JUNE 2017 HUF 1710
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LABOUR MARKETS ARE BECOMING MORE COMPLEX THE ISSUES AND CHALLENGES OF A TRANSFORMING EMPLOYMENT MARKET WERE DISCUSSED AT THE RECENT BUSINESS BREAKFAST AND ACTION2020 FORUM IN BUDAPEST. DIPLOMACY&TRADE CARRIES AN EXCLUSIVE INTERVIEW WITH THE KEYNOTE SPEAKER OF THE EVENT, ANNAMARIE MUNTZ, THE PRESIDENT OF THE WORLD EMPLOYMENT CONFEDERATION. SEE
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"Austrians and Hungarians living in this region have had a close relationship and shared good and bad times for centuries," the Ambassador of Austria to Hungary, Elisabeth Ellison-Kramer tells Diplomacy&Trade. It is this year that Austria and Hungary mark the 150th anniversary of the Compromise, an agreement that created the Austro-Hungarian Monarchy. In the interview, she also talks, among other issues, about the common effort of controlling the Schengen border and Austrian corporate presence in Hungary. see articles on pages 8-16
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The Astana International Financial Center in the capital of Kazakhstan is scheduled to be fully operational as of January 1, 2018. The Governor of the institution, Kairat Kelimbetov explains to Diplomacy&Trade that “the idea is to give momentum to the non-banking financial sector and create new instruments to finance the economy.” see page 24
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letter from the publisher With the June issue of Diplomacy&Trade, we welcome the summer months once again and the busy tourist season. We have seen the signs of increased tourism in May and can already feel the vibes of the revelers. Not all of it good. For example, our senses are disturbed by the constant flow of ‘beer bikes’ on Andrássy Avenue crowded with raucous partiers. Is this the price we pay for low cost tourism? At any rate, there is much to see and enjoy and it is always nice to relax in the open air terraces. As was expected, the Nordic Green Light sustainability business forum this May provided a wealth of ideas that Hungarian companies and municipalities can make good use of. You can read a summary of the conference and the views of several Hungarian government officials, of a state secretary of the Norwegian government and of a Nordic company operating in Hungary and of two municipalities. Our business pages also concentrate on sustainability. We have an exclusive interview with the President of the World Employment Federation as well as with the Executive Director of the UN supported organization IMPACT 2030 and its Hungarian honorary chairman, the CEO of GE Hungary. Also on the business front, the President of the Astana International Financial Center explains the idea behind establishing this new institution in Eurasia. The country in focus for this issue of Diplomacy&Trade is Austria, with which Hungary celebrates the 150th anniversary of the Compromise that created the Austro-Hungarian Monarchy. Austria is the second most important trading partner and one of the biggest investors in Hungary. Our Focus will feature an interview with Ambassador Elizabeth EllisonKramer, covering a wide range of themes such as bilateral political and economic relations, tourism and cultural ties. Our analysis this month looks at the international implications of North Korea’s latest missile tests. This month’s WittyLeaks article is authored by the Dutch Ambassador to Hungary, Gajus Scheltema, on a ‘collection of impressions’ reflected in his book about Budapest’s famous Andrássy Avenue. We also look forward to the opening of Maltese star chef Marvin Gauci’s new restaurant Caviar&Bull located in the Corinthia Hotel Budapest, to enhance the gastro offerings in the city. See you there!
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contents Caviar&Bull: Marvin Gauci opens new restaurant in Budapest
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05 ON THE RECORD 27 WITTYLEAKS by the Ambassador of the Netherlands 06-07 COMPANY BRIEFS 28-29 WHAT’S ON Concerts, festivals, events and 08-16 AUSTRIA FOCUS exhibitions in and out of Budapest Interview with Ambassador Elisabeth Ellison-Kramer; interview with Ambassador-at-large György Habsburg; 30-31 SOCIETY Erste Bank Hungary; Spar Hungary; Österreich Werbung; Eurocomm-PR; 32 AUTOMOTIVE Leopold Maurer; Vienna, the most Big Bear for the Family livable city.
17-21 NORDIC GREEN LIGHT Ambassador-at-large Pál Sárvári;
State Secretary Martina Makai; State Secretary Elsbeth Tronstad; Telenor; Municipalities; Iceland.
Peter Freed
Heineken: Journey from barley page 35 to bar
Hungary joins IMPACT 2030 initiative
22-24 BUSINESS World Employment Federation; IMPACT 2030; AIFC
26 ANALYSIS North Korea missile tests
33 GASTRONOMY Maltese chef Marvin Gauci opens restaurant in Budapest
34 WINE Villány vineyard tour; Pannon wine guild; Gere Jazz Festival
35 BEER Heineken: Journey from barley to bar
CONTRIBUTORS: Sándor Laczkó, Tamás Magyarics, Réka A. Francisck, Gajus Scheltema PHOTO CONTRIBUTORS: Shutterstock.com (Cover), Pixabay.com, 123RF.com, Shutterstock.com, Károly Árvai/kormany.hu, Gergely Botár/kormany.hu,
MALTESE FOCUS - COMING SOON
Zsolt Burger/MFAT, Márton Kovács/MFAT, Park Atrium, Árpád Földházi, Erste Bank, Zsolt Molnár, SPAR Hungary, Österreich Werbung/Sebastian Stiphout, Österreich Werbung/Julius Silver, Gábor Muray Photography, Péter Sorok/www.sorok.com, MIKOM N. Kft./Miskolc, Orkustofnun, hegyvidek.hu, Serge Ligtenberg, Martijn de Vries, Francesco Veronesi, Marc Albert Photography, Szilvia Vereczkey, James Minchin, Ákos Stiller, Emmanuel Bobbie, Rebecca Meek, Tomislav Gotovac, Balázs Bergics, Szabolcs Csortos/cszfoto.hu, Sándor Németi/wineartculture.hu, Tamás Varga, Leopold Maurer, Nóra Halász, Heimbach, SKODA, IvoHercik.com, MTI Photo: Noémi Bruzák
In our July issue, Diplomacy&Trade will present a special Focus section on Maltese-Hungarian relations as the Mediterranean country completes its Presidency of the Council of the European Union in the first half of 2017. Evaluation of the Maltese priorities will be one of the topics discussed in the Focus. Hungary and Malta have had diplomatic relations since December 1970. Bilateral economic relations are relatively modest due to the size differences and the geographical distance between the two countries, but they show an increasing tendency, especially in the field of tourism. Our Focus will feature an interview with the Maltese Ambassador accredited to Hungary, Giovanni Miceli who presented his credentials in October 2014.
Copyright 2004-2017 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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on the record important conclusions of Transparency International Hungary’s conference entitled ‘Good practices how to fight corruption effectively in the EU’. A statement by TI says the European Union’s budget exceeds EUR 150 billion a year, which, to a large extent, serves to cover funds administered by member states, such as a Hungary, whose economy received an injection of almost EUR 30 billion since the country’s accession to the European Union in 2004. Fraud and corruption, besides undermining the EU’s financial interests and stealing European taxpayers’ money, also reduce financial resources aiming to contribute to member states’ economic prosperity. According to the statement, member states have first-line responsibility for managing about 80% of the EU expenditure and for collecting almost all its revenue. This means that the protection of the union’s financial interests lies, to an outstanding extent, in the hands of member states, whose determination to live up to these expectations is sometimes questionable. Though OLAF, the European Union’s Anti-fraud Office has a mandate to investigate fraud and illegal activities affecting the EU budget or serious misconduct of EU staff members, its powers are limited to administrative investigations. In 2015, OLAF recommended the financial recovery of 888 million euros to the relevant EU and national authorities. OLAF, however, is not responsible for the financial recoveries themselves, as it is up to the competent authorities at EU and/or Member State level to recover the money or to prevent it from being unduly spent. Moreover, OLAF is not a prosecution body, so it needs national judicial authorities to take action following its judicial recommendations.
EUROPEAN UNION LASER RESEARCH CENTER OPENS IN SZEGED
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KÁROLY ÁRVAI/KORMANY.HU, 123RF.COM, NOÉMI BRUZÁK/MTI
The European Union's ELI-ALPS (Extreme Light Infrastructure Attosecond Light Pulse Source) laser research center was inaugurated in Szeged, SE Hungary in May. The center's budget was HUF 70 billion (EUR 22.6 million), from which 85% was provided by the European Union’s Regional Development Fund. According to scientists, this project is expected to open new avenues to reveal the secrets of matter on ultrashort timescales. At the official opening ceremony, Prime Minister Viktor Orbán called the complex the largest scientific development project in modern Hungarian history. “The Research Center is not a project enabling us to catch up with Europe, but one with which Europe is catching up with the world”, he said. Viktor Orbán told reporters that “the research performed at the center could pave the way for technologies based on atomic processes, and could place outstandingly effective instruments at the disposal of other scientific fields, such as biology and medicine.” Lóránt Lehner, Managing Director of ELI HU Non-profit Ltd., the company tasked with coordinating the establishment of the center, said that the acquisition of research equipment has occurred in parallel with construction, and it will soon be installed and commissioned. The ELI Laser Research Center occupies some 24,500 square meters across five buildings (once the site of Soviet military barracks): Building A houses the various research areas; Building B contains laboratories, preparation workshops and research offices; the main building, which is also home to the knowledge center, houses the conference hall, the library, seminar rooms, the management office and the refectory; service and maintenance units and the reception area also occupy separate buildings. The center is the Hungarian pillar of the European Union’s ELI project; other sites being built in Prague and Bucharest. The Szeged Research Center stands out among the world’s other high-intensity laser installations because it can generate the most and shortest laser impulses per second, enabling the observation of atomic processes within molecules. The currently unique infrastructure in the institution can make ultrashort laser pulse resources accessible to the international scientific community in the fields of physics, biology, chemistry, medicine and material sciences. The location for the Laser Research Center in Szeged was selected in 2006, while the application for the project was initiated by the government in 2009. The Center is expected to begin operating at full capacity in 2019, after linking to the laser research infrastructures being built in the Czech Republic and Romania.
HUNGARIAN ACADEMY OF SCIENCES PRESIDENT RE-ELECTED The 188th General Assembly of the Hungarian Academy of Sciences (MTA) has re-elected, by a large majority, László Lovász as the 20th President of the Academy for the next three years, while the other two full-time leaders of the Academy, Secretary-General Ádám Török and Deputy Secretary-General Beáta Barnabás will also remain in their positions. For the next term, the three Vice Presidents will be Tamás Freund (living natural sciences), Lajos Vékás (social sciences) and newcomer, József Bokor (lifeless natural sciences). The President leads the Academy based on the decisions and resolutions passed by the General Assembly, in accordance with the Academy’s Charter. He officially represents the Academy and practices ownership rights regarding the Academy’s estate. Mathematician László Lovász was born in Budapest in 1948. He earned his degree equivalent to a PhD in mathematics in 1970, while he received his degree in mathematics and a Dr. rer. nat. title at the Eötvös Loránd University, Budapest in 1971. In 1977, he earned a DSc in mathematics. He was elected as a corresponding member of the MTA in 1979 and as a full member in 1985. His field of research is combinatorics and graph theory collectively with their application in computer-science and operation theory. His name is associated with several mathematical theories like the ‘Lovász local lemma’, the ‘Lovász theta function’ and the ‘Lenstra–Lenstra–Lovász (LLL) lattice basis reduction algorithm’. He played a significant role in elevating one of the main pillars in Hungarian mathematical studies, namely combinatorics, to a level that has made it a defining field within modern mathematics today. Recently, he has dealt with the mathematical bases of large networks, as well as working out a theory of graph limes. László Lovász was awarded the Bolyai Prize in 2007, and the Széchenyi Grand Prize in 2008. Internationally, he received the Kyoto and the Wolf Prizes. He has served as the President of the Hungarian Academy of Sciences since 2014.
Irregularities involved more than EUR 3.2 billion and suspected fraud amounted to almost EUR 640 million of EU funds in 2015. Lacking a European body that may prosecute fraudsters inside and across member states, it is questionable whether wrongdoers who fraudulently extract European Union’s money will ever be brought to justice. This is a major loophole in the protection of the EU’s financial interests, as prosecuting fraudsters now lies in the hands of member states, whose reluctance is often obvious. This can only be circumvented if institutional stability and proper legislations ensure anticorruption agencies’ independence, which is the precondition for efficiently combating fraud and corruption. These are the most
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OLYMPIC LEGEND AGNES KELETI HONORED WITH ISRAEL PRIZE
EU-WIDE BODY NEEDED TO PROSECUTE FRAUD CASES
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Five-time Olympic gold medalist Agnes Keleti received the Israel Prize for Sport and Physical Culture, the state’s highest honor, this May in Jerusalem. The Israel Prize is awarded by the state to people or organizations who have displayed excellence in their field or made major contributions to Israeli culture. Keleti is one of the founders of Gymnastics in Israel, where she has lived since 1957. Her involvement as a coach and mentor of the Israeli national team has spanned more than 50 years. "Keleti is a unique woman, powerful and brilliant. A groundbreaking woman, a leader and a role model among all her students in Israel and abroad, who made history and is living among us,” the Israeli Education Ministry wrote in a statement. Hungarian-born Keleti, now 96, began practicing the sport seriously in 1935 when she was 16. Before it was cancelled due to World War II, she was considered a top prospect for the 1940 Olympic Games. Keleti used forged papers to survive the Holocaust, working as a maid and in a factory. In 1946, she won her first Hungarian national championship, a title she would successfully defend for the ten following years. An injury kept her out of the 1948 Olympic Games, but she persisted. In 1952, at 31, she made her Olympic debut at the Helsinki Games, winning four medals, including gold on Floor Exercise. She reached the zenith of her career at the 1956 Olympics in Melbourne, Australia, where she earned four more golds (uneven bars, balance beam, floor exercise and team portable apparatus), as well as silver in the All-around behind the legendary Larisa Latynina (Soviet Union). Along with Latynina, Vera Caslavska (Czechoslovakia), Ekaterina Szabo (Romania) and Simone Biles (USA), she is one of the rare female gymnasts to have captured four gold medals at a single Games.
DIPLOMATS RECITE HUNGARIAN POEM IN JÁNOS ARANY MEMORIAL YEAR To commemorate the 200th anniversary of the birth of renowned Hungarian poet and translator, János Arany (1817-1882), the etőfi Literary useum in Budapest asked 13 ambassadors accredited to Hungary to cite the 13 verses (one by each of them) of Arany's well-known poem 'Családi kör' (‘Family circle’). A video recording the ambassadors’ performance was made for the opening of the memorial exhibition ‘Önarckép álarcokban’ (‘Self portrait in masks’).
THE PARTICIPATING AMBASSADORS IN ORDER OF APPEARANCE
Iain Ferrier Lindsay United Kingdom Eric Fournier French Republic Gordan Grlic-Radman Republic of Croatia Liubov Nepop Ukraine Aliaksandr F. Khainouski Belarus Gajus Scheltema Kingdom of the Netherlands Rastislav Kacer Slovak Republic Batbayar Olkhonuud Zeneemyadar Mongolia Ksenija Skrilec Republic of Slovenia Juraj Chmiel Czech Republic Jerzy Snopek Republic of Poland Maximiliano Gregorio Cernadas Republic of Argentina Marie-France André Kingdom of Belgium
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company briefs
DVM GROUP COMPLETES HEALTHCARE COMPANY EXPANSION
PLASTIC FILM MANUFACTURING BASE DEVELOPED Hungary’s leading plastic film manufacturing base, Material-Plastik begins the biggest development in its history: under a project worth EUR 10 million, a new 6,000-square-meter factory hall will be established and the existing fleet of machinery will also be developed. As a result of the expansion, the Hungarian family-owned company can further expand its exports and enter the American and Russian markets. Founded in 1989, the core activity of Material-Plastik Ltd. is the production of packaging materials from polyethylene (PE) raw material: primarily small bags, pouches, big bags, garbage can liners, hoses, flat films and shrink-wrapping films, and their versions printed in photo quality. With the process used, their products are made to European standards of quality. This has made them Hungary's leading PE film manufacturing/processing production base. Production is primarily based on customers' individual orders, but mass products intended for everyday use are also manufactured on a continuous basis; among other customers, they supply products to Coca-Cola and the Szentkirályi mineral water firm. The company currently employs more than 100 people at its Soltvadkert (central Hungary) and Budapest units. According to a statement by the Hungarian Investment Promotion Agency (HIPA), certain packaging engineering processes require that packaging materials have physical properties that the company is unable to achieve with its current technology. Therefore, Material-Plastik is procuring new equipment suitable for manufacturing five-layer plastic film. In order to meet market trends, to fulfil the high number of purchase orders and to serve continuously increasing orders, a new, 10-colour printing machine with a central printing unit will be placed into service in the new factory hall. At the ceremony, companyowner Zoltán Garami said: this is the biggest development of the company to date. The company sells its products in nearly all EU member states, but, for example, also exports to Trinidad and Tobago and Algeria. Under the announced development project, the company's production will double, but in addition to increasing its capacity, manufacturing quality products and increasing the market share are important considerations. With this, Hungary's leading plastic film manufacturing base will be developed in Soltvadkert, and an opportunity will open up for the company to penetrate the US and Russian markets. In addition, 66 new jobs will be created, which represents a more than 60% increase in its headcount.
The Hungarian affiliate of one of the leading healthcare companies of the world created its new office spaces with the help of DVM group in Park Atrium office building. The healthcare company has been present in several blocks and levels of the building, with its new leases occupying nearly 730 square meters on the 1st floor of B2 and up to 360 square meters on the ground floor of B4. The international healthcare provider entrusted DVM group with design and construction tasks, while project management was provided by the global real estate services firm Cushman & Wakefield. The architects of DVM group created the interior space based on the newly introduced international design guidelines of the client. An essential aspect of design was to make work relationships less hierarchical, to facilitate information flow and efficient work via flexible space structures. This was achieved using shared workstations, focus booths for phone calls or for one to two people’s work, small rooms for internal meetings and large conference rooms for international conferencing. It was also a key objective that space design should not only be high-standard and tasteful, but also durable and close to nature in style. Accordingly, mainly colored and fabric wall surfaces in pastel shades were installed in the office. The nature-inspired concept is also represented by Interface's biophilic modular floor carpets. In the open office, special emphasis was placed on acoustics. Above the open areas, one of the best sound absorbing ceiling panels were chosen. The space between them remained open due to a special technical solution, and the mechanical elements running there are painted black, thus enhancing the internal height. The lamps, two of which are exactly the length of an acoustic panel, also fit into the rhythm of the ceiling. There is a ribbed suspended ceiling over the other areas. The open-air office units, nicknamed neighborhoods, are identified by wall decorations. Their own unique colors appear on painted wall surfaces, numbered foils and on community wall surfaces, which also serve as a message boards. Collaboration spaces encouraging project-based work are adorned by design lamps.
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garde and modern festivals. In addition to its World Heritage listed cultural and historical treasures, Saint Petersburg is a major trade gateway and one of the main financial and industrial centers of Russia. Following the recent commencement of nine routes and the announcement of the Bordeaux, Astana and Frankfurt services, Saint Petersburg becomes the 13th destination to which the airline will start operating flights from Budapest in 2017. The airline now connects the Hungarian capital with 63 cities across Europe and beyond, which makes its Budapest offer the most diverse in the entire Wizz network. Being the hometown airline of Hungary, Wizz Air currently operates flights from two Hungarian bases in Budapest and Debrecen (eastern Hungary) with a total of 12 aircraft in the country, employing more than 1,000 people in flight crew, cabin crew, office and supporting functions. In 2016, 3.7 million passengers flew with Wizz Air to and from Hungary, which is more than any airline has ever carried on its Hungarian routes, and represents 23% growth year over year. Based on the 2016 figures, the airline’s operations support over 2,800 indirect local jobs.
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After the Netherlands and Malaysia, FrieslandCampina is establishing their third shared services center in Hungary. The team of 150 professionals in Budapest will provide financial services for the EMEA operations of the Dutch dairy company. The strategic geographical location and the availability of the highly qualified workforce played a significant role in the positive investment decision for Hungary. FrieslandCampina Hungária Co. Ltd. manufactures and markets dairy products in Hungary under the brands Pöttyös, Milli, Oké, Landliebe, Completa and Frico. FrieslandCampina and its legal predecessors have been prominent in the Hungarian food sector for decades. The company employs about 500 people. Its range contains around 120 types of dairy products of which 80% are produced locally at the company's plant in Mátészalka in northeastern Hungary. The milk is supplied by dozens of Hungarian dairy farms. Roel van Neerbos, member of the Executive Board of FrieslandCampina, responsible for businesses in the EMEA region stressed at the announcement that Hungary's geographical location, the availability of the highly qualified workforce and the foundation of the past decades were the main reasons to set up a regional shared services center in Budapest. The engagement of the Hungarian government for the project, and the support provided by the Hungarian Investment Promotion Agency (HIPA) were also strong points during the decision-making process, he added.
Russia's second largest city is a major port on the Baltic Sea at the delta of the river Neva. Founded by Tsar Peter the Great and once the capital of the Russian Empire, Saint Petersburg is considered to be the country's cultural capital. With its breathtaking location and uniquely preserved architectural monuments, the city offers countless sights for visitors to discover: over 200 museums, including the Hermitage, one of the largest art collections of the world, numerous palaces, art galleries, and a diverse cultural life ranging from classical music and ballet to the avant-
ZSOLT BURGER/MFAT, MÁRTON KOVÁCS/MFAT, PARK ATRIUM, ÁRPÁD FÖLDHÁZI
FRIESLANDCAMPINA TO SET UP THIRD HUNGARIAN SERVICE CENTER
Wizz Air, the largest low-cost airline in Central and Eastern Europe, has announced a new route from Budapest to Saint Petersburg in Russia. The newest Wizz service will commence on August 27 and will be operated twice each week. According to Wizz Air’s press release, Saint Petersburg will be the second Russian destination available from the Hungarian capital. In September 2013, Wizz Air launched the Budapest – Moscow service and, since then, has carried 440 thousand passengers between the two capitals. Saint Petersburg,
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WIZZ AIR ANNOUNCES BUDAPEST - SAINT PETERSBURG ROUTE
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company briefs CORNERSTONE LAID FOR AUTOMOTIVE SUPPLIER
AUDI’S INVESTMENT A MILESTONE IN ELECTROMOBILITY German car manufacturer Audi set up its latest technological center in Győr, NW Hungary, for the expansion of competencies relating to electric driveline manufacturing. The Hungarian staff has 24 years of experience and know-how in the building of conventional engines, which gives an excellent baseline for the development and testing of next generation electric drives. The entire drivetrain of Audi's first purely electric-powered SUV model will come from the Győr factory starting in 2018. For the smooth manufacture of electric motors, the German premium carmaker will provide for the training of 1,000 specialists. Since its establishment in 1993, Audi Hungária Co. Ltd. has realized EUR 8.3 billion worth of investments in Győr. Launched as an engine factory, the plant has developed into the largest engine and motor manufacturing, development and competence center, not only in the Audi and Volkswagen Concerns, but in the world over the past more than one and a half decades. Among others, Bentley and Lamborghini engines are also made here. Audi Hungária supplies engines to more than 30 sites of the Volkswagen Concern. The number of its employees is over 11,000. Its 2016 turnover was more than EUR 7.136 billion, according to the Hungarian Investment Promotion Agency (HIPA). In order to prepare for the serial production of these new electric engine models, Audi Hungária made a EUR 390 million plus investment to build a 80,000 square-meter bodywork plant. The significant volume of the investment and the two new models together make this development an important milestone in the history of Audi Hungária. Audi has been developing its competencies in the field of electric drives for years, for which the more than 24 years of experience of the staff represents an unparalleled basis. The starting point of future series production is a technological center designed and fit out specifically for this purpose, where about 1,000 employees will perform the testing of different manufacturing technologies and the manufacture of prototypes. The preparations for series production to be launched soon have also started at the world's largest engine and motor factory. The electric motors will be made at a 'Smart Factory', using the principle of modular assembly, which will be established for the first time here within the Concern. In the new manufacturing system, the engines and motors will be assembled not on assembly lines, but on assembly islands, and the motors and the components required for them will be forwarded to the appropriate workstation by a driverless vehicle transport system (FTS). The complete drivetrain for Audi's first purely electric-powered SUV model, which will roll off the production line from 2018, will be delivered exclusively from Győr.
FAG Magyarország Ipari Kft., headquartered in Debrecen and belonging to the Schaeffler Group, is increasing its capacity by constructing a new factory hall. The German company has reached an important milestone with its groundbreaking ceremony, since the Debrecen factory will supply bearings to multiple European car factories within the Schaeffler Group. Under the project - implemented in cooperation with the Hungarian Investment Promotion Agency (HIPA) and the support of the Hungarian Government - several hundred new jobs will be created in the coming period. This development is of great importance for the economic development of not only Debrecen, but also the region. The Schaeffler Group is one of the leading integrated suppliers in the industrial and automotive sector. Precision components
and systems manufactured for engines, gearboxes and chassis as well as rollingelement bearings and sliding bearings manufactured for industrial use make the Schaeffler Group a key player in the 'Mobility for tomorrow'. Founded in 1999, FAG Magyarország Ipari Kft. has
responded to increased demand arising in the past years for rolling-element bearings. In the new greenfield manufacturing hall of more than 25,000 square meters, rolling-element bearings will be produced using machines that provide state-ofthe-art grinding technology, thus the production volume is expected to increase significantly, by up to 50%. The first products manufactured here are expected to be delivered in 2018. Germany has been Hungary's highpriority economic partner for many years, which is demonstrated by not only foreign trade data, but also by the nearly 6,000 German companies operating in Hungary, which provide jobs to 300,000 Hungarian people. In 2016, Germany's share in Hungarian exports and imports was 27.5% and 26.5%, respectively.
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MÁRTON KOVÁCS/MFAT, GERGELY BOTÁR/KORMANY.HU
THYSSENKRUPP STRENGTHENING ITS PRESENCE IN HUNGARY WITH NEW FACTORY Thyssenkrupp started its recent investment with the ground breaking ceremony in Debrecen, E Hungary, where the most modern springs and stabilizers will be manufactured for premium car brands. The Hungarian Government – in cooperation with the Hungarian Investment Promotion Agency (HIPA) – provided subsidies based on individual government decision to the EUR 35 million investment. According to the Hungarian Investment Promotion Agency (HIPA), Thyssenkrupp has been engaged in R&D activity in Hungary since 1999. Today, there are more than a million cars worldwide with technology developed in the Thyssenkrupp Budapest competence center, currently employing 500 persons, known and recognized on an international scale. The E/E (electrical and electronic) center is especially important for the Hungarian economy, since high-tech development projects like this represent the most progressive technology within the vehicle industry. The construction of the new plant has started in Debrecen, on a 100,000 square-meter site. Starting from 2018, the company will manufacture around 6.5 million springs and stabilizers per year, mainly for European premium car factories. The amount of the investment is close to EUR 35 million, which will result in 250 new jobs created by Thyssenkrupp until 2020. In addition to its Budapest competence center, Thyssenkrupp Presta Hungary has a gear factory in Győr, NW Hungary and a greenfield project worth more than EUR 95 million is underway in Jászfényszaru, E Hungary. As a result, from 2018, the production of electromechanical steering systems and cylinder head-integrated camshafts will also be moved to Hungary by the German concern. In November 2016, the company entered into a strategic cooperation agreement with the Hungarian government, and has now 1,000 Hungarian employees. w w w . d t e u r o p e . c o m
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NOKIA RESEARCH CENTER BUILDING INAUGURATED IN BUDAPEST Nokia Skypark, one of the largest IT and telecommunications R&D centers in Hungary was officially introduced in the Corvin quarter of Budapest. The newly built complex will not only house the Nokia Global Technology Center but also accommodate research conducted by the Hungarian branch of Nokia Bell Labs. The Budapest unit of Nokia is already operating with a staff of 2,000 people, many of whom work on technological development at a global standard. Nokia of Finland – established in 1865 – is one of the world's largest telecommunications companies. The Espoo-based company has operations on all continents of the world, in more than 130 countries. In 2016, the company's consolidated net sales revenue amounted to EUR 23.61 billion, indicating a sharp 89% growth over the results of the previous financial year. Last year, the company had 102,687 employees around the world. Nokia has been present in Hungary since 1997. The company has reached a solid global position here in the field of research and development. One of Nokia's innovations is the most used Hungarian product in the world: the mobile switching server connects more than 1.4 billion people, allowing uninterrupted use of their mobile phones while moving from place to place. At present, the Finnish company is relying on 2,000 Hungarian specialists to develop further innovations that shape the future of the telecommunications sector, such as the railway mobile telecommunications network and the cloud-based telecommunications system that adapts to the given load. Hungary is one of the global centers of next generation mobile data transfer (5G) research; Hungarian specialists are working on the development of the necessary equipment and networks to allow us to enjoy the benefits from 2020. 5G is not only about increased bandwidth – it is much more. Nokia's vision encompasses a thinking network that behaves like a nervous system, a virtual sixth sense, which serves us without even noticing it. If, for example, we are video streaming on our phone, the system detects this and adjusts the necessary bandwidth. Or, if it learns the time we wake up, it automatically turns up the heating in winter.
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GOOD NEIGHBORS WITH COMMON PAST INTERVIEW WITH ELISABETH ELLISON-KRAMER, AUSTRIAN AMBASSADOR TO HUNGARY
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As neighbors, Austria and Hungary have longstanding historical relations, currently celebrating, for instance, 150 years of the Compromise that created the Austro-Hungarian Monarchy in 1867. “Austrians and Hungarians living in this region have had a close relationship and shared good and bad times for centuries – sometimes with more, many other times with less tension. 1867 was, of course, an important date in our common history,” the Ambassador stresses. She believes the years that followed 1867 were very fruitful for both countries. “Just look at what happened in Budapest: the beautiful buildings, the economic foundations laid down in those times and the enterprises created. This date marks the start of an era of great development. Unfortunately, many tragic events have also taken place over these 150 years but, if you look at the situation today, you can say that we arrived at a level in our relations that was unthinkable only some decades ago.”
DÁVID HARANGOZÓ, PIXABAY.COM
Elisabeth Ellison-Kramer presented credentials to Hungarian President János Áder in February 2017. As regards her objectives as the Ambassador of Austria in Hungary, she tells Diplomacy&Trade that “these are the classical tasks of an ambassador: neighboring countries with long historical ties need to keep moving the already existing very good diplomatic relations forward, fostering and deepening economic ties and exchanges because it creates a multitude of relations on all levels and shows just how beneficial this relationship can be.” She adds that there are other very important ties one must not forget, and that both countries have a strong interest in culture and cooperation in the scientific field. “These are all very important to foster.”
150 years
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Predictability, stability and transparency
2017 is also the year for celebrating another anniversary from the common past of the two countries: it was 300 years ago that Maria Theresa (Archduchess of Austria and Queen Mary II of Hungary) was born. The Ambassador says that “Maria Theresa was, the power-woman of politics of the past centuries. She lived in the 18th century and she gave birth to 16 children, of which ten survived to adulthood. At the same time, she laid down a very important foundation of modern administration in her empire during the 40 years of her reign. She was a very warm-hearted person, very much skilled politically and a very efficient leader.”
DÁVID HARANGOZÓ, PIXABAY.COM
PIXABAY.COM
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Controlling the Schengen border Ambassador Ellison-Kramer does not agree with the notion that the Austrian and Hungarian governments have a different view on the issue of illegal migration. “It is certainly a matter that has grown. Just recently, the Austrian Foreign Minister Sebastian Kurz explained in the Süddeutsche Zeitung that securing the Schengen border is a top priority for Austria. In this regard, we totally agree that it is very important for the European Union to secure its outside borders so that we can have the free movement of people within the EU for economic, cultural and other reasons.” In this regard, she adds that Austria is supporting Hungary in the task of saving the border in many ways. “We are one of the countries that has sent law enforcement personnel for the protection of the Hungarian-Serbian border, which is part of the w w w . d t e u r o p e . c o m
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frontier of the Schengen zone. Up to 25 Austrian police officers are serving there with FRONTEX and it is very much appreciated on both sides as I was told when I visited the border area. Another example of highly appreciated cooperation in the border zone is that we are sending engineers from the Austrian Army to help build roads and support Hungary logistically. This operation has just been prolonged for a period of another six months.”
Economic relations “We are important economic partners to each other. Austria is the second biggest trading partner of Hungary and we are among the most important investors in this country. Our trade volume reached nearly EUR 10 bn in the past year. Hungary is an important export market for Austria. The most important Austrian export goods to Hungary are mechanical engineering products and vehicles. We have a fairly high number - about 2,900 - Austrian companies established in Hungary, covering a wide range of fields of business. There are leading companies, for example, in the finance and insurance sector, in retail business, in the paper and packaging sector as well as in the construction and construction materials industry. Austrian companies started to invest in Hungary over 25 years ago and did so with a long-term perspective. With over EUR 8 bn. Euros investment volume Austria is the third biggest investor. Naturally, there is also room for further deepening our economic relations, for example, in the field of digitalization or autonomous driving. Of course, geographical proximity also helps. The crossborder Interreg program that is jointly financed with EU, as well as national funds launches important projects in the border area between Austria and Hungary. Amongst such projects is the development of rail infrastructure links or a cooperation program between 4 national and 10
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As to how satisfied Austrian investors are with the Hungarian business environment, Ambassador Ellison-Kramer is of the opinion that this very much depends on the sector of business the individual company operates in. She highlights that “we have a lot of companies here in the service sector, many insurance firms and a number of construction companies. There have been discussions in the past couple of years on issues like the special tax levied on the financial sector by the Hungarian government but that matter now has been resolved. What is important for any company regarding the investment environment is predictability. I have often heard that companies want to be involved and have their voices heard somehow before decisions are made regarding regulations that affect their operations. Other factors that are mentioned frequently are stability and transparency. It is not a secret that there have been discussions before but what is important is to engage them in a spirit of dialog and with a view to common interests. A good example for fruitful negotiations is the case of Erste Bank Hungary in which the Hungarian state - along with the European Bank for Reconstruction and Development (EBRD) - acquired a minority stake.” She adds that investors from Austria or from any other foreign countries would obviously like to make sure that sudden changes of regulations would not harm or eliminate their investments. “I have noticed that companies come here to stay for the long term, to have a solid investment.”
Partner organizations As regards the Embassy’s major partners to work with in Hungary, Elisabeth Ellison-Kramer says “we are in cooperation with all stakeholders and decision-makers. We had two high-level visits from Austria this year: first, the minister for family affairs and just recently the minister of finance were here for an exchange of views with high-ranking Hungarian officials. At the beginning of the year we had a business roundtable held at the invitation of the Ministry of Foreign Affairs and Trade here in Budapest together with the representatives of different departments.” She adds that “apart from the Austrian Embassy in Budapest there are several other Austrian offices like the trade delegation that is mostly in contact with Austrian businesses and other entities here. We have a Cultural Forum (Österreichisches Kulturforum) 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
that is part of the Embassy. The new director, Regina Rusz is very active, she arrived early this year, just as I did. We have the Austrian tourism office Österreich Werbung and an office by the city of Vienna in Budapest as does the province of Niederösterreich. We also have seven honorary consuls and we are in constant contact with all of them. There are two Austrian schools in the Hungarian capital. They are very successful and have some 700 pupils altogether – with three times as many applying.”
Culture According to the ambassador, cultural relations are always important for Austria as culture has a substantial role in Austrian society. “History and contemporary arts are very important in the daily life of Austrians. There are numerous festivals in Austria – nearly every little town has a cultural festival in the summer. The Embassy is also very happy to have ties with many cultural institutions in Budapest and beyond. Very often, there are exchanges between museums like in the case of the ‘Golden Age’ exhibition, organized here in Budapest, that received a lot of pictures from Austria or that for a big exhibition for this year’s Budapest Spring Festival, on Georg Baselitz, the Albertina, a very prestigious Austrian museum, loaned pieces of art. The exhibition, staged by the Museum of Fine Arts and the Hungarian National Gallery can be seen until July 2.” She also finds it important to mention the Andrássy University in Budapest, of which Austria was one of the founders, as an excellent example of cooperation between the German-speaking countries and Hungary.
People to people relations Elisabeth Ellison-Kramer believes what contributes to a close relation between Hungarians and Austrians are the many family ties and the potential that lies in our close neighborhood. She also mentions tourism and student exchanges among the important drivers for mutual friendship and understanding of each other’s culture. As regards her time in Hungary so far, Elisabeth Ellison-Kramer mentions many good experiences and meetings during her work and in her private life travelling through the country and discovering more and more of the Hungarian art and way of life. In conclusion, she adds “being Ambassador, especially to a close partner with whom we maintain ties in so many different fields, is a constant learning process – and a most rewarding too”. HUNGARY
AUSTRIA
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
83,871 sq km 114 8,711,770 (July 2016 est.) 95 0.51% (2016 est.) 160 9.5 births/1,000 population 204 81.5 years 23 5.2 migrant(s)/1,000 population 24 $47,900 (2016 est.) 29 6.1% (2016 est.) 66 13.471 million 71 52 (2013) 90
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THE HUNGARIAN HABSBURG AUSTRO-HUNGARIAN COOPERATION ALWAYS A GOOD SIGN FOR CENTRAL EUROPE
Ambassador-at-large
Living in Hungary
György Habsburg is also Hungary’s ambassadorat-large in the world. He stresses that this is not a paid position. “This is a position that was created for me in 1996 so that I was able to assist Hungary in its accession to the European Union, an issue I worked on very actively.” Today, he uses this position if there is a necessity for him to do something in the interest of the country in relation to international organizations like working with the United Nations or working on the Budapest Olympic bid (which has now been canceled). As to how he would describe the present-day political relations between Hungary and Austria, he says “it is difficult to say in this changing political situation in Austria. I am looking forward to seeing the political developments in Austria in the next few months to find out the position of the different politicians that are going to be responsible for formulating the country over the coming years. If I had a glass ball to look into and see what the future government of Austria looks like, only then could I have a better idea of what the political relations would be like. Keeping all this aside, the relations could be improved very much. I am very happy that Austria has sent a
György Habsburg is a Hungarian citizen as was his father, Otto von Habsburg. György moved to Hungary in 1993 and received a Hungarian passport at that time. As regards his motivation to do so, he says the first time he came to Hungary was with his father and, at that time, “my big handicap was not speaking Hungarian, so, one of the reasons I moved here was to learn Hungarian in the native environment. I did not mean to stay for a long time but then, I found a job and integrated into Hungarian day-to-day life and thus, I decided to stay. Here, there is no average day-to-day life as every day is different. There are many events related to anniversary celebrations connected to my family. It started in 2014 with the centenary of the Sarajevo assassination that led to the First World War. Last year, it was the centenary of the coronation of my grandfather, Charles IV. So, there are, for the moment, many events, and you can see very well the dimension, because it is not only commemorations in Hungary but also from Cracow to Sarajevo or from South Tirol to the Ukraine, giving representation responsibility to the members of the family. So many events happening one after the other.”
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Central Europe. Therefore, I would like to see Austria is take a more active role vis-avis the Visegrád countries. This region has worked very well together historically.”
György Habsburg used to be the President of the Hungarian Red Cross and he still works as a Special Representative of the organization. “Nowadays, I work more for the International Federation of the Red Cross, the umbrella organization. On the other side, I have a consultancy firm to support my life and family,” he says.
Seven decades of peace The picture the European Union has shown of itself in the past years is quite mixed. György Habsburg says that one must get back to the origins of the European Union when the most important intention was to make a secure, stable continent, to leave behind a historical period where this continent had been torn to pieces by different conflicts and wars. “In the history of the European continent, there are a lot of these conflicts. But then came European integration, culminating in the European Union, and there has been over seven decades of peace now. Today, people talk about the banking crises, economic problems, the Greek crisis and the migration crisis but they forget to mention the success the European Union and its predecessors achieved on the continent: seven decades of peace! It also needs to be noted what incredible success stories have happened over the last decades and to show how much money was put into development programs, into assisting ecological programs, into supporting different projects and modernizations – all this from EU development funds – and really to prove how well the European Union is working.”
The EU needs to change According to György Habsburg, “people who focus on history and try to understand the political situation that we have in Europe today, see that the European Union has to change over the course of the next years. It is because the way the EU works now, especially the way the EU communicates, creates more problems than good works. So, the European Union has to change because currently, an individual EU member country (and here I’m not speaking about Germany, France or Italy) finds it difficult to influence this reform process. In Central Europe, there is a group of countries that work together to put their position in accordance with each other before taking it to Brussels. This is the Visegrád 4 Group in which the Czech Republic, Hungary, Poland and Slovakia hold regular meetings, harmonizing their policies and political positions, thereby actively participating in the reform process of the European Union.” He adds that “of course, it is very important also that Austria play an important role in J U N E
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very active ambassador to this country who is doing an excellent job and who is working really hard to promote Austro-Hungarian relations.”
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As neighbors, Austria and Hungary have historical relations. This year they celebrate the 150 year anniversary of the Compromise that created the Austro-Hungarian Monarchy in 1867. As the representative of the Habsburg family, György Habsburg tells Diplomacy&Trade, “what happened 150 years ago was a milestone in the development of Central Europe. Anyone who travels around Hungary nowadays, will see what an incredible push the Hungarian economy received, what fascinating buildings were constructed, how the country flourished by taking advantage of the opportunities provided after this agreement between Austria and Hungary in 1867.” He adds that “if you look at history, you can also see that it was always good for the region if the relations between Hungary and Austria were good, so, that was always a good sign for the development of Central Europe. One fine example was the fall of the Iron Curtain. Nowadays, people - especially young people tend to forget what the Iron Curtain meant. We still remember the barbed wires, mine fields and sharpshooters. Today, with non-stop travel between Austria and Hungary the borders of earlier times are hardly imaginable to those who remember them. Therefore, I understand that it is quite unimaginable for the younger generation to understand the situation of three-four decades ago. We should never forget the Iron Curtain and what happened at the Pan-European picnic on August 19, 1989. Hungary was one of the key players to open the Iron Curtain that divided the whole continent. The things that happened afterwards constituted a development to be expected because one saw what happened to other countries after they joined the EU.
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SPAR for social responsibility
288.5 tons of food products were collected in 165 SPAR stores by the
Social responsibility has played a major role in the life of SPAR Hungary
volunteers of the charity service, enabling the preparation of 33,000
for years, since serving public interests is one of the foundations of
food packages.
its corporate philosophy. The corporation implements this practice through the significant support it provides in the fields of sports and culture, helping those in need, promoting Hungarian products, as well as promoting healthy lifestyle. In 2016, Spar donated the value of more than 160 million HUF to social responsibility causes, institutions and events.
Established support system
Responsibility for animals
The support process established in 2015 - based on the
Under the framework of its social responsibility initiatives, SPAR also
www.sparsegitokezek.hu (SPAR Helping Hands) website - provides
focuses on the fate of animals, and therefore it supports the work of
transparency to the corporation and equal opportunities to the
the Animal Rescue Service (Országos Állatvédőrség) all year round.
applicants at the same time. This enables SPAR to provide help in
Food products which are not suitable for human consumption are
many different walks of life, including education and healthcare.
donated to animal protection services, shelters and zoos. Thus, the
Through this well-operating system, the company intends to offer a
company has supported 117 animal protection organizations with
helping hand to as many places as possible. A total of 22 million HUF
2,800 tons of products not suitable for human consumption. Many
was distributed among different organizations and institutions
of these organizations would operate under austere circumstances
last year.
without the donations.
Hungarian Maltese Charity Service
Budapest Wine Festival The company is committed to supporting Hungarian wines: it has been the main sponsor of the Budapest Wine Festival for years. The offerings of the Charity Wine Auction traditionally organized by the festival are used for supporting people in need through the Hungarian Maltese Charity Service.
SPAR Budapest Marathon
The Hungarian Maltese Charity Service (Magyar Máltai Szeretetszolgálat) and SPAR Hungary celebrated the 20th anniversary of their strategic cooperation in 2016. This year has also shown that this partnership gives way to several opportunities, and to prove that, the hardships of thousands of people living in need were relieved. Donation cards for the charity service can be purchased at all of the shops - using SuperShop points as well - with the nominal
The running festival was organised last year for the 31st time, with
values of 200 and 500 HUF. More than 8 million HUF was received
a record number of entrants: more than 28 000 people tested their
through these cards last year, and through the charity shopping bags
abilities in one of the 10 distance runs. As one of Hungary’s most
the additional donation of 4 million HUF was received. During the
important sports events, the festival welcomed 4270 foreign runners
traditional, end-of-the-year “Adni öröm” (joy to give) campaign, people
from 76 countries.
truly showed that anything can be achieved through cooperation.
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Erste is one of the largest banks in Hungary. Radován Jelasity, the CEO and Chairperson of Erste Bank Hungary Co. Ltd. points out to Diplomacy&Trade what this market position means for the bank and its customers. “It means a full service spectrum, probably the largest one in this country. It also means good access to our services all over the country as we have one of the largest branch network. For our customers, it is reassuring to know that we belong to the most valuable Central and East European banking brands, Erste, supervised by the European Central Bank. In addition to the security provided by this large financial institution behind us, customer trust is also expressed in the number of depositors. 6-7 years ago, our loan-todeposit ratio was around 200% while now, we are at approximately 70-75%. All this means that while before, we were funded by our mother company, nowadays, we are funded by local deposits. It is a sign of confidence and that of a different business strategy.”
A win-win deal By taking over Citibank’s retail banking and cards businesses, Erste Bank Hungary acquired almost 200,000 new customers. “For us, Citibank was something that perfectly fit into our business aspirations, meaning that it was a strong retail bank with strong cards operations and also asset management and personal loans. It fits perfectly into our strategy as far as employees are concerned. I appreciate, at least as much, the people that we took over as the business potential of the deal because I think those 430 bankers are really good ones. They created the value in the previous time period and thus, I believe they are going to create value here, as well. We should not forget that Citibank’s retail business did not get sold because it was badly
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operating or was making losses. It was part of the strategy as retail is not anymore in the focus for Citibank in Europe - that was the main reason they decided to sell it. So, all in all, I think it was a win-win situation for everybody. On one hand, Citibank was a niche player in Hungary, a niche that we very much like. On the other hand, these customers can now have access to a full variety of products that Citibank was not offering – from building society all the way to different mortgage loans, insurance policies etc. I think these are good arguments for both parties for this being a good business deal. Citibank was also very active in trying to find the most preferred partner to buy them. When the merger took place, it was nice to hear that both the bank employees and management preferred Erste as the potential buyer. Of course, the price had to be right, as well,” the CEO highlights
The card business The Citibank deal also made Erste Bank the No. 1 credit card service provider in Hungary. Radován Jelasity notes that Citibank was the one that brought Hungary the first ATM and was among the first to issue credit cards and debit cards. They had a 30-year-old story behind them in Hungary. “For us, it is very important that we bought this know-how, we bought the experience and that we are strengthening our team with all of these employees that we were able to take over. Definitely, we see this as a potential move towards less cash and more cards, more convenience. The whole takeover took a little bit longer than originally planned because we wanted to make sure that our services would be at least as good as the ones Citibank offered before.”
More owners EBRD and the Hungarian state have recently acquired a 30% stake (15% each) in Erste
FX LOANS AND BANKING TAX One of the biggest problems the Hungarian banking sector has had to deal with in the past couple of years is that of the foreign exchange (FX) loans. Speaking on this issue, Radován Jelasity recalls an old saying in Serbia that ‘if you sit on the wrong train, every station along the route we'll be a wrong one’, meaning that out of an inherently bad construction, there is no good solution. “I personally have never, ever provided a single Swiss franc denominated loan. Through my professional life, I have always preached against it. Before coming to Hungary, I was working at the central bank in Serbia where the whole country had less than one billion Swiss franc denominated loans. It was a bitter realization for me once I joined Erste Bank Hungary, that this bank alone had four times more Swiss franc denominated loans than the entire country of Serbia - and Hungary close to 20 times more. This system did cost banks a lot, it did substantial harm to our clients’ confidence as far as banking and bankers are concerned. I still have, now and then, some bitter J U N E
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demonstrators even in front of my house which I find unfair as I did not grant a single FX loan in my life. I am really happy that this chapter is over, we have closed it down. Now, we have a minimal amount of FX loans left at our bank: about EUR 20 million compared to the EUR four billion we used to have. I hope we have all learned a lot from this story and that these mistakes will never ever be repeated. Banks, customers, supervisors, politicians all had their own share. The Forint is our currency, this is the currency that we should provide services in for our clients on all sides: both deposits and loans.” As far as banking tax is concerned, the Hungarian government has implemented the highest rate in Europe. “It was very harmful for us, as we were paying just above 53 basis points banking tax on the entire balance sheet. Of course, we do not make money on the balance sheet, we make money on the loans only. Plus, due to the deleveraging, and the NPL (nonperforming loan) clean up, we had a substantial reduction of our balance sheet, which meant that as the banking text was fixed on the balance sheet of 2010, and later had
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a lower balance sheet, we still had to pay taxes on the original one. So, basically, the reduction of the balance sheet increased the rate of the banking tax for us even further. Effectively, therefore in 2014, instead of 53 basis points, we were paying something like 70-72 basis points of tax. To put it in perspective, on the mortgage loans, the bank can make 200-250 basis points from which we have to cover all our costs and provide something for potential losses (general provisioning)! So, basically, it meant that something like a third of our revenue had been taken away by this high banking tax. We are very pleased that there was, in the meantime, a substantial reduction. It has contributed to increase of confidence not only in the banking sector but, I think, for the owners of the banks, as well. The special tax has an impact on the profitability of the banks. More profitable banks mean higher capitalized banks, which will hopefully further increase the confidence in the whole banking sector. However, we are still expecting a further reduction of this special tax as we still pay the highest rate in Europe,” the CEO concludes.
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DEAL WITH CITIBANK BROUGHT 200,000 NEW CUSTOMERS
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ERSTE BANK IS HERE TO STAY
Bank Hungary. According to the CEO, the memorandum of understanding signed on the deal is a good landmark for starting a new era in the cooperation between the Hungarian government and the Hungarian banking sector. It did not only include the earlier reduction of the banking tax but also a commitment from the state that they're going to privatize the state-owned banks in the foreseeable future and that there is going to be a more proactive cooperation with the banking sector on future challenges. “I can say that the government kept its word. It was a milestone in the cooperation between politics and banking in Hungary. The deal also strengthened us because with more owners, we have more allies who are interested in the efficiency, the profitability and better management of this bank. These developments, along with the Citibank transaction, showed a clear commitment of Erste and also the other owners that we should play a key role in the consolidation of the banking sector.” Radován Jelasity believes that, in the near future, “as a group, we all understand that in a given country if you want to be a key player on the medium and long-term, you have to be among the top three banks. This is definitely a philosophy that we are pursuing in all countries of the region. We lost pace with our development in the time period of 2010-2014/15, partly due to NPLs and partly due to the FX loans, etc. So, we basically had to deal with our own past but definitely, we are changing gears. We are again on a growing trend, we are very curious to see how the future consolidation in the Hungarian banking sector will look. We are here to stay, we are here to grow and we are here to keep all of our options open as far as our future positioning is concerned and definitely we will do whatever is needed to remain among the top three banks in Hungary.”
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SPAR FOCUSES ON THE BEST POSSIBLE SERVICE TO CUSTOMERS
SPAR Hungary has recently celebrated its 25th anniversary in Hungary. Diplomacy& Trade asked Gabriella Heiszler, CEO of SPAR Hungary, how satisfied the Austrian owners (Austria SPAR International AG) are with this over quarter century and what their international background means for the management of the Hungarian company. “We are committed to our presence in Hungary, which is best indicated by the fact that we have invested more than EUR 1 billion in the Hungarian market during the last 25 years, since our operation commenced. The company’s financial results have successfully stabilized and started to grow during the last five years, under the management of Erwin Schmuck, and obviously the shareholders of the company are very satisfied with these results.”
photos by
ZSOLT MOLNÁR, SPAR HUNGARY
Pioneering role In 1995, SPAR took a pioneering role in establishing a new category of commercial outlets in Hungary by opening its first INTERSPAR hypermarket in the country. “Our company has always pursued a different path with the INTERSPAR hypermarkets, compared to our competitors. In the case of establishing INTERSPAR units, we have always considered it important to ensure that the store is located close to people’s homes and its dimensions are also favorable to our customers. The results of the last few years seem to have confirmed this strategy, since both the turnover and the customer number of the INTERSPAR stores have developed w w w . d t e u r o p e . c o m
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at a higher rate than the hypermarkets of our competitors,” she highlights. Nowadays, there are hundreds of SPAR stores all over Hungary, including 33 INTERSPAR stores, and competitors have followed suit. Regarding further plans of expansion, Gabriella Heiszler says “we are very proud of being able to open a new INTERSPAR hypermarket in Érd (SW of Budapest), the first in three years, which has recently received the ‘Store of the Year’ award in the hypermarket category by Élelmiszer (‘Food’) magazine. In addition to this, we also consider opening new supermarkets very important: we have inaugurated the first supermarket this year on May 25 in the 2nd district of Budapest. But the majority of our investments cover store renovations. Additionally, we should also highlight our SPAR Partner franchise program, which is our most dynamically growing sales channel: we expect a revenue increase of 50% this year through these units.”
Consumer demand and flexibility SPAR Hungary has a lot of Hungarian suppliers. Regarding the scope of this network and SPAR Hungary’s policy towards them, the CEO stresses that customer demands are the most important factors. “We are looking for products that comply with local consumer demands. The philosophy of SPAR focuses on an excellent
price-to-value ratio. We aim to build long-term partnerships, to growth together with our supplier partners. Luckily, our model based on independent purchasing supports this.” The legal environment concerning retail trade in Hungary has seen several changes in the recent years. As Gabriella Heiszler explains, the current economic environment requires a great degree of flexibility. “We constantly try to communicate the opportunities and advantages offered by SPAR to the Hungarian companies in the food industry.” As for developments concerning the next few years, she says the company will continue its journey: “as top quality food retailers, we focus on providing the best possible service to our customers. We also continuously work to modernize our retail chain and to expand our range of products.”
Quality and supply For over a decade now, SPAR Hungary has had its own meat-processing plant in Bicske (W of Budapest). The CEO addressed the advantages of this facility by saying, the Regnum Meat Processing Plant and Training Center “meets our most important aims: steadily high quality, continuous supply of goods, as well as the development of own-brand cold cut products that enable customers to develop a bond to SPAR.” SPAR Hungary’s turnover in 2016 amounted to HUF 516.4 billion which is 5.2% higher compared to 2015. This year, SPAR will spend more than HUF 23 billion on the modernization of its retail network: the renovation of a total of 24 stores and the opening of five new stores are expected to be completed. By the end of 2016, the company operated 345 SPAR and City SPAR supermarkets and 32 INTERSPAR hypermarkets, and also had its logo on 116 franchise stores.
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WELCOMING, NATURAL AND RELAXING AUSTRIA IS THE NUMBER ONE FOREIGN DESTINATION FOR HUNGARIANS
CELEBRATING MARIA THERESA’S 300TH BIRTH ANNIVERSARY
This year is the 300th birth anniversary of Maria Theresa and thus, there are several exhibitions that deal with her life and work.
300 YEARS OF MARIA THERESA: ST ATEGIST - MOT E - EFO ME
An all-year destination According to Carmen Breuss-Schmid, climate change really challenges the ski areas that lie lower. “However, a distinction must be made between ski and winter tourism. According to a survey, Austria is market leader (with 56%) in winter sports. This does not mean that tourists will only ski in the country. In recent years, tourism in Austria has grown, although, there have been winters with less snow fall. In the meantime,
health tourism has grown steadily with less snow-covered settlements converting to wellness tourism, where tourists enjoy additional services besides skiing. So, towns and villages that are not located high enough are already thinking of what additional services they can offer to retain their guests.” In recent years, the number of tourists visiting cities has also increased. In addition, the large, high-lying ski areas that already have less snow are prepared for the milder winter with snow making capacity. “It is not certain, either, that guests like to see huge areas of snow that they cannot utilize. Many accommodations are specializing in families as they might only need a small area where the ski slopes lie. However, altitude is not the only consideration when establishing whether the landscape is snow-proof. There can be permanent snowy landscapes even under two thousand meters of altitude if the natural environment allows it: for example, if it is an area lying in a valley, more than average snow falls or the weather is colder One must cope with climate change in everyday life, and in parallel, one must adapt to it with the knowledge of its predictable effects kept in mind, but above all, adapt to the needs of the guests,” she adds.
MARIA THERESA AND THE ARTS
30 June - 5 November 2017 LOWER BELVEDERE For the first time, a show is devoted exclusively to the relationship between Maria Theresa and the visual arts, above all portrait painting, which served imperial prestige. Another topic of the exhibition is Maria Theresa's decision to house the imperial gallery in the Belvedere.
FOR THE ATTENTION OF HER MAJESTY: THE MEDALS OF MARIA THERESA
28 March 2017 - 18 February 2018 KUNSTHISTORISCHES MUSEUM VIENNA (ART HISTORY MUSEUM VIENNA) (COIN COLLECTION) Medals were one of the most important artistic mass media in the 18th century. They were described as "medallions and commemorative coins". The KHM holds a first-class collection of Maria Theresa's medals, which are shown in the exhibition.
EXTREMELY PERSONAL. PORCELAIN AND PRIVACY AT THE TIME OF MARIA THERESA
20 March - 7 October 2017 PORCELAIN MUSEUM IN THE AUGARTEN The exhibition takes a look at the ladies' apartments, the 'retreats' (toilets) and bedrooms at the time of Maria Theresa. At the time, the porcelain manufactory created many new objects in different shapes, which served a new standard of privacy.
CHURCH, CLOISTER, EM ESS MA IA THERESA AND SACRED AUSTRIA
4 March - 15 November 2017 KLOSTERNEUBURG MONASTERY The exhibition presents the relationship between the ruling house and the church, which reached its zenith at the time of Maria Theresa. In addition, the 300th birthday will be celebrated with a Baroque feast on 13 and 14 May 2017.
Corporate tourism
MARIA THERESA AND MUSIC
In the area of corporate incentive tourism, she says “Austria is a country well-accessible from the point of view of transport, which is extremely important for international events. It has adequate infrastructure, hotels and accompanying program options. It is possible to combine visiting cities and nature, while leisure programs – be it sports or culture – are easily accessible. In the conference and incentive area, experienced hosts await the guests. Incentive offices provide support not only for ideas, but also
MARIA THERESA TOUR IN SCHÖNBRUNN PALACE
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6 April - 23 June 2017 MUSIKVEREIN (exhibition room) Maria Theresa conducted and made music. She was the only Habsburger to also appear as an opera singer. As a princess of the realm, she laid new foundations for the role, status and perception of music. The exhibition documents her influence on music.
15 March - 29 November 2017 In anniversary year 2017 only, a special guided tour will be offered of the outstanding summer apartment commissioned by Maria Theresa and designed by Johann Wenzel Bergl on the ground floor of Schönbrunn Palace. The tour includes the Bergl Rooms, the Large and Small Gallery, the Carousel Room and the Ceremonial Hall on the principal floor.
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WERBUNG/SEBASTIAN STIPHOUT, ÖSTERREICH WERBUNG/JULIUS SILVER
for implementation. The capital, Vienna has a wide range of attractions from culture and sights to life style, gastronomy or wine. Business travelers have access to excellent infrastructure for seminars and conferences. Also, many international companies are located in Vienna, which also attracts many business visitors.” The number of Hungarian guest nights is on the increase in Austria. The office manager attributes this development to the fact that the economic foundations are on a sound footing. “Austria's image is very good, especially as a welcoming, active, natural, comfortable, family-friendly, joyful and relaxing country. The connection between Vienna and the western part of Austria is extremely good. The most prominent growth is seen in vacations by lakes in the summer.”
photos by ÖSTERREICH
The Austrian national tourist office (Österreich Werbung) in Budapest is headed by Carmen Breuss-Schmid who assumed the position in the summer of 2016. She explains to Diplomacy&Trade that the Budapest office is responsible for the Hungarian market, for conducting marketing activities in this country. And, “At the same time, I am also in charge of the Central-Eastern European region and I oversee, as regional leader, the development of Österreich Werbung’s regional strategy for nine countries.” When asked what areas of tourism Österreich Werbung focuses on in Hungary, she answered that “Österreich Werbung develops a separate market strategy for each country. For Hungarian tourists, Austria is the market leader in winter holidays and our objective is to maintain that. At the same time, we would like to position Austria as an individual, high quality summer destination, as well. Hungarians – for whom Austria is the number one foreign destination – are ranked 10th in terms of guest nights spent in Austria by foreign tourists. Since Hungarians like to travel, it is also a goal for us that they spend their short vacations in our country and we will increase the number of these ‘short holidays’ throughout the year."
15 March - 29 November 2017, four locations: • Imperial Furniture Collection: "Family and Legacy" At the center of this exhibition are the family politics of Maria Theresa, the numerous monuments erected in her name as well as her cultural legacy (above all Schönbrunn Palace). • Imperial Carriage Museum Vienna: "Woman Power and Joie de Vivre" Right next door to Schönbrunn Palace, which houses the living quarters of Maria Theresa, it's all about the impressive carriages and numerous festivals of the monarch. • Schloss Hof (Lower Austria): "Alliances and Feuds" The show ranges from the difficult assumption of office as the country's First Lady through to the many wars she waged to secure her power for the long term. • Niederweiden Palace (Lower Austria): "Modernization and Reforms" The focus is on Maria Theresa's many advisers, with whom she implemented reforms, as well as the introduction of general compulsory education.
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GRANDEUR ON A HUMAN SCALE
VIENNA RANKS HIGHEST FOR QUALITY OF LIVING FOR THE 8TH YEAR IN A ROW Despite increased political and financial volatility in Europe, many of its cities offer the world’s highest quality of living and remain attractive destinations for expanding business operations and sending expatriates on assignment. That is according to Mercer’s 19th annual Quality of Living survey. City infrastructure, ranked separately this year, plays an important role when multinationals decide where to establish locations abroad and send expatriate workers. Easy access to transportation, reliable electricity,
and drinkable water are all important considerations when determining hardship allowances based on differences between a given assignee’s home and host locations.
Viable business location “Economic instability, social unrest, and growing political upheaval all add to the complex challenge multinational companies face when analyzing quality of living for their expatriate workforce,” the Mercer report quotes Ilya Bonic, senior partner and president
of Mercer’s Career business. “For multinationals and governments it is vital to have quality of living information that is accurate, detailed, and reliable. It not only enables these employers to compensate employees appropriately, but it also provides a planning benchmark and insights into the often-sensitive operational environment that surrounds their workforce. “In uncertain times, organizations that plan to establish themselves and send staff to a new location should ensure they get a complete picture of the city, including its viability as a business location and its attractiveness to key talent,” he added.
Vienna on top The Austrian capital occupies first place for overall quality of living for the 8th year running, with the rest of the top-ten list mostly filled by European cities: Zurich is in second place, with Munich (4), Dusseldorf (6), Frankfurt (7), Geneva (8), Copenhagen (9), and Basel, a newcomer to the list, in 10th place. The only non-European cities in the top ten are Auckland (3) and Vancouver (5). The highest ranking cities in Asia and Latin America are Singapore (25) and Montevideo (79), respectively. Mercer’s survey also includes a city infrastructure ranking that assesses each city’s supply of electricity, drinking water, telephone and mail services, and public transportation as well as traffic congestion and the range of international flights available from local airports. Singapore tops the city infrastructure ranking, followed by Frankfurt and Munich both in 2nd place. Baghdad (230) and Port au Prince (231) rank last for city infrastructure.
Comprehensive survey Mercer’s authoritative survey is one of the world’s most comprehensive and is conducted annually. In addition to valuable data, Mercer’s Quality of Living surveys provide hardship premium recommendations for over 450 cities throughout the world; this year’s ranking includes 231 of these cities. The report summary says even with political and economic turbulence, Western European cities continue to enjoy some of the highest quality of living worldwide. Still in the top spot, Vienna is followed by Zurich (2), Munich (4), Dusseldorf (6), Frankfurt (7), Geneva (8), Copenhagen (9), and a newcomer to the list, Basel (10). In 69th place, Prague is the highest ranking city in Central and Eastern Europe, followed by Ljubljana (76) and Budapest (78). Most European cities remained stable in the ranking, with the exception of Brussels (27), dropping six places because of terrorism-related security issues, and Rome (57), down four places due to its waste-removal issues. Finally, Istanbul fell from 122nd to 133rd place as a result of the severe political turmoil in Turkey during the past year. The lowest ranking cities in Europe are St. Petersburg and Tirana (both ranked 176), along with Minsk (189).
MERCER EVALUATES LOCAL LIVING CONDITIONS IN MORE THAN 450 CITIES SURVEYED WORLDWIDE. LIVING CONDITIONS ARE ANALYZED ACCORDING TO 39 FACTORS, GROUPED IN 10 CATEGORIES 1. Political and social environment (political stability, crime, law enforcement, etc.). 2. Economic environment (currency exchange regulations, banking services). 3. Socio-cultural environment (media availability and censorship, limitations on personal freedom). 4. Medical and health considerations (medical supplies and services, infectious diseases, sewage, waste disposal, air pollution, etc.). 5. Schools and education (standards and availability of international schools). 6. Public services and transportation (electricity, water, public transportation, traffic congestion, etc.). 7. Recreation (restaurants, theatres, cinemas, sports and leisure, etc.). 8. Consumer goods (availability of food/daily consumption items, cars, etc.). 9. Housing (rental housing, household appliances, furniture, maintenance services). 10. Natural environment (climate, record of natural disasters). That is how the British newspaper 'The Telegraph' summarizes why the Austrian capital deserves the top place in the quality of life rankings: "the great achievement of Vienna is the way that it manages to keep its grandeur on a human scale. It has the charm, scale and good looks of an English cathedral city, and yet the history and traditions and sophistication of one of Europe’s great historic capitals." Diplomacy_Trade_Junior_Page_160x215_020617.indd 1 w w w . d t e u r o p e . c o m D I P L O M A C Y
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austria focus CARICATURING LIFE
REAL LIFE OFTEN EXCEEDS THE ABSURDITIES OF POLITICAL SATIRES
The 13th Budapest International Comics Festival was held this May. The best known guest of the event was from neighboring Austria, Leopold Maurer, who presented his first comic book published in Hungarian. In the book, entitled ‘Canal’, Maurer exposes the absurdities of a political system with a keen gaze and malicious humor. His concise, precise black-andwhite drawings illustrate the morality of a modern society that has long since ceased to be aware of its own alienation. The absurd story of this political satire takes place in an unnamed country. Speaking about the apropos for the story, Leopold
Maurer told Diplomacy&Trade during the festival that his father worked as a diplomat and was stationed in Trieste, Italy for six months. “There, he got a letter from someone suggesting that an old plan from the time of the Austro-Hungarian Monarchy should be realized: constructing a canal from the Adriatic port of Trieste up to the capital, Vienna. The idea was never put into practice but it kept fumbling in my mind until I put it into this comic book.” He added how astonished he was with the fact that, in the past couple of years, political reality seems to have produced things that are more absurd than the storywriters’ imagination.
“It is even going to a point that I never imagined. Sometimes, I think there is no point in creating political satires because reality is much better in this sense. If you take US President Trump, it seems to me that people have seen so many reality shows on TV where things are portrayed as simple and easily understood, while real life produces long and complicated processes
that many people find difficult to comprehend. That is why they fall for politicians offering simple and easy solutions.” Leopold Maurer does a lot of political cartoons. “It is perhaps because it is easier to make money with the portraying of topical, frequently changing issues than with long comic book stories. A political cartoon could be finished in an hour or
two and another one may be needed the next day as a new issue comes up,” he said. His next project is another comic book to be prepared with his wife. “It is a very complicated topic tied to the history of my own family. I am obviously not proud of the fact but my grandfather was a devoted Nazi and he never regretted that. Before he died, my wife
and I did an interview with him about World War II, about his Nazi ideas and all that. This is what we are going to use as a basis for our next comic book. The story also deals with the extremism one can experience among young people in several societies nowadays. It is a difficult theme and we are working hard on it,” Leopold Maurer concluded.
A SMART AND GREEN CITY
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for local residents as well as visitors and can easily be used to discover the city. 1,500 bicycles are offered at 120 stations. Vienna provides good conditions for walking, like green spaces as well as open and attractive zones in the streets – these are shown in a special map for pedestrians.”
Vienna has its own ‘Smart City Wien Framework Strategy’ with the overall objective of providing “the best quality of life for all inhabitants of Vienna, while minimizing the consumption of resources.” Smart City Wien looks at a crosssection of the city, covering all areas of life, work and leisure activities in equal measure, and includes everything from infrastructure, energy and mobility to all aspects of urban development. “Innovative technologies, systems and plans are the answer to the challenges of the future. Examples for projects are: the digitization strategy of the City of Vienna further increases the opportunity for the Viennese people to participate. With the new ‘Sag’s Wien’ application, people can report a concern, a danger point or a malfunction to the Vienna City Administration at any time and place in the city. The use of LED lamps for public lighting is seen as an opportunity for increased energy efficiency and energy savings. The main wastewater treatment plant is on the way to becoming energy selfsufficient. Through the energy optimizing sludge treatment (EOS) project the plant will be able J U N E
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to generate over 100% of the energy required for wastewater treatment beginning in 2020 by using sewage gas. The very well-equipped public transport in Vienna is important for the environmental goals and for the high quality of living in Vienna,” Zsuzsanna Berta highlights. Vienna and Budapest have always had a good relationship – even before the fall of the iron curtain. After 1989, the two cities intensified their co-operation and started to work together on disaster recovery. Year by year, co-operation was extended to other fields, such as environmental issues, waste management, urban development and water management. In 2002, the two cities signed a declaration on co-operation and in 2006, a long-term co-operation agreement. “Since then, Vienna and Budapest regularly exchange their know-how and experiences on current issues, such as sharing economy, smart city, climate change, traffic development or citizen participation in urban development projects. The two cities invite speakers to each other's conferences to learn from each other and to present their best practices to others,” she concludes.
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Since 2016, Eurocomm-PR has been responsible for the representation of Vienna in eight Central and Eastern European cities, including the Hungarian capital. As the head of the Budapest office, Zsuzsanna Berta tells Diplomacy&Trade, they keep Vienna informed about what is happening in its neighborhood and provide more detailed knowledge and in-sight information enabling Vienna to react in a timely manner to forthcoming challenges including environmental issues. In Vienna, city leaders encourage people to discover the city through environmental methods: on foot, by bike and with public transport. As Zsuzsanna Berta explains, “Vienna has a well-developed public transport network. Buses, trains, trams and underground lines will take you almost anywhere in the city in no time, at all. Vienna’s public transport (Wiener Linien) operates five underground lines (with a 24-hour service on weekends and public holidays), 29 tram and 127 bus lines, of which 24 are night lines. The vehicle fleet currently consists of over 500 tramcars and more than 450 buses. Vienna Citybikes are available
VARGA, LEOPOLD MAURER (ILLUSTRATION), NÓRA HALÁSZ
VIENNA AND BUDAPEST: GOOD RELATIONS AND INTENSIVE COOPERATION
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SUSTAINABLE IDEAS SHARED HUNGARIAN MUNICIPALITIES PUT INTO CONTACT WITH NORDIC EXPERTISE
The idea to host the Nordic Green Light environmental sustainability business forum in Budapest was not a concept ‘coming from a higher place’ but was conceived while some staff members of the Hungarian Ministry of Foreign Affairs and Trade had a conversation over coffee. Sharing that ‘secret’ – over a cup of coffee – with Diplomacy&Trade is one of the organizers of the conference, Pál Ságvári, Ambassador-atLarge for Energy Security at the Ministry of Foreign Affairs and Trade. “The Nordic lobby is quite strong among my colleagues – one of whom served at the Hungarian Embassy in Oslo, another in Helsinki. The topic of discussion we had was about how to approach energy and energy diplomacy issues in a novel way to create points of connection with the countries of Northern Europe. The basic motivation is to find a solution to the quite old problem of Hungary and the region: the chronic dependency on imported natural gas. We saw that the Nordic countries would be the most important and most ideal partners to launch this project,” the Ambassador-at-large says.
Four areas of discussion As he also explained in his keynote speech at the forum, this issue was raised with the representation offices of Denmark, Finland, Norway and Sweden in Budapest and the Embassy of Iceland in Vienna and they all had a very positive response. They had an interesting proposal that, while it is a good idea to have such cooperation among the government agencies of these countries and Hungary, the really beneficial thing would be to connect Nordic companies having the proper technology and expertise with the local governments in Hungary as they are the ones who eventually implement the government energy guidelines on a local level. “That is why we created four areas of discussion – green transportation, green district heating, sustainable building and smart cities – where the Nordic countries have great experience and where Hungarian municipalities are in need of sustainable solutions. We are very proud to say that the event surpassed the expectations with more than twenty Nordic firms and over a hundred Hungarian companies and 18 local governments represented. The forum ended with business blind dates organized by the National Trading House where the smart conference management system made it possible to bring together possible business partners – over a hundred such meetings took place. We were happy to see that all in all, the ‘less politics, more business’ concept worked just fine.”
photos by DÁVID
HARANGOZÓ
The Nordic expertise “I would like to take this opportunity to thank our Nordic friends for their help and express our appreciation, not only to the embassies, but also to the various chambers of commerce that assisted in establishing the business contacts. I believe that we all learned a lot at this conference. One can look at the Nordic countries as one bloc as they are very strong in the field of sustainability but it could also be seen at this event what can be learned from each of w w w . d t e u r o p e . c o m
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world in geothermic technology which – given Hungary’s geological conditions – can be applied in our country, as well. There are a lot of opportunities for Hungarian municipalities to replace their gas-powered district heating systems with alternatives based on the utilization of the geothermal assets. The process of surveying these opportunities have already begun. Apart from the actual technology, we can also utilize a financial system developed in Iceland for handling the risks of the exploration of geothermal assets. It is a kind of risk management mechanism, a financial fund that spreads the risk of finding or not finding a proper well when drilling down hundreds of meters. The Danes have specialized in sustainable buildings: the design side of construction that takes into account energy efficiency considerations. They already have several companies in this field of business in Hungary. They represent the concept that the viewpoints of energy efficiency are taken into consideration even from the planning phase. As far as the Swedes are concerned, they are strong in the telecom sector and they are in the forefront of smart technologies like smart cities and related developments.”
Feedback
these countries and where the desired points of connection can be found, Pál Ságvári highlights. He mentions that each of the Nordic countries have their specialties in the field of sustainable development. In summary, he says “the Finns are very strong in biomass, waste management and the circular economy. This is interesting for us as Hungary is especially rich in biomass – as is our region – and this can well be utilized as a source of renewable energy. The Finns helped us think ‘out of the box’ and use this resource in the framework of the circular economy with the different angles of waste management taken into consideration. The Norwegians have special expertise in green transportation as in the field of electro-mobility. They have
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introduced government measures to spread the use of hybrid and electric vehicles despite possessing one of the largest carbo-hydrate assets in the world. Iceland is leading the
The organizers of the Nordic Green Light environmental sustainability business forum sent out a questionnaire to the participants to find out how satisfied they were with the forum and what they learned at his event. The Ambassador-at-large points out that they were very happy about the encouraging words heard from the Nordic ambassadors and chambers of commerce. “For me, the most important feedback was that at these rapid business meetings that followed the speeches and roundtable discussions, none of the 25 tables remained vacant during the two hours of the session as the Nordic and Hungarian companies as well as the Hungarian local governments had continuous discussions. Obviously, this does not mean signing business contracts instantly but is a very efficient launching tool of possible partnerships and a good opportunity to get to know each other’s profiles.” It was interesting for him to hear from the CEO of one of the largest state-owned companies in Hungary at the end of the conference that he heard a couple of great ideas and he was sorry not to have brought along some of his colleagues to attend the forum. “What I can gather from Hungarian companies is that some talks are already under way with Nordic companies. What is more, I also know that there were already business contacts in the field of sustainable business between Nordic firms and big Hungarian companies before – contacts that this forum gave another impetus to. So, I believe it has been a successful event and, if there is need for a gathering of such profile, we look forward to organizing a similar conference in the future,” Pál Ságvári concludes.
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COMMON CHALLENGES AND OPPORTUNITIES NORWEGIAN FIRMS ENDEAVOR TO HAVE THE BEST SUSTAINABLE GUIDELINES
One of the keynote speakers of the Nordic Green Light business forum in the Hungarian capital was Elsbeth Tronstad, Norwegian State Secretary for EEA and EU Affairs, who represented the Norwegian Presidency of the Nordic Council of Ministers.
is in the ‘blue economy’, that is, everything from fish, offshore oil and gas production to shipbuilding and maritime transport. It is an important sector of the Norwegian economy where we see tremendous future growth potential, especially in partnership with many developing countries bordering the ocean.”
In a conversation with Diplomacy&Trade, she pointed out that “sustainable development has been on the agenda in Norway since the 1970s and ‘80s. You may perhaps remember former Prime Minister Gro Harlem Brundtland who chaired the World Committee on Environment and Development and presented the concept of sustainable development to the UN in 1987. Norwegian companies soon realized that they needed to adapt to the changing sentiment, to new thinking and to act in a sustainable way. There is close cooperation in this between the government and industry, including state companies and the private sector. The aim is, of course, to have sustainable business.”
Nordic cooperation Elsbeth Tronstad represents the Norwegian Presidency of the Nordic Council of Ministers, an intergovernmental body of the five Nordic countries. “The Nordic Council of Ministers has set green economy very high on the political and practical agenda. There are targeted action plans and projects in many areas, especially linked to the Nordic green growth initiative of 2015. This is a policy aimed at the joint utilization of Nordic strengths in a number of areas such as the testing of new energy solutions, promoting flexible consumption of energy, working together on education, training and research for green growth, and promoting new norms and standards. The initiative aims at working together for greener procurement in the public sector, developing new methods for waste treatment, promoting circular economy, the integration of environmental and climate considerations into development aid, and improving funding for green investment and green companies,” she pointed out.
Motivation
to adapt to; new standards or requirements, but in reality, there is no alternative. Our own experience shows that the challenges can be turned into profitable business as the green market grows. Effective environmental protection and company profit do not exclude each other!”
An ocean of resources This March, the Norwegian government issued a white paper on the importance of the oceans in Norwegian foreign and development policy. “I believe the world of oceans is going to be an important issue in the future – and not only
The European Economic Area (EEA) unites the 28 EU member states and the three EEA EFTA States (Iceland, Liechtenstein, and Norway) into an internal market governed by the same basic rules. The EEA and Norway Grants are the financial contributions of the three countries that go towards the reduction of economic and social disparities in the EEA region and the strengthening of bilateral relations with EU Member States in northern, central and southern Europe. Through these grants, Iceland, Liechtenstein and Norway also contribute to the strengthening of fundamental European values such as democracy, tolerance and the rule of law. During the interview with Diplomacy&Trade, the Norwegian State Secretary for EEA and EU Affairs stressed that “the EEA and Norway Grants are an important part of my government's active policies in Europe. For the current period of the EEA and Norway Grants (2014-2021) a total allocation of EUR 2.8 billion is (and will be) made available for cooperation with 15 EU countries. We have signed memoranda of understanding with five countries (Bulgaria, Malta, Romania, Slovakia and Estonia) and have the ambition to finalize negotiations with the others by the end of 2017. With Hungary, the negotiations are ongoing, but I can say that we will try to build on existing partnerships and results. Through these grants, we will focus on common European challenges, including issues like economic growth, innovation, energy, climate change and asylum/migration. We will also continue our strong support to the civil society by establishing separate NGO-funds in all beneficiary states.”
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Sustainable development is impossible without an environment-conscious population. Regarding how susceptible the Norwegian people are toward new green ideas, the State Secretary said she believes “we have a well informed and conscious population regarding environmental issues. But as always, the acceptance of the need to change behavior, like consumption patterns, etc. does not come easily. I think we have good dynamics with regard to the exchange of new ideas and knowledge in Norwegian society. Non-governmental organizations play an important role, even sometimes pioneering role in identifying problems or deficiencies and calling for action.” When asked about the importance of the Nordic Green Light gathering in Budapest, the first Hungarian-Nordic conference of its kind, the State Secretary said “we applaud the initiative and think that the fact that businesses and experts who hitherto did not know about each other have come together to discuss common challenges and opportunities, is important in itself. We cannot be sure what the conference and forum will result in, whether new businesses will open and prosper. However, we can be sure of one thing: contact will continue, ideas will be exchanged, and we – Hungary and the Nordic Region – will together become stronger and more competitive.”
for Norway, which has an ocean area of two million square kilometers under its resource jurisdiction. The driving force is, of course, a concern for the global marine environment. We see that the world's oceans are increasingly being polluted with chemicals, oil and plastics, including very harmful micro-plastics. Its resources are over-extended and global climate change is harming many vulnerable marine ecosystems. For instance, coral reefs, which are a source of great biodiversity but also an important source of income and food for millions. It seems to us that mankind's future to a large degree depends on a clean and healthy ocean,” she highlighted. The Norwegians have gained a lot of experience in successful and balanced management of ocean resources. The State Secretary explained that “it is only natural that we offer cooperation and take on more international responsibility when it comes to these matters. Oceans are an important food, minerals and energy basket which needs to be explored, but also managed intelligently and protected. As the world population is growing, we can’t afford not to look into what we can harvest from the ocean. In addition, a large degree of Norwegian business and industry J U N E
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New green ideas
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As to where the motivation comes from, she said demand for sustainable development by the global society is an encouragement also for Norwegian businesses. And the same can be seen in the whole Nordic region. “In general, I think the Nordic countries are good at drawing on society's total resources - political, economic, science and education, industry and so forth - in a systematic way to reach important sustainability goals. We are good at cooperating with each other and using a common pool of experience. Norway has excelled in making the minerals sector, energy industry, marine and maritime industries less polluting. We don't think we have solved all issues. Sustainable development is a complex matter aimed at a balanced and safe development of the whole society, with strong emphasis on the education, productivity and well-being of the individual person. I believe young Norwegians even tend to choose the company they wish to work for based on attention to environmental issues and they go to the ones whose values they like. And it works the other way around, too: companies endeavor to have the best sustainable guidelines in order to attract the most competent workforce. However, many business leaders don't like to be challenged or compelled
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nordic green light MERGING NORDIC AND HUNGARIAN STAKEHOLDERS
“IT IS CRUCIAL THAT WE CONTINUOUSLY LEARN FROM EACH OTHER”
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“It is well-known that Nordic countries have made great use of their R&D opportunities and that their international cooperation in this field is exemplary especially from the Central European point of view. Their early investments in new technologies are now clearly yielding results.” That is how Martina Makai, Deputy State Secretary for Green Economy Development and Climate Policy and Key Public Services at the Ministry of National Development explains to Diplomacy&Trade the reason for holding the Nordic Green Light business forum in the Hungarian capital. She mentions the development of green/smart cities as an example of what Hungary can learn from the Nordic countries. “One of the key issues in climate protection measures is to make more sustainable the living space of our urbanized communities. The Nordic countries have made great successes on the one hand with the sustainability focused re-organization of their transportation (see bicycle and electric car related developments); on the other hand, with their famous sustainable building, and construction activities. Nordic companies have forwardlooking examples in Hungary. Telenor‘s Building in Törökbálint, just outside Budapest, has one of Europe's largest heat pump heating and cooling systems. The Nokia Skypark office building (in Budapest) that was inaugurated in April 2017 has been awarded the Urban Land Institute's Global Awards for Excellence – that award is known as the Oscar for City and Real Estate Development for the state-of-the-art technology.”
Two sides of the coin Martina Makai was one of the keynote speakers at the forum. There, she reflected to the words of Wangari Muta Maathai, the internationally renowned Kenyan environmental activist and Nobel laureate who said that “the environment and the economy are really both two sides of the same coin. If we cannot sustain the environment, we cannot sustain ourselves.” According to Deputy State Secretary, the w w w . d t e u r o p e . c o m
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Nordic Green Light forum was a great opportunity to merge the Nordic-Hungarian stakeholders of the two-sided coin. “From a practical view, I highlighted in my speech firstly that Hungary was first to ratify the Paris Agreement within the European Union. Hungary is taking its lion’s share in reaching the European targets as we have reduced our emission by 45% compared to the base year (1985/87). The Government has also introduced clear legislations, strategies and programs to make the country more attractive and predictable for green investments. Secondly, that the renewable energy production support system (METÁR) has been renewed. It is a market based, premium system that builds on Hungarian and international experiences.”
Economy and environment One often hears that sustainability and caring for the environment are just drags for companies and they cost money, damaging profitability. In reaction to that, Martina Makai brings up two examples of how Hungarian policy serves the balance between the economy and the environment. “There is a significant corporate tax allowance that supports investments of companies in the field of energy efficiency in order to achieve a shortened, 5-6 year payback period. The tax allowance may amount to a total of 30% of the eligible costs of the investment, up to EUR 15 million. The other exemplary tool, introduced last year, - by the modification of the Act No. LVII of 2015 concerning energy efficiency - is the obligation of having an energy specialist referee in every high energy consuming economic organization. The task of the energy expert is to promote the introduction of energy efficiency approaches and energy-efficient behaviors in the operation and decisionmaking of the company. Based on international experiences, with this new tool, companies will be able to reach 1-3% energy saving annually.” Martina Makai has participated in sustainability programs in Italy and the United States. “I got
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a lot of inspiration in both places. I have learnt that well established policies and regional networking can greatly contribute to a more sustainable economic environment. Most importantly, these two international experiences have turned my attention to the complexity of the environment related developments: environment-protection tools, without respecting social and economic aspects can be very misleading, contra productive. All of the three (social, economic, environmental) aspects shall be considered and addressed in a holistic way when establishing sustainability aiming policy.”
Renewable energy projects As the person in charge of green economy development in the Hungarian government, the Deputy State Secretary highlights that “the green economy is a very complex notion as the ‘green’ aspect of it shall inherently permeate each and every segment of our economy. Taking the segment of renewable energies, these sources have a key role in climate mitigation actions; that is why Hungary is very proud of its related achievements. The EU's Renewable energy directive (2009) has set a binding target for Hungary: 13% final energy consumption from renewable sources by 2020. This was voluntarily increased to 14.65% in Hungary's Renewable Energy Action Plan. This ambitious target has almost been reached by Hungary, we are currently standing at 14.5%.” She adds that she would like to express her thanks for the financial support that has been provided under the EEA Financial Mechanism (2009-2014) in the field of renewable energies and energy efficiency enabling almost HUF 4 billion investments/developments. “We are very proud of the recently reached achievements: within one year, six schools have been renewed (applying green energy, becoming more energy efficient), one biogas plant has been installed, one geothermal related research has been carried out, and three trainings in Nordic countries have taken place.”
Fruitful cooperation Martina Makai fully agrees with the statement that it is essential to have an environmentconscious population. “Fortunately, as a historical heritage, the rural culture in Hungary still has ‘natural’ environmental protection roots: our grandfathers used the natural resources to the extent they really needed it. Additionally, young Hungarians are open to the new green vision that they have experienced overseas and seem to be ready to apply in their homeland. Therefore, Hungary can serve as a bridge in the field of energy-transition: integrating and balancing the development of East and West – tradition and innovation together. People are very keen on environmentally friendly, energysaving life. That's why the ‘Warmth of the Home Program’ has been so successful since September 2014. This program is contributing to the reduction of carbon dioxide emission, as well as energy efficiency improvement and energy savings by enabling e.g. purchase of new, energy efficient household appliances. Thanks to the nearly HUF 25 billion (EUR 80.5 million) revolving program series, almost 120,000 household energy efficiency related improvements can be reported.” As regards the importance of conferences like this Nordic Green Light gathering in disseminating good practices, the Deputy State Secretary points out that “it is crucial that we continuously learn from each other. We need to be familiar with each other's success in order to build fruitful international relationships and create future cooperation between the relevant stakeholders. At the same time, it is also essential to get to know each other’s pitfalls on the field of green economy developments. The Nordic Green Light forum has gathered many actors (policymakers, investors, companies) enabling and fostering the Nordic-Hungarian green economy cooperation.”
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Easy-to-use solutions At the forum, he took part at the panel discussion ‘Smart cities, smart solutions (energy storage, green electricity, IT solutions, digitalization, etc.). “Through examples of Telenor solutions, I demonstrated that there are so many different ways to make the lives of people in cities easier and better through technology. Telenor Hungary launched mobile parking in 2007 and today, half of the parking fees in Budapest are paid on mobile. During the past ten years, not only has the technological environment changed a lot, and the way mobile parking works has improved, but customer needs have also changed. People now require easy-to-use mobile solutions when parking; this is why we added this option into our Telenor Wallet application which includes several mobile payment solutions. Besides payment, easier access to parking spaces and therefore traffic management can also be supported by mobile technology. 4G technology and the use of smart sensors used in Telenor Norway’s smart parking solution enable drivers to find available parking lots. To carry out such solutions and make
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them economically viable, not only technology is required but also a certain economic environment, and of course it needs to be harmonized with customer needs,” Zoltán Takács highlights.
The environment-conscious firm The Nordic countries are well-known as pioneers in sustainable development. As a company of Nordic origin, Telenor Hungary is also doing its share in this area. The Vice President of Innovation points out that “as the country’s second largest mobile operator, we have a major economic, social and environmental impact which also implies responsibilities. We make an effort to minimize our environmental impact, reduce the use of natural resources, energy consumption and CO2 emissions. To name a few examples, our headquarters building in Törökbálint (SW of Budapest), the environmentally friendly Telenor House, is supplied with energy by one of Hungary’s largest geothermal heat pumps. The heat exchanger unit of the ventilation system reduces energy waste, while solar cells generate more than 60% of the energy required to produce hot water for people working in the building. Among the Hungarian mobile operators, Telenor was the first to start making official documents (such as Terms of Service, Pricing or Service Regulations) available only in electronic form in its stores to reduce paper consumption. Last year, we also reduced the number of printers used at our headquarters by 53%. To reduce transport-related air pollutant emissions, our car fleet includes several hybrid cars and an electric car, and we have also installed four electric car chargers that anyone can use in our parking lot.”
Accelerating new ideas
a balance between efficiency and environmental protection, the company’s Vice President of Innovation highlights that “for us, sustainability is not only a buzzword; it is an essential part of our operation, a framework that helps define how we work. Our sustainability goals are always core business related and encourage us to operate in an environmentally friendly and sustainable way in the long term. I do believe that integrating sustainable aspects into the corporate decisions and daily business has a positive effect on our profitability. We are providing digital services 24 hours a day, and as technological progress continuous, we have to use effective networking devices and solutions to be able to generate profit.”
Zoltán Takács was appointed over a year ago as VP in charge of innovation at Telenor Hungary. When speaking in terms of innovation, he stresses to Diplomacy&Trade that while previously providing voice calls and mobile data services was the major profile of telco companies, due to changing customer expectations, mobile service providers had to expand their activities to new areas. “We noticed this customer demand years ago and started to develop our own digital services such as the MyTV online television service or the Telenor Wallet mobile payment application. We aim to offer solutions that are easy to use, relevant to our customers, personalized to their needs and make their everyday life, work and studies easier. We are constantly looking for new areas and markets to enter. This is the reason we launched ‘Telenor Accelerate’ in 2016, our startup accelerator program to find new talented startups. With their innovative ability, agility and digital knowledge, startups can support a large company like ours, while we can share our large customer base, many years of experience and our significant capital with them. Telenor Accelerate attracted a high number of applications from 143 digital start-ups of which 5 winners were selected by a jury. They have participated in intensive training courses, workshops and one-on-one sessions with their mentors in order to promote their professional growth and help them establish partner networks.”
Easy solutions Sustainable development is impossible without an environment-conscious population. Zoltán Takács believes that Hungarians are open to green ideas – “if we provide them solutions that they can easily integrate into their lives. For example LED lights became hugely popular in Hungary, as manufactures started selling them with traditional sockets, thus old bulbs can be easily replaced with them. We need to offer similarly simple and accessible solutions: I don’t think our customers miss their monthly telephone bill printed on paper because they easily can pay it online without going to the post office.” In evaluation of the Nordic Green Light business forum this May, he points out that “events like this provide unique opportunities to exchange best practices and to discuss how we can improve current processes or even find out about new initiatives that support companies and public institutions in being more sustainable.”
Sustainability is core business One can often hear that sustainability and caring for the environment are just drags for companies and they cost money, damaging profitability. Regarding how Telenor Hungary manages to have J U N E
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“Being part of the Norwegian Telenor Group, Telenor Hungary has strong Scandinavian roots. Therefore, it was obvious for us to participate at the Nordic Green Light forum to share and exchange thoughts and experiences on sustainability which is at the heart of the corporate culture, governance and business strategy of both Telenor Group and Telenor Hungary,” Zoltán Takács, Vice President of Innovation at Telenor Hungary explains to Diplomacy&Trade.
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GREEN MOBILE
TELENOR HUNGARY CHERISHES NORDIC TRADITIONS OF SUSTAINABILITY
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MUNICIPALITY EXPERIENCE NGL FORUM SERVES THE PURPOSE OF SUSTAINABLE DEVELOPMENT FOR THE PEOPLE
Diplomacy&Trade asked the representatives of two municipalities present at the Nordic Green Light forum about their impressions. Miskolc The Deputy Mayor of the northeastern Hungarian city of Miskolc, Péter Pfliegler says that “as our city is committed to the Green City Movement (which we have also joined) and most of our efforts are aimed to create a Smart City and thus, create a livable, environmentally sustainable settlement that puts less burden on it environment, I anticipated to hear useful governmental information and learn of successful, good examples at the event.” As to best practices, ideas heard at the forum that decision-makers might be able to use at the local government level, the Deputy Mayor points out that it is good to know that Miskolc's good practices and projects in the planning phase were successful elsewhere or others were planning similar projects. “I found the lecture on financial difficulties and their bridging informative. In the Green Transport section, there was a lot of interesting information and questions/answers about both electric cars and other alternative drives. It is important for every local government to know that the central government also supports
In summary, he adds that “only those can gather useful experience who turn with interest towards what they have heard and seen. The themes of the lectures, the good examples presented, the significant number of visitors at the City of Miskolc table in the afternoon – these have all proven that Miskolc is on the right track. On the other hand, the event provided new information (content and names, contacts) for further opportunities. Miskolc's green and smart philosophy, our accession to the Covenant of Mayors for Climate & Energy movement, our projects serve the purpose of sustainable development for the residents of Miskolc and its future citizens!”
Hegyvidék the implementation of smart and green ideas.” Regarding the experience gathered at the Nordic Green Light Forum and the usefulness of taking part there, Péter Pfliegler is of the view that “although, we had earlier knowledge of this, the concentrated presentation of environmentally friendly technologies and methods in the Nordic countries was important for all participants. In addition to the above, the usefulness of the participation was strengthened by the organization of the B2B meeting. There was considerable interest in things we do in Miskolc.”
fully met. A major effort by our local government is to strengthen international relations and familiarize ourselves with international experience so that we can incorporate them into local government planning and implementation. He adds that the experience gained at the event is still being processed, and preparations for decisions will cover a longer period. “The most important issue is that of developing a smart city, in which we gained new experiences at this forum, experiences which we incorporate into our own long-term strategy.” All in all, Lajos Kovács is convinced that “in the course of deepening relationships, we will be able to enjoy the more concrete results of the event in the future.”
The Deputy Mayor of Budapest’s 12th district (known as Hegyvidék, that is, ‘Highlands’), Lajos Kovács (who is also the President of the Association of Climate-Friendly Municipalities) says he saw the Nordic Green Light Forum as a great opportunity where the Hungarian ‘green energy’, sustainable aspirations and opportunities could be presented to the representatives of the Nordic countries who are much more ahead of us in this issue, as well as an excellent opportunity to acquire new knowledge and build relationships. These expectations have been
HEAT HELP FROM ICELAND GEOTHERMAL BASED DISTRICT HEATING IN SOUTHERN HUNGARY
developed because of government assistance through an Energy Fund that Orkustofnun has managed for 50 years issuing close to 500 loans for drilling and installations of district heating systems. “This has saved Iceland in times of need when our economy has been weak and is one of the factors that explains how quickly Iceland recovered after the financial crisis,” Jónas Ketilsson concludes.
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The Kiskunhalas project
The Embassy of Iceland in Vienna, in conjunction with the Budapest representations of the other Nordic countries, was a sponsor of the Nordic Green Light environmental sustainability business forum in the Hungarian capital in May. As Jónas Ketilsson, Senior Manager at the Deputy Direction General of the National Energy Authority ‘Orkustofnun’ tells Diplomacy&Trade, Iceland and Hungary collaborate in developing geothermal based district heating. Through funding of EEA Grants, drilling has already taken place in Kiskunhalas, south-central Hungary. “This collaboration reduces social and economic disparities and reduces carbon emissions by using a domestic resource under the ground instead of w w w . d t e u r o p e . c o m
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importing fossil fuels,” he explains, adding that in Iceland, the average family spends less than one percentage of their income on heating their home year round. This is almost tenfold in Hungary even though Hungarians don't have to heat their homes as much or as long as Icelanders. By using a local resource offering a reliable and clean energy source, Hungary can gain energy independence. He highlights that “the collaboration between Iceland and Hungary has been positive. One of the largest engineering firms in Iceland, Mannvit, has a subsidiary in Budapest that assists local
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governments and companies develop geothermal based district heating systems, with the use of knowledge from Iceland's positive history.” According to Jónas Ketilsson, “considering global warming, all countries need to increase their use of renewable energy sources. In Iceland, we have a unique knowledge of the utilization of geothermal energy. If we can help to make other countries see this potential, it will be an achievement for us.” Today 97% of all heating in Iceland is provided by geothermal through district heating. This
Reporting this April on Iceland's contribution to energy efficiency, the largest circulation Icelandic newspaper Fréttablaðið mentioned the geothermal heat utilization in the district heating system of Kiskunhalas as an example for EEA Grants supporting various geothermal projects in southern and eastern Europe. According to EU-FIRE Ltd., the main contractor of the project, in Phase 1 the geothermal fluid is extracted from the production well at an outflow temperature of 115 degrees Celsius and a maximum outflow velocity of 40 l/s. With the drilling of the first geothermal well, the geological and drilling risks of the project will be passed and the market financing feasibility of the project ensured. Following the confirmation of the forecasted reservoir parameters, the remainder of the project may be financed by financial or professional investors from the market, and/ or by bank loans. Phase 1 consists of the preparation and drilling of the first well and conducting the well tests required to confirm the parameters of the reservoir. Following a successful well drilling, the well pump will be installed. After the drilling or purchasing of the reinjection well, construction of the system above the surface, Phase 2 begins.
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SUSTAINABILITY IS THE CORE OF BUSINESS FLEXIBILITY AND STABILITY COUNT IN THE FUTURE LABOR MARKET
The issues and challenges of a transforming employment market were discussed at the business breakfast and Action2020 Forum organized by the Business Council for Sustainable Development in Hungary (BCSDH) this April. The keynote speaker of the event was Annemarie Muntz, the President of the World Employment Confederation (WEC).
issues. As I can see that is mostly the case. One of the issues we have all over Europe – so, Hungary is not different in that aspect – is that there are fraudulent agencies. In Holland, we also have a few fraudulent agencies because it is so easy to make easy money in this field: you don’t pay taxes and you already have a very high income. So, delivering illegal work, black work, gray work is something that governments focus on. In Brussels, there is a platform for fighting undeclared work. It is some something that all players should make a coordinated effort against,” the WEC President added. Regarding east-central European workers, Annemarie Muntz mentioned the example of Holland and the about 100,000 Polish people working there. “It is a huge number but these people are very much needed and respected there. In our sector, we concluded a collective labor agreement, a special paragraph of how to offer decent transportation, decent housing, decent labor conditions and wages – as well as how to supervise all this. That is because we saw the government not controlling the issue. We believe that if governments put regulations in place, they should also enforce them. We are there to help them support them because we are the eyes and the ears but they should enforce the regulations.”
After her lecture, Diplomacy&Trade talked to Annemarie Muntz, who is an acknowledged expert in the field of employment and is also the Director of Group Public Affairs at Randstad Holding. When asked about the main aims and activities of the World Employment Confederation, she explained that the WEC represents the private employment agencies globally and in Europe. “We represent those who offer services in the fields of staffing agency work, recruitment, managed services, etc., so, all in all, what is happening in the world of intermediation of work. We have members in 50 countries across the globe. They are the national federations, which represent such employment agencies (the one in Hungary, too), and we also have eight of the largest global HR services solutions companies as members. We also represent their interests.”
Responsibility or unfair treatment
Regarding whether WEC members see a problem between sustainability and profitability, or whether workplaces can be sustainable and profitable at the same time, Annemarie Muntz is of the view that “sustainability, when the term was first minted, was thought of by companies
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Annemarie Muntz pointed out in her well-received speech at the business breakfast of BCSDH that “we are all looking for security in work and income. At the same time, we need flexibility in terms of when, where and how we work. This means that what the inclusive and competitive labor market workers and business want for our future should be agile and adaptable. By combining a variety of decent employment contracts with modern social security and accessible employability schemes, we can do that. We provide sustainable prosperity for all.” Her lecture was followed by workshops which were designed to promote real steps towards creating sustainable employment. The Business Council for Sustainable Development in Hungary is the national partner organization of the World Business Council for Sustainable Development (WBCSD), a CEO-led business organization founded in 1992. It is located in Switzerland, working with more than 200 corporations in over 70 countries all over the world and dealing exclusively with business and sustainable development. BCSD Hungary was founded in 2007. It has 79 corporate and two individual members. The corporate members contribute 30% of Hungary’s GDP.
and some societies as volunteerism. This is not the case, sustainability is the core of a business and if it is not linked to the core of your business, in our case, providing decent work, it does not serve its purpose. To us, at Randstad, sustainability means having a decent income, having a decent contract, providing work to a diverse and inclusive workforce, and we measure that in our sustainability framework. However, it is not volunteerism – doing good is a different program. It is really core business. What we do in terms of sustainability is that we also look at core business as the best match for the best job.” However, she added that they also see that some people are left outside the labor market, “which is not good for the labor market. It is not inclusive; it is not sustainable. So, together with those people as well as clients, government, public employment agencies, we look at special programs to see what the capabilities, skills of these people are, how to integrate into the labor market. We have such programs in dozens of countries, they are linked to core business but they are something extra.”
2017 Economic Report The World Employment Confederation has issued its 2017 Economic Report under the title ’Enabling work, adaptation, security and prosperity’. “It gives you an insight into all the facts, figures of our services like staffing, what we do in terms of outplacement or outsourcing. For instance, it shows that the penetration rate of the agency work in Hungary is relatively high (2.7%), putting Hungary in 6th place among the 35 countries listed, behind the United Kingdom, Australia, New Zealand, The Netherlands and Luxembourg. However, it also has a more political stance because what we try to do with the report is showcase why we enable work and how we create work, how we create more security. It is also how we create more prosperity because by being there as legitimate employers,” the WEC President concluded.
The situation in Hungary and East Central Europe Several corporate members of WEC are present in Hungary, too. “They are members of the local federation, which has been around for a long time and who should make sure that all the rules and regulations were complied with and that they are a business partner of the government, that they are active on the right
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Sustainability and/or profitability?
SECURITY IN WORK AND INCOME
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As to the ways WEC supports sustainable development goals, the confederation’s president pointed out that “sustainable development goals are still quite new. There are 17 of them, including No. 8, which says we should have decent work for all or No. 5, which says let’s decrease inequality or another, which says let’s decrease poverty. We think that with what we do in the world of work, we support those goals because we offer decent work to our people. When we offer agency work, we actually employ people. If I take Randstad, for instance, it employs more than 600,000 people worldwide, thus, we are a mega employer. If you look at our industry, we are probably one of the world’s largest employers. So, we have a huge responsibility for those workers we employ in agency work, and we also have a huge responsibility for those workers we place via direct recruitment on jobs with our clients. Those jobs need to be decent, we need to comply with all the rules and regulations. We also want to make sure that the workers return to us, so, we need to make them happy, passionate. We need to place them in jobs that fit their capabilities.” However, she stressed that “we see in our world a lot of rogue agencies and a lot of unlawful practices. Those are our worst competitors. What we do is offer decent jobs, what they do is offer unfair treatment.”
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MOBILIZING HUMAN CAPITAL GLOBALLY
“THERE IS NOT JUST ONE WAY TO DO GREAT WORK!”
kinds of impact: positive, negative, neutral.” The GE Hungary President adds that a couple of months ago, they started what he calls “simplification teams”, employees who are very strong in processes, in lean and project management, in order to define which potential SDGs the company should focus its efforts on. “We pick the ones most relevant for Hungary and then we select the ones where companies like GE can add value. If you take SDG No. 2, for instance, I would think of diversity, which is very much in line with our company policy when it comes to female talent but also when it comes to minorities that basically get a chance to compete successfully in a global environment. The other issue is education. While Hungary does not have the need for basic education, as literacy is close to 100% and all children go to school, we believe we can add a value when it comes to digital literacy and future technology that determine the success of the company, the country and obviously of the individuals in Hungary in 5-10 years.”
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Interconnected goals
Despite the fact that more and more Hungarian companies recognize the role of volunteer programs in increasing employee engagement and improving the workplace atmosphere, only 30% of larger companies, and one in ten of all small and medium enterprises in Hungary carry out charitable, social or social support programs based on the voluntary participation of their staff. In order to increase the adoption of corporate volunteer programs, ‘Volunteering Hungary – Center for Social Innovation’ (ÖKA) and GE, together with five other large companies, have jointly launched the UN-chartered IMPACT 2030 initiative in Hungary this year. The first honorary chairman of IMPACT 2030’s Hungarian leadership is Joerg Bauer, the President of GE Hungary. This global initiative supports the UN's Sustainable Development Goals (SDGs) with a corporate volunteer toolkit. . The IMPACT 2030 Opening Conference in Hungary was held in Budapest this May, discussions involved how to leverage the instruments made accessible to volunteers, in order to support the realization of the SDGs within the Hungarian context.
Corporates need to have a voice IMPACT 2030 is a global coalition of stakeholders led by the private sector to mobilize employees in corporate volunteer efforts to achieve the United Nations SDGs. As the Executive Director w w w . d t e u r o p e . c o m
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of the organization, Dr. Tauni Lanier tells Diplomacy&Trade, IMPACT 2030 was born out of the fact that people saw the UN’s millennium development goals (MDGs) as ‘all or nothing’ and companies thought they either need to address all of them or none of them. “I believe the beauty of the SDGs is that firms can pick any of them and decide where they wish to put their resources. The previous Secretary General of the United Nations, Ban Ki-moon said that corporates need to have a voice at the table. When we’re talking about capacity and resources to address the SDGs, they are in the trillions of dollars. Human capacity is an asset that needs to be addressed, a huge asset if we consider that within IMPACT 2030, we have companies in 150 countries with five million volunteers.” Joerg Bauer highlights that in the past five years, they have supported a lot of volunteer activities at GE Hungary from collections by staff (giving money) to hands-on volunteering (building playgrounds for children, renovating social buildings) and “all the way to ‘skill-based volunteerism’ (or pro bono volunteerism). The idea of the latter is that a firm basically works with an NGO or a charity organization within the field of its expertise. So, if you are an IT professional or a lawyer, you help in that area, combining forces with an NGO. The volunteer organization ÖKA is an intermediary bringing together NGOs and companies and help to structure the kinds of skills are needed for
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specific projects. For us, IMPACT 2030 is a logical next step. Considering GE’s charitable activities, some of them are global GE initiatives and some of them are local initiatives of the employees. We found IMPACT 2030 a good umbrella to connect such initiatives. Also, we feel we can do more if we partner with other companies and organizations that have the same goals. One needs a team of teams, a network of networks to bring together employees of different companies that might even be competitors but can still work on a completely neutral and beneficial cause.”
Collaborations and partnerships As to how the motto ‘Mobilizing human capital globally to advance the sustainable development goals’ is put into practice, Tauni Lanier explains that “at IMPACT 2030, last year was about ‘this is what we would like to do’ and this year, we are moving to ‘this is what we are doing’. We are banging the drum about collaborations and partnerships. It is all about communication, about how knowledge is shared. If two or more companies come together and say they want to magnify what they are doing by working with somebody else, we are there to help. We have a great portfolio of different action teams growing every day from Madrid to Rwanda, from Los Angeles to Liverpool. So, there is not just one way to do great work! Secondly, it is all about measurement, measuring corporate volunteer’s impact on SDGs – all
Tauni Lanier finds it important to mention that the sustainable development goals are interconnected. “If you work on education or gender diversity, you’ll see a significant impact on nutrition, have less poverty, children going to school, etc. If you make sure that the genders are equalized, the institutions are getting stronger, you see secondary and tertiary effects – impact that we can also measure. I believe that each company has its mission, they like to focus on one specific SDG but you must not forget that if you get that right, there are probably two or three that can also experience a positive impact.” She emphasizes that “IMPACT 2030 is about supporting the people, supporting our partners. We asked GE to join us and tell us what they would like to do; we give them a portfolio of what we are already doing and we share knowledge. It is a partnership organization: we do not create the programs ourselves, we support them to make sure that our partners are successful at this.”
Corporate ambassadors Regarding the opening conference, Joerg Bauer says that “we see ourselves as corporate ambassadors for volunteerism. The idea is that we encourage other companies to follow. There are a lot of activities in Hungary and a lot of good ideas. Volunteerism is one of those things where you can offer the opportunity to share and if you share, you can get back more than you give. The whole purpose of this first IMPACT 2030 conference was to kick off this movement in Hungary. We had the representatives of around 50 companies present. They were informed about the background of this initiative. We also started the work of engaging them, picking some of the SDGs to focus on, working with different companies to define what could be done in it for Hungary, what concrete actions should be taken. This is the beginning of a longer journey. It is still more than a dozen years until 2030 but I’m quite confident that we have started something important. What we would like to do – and this is again where we see ourselves as ambassadors – is to engage more companies, SMEs into corporate volunteer and remove, as much as possible, any kind of barriers – let it be real or attitudinal – to get employees engage in volunteer activities.”
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FINANCIAL GATEWAY TO THE REGION
English Law The establishment of the AIFC, will mark the first time in a post-Soviet country that the principles of English Law apply. “For us, it is important to be a part of the global financial system. There are many risks that foreign investors, especially Western ones, associate with postSoviet institutions. This is largely due to a lack of familiarity and a non-accurate perception of Kazakhstan,” the Governor points out. He stresses that “as we are strengthening our institutions, we want to use the best practices. Out of the 13 most prominent global financial centers, ten are working based on the principles of common law. Investors are used to these ‘rules of game’, that is why we see support and appraisal for our efforts wherever we go. We pay more attention to shareholders and investors’ rights; we provide flexible regulation for new tech solutions; we are even inviting globallyrecognized judges to avoid any misperceptions.” Additionally, he says, “this also gives us a unique opportunity, since there is no other place in the vast region of Central Asia &
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Eastern Europe with such legal and regulatory framework – we also count it as an advantage.”
Studying examples As regards the benchmark for AIFC, Kairat Kelimbetov says “it would be myopic to copy someone else’s model and try to emulate New York and London of the 1970s or Dubai of 2000s. Having said that, we have studied the examples of Singapore, Hong Kong, Dubai and many other financial centers. Dubai IFC, for instance, provides a good institutional framework: we followed their model in creating an independent legal and regulatory framework. With regards to the development of new instruments, so-called, fintech, we follow the recent advances in London, Singapore, Hong Kong, and Abu Dhabi, but also less developed countries, which have made recent breakthroughs, like Kenya and Myanmar. But in terms of the overall development of the local financial sector, we chose our own path: we have made significant progress on creating the trading platform, on training local professionals, on creating favorable business conditions, etc.” A new financial center needs to be very attractive to establish a client base. The governor believes that what makes AIFC attractive and interesting are the legislation: investor and shareholder rights protection and flexible regulation. “But we are also trying to facilitate business in Astana by providing a liberal visa and labor regime, in fact, we are creating a special institution – Visa Center –, which
company, and uranium producer (which, by the way, is the largest in the world). At the same time, global asset managers will be competing for the access to local sovereign funds, which exceed USD 100 billion combined. Of course, part of these assets will be managed in-house, but Kazakhstan will need global expertise in investing in equity and alternative instruments. AIFC will also serve as the gateway to the whole region, in particular, the Eurasian Economic Union, and will serve as a delivery unit for the ‘One Belt, One Road’ program supported by Chinese government and financial institutions. It has already attracted new infrastructure investments in the country and now, with establishment of AIFC, investment will be facilitated. This project needs a local finance office, and Astana fits this role perfectly, this is why the importance of the local capital market is highlighted,” Kairat Kelimbetov explains. “We see the increasing demand for the Islamic financial instruments. The local market – Kazakh and that of Russia and other neighboring countries – has a significant number of wealthy individuals, who need to manage their portfolios. With the tightening of international regulations, there is a demand for a local private banking services center. Last, but certainly not the least, there is a great demand for new tech solutions, which calls for the support of this industry: we are already working with a number of institutions on creating the right fintech ecosystem,” he adds.
works as a one-stop shop for all international participants of the AIFC. The center participants will also receive corporate and personal tax exemptions for 50 years, however, those tax rates are already quite low in Kazakhstan.” Another important factor he mentions is the availability of cheap and qualified professional resources. “Kazakhstan’s government has already invested in educating thousands of young professionals, at the AIFC, we also help them acquire specific skills that are demanded in the financial sector. We have a special training arm which also will serve as the HR nerve center for the AIFC.”
Key pillars The key pillars of the AIFC activity are capital markets, asset management, private banking, Islamic finance, financial technologies and green finance. “There are two main factors behind the selection of our directions of development or pillars: the importance for the advancement of our financial sector and the specific demand for these services on our market. We are targeting specific anchor projects, which will drive the development of these pillars. For example, Astana International Exchange will serve as a platform for the large privatization program of the state-owned companies. We are talking about the largest companies in Samruk-Kazyna Sovereign Wealth Fund: starting with Kazakhstan’s national oil and gas company, railways operator, postal operation, air carrier, power producer, mining J U N E
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The recently established Astana International Financial Center (AIFC) in the capital of Kazakhstan is scheduled to be fully operational as of January 1, 2018. As the Governor of the institution, Kairat Kelimbetov explains to Diplomacy&Trade the idea behind establishing this new financial center in Eurasia, “AIFC is an important part of country-wide economic and institutional reforms. We are establishing brand new institutions to further strengthen the rule of law and governance. Secondly, the idea is to give momentum to the non-banking financial sector and create new instruments to finance the economy. This will complement the existing banking financial sector, which is also going through the reforms in our country.” At the same time, he says, Kazakhstan now has a rare opportunity to become a significant regional player. “I firmly believe that the timing for this new ambitious project is just right: China is expanding westward, the Russian economy is still recovering from recent recession and economic sanctions, global markets are experiencing low and even negative interest rates, while Kazakhstan, itself, is abandoning its old model and launching new reforms.” Therefore, AIFC’s formal objectives include promotion in attracting investment into the Kazakh economy through enabling environment in the field of financial services; development of a stocks and bonds market in the Republic of Kazakhstan with further integration into the international capital market; improvement of the insurance market, banking services and Islamic finance in the country. “Having said that, we also hope to cultivate the best climate and expertise to serve as the financial gateway for the whole region,” he adds.
HARANGOZÓ
KAZAKHSTAN CHOOSES OWN PATH TO LAUNCH AMBITIOUS PROJECT
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SPORTY. COMFORTABLE. STYLISH.
ŠKODA SUPERB SPORTLINE ŠKODA Superb Sportline is the fruit of a perfect harmony between the stylishness of Czech design and the dynamic of sportiness. This model of the award-winning Superb range has brought the iconic design of our flagship up to a new level.
www.skoda.hu
The combined average consumption of the ŠKODA Superb models are: 4.0 – 5.8 l/100 km; CO2 emissions: 105 – 130 g/km.
The values of fuel consumption and CO2 emissions have been determined in accordance with the effective version of the required standards (Regulation (EC) No 715/2007). These figures are provided for comparison with other models and may not reflect the vehicle’s real fuel consumption and harmful emissions. Image shown is for illustration purpose only.
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analysis NORTH KOREA’S LONG-RANGE MISSILE CAPABILITY IN SIGHT
BY TAMÁS MAGYARICS
Though climate change is a fashionable topic nowadays, the current piece is not about high or low temperatures at various locations in the world. In fact, the place under discussion is known for extremely cold winters. However, it has managed to get on top of the list of strategic and geopolitical hot spots. North Korea has launched altogether seven missiles this year. The latest one in the middle of May, a medium-range one, again concentrated the attention of its neighbors, the United States, Russia, and the world in general to the extremely unpredictable rule of the North Korean dictator, Kim Jong Un. Experts in the major capitals (and perhaps in the UN, too) are trying to figure out what the real intentions of Pyongyang are. It seems that Kim Jong Un has succeeded even in getting on the nerves of the Chinese leaders, as well, despite the seemingly inexhaustible amount of toleration and patience Beijing has shown towards the North Koreans over the past decades. It goes without saying, that China has good Realpolitik cause to tolerate the antics of the Kim family, but now Xi Jinping was just hosting a global forum to give a boost to China’s ambitious ’One Belt, One Road’ vision when the North Korean missile was launched on May 14th. The Chinese leader ’was not amused’.
No good option for China The launches are supposed to send various messages to various places. The message to Beijing may be a defiance against some recent
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THE HOTTEST SPOT IN THE WORLD?
Chinese moves, which put new economic pressures on the ’Hermit Kingdom’ by cutting back energy exports to North Korea. It is true that the real squeeze would be stopping the flow of oil to North Korea, and the Chinese has so far refrained from this ’nuclear’ option. The recent missile launch may have also wanted to indicate that North Korea is not afraid of challenging China. At first sight, it seems to be extremely reckless, but in fact, Pyongyang has a point there. No matter what headaches Kim Jong Un is causing to the Chinese leaders, they are very much aware of the value of a ’Communist’ North Korea along their northeastern borders. A collapse of North Korea and an eventual peaceful unification of the Korean peninsula under Seoul’s leadership is not really an option for Beijing, partly because it would mean an increased American military presence in the neighborhood, and partly because it would mean the loss of a precious buffer zone. Another possibility is a war, which is likely to result in the defeat of the North. Again, from a Chinese point of view, it is nightmarish on at least three accounts. A war along its borders is, by definition, destabilizing to the region. Second, a massive wave of refugees from North Korea may threaten social stability within China, as well. Third, the end-result is likely to be a unified Korea but with even larger U.S. military presence than otherwise. In short, Beijing has a vested interest in prolonging the current situation with ideally increased leverage over Pyongyang because after a certain point, countries which are in the bull’s eye of the North Korean military strategists, among them Japan, may come to the conclusion that the only way to successfully
Zoellick, publicly urged China to become a ‘responsible stakeholder’), then Beijing should start demonstrating its commitment and clout by reining in North Korea. It is not known what transpired between Donald J. Trump and Xi Jinping at Mar-a-Lago, but it is not absolutely unlikely that the Chinese leader came away with the feeling that President Trump is more unpredictable than his predecessors, so, China had better take the North Korean solution more seriously lest Washington does it by force.
defend themselves against potential North Korean provocations is arms buildup. An arms race, especially if it means the development of nuclear capabilities by some countries in the region, is not what the Chinese would welcome.
Messages The recent missile launch may have been a warning to the newly elected South Korean President, too. Moon Jae-in is not in an enviable situation. He was quite critical of the deployment of American THAAD anti-missile systems in South Korea partly because the Chinese suspected that the U.S. military hardware may also be used against them, and Seoul has always tried to avoid arousing the anger of the giant neighbor. In reality, the increased North Korean military activity may be an answer to the THAAD systems: the missile defense can be countered by a large number of offensive missile, so testing them has become more urgent than before. The missile launches must also be messages to the new American President. President Bill Clinton, George W. Bush and Barack Obama were unable to solve the North Korean question, though, the key to the solution is, in reality, in the hands of the Chinese. The six-party format of the diplomatic efforts did not bring about the desired breakthrough, in large part because the North Koreans would like bilateral negotiations with the Americans, which Washington rejects out of hand. The American Presidents invariably expect the Chinese to be more forceful with the North Koreans. They also believe that if China were to assume a large role in world affairs (in 2005, Deputy Secretary of State Robert J U N E
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Window of vulnerability Time, however, is not on the side of the countries facing North Korea from one point of view. It has become clear by now that sanctions are not able to bring down the regime. Diplomatic isolation does not work either. Meanwhile, North Korea has been gradually improving its military capabilities. As things stand at the moment, South Korea is practically a hostage as its northern neighbor is able to inflict almost unbearable damage on it both in lives and material. Pyongyang is bound to acquire long-range missile capability with its intensive missile testing program sooner or later; currently, with its medium-range missile it can reach Japan and Guam, but an ICBM capability would make it possible for the North Koreans to reach Alaska and the west coast of the U.S., alike. Of course, any nuclear parity is out of question, but the opening of a new window of vulnerability for the U.S. would definitely change the dynamics of the geopolitics in the Far Eastern and Pacific region. Tamás Magyarics is a foreign policy analyst
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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
A COLLECTION OF IMPRESSIONS A BOOK PUBLISHED ON BUDAPEST’S FAMOUS AVENUE, ANDRÁSSY ÚT BY DUTCH AMBASSADOR, GAJUS SCHELTEMA
Andrássy út
Hungary is my last post abroad, and ironically, one of the first, too – in a certain way. Back in 1970 – ages ago –, as a schoolboy, I visited Budapest and stayed at the very place where I am now living. There is something circular about life! Of course, the city was very, very different in those days, very grim and forbidding for a young man from Holland, but I remember that excitement about visiting Hungary was overriding. I sometimes jokingly say that my stay in this magnificent residence must have persuaded me to become a diplomat! I have had several postings in Central Europe and wanted to come back. I am a strong believer in Europe and our common destiny, and thought that I should contribute with one more posting here. I was not disappointed. Challenges there were, and are, but one can feel how closely Hungary is now intertwined into the fabric of the European Union and how open our borders have become, in every sense. What a difference from 1970…
Andrássy út —
Views of an Avenue
Andrássy út is the most impressive of all Hungarian avenues’, from its elegant start at Deák square to the monumental Heroes square. This ‘UNESCO world Heritage’ street represents the fin-de-siècle architecture of Budapest at its grandest. The book captures rather random impressions of the street through an atmospheric camera lens, completed by a series of interviews. The pictures speak for themselves, focusing on some lesser known gems, while thirteen different stories each address a specific subject of Hungary’s past and present. What they all have in common, however, is a link with Andrássy út, one way or another.
Andrássy út There is no doubt that Andrássy út, the ‘Champs Elysées’ of Budapest and a UNESCO World Heritage site, is the most impressive of all Hungarian avenues, from its imposing beginnings at Deák square, to its no less monumental end at Heroes’ Square. Often simply called ‘Andrássy’, it is the epitome of the ‘fin-de-siècle’
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architecture of this lovely city, with a few more modern buildings sneaked in at places. Its architecture represents Budapest, and indeed Hungary, at its finest and grandest. The period between 1885 and now indeed witnessed an unparalleled growth and wealth of the city, and after that, its struggles to survive.
A collection of impressions I slowly developed the idea to capture in a book some aspects of Hungarian history through that street, taking it as a point of departure for some stories and visuals. The book, which has resulted, is not a documentary publication, nor an academic description of its architecture. It became rather a collection of random impressions, first of all through the atmospheric lens of the camera, but reinforced by a series of interviews. The pictures speak for themselves, whereby we specifically wanted to focus on the lesser-known gems that we found. They are not related to the texts, although links can be found. At the end of the book, one can find where the pictures have been taken and their relationship to the stories, if any.
My favorite countryside in Hungary is the Kiskunság region, south-east of Budapest, where you can forget the city - and even human presence - just an hour away from town. There, we find the last remains of the Euro-Asian steppe landscape, flatlands or pusztas, where small scale farming blends with nature. It is particularly rich in birds, including the largest Central-European population of the spectacular Great Bustard (túzok in Hungarian). At the ponds and salt-lakes, migratory birds can be found in spring and fall, and magnificent raptors, such as the Imperial Eagle, the White-tailed Eagle and the rare Booted Eagle nest over there. Thanks to the dedication of the local nature conservation rangers, this part of Hungary can be considered a pride of the country, a real Hungaricum!
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Gajus Scheltema
Martijn de Vries
NOTES OF A BIRD WATCHER
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SERGE LIGTENBERG, MARTIJN DE VRIES, FRANCESCO VERONESI
Open horizons I love the Hungarian countryside. As beautiful as Budapest is, I rush outside the city whenever I can, to penetrate the depths of the Alföld plains or the mountains in the north. My favorite area is the Kiskunság, not far away from city life, where remnants of the Euro-Asian steppe landscape try to hold on, against modern ‘civilization’. The unspoiled nature and emptiness of that landscape, with its open horizons, reminds me sometimes of the Netherlands, but on a larger scale. For me, this is part of the greatest pride of Hungary, the puszta landscape and its unique flora and fauna. Let’s hope it will survive. I am greatly impressed with the rangers and nature conservationists of this country in their efforts to maintain this unique heritage.
Views of an Avenue
Andrássy út Andrássy
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Jigsaw pieces of history With the interviews, on the other hand, we wanted to explain and reinforce specific aspects of the avenue and its history, which, in turn, reflect parts – and parts only – of this country’s history from the 1880’s onwards. Those interviews are therefore selective, limited and probably subjective. However, together, they are jigsaw pieces of the big puzzle, which is called Hungary. What they all have in common is a certain link with the street, one way or another. That is all. Each is a story on its own, just like the pictures. Together, through the stories and the pictures, the street becomes a metaphor, a pars-pro-toto of the country and its moving past and future.
Thank you, Budapest The idea of this book was conceived by me during my four enjoyable years in the capital
in the desire to leave something tangible behind, as a ‘thank you’. I also soon realized that there was a need – or a market – for an modern English-language book on the city. I was greatly helped by Tibor Bérczes, who worked with me on the interviews. But most of all, it was the artistic eye of Martijn de Vries, a Dutch photographer who lives in Hungary, which so elegantly caught much of the street in black and white. The prestigious publishing house Corvina was happy to embrace the project from its beginnings and turned our voyage into an elegant product. I am indebted to all of them and others. I am, of course, happy that we could finalize the book just before my departure. It makes me proud, not just to leave something tangible behind, but also to be able to thank all my Hungarian friends through this book for their welcoming hospitality!
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what's on 6TH PALOZNAK JAZZ PICNIC
NIGHT OF THE MUSEUMS 2017
ALL OVER BUDAPEST ON JUNE 24 Have a sleepover with history and spend the night in museums! On June 24, museums open their doors to visitors both in Budapest and in the countryside until 2:30 am for this annual event which celebrates its 15th anniversary this year. There will be more than 1,000 programs offered at some 100 locations within the capital, all of which can be visited with one single ticket in the form of an armband. In addition, visitors with an armband are entitled to use the Museum Bus. www.muzej.hu
AUGUST 3-5 IN PALOZNAK ‘Jazz, Wine, Balaton!’ is the slogan of this annual summer fest, which is a winning combo of great wines and an array of international star performers at Lake Balaton. Organized by a local winery named Homola Pincészet and co-organized by the Municipality of Paloznak, the fest is one of the most charming summer events: the tiny village of Paloznak's streets fill with music and people strolling with a wine glass in hand and the Folk House's garden turns into a live music venue. The main stage is traditionally set up on the edge of the village, and the audience is encouraged to lounge in the grass. The festival also stands for quality in terms of gastronomy: the most popular restaurants of Lake Balaton's north shore will be catering. The picnic vibes will be complete with picnic baskets, cooled wines, local farmers' delicacies (such as: artisanal cheeses and hams, ice cream and pálinka variations), and picnic blankets. Paloznak Jazz Picnic presents a star-studded program this year: the international line-up includes Incognito, the British acid jazz formation, as well as Mario Biondi, the Italian singer balancing between soul, blues and jazz, Kool & the Gang and Matt Bianco featuring New Cool Collective. During the festival, a dedicated bus service will help guests travel between Paloznak and their accommodation in nearby towns such as Balatonfüred, Csopak, Balatonalmádi and Alsóörs. www.homolapinceszet.hu/jazzpiknik
ALL OF T E MONA C PART OF THE 22ND DANUBE CARNIVAL
JUNE 16 AT THE OPEN-AIR THEATER ON MARGARET ISLAND This summer welcomes the 22nd Danube Carnival that is “traditionally all about traditions”. One spectacular part of this multicultural fest is the Parade of up to a thousand dancers and musicians - both Hungarian and foreign folk ensembles, held this year on June 17. During this program, the Danube Promenade is crowded with youngsters, women dressed in traditional costumes of swaying, gathered skirts, starched blouses and fitted bodices with ribbons in their hair, and men in britches and brimmed, round, felt hats. Besides the outdoor programs taking place on frequented squares and streets in Budapest, breathtaking gala concerts will be held at the Városmajor Theatre on June 3-8, and at the Margaret Island Open Air Stage on June 16. The latter, entitled ‘Ball of the Monarchy’, will be a classically romantic, spectacular dance concert featuring up to 200 artists from the Hungarian State Folk Ensemble, the Danube Art Ensemble and the Budafoki Dohnányi Symphonic Orchestra, performing in the dual spirit of tradition and modernity. www.dunakarneval.hu
ROBBIE WILLIAMS: THE HEAVY ENTERTAINMENT SHOW
AUGUST 23 AT THE GROUPAMA ARENA Boasting an obsessive international following, a notorious wit, and some of the most hit-laden pop records of the modern era, Robbie Williams is the definition of a phenomenon. He is the best-selling British solo artist in the United Kingdom who, in 2006, entered the Guinness Book of World Records for selling 1.6 million tickets of his Close Encounters Tour in a single day. The British pop king released his new album last year on November 4, inspired by the atmosphere of box matches, and his long-awaited stadium tour brings 29 shows to 18 countries, opening at Manchester’s Etihad Stadium on June 2, 2017. Erasure will be joining Robbie Williams on the tour as special guests. www.livenation.hu
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UNTIL AUGUST 13 AT THE ART HALL This exhibition offers an overview of design and applied art in the past decade. While the salon pays tribute to the trendsetting masters of recent times, the E S József Scherer, want the show to concentrate on the possibilities and greatest achievements of contemporary artists, who work in a changing context of training, design, production and trade. Actual functions and professional challenges provide the organizing principles of the display, which presents objects and designs to trace not only the classical genres of contemporary applied art and design, but works as well that emerged on the borderland between them. The exhibition is an event of the Hungarian Academy of Art’s exhibition series, the National Salon, which started in 2014, to observe major achievements in visual arts each year. Following architecture, classical visual art genres, and then photography and media art, now the National Salon will focus on design. www.mucsarnok.hu
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ALL AROUND US. NATIONAL SALON 2017. APPLIED ARTS AND DESIGN
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what's on VOLT FESTIVAL 2017
JUNE 26-JULY 1 IN SOPRON Over the past 25 years VOLT has grown from a very small festival to an event attracting 150,000 people, although it still maintains a special ‘family’ atmosphere. Organized by the same company as Sziget and Balaton Sound, the event offers a total of 10 stages with over 200 performers, quality lounges, bars, cafes, restaurants - all built in the middle of a forest in Sopron. VOLT is a festival with great traditions, presenting international stars in several genres, ranging from pop/rock to alternative, metal, folk/world, H R A C Bill Blues Band and Welhello, while Linkin Park, Ellie Goulding, Martin Garrix, Imagine Dragons, Paramore, Pendulum Live and Fatboy Slim will add to the international stars’ list. www.volt.hu
VESZPRÉMFEST 2017
Y’AKOTO CONCERT
JUNE 17 AT MARGARET ISLAND The Ghanian singer Y’akoto performs for the very first time in Hungary. The iconic pop-soul diva’s “urban music” brings cultural inspirations, instincts and intuitions together. Y’akoto’s dark, expressive voice has been compared to jazz icons such as Nina Simone or Billie Holiday. Merging blues, neo-soul and ambient pop, Y’akoto’s sophisticated performance is encompassed by deep passion. Her art is more than music: it is an attitude about life, an uncompromising force and a quest for soul. www.szabadter.hu
JULY 12-15 IN VESZPRÉM Already well into its second decade, VeszprémFest is a dynamically developing, large-scale cultural event creating true value for lovers of art and quality music from Veszprém and around the country. For several days every summer the event offers the most accomplished, world-class performers from various musical genres, including classical music, world music, opera, jazz and pop. The beautiful Baroque building of the Archbishop’s Palace in Veszprém Castle serves as the backdrop and natural setting for the concerts. The venue – far from the hustle and bustle of the big city – greatly contributes to creating a unique, intimate and friendly atmosphere for visitors. The main evening attractions this year will be the Richard Bona & Mandekan Cubano, Heather Small, Tom Jones and the NPG (New Power Generation). www.veszpremfest.hu/en
MARC ALBERT PHOTOGRAPHY, SZILVIA VERECZKEY, COURTESY PICTURES
JAMES MINCHIN, ÁKOS STILLER, EMMANUEL BOBBIE, REBECCA MEEK, TOMISLAV GOTOVAC, COURTESY PICTURES
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LAST C ANCE TO SEE NONALIGNE A T MA IN O SUDAC COLLECTION
UNTIL JUNE 25 AT LUDWIG MUSEUM The Ludwig presents a comprehensive array of avant-garde art from the former Yugoslav states and some neighboring countries, focusing on the Cold War era. The selected artworks are from the private collection of Marinko Sudac, which, in addition to pieces of art and groups of works, also comprises complete documentations and archives of great art historical significance. The exhibition came to Budapest from Milan: selected by chief curator Marco Scotini, the exhibition was on display in the halls of the FM Centro per l’Arte Contemporanea. The Budapest show is a revised adaptation of that selection. At the exhibition, a smart media-guide system helps visitors to navigate around the exhibition space and get additional information on the exhibits. The system is based on Bluetooth beacon technology and operates through a smartphone app that can be downloaded for free on one's own device, so that visitors are given a completely new experience. NonAligned Art is especially interesting to explore in comparison with the show Parallel Avant-Garde, which is a comprehensive review of the Pécs Workshop and its activity – also on show at Ludwig Museum until June 25. www.lumu.hu
DANCING ON THE SQUARE BY THE BUDAPEST FESTIVAL ORCHESTRA
JUNE 10 AT HEROES’ SQUARE With over a thousand dancing feet, nearly a hundred musicians and one conductor, the Budapest Festival Orchestra will once again give a free concert on Heroes’ Square on 10 June. The heroes of the event will be the young people, Roma and non-Roma from privileged and less-privileged backgrounds, for whom the preparations started in January all over the country. Once again, the Dancing on the Square project will see Iván Fischer and the BFO gather more than 500 young people for a show of tolerance. The youngsters have been rehearsing since January to the tunes of the Symphonic Dances from Bernstein’s West Side Story – a musical about openness and tolerance, indicating that there’s so much more to Dancing on the Square than music and dance only – it is a project that calls for the creation of a tolerant community that is welcoming and accepting. www.bfz.hu
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society Nordic Green Light reception On the eve of the Nordic Green Light sustainability business forum in Budapest, the Swedish Ambassador to Hungary, Niclas Trouvé hosted a reception at his residence in the Buda Hills for the prominent participants of the forum.
Arab Cultural Days The 2nd Arab Cultural Days were organized at the Pest Vigadó event center in downtown Budapest this May. The event was hosted by the Ambassador of the State of Palestine Marie Antoinette Sedin, who is the president of the Council of Arab Ambassadors this year. The Hungarian state was represented by House Speaker László Kövér.
Victory Day at the Russian Embassy
HARANGOZÓ
In commemoration of Victory Day (the end of World War II in Europe on May 9, 1945), the Russian Ambassador to Hungary, Vladimir Sergeev held a reception in the building of the Russian Embassy in Budapest for fellow diplomats and other guests.
photos by DÁVID
Polish Constitution Day The Polish Ambassador to Hungary, Jerzy Snopek welcomed guests to the Pest Vigadó event center to celebrate the Day of the Polish Constitution. Adopted by the Great Sejm (parliament) of the Polish–Lithuanian Commonwealth on May 3, 1791, it was Europe's first codified national constitution and the second oldest in the world.
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society Slovene Wine Presentation Co-organized by the Slovene Embassy, a presentation of Slovene wineries and wines was held in the St. George Hotel in Budapest. Opened by the Slovene Ambassador, Ksenija Skrilec, the event created an excellent opportunity for Hungarian and Slovenian winemakers to exchange ideas and taste Slovene wines. A prominent guest at the presentation was Italian actor Franco Nero.
Constitution Day of Norway On the occasion of the Constitution Day of Norway, Ambassador Olav Berstad hosted a reception at the Museum of Military History in the Buda Castle. The Constitution of Norway was first adopted on May 16, 1814 by the Norwegian Constituent Assembly at Eidsvoll.
Argentine National Day On the National Day of the Argentine Republic, Ambassador Maximiliano Gregorio-Cernadas welcomed guests for a reception at the opening ceremony of the new Argentine Residence on Budapest's Andrássy Avenue.
Africa Day 2017 Organized by the African embassies in Budapest, the African honorary consuls and the African Hungarian Union, Africa Day 2017 took place in the Vajdahunyad Castle in Budapest’s city Park. On behalf of the African ambassadors in Budapest, it was the Ambassador of Angola, Lizeth Pena Nawanga Satumbo who welcomed the guests.
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Israeli Independence Day
photos by DÁVID
On the 69th anniversary of Israel’s Independence, the country’s Ambassador to Hungary, Yosef Amrani welcomed guests at a reception at the Castle Garden Bazaar in Budapest. At the celebration, the Embassy donated motion development tools to Hungary’s Pető Institute of Conductive Education.
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BIG BEAR FOR THE FAMILY SKODA KODIAQ, THE VERSATILE SUV WITH INNOVATIVE TECHNOLOGY
Skoda has taken a big step. Its new large size model, Kodiaq - named after a North American bear - has strong opportunities in the sport utility vehicle (SUV ) class.
control, keeps lane, keeps place slowly in a traffic jam by itself, while at night, full LED headlights help safe driving. Apart from the driver, passengers can also enjoy the wireless charging capabilities for phones. In addition to Google Earth, which provides street imagery, online traffic information is also available. In case of trouble, an automatic emergency call will help but almost all the things can be connected: MirrorLink, Apple CarPlay and Android Auto smartphone integration, optional 4G mobile internet and on-board Wi-Fi are all available, but Kodiaq's own SmartLink smartphone application linked to the vehicle will be also be worth the price. Passengers are likely to find useful the rear head restraint that fits the head while sleeping, as well as a folding table in the backrest of the front seats, a table that can serve as tablet holder or in a classic sandwich eating mode.
BY LÁSZLÓ B. KISS
Engine variations
A smart car
The Skoda Kodiaq engine range consists of two 2.0-liter TDI diesel and two 1.4 and one 2.0 TSI petrol, each with direct injection. Each engine has an automatic Start-Stop system, brake energy recovery and advanced heat management contribute to excellent fuel economy. Depending on the engine variant, the car is fitted with six-speed manual or six-speed and sevenspeed automatic DSG gearboxes. Otherwise, electronically controlled all-wheel drive (4x4) is available for higher power - it also represents a significant plus in the field of traction, stability and safety. As a predator, the Kodiaq desperately wants a big bite out of the SUV market, and it has a good chance to do so. With this model, Skoda could even enter the US market, as many have said, but the brand managers claim it will not happen. One thing is for sure, European families will love this big bear.
services can be ordered for the Kodiaq. When moving in reverse, the steering of a trailer of up to 2.5 tons is supported by an active system, parking is facilitated by a top view image, the 1 2015.01.20. 8:26:22 vehicleCityTaxi_Hirdetes.ai adapts to traffic with an adaptive speed
The biggest Skoda model has many innovative technologies, some of which are found in the upper categories only. A wide range of advanced driving aids and infotainment
photos by HEIMBACH,
SKODA, IVOHERCIK.COM
Skoda has ventured into a category of vehicles where it has never been before. The generous Kodiaq is only a bit shorter than the Audi Q7, for example. It was not by accident that the Skoda off-road vehicle was named after one of the world's largest brown bears, living along the coast of Southwestern Alaska. The 4.7-meter long Skoda Kodiaq has an impressive authority, and with its seven-seat passenger compartment as well as the largest cargo space (up to 2,065 liters) of its category, it is likely to cause serious headaches to its opponents. The shape of the car is typical of Skoda, featuring all the distinctive features of the brand. The most prominent part is the massive, ‘four-eyed’ nose section, where Czech crystal-style headlamps, used since the Superb model, alongside 3D effect daytime running light, were placed above two smaller ones. Its back is a little Audi-like, but that fits it well. However unbelievable it may seem, the Kodiaq is just 40 millimeters longer than the Octavia, yet, its interior space is above average among SUV models. The rear seats of the new Skoda SUV can be positioned in a variety of configurations and, if required, two more seats can be ordered to give it a third row. With this option, Kodiaq is Skoda’s first seven-seater model. As far as the interior cover is concerned, a fabric/leather combination, as well as leather or Alcantara upholstery is available - in addition to the fabric upholstery of the standard model.
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gastronomy
@caviarandbullbudapest @caviarandbull @buddhamann_malta @tarragon_malta @dinnerintheskymalta
taste, and is complemented with an enticing wine selection. Caviar&Bull awaits with its views, hues and symphony of tastes.
Serving a niche market As for the reason of appearing in the Hungarian capital, Marvin Gauci says he felt ready for the next – that is, international – level. “It's time to take our innovative product abroad and help put Malta on the gastronomical map. I want to help develop Malta's food reputation globally so that top foodies all over the world will see what we're doing and travel to Malta to try more. It's time to put Malta on the radar of the Michelin guide. I have many Hungarians who come to Malta and dine in my restaurants there and they love it – and if they love it there, they will love it here. There are close to two million people living in Budapest, plus about eight million tourists visiting the Hungarian capital every year. So, the market is quite big and growing. Let’s say there are some great restaurants in Budapest and I am quite confident that mine will be among them. Caviar&Bull will add to the diversity of the culinary offerings in the Budapest. I believe we will find our niche market and the guests that are looking for what we have to offer. I am adjacent to the Corinthia Hotel Budapest,
CAVIAR&BULL COMES TO BUDAPEST
HARANGOZÓ
HARANGOZÓ
photo by DÁVID
photos by DÁVID
Maltese star chef Marvin Gauci has already opened several restaurants in his native country already – now, he opens another, Caviar&Bull in the downtown area of the Hungarian capital.
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easy to fly in from Europe, they are here within a day and many of the ingredients we have found locally, as well. It is not that difficult nowadays.” The great expectations are well-founded as his widely acclaimed and multi-award winning restaurant comes to Budapest. The exciting menu fuses color, texture, scent and
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Dining in the Maltese sky Marvin Gauci is operating the ‘Dining in the sky’ project in Malta. It is a successful venture. He stresses that ‘Dining in the sky’ is a franchise, which I bought for Malta. We are serving there food prepared by the Tarragon restaurant I have in Malta. The project is very popular there – so much so that we have to turn people away.”
Fusion vs. traditional recipes
MARVIN GAUCI COOKS WITH LOVE IN HIS EYES
38-year-old celebrity chef Marvin Gauci has come a long way from his early days as a helper at a beachside bar. He has spent years refining his skills in various leading hotels in Malta, always striving to improve and vary his experience. He was on a mission, but maybe he didn’t yet know where it would lead him. He spent time at the bar and the front of the house absorbing all things about a restaurant inner workings. But it was in the kitchen atmosphere where he found true love, fine-tuning his culinary skills. The chef has gained fame throughout Europe and operates three highly successful restaurants in Malta and has now embraced Budapest as his first out-of-Malta venture. As the chef – and ambassador for Maltese gastronomy – explains to Diplomacy&Trade, the restaurants have the same name, but they are not identical. The Caviar&Bull restaurant in Malta started three years ago. “Obviously, a lot of things have evolved over this period. The philosophy of the food and the way we prepare our combination of ingredients and the dishes - I think they are quite similar. So, it has evolved but along the same line. Even the fresh ingredients are very
which is also one of the most historic hotels in the city, situated on the Great Boulevard, with direct access to the street. The restaurant is within walking distance from Octogon.” Although, the territory of Malta is 60% of that of the city of Budapest and the population of the Mediterranean country is only 450,000 compared to the close to 1.8 million people of the Hungarian capital, for Marvin Gauci, it means that if he managed to achieve success in Malta, it should not be more difficult to achieve that in Budapest. “At least in theory. In practice, we’ll have to see,” he says with a smile. “Nowadays, society looks at chefs in a different way than they used to. They look at chefs as artists, creators and celebrities. People respect you more and more for being a chef,” he adds. Marvin Gauci has long been working with chef Sergi Huerga Marin and general manager László Kézdi who ensure the top quality of food and great atmosphere for Caviar&Bull customers in Budapest. Now they are both in it with him on this new project as partners.
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Chefs focusing on fusion cuisine have won several culinary competitions recently. Marvin Gauci’s view on this style in gastronomy is that “people who enjoy fine food are realizing that food based on the classic recipes should not be eaten more than twice a week, thereby giving adequate time to explore and discover. So, fusion cooking has come more into fashion because people do not want the same taste every day. Therefore, fusion food is more and more popular, crawling to the top of the chart. It is different taste: it is sweet, it is sour and it is tangy. We use an element of everything in our kitchen. The beauty of it is the way it is blended together, it gives that sensational taste and it gives that sensational experience. When you eat it – no matter what you eat – it always makes you to want to have a little bit more of it, and that’s what it is all about. No matter how big the portion is, when you are finishing the last bite, you just want more.”
Caviar&Bull - Budapest, VII. Erzsébet körút 43. PHONE: +36-1-479-4040
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Bock Winery has organized one of the most exciting tours of the wine region in its history. This spring it launched small-group off-road excursions for visitors who would like to get to know the vineyard areas, as well as the wines, better.
The program’s participants will visit five of Villány’s prominent vineyards together with an experienced guide and will be able taste the emblematic wine coming from each as they visit them. The tour will start at Bock Winery and its first stop will be the Göntér vineyard, celebrated for its white wines, where József Bock also cultivates one of his personal favorites, H rslevel . f the weather is favora le, the variety is also capable of botrytizing here; in this case, Bock produces naturally sweet wine from it. The excursion will continue in Kisharsány’s Bocor vineyard. József Bock’s land can be found in its hottest part, the deep valley. The Syrah vines cultivated here have been recognized with countless prizes and have found their way into wine lovers’ hearts.
HE S R
From here, behind Szársomlyó, the SUVs will turn towards the highly protected Fekete Hill. The winemaker had to do battle when planting the Cabernet Franc in this legendary production area as holes needed to be broken with a jimmy in the stony soil for the vines. But the grapes made the work worthwhile: velvety, smooth Franc is born from here, and in outstanding vintages one of the winery’s least known, but outstanding wines, the Fekete Hill Cabernet Franc Selection. The vineyard tour’s fourth stop will probably be Villány’s most spectacular and steepest slope, Ördögárok, where József Bock cultivates 16 hectares of terraced, exceptional quality grapes. This is also the natural home of the winery’s flagship wine, Magnifico – this wine is also a personal favorite of Placido Domingo, who is well acquainted with Bock’s winery.
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The Pannon Wine Guild, founded by such winema ing legends as stv n S epsy, Ede iff n, olt n Heimann and Attila Gere and consisting of up to 40 top Hungarian family wineries, is taking a great step. With the help of Frigyes Bott, their Slovakian member and the support of a dedicated local wine enthusiast, the Guild is organizing its first joint foreign presentation in the Slovakian capital during the first half of June. The participants want to make this a tradition: it is modelled on the Vin E udapest Wine Show, although only the members of the Guild are involved in this movement with a total of about a hundred outstanding wines. They are also holding a masterclass on the Kékfrankos variety and have invited the region’s best sommeliers and gastronomic professionals to the event, which is being held at Hotel Devín. The organisers of the Bravino (Bratislava Wine Show) will later assist in selling the Guild’s wines in Slovakia.
The Bock family already had vines in the Jammertal in the 1850s, where some 100-year-old vines are still preserved until today as a tribute. The old family cellar was built here too, where József Bock spent his childhood. The sun-drenched, south-east-facing slope with an incline of 14-18% is actually a pocket which traps the heat, so grapes ripen extremely well here. The Bock Winery Cabernet Sauvignon Selction is produced from here, which is comparable to the Fekete Hill Cabernet Sauvignon Selection in its beauty and age ability. There is an old family cellar here, closed to the public which houses the museum bottles, and this will be opened for those taking part in the vineyard tour. The tour will end at the Villány cellar, imposing both dimension and architectural design. Here guests can taste some barrel samples as well as enjoy a gourmet lunch in the Óbor Restaurant.
R GRA FRIDAY 6 p.m. Veronika Harcsa and Bálint Gyémánt 8 p.m. Es ter V c i uartet 10 p.m. Sena
SATURDAY 6 p.m. Pankastic! 8 p.m. Sn t erger Stoc hausen 10 p.m. Nouvelle Vague
This year the annual Gere Jazz Festival takes place on June 9-10 and, as is traditional, is hosted y Gere Attila Winery. Following last year’s 5th successful festival that introduced the and Latin fiesta to Vill ny pro a ly the most Mediterranean site of Hungary), this year the organizers chose Provence as the main theme and invited the French ossa nova and Nouvelle Vague to perform, along with a handful of popular Hungarian jazz groups. Chef Szabolcs Kozma and the team of the local Mandula Restaurant will make sure that food served at the renewed barbecue terrace of the Gere Estate will also conjure a genuine French spirit. Naturellement, the complete wine range of the Gere Attila Winery will e on offer, including their beloved reds such as Villány Franc, Kopár and Syrah, refreshing whites and rosés, and wine cocktails made of the sparkling Frici.
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wine
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LOVE BEER DAY A JOURNEY FROM BARLEY TO BAR BY HEINEKEN HUNGÁRIA
Heineken Hungária held a thematic media day in Fogas House, an iconic place in the ruin pub quarter of Budapest this May. Besides being introduced to the latest innovations, journalists also became acquainted with the know-how of beer brewing. Journalists were invited to join team competitions, gastronomic adventures, a beer quiz and a blind taste test. The secrets of perfect tapping were revealed and the journey from barley to bar presented. Love Beer Day was also the perfect occasion to showcase new Heineken products and product categories. 2017 is definitely a year of innovations for Heineken Hungária, due to an unprecedented novelty in the Heineken brand, the first alcoholfree Heineken 0.0. Starting from zero, master brewers have been experimenting for years, tasting many variants in the quest for this unique formula, a perfect balance of refreshing, fruity flavor and mild malty aroma in an alcohol-free edition that is double brewed. This year’s Heineken Hungária innovations were inspired by consumer demand. Following APA, a new Soproni top-fermented IPA (‘India Pale Ale’ as it was the favorite of British
troops serving in India) variant has been launched, a unique specialty in the Hungarian market. Soproni Óvatos Duhaj (‘Cautious Gambler’) IPA is the result of a special brewing technology involving Citra and Cascade hops. Heineken Hungária is the only big brewery in the country to come up with a new, top-
fermented variant of its biggest brand (Soproni) this year. After the APA (‘American Pale Ale’), an IPA specialty beer has been introduced to the market. The sophisticated ‘Duhaj’ IPA flavor is more floral, more fruity and richer than ordinary light beans thanks to the special production technology and the Citra and Cascade harvests used when making it. The lovers of import beer specialties will not be left without novelties, either. From this year, Heineken collects the best premium beers in a bouquet under the name ‘Beers of Europe’. The essence of the concept is Heineken Hungária’s offer of specialty beers packaged in bouquets for consumers. In addition to the traditional, and already well-known, Edelweiss and Krusovice, the selection includes two brand-new brands, since from 2017, the Belgian abbey beer Affligem and the special lambic beer Mort Subite, are also available in the selection offered by Heineken Hungária. Additional innovations include NaturZitrone and new Gösser radler flavors (grapefruit and bitter lemon) that are already available. A new member of Soproni Radler family will arrive, too, with cherry-lemon flavor.
beer TRY THIS RECIPE WITH YOUR FAVORITE BEER! PULLED PORK WITH MARINATED CABBAGE AND ONION INGREDIENTS For the meat 0.6 kg of pork shoulder (with ribs) 0.1 liter of barbecue sauce 0.05 kg of barbecue spice mixture 0.05 kg of mustard For the slaw 0.1 kg of onion 0.12 kg of cabbage 0.03 kg of crystalline sugar 0.01 kg of salt 0.03 liter of vinegar (10%) 10 mini buns Sprinkle the meat thoroughly with 2/3 of the spice mixture and massage it with a little mustard. Roast it - on a grid placed on a baking tray filled with water - to 90 degrees core temperature (7-8 hours) in a 120-degree oven. Rip open the softened roasted meat with two forks, add the remaining spice and barbecue sauce. Prepare salad sauce using the sugar, salt and vinegar in which the thinly sliced onion and cabbage are marinated for 24 hours. Place the meat on the lower half of the half-cut buns, put on it the drained salad and top with the other half of the bun.
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