aquatics Championships, the World of Coffee (an exhibition of innovative coffee industry suppliers) and the European Youth Olympic Festival. It is a great acknowledgement of Hungarian gastronomy that the Bocuse d’Or final in Lyon, France this January will have a Hungarian moderator, András Jókuti.

With the beginning of a new year, we have looked back at some of the most important events of 2016, as well. In fact, our international analysis looks at the past year as that of ‘unexpected winners and losers’.

The most significant international event of the past year was the Budapest Water Summit 2016 with delegates from over one hundred countries discussing how to preserve water resources for future generations. We have interviewed several prominent attendees, the President of Mauritius, a former Prime Minister of South Korea and the Jordanian Minister for Water to convey views on this matter to our readers. We present the Hungarian Water Cluster and a few Hungarian water companies to round out the issue.

The country in focus in this January issue of Diplomacy&Trade is Portugal, a country very similar to Hungary in size of area and population. The Focus features an interview with the Portuguese Ambassador to Hungary, Maria José Morais Pires who discusses issues of economic relations (including trade and investment) as well as cultural, social and civil ties.

Our education page features the Andrássy University in Budapest while this month’s WittyLeaks article has been authored by the Chinese Ambassador, Jielong Duan. Of course, we also have our interesting culinary guides and Society picture compilations.

I and the entire Diplomacy&Trade staff wish you a prosperous 2017!

Andrássy Gyula - German Speaking University Budapest page 13

­­ contents Budapest Water Summit 2016 evaluated

05 ON THE RECORD 06 COMPANY BRIEFS 07 ANALYSES Unexpected winners and losers

08-12 PORTUGAL FOCUS Interview with Ambassador Maria José Morais Pires, TAP, Hungaro DigiTel, Hungarokork-Amorim

www.dteurope.com

16-23 BUDAPEST WATER SUMMIT

Diplomacy&Trade is preparing a special focus section on the Netherlands, an important business partner for – and substantial investor in – Hungary. It explores the bilateral political, economic, cultural and civil relations as we carry an interview with the Dutch ambassador to Hungary, Gajus Scheltema who is scheduled to leave his post in the summer of 2017. We look at the achievements of the recent Dutch EU Presidency, including the circular economy the Netherlands is a pioneer of. We also present the Netherlands-Hungarian Chamber of Commerce and its high level programs in the fields of business, culture and social life as well as Dutch companies who are very active in their social responsibility programs in Hungary, as well.

Copyright 2004-2015 Duax Kft., all rights reserved | ISSN 1589-8075 This magazine is produced by Duax Kft. The opinions published in the magazine do not necessarily reflect the opinions of Duax Kft.

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champagne throughout the year Ars Sacra, Nagy-Eged Hill leaves its mark

DUTCH FOCUS - COMING SOON

TOURISM BUREAU, BARBARA KINNEY/HILLARY FOR AMERICA, GAGE SKIDMORE, PRESIDENCY OF THE REPUBLIC OF TURKEY, REGIAO DE TOURISMO DO ALGARVE, JOSE MANUEL/TOURISMO DE PORTUGAL, POR LIJEALSO/WIKIPEDIA, PÉTER SNOJ/KATONAI FILMSTÚDIÓ, STEPHEN VAUGHAN/WARNER BROS., PHIL MCCARTEN/A.M.P.A.S., KEVIN LAMARQUE/REUTERS, SÁNDOR CSUDAI, JOAQUIN.IGNACIO.MC./WIKIPEDIA, VARALJAIFOTO@GMAIL.COM, NESTLÉ, JEAN REVILLARD/REZO/SOLAR IMPULSE, C&A CO., PURECO, AQUAPROFIT, ÁDÁM DRASKOVICS/AZ ÉLET MENETE ALAPÍTVÁNY, EMBASSY OF THE PEOPLE'S REPUBLIC OF CHINA, MÜPA, ODPICTURES ART STUDIO LTD HUNGARY, BFZ.HU, MÁRTON NAGY, FILMALLEE, WERNER PAWLOK, KRISZTIÁN BÓDIS, TAMÁS KÁLOSI/WWW.MOMENTAL.ORG, ZOLTÁN BAKOS, PIROSKAI KOLTAI/WINEAMORE, WWW.ELFOTO.HU, MTI PHOTOS: TIBOR ILLYÉS, TAMÁS KOVÁCS, SZILÁRD KOSZTICSÁK, NOÉMI BRUZÁK, MÁRIA WEBERNÉ ZSIKAI, ZOLTÁN MÁTHÉ

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28 CULTURE That Trip We Took With Dad

29 GIFT CORNER 13 EDUCATON Interview with Prof. Dr. András Masát, Rector of the Andrássy University 30-31 HOSPITALITY & GASTRONOMY Award of excellence for Prestige Hotel 14-15 HAPPENING 2016 IN Budapest, Why we should keep drinking PICTURES

PUBLISHER: Peter Freed EDITOR: Réka A. Francisck COPY EDITOR: Joyce Freed PHOTO EDITOR: Dávid Harangozó SALES & MARKETING DIRECTOR: Tamás Varga DISTRIBUTION MANAGER: Tibor Ocsenás ADMINISTRATION: Judit Ludányi ASSISTANT: Ágnes Rapaport CONTRIBUTORS: Sándor Laczkó, Tamás Magyarics, Réka A. Francisck, Jielong Duan PHOTO CONTRIBUTORS: SHUTTERSTOCK.COM (COVER), MÁRTON NAGY, ZSOLT BURGER/MFAT, VARGA A/WIKIPEDIA, SHUTTERSTOCK.COM, HIPA, DUBAI

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26-27 WHAT’S ON Concerts, festivals, events and

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AND DON’T FORGET

24 SOCIETY 25 WITTY LEAKS by Chinese Ambassador Jielong Duan

ZSOLT BURGER/MFAT, MÁRTON NAGY, COURTESY PICTURES

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Peter Freed

What's on - cultural programs in January

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on the record UPCOMING NATIONAL DAYS January

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Cuba

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Australia

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New Zealand

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Serbia

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Lithuania

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Estonia

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Kuwait

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Egypt

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HUNGARY TO QUIT OPEN GOVERNMENT PARTNERSHIP DUBAI TOURISM BUREAU BUDAPEST OFFICE OFFICIALLY OPENED

ZSOLT BURGER/MFAT, MÁRTON NAGY, COURTESY PICTURES

DUBAI TOURISM BUREAU, SHUTTERSTOCK.COM, HIPA, COURTESY PICTURES

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The Dubai Tourism Bureau has officially opened its Budapest office. The emirate sees significant potential in Hungary and therefore would like to achieve notable growth in the number of Hungarian tourists visiting Dubai. The main aim is to strengthen relationships with existing partners and establish new partnerships in the travel profession in Central and Eastern Europe.

Dana Kamber, the manager responsible for strategic partnerships at DTCM (Department for Tourism & Commerce Marketing) of Dubai, took the opportunity to explain the background of the decision by Dubai to open a representative office in Hungary.

"Hungary is a key source market for Dubai and the Dubai Tourist Office and its partners aim to inform Hungarian tourists about the extreme variety that the emirate presents to them. In addition, the new office can also support the local partners of DTCM in Budapest. The number of direct flights is growing and Hungarians do not need a visa to Dubai since 2014," she pointed out.

The opening was celebrated with a gala dinner at the Gerbeaud confectionary shop in downtown Budapest. The gala was attended by key members of the Hungarian tourism industry and media representatives.

Hungary will quit the Open Government Partnership (OGP), an international initiative launched to implement open government reforms around the world, a government resolution published in the latest issue of the official gazette Magyar Közlöny shows. The government stipulates that Hungary should leave the Open Government Partnership and has asked the minister of foreign affairs and trade to send Hungary’s statement of intent to leave the OGP to the organization’s steering committee, the resolution said. Hungary joined the OGP in 2012. At that time, the justice ministry argued that the move was part of the government’s anti-corruption program. The OGP was launched in 2011 and has 70 participating countries. Hungary became a member of the International Organization in 2013. According to hvg.hu, Prime Minister Viktor Orbán called on the minister to inform the organization before its annual meeting on December 7 in Paris that Hungary pulls out of the organization effective immediately. The Ministry of Foreign Affairs and Trade claims that the ‘liberal agency’ regularly attacks Hungary and refuses to engage in a genuine dialogue with the government; it distorts facts and prepares one-sided reports on the country.

HUNGARIAN INVESTMENT GUIDE BY THE SWEDISH EMBASSY Niclas Trouvé, Ambassador of Sweden to Hungary, Levente Magyar, Minister of State for Economic Diplomacy and Róbert Ésik, President of the Hungarian Investment Promotion Agency (HIPA), presented a publication entitled ‘Sweden Hungary Business Guide’ promoting the Hungarian investment environment. The event was organized on December 13, Lucia’s Day, which is considered the brightest Swedish holiday. It was the first time that the Swedish Embassy in Hungary, the Swedish Chamber of Commerce in Hungary, Business Sweden and HIPA mapped and evaluated the presence of Swedish companies in Hungary. The Sweden Hungary Business Guide, created as a result of joint efforts, is aimed at encouraging business relations and, within those, primarily the investments of Swedish companies to Hungary, and facilitating their activities. “Made by Sweden – in Hungary,” Ambassador Trouvé stressed, linking that not only Sweden could be proud with this success, it has been achieved together with Hungarian employees.

At present, about 180 Swedish companies in total are present in Hungary, which together employ nearly 17,000 people. 82 companies introduce themselves in the publication; in terms of the number of employees, they represent 95% of Swedish companies present in Hungary.

SSC SECTOR IS A SUCCESS STORY IN HUNGARY HUNGARIANS SET NEW POWER CONSUMPTION RECORD

Power usage has reached a new record in Hungary. The 6,749 MegaWatt (MW) recorded on December 8 is the highest system load ever in Hungary, the Hungarian Energy and Public Utility Regulatory Authority (Mavir) was quoted by portfolio.hu.

The company said the new all-time high power consumption was related to the unusually cold weather in the previous days, as well as to the Christmas street light decorations. Mavir ensured that the power reserve would be enough even in case of much harsher conditions. The level of security of supply is up to both domestic and international standards, and the technical quality of the transmission network is excellent.

According to a statement released by the Mavir, daily gross power consumption is between 125,000 and 140,000 megawatt hours (MWh) on an average winter day, whereas peak demand could be in a range between 6,000 and 6,600 MW on weekdays.

Data go back to 1955, and the previous peak demand was registered at 6,602 MW in November 2007. In 2015, the annual peak was registered in the summer, which is unusual, at 6,366 MW on July 24. w w w . d t e u r o p e . c o m

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For the second time, the Hungarian Investment Promotion Agency (HIPA) and the Hungarian Service and Outsourcing Association (HOA) have recognized the best shared service centers at a gala event. This year's Excellence Awards went to Citi Service Center Budapest, IBM Client Innovation Centre, and to Viktor Knezevics, Managing Director of BP European Business Service center.

The SSC sector plays a primary role in promoting foreign investments in Hungary and thus provides a highly significant contribution to the success of the Hungarian economy. Based on the sectoral breakdown of the number of newly created jobs, the SSC sector ranks second in Hungary. This assertion is supported by the statistics published by HIPA: of the 64 projects endorsed with the assistance of HIPA in 2016, 11 have been implemented in the SSC sector which accounts for 17% of all projects negotiated this year. Beyond the implications of this ratio, the SSC sector counts as an area of high added value, where employees of the sector are offered promising career opportunities and excellent prospects for professional development.

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­company briefs LE BÉLIER EXPANDS INVESTMENT IN HUNGARY

ROLEX OPENS MONO-BRAND SHOP IN BUDAPEST

Le Bélier, the French vehicle industrial supplier launches overall development in Hungary. The most dominant factories of the market leader company group, engaged in the production and development of aluminum brake systems and safety equipment, are located in Hungary.

The developments amounting to a total of EUR 30 million and establishing 350 new jobs are to be managed as one investment; the group of companies splits the orders and the manufacturing processes among its three factory units.

Le Bélier Group has been the supplier of the automotive and aeronautics industry for more than half a century.

In addition to Hungary, the group has subsidiaries in Serbia, Mexico and China. The French company serves the vehicle industry with the manufacturing of aluminum safety equipment, nowadays producing more than one third of all the world's aluminum brake systems. The most important partners of the group include, among others, Bosch, BMW, Daimler, Mitsubishi, Nissan and Volkswagen. The company strategy of Le Bélier Hungary is to develop its infrastructure and manufacturing technology for the long term to enable the manufacturing of individual and high quality products in large series for the automotive industry. By the completion of the expansion, the number of people employed by Le Bélier in Hungary will reach 1,500. The Hungarian government provided subsidy to the investment through the Hungarian Investment Promotion Agency (HIPA) under an individual government decision.

Petite Geneve Petrovic and Rolex have opened their newest boutique in Hungary.

Located on Andrássy Avenue, part of the UNESCO World Heritage site, the 300-sqm boutique occupies the ground floor of the extraordinary Stern Palace erected in 1882. According to a company statement, the store represents one of the biggest locations on this most prestigious avenue and provides an unforgettable experience for customers, by offering them an extensive Rolex collection of watches with professionalism and expertise service.

The boutique represents the latest Rolex design concepts, and features wonderful local Hungarian architectural elements with the original stucco elements which retain the authentic look of the building.

The founder of the boutique, Nikola Petrovic says they are “very happy to celebrate 30 years of successful partnership with the Rolex brand by opening such a beautiful and spacious point of sale in such a unique and wonderful city as Budapest".

The store is decorated with the ultimate perfectionism and noble materials. Customers will experience a perfect match of outstanding interior design, developed in collaboration with Rolex Interior Design Specialists, and the atmosphere illustrating the world of Rolex and offering privacy and professional advice. Some of the special stucco elements illustrate panoramic views of Budapest and its Chain Bridge. The authentically decorative elements from the 19th century have been reproduced to adorn the impressive celling of the boutique.

KUEHNE+NAGEL CREATES ADDITIONAL LOGISTICS CENTER IN PÁTY Inpark (the state-owned industrial park management company) is building an international logistics warehouse base for Kuehne+Nagel in Páty, Pest County. As one of the world's leading logistics service providers, the new unit of Kuehn+Nagel, to be established by the existing one, will supply 20 countries in the region as a partner of an automotive supplier. The accessibility and level of development of the Hungarian motorway network played a key role in the choice of the location.

The construction project is a greenfield investment on an area of more than 23,000 square meters. The auto parts distribution center in Páty is the first project of Inpark, considered to be its reference investment. The investment – valued at approximately EUR 16 million – is scheduled for completion in the second half of 2017.

Kuehne+Nagel, which will procure the warehouse, IT and safety equipment of the new warehouse and office complex, will directly create 160 new jobs in 2017, and it is planning to expand its staff during the next three years.

It is said to be the developed Hungarian infrastructure network, the references of the automotive companies and Kuehne+Nagel as well as the automotive industry in Hungary that played a determining role in the investment decision favoring Hungary.

MOL WINS HYDROCARBON MINING CONCESSION IN HUNGARY

NATIONALISATION STARTS ON HUNGARY'S ELECTRICITY MARKET

Hungarian oil and gas group Mol won the fourth round of a hydrocarbon concession tender. The same round for a mining concession for a geothermal plot was won PannErgy, the National Development Ministry and the Office for Hungarian Mining and Geology.

The winning bidders may sign the related contracts within 90 days after the announcement of the results, the financial website portfolio.hu writes. The duration of the concession is 20 years for hydrocarbon, which may be prolonged once by ten years.

A total of 11 bids were submitted in seven tenders for ten mining concessions invited by the ministry this year. All of them were formally valid. No bids were received for the Heves, Körösladány and Zala east hydrocarbon exploration areas therefore the tenders for these were rendered unsuccessful. Mol won the mining concession for the following hydrocarbons exploration areas: Bázakeretttye, Bucsa, Jászárokszállás, Mezőtúr, Okány-west and Zala-west. PannErgy Geotermikus Erőművek Zrt. won the concession for geothermal energy in the area of Győr, northwest Hungary.

The Ministry of National Development intends to regularly issue concession tenders. Currently, six groups possess HC exploration rights, and the ministry aims to further spread the investor pool. At the invitation of the tender there were 21 plots potentially available for future concession.

Hungary’s First National Public Utility Ltd. (ENKSZ) has agreed to acquire electricity distributor EDF DÉMÁSZ, and the parties have already signed the contract.

The transaction is pending approvals, but is expected to be closed in early 2017. It is a major step by the state-owned utility company to expand onto the retail power market after the rapid nationalization of natural gas distribution.

The EDF DÉMÁSZ Group, owned by France’s E.D.F. International SAS (EDFI), provides and distributes electricity to 775,000 retail and business customers and operates 32,320 kilometers of network lines in the South-east Hungary region. EDF DÉMÁSZ Zrt. operates directly under four licenses: Universal Service Provider, Open Market trader, natural gas commerce and public lightening operation, and indirectly through its subsidiary named EDF DÉMÁSZ Hálózati Elosztó Kft. under a distribution license. The group has been operating in Hungary since 1995. It also owns power station Budapesti Erőmű Zrt., and its subsidiaries deal in power distribution and trading.

Completion of the transaction is subject to merger control clearance in Hungary and the consent of the Hungarian Energy and Public Utility Regulator. Authorization by the French Ministry of Economy is also required.

ENKSZ finances the transaction partly from own and partly from external funds. The latter are provided by stateowned Hungarian Electricity Works (MVM), by which it will later become an owner of ENKSZ, once they obtain the potentially necessary regulatory approvals.

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Mercedes-Benz has reached a deal with unions at its Hungarian plant that will see base salaries increase by 10 percent in each of the next two years (10% for all workers from April 2017 and by another 10 percent from April 2018). The Mercedes' deal follows months of negotiations at the 1-billioneuro factory in Kecskemet, central Hungary, which employs about 4,000 workers, according to its latest annual report.

According Automotive News Europe, Vasas, a major union which had sought a 15% wage hike, held a twohour strike at the plant late November, delaying the shipment of 50 cars.

Mercedes builds its B class and CLA compact cars in Hungary. The production and export of cars by foreign automakers is a key driver of economic growth in Hungary, where wages for skilled workers are well below Western European levels. The car sector accounted for more than a quarter of total industrial output in Hungary last year. In July, Mercedes parent Daimler, one of Hungary's biggest manufacturers, said it would build a new factory in Hungary to make Mercedes cars, spending another EUR one billion by 2020 and adding around 2,500 new jobs. Daimler's two-year accord is the first publicly announced wage deal by a major private sector employer in Hungary since the Hungarian government agreed with employers on big hikes in the minimum wage last month.

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MERCEDES TO RAISE WAGES

BY OVER 20% IN HUNGARY

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analysis

UNEXPECTED WINNERS and LOSERS WAS THE YEAR 2016 A GAME-CHANGER IN THE WORLD?

BY TAMÁS MAGYARICS

This past year was not very kind to the majority of mainstream politicians, pundits, observers and pollsters in the U.S. and Europe. Even if we cannot speak of the ‘revolt of masses’ (pace Ortega y Gasset), there is quite an obvious and open antipathy towards the political elites in a number of countries on both sides of the Atlantic. The causes of the rise of what is generally and conveniently called (and somewhat derogatory named by the political, economic and cultural elites in the Western societies) populism are manifold and vary from country to country. At a closer look, one can prove that the bulk of the demands by the people who took a stand against the perceived elite-driven policies are unworkable and irrational, but their frustrations can only be ignored by the hitherto mainstream politicians at their own peril. The only other solution might be the Brechtian ‘[dissolution] of the people/an elect another’.

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SHUTTERSTOCK, BARBARA KINNEY/HILLARY FOR AMERICA, GAGE SKIDMORE, PRESIDENCY OF THE REPUBLIC OF TURKEY

Autopsy of a failure The single most consequential upset in international life was the result of the American presidential election. Hillary Clinton had been almost universally expected to win the White House – the Newsweek magazine, reminiscent of a similar capital mistake committed by Chicago Daily Tribune in 1948, even printed a front page announcing her victory. The former First Lady, Senator and Secretary of State lost the election to the developer and media celebrity Donald J. Trump despite the support of the political elites and the media inside and outside the U.S. An autopsy of her failure revealed that she had not spoken too much about issues which worried the middle- and lower-middle class people in the first place: the challenge posed by globalization in general, and the stagnation, even decline of the living standard of these groups in the past few decades.

Instead, she was waging first and foremost a culture war in the name of multiculturalism and political correctness. Her defeat may have signaled the last hurrah of the ’68 generation in the U.S. – and the rejection of excesses of the value system this generation was trying to impose on the American society, with considerable success, so far. Presidentelect Trump gave a voice, no matter, how unsophisticated it was, to the frustrations of tens of millions of predominantly white people. This fact does not bode well for racial harmony in America; moreover, the country is split along the urban versus rural areas, East and West coast on one side, practically all the other states in between on the other one, the rich and the poor (the income gap has increased enormously recently), and so on. In w w w . d t e u r o p e . c o m

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short, the American ‘creed’ and the American ‘dream’ are in danger; in the long run, the social cohesion may as well be shattered.

Brexit: weaker EU The Europeans also had their share of the shocks in 2016. The bigger one was the ‘Brexit’ vote in the U.K. Again, the majority of the ‘elite’ in Britain and on the Continent suffered a setback as millions of people in Britain scared by the large-scale legal and illegal migration and repulsed by the centralization efforts by ‘Brussels’ (together with the gross incompetence showed by the EU leaders in the successive challenges from the Eurozone crisis to the immigration) voted to leave ‘an ever closer union’. The British ‘leave’-vote weakens the EU to a considerable degree, as one of the largest economies will drop out; in addition, we may include among the losses the clout the U.K. still has in the world because of its diplomatic position (among others, its membership in the UN Security Council); its military capabilities (one of the few nuclear powers in the world); and its wide net of connections and influences through the Commonwealth, no matter how weak it is in comparison of what it used to be even a few decades ago. There are ominous signs for the U.K. itself: the majorities in England and Wales supported the ‘Brexit’, while those in Scotland and Northern Ireland wanted to remain within the EU. In case of an especially hard landing’, the question of

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Scottish independence may come up again, and as things are standing at the moment, the ’Yes’ votes would carry the day.

The process of ’Brexit’ is not an open book.

However, some observers claim that the real ticking bomb in the EU is Italy (and the other ’Club med’ countries, especially Greece).

The bad loans of the Italian banks amount to – officially – some EUR 360 billion. Greece is on life support from foreign banks, and the collapse of the bank systems of either or both countries may trigger a chain reaction leading to the collapse of the euro, itself.

Giving up on the Crimea?

Another major issue the Europeans and the Americans faced was Russia. It seems that – at least the latter – were in no haste to hammer out a compromise with Moscow. Moscow is not strong enough to impose its will on either the EU or the U.S., but it is strong enough to thwart the Europeans and Americans intentions in Crimea and (eastern) Ukraine, as well as in some other areas, including possibly Syria.

Although, the Atlantic community insists that Russia should withdraw from Crimea, more and more people believe in the bottom of their hearts that it is very much wishful thinking and a no-starter for serious negotiations with President Putin. There are at least two influential actors who seem to be accepting the realities on the (Crimean) ground: President-elect Trump, who declared that this question is negotiable, and the German business community, which

is eager to resume unhindered lucrative trade with Russia. The demand for ’normalizing’ trade relations with Moscow may be growing together with the economic and monetary problems in the southern flank of the EU.

2016 - a game changer?

Another ’victim’ of the past year is the hope that Turkey may join the European Union any time soon – if it wants to join the Union, at all. The domestic political twists and turns in Turkey seem to indicate that Ankara is less and less keen on chasing an elusive membership. Turkey’s geopolitical interests do not necessarily overlap with those of the EU all the time, and President Erdoğan has come to the conclusion for all intents and purposes that there is life outside the Union.

His decision, together with a not too friendly Russia in the East and a potentially rather aloof U.K. in the West have not improved the geopolitical and geo-economic positions of the EU, which is clearly in an identity crisis.

The identity crisis is not restricted to the EU; in a broader sense the post-Cold War shift in international relations in favor of the ’emerging’ countries continues, while the liberal social consensus in the Western societies has come under attack from left and right alike. To answer the question whether 2016 was a game-changer or not would be too premature, but it seems to be beyond doubt that some long-held conventional wisdoms do not apply any more.

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“Naturally, my mission here is to represent Portugal in Hungary and develop the best possible relations between the two countries. We have strong and long term cultural relations but they can always be improved. The promotion of the teaching of Portuguese language and culture is also part of my mission here,” Ambassador Morais Pires tells Diplomacy&Trade.

She adds that “since we now both belong to the EU, our economic relations have strengthened but they need to be deepened and widened. Tourism is an area that has been growing very much in both directions.”

She handed over her letter of accreditation to the Hungarian President in April 2015. Since then, one of the achievements that she can report concerns the growing number of universities and secondary schools that teach Portuguese. “There are seven universities and seven secondary schools, with 26 teachers and 370 students in Budapest, Debrecen, Pécs and Szeged,” she says.

This means that this year Hungary was able to obtain J A N U A R Y

DÁVID HARANGOZÓ

INTERVIEW WITH MARIA JOSÉ MORAIS PIRES PORTUGUESE AMBASSADOR TO HUNGARY

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ENHANCING LONG-TIME RELATIONS

the status of observer to the Community of Portuguese Speaking Countries (CPLP), which includes Brazil and Angola, among the other eight member countries with 220 million speakers, altogether.

“I am also glad to report that the Portuguese airline company, TAP will restart its direct flights BudapestLisbon-Budapest, from July 1, 2017,” she adds.

BY SÁNDOR LACZKÓ

Two Nations, One Force As for Hungarian-Portuguese political relations in general, Ambassador Morais Pires points out that Hungary and Portugal are countries with the same size, the same population [see our country comparison chart], and with an old and rich history behind them. “So, we have interests in common and obviously even more now that we both belong to the European Union and NATO, among another international organizations.”

Bilateral meetings between foreign ministers took place in 2015 and also this past December in Brussels. “In the EU framework, we should strive to take common positions on several relevant

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portugal focus issues, such as the Cohesion Policy, the Financial Framework and the consequences of the Brexit, for example,” the Ambassador stresses.

In the multilateral context, as members of NATO, troops from Portugal and Hungary participate together in the same KFOR Tactical Reserve Maneuver Battalion (KTM) in Kosovo. “Their motto is ‘Two Nations, One Force’. This also shows that the relationship between the militaries of the two countries is excellent,” says Ambassador Morais Pires who is also accredited to Kosovo.

DÁVID HARANGOZÓ

REGIAO DE TURISMO DO ALGARVE, JOSE MANUEL/TOURISMO DE PORTUGAL, POR LIJEALSO/WIKIPEDIA

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Business ties

of Portuguese products during the ‘Portugal Days’, including the tasting of Portuguese wine,” she highlights.

The Ambassador regularly meets with many of the Portuguese business people who have settled in Hungary and they say they have managed to adapt to the conditions here well. “The Portuguese have had a worldwide experience throughout our history and so, they also find interesting opportunities here. One of them established an irrigation business for agriculture in Kecskemét and it is very successful. We hope to help Hungarian agricultural businesses with machines and Portuguese technology in this field.”

As for the business environment in Hungary, the Ambassador says Portuguese investors are worried sometimes but those who have a well-established position and market in Hungary are happy and many of them are thinking about expanding their presence.

From language to architecture Regarding cultural relations, Ambassador Morais Pires first mentions the ‘Instituto Camões – Budapest Portuguese Language Center’ (located at the Department of Portuguese Language and Literature of ELTE University), which coordinates the teaching of the Portuguese language with almost 400 students in Hungary currently. “We also have university studies

“Economic relations between Portugal and Hungary have been steadily growing but, naturally, they can be improved. Our main exports consist of machines, plastic and rubber pieces of equipment, mostly for the Hungarian automobile industry, as well as textiles and cork products. One of the most important investors in Hungary is Portugal Telecom that has a 46% stake in HungaroDigitel, which is an important player on the Hungarian telecommunications market. Also, the Portuguese cork industry has a place in the Hungarian market, with a plant in Veresegyház (east of Budapest) that I visited a few months ago. It is a decadesold investment of Amorim Cork, which has plans to expand further in the Central Europe region.

I believe the presence of the Portuguese cork industry must be developed here not only through the provision of stoppers for the wine bottles, but also through many other natural products such as isolation panels for buildings. These are in use already in several buildings in Budapest, like in the Palace of Arts (MÜPA). I must also point out that in June every year, the Budapest Central Market provides an excellent setting for the presentation 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

in Portuguese history and culture here. For example, the professors of ELTE are renowned specialists in Fernando Pessoa, a major Portuguese poet. They frequently participate in several activities in Portugal as recognized experts. The 19th century Hungarian poet, Sándor Petőfi was a great admirer of Camões and wrote several articles about him.”

She adds that she is also working to bring a great Hungarian architect of the 18th century who participated in the reconstruction of Lisbon, after the tragic earthquake in 1755to the attention of more Hungarians. His name is Károly Martel (known by the Portuguese as Carlos Mardel). “It was him who introduced Hungarian construction style in the roofs, fountains and aqueduct of Lisbon. He is a well-known artist in Portugal but is still largely ignored over here.”

The 19th century also had a Portuguese-Hungarian connection worth mentioning. In 1836, Ferdinand – the son of Antónia Koháry (of the historical Hungarian noble family, the Kohárys) and of Prince Ferdinand from the House of Saxe-Coburg and Gotha – married Queen Mary II of Portugal and one year later was named the King of Portugal, like all consorts. Thus, their descendants, including the last four kings of Portugal (Pedro V, Luis I, Carlos I and Manuel II) had Hungarian blood in their veins.

Hungarian Chamber of Commerce, Dr. Miguel de Pape.

The Ambassador points out that his grandfather had been a famous rheumatologist in the well-known Gellért thermal bath in Budapest before he had to flee Hungary during World War II. He was on his way to the United States when he, by chance, met a Portuguese doctor in Lisbon with whom he founded an institute of rheumatology in the Portuguese capital. “We have several stories like this from those times. Like that of the family of Zsazsa Gabor. One can say that basically every Portuguese person currently in their ‘60s and ‘70s knows a Hungarian from those times – that is true even for the current President of the Republic of Portugal! Hungarian immigrants and their descendants have become valued members of Portuguese society.

Some of them have recently financed the trip to Budapest of some Portuguese students on the 60th anniversary of the 1956 anti-Stalinist uprising.”

Mutual friendliness

HUNGARY

PORTUGAL

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

92,090 sq km 111 10,833,816 (July 2016 est.)

83 0.07% (2016 est.)

192 9.1 births/1,000 population (2016 est.)

208 79.3 years 49 2.6 migrant(s)/1,000 population (2016 est.)

39 $27,800 (2015 est.)

66 12.4% (2015 est.)

139 11.715 million 76 64 (2013) 77

The legend that the first Portuguese king’s father was of Hungarian origin is mentioned in the major Portuguese work of literature ‘Os Lusiadas’ written in the 16th century. Some say that could be one of the reasons why Portuguese people believe Hungarians are friendly people.

As the Ambassador puts it, “the adventurous past had fascinated Portuguese and Hungarians for a long time. For instance, Portuguese knights may have actually fought against the Ottoman Turks in Hungary. This particular legend, included in ‘Os Lusiadas’, although not historically certain, undoubtedly contributed to a strong interest between the Portuguese and Hungarians other for several centuries. We find this reflected in the literature and poetry of both countries.

When we think that Hungarians are friendly, it is because they really are. You can still hear from Portuguese, who were alive in 1956, stories about Hungarian children who arrived in Portugal during and after the Hungarian Revolution. Earlier, during World War II, a number of Hungarians came to Portugal, and some of them stayed and are very well integrated.”

A family to be mentioned in this context is that of the current director of the Lisbon-based Portuguese-

Beigli It is the first time that Maria José Morais Pires has been in Hungary. As ambassador, she has been here close to two years now. She believes both Portuguese and Hungarians have very strong feelings of identity. What she finds different is that in her view, Hungarians are much more disciplined than the Portuguese.

Places she has visited in Hungary, and has nice memories of, include Pannonhalma (in NW Hungary with its thousand-year-old archabbey), Szekszárd where she was invited by several wine producers, the medieval royal town of Visegrád (in the Danube Bend, north of Budapest) and the southern Hungarian city of Pécs where several professors from Portugal teach the language and culture of their country.

Ambassador Morais Pires also has her favorite Hungarian dish, namely, the beigli, a poppy seed roll consisting of a roll of sweet yeast bread with a dense, rich, bittersweet filling of poppy seed – a traditional Hungarian dish for Christmas. Therefore, she had many opportunities to taste it in the past few weeks.

Source: World Factbook

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TO PORTUGAL and BEYOND TAP PORTUGAL RETURNS WITH LISBON-BUDAPEST FLIGHTS IN SUMMER 2017

Apart from passengers with Portugal as their destination, the re-launch of this direct flight could also be favorable for those traveling overseas.

“Three years ago, Hungary and Brazil signed an intergovernmental agreement through which some 2,000 Brazilians students came to Hungary. Most of them study here at the Technical University in Budapest, others in Szeged, Miskolc and Debrecen.

We have always had Hungarian travelers going to Lisbon but not in large numbers. The movements of these students – and sometimes of their families – between the two countries generated greater traffic on the Budapest-Lisbon route. And it is not only them! It might be surprising but the third largest destination for TAP passengers leaving from Budapest is the Brazilian capital, Brasilia. Near that city, there is a priest, Joao, who is said to be able to heal people diagnosed with terminal illness, having organ problems or pain in their joints. We have already transported 270 people there from Hungary. Other segments to Brazil include people

“FOR ME, RELATIONS WITH THE TRAVEL AGENCIES IS VERY IMPORTANT. THIS IS THE BASIS ON WHICH WE CAN START THE TICKET SALES IN ADVANCE. PASSENGERS BROUGHT IN BY TRAVEL AGENCIES ARE FOLLOWED BY AD HOC GROUPS AND INDIVIDUAL PASSENGERS.” traveling to the Renault factory in Belo Horizonte; people traveling home from a Brazilian plant in Szombathely, Western Hungary; and a growing number of Hungarians go to Brazil to take part in parades and carnivals,” the Sales Manager explains.

However, Lisbon is a ‘stepping stone’ not only to Brazil but also to Morocco where TAP is transporting several groups every year through an agreement with a travel agency “as we manage to provide more flexible conditions than the charter operators. We also have a lot of connecting flights to several destinations in Spain like Andalucía or Galicia. We also fly to three destinations on Cabo Verde off the coast of Africa in the Atlantic Ocean. We invite the representatives of the various travel agencies who

POPULAR DESTINATION WITH PLEASANT EXPERIENCE

Kam Jandu, the Chief Commercial Officer of Budapest Airport welcomed the return of the Portuguese national carrier by saying that “Lisbon is quite rightly a popular destination amongst our passengers, and TAP Portugal’s summer schedule provides excellent connectivity between the two capitals, as well as to other Portuguese cities, via transfer in Lisbon. TAP’s wide range of high-quality services makes the journey a pleasant experience, so we expect significant traffic on the route this year.”

A statement by Budapest airport highlights that the seven weekly flights are favorable for visitors seeking a short city break, as well as those planning to stay longer. “The exotic and beautiful Azores and Madeira archipelagos can both be accessed easily from the Iberian capital. The latter has been popular with Hungarian tourists, as it bears a connection to Hungarian history; Charles Habsburg IV, the last Austro-Hungarian king, is buried there. TAP’s flight schedule also offers passengers convenient transfer connections to Morocco, Cabo Verde and Brazil.”

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organize groups to these destinations on a road show and provide them with leaflets and other information material in order to convince them to book their passengers’ travel with us,” he adds.

In addition, he mentions another group of regular travelers. “We found that every year, there is a group of about 300 people, youngsters, who go to the New York City area in the United States to work as camp counselors in vacation camps for children. We are also working on getting into the business of transporting groups to Miami, Florida where a lot of people travel from Hungary to get on Caribbean cruises.”

means travelers can connect to the entire TAP network from there, 70 destinations altogether. In case there is no connection that day, TAP welcomes the passenger for a day in the Portuguese capital with transfer to the city and back, sightseeing and hotel for the night,” the Sales Manager adds.

Rival on the Lisbon route The low-cost airline WizzAir started direct flights between Hungary and Portugal in the summer of 2015. “They target a different segment of travelers and it turns out that the two air carriers actually complement each other. When we stopped the direct flight last summer, WizzAir raised their prices by 30% and operated with a 90% load factor. They have Hungarian passengers primarily and have not really managed to penetrate the Portuguese market,” Péter Szolnok highlights.

As for the near future, he points out that “TAP will fly to Toronto, Canada and not only Newark but also to JFK in New York City in North America as well as two Spanish destinations, Alicante in Andalucía and Las Palmas in the Canary Islands.”

Connecting Budapest to the world Usually, 60% of the travelers on a LisbonBudapest flight are Portuguese/Brazilian.

“We would like to make the flight schedule more attractive for Hungarian travelers but one must take into consideration that this is the Portuguese national air carrier that should primarily serve the Portuguese interests and expectations. What we managed is to have Saturday and Sunday in the Lisbon-Budapest schedule and have early morning flights to Lisbon which J A N U A R Y

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Passenger segments and destinations

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This past December, TAP Portugal announced the re-launch of direct flights between Budapest and the Portuguese capital, Lisbon. The route will operate as of 1 July 2017, every day except Fridays, seven times a week in total (with two flights early in the morning and five in the afternoon), with Airbus A319 type aircraft. The flight time to Lisbon is just three and a half hours with the airline offering passengers a hot meal and fine Portuguese wines, at no extra cost.

These on-board services are included in the fare, along with a maximum of 23 kg hold baggage.

TAP is an airline with a modern fleet of aircraft, Airbuses that satisfy the requirements of the 21st century. Within the Star Alliance, the Portuguese national carrier serves South and North America as well as Africa from its Lisbon hub, Péter Szolnok, TAP Sales Manager for Hungary, Romania, Serbia and Moldova explains to Diplomacy&Trade.

TAP previously operated a direct Lisbon-Budapest flight that was discontinued last April due to a reorganization within the company. As the Sales Manager points out, calculations have since proven that TAP needs the revenues from this route. “Also, the three planes that were on loan to our mother company Azul Linhas Aéreas in Brazil during the Rio Olympic Games are back in service at TAP,” he mentions another reason for the resumption.

He recalls that it was important for the airline that it could retain its passengers/groups who had already had their tickets booked with TAP when the announcement about the termination of the direct flight was announced. These people were transported by bus from Budapest to Vienna from which there are flights to Lisbon twice a day.

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CONNECTING THE WORLD HUNGARO DIGITEL PROVIDES DATA COMMUNICATION GLOBALLY In a growing forest of satellite dishes in Lakihegy, on the southern border of Budapest, lies the headquarters of Hungaro DigiTel (HDT) Plc., the largest Hungarian satellite data transmission service provider and one of the determining players in this area on the European market. It is a Hungarian-Portuguese joint venture established in the early 1990s.

The Hungarian broadcasting company Antenna Hungária has the majority stake in it with Portugal’s PT Participacoes (member of Portugal Telecom group) as the minority shareholder.

In terms of the number of people employed, about 40, Hungaro DigiTel Plc. may seem a small company but its annual revenues amount to approximately HUF 3.5 billion (over EUR 11 million), serving about 50 partners at some 4,100 locations, most of them in Hungary, some of them in the region and some of them elsewhere in Europe and other continents where millions of users (from players of lottery games to viewers of TV channels) may not even be aware that they are using HDT’s services.

by us in the form a DTH (direct-to-home) service from satellite to viewers in Hungary and elsewhere in Europe but we also provide uplink services for some other Hungarian television channels, as well,” António Felizardo points out.

Although, in a smaller scope, satellite communication by HDT is used by services like a library bus roaming remote areas in rural Hungary and providing the opportunity for locals to use the Internet. “Speaking of the provision of Internet data, let me mention a new service of ours, which is the management of the central service center – a communication base – for the nationwide Wi-Fi Internet access to be built out by Antenna Hungária,” he adds.

Global service provider Another important partner for Hungaro DigiTel is the Hungarian Ministry of Foreign Affairs and Trade. The General Manager highlights that “we have very interesting projects in the making. The Hungarian government’s efforts to expand to regions that were not traditional trading partners of Hungary before (‘Opening to the East’, ‘Opening to the South’) also require communication with those regions (Asia, Africa, Latin America), which makes HDT basically a global service provider for the Ministry, creating links from Budapest to such remote places as Chile, Korea or the Philippines. The world has not become a safer place over the last decade and this fact makes it necessary to have more secure communication with embassies, consulates and other representation offices all over the world. So, if you stop by the Hungarian Embassy in Canada or in Africa, for that matter, and would like to have a document issued, that Embassy is likely to use our services to verify information through a secure communication line provided by HDT.”

Portuguese experience transferred

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DÁVID HARANGOZÓ

As General Manager (GM) Antonio Felizardo, who has been at the helm at the company since 1999, explains to Diplomacy&Trade, the most important element that the Portuguese partner brought to Hungary at the beginning of this partnership was the technical know-how.

“The banking sector in Portugal experienced substantial expansion – as part of its economic development – after the country joined the European Economic Community (the predecessor of the European Union) in 1986. The traditional infrastructure of the banking system was not able to cope with this rapid expansion. In order to provide connections for the growing network of branches, banks adopted an American technology (quite new at that time): communication via satellite. The fruits of this experience were then harvested in Hungary that was very much in need of modern technology in the early 1990s, just a few years after the change of the political system.

Among other things, a new banking system had to be developed here and the Portuguese experience came handy in that situation.”

So, banks were among the first clients of Hungaro DigiTel and they are still among the most important customers, the largest of them is OTP Bank whose partnership with HDT began in 1994. “At that time, the bank needed fast and reliable connections to expand its automated teller machine (ATM) network all over Hungary (with half of the bank’s national ATM network still using HDT’s services) and it is still a partner as HDT follows OTP’s expansion into the neighboring countries. Secure lines provided

by Hungaro DigiTel allow the authorization of bank card payments, for instance,” he adds.

Connected clients Another important group of clients is petrol stations. Members of these gas station networks are usually scattered around the country (like near motorways) where there is no integrated communication network – other than via satellite – to connect all of w w w . d t e u r o p e . c o m

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them. Most of these shops are in Hungary but Shell also uses HDT’s service in Bulgaria.

The HDT client with the most connection points throughout the country is Szerencsejáték Zrt., the largest gambling service provider in Hungary.

Even at the traditional lottery game, an instant feedback is required to certify the validity of the ticket in the national lottery system. However, in this modern age, newer and newer (sometimes

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live) games are introduced and the digital data service provided must keep with these tasks, creating new challenges for Hungaro DigiTel, as well. For instance, screens at Szerencsejáték offices are “filled” with live scores and even live broadcasts from sports events by HDT. “Actually, that is not the only broadcasting service we provide. For about two years now, Hungarian state television and radio channels are distributed

Portugal has also reached a quite advanced stage in Europe in implementing the ‘e-government’ concept, providing its citizens with the possibility of Internet-based administration. “There, you have these best practices that we don’t have to invent; we just import these ideas and implement them. The two countries are easy to compare as they are similar in size and in the number of inhabitants, what’s more, even the level of economic development is not that different,” Antonio Felizardo explains. As the latest example, he mentions that the new electronic ID system introduced in Hungary in January 2016 is based on the Portuguese model.

“We are obliged – because of the competition on one hand and increasing demand by our clients on the other – to use newer and newer technologies, to become more efficient, to be able to provide larger bandwidth. Of course, there is continuous progress: opening towards new services (like the provision of uplinks or the management of the Wi-Fi network) requires the acquisition of new technologies. So, the company always looks forward, makes steps ahead, expands its international network and in 2017, we expect to be present in as many as 70 countries,” the General Manager concludes.

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CORK STOPPER IS THE REAL THING

QUALITY AND SERVICE APPREACIATED BY CLIENTS OF HUNGAROKORK-AMORIM Portugal’s Corticeira Amorim is the world’s largest cork industry company. It has subsidiaries in over one hundred countries and territories on five continents. The very first Amorim joint venture abroad was established in Hungary as ‘Első Magyar Parafavállalat’ (First Hungary Cork Company). In 1984, the Portuguese company bought the firm – from then on called HungarokorkAmorim Co. Ltd. – and it came to be a 100% Portuguese owned company in Hungary.

“As far as I know, a member of the Amorim family is an honorary consul of Hungary in Portugal, so, they have quite strong ties with Hungary,” HungarokorkAmorim General Manager, Viktor Mészáros tells Diplomacy&Trade.

The company, headquartered in Veresegyház, a town of 17,000 people northeast of Budapest, receives half-finished cork products from Portugal (mainly cork stoppers) and brands them with letters and logos, as required by the clients (mainly cellars and wineries). Trucks set out from Portugal every Friday and the cork material is in Hungary within a week.

salespeople. According to Mészáros, annual sales at Hungarokork-Amorim amount to HUF 550-600 million, 80% of which is realized from Top 30 wineries. “We have a lot of small clients, also, but we serve them just as well.

Besides, you never know whether a small client becomes an important one in the future; we have seen several such examples.”

TCA problem solved

Natural cork products (other than stoppers) marketed (wholesale and retail)

by Hungarokork-Amorim include cork sheets – the latter used by carpenters or for medical (e.g. orthopedic insoles) and other purposes. “Perhaps, the most peculiar use of cork in Hungary is by the Ajka Crystal factory. We cut out a piece from the widest (60-mm) sheets we have and make it into a disk that is then used in the factory to polish crystal products by hand because it is a soft, natural material that will not scratch the crystal glass,” the GM explains.

There is a Hungarian firm, Laurum Ltd. They also sale Amorim products originating from Portugal. The difference is that while Hungarokork-Amorim is fully in Portuguese ownership, Laurum is a Hungarian company, an exclusive vendor of Amorim products (cork parquet, wall covering, insulation material, etc.) in Hungary.

Portugal has the most extensive cork oak forests in the world. It is in its age of 4344 years that a cork oak first provides sufficient quality bark to be used for premium natural cork stoppers. Then, you can harvest the bark again every 9-10 years and a cork oak usually lives for 250-300 years. Cork bark is removed from the cork oak and undergoes several technological processes before Hungarokork-Amorim receives it in the form of plain stoppers.

“Apart from being a natural material, it is very nice to touch it. It is used by NASA as insulation material in a newly developed space shuttle,” the General Manager says.

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Over 500 clients “We are in daily contact with Hungarian wineries. We receive orders every day. We have a colleague covering the eastern half of the country and another one the western part,” says Viktor Mészáros who, as the head of the company, also stays in contact with the customers, especially the key accounts.

“All this requires staying in contact with them on a daily basis. In 2016, we had more than 500 customers (small, medium and large) – with 500 different mindsets, 500 different demands, 500 different labels. So, our work includes a lot of flexibility and productivity, too. Wine is not a fundamental piece of nourishment and the cork stopper is also a product of trust, therefore, the maintenance of our venture very much depends on the human aspect of business relations.”

The everyday process at HungarokorkAmorim, which employs only seven people altogether, is that upon receiving the order, the production coordinator prepares a work order and takes it to the storage facility

from which the plain cork stoppers are taken to the work area where they are fitted with the appropriate label (that can be any graphic design). This is followed by a 24-hour technological waiting period for the food coloring (used as paint) to dry properly. “On demand, we can also burn the label onto the cork – some wineries prefer that,” he notes.

Although, there is a wide variety of cork stoppers provided by the Portuguese factories, Hungarians generally prefer the plain brown one and over half of the firm’s income is realized from this product. “If you look at this market, we are not the least expensive but for a higher price, we provide wineries with the quality and service they require. After receiving an order for cork stoppers, we undertake a door-to-door service within one week or one and a half. We have a stock of the natural plain corks here in Veresegyház. Based on experience – I myself have been working here for over ten years –, we know the supply time of the different kinds of products and accordingly, we always keep a stock of those – obviously, more of the quicker selling ones. However, we also take orders for special, high quality products in which case, the plain corks arrive from Portugal on individual order,” he points out.

Tokaj; Eger-Mátra; Szekszárd; Villány; and the Lake Balaton region – these are the Hungarian wine regions from which wineries account for about 90% of HungarokorkAmorim’s annual sales – and these are the regions most visited by the company’s J A N U A R Y

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The beating heart of cork Amorim's Corporate Film This film presents Amorim’s remarkable achievements and cork’s unique story, while highlighting the commitment, love and passion that people from around the world have for this irreplaceable and exceptional raw-material.

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Still, cork stoppers are the best known and traditional wine closures but HungarokorkAmorim’s business would not be like it is today if the alternative closures had not come to be used 10-15 years ago. Cork has always struggled with the TCA (Trichloroanisole) problem, that is, the ‘corky’ taste in wine. The General Manager highlights that “our mother company invested EUR millions in research and development to eliminate this compound from the system to prevent the ‘corkyness’ problem. It is a serious responsibility for cork stopper producers to supply products that will not cause this ‘corky’ taste that could ruin even the best wines of the world.

I daresay that if you follow the proper steps and follow the basic rules in prevention and treatment, there will be no such problem.

Amorim has a very well functioning treatment system for that, the ROSA (Rate of Optimal Steam Application) technology.”

Cork stopper orders largely depend on wine types. In case of high rotation white and rosé wines, the bottle is usually closed with screw cap or technical corks but for premium categories, the expectation is the same in Hungary as in any other country: bottles are closed with the highest quality natural cork stoppers. “In many countries of the world, customers are much more conscious, much more attentive when selecting a wine in the store – they choose wines with cork stoppers because cork is a natural material, cork forests in Portugal (800,000 hectares) are the second largest eco-system in the world as far carbon dioxide is bound, so, it goes through their minds in much more detail how they can contribute to sustainable development.

In Hungary, this environment consciousness is not that characteristic, yet,” he adds.

In its own way, Hungarokork-Amorim contributes to sustainability by marketing natural products. As the General Manager puts it, “we can serve anyone’s need from 100 to 100,000 or even a million cork stoppers.”

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education

BETTER KNOWN AND BETTER CONNECTED BUDAPEST’S GERMAN SPEAKING UNIVERSITY GETS MORE RECOGNTION

There are studies in four main areas: history and cultural studies; comparative legal studies; political sciences and international economy and business. A brand new feature is the Master of Management and Leadership.

The Andrássy University is connected to the Austrian Ministry of Science, Research and Trade and the German academic exchange service DAAD through which students and professors are received and also sent from Budapest.

In addition, there is a sister institution in the

founding states and provinces (e.g. the University of Heidelberg in Baden-Württemberg) and they send their own professors to teach here but these people remain connected to that given university.

The maintenance of the building, itself, and the Hungarian staff – from the doorman to the professors –, are financed by the Hungarian state.

Looking back at the past 14-15 years, Prof. Masát says there have been several achievements.

“Our situation has solidified in the regional higher education system, the Andrássy

University became known in many circles, a lot of lectures and conferences are held here (basically, one every week), our colleagues are full of energy – so, we are better known and better connected to the academic world. We now have been accepted by the Hungarian and German academic accreditation systems and standards. It is also important that we have been recognized as ‘Excellent University’, a title earned by not more than ten institutions in this country,” he concludes.

DÁVID HARANGOZÓ

Following the change of the social and economic system in Hungary in 1988-90, interest in German language and German culture saw a decline, giving rise to English. However, in the past 5-7 years, there is a growing interest in the German language again – this time fuelled primarily by job opportunities in Germany, Austria and other German-speaking areas. “One must admit that these people are not really aroused by mysteries in Goethe’s Faust and not even Heine’s last decade, but the practical use of the language. This is how we see the importance of Wirtschaftsdeutsch [business German] – along with Germany’s political and economic power - rising,” Prof.

Dr. András Masát, the Rector of the Andrássy Gyula - German Speaking University Budapest explains to Diplomacy&Trade. For instance, the university has native German legal experts and economists as professors, which means that the professional terminology is passed on in German.

The Andrássy University Budapest, named after Count Gyula Andrássy, the first Hungarian prime minister of the Austro-Hungarian Monarchy, was founded in 2001 by three countries (the Federal Republic of Germany, the Republic of Austria and Hungary) and two German federal states (Bavaria and Baden-Württemberg), and opened its doors to students one year later. At that time, Hungary was not yet an EU member and the founders’ intention was to create an institution in Hungary that helps providing European Union knowledge to intellectuals in Hungary.

As Prof. Masát points out, this objective has changed since. While the university still serves as a sort of bridge between the old and the newer EU members, the emphasis has now shifted towards ‘pre-training’ of people from the prospective new members of the European Union in the West Balkans. Approximately, over one third of the students are Hungarian, less than one third are from the other founding countries and provinces and the rest from other countries – ‘from Albania to Venezuela’ as the CityTaxi_Hirdetes.ai 1 2015.01.20. 8:26:22 professor puts it –, from 19 countries altogether.

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GE OPENS GLOBAL DIGITAL DEVELOPMENT CENTER IN BUDAPEST

FIRST WHITE HOUSE MEETING BETWEEN BARACK OBAMA AND DONALD TRUMP

HUNGARY AT THE EUROPEAN FOOTBALL CHAMPIONSHIP AFTER 44 YEARS

A MAGNITUDE-6.2 QUAKE DESTROYS MOST OF AMATRICE, CENTRAL ITALY

THE 24TH SZIGET FESTIVAL IN BUDAPEST

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THE HUNGARIAN MOVIE ‘SON OF SAUL’ WINS ACADEMY AWARD

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DENIS VILLENEUVE, RIDLEY SCOTT, HARRISON FORD AND RYAN GOSLING IN HUNGARY TO SHOOT ‘BLADE RUNNER 2049’

PÉTER SNOJ/KATONAI FILMSTÚDIÓ, DÁVID HARANGOZÓ, STEPHEN VAUGHAN/WARNER BROS., PHIL MCCARTEN/A.M.P.A.S., KEVIN LAMARQUE/REUTERS, TIBOR ILLYÉS/MTI, SÁNDOR CSUDAI, TAMÁS KOVÁCS/MTI

MERCEDES ANNOUNCES THE EXPANSION OF ITS PRODUCTION PLANT IN KECSKEMÉT

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HUNGARIAN AIR FORCE GRIPEN PLANES COMPLETE BALTIC AIR POLICING MISSION

HUNGARIAN CHEF WINS BOCUSE D’OR EUROPEAN FINAL

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IT SERVICES HUNGARY CELEBRATES THE 10TH ANNIVERSARY OF ITS FOUNDATION

PÉTER SNOJ/KATONAI FILMSTÚDIÓ, DÁVID HARANGOZÓ, STEPHEN VAUGHAN/WARNER BROS., PHIL MCCARTEN/A.M.P.A.S., KEVIN LAMARQUE/REUTERS, TIBOR ILLYÉS/MTI, SÁNDOR CSUDAI, TAMÁS KOVÁCS/MTI

DÁVID HARANGOZÓ, SZILÁRD KOSZTICSÁK/MTI, JOAQUIN.IGNACIO.MC/WIKIPEDIA, NOÉMI BRUZÁK/MTI, VARALJAIFOTO@GMAIL.COM, NESTLÉ, MÁRIA WEBERNÉ ZSIKAI/MTI, JEAN REVILLARD/REZO/SOLAR IMPULSE

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BEST OF BUDAPEST & HUNGARY AWARDS 2015

‘BILLY ELLIOT’ - THE MUSICAL’S HUNGARIAN DEBUT AT THE ERKEL THEATER IN BUDAPEST

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GERMANY’S NICO ROSBERG (MERCEDES) WINS 31ST HUNGARIAN FORMULA ONE GRAND PRIX

HUNGARY WINS 8 GOLD MEDALS IN THREE SPORTS AT THE RIO OLYMPIC GAMES

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NESTLÉ HUNGÁRIA CELEBRATES 25TH ANNIVERSARY

TRUCK DELIBERATELY DRIVEN INTO CROWD BY TERRORIST IN NICE, FRANCE ON BASTILLE DAY

SOLAR IMPULSE 2 COMPLETES THE FIRST ROUND-THE-WORLD FLIGHT BY A SOLAR-POWERED AIRPLANE

THE NATIONAL GALLOP IN BUDAPEST

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PRESERVING WATER FOR FUTURE GENERATIONS BUDAPEST WATER SUMMIT 2016 AIMED AT SUSTAINABLE DEVELOPMENT

ISTVÁN JOÓ I believe that the whole country can be proud of this event and the results achieved. The overall assessment will obviously take some time and certain results will only be seen after a few years.

Three years after the first Budapest Water Summit, today, we know that the 2013 event had an extremely powerful impact on the world's water management as water and sanitation issues were included in the UN Sustainable Development Goals as a result of that Summit in Hungary. I am quite sure that the 2016 event will have an even more significant impact on the fight to avoid the looming water crisis, as it outlined for the coming 15 years the strategic directions that may lead to sustainable water management on national, regional and global levels by 2030.

The importance of this cannot be overstated.

Based on continuous feedback, we can safely say that the Budapest Water Summit, held under the patronage of the President of the Republic János Áder, was the most important and decisive water event in 2016 on a global scale. What we undertook was, figuratively speaking, that we bring together in Budapest all key actors in the field of sustainable water management, and also that we jointly outline our tasks for the next 15 years.

High-level policy-makers came to Budapest

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from 117 countries, key players in the academic, business and financial world, to jointly develop the action plan, which may greatly contribute to everyone having proper quality drinking water and access to basic sanitation and sewage systems by 2030. However, the proper management of hydrological extremes linked to climate change is just as important as the sustainability of water ecosystems. All these problems may seem remote here in Central Europe, but if we look at the root causes of mass migration or the relevant predictions, we can easily understand that water has become the most important challenge (and problem to be solved) in the 21st century.

In Budapest, we not only talked about the problems to be solved but we determined how we can overcome the challenges. It is clear that there is a need for innovative solutions and technologies in water management.

At the Expo of the Water Summit, we introduced, in large numbers, tradable water management innovations and products that can be implemented in any part of the world.

The messages of the approved final document, which we can also call an action plan, are a reason for optimism despite the difficulty of the subject. We have not only demonstrated to our guests that Hungary

to be done in order to change attitudes. In his opening address to the Summit, President of the Republic János Áder rightly underlined that the participants came to Budapest to achieve that "water should become the central question of the political thought and action." Without the latter, we will not be able to handle the challenges which we are already facing when it comes to the most expensive but, at the same time, one of the scarcest natural resources, namely water. In addition to the plenary session, four thematic fora were held at the Summit, with participants representing women, science and technology, youth and civil society.

Among these, civilians, women and youth play a special role in shaping the attitudes, the socialization of the issue. Each forum has contributed with substantive proposals to the Summit’s final document, whose subtitle is ‘the way forward’. We believe that this event in Budapest produced a significant step forward in many areas, primarily in shaping the mindset of societies. Given that a large number of countries were represented at the event, the messages of the Budapest Water Summit have reached many parts of the world. In the coming months, Hungarian diplomacy will see to it that the results of the event reach as many people as possible.

DIPLOMACY&TRADE What were the key issues discussed?

ISTVÁN JOÓ The participants of this year’s Summit, including heads of state and government and the President of the UN General Assembly, jointly overviewed answers to be given to the most important water challenges. First, we put the issue in context and highlighted the fact that water is related to all other areas in the sustainable development framework. In other words, if the water target is not met successfully, the implementation of the whole framework of sustainable development is doomed to failure.

One can easily understand that it is not possible to eradicate poverty and hunger by 2030, and the fight against climate change – or the protection of the ecosystem – cannot be successful either if we do not take steps forward in solving water challenges. During the three days of the Summit, the participants thoroughly reviewed the most important problems to be solved, that is, the way in which we provide affordable and adequate quality drinking water and sanitation for all, and also how we can improve the quality of our waters, the efficiency of water use and the protection of water-related ecosystems.

DIPLOMACY&TRADE South Korea's former Prime Minister, Han Seung-soo suggested in his interview with Diplomacy&Trade that next time, finance ministers should also be invited to these discussions because “they are the ones who deal with money and they are the ones who get to know, when they attend conferences like this, that these projects are important and when they go home, they can give more money for such purposes.” To what extent did the participants of this Budapest Water Summit talk about the financial resources – or the lack of them?

DIPLOMACY&TRADE In interviews we had at the Budapest World Water Summit 2016, the view was raised on several occasions that people have to change their mindset in order to achieve real results. What could the Summit do in this direction?

ISTVÁN JOÓ Changing the mindset will only be successful if we manage to explain to people that things that we take for granted in many places in the world are not so in most parts of the world. For us, Hungarians, it sounds alarming that, according to United Nations estimates, nearly one billion people have no access to safe drinking water. It would be an interesting social experiment to see what the impact would be if there was no clean drinking water in our households for just 1-2 days. We carried out a much more modest experiment as an introduction to the Summit: we examined, in a busy public area, how many people would close a tap that we deliberately left open. We ourselves were shocked by the results because we found that out of 1,200, only 43 people closed it – most of whom were senior citizens.

However, the results of a recent survey show that with regard to the consequences of climate change, 71% of the Hungarian respondents are mostly worried about the lack of clean drinking water. In general, the topic of water and climate change are also present in people's minds.

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ISTVÁN JOÓ The challenge raised by the former South Korean Prime Minister has always been a central issue in dialogues and debates on water: how actors in the given area and those of the financial sector can be brought together and seated at the same negotiating table. Compared to the 2013 Summit, it was an important step forward that this time, the actors of the financial sector, who are of primary importance regarding the implementation of the discussed issue, were present at the Budapest event. The world's nine major multilateral development banks – including the World Bank Group – and the Green Climate Fund participated in the Summit at a management level. These financial institutions have control over USD tens of billions, a resource essential for the management and prevention of the looming water crisis.

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▶ Chair of the BWS 2016 Organizing Committee and Ministerial Commissioner in charge of the implementation of the Danube Strategy, István Joó

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At the three-day World Water Summit (BWS) 2016 in Budapest, 2,200 participants from 117 countries, including heads of state and government, ministers and dominant players in the academic, business and financial world, discussed solutions to the water challenges of the 21st century. Diplomacy&Trade asked the Chair of the BWS 2016 Organizing Committee, István Joó to evaluate the conference.

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water summit ▶ BWS 2016 EXPO

▶ Aquaprofit President Tamás Nádasi presenting water - cleaned by their IWAT system - to (from right to left) Mauritius President Ameenah Gurib-Fakim, Bangladesh Prime Minister Sheikh Hasina and Hungarian President János Áder

Summit 2016, all multilateral development banks, participating at a working lunch held under the leadership of the President of the Republic János Áder, committed themselves to double the amount spent on investments in the water sector in the next five years. We also presented to the representatives of the finance sector, at the Summit’s Expo, new technologies that are waiting for deployment and financing – technologies, which will greatly contribute to tackling the water problems once there are adequate resources.

In addition, the closing document of the Summit sets out specific actions in the area of financing, including the creation of new business models that encourage long-term financial sustainability in the implementation of water services.

DIPLOMACY&TRADE In her interview with Diplomacy&Trade, the President of Mauritius highlighted the role of science and scientists in resolving Earth’s water problems.

How much was this issue discussed at the Budapest Water Summit 2016 and how much do you think the individual governments appreciate the role of science in this area?

ISTVÁN JOÓ We fully agree with Her Excellency’s ascertainment. Therefore, both in 2013 and at this year's Summit, we organized a special forum with the

participation of prominent representatives of science. It is indisputable that science provides an independent and trusted professional backdrop to handling the concerns. In addition, mutual cooperation between the academic world and politics streamlines the transfer of knowledge and reduces the current gap between science and politics.

Nevertheless, we have to improve the conditions for technical, political and social cooperation and help the social sciences be transposed into practice. It is also extremely important if we are to move towards an integrated water resources management – and there are no other good choices. In this spirit, we devoted a special role to water management education and to the higher and secondary institutions involved. In the framework of the Expo, we organized a special education day for colleges and universities (and their students) that are engaged in water education.

DIPLOMACY&TRADE You are also a ministerial commissioner in charge of the implementation of the Danube Region Strategy. What problems of this region were discussed in Budapest?

ISTVÁN JOÓ I must point out here that the two priority areas of the Danube Region Strategy coordinated by Hungary (water

quality and environmental risks) were also presented at the Summit in the framework of a side event, during which my colleagues – together with the representative of the International Commission for the Protection of the Danube River (ICPDR) – outlined the main challenges and achievements of the region.

The Danube Region has obviously different types of problems from the cooperation organized along the Mekong River, for instance.

The latter intends to get to know and build on the experience of the effective co-operation organized on the basis of catchment areas in the Danube Region. We have a very serious framework for the catchment-wide cooperation within which, for example, countries created their joint river basin management plans and flood risk management plans along which they coordinate their actions. They also developed adaptation strategies in relation to climate change, they assess the Danube’s water quality every six years on the entire section of the river, for example, and they also pay attention to raising the awareness of the population with the events of the International Danube Day held every year. On the margin of the Budapest Water Summit 2016, we demonstrated the good practices of the region – for example, what efforts have been made in the optimal handling of flood risk in the region, in the interest of improving water quality or the harmonization of

SZILÁRD KOSZTICSÁK/MTI, ZOLTÁN MÁTHÉ/MTI

IF WE LOSE THE WATER BATTLE, WE WILL LOSE THE CLIMATE WAR

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In a press conference at the Budapest Water Summit 2016, Hungarian President János Áder, declared that if we lose the water battle, we will lose the climate war. He emphasized that, if we are to succeed, a complete overhaul of water management practices is needed, including the reformulation of current institutional frameworks, the coupling of technologies and restructuring of our financial practices. Water is one of the most threatened resources in the world, an irreplaceable natural treasure, an indispensable source of energy and the most important issue of the 21st century, he added. The President stressed that water is the source of security for our lives, our agriculture, our industrial production, our energy generation, our jobs and our economic growth.

He added that water is likewise a vital question of national security. He indicated that water scarcity not only culminates in domestic tensions, but it also leads to international conflicts. According to Peter Thomson, President of the UN General Assembly, the world is headed in the direction of unsustainable development. The primary goal of the Paris Agreement is to maintain the average global warming between 1.5-2.0 °C; however, the world is currently set to experience a 3.0-4.0 °C increase in average global temperatures. He said that human civilization might not be able to survive such an increase in temperatures. Although, the objectives identified in the said climate agreement highlight the tasks at hand, humanity has not yet come to realize the imminent danger we face. If we do not realize the objectives specified in the climate agreement, the future of humanity is in danger, Peter Thomson declared.

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training systems. There is no doubt that much is to be done in the Danube region, however, the cooperation of the 14 countries involved can serve as an example throughout the world.

DIPLOMACY&TRADE Immediate results cannot be expected after such a meeting as it deals with a complex problem, however, the public is awaiting specific details. Can you tell our readers, how the world is going to be a better place after the Budapest Water Summit 2016?

ISTVÁN JOÓ In 2013, we did not think, either, that we would save the world immediately.

However, in the summer of 2014, proposals tabled by the United Nations included a standalone development goal on water, which was also incorporated in the closing document of that Water Summit, and adopted by the UN General Assembly in September 2015. This time, moving into action, we had to find solutions and proposals, aimed at preventing a ‘sneaking’ water crisis. As I mentioned at the beginning of the interview, some of the results will probably only manifest themselves in the long run, but the Budapest Water Summit already gave a lot to the world. The more than 2,200 participants in 2016 jointly concluded what should be implemented in order to avoid a water crisis and how it should be done. Therefore, we can say that we have a common starting point.

The Summit formulated five principles, which – similarly to the Dublin Principles accepted in 1992 – are likely to fundamentally divert water management in a new direction. The messages and policy recommendations of the Budapest Water Summit 2016 draw up a wide range of measures for countries in different stages of economic development.

These clearly show how to manage water in the long-term in a sustainable way. I strongly believe that the results of this Summit – while the pressure on water resources is increasing – also create opportunities so that we can use these resources responsibly by preserving them for future generations in a sustainable way.

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WE NEED TO VALUE WATER! SCIENCE AND FINANCES HELP PEOPLE TACKLE THE CHALLENGES The Budapest Water Summit 2016 (BWS2016) was attended by several representatives of the High-Level Panel on Water whose members (ten heads of state and government) were announced by UN Secretary-General Ban Ki-mun and World Bank Group President Jim Yong Kim. One of the aims of the High-Level Panel, whose members include Mr János Áder, President of Hungary, is to mobilize effective action to accelerate the implementation of the United Nation’s Sustainable Development Goal 6 (SDG6) which focuses on ensuring the availability and sustainable management of water and sanitation for all, at a time of unprecedented challenges.

The Co-Chair (along with the President of Mexico) of that Panel is Mauritius President Ameenah Gurib-Fakim who gave an exclusive interview to Diplomacy&Trade at the Budapest Water Summit.

“The UN has appointed sherpas from the countries that make up the High Level Water Panel. They have had regular meetings and on September 21, 2016, the strategy by the High Level Panel was launched in New York in the margins of UNGA. At the Budapest Water Summit last November, this strategy was discussed with the multilateral development partners and funding agencies essentially from the North.

The latter have the means but the needs are in the different countries and regions. So, how best to address the financing issue? – this is what we talked about a great deal,” she says.

Over and above the financing, there was also talk about the need to speed up the processes because – the President points out – “one can easily get bogged down in highly bureaucratic procedures while accessing the funds. The other danger is that the recipient country may not have absorptive capacity. During the discussion, access to technology was also highlighted. Developing countries need technology to be able to adapt, for example, to climate change and its corollary impacts. One of these impacts is going to be on the water cycles. Many countries will need to access and master the appropriate technologies.

The issue of technology is something that we have to address, as they do not come cheap.

Perhaps, we need to adopt the same approach as what was done in the wake of pandemics like HIV in the 1990s. There is urgency as climate change is already manifesting itself. In my opinion, it is perhaps the biggest threat to humanity.”

manage the water. Then, you also have climate as a problem, it is shifting – again, a water loss. A lot of countries have plenty of water resources but they are poorly distributed – a lot of water is lost because of the slippages.”

The value of water She stresses that people need to value water!

“We don’t value water, we take it for granted and it is only when it is becoming scarce that we start to think about it. So, what are the processes we need to put in place to value water, to safeguard water and how do we ensure that there is not only sufficient quantity but also sufficient quality of water? The unfortunate fact is that billions of people do not have access to safe and clean water across the globe – this should be regarded as a shame by the international community, so, we need to act!”

In Mauritius, there was a major flash flood three years ago: 200 mm of rain in three hours. “Water connects us all but water – through the lack of it or through excess – can also be detrimental. We have to find balance and even more, we’ll have to see how best to manage our water resources and how to ensure good distribution. So, value water, ensure distribution and ensure the quality is good! In Mauritius, we have the same problem as many small island states: the pipe system is not as good as it should be. That is why we have launched a major investment project – as a matter of urgency – to restore the pipe structure.

If we can keep building more infrastructure like dams, we can avoid crises in the dry period which is about four months in my country,” she explains.

President Ameenah Gurib-Fakim has vast experience in scientific diplomacy. As to how much this could contribute to the work of the Budapest Water Summit 2016, she points out that “science is the basis of everything! If you look at ways of maintaining the quality of water, you need to have scientific technology to make it possible. I was very pleased to see during the exhibits here, for instance, how UV technology is used to remove all the coliforms and how material is used to remove metals – all this ensures quality water. We have to make sure science and technology are available. Scientists have been talking for the past forty years about the dangers of climate change – for various reasons, we have not been listening to these warnings properly. I think we still have sufficient time to reverse this trend provided we empower the people with appropriate technology so as to do more, use more of the renewable energy resources to reduce the emission of harmful substances and what is even more important: to change our habits – this is the most difficult part.”

which are big killers but air pollution – we need to communicate all this. But, we also need to bring with us the various policy makers so that they can engage with the scientists to ensure not only communication but also action!”

Everyone’s responsibility Fortunately, there is a rising level of awareness in this regard globally. “The data speak for themselves. Ten years ago, there was not much interest in renewable energies. We are witnessing increasing awareness on their potential, availability and efficacy. One can drive an electric car nowadays, while ten years ago it may have sounded like science fiction.

So, attitudes are changing and renewable energies (solar, wind, etc.) are becoming part of the reflex for people. However, more needs to be done and funds need to be made available to ensure that people adopt these technologies. Scientists and financiers need to talk to each other and adopt an integrated and convergent strategy. Increasingly many countries are showing that growth can be achieved when using green technologies.

This is something the finance ministers would like to hear and scientists have the responsibility to communicate that language properly. Citizens also need to understand that collective actions are needed if institutions and countries are to make a difference. So, there is a call for more solidarity not just locally but also internationally as water issues, climate change cannot be solved at national levels only,” the President concludes.

Communication is vital She believes that in order to change the mindset of the people: “we need to communicate more and more. This is something scientists may not be so good at: communicating in a language that is understood by the common people. We need to engage with the population, we need to communicate the findings of science because the symptoms of climate change are there.

We see the flash floods, we see the droughts, we see the quality of the air. It is not diseases

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This High-Level Panel on Water aims to mobilize effective action to accelerate the implementation of Sustainable Development Goal 6 (SDG6), which focuses on ensuring the availability and sustainable management of water and sanitation for all, at a time of unprecedented challenges. As to the main challenges are faced by the world, President Gurib-Fakim points to the African content that she knows best. “If you look at many regions on this continent this year, crops have failed, harvests have failed, in Madagascar, there was a looming famine because of the changing rain pattern. Many countries don’t have the proper technology and proper resources to J A N U A R Y

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WATER IS LIFE

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WATER HAS PLAYED AN

IMPORTANT ROLE IN KOREA’S ECONOMIC DEVELOPMENT In 2015, world leaders agreed to launch Sustainable Development Goals (SDGs) – 17 of them altogether. One of these, SDG 6 concerns water and sanitation, prescribing to “ensure availability and sustainable management of water and sanitation for all.” A special advisor to the High-Level Panel on Water (appointed by the United Nations and the World Bank), Dr. Han Seung-soo tells Diplomacy&Trade that “it is a standalone goal while other SDGs like the ones aimed at the eradication of hunger or poverty – 12 goals altogether – are all linked to water. So, water is very, very important. Water connects with other things.”

Dr. Han, a former Prime Minister of the Republic of Korea (2008-9) participated in the opening panel discussion (‘Water connects the SDGs?’) of the Budapest Water Summit 2016 where he was asked to speak about the role of water in Korea’s development policy. “As you may know, Korea was a very poor country until the 1960s with people living on an average wage of about USD 100 a year. Now, it is close to USD 30,000 – and water played a very important role in this great economic development. We had to invest heavily in waterrelated projects. The development of the water infrastructure was very important. In the 1950s, the proportion of people having access to tap water in my country was only around 16% – now, it is almost 98%. During the process of this rapid development, we began, for instance, to build a multi-purpose dam, providing water to citizens, we were also able to reduce the magnitude of floods by 50%.”

Financing At the panel discussion, Dr. Han also noted that the diversity of investment in such projects is very important. “We have investment by the government, by the private sector, by multilateral banks, and now, we have another source of financing, that is, the Green Climate Fund, which will collect about USD 100 billion until 2020. The Fund is to finance primarily projects in connection with climate change and the reduction of CO2 emission but I suggested that we should make some use of this fund in order to deal with water problems.”

He suggested here in Budapest that “conferences of this kind, like the Budapest Water Summit, should not only invite ministers of infrastructure, ministers of environment, or ministers of energy – these people are welcome to come, of course – but we also have to have many ministers of finance present! That is because they are the ones who deal with the money and they are the ones who get to know, when they attend conferences like this, that these projects are important and when they go home, they can give more money for such purposes.”

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DÁVID HARANGOZÓ

Perception gap With water being so important in the development of the country, the question is whether the new generations, the younger generations are aware of how much work and suffering accompanied the recognition of the crucial importance of water.

“When you have plenty of something – in this case, water – you don’t really know the importance of that given thing. When you are growing up in a poor country, and you also know that water is very important in the development of your country, the situation is different. However, the young generations of today live in abundance, so, they don’t really know the importance of water in development – it comes natural for them, they take it for granted. In this respect, there is a kind of perception gap on water between the younger and the older generations.”

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and consequences of climate change. “In 2008, when I was Prime Minister, we initiated four main river restorations. It was part of educating these new generations, making them aware of the importance of water,” Dr. Han points out.

9/11 When asked about the perception of water problems and the role of water worldwide some 15 years ago when he was President of the United Nations General Assembly (2001-2002), Dr. Han Seung-soo recalls that the day he was to be elected President of the 56th session of the UN General Assembly happened to be September 11, 2001. “In the morning of that day, I was in the Delegates’ Dining Room on the 4th floor of the United Nations building in New York City. As I was having breakfast with my predecessor, Harri Holkeri from Finland, my chief of staff came in with the message that the World Trade Center was burning.

As a result, the meeting where I was supposed to be elected was postponed. That was the only day in the history of the United Nations that the General Assembly had no president.”

He adds that at that time, he wondered why this hideous terror attack on the World Trade Center took place.

“Some people blamed religion and radical beliefs but in my opinion, it was basically because of poverty – that is what creates problems. In a sense, water – or the lack of it – is related to poverty that can give rise to terrorism. Even today, most acts of terrorism happen in dry areas where the lack of water creates problems.”

As for the issue of water in the early 2000s, although, it was not talked about as much as it is today, it was a target of one of the Millennium Development Goals (MDGs) dealing with environmental sustainability.

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Disaster risk reduction and water In 2013, Dr. Han Seung-soo was appointed as the UN SecretaryGeneral’s Special Envoy for Disaster Risk Reduction (DRR) and Water. He notes that “water-related disasters in the world account for over 90% of human loss among all disasters. Water is life but water can also be a threat to life if you have too much water (flood, typhoon, cyclone, tsunami) or there is a lack of water like drought – I call attention to such problems and try to encourage all the communities to deal with these issues.

Disaster risk reduction means that instead of trying to restore things after disaster strikes, I’m trying to reduce the disaster risk by prevention. For prevention, you need a lot of science. For instance, if you have a good satellite system, you can predict bad weather, how the weather changes, when the water would come – an advanced country could make full use of this ecological innovation, while a developing country could not. So, there is a need for spreading out the benefits of technology to developing countries.”

He hopes that more and more people realize that these are very important issues. In 2015, the representatives of 187 countries gathered in the Japanese city of Sendai, which had been the center of the tsunami-stricken area after the large 2011 earthquake in Japan where they endorsed the Sendai Framework for Action. “I try to raise awareness for disaster risk reduction. If you cannot succeed in preventing a disaster, then, you have to construct buildings after the disaster strikes – you have to build something better than it was before in an attempt to prevent that building from collapsing in a next disaster. I hope that several of my messages will be heard by the people,” Dr. Han concludes.

19 12/27/16 9:40 AM

water summit COMPREHENSIVE WATER SOLUTIONS

HUNGARIAN COMPANIES UNITE TO UTILIZE THEIR EXPERTISE ABROAD The Hungarian Water Cluster was established in 2008 with the goal of collecting Hungarian companies from the different fields of the water industry to offer solutions in water issues to potential partners by uniting their expertise, knowledge, know-how, capacity and vitality.

As the President of the Cluster, Károly Kovács points out to Diplomacy&Trade, “it is not just an industrial association or an interest representation organization but one that – utilizing the expertise, technology and experience of its member companies – can undertake the job of a general contractor in water-related projects.”

they are still eligible for special EU development funds. If you wish to look further, you definitely need a coordinated effort on international markets. This also necessitates our presence at professional exhibitions and fairs in the Asian region, for instance. Our members are regular participants of the professionals’ delegations accompanying the international meetings of the Hungarian government,” Károly Kovács stresses.

The Hungarian Water Cluster has ongoing projects all over the world. “We have just completed one in Vietnam: a drinking water cleaning facility (complete with a pipe system) to serve 100,000 people; we are working on the expansion and intensification of water cleaning works in Sri Lanka; we are involved in establishing water cleaning works on more than 30 islands in Indonesia and other projects, too, in developing countries. In such cases, there is usually demand on behalf of the receiving country for local people to be trained by us for the running and maintenance of these facilities.

This kind of training can be carried out through individual contracts or inter-state agreements. For instance, Hungary receives students through the Stipendium Hungaricum scholarship system. We, as Hungarian Water Cluster, have an agreement with higher education institutions to participate in the training of these foreigners,” he adds.

The target countries of our activities are usually developing countries with scarce financial resources for development projects. In order to find solutions to this problem, the Cluster is in partnership with the Hungarian Export-Import Bank (Eximbank). “We enjoy their assistance and support in our efforts to be successful on the international markets. We have under planning projects financed – through loans or credit insurance – by Eximbank in several African countries like Ghana or Ethiopia,” he says.

Everything that’s water Regarding the structure of the cluster, he highlights that it can comprise the entire spectrum of waterrelated activities, the provision of technical and technological conditions for the collection, cleaning and re-utilization of rain water; the construction, reconstruction and repair of water networks, the treatment of municipal or industrial waste water, etc. – starting with the planning phase, which includes feasibility studies, the possibility of involving EU funds, providing a choice of project versions with different investment and maintenance costs. “We not only prepare technical solutions satisfying the Hungarian and European standards and requirements but also with costeffectiveness and the client’s budget in mind.”

The Cluster also applies international analysis methods to Hungary. For instance, Hungary was the first one to adopt the life-cycle based public procurement. “It means that when, say, local governments buy something, they do not only consider how much it cost but also take into consideration the costs of maintenance and operation throughout the life-cycle of the given project. The Hungarian Water Cluster was among those who took part in developing the methodology for this life cycle based public procurement,” he explains.

The price of water It is this versatility of the Hungarian Water Cluster that enabled it to change from the planned economy of the communist years to the market economy. “In the planned economy, water basically had no price and in the new capitalist system (when all related expenses of getting water to people’s homes were added up) people suddenly had to face the problem of a price they were almost unable to pay,” the President points out. “Water utility companies have experienced in the past few decades that the average water consumption of 200-250 liter (per person per day) in Hungary was reduced to 80-100 liters due to fact that people had to pay for what they used. Metering and paying for consumption made people watch how much water they use.”

Members of the Cluster also see other opportunities to reduce the need for water.

“When we are asked to look into the possibility

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of enlarging water cleaning capacities, we raise the issue of how much the so-called ‘network loss’ is, that is, the difference between the amount of water supplied into the system and the amount that people actually pay for. That difference is lost somewhere on the way to the consumers. This is when we try to figure out whether it would be possible to find the cause of that loss instead of increasing the capacity through the reconstruction of the pipe network or better metering methods,” he adds.

In need of foreign markets The Hungarian Water Cluster is managed by a limited company, which ensures the organizational and operational background with which the technical/technological solutions provided by the

members of the cluster are coordinated when entering the international market. “Our companies, who have already proven their expertise on the domestic market, need to find markets abroad as the Hungarian market is too small, it is very much subject to financing by EU funds (along with the strict EU project requirements) while, at the same time, the controlled water prices are not sufficient for maintaining and modernizing the extensive water networks (97% of the Hungarian population have access to piped water). All that means is that the Hungarian market does not generate enough opportunities and thus, those who plan for longer term need to look elsewhere. One possibility appears in countries that have recently joined the European Union (Bulgaria, Romania, Croatia) and some of the Western Balkans countries as J A N U A R Y

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The members of the Cluster strengthen the credibility of the organization by having a decisive role in the leadership of the Hungarian professional organizations such as the Hungarian Water and Wastewater Association or the Hungarian Water Utility Association, and in the international ones (European Water Association, Asia – Europe Meeting Water Resources Research & Development Center).

Károly Kovács himself has an impressive collection of titles: he is not only the President of the Hungarian and European Water Associations but is also the Vice Chairman of the Economic and Development Committee of the Eurasian water cooperation body ASEM Water that the Hungarian Water Cluster is a member of. “This international presence helps us to better communicate professionally with the professional players and political representatives on the target markets. This activity was greatly assisted by the 2016 Budapest Water Summit,” the President of the Hungarian Water Cluster concludes.

DÁVID HARANGOZÓ

International role

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BUILDING ON HUNGARIAN WATER TRADITIONS

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C&A CO., PURECO

SUCCESS SCORED BY PURECO AND BUDAPEST WA T E R W O R K S AT T H E B U D A P E S T W A T E R SUMMIT EXPO The Water Innovation Award of the Budapest Water Summit 2016 Expo was presented by an international jury to the ReWater drinking water treatment container developed by the Hungarian firms Pureco and the Budapest Waterworks.

“We have developed this product for the additional cleaning of biologically treated waste water to be able to produce potable water. However, it also provides us with further opportunities to produce drinking water from various kinds of surface waters.

We have made several tests and we need to try different kinds of technological processes to make it as versatile and stable as possible,” Pureco Managing Director Bálint Horváth explains to Diplomacy&Trade.

He adds that “this exhibition was a very pleasant surprise for us. There were more than 2,000 professional participants registered for the Summit and a lot of them visited the Expo and our stand, as well, many showing great interest in our ReWater water treatment product (see BOX). We had the opportunity to show the container to important decision-makers, politicians (such as the President of Mauritius) and leading officials of various organizations and even welcome these people to taste this cleaned water. ReWater was tasted and tested by representatives of the five continents and the five major world religions.”

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in 2006. Bálint Horváth joined it as a minority owner two years later. The aim was to set up a Hungarian company involved in the water industry. “At that time, there were a lot of foreign companies present in this field in Hungary, employing Hungarian professionals.

We thought that these engineers and other experts could also utilize their knowledge within a Hungarian company and be successful in Hungary. Hungarian water industry knowledge has its traditions and we wanted to turn these into a successful business. In order to expand outside Hungary, we set up partner companies in the neighboring countries (first in Slovakia in 2008; then in the Czech Republic in 2010 and in Romania in 2011). As a result, we can now talk about a group of firms employing around one hundred people altogether,” the General Manager points out.

Basically, Pureco has two main activities.

The commercial part involves the sale of products and related services in terms of stormwater treatment, drainage and infiltration and waste water related systems such as biofilters and pumping stations, while the entrepreneurial part includes the design and implementation of technologies in areas like municipal wastewater, industrial waste water (from meat processing to the pharmaceutical industry) or potable water. Clients include local governments, communal water service providers and operators, designers and implementers.

According to Bálint Horváth, “perhaps, our nicest and most complex project was building out the rainwater drainage system (including the treatment of rainwater) at the Liszt

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Ferenc Airport here in Budapest in 2011. The task was to efficiently drain rainwater from the runways. For this process, we applied products we had developed and patented.

Another major project was in Nyíregyháza, NE Hungary, where we did the rainwater drainage and storage system (including the treatment of rainwater and dewatering) in the first phase of the Lego factory, the biggest one in Europe. We provided a complete solution with designer background support.”

In Hungary, Pureco built over twenty (communal and industrial) waste water treatment plants all over the country.

As an example for a successful Pureco project abroad, Bálint Horváth mentions their participation in the implementation of a drinking water treatment plant (and a distribution network of 200 kilometers) that provides 100,000 people with potable water in Quang Binh province in Vietnam.

The three-year project was financed through an aid loan from the Hungarian government and was completed in 2016.

As for the CSR activities of the company, the Managing Director mentions that “we primarily support sports and recreation for children. It is important for us that kids get the idea of a healthy lifestyle at an early age.

We also supported – in cooperation with the General Directorate of Water Management – drawing competitions on the occasion of World Water Day. In 2013, we were on the dikes of the Danube at Szentendre, north of Budapest to help pack sandbags during the great flood.”

The company’s name is coined from the

words ‘Pure’ and ‘Eco’. As Bálint Horváth explains, “it is very important to note that while we treat water and it becomes clean, the projects are also economically viable, sustainable and cost effective. Although, these terms may be hackneyed expressions, we take them very seriously. We always indicate what the amount to be invested is and – what many people tend to forget about in the initial phase – what the expected lifespan is and how much the operation will cost during that lifespan. What we can often see is that the quality of the given system is pushed to the background just because better quality costs a bit more and the client does not consider that the operational costs will be lower (and the total cost will be more favorable) when taking into account the whole life cycle. We began to manufacture a lot of quality products and we are also in contact with a lot of quality producers in Eastern and Western Europe. We put emphasis on products whose simpler operation makes it possible for us to provide sustainable services and solutions. We are aware that achieving this is harder and it takes much more time to explain the benefits, still, we believe in this as sooner or later, everyone realizes that this is what the future is about.”

We respect water Pureco's diverse activivities in Hungary and around the world

REWATER

According to Pureco founder and owner Károly Kovács, “the water coming out of the ReWater container is cleaner than any underground or surface water you can find. As a result, it is possible to be let directly into the drinking water supply pipe system.”

The ReWater system was exhibited at the Budapest Water Summit in November 2016. “It was there that the water produced by the system – from waste water biologically treated at the cleaning site of the Budapest Waterworks – and with quality very much surpassing the international standards for drinking water, was bottled and offered as ReWater artificial mineral water to our guests, international dignitaries attending the Summit,” he adds.

According to Károly Kovács, it has been proven that the equipment is cost-effective regarding the expenses of investment and operation, as well, in producing sufficiently treated or even potable water. The ReWater container can be deployed in a standard way within a range of water pollution but it can also be shipped tailormade according to the quality of water going into the system and regarding the required quality of the water to be produced. Even viruses and bacteria are filtered out in the course of the treatment process and so are the minerals that have to be put back at the end. Should there be a power station at the village, town or city with a demand for cooling water, this system can produce the proper quality water and there is no need to use for this purpose desalinated water produced with a lot of energy.

Regarding international interest for the product, Károly Kovács says the views and opinions of people visiting the ReWater container at the Budapest Water Summit are processed and communication with them is continuous. There has been interest from Arabic countries, Africa, Central Asia, based on which serious talks are under way. Some of these talks concern the preparation for the management of possible disasters in the future. International aid organizations came up with the idea that they might keep stock of this equipment in various parts of the world from where a ReWater container – or more, if necessary – could immediately be shipped to the area struck by earthquake, fire, tsunami or other disaster. The most crucial necessity in situations like that is the availability of healthy, potable water. It might well be that the water base, supply chain, the pipe network are compromised and ReWater could be the solution to produce drinking water from contaminated sources. He finds it important to note that the amount of electricity required for the operation of the system is a fraction of what you need for the desalination process. Energy for the operation can come from any sources available, including solar panels and can be controlled remotely even via satellite.

“In its current setting, the ReWater container is able to produce 180,000 liters of potable water a day and if you take the amount of water said to be necessary for one person a day (that is, 2-3 liters), that would be sufficient for supplying over 70,000 people with this single container,” Károly Kovács points out.

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water summit WATER PROBLEM IS A REALITY IN JORDAN

Different perspectives, different challenges Participation at the Budapest Water Summit provided him with the opportunity of visiting Hungary for the first time. “I was really impressed with this country and the people as well as the setup of the infrastructure here including water and sanitation. Water is becoming a very important element of life for so many people around the world. I was happy to see that so many people gathered here at this conference to talk about water and sanitation and how the different countries look to the

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water issue from different perspectives and how they tackle different challenges,” he says.

He also believes, this summit was a great opportunity to meet people from all over the world working in the water sector. “I also went to see the exhibition which is attached to the Water Summit and which presents so many Hungarian companies and Hungarian technologies, innovations related to water technology, sanitation, water treatment, etc.”

Refugees and drought He discussed with other participants the major challenges Jordan is currently facing, in addition to coping with the influx of refugees, “in 2016, we had particularly severe drought conditions, which are also reflected in the water situation.

Having said all of that, of course, Jordan will not sit idle in facing this problem. We work day and night, we have plans, we have a strategy and a set of policies to be implemented between now and the year 2025 in the amount of about USD five billion. On that, we count on friends and friendly countries to support us and support the refugees we have in Jordan with financial aid, with projects, with technology, etc.”

He recalls that there was a world conference in early 2016 in London to tackle the issue of refugees in the hosting countries. “A lot of pledges were made there for Jordan, Lebanon, etc. Unfortunately, we do not see the compliance with these pledges. It is happening only partially.

In 2016, we got only about 23% of the pledges

we were promised for that year. This, of course, complicated the issue more and more because if you don’t have the money to run the facilities, if you don’t have the money to implement new projects for the refugees, the situation will be really bad.”

we use ground water, we use surface water, we desalinate sea water, we do everything to make water available to the people in Jordan but still, as I said, it is major challenge for Jordan and the Jordanians and will be so the many years to come.”

Instability or cooperation

Red Sea – Dead Sea

As to whether the water issue can ignite further instability in the Middle East already stricken by crises, the Jordanian minister says that water is definitely an element of stability or instability.

“If you deal with it in the right way, it will be an element of stability. For instance, having agreements between neighboring countries, having regional cooperation - these are elements of stability and peace-building. However, if you look at it from the other angle, not tackling the boundary issues, not having regional cooperation create and element of instability. Take, for example, the influx of refugees. If you have the right means to supply the refugees with water, then, water is an element of stability but if you don’t support these people with infrastructure, this will be an element of instability. People tend to flock where there is water and this demographic shifting affects water resources, for which we need new infrastructure to balance this imbalance between people and infrastructure.”

He points out that Jordan is a very efficient country when it comes to the utilization of water. “We deal with water on so many fronts and we do our best on all fronts. We use rinse water, we do cloud seeding, we collect water from various sources,

Regarding the supposition that if countries compete and struggle for every drop of water, it might be a divisive issue rather than a reason for cooperation, Dr. Hazim El-Naser is of the view that, “of course, regional cooperation is a key element for solving water issues. Unfortunately, this is not happening in our region. It is not happening because political conflicts between Iraq and Syria, between Israel and the Palestinians or between Syria and Turkey prohibit any regional cooperation, because the political issues are much, much stronger than cooperation for water. However, Jordan, Israel and the Palestinians are trying to have some cooperation by implementing a major water infrastructure project that will supply the three countries with water and also take care of the environment of the Red Sea. It is called the ‘Red Sea – Dead Sea Water Project', transferring sea water from the Red Sea to the Dead Sea in order to stabilize the declining environment of the Dead Sea which has its water level declining by about a meter annually and will be lost in the next 40-50 years.

We hope that this tripartite cooperation will be a model and gateway regional cooperation and something to be seen as a model by other countries,” he concludes.

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At the Budapest Water Summit 2016, the Jordanian Minister of Water and Irrigation, Dr. Hazim El-Naser, took part in the panel discussion ‘How to achieve increased water efficiency?’ – the title is a very appropriate question in his country.

“Water efficiency is a major part of our strategy towards coping with the water challenge,” he tells Diplomacy&Trade. “In Jordan, we work on so many fronts to make more water available to Jordanians and the refugees we have. As you may know, 50% of our population is made up of refugees. Their number increased especially after the Syrian conflict escalated, resulting in 1.4 million Syrians fleeing to Jordan. So, in order to supply all these people with water, we do a lot of things. We use high technology to conserve water; we desalinate sea water; we use hi-tech devices to monitor our water networks for leakages and water losses; we apply smart metering to reduce losses in the water reservoir; we increase water tariffs to place higher value on the water so that people will wisely use water and not waste it.

We also educate people, we organize campaigns to explain to people that this is the amount of water we have and they have to use it wisely and conserve it for us as well as for future generations.”

Minister Al-Naser also initiated a bundle of fast track projects to absorb the shock of the Syrian refugees which resulted in a sudden rise of water demand in the country. In addition, he worked on developing the long term vision of the Iraq Water and Sanitation Sector and paved the road for the implementation of strategic projects for Jordan and Iraq. As to how much the ongoing regional conflicts and wars affect people’s access to water and sanitation, Dr. AlNaser says “it is a major issue. Conflicts destroy infrastructure – one characteristic example is Eastern Aleppo in Syria. People there did not have access to water during the siege. The other related issue is the demographic shift. In Jordan, for example, the locals have to share the already scarce water resources with the refugees. Then, there is the problem that terrorists often use water as a weapon as it happened with ISIL’s attempt to take control of the Mosul dam. The water element of conflicts is a very delicate issue because you can sustain yourself being hungry for, say, 48 hours but you cannot sustain yourself without water for 6-10 hours under the climate conditions in the Middle East.”

DÁVID HARANGOZÓ

THE REFUGEE CRISIS AND THE DROUGHT CREATE MORE CHALLENGES

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water summit

CLEAN WATER IS BASIC HUMAN RIGHT AQUAPROFIT INVENTION OFFERS QUICK AND EFFICIENT SOLUTION

“We also think that climate change is becoming too big of a problem as it creates extreme weather conditions. So, we thought, what if we – a water management company – find a solution to make water available for communities where this migration originates.

Of course, we never thought our effort would solve the whole migration crisis but we can do our best to contribute with a small element to easing the problem. First of all, we are able to create clean, potable water from poor quality sources under or above the surface like wells, lakes, rivers or even puddles for those in need.

Our effort caught the attention of several people including that of the President of the Republic of Hungary,” the President explains.

Aquaprofit has its own patented water cleaning technologies to filter out arsenic and all sorts of other substances, which were built into IWAT. “The most ideal opportunity to present our system was the Budapest Water Summit. Three members of the United Nations High-level Panel on Water – the Presidents of Hungary, Mauritius and the Prime Minister of Bangladesh – who pressed the button together to launch the water cleaning process that produced water packaged in plastic bags,” he says.

Not just another cleaning system

22 years ago, Tamás Nádasi was the chief engineer at a brewery in Nagykanizsa, SW Hungary. This brewery owned the Fonyód mineral water bottling plant where he was put in charge with the task of divesting this operation. “That is where I learned a lot about the various kinds of mineral waters, their composition and healing effects,” he tells Diplomacy&Trade.

It was then that Tamás Nádasi founded the company ‘Aquaprofit Trade Office’, which was the legal predecessor of the current AQUAPROFIT Engineering, Consulting and Investment Ltd. In the meantime, he got to know Péter Udud, a hydrologisteconomist who had happened to write his economics diploma thesis on mineral waters. The two men joined forces to establish Aquaprofit Ltd., which now employs over a hundred people.

“We are now a determining player in several areas. We have managed many mineral water projects in Hungary, including those of Coca-Cola and Nestlé. Managing projects means the preparation, planning as well as making feasibility studies and CBA analyses.

These are the basic advisory activities what we started out with but now, we also do implementation and work as general contractors,” Nádasi, who is now the president of Aquaprofit, points out.

“Internationally, we would like to be present with a brand new development that was introduced at the Sustainable Water Solutions Expo during this year’s Budapest Water Summit. We had a large outdoor exhibition area to display this solution and – I believe – it was a big success. What we presented is an innovative and sustainable water solution called ‘Intelligent Water Aid Technology’

(IWAT) – a Hungarian innovation to provide for safe drinking water supply in areas where there is no water infrastructure or places even without electricity. The only input required is raw water.”

The idea was born in Tamás Nádasi’s mind a couple of years ago when the migrant crisis began to intensify. He highlights that one possible solution to ease that crisis is to eliminate the causes that force people to leave their homeland. About three years ago, there was a serious draught in Syria, basically destroying all the crops in the country. Those earning a living in agriculture were displaced and flocked to the cities that obviously could not cope with these millions. All this led to conflicts and wars. Water has often been the subject of war in human history as water resources have always been a great asset.

Great business opportunities Aquaprofit has manufactured a prototype of the unit and considering deploying it into an African country. There are talks with the Ministry of National Development as to which country that would be. For the company, it is important to present it to the world (and the potential customers) under circumstances where it is working credibly. Nádasi says they see great business opportunities in this invention. “We have been in discussion with the World Bank as well as other development banks. African countries have shown a lot of interest already and the World Bank is likely to have funds to help the poorest developing countries to improve living conditions for their citizens in which access to clean water and sanitation is of primary importance. That is when solutions like the one we are offering come into the picture.”

IWAT PROVIDES:

• Modular water purification technology designed to the raw water contaminants • Easy-to-use operation due to the intelligent remote control and monitoring system • Independent energy-supply based on solar panels and green batteries • Lower carbon footprint due to sustainable solar energy • Complex solution meeting social, communication and healthcare needs • Easy transportation and deployment • Expandable modular container system (tailor-made to local needs)

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DÁVID HARANGOZÓ, AQUAPROFIT

Intelligent technology

Lots of people, companies and organizations are involved in cleaning water. There are unfortunate circumstances like those following earthquakes or tsunamis where tens or hundreds of thousands of people need to be supplied with potable water.

Tamás Nádasi stresses that ”IWAT is more complex and eco-friendly than any other hitherto known system in that it can be deployed in very little time, it is independently and fully powered by solar panels.

One unit of four containers is able to provide enough potable water for 3,000 people a day. The rechargeable batteries – an American patent – are of biodegradable material, which means that once their life cycle is over, they do not pose hazard to the environment. One container houses the cleaning process; another the batteries and the control mechanism of the solar panels; the third has the packaging process; while the fourth container is for social purposes that can be a medical facility, a communication room or serve other purposes for the locals. Of course, the composition may vary from country to country, adapting to the local needs and conditions. For instance, the space between the containers could be used for community gatherings, which might come handy next to African villages.”

Another advantage of this modular configuration is that it can be expanded with additional containers and similar units according to necessity. It can be set up quickly – within two days. “First, we do a water analysis, develop the cleaning technology according to the test results, manufacture the tailor-made unit and ship it to the desired location. The deployed unit then can be remotely supervised and controlled through satellite communication.

We have a request from the Middle East for several container units, which would solve the water problems of a hundred families. We have the possibility to provide water in two qualities if necessary: one for drinking and one for watering plants,” the company’s President points out.

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IWAT Intelligent Water Aid Technology is a sustainable water solution, a Hungarian innovation for safe drinking water supply in areas where there is no water infrastructure or places even without electricity. The only input required is raw water.

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society Diplomacy&Trade held its Japan themed ‘The Club’ event at the Sushi Sei restaurant in Budapest on the occasion of Diplomacy&Trade's December issue focus on the Far Eastern country. The patron of the event was the Japanese Ambassador to Hungary, Junichi Kosuge. Following an introduction by Diplomacy&Trade publisher Peter Freed and Sushi Sei owner Irma Héder, speakers at ‘The Club’ event included Ambassador Kosuge; Deputy State Secretary for Foreign Economic Affairs, Dr. Petra Pana; the General Manager of JTB Hungary, Karolina Simon and András Kovács of Toyota Central Europe.

DIPLOMACY&TRADE 'THE CLUB' JAPAN

Finnish Independence Day On the 99th anniversary of his country’s independence, the Ambassador of the Republic of Finland, Petri Tuomi-Nikola held a reception at his residence in Budapest. The Finnish, Hungarian and European Union anthems – as well as Beatles songs – were performed by a male choir from Finland.

The Ambassador of Japan to Hungary, Junichi Kosuge welcomed hundreds of guests at a reception in the Budapest Marriott Hotel on the occasion of the 83rd birthday of Emperor Akihito. The Hungarian guest of honor at the event was the Speaker of Hungarian Parliament, László Kövér.

Kazakh Independence Day The Republic of Kazakhstan celebrated the 25th anniversary of its independence from the Soviet Union. On this occasion, the Kazakh Ambassador to Hungary, Nurbakh Rustemov hosted a reception in the Budapest Marriott Hotel where the Hungarian government was represented by Economy Minister Mihály Varga.

Qatar National Day Roman Kowalski (on the right), who finished his five-year term at the end of September 2016 as the Polish Ambassador to Hungary, was one of the recipients of the György Kézdy Award given by the Hungarian 'March of the Living' Foundation. He received the award in Budapest.

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Former Ambassador Honored

At an occasion also known as Founder’s Day, a commemoration of Qatar’s unification in 1878 was held in the Budapest Marriott Hotel where the Ambassador of the State of Qatar to Hungary, Abdulla Hussain M. Jaber hosted a reception. The Hungarian guest of honor was Minister of State in the Ministry of Foreign Affairs and Trade, István Íjgyártó.

HARANGOZÓ, ÁDÁM DRASKOVICS/AZ ÉLET MENETE ALAPÍTVÁNY

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witty leaks WITTY

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

LE A K S

BUDAPEST A PALACE OF ARCHITECTURE CHINA AND HUNGARY SHARE AN ANCIENT CONNECTION

BY CHINESE AMBASSADOR JIELONG DUAN

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COURTESY OF EMBASSY OF THE PEOPLE'S REPUBLIC OF CHINA

When I assumed my office as Chinese ambassador to Hungary in July 2015, I was entirely amazed by the stunning piece of architecture that was my residence.

I was told by my colleagues that my residence, known as Lánczy Palota, completed in late 19th century, used to be the residence of Mr. Leó Lánczy, then Chief of the Hungarian Bank of Commerce and Member of Parliament. This building was designed

by Kálmán Giergl and Flóris Korb, two extraordinary Hungarian architects. Wellknown works of these two architects also include the Liszt Ferenc Academy of Music, the Klotild Palace and the Luxus Áruház (‘Luxury Department Store’), all of which are still landmark buildings in Budapest.

My residence is located near the City Park on the Pest side of the Hungarian capital.

With a magnificent façade and a yard full of flowers, this building indeed looks like a palace standing among other buildings.

Its interior design is also impressive, characterized by its neo-Baroque style.

The irregular oval molding, handmade iron armrest and Hungarian traditional colorful glass in the main staircase perfectly demonstrates the history vicissitudes of this building. The best part of this building has to be the six frescoes in the meeting room. They are the masterpieces of Károly Lotz, the most famous painter in late 19th century Hungary. People can still find his work in the Parliament, National Museum and East Railway Station.

The Chinese residence building is absolutely a historical relic. Many of my colleagues in the embassy devoted great effort to the renovation of this building in past years. They then invited the best qualified local company to carry out the renovation. Simple renovation was far from enough, what they insisted on was to maintain every single detail of this magnificent building with not even a little bit of damage. In this way, we could protect and carry on the history of culture inherited by this building. As Chinese ambassador w w w . d t e u r o p e . c o m

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as to where exactly they came from, the Asian origin of Hungarian culture could easily be traced through the many similarities between Hungarian and Chinese culture, for example the sequence of our names, addresses and dates, as well as some of our traditions. In the year since I came to Hungary, Hungarian friends have told me that the Magyars came from Asia, the relationship between China and Hungary dates back to ancient times. China and Hungary share an ancient connection and a solid friendship, and have witnessed millions of friendly exchanges in recent years.

Importance over size I often hear Hungarian friends saying this country is not huge either in terms of territory or population. But, I am sure that the contribution of Hungary to human civilization and history goes far beyond its size of territory and population. As I see it, Hungary has many titles: home to famous scientists, inventors, writers and musicians like Sándor Petőfi, Ferenc Liszt, Zoltán Kodály, a sports nation with an impressive record in the Olympic games and a palace of architecture in Europe.

I am completely attracted to the history, culture and architecture of this country even though I came here only one year ago.

I am curious how many masterpieces in culture, architecture, science and technology from this nation are yet to be shown to the whole world. I’ll try to find out.

for more than one year, I have received many Hungarian guests, diplomatic corps in Hungary as well as Chinese guests.

Every time I introduce the history and culture of this building to my guests, it delays the start of the event as all guests spend time appreciating the architecture.

Gorgeous buildings can be found everywhere in Budapest. An ordinary building on an unknown street corner could possibly be the favorite work of a well-known architect hundreds of years ago, let alone the eyecatching buildings of the New York Café, the Museum of Applied Arts, and the Parliament. The fact that all these buildings have been very well preserved explains that the spirit of inheriting history and culture of the Hungarian nation has been engraved deeply in the hearts of every generation of the Hungarian people.

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Hungarian architectural masterpieces in China It is also worth mentioning that Hungarian people have expressed their enthusiasm for architecture not only in their homeland, but also many have brought their passions to other parts of the world. Mr. László Ede Hudec left his footprints in Shanghai, China’s most flourishing city for decades. At least 37 of Mr. Hudec’s masterpieces can still be seen in Shanghai; Park Hotel Shanghai, then-landmark architecture of Shanghai city is one of them. Even nowadays, this building still stands in the downtown of Shanghai.

Architecture is but one example of the strings between China and Hungary. The Hungarian nation is one of the very few nations with ‘Eastern origins’. Ancestors of the Hungarian nation came from Asia, although, no final conclusion has been made in academic circles

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what's on VALERY GERGIEV AND THE MARIINSKY THEATRE ORCHESTRA

SKATING IN THE CITY PARK

UNTIL FEBRUARY 28 There is nothing more classic, more festive, more „wintery” than skating – and skating at the City Park Ice Rink (Városligeti Műjégpalya) is truly skating in style. The City Park Ice Rink is the oldest, still functioning ice rink and, to this day, it is the largest outdoor artificial ice surface in Europe. The moment the ice rink opens in late November, you’ll find locals and city visitors alike swirling and twirling on the rink, set against the beautifully lit Vajdahunyad Castle. There are bustling crowds on the terraces, either queuing up, waiting for their chance to glide onto the ice, or simply admiring the skaters in the sparkling lights and sipping mulled wine.

And then, there’s the irresistible smell and taste of the chimney cake, sold nearby. www.mujegpalya.hu

JANUARY 30 AT MÜPA The premier performers of Russian music appear at the Béla Bartók National Concert Hall. Perhaps no one has done more than Valery Gergiev to ensure that the works of 19th and 20th century Russian composers that comprise this wonderful and exciting repertoire full of so many secrets both concert pieces and works of musical theatre alike - appear not merely as exotic splashes of color or operatic curiosities in Western Europe and across the oceans, but as intrinsic parts of the concert repertoire in their own right.

Following the breakup of the Soviet Union, it was under the leadership of Gergiev that Saint Petersburg's Mariinsky Theatre ascended to the international stage. Today the conductor is one of the leading figures on the global music scene, who has already graced the stage of the Béla Bartók National Concert Hall on several occasions. He was the first Russian conductor since Tchaikovsky to conduct the season-opening concert at New York's Carnegie Hall, and from the 2015/16 season fills the post of music director of the Munich Philharmonic, as the successor of Levine, Thielemann and Maazel. www.mupa.hu

NOTE: skates can be rented at the rink.

DID YOU KNOW? • Ice-skating is a great form of exercise: recreational ice skating burns more than 250 calories per hour.

• Ice skating can help prevent obesity in children.

THE MONTY PYTHON OF CLASSICAL MUSIC IN BUDAPEST

JANUARY 4 AT THE BUDAPEST CONGRESS CENTER The MozART Group, a genius string quartet merging humor with excellent music will visit Hungary again. The not-to-be-missed concert will take place on January 4 at the Budapest Congress Center. MozART Group, the „music cabaret” has a solid fan base in Hungary. The ensemble, often referred to as the „Monty Python of classic music”, has been performing shows since 1995. The sparklingly humorous team has already conquered half the world with their shows: they performed 150 concerts in 24 countries within half a year with roaring success. They are constant invitees to TV shows and they earned high prestige awards. The grand masters of breathtaking instrumental stand-up comedy can be seen again in Budapest. www.jegy.hu

ST EPHRAIM MALE CHOIR: ORIENTALE LUMEN

JANUARY 7 AT BUDAPEST’S ST STEPHEN BASILICA Enter the refreshing and enchanting realm of Byzantine music at an exceptionally beautiful venue! The Saint Ephraim Male Choir is eager to discover lesser-known territories of the vast domain of Eastern Christian music and to deliver these gems to the audience. Tamás Bubnó, the artistic director of the Saint Ephraim Male Choir has compiled a diversified program that includes Hungarian folk musician Balázs Sipos from Muzsikás Ensemble. The concert will feature music from ancient Christian times and from various cultures including the Slavic, the Mediterranean and those from the Carpathian basin. www.szentefrem.hu

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MÁRTON NAGY, COURTESY PICTURES

JANUARY 12-14 AT MÜPA Life without laughing is not worth living – says Maestro Paavo Järvi who would have a great career as a comedian ahead of him if he got tired of the conducting game. He is musical down to his toes, and watching him work is almost as much fun as hearing the result. Now we have the opportunity to meet the big favorite of Estonia, since Järvi is conducting the Budapest Festival Orchestra ranked among the ten best ensembles of the world. The audience is lucky enough to witness the Hungarian premier of ‘Sow the wind’ composed by a good friend of Järvi, Erkki-Sven Tüür, for the 80th birthday of Arvo Pärt. The Norwegian cellist, Truls Mork, whose career almost came to an end because of a tick bite, will perform the 2nd Cello Concerto of Sostakovich with a wonderful, unique sound. The final piece of the concert series is the 6th Symphony of Prokofiev composed as a tribute to the tragedy of World War II. www.bfz.hu

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PASSION FROM THE NORTH WITH BFO

MÜPA, ODPICTURES ART STUDIO LTD HUNGARY, BFZ.HU, COURTESY PICTURES

JANUARY 13 –MID APRIL AT MILLENÁRIS, PAVILION D Learn what you are a champion of by visiting this brand new interactive exhibition featuring cutting edge technologies, impressive images and playful tests. “Becoming a champion is everyone’s dream. (...) When one wins, it is never by chance, he or she must have invested a lot of effort for it. The victory can never be taken away. It will escort that person all through life – with its advantages and disadvantages,” says Hungarian water polo Olympic champion Tibor Benedek, main patron of this unique exhibition that premiers in Budapest before kicking off an international tour. ‘The Champion’ will introduce the general public to the world of sports with high definition photos, slow motion recordings and other visual solutions. One unique feature of the exhibition is that visitors can monitor their own capabilities, helping, for instance parents in choosing a sport discipline for their children. www.thechampion.hu

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THE CHAMPION

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what's on JOSÉ CARRERAS - A LIFE IN MUSIC

JANUARY 20 AT PAPP LÁSZLÓ BUDAPEST SPORTARÉNA As one of the world’s opera grandees, the Spanish tenor Jose Carreras has been acclaimed as one of great operatic vocal artists of the last 50 years. A musical child prodigy, Carreras has enjoyed half a century of adulation. He has mesmerized audiences worldwide with a voice of extraordinary beauty, one that processes great lustre, dramatic tone, and dynamic intent. His final tour titled ‘A Life in Music’ will stop in Budapest in 2017 to take the audience on a journey through an illustrious musical life, to tell his intimate story and his love for music. Giant screens, placed in the concert venues, will be used to highlight parts of Carreras’ legendary and long career. “This is a complete new concert format, especially designed for my Final World Tour,” said Carreras, adding, “I have great emotion every time I go on stage. Nothing in life gives me the same satisfaction that my profession gives me.” www.jegy.hu

HARRY POTTER AND THE PHILOSOPHER’S STONE ™ CONCERT

JANUARY 21 AT PAPP LÁSZLÓ BUDAPEST SPORT ARENA CineConcerts and Warner Bros. Consumer Products announced the Harry Potter Film Concert Series, a new global concert tour celebrating the Harry Potter films, earlier this year. The Harry Potter Film Concert that kicked off in June 2016 is another magical experience from J.K. Rowling’s Wizarding World, where the audience is invited to relive the magic of the film in high-definition on a 40-foot screen while hearing the orchestra perform John Williams’ unforgettable score. Justin Freer, President of CineConcerts and Producer/Conductor of the Harry Potter Film Concert Series explains, “The Harry Potter film series is one of those once-in-a-lifetime cultural phenomena that continues to delight millions of fans around the world. It is with great pleasure that we introduce, for the first time ever, an opportunity to experience the award-winning musical scores played live by a symphony orchestra, while the beloved film is simultaneously projected onto the big screen. It will be an unforgettable event.” Brady Beaubien of CineConcerts and Concert Producer for the Harry Potter Film Concert Series adds, “Harry Potter is synonymous with excitement around the entire world and we hope that by performing this incredible music with the full movie, audiences will enjoy returning to this world, and to the many wonderful characters and adventures that inhabit it.” In Budapest the concert will feature the Magyar Virtuózok Orchestra performing. www.harrypotterinconcert.com

LUCKY CHOPS CONCERT

MÜPA, ODPICTURES ART STUDIO LTD HUNGARY, BFZ.HU, COURTESY PICTURES

MÁRTON NAGY, COURTESY PICTURES

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FEBRUARY 7 AT AKVÁRIUM KLUB Armed with the belief that positive music can change the world, Lucky Chops is on a mission to bring life back into the music industry. The band is well known for spontaneity and dance vibe. One would never tell they only play the brass instruments. The intensity of the band’s energy is fueled by their desire to inspire others. Lucky Chops became famous thanks to a random spectator, who shot the band’s street performance and shared it with world on internet. The band suddenly became a viral sensation and popular performers in New York’s streets and underground. The hard work and dedication put in by each of the six members has been recognized by fans across the globe. www.livenation.hu

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EXPERIDANCE: NOSTRADAMUS – A WANDERER OF WORLDS

JANUARY 19-20 AT RAM COLOSSEUM The ExperiDance Dance Ensemble has decided to take a bold step as it puts an obliviously frolicking piece on stage again after many years. The ‘Nostradamus – A Wanderer of Worlds’ is a real play of joy, which twists the most spectacular pieces of choreography from the repertoire of ExperiDance in such a way that the piece becomes a great time travel over countries and ages. One of the mood managers and tour guides during the world tour is musician and actor Ganxsta Zolee. According to the story, Nostradamus takes his deceitful wife on a world tour that includes time travel in order to please her and to show her that all of his predictions have come true. Nostradamus’ wife is played by Izabella Rimár, a dance artist of ExperiDance.

On the trip, they are accompanied by two of Nostradamus’ students, a dumb magician who is always flirting with the wife, and a pipsqueak. They visit Australia, India and the country of geishas and samurais, Japan.

The main characters also experience Spanish bravado and Russian high spirits, and even watch a football match in Brazil. A great journey also spans historical ages: in Egypt, they can witness Cleopatra and Julius Caesar’s love, they meet Copernicus, they leave Transylvania in haste due to Dracula, and Elvis sings for them in America. Finally, naturally, our heroes find a home in the heart of Europe, in Hungary. ‘Nostradamus – A Wanderer of Worlds’ presents a thousand faces of our Earth and its diverse, glittering world full of mysteries. www.ramcolosseum.hu

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culture That Trip We Took With Dad COMEDY DRAMA 93 minutes DIRECTOR

Anca Miruna Lăzărescu Christian Stangassinger FILM EDITING Dan Olteanu, Hansjörg Weißbrich SOUND Ferenc Darvas MUSIC The Brothers Nazaroff CAST Alexandru Margineanu

Razvan Enciu

Ovidiu Schumacher PREMIERS COUNTRYWIDE January 19 CINEMATOGRAPHY

Anca Miruna Lăzărescu’s feature debut is a Cold War road-movie with some comic touches depicting the true story of the director’s ancestors.

It tells the story of a RomanianGerman family caught up in the political turmoil of 1968. They start a journey from the city of Arad to the German Democratic Republic, where the older son, Mihai hopes that surgical intervention for his ailing father will restore the family’s harmony. Accompanied by Emil, the younger brother, they are caught in the aftermath of the Prague Spring, which alters their plans. Suddenly, they find themselves on the other side of the Iron Curtain in West-Germany. In just a few hours, they have to decide: to stay or to go back home?

This powerful drama was made with a great heart, a good sense of humor and with an invitation to a debate the very diverse perspectives we have on the past.

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gift corner www.dunaelektronika.com

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The Macallan Single Malt Scotch Whisky

House of Chino I © Werner Pawlok, www.lumas.hu Photography, 110x154 cm, limited edition of 150, signed, € 1.999 LUMAS Budapest Galéria, 1051 Budapest, Október 6. utca 21. www.lumas.hu

Cuba Expired Can one make joie de vivre visible in a room devoid of people? Werner Pawlok can. In Havana’s decaying houses, the photographer captures the Caribbean city’s morbid charm as well as a sense of the Havanans’ vitality.

Former glory and traces of the decline are side by side in Werner Pawlok’s Havana photos. The aura and classical composition of the photos quote great works from art history, but through the contemporary color and styling, the pictures remain contemporary witnesses to the here and now. Palatial residences from the old sugar aristocracy seem to entrust him, revealing their weathered countenances.

The beauty of the Cuban capital and the history of Havana have bittersweet aftertastes. It is a lost world, left to decay. Pawlok brings the viewer under the spell of the old city, in which former luxury is felt merely as a relic of the past. w w w . d t e u r o p e . c o m

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Founded in 1824, The Macallan was one of the first distilleries in Scotland to be legally licensed. Since then, The Macallan has built a reputation as one of the world's truly great single malt whiskies. To fully appreciate The Macallan, we must understand the contributing influences of Scotland, Spain and North America, and of their respective natural raw materials, together with the methods and the craftsmanship, perfected over the generations, that combine to give such outstanding quality and distinctive character.

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hospitality PRESTIGE HOTEL BUDAPEST HAS BEEN AWARDED A PRESTIGIOUS REAL ESTATE DEVELOPMENT AWARD, WINNING FIRST PRIZE AT THE HUNGARIAN REAL ESTATE DEVELOPMENT AWARD OF EXCELLENCE COMPETITION.

NEW YEAR’S EVE IS OVER, AND WE ALL DRUNK A LOT OF BUBBLY THAT NIGHT. NOW HERE’S AN EXCUSE TO POP THE CORK AGAIN: CHAMPAGNE TURNS OUT TO BE HEALTHY, SO KEEP DRINKING! CHEERS! British academics have found that champagne is actually good for your heart. It is packed with polyphenols – plant chemicals thought to widen the blood vessels, easing the strain on your heart and brain.

Researchers believe the health benefits aren't limited to the expensive stuff, but are also found in cheaper alternatives, such as cava and prosecco. The Reading University study builds on earlier findings that two glasses of red wine a day help keep heart and circulatory problems at bay. Polyphenols are believed to boost the levels of nitric oxide in the blood, which then widens the blood vessels. They are found in relatively high levels in red wine, but not in white. Champagne, however, is most commonly made from a blend of red grape varieties pinot meunier or pinot noir and white chardonnay.

Polyphenols are also found in tea, olive oil, onions, leeks, broccoli and blueberries.

THE RE IS A FAIRY IN E VERY C AR L A B U B B L E IN F L AMIN G E AC H SPAR K L E O F THE SUN AND WR APPIN G THE MOO N A N D THE STARS IN DR E AMS IN F L AMING E AC H SPAR K L E O F THE SUN AND WR APPIN G THE MOO N A N D THE STARS IN DR E AMS A. VÁMOS

place on November 25, 2016. "We were delighted to learn that the Prestige Hotel won the first prize in the hotel category. The designer architects of the hotel were Péter Hegedűs and Ágnes Bolyó, the interior design plans were prepared by Virág Vörös, Csilla Sáfrány and Tünde Bagyinszkiné Kiss," said Miklós Gaál, the director of the hotel that opened in April 2015. "Functionality was not neglected due to the exceptionally beautiful design. Working in the building is a real pleasure, so the high-quality service of the guests can be fully provided for in the building that bears marks of classic elegance," he continued.

The winners of the 18th Hungarian Real Estate Development Competition, including the Prestige Hotel Budapest are entitled to take part in the World Prix d’Excellence competition of FIABCI in 2017. "In the hope of international success, we trust that our hotel will do well amongst the strong international competitors," Gaál noted.

BÓDIS, TAMÁS KÁLOSI/WWW.MOMENTAL.ORG, SHUTTERSTOCK.COM

This year, the Hungarian Division of the International Real Estate Federation (FIABCI) and Hungarian Real Estate Association jointly held the Hungarian Real Estate Development Award of Excellence Competition for the 18th time. The aim of the competition was to show the achievements of the Hungarian Real Estate Development to the Hungarian and the international audience and also reward outstanding achievements.

19 applications were assessed by a jury of 12 panelists. Besides the architectural values, the main aspects of evaluating the applications were the engineering solution of project implementation, the quality of construction, the profitability and efficiency of the investment, moreover, how the current construction contributes to the improvement of living conditions of nearby residents.

The ceremonial announcement of the results took

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AWARD OF EXCELLENCE FOR PRESTIGE HOTEL BUDAPEST

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gastronomy

TWO WINEMAKERS, TWO WINE REGIONS, ONE SPIRIT

ISTVÁN SZEPSY AND GYÖRGY LŐRINCZ’S JOINT ARS SACRA WINE PACKAGE WAS INTRODUCED ON DECEMBER 8 AT THE ST. ANDREA WINE & GOURMET BAR.

NAGY-EGED HILL LEAVES ITS MARK JOINT WINE TASTING WITH THE ST. ANDREA, KOVÁCS NIMRÓD AND GRÓF BUTTLER WINERIES There are numerous excellent wine-producing sites in Hungary, but a recent wine tasting indicates that Nagy-Eged Hill in the Eger Wine Region stands out from the crowd.

The Ars Sacra wine package, being released for the first time, is a collaboration of two like-minded viticulturists from different wine regions: István Szepsy, one of Hungary’s most outstanding producers, well known as an innovator in Tokaj, and György Lőrincz, a prominent winemaker from the Eger wine region.

The exclusive, festive gift box contains two special bottles: István Szepsy’s Szamorodni 2012 from the emblematic Tokaj-Hegyalja vineyards, which the producer says represents the most original Hungarian wine style, and the St. Andrea Winery’s 2011 Bull’s Blood from the Nagy-Eged Hill, a wine considered

by many to embody a new dimension in Eger, and exclusively made for the Ars Sacra wine package.

This joint appearance not only expresses the two winemakers’ respect and love for each other, but is also an outstanding example of collaboration between the two wine regions.

“This partnership is important from a marketing point of view; such clear, simple messages are needed,” said István Szepsy, adding that the initiative is not primarily about sales, but rather that the two producers, who have similar ideas about divine reliance on God and winemaking, wish to express what the sanctity of wine and the art of wine mean to them.

The most valuable terroir in the Eger Wine Region is the 536-metre-high Nagy-Eged (Great Eged Hill), located north-east of Eger with soils consisting of grey Triassic-limestone with calcareous-based sediment. Grape production has a long tradition here: French Cistercian monks introduced their knowledge of Burgundian style grape production and winemaking to Eger and the Nagy-Eged hill in the 13th century. It is no coincidence that both Hungarian and French grape varietals feel very much at home in this special terroir. On November 30, three wineries which currently own parcels of land on Nagy-Eged, held a wine tasting at Kogart House, showing what this terroir (one of Hungary’s oldest and highest altitude terroirs) is capable of producing. Even veteran professional wine journalists were surprised by the complexity and elegance of the twelve wines presented there:

Kovács Nimród Winery (KNW) PRO DUCES GRAND BLEU this Kékfrankos comes from the top of the Nagy-Eged vineyard, Central Europe's highest production site.

Various vintages of this wine have won numerous prizes in Hungarian and international wine competitions, proving that truly great wines can be made from this variety. The winery’s flagship wine is the complex, robust NJK 2009 that contains Syrah and Kékfrankos, and which is a perfect partner for a good steak.

Gróf Buttler’s Winery PRO DUCES INCREDIBLY CO NCENTRATED S YRAH while their 15.5% Kadarka demonstrates the power of the terroir and shows a different side to this variety.

The St. Andrea Winery’s Bull’s Blood MARKS A RETURN TO GLORY FOR THIS HUNGARICUM BLEND these mineral rich, spicy wines can hold their own with even the most elegant of Piedmontese wines.

WRITTEN AND FILMED A brand-new documentary (‘Love as a vine’ – ‘A szeretet mint tőke’) about István Szepsy premiered at the Uránia National Film Theatre on December 8.

A recent book of interviews, ‘Dedicated to God’, is also out: radio presenter Ildikó Benkei’s work focuses on the personality and faith of the St. Andrea Winery’s winemaker György Lőrincz.

The Eger region has a cool climate similar to that of Burgundy, as both wine regions lie on the northern periphery of the wine production area, which is why Nimród Kovács often refers to it as the ‘Hungarian Burgundy’. It is perhaps no exaggeration to say that the Nagy-Eged Hill is equivalent to the finest French Grand Cru terroirs, such as Corton or Romanée-Conti. Even if there is no real hope that Burgundy will at some time be referred to as the ’French Eger’, due to years of hard work and exemplary cooperation, Nagy-Eged Hill may end up on the world’s gastronomical map.

BAKOS, PIROSKA KOLTAI/WINEAMORE, WWW.ELFOTO.HU

CCIU CHRISTMAS GALA

photos by ZOLTÁN

The Italian Chamber of Commerce (CCIU) held its traditional Christmas Gala on December 19, welcoming more than 150 guests from multiple embassies and businesses as well as from the government. The event took place at the Italian Cultural Institute at Bródy Sándor Street 8, where guests enjoyed a fine Italian-Hungarian dinner created

by Ristorante Krizia and a piano concert by Roland Dörnyei. “Our Christmas Gala traditionally serves as a festive meeting that presents a great opportunity to create new partnerships and cherish the already existing cooperations,” noted the Chamber’s President Ferdinando Martignago. In his speech, he remarked that in the next year, CCIU plans to give increased value to the Italian economic and commercial presence in Hungary. “Also, we are to adopt a system that will allow easier collaboration with the other Italian institutes and authorities in Hungary,” he added. w w w . d t e u r o p e . c o m

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