Diplomacy & Trade 2019 September

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A DISUNITED FRONT

THE G7 MEETING IN AUGUST WAS A DISCONCERTING DISPLAY OF THE EMERGING FAULT LINES AMONG THE LEADERS OF THE WORLD’S MOST DEVELOPED NATIONS. SEE ANALYSIS on page 7

The Netherlands

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The Netherlands is one of Hungary’s most important economic partners and Ambassador René van Hell sees fostering European integration and strengthening bilateral economic relations as the key objectives of his work in Hungary. In an exclusive interview with Diplomacy&Trade, the Ambassador highlights the need for stronger cooperation between the two countries in agriculture, circularity, combatting climate change and tackling the refugee crisis to ensure a safe and bountiful future for generations to come. see articles on pages 10-30

Changing of the Guard

The European Commission’s incoming President, scheduled to take office on November 1, inherits a community brimming with discontent and opposing views. Ursula von der Leyen, a close ally of Germany’s Angela Merkel, will have to showcase outstanding political acumen to steer the 28-member bloc toward solutions.

see more on page 8

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32 DIPLOMACY

To mark the 70th anniversary of Hungary and China establishing diplomatic relations, Diplomacy&Trade will feature the People’s Republic of China in the country focus section of its October issue. In recent years, the leaders of the two countries have elevated China-Hungary relations to a ‘comprehensive strategic partnership’. The People’s Republic of China is Hungary’s largest trading partner outside Europe and Hungary is China’s third largest trading partner in the CEE region. Chinese ambassador to Hungary, Duan Jielong will provide an extensive overview of the many factors influencing bilateral relations and the outlook for cooperation between the two countries in an exclusive interview. Chinese enterprises operating in Hungary employ over 15,000 people and the ‘China Focus’ will provide an opportunity for these firms to present their activities.

KLM, Olivér Hargitay/www.oliverhargitay.hu, Tibor Szurok, DBH Group, Gábor Valuska, László Sasi, Lukas Holzmeier, www.fdfa.be, Elroy Thümmler, Dénes Józsa, Philips, Gergely Zákány/gergelyzakany.com, Alessandra Fuccillo, Live Nation, Koncertpromo.hu, Mandaugas Norkaitis/www.m-n.lt, Accell Hunland, Raben Trans European Hungary, Embassy of Indonesia, Gellért Áment, Embassy of Peru, Vegetarian Festival, Innomotion Studio, Araz, PIXELTASTER, Gusteau, László Mudri, Zsolt Szigetváry, John Moore/Getty Images, Mário Cruz, Bence Máté, Flóra Borsi, British Embassy Budapest, MTI Photos: Szilárd Koszticsák, Zsolt Szigetváry

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CHINESE FOCUS – COMING SOON

CONTRIBUTORS: Edith Balázs, Sándor Laczkó, Tamás Magyarics, Diána Sayuri Matsuzaki, Réka A. Francisck, Iain Lindsay, Szabolcs Takács, Raul Alfredo Salazar Cosio PHOTO CONTRIBUTORS: Dario Pignatelli/European Union, (Cover), Depositphotos.com (Cover), Alteo.hu, Waberer's International, Depositphotos.com, Balázs Tóth,

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Brexit as seen from Hungary; PeruHungary: 50 years of diplomatic relations G7: Summit without decisions 33 WITTYLEAKS by the British EC President-elect: Wind of change Ambassador 10-30 DUTCH FOCUS Interview with the Dutch Ambassador to 34 CULTURE World Press Photo Hungary, René van Hell; Dutcham; KLM; 35 SOCIETY FrieslandCampina; Heineken; Philips; 36-37 WHAT’S ON NN; Aegon; EcoLodge; News in brief; Concerts, festivals, events and A Dutchman in Hungary; Rembrandt exhibitions in and out of Budapest 350 years; DBH; Accell Hunland; Shell; Raben; Csernozjom 38 GASTRONOMY Vegetarian festival 31 BUSINESS Car manufacturing in Hungary 39 WINE Budapest Wine Festival

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World Press Photo exhibition provocative and poignant

Dubbed the wine event of the year, the Budapest Wine Festival in the Buda Castle is a must-go for lovers of quality wines, food and arts.

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Those of you who were looking forward to a productive G7 meeting at a time when the international community is fraught with conflicts and issues calling for decisive leadership must share my disappointment over the outcome of the Biarritz summit. As our foreign policy analyst points out, the leaders of the most developed nations in the world failed to come up with meaningful answers to the most pressing challenges of our times at their latest gathering in France and their hesitant approach is unlikely to morph into clear guidance given the political uncertanties and upcoming elections most of them face at home. The results of the Biarritz meeting justifiably raise the question whether kicking the can down the road is becoming the new normal in international politics? Let’s hope it’s not.

This month’s country focus explores the relationship between the Netherlands and Hungary and, in addition to marking the 100th anniversary of KLM, casts light on the various aspects of Dutch presence in the country.

Ambassador René van Hell elaborates on the crucial importance of further intensifying economic, political, military and cultural cooperation. As one of the European pioneers of environment protection and building a circular economy, the Dutch are open to sharing their expertise in these fields with their Hungarian counterparts, according to the Ambassador. I invite you to read through the pages of the section, which offer an extensive and colorful overview of Dutch businesses operating in Hungary, ranging from global giants to SMEs and even single-person businesses.

As the November 1 deadline for the change in the EU’s leadership approaches, we look at the incoming President of the European Commission and the challenges the former German Minister of Defense will face at the helm of the 28-member bloc. Ursula von der Leyen has some overwhelming issues to tackle, let me only mention migration and Brexit.

Anyone who has had to learn a language by a set deadline will find it easy to identify with British Ambassador Iain Lindsay’s rendering of his efforts to master Magyar, which is the subject of the WittyLeaks section.

Do not miss the 28th Wine Festival in the historic BudaCastle. The 3-day event is a colorful and boisterous melange of exquisite wines, sumptious food and excellent music. If you are in the mood for an eye-opening cultural experience showcasing the harsh realities of our times, I recommend the World Press Photo exhibtion in the National Museum.

As most of you return from your summer holidays, allow me to wish you a rewarding and successful last quarter!

Hungary to suffer from automotive industry weakness

LÁSZLÓ TYUKODI/TYUKIFOTO.HU, ZSOLT SZIGETVÁRY, FLÓRA BORSI, DEPOSITPHOTOS.COM

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on the record 3Oth ANNIVERSARY OF THE PANEUROPEAN PICNIC German chancellor Angela Merkel and Hungarian Prime Minister Viktor Orbán were the guests of honor at a special commemoration marking the 30th anniversary of the Pan-European Picnic in the Hungarian city of Sopron, close to the Austrian border.

The Picnic, held on August 19, 1989 near Sopron, was a peaceful demonstration against a divided Europe. More than 600 East German citizens seized the opportunity to flee to the West through the temporarily open border. The event was a symbolic milestone that led to the dismantling of the Iron Curtain and the reunification of Germany.

In his speech, the Prime Minister said that "Europe must be reunited time and again, debate after debate, conflict after conflict, day after day. Independent and free nations constitute the foundations of Europe, and therefore European unity is never entirely complete; it must be created over and over again." Orbán noted that upon the dismemberment of Hungary, Sopron – often dubbed the ‘Town of Loyalty’– and its Hungarian, German and Croatian inhabitants “tied themselves to Hungary through the force of a referendum.”

Chancellor Merkel commended the Hungarian border guards of 1989 who, despite increased tensions, did not open fire like they had done many times before. Merkel said that the Picnic became a symbol of how the yearning for freedom can never be suppressed, and how freedom can only be achieved together: "Germans remember with great gratitude what Hungary had done to dispel division."

EUROBIOLOGIST RECEIVES HUNGARY’S HIGHEST STATE AWARD

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world champion in 2010, won the 1,000-meter individual event and was also a member of the quartet to cross the finish line first in the K-4 500-meter race. The 5th Hungarian gold was achieved in the men’s 1,000-meter individual race by Bálint Kopasz, who defeated the reigning world champion and 2012 Olympic silver medalist Fernando Pimenta from Portugal. The Hungarian performance means that the country has secured the right to participate in 12 kayak and canoe sprint disciplines at the 2020 Summer Olympic Games in Tokyo. In disciplines where they failed to do so, Hungarian paddlers will have more opportunities to qualify at competitions to be held next year. In the paracanoe events, Hungary's Péter Pál Kiss won a gold medal.

FORINT WEAKENS TO RECORD LEVEL AGAINST EURO The paddlers of the host nation won five gold, four silver and three bronze medals at the 2019 Canoe Sprint World Championships organized in the southeastern Hungarian city of Szeged, finishing third on the medal table behind Belarus and Germany. The sporting event attracted about 1,100 competitors from 101 countries. On the Hungarian team, women kayakers delivered the best performance, winning four of the seven disciplines and finishing third in two others. Tamara Csipes (pictured), a two-time

The Hungarian currency hit its weakest level against the euro on the interbank market on August 27, with the EUR/HUF currency pair rising above 327.7, the previous record. The forint has not been able to recover and traded above 331 to the euro as we went to print. Reasons include uncertainty over the US-China trade war and Brexit, the likely negative impact of the weak perfomance of the German economy and the fact that the National Bank of Hungary is unlikely to raise interest rates despite the currency’s weakness.

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HUNGARY SECURES 12 CANOE SPRINT QUOTAS FOR TOKYO 2020 OLYMPICS

UPCOMING NATIONAL DAYS September

SZILÁRD KOSZTICSÁK/MTI, ZSOLT SZIGETVÁRY/MTI, DEPOSITPHOTOS.COM

Neurobiologist researcher Botond Roska, the director of the Basel Institute for Molecular and Clinical Ophthalmology, professor at the Faculty of Medicine of the University of Basel, and head of the Neurobiology Research Group at the Friedrich Miescher Medical Research Institute received the Hungarian Order of Saint Stephen, the country’s highest state distinction. The President of the Republic ofDiplomacy-n-Trade.ai Hungary János Áder presented the award on August 20, 1 2017.

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Hungary’s national day. According to the official announcement, Botond Roska is working with his colleagues to learn about human vision and cure related illnesses. As a result of his persistent research, the types of blindness caused by the loss of the eye's lightsensing ability may soon be cured. Botond Roska and his colleagues have developed a therapy that can make impaired vision cells photosensitive again. Praising the professor, János Áder noted that he was “not working in the operating room, but in the laboratory, dealing with one of the most precious, yet, fragile treasures of our lives: vision. Botond Roska is a doctor who does not heal himself but makes it possible for others to heal using his research.”

The President said Botond Roska was a disciple of hope, similarly to renowned Hungarian ophthalmologist László BatthyányStrattmann.

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­company briefs PRINTING COMPANY REPORTS GOOD RESULTS

ANY Security Printing Company PLC’s net sales in the January-June period amounted to HUF 16.1 billion, HUF 0.5 billion (3%) higher than in the same period a year earlier, according to an announcement from the company. Revenue from the sale of security products and solutions amounted to HUF 4.9 billion, HUF 0.1 billion lower than a year earlier, while sales of card production, personalization totaled HUF 5.0 billion, HUF 0.3 billion higher than the previous year.

The efficiency of the company can be improved by increasing capacities and by embedding electronic solutions into its core activity, according to Gábor Zsámboki, CEO of ANY Security Printing Company.

"Our efficiency program, which started several years ago, is evidence to this trend and has resulted in doubling net sales revenue and 80% higher net profit compared to 2013 with only 24% increase in

HUNGARIAN PHARMA FIRM LAUNCHES NEW PRODUCT

headcount," the executive said. Electronic solutions, which form a part of the services offered by the company in the form of supplementary biometric, track and trace services for security and business products, are also used in production and logistics. "In the recent period we were proud of a product, which can be considered unique worldwide. Color graphics were printed on the cover page of a passport made for export sale. This is a great milestone in the life of the Company,” Zsámboki noted.

ALTEO RECONSTRUCTS CENTURY-OLD HYDROPOWER PLANT The Gibárt Hydropower Plant operated by ALTEO in northeastern Hungary has been temporarily shut down, enabling the company to begin reconstruction of the facility, which has been in operation since 1903. The revamp is necessary to ensure the plant’s sustainable and secure operation in the long-term. No major refurbishments have been carried out in the past 48 years on the generator and turbine, the heart and soul of the power plant. The HUF 1.1 billion investment project is set to increase the lifetime of the power plant by approximately 35 years

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Budapest-headquartered transport and logistics company Waberer’s International Co. Ltd. said its revenue in the second quarter of 2019 decreased by 6% to EUR 173 million. The decline is due to lower volumes in the aftermath of the end-of-March Brexit date affecting Q2 trade flows negatively in the international segment. The 7% growth in Regional Contract Logistics services failed to counterbalance the Brexit impact. Problems related to the implementation of a new transportation management IT system also affected international operations and April results negatively, the company said, adding that all major issues related to the system have since been resolved.

Waberer's, which owns around 3,500 trucks and employs 4,500 professional drivers, believes that the transformation program they have implemented has started yielding results, with positive profitability effects expected to gradually increase in the second part of the year.

“Waberer’s second quarter results reflect several industry- and company-specific factors that had adverse effects on the Group’s financials.

Notably, it was the month of April that was hit by a combination of market forces and internal issues. The whole industry was severely impacted by the aftermath of the end-March Brexit date, when demand for transportation services inbound to the United Kingdom dropped dramatically as warehouses had previously been filled preparing for a disorderly Brexit. As a result of this demand shock, many of our clients shut down temporarily and European cross-border transportation capacities were redirected to continental Europe, pushing April and May prices down by as much as 5-10% year-on-year, a sharp contrast to the cost-driven fee increases that we had seen before," according to Robert Ziegler, CEO of Waberer’s International.

and increase its performance by 70%. The Gibárt Hydropower Plant, located on the Hernád River, was built by one of the landowners of the region in 1902 to replace the watermill that had stood

there and to use the energy generated by the water to provide electricity for the region and for agricultural purposes. The turbines of the power plant – which survived floods and the ravages of war – were manufactured by the Budapest-based Ganz Carriage and Machine Factory.

The renovation will substantially improve the efficiency of utilization of available natural resources while ensuring longterm operability. The power plant and its equipment were classified a historical monument in 2005, meaning that the preservation of the facility’s original character is a high priority. Following completion of the works, technical delivery of the power plant is scheduled for the second half of 2020.

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Hungarian pharmaceutical company Gedeon Richter Plc. has launched a biosimilar teriparatide drug called Terrosa® in Europe. The product is approved in adults for the same indications as Eli Lilly’s Forsteo® and is used for the treatment of osteoporosis in postmenopausal women and in men at increased risk of fracture. Terrosa is also used for the treatment of osteoporosis associated with sustained systemic glucocorticoid therapy in women and men at increased risk for fracture. In postmenopausal women, a significant reduction in the incidence of vertebral and non-vertebral fractures, excluding hip fractures, has been demonstrated as a result of the use of Terrosa.

The drug was developed by Richter-Helm BioTec GmbH & Co. KG and it has been launched under the label Terrosa® by Richter via its affiliates in Europe following the patent expiry of the reference product in August 2019, according to a press release issued by the company.

The European Commission (EC) approved Terrosa® in January 2017, following the adoption of a positive opinion by the Committee for Medicinal Products for Human Use (CHMP), which concluded that the data derived from the comprehensive physicochemical and biological characterization, in vivo non-clinical studies and the clinical trial demonstrated biosimilarity with Forsteo®. The EC's approval of Terrosa® applies to all 28 European Union (EU) member states and European Economic Area (EEA) member countries.

“We are excited about the introduction of Terrosa®, our first own-developed biosimilar product in Europe, as it reflects our commitment to scientific programs linked to complex medications. Biosimilars will increase choice and access for patients in the European countries, while providing potential cost savings to healthcare systems. We look forward to bringing more high quality and affordable biosimilar products to the market,” Richter CEO Gábor Orbán commented.

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analysis

AGREEING TO DISAGREE HOW THE G7 SUMMIT KICKED THE CAN DOWN THE ROAD

BY TAMÁS MAGYARICS

The regular meetings of the leading industrial states started in 1975 (at that time as G5), and the members have produced a joint communique at the end of each of the previous meetings. Not this time.

The host, President Emmanuel Macron tried to explain away the absence of such document by stating that participants had concentrated on practical steps instead of wasting time to produce a meaningless communique. This may even have been welcomed but the sad truth is that G7 members were able to agree on very few things – if any. This indicates, on one level, the widening gap between different political philosophies – an observer even quipped that the proper name of the summit should be G6+1 or G5+2 (if the U.K. is added to the U.S. as an outlier). On another level, it points toward a re-nationalization of sorts of some of the most important outstanding issues faced by the international community.

photo by DARIO

PIGNATELLI/EUROPEAN UNION

All for one and one for all?

Disagreements started even before the meeting when President Trump suggested that Russia be readmitted to the group. President Macron shot down the idea immediately as a "strategic error," and even Boris Johnson decried the idea by recalling the Skripal-case. Germany, the other European heavyweight, supported the French and the British on this issue, while in a truly Bismarckian Realpolitik fashion it is busy doing business with Putin’s Russia. The most prominent item in this cozy German-Russian business relationship is the construction of the Nordstream 2 gas pipeline in the face of strong opposition from the U.S., which is threatening sanctions of companies involved in the enterprise. w w w . d t e u r o p e . c o m

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Another fault line between the U.S. and the Europeans is the question of Iran; more specifically the so-called nuclear deal (JCPOA) concluded in 2015. The Trump Administration withdrew from the agreement in 2017 in opposition to other participating members of the deal. Here the British, the French, and the Germans have found themselves opposing Washington. It is especially the latter two that have substantial trade interests (Airbus, automobile industry, energy) in the Persian state, which somewhat dampens their self-professed ‘value-based’ foreign policy exercised in other relations. President Macron wanted to play the role of the great mediator between the Americans and the Iranians. Foreign Minister Javad Zarif appeared out of the blue (sky) during the summit with the likely previous knowledge of the Americans, but – at least publicly – nothing has come out of the Iranian official’s surprise visit.

The 800-pound gorilla The specter of an '800-pound gorilla', that is China, also haunted the summiteers. Naturally, the (un)declared trade war between the U.S. and China could not be entirely ignored because its outcome is bound to have a deep impact on the entire world. President Trump, who, by definition, is not particularly enthusiastic about multilateral institutions and solutions, did not put the question formally on the agenda.

However, Emmanuel Macron, who saw a unique opportunity in the Biarritz gathering to boost his standing both internationally and domestically (his approval rate at home is in the low 30s, about 10 points lower than that of Donald Trump), volunteered an opinion in a classic ‘on the one hand’ and ‘on the other’ fashion. He emphasized the

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benefits of free trade, while he called for the modernization of the rules of global trade, more specifically, the overhaul of the World Trade Organization with special reference to the protection of intellectual property and a dispute mechanism. President Macron spearheaded a kind of attack on primarily US economic interests as well, when he demanded a ‘digital tax’ on tech multinationals such as Google, Apple, Facebook and Amazon (‘GAFA’-tax). As usual, this particular can was kicked down the road: Presidents Trump and Macron agreed to disagree – and to settle the question in talks to be started by the two sides sometime in the near future.

Shifting powers One of the priorities of the French hosts was the question of climate change, with special reference to the wildfires in the Brazilian rain forests. Emmanuel Macron again acted as a spokesman for ‘world conscience,’ and the G7 agreed to provide USD 20 million in emergency funding to fight the Amazon fires. (If the trouble is so big as stated by some of the leaders present at the meeting, this sum does not seem to be overly generous – to understate the case). In point of fact, France or Germany, or Europeans in general for that matter, cannot do too much without the active cooperation of the U.S., China, or India – and the latter, for various reasons, are not cooperating that actively. The whole issue reflects the shift of power in a broader sense in the world: the Europeans, especially without the U.K., are increasingly playing second fiddle to countries such as the U.S. or China in world politics, and in a number of cases their pouvoir amounts to pious statements designed, partly, for domestic consumption.

The new normal?

As always, bilateral discussions were conducted on the sidelines of the conference. The most widely expected and the one receiving the largest publicity took place between Donald Trump and Boris Johnson. President Trump is known to be a strong supporter of Brexit and sees great opportunities for American companies in a would-be U.S.-British trade agreement. PM Johnson likewise has high hopes of a mutually beneficial trade agreement between the two countries; however, he has certain ’red lines’, which he is not willing to transgress. The most important of them is the National Health Service (NHS), an institution of almost iconic standing in the U.K. and a potential target for overseas investors after Brexit. PM Johnson categorically declared that the NHS is “off the table,” and American health care providers won’t be allowed to get a foothold in the system. Another disagreement emerged between President Trump and Prime Minister Abe Shinzo of Japan with regard to North Korean missile tests. While the American President downplayed their importance, the Japanese leader expressed concern about the ‘Hermit State’s’ repeated violation of UN Security Council resolutions (in which nothing is new).

The next G7 meeting will be held in the U.S. next year. 2020 is a presidential election year in America, and as things stand at the moment, each of the European leaders in the group is facing an uncertain political future. The likely outcome will be very much like the one in Biarritz: agreeing to disagree on most, if not, all the issues. Given the current state of affairs in the world, it may well be the new normal.

Tamás Magyarics is a foreign policy analyst

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political analysis

WIND OF CHANGE

on Von der Leyen’s domestic image as an adept politician. Paying hundreds of millions of euros to consulting firms to cover up these problems further damaged her reputation.

Nevertheless, the former Minister enjoys the backing of some powerful politicians, most notably that of German Chancellor Angela Merkel. While some expected Von der Leyen to succeed Merkel as Chancellor, nominating her as Commission President seems more like a coverup for her removal from the Bundestag.

A GLANCE AT THE NEXT PRESIDENT OF THE EUROPEAN COMMISSION

Overwhelming to-do list The new job the former Minister has signed up for is by no means trivial. Although the newly appointed European Commission will only start work in November, her to-do list is already overwhelming. The casting of Commissioners is an ongoing process, nominees are waiting to be auditioned by the president-elect, who emphasized the importance of gender-balance among the members of the Commission. Noble thought but not an easy task to fulfill.

In her program speech delivered in the European Parliament, Von der Leyen put the issue of climate change at the top of her agenda. However, this could have been political maneuvering on her part, designed to garner the support of the Greens and other environment-conscious parties in the EP. While going green is a focal topic in Brussels and the portfolio of the Commissioner of Climate Action and Energy will undoubtedly gain in importance, it’s hard to imagine the issue will take over the topics of migration and trade.

BY DIÁNA SAYURI MATSUZAKI

Germany’s Ursula von der Leyen, the President-elect of the European Commission has chosen a truly symbolic song for the brass band of the German army to play at her farewell ceremony as Secretary for Defense.

She picked the Wind of Change, a song by the German rock band Scorpions, which became the unofficial hymn of the end of Communism following its release in 1991. "The song was only sketching the hopes of the times; it was a snapshot of how things were changing," Scorpions singer Klaus Meine once told Germany's Deutsche Welle. The ceremony’s playlist also featured Beethoven’s Ode to Joy (the official anthem of the European Union) and Mozart’s Ave verum corpus. Experts in European politics argue that her musical wishes reveal a lot about the new President-elect.

The first female President Minister of Defense of Germany from 2013 to 2019 and a close ally of German Chancellor Angela Merkel, Ursula von der Leyen is set to replace

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Commission President Jean-Claude Juncker on November 1. This is the first time in the history of the 28-member bloc that a woman will stand at the helm of the Commission, regarded as the government of the EU. Long before her election, her qualities made her the perfect candidate for the EU’s top job: a multilingual politician, a familiar face in Brussels, with a medical degree, and last but not least, the mother of 7. By the end of the Spitzenkandidat (lead candidate) turbulence that engulfed Brussels in the aftermath of the European Parliament elections, an increasing number of political analysts were of the opinion that Von der Leyen, a mature, elegant and “very European” politician, was the best choice for the EC post.

Dissenting voices But her nomination was also followed by a chorus of dissenting voices. Her track-record as Secretary of Defense is not without blemishes.

Voicing the disapproval of Germany’s Social Democrats, former President of the European Parliament Martin Schulz tweeted that “Von der Leyen is our weakest minister but that appears to be enough to become head of the Commission.”

Migration remains the single most pressing issue on the EU’s agenda. Von der Leyen alluded to either renegotiating the points of the Dublin Regulation (an EU law that determines which member state is responsible for the examination of an application for asylum submitted by persons seeking international protection under the Geneva Convention and the EU Qualification Directive), or discussing a brand new agreement, which could serve as an efficient and widely accepted solution to the migration crisis.

When it comes to agreements, the one that looms the largest on Brussels’ horizon is Brexit. The issue is still on the table – although not on the EU’s desk. The outgoing EU leadership made it clear that there was no way for renegotiating the Withdrawal Agreement – though Von der Leyen spoke about being ready to further extend the withdrawal date. To the best of our knowledge, the UK will leave the EU on October 31, the last day in office of the Juncker-Commission, meaning that Von der Leyen’s Commission will have nothing to do with Brexit. But if history is any indication, and in view of British PM Boris Johnson’s newly ignited Brexit-crusade, the game is far from over.

Undoubtedly, Ursula von der Leyen’s path to a successful stint at the helm of the Commission will be a long and arduous one. For her past political failures to be forgotten (and forgiven), she will need to show outstanding political acumen and she will have to convince and reform the Brussels bureaucracy in her elegant, determined and feminine way to reach her ultimate goal: a re-united, strong and successful Europe.

Besides her political opponents, numerous fellow politicians from Von der Leyen’s German Christian Democrats party shared Schulz’s opinion. Most of her critics pointed out the flabby condition the German army was in, a condition that continued to decline under Von der Leyen’s mandate as Minister of Defense. Official reports show that the once legendary Bundeswehr can no longer be considered one of the strongest armed forces in the world. According to the reports, the army is not capable of defending a country the size of Germany or fulfilling its international obligations, neither in terms of numbers nor technical requirements. The standard rifle used by the Bundeswehr is a case in point: the G36 rifle had to be phased out after it was found that it overheated and lost accuracy from intense use in hot weather. The procurement of new rifles was delayed by months because the ministry had not received suitable bids in a tender called for the purchase of new weapons. Another scandal erupted when it turned out that German troops deployed in Lithuania - next to the border with Russia – used simple, non-secured mobile networks. The scandals cast an unflattering light S E P T E M B E R

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WORKING TO BRIDGE DIFFERENCES INTERVIEW WITH RENÉ VAN HELL, DUTCH AMBASSADOR TO HUNGARY

Ties between the Netherlands and Hungary reach back centuries and both countries are members of international organizations, which foments even closer relations. ‘’Our country is open, inclusive and inventive, we work with many stakeholders, including civil

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society on these issues because we think it helps create a prosperous country,” René van Hell says.

“The two pillars of my work are to foster European integration and strengthen bilateral economic ties.

I hope that I can make a modest contribution to assist our countries in mitigating challenges such as climate change, cyber security, water supply problems and future refugee crises. The good

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“Climate change is an existential problem and it’s going to be one of the root causes of migration if we don’t do anything about it. We need to find solutions for feeding this planet together, and the Netherlands, being the second biggest exporter of agricultural goods in the world, thinks that cooperation with Hungary, where agriculture is also a key sector, is very important,” the Ambassador elaborates.

Flourishing economic relations Bilateral relations between the Netherlands and Hungary are strong, diverse and more vibrant than ever before. There are over 800 Dutch companies operating in Hungary, including international giants like Heineken, Philips, KLM or FrieslandCampina and a plethora of SMEs and family businesses, covering the entire spectrum of the economy. ‘’This variety makes economic ties especially strong and healthy, with bilateral trade amounting

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relationship and open and frank dialogue were also underlined during the visit last year of President János Áder to the Netherlands where he met the King and this year’s visits by Minister of Justice Ferdinand Grapperhaus and Minister of Foreign Affairs Stef Blok to Hungary,’’ Van Hell underlines.

“Working together within the framework of the EU also allows for differences of opinion,” highlights René van Hell, adding that the debate on migration is at times quite vocal. Countries need to differentiate between economic migrants from outside the EU and refugees or asylum seekers.

Hungary and the Netherlands agree that Europe needs stronger external borders and that the EU has to tackle the problems at the source and stop human trafficking. “Our official stance in this matter is that we need European solidarity on refugees. It is also important to continue our dialogue on the rule of law, application of EU legal principles and the position of civil society,” the Ambassador notes.

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As European Union member states, the Netherlands and Hungary work closely on a wide range of issues that call for even more intensive dialogue, René van Hell, Ambassador of the Netherlands to Hungary says in an in-depth interview. As NATO allies and EU partners, the two countries share the same values and have common interests – from promoting economic, military and political cooperation and working on a circular economy to the digital internal market.

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dutch focus to EUR 7 billion,’’ Van Hell emphasises. With a total of EUR 12 billion in foreign direct investment inflows from the Netherlands since the early 1990s, the Benelux country ranks among the largest investors in Hungary. “I definitely don’t see a dwindling interest in the country from investors’ side, but growth in capital inflows is a little bit more modest than compared to the 1990s when there was a boom. Dutch enterprises are investing in the quality of their operations here, certain companies use Hungary to test innovations or to explore new opportunities,” the Ambassador notes. Economic competitiveness in general is essential to attract foreign investors and promote domestic entrepreneurs. “Education plays a crucial role in this process; the Netherlands, for instance, is one of the few countries in Europe where entrepreneurship is stimulated at high school level,” Van Hell notes.

Labor market Hungary’s tight labor market compels Dutch companies to invest heavily in rationalization and the improvement of their productivity, which results in efficiency levels that are among the highest in the world. “I see some greenfield investments coming in from the Netherlands, but the majority of companies present on the market are continuously reinvesting in processes and maintaining capacity,” René van Hell says.

The scarcity of available skilled labor is raising concerns among foreign investors and Dutch ventures are no exception. In addition to optimizing their operations, Dutch companies are retaining their workforce through employer branding, education opportunities and by creating an inclusive working environment. Labor market tightness is a Europe-wide phenomenon and the Netherlands is tackling the issue by trying to integrate partially active or non-active groups into the labor market and offering the possibility to work beyond the official retirement age. “In some specific sectors, like health care, we are recruiting workers from other EU countries. With respect to labor mobility outside the EU, we have programs to attract knowledge workers from non-EU countries, following strict regulations’’ the Ambassador says.

Agricultural cooperation Agriculture is one of the specific economic sectors where the embassy fosters bilateral cooperation. “The natural circumstances for agriculture in Hungary are very positive, such as the country’s geographical location and its fertile

soil. However, the opportunities are not yet fully used,’’ the Ambassador remarks. “For example, Hungary is importing fruit and vegetables, whereas it could grow more locally. We can do much more in terms of cooperation in the area of agriculture, where Dutch expertise and knowledge could stimulate the modernization of the animal husbandry sector, like the pig sector.

Innovation, cooperation and competitiveness within the agricultural sector could be further stimulated,” Van Hell says. The Netherlands is a hotbed of agri-food research with some 12 out of the 40 largest global food & beverage companies operating R&D facilities there. Regional initiatives like Food Valley and Brainport Foodtech support SMEs with the implementation of promising innovations. “I see ambition on the part of the Hungarian Ministry of Agriculture to carry out reforms in the sector and in general to have more value-added production, moving from the notion ‘Made in Hungary’ to ‘Invented in Hungary’.

More competition, welcoming foreign farmers to do business here, setting up cooperatives and cooperation between top-notch research institutes, the government and the sector itself are key in raising productivity,” the Ambassador notes.

The economy of the future

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According to the Global Innovation Index 2018, the Netherlands is the second most innovative country in the world after Switzerland. The Dutch government strongly supports the deployment of innovations in building a circular economy for long-term sustainability. ‘’My country has set a big, audacious goal of being 100% waste free by 2050 and 50% by 2030,’’ the Ambassador says. To achieve this, the Netherlands has set up national circular transition agendas for a wide range of industrial sectors, including consumer goods, plastics and construction. ‘’As a local initiative, w w w . d t e u r o p e . c o m

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our embassy, together with the Business Council for Sustainable Development in Hungary and the Ministry of Innovation and Technology established the Circular Economy Platform last November,’’ the Ambassador explains. With over 70 members by now, it has been set up with the aim to share knowledge and to speed up the transition to circularity by closing the loops.

Historical ties The relationship between the two countries, which established diplomatic relations in 1920, dates back centuries. A good example of the shared history is Maria van Hongarije (1505–1558), the wife of King Louis II, who was queen consort of Hungary and Bohemia and Governor of the Netherlands. Dutch admiral Michiel de Ruyter rescuing 26 Hungarian Protestant preachers from galley slavery in Naples in 1676 was also a memorable moment in history.

During the Counter-Reformation, numerous Hungarian students went to study in the Netherlands at universities in Franeker, Utrecht, Groningen and 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

Leiden. Following World War I, many 'children-trains' traveled from Hungary to the Netherlands, carrying some 28,000 displaced, orphaned and undernourished children between 1920 and 1930 to vacation in the western European country. Numerous personal contacts developed between the receiving families in Holland and the families of the children in Hungary.

“These trains are very tangible symbols of DutchHungarian cooperation between citizens,” the Ambassador notes. During the weeks of the 1956 uprising in Hungary, Dutch people expressed their solidarity by holding demonstrations in Amsterdam, Utrecht and The Hague. When the freedom fight was defeated, locals in Amsterdam renamed a main street in the city center as Vrijheidslaan (Liberty Street). ‘’We can build upon our centuries-old relationship and our modern-time cooperation in the European Union; we are in this together for the long haul. I am convinced that there are great opportunities ahead of us in this fortunately peaceful and democratic place: Europe, our common home,’’ the Ambassador concludes.

HUNGARY

THE NETHERLANDS

93,028 sq km 111 9,825,704 (July 2018 est.)

92 -0.26% (2018 est.)

214 8.9 births/1,000 population (2018 est.)

206 76.3 years (2018 est.)

88 1.3 migrant(s)/1,000 population (2017 est.)

54 USD 29,600 (2017 est.)

68 4.2% (2017 est.)

54 12,030,940 (2017 est.)

75 41 (2013) 103

41,543 sq km 135 17,151,228 (July 2018 est.)

66 0.38% (2018 est.)

164 10.9 births/1,000 population (2018 est.)

181 81.5 years 27 1.9 migrant(s)/1,000 population (2018 est.)

51 USD 53,900 (2017 est.)

23 4.9% (2017 est.)

69 20.532 million 55 29 (2013) 118

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MEMBER-TO-MEMBER APPROACH

Companies look for subcontractors, business partners in specific areas, individuals ask for our support in finding a job in Hungary or setting up a company. There are also more and more agile Hungarian entrepreneurs and businessmen who have established a successful presence in the Netherlands, even in sectors like agritech.

It seems that the doors are open for Hungarian companies if they are ready to walk the extra mile and attend trade fairs, expos and other business events to personally meet potential Dutch business partners.”

DUTCH CHAMBER AIMS TO KEEP UP WITH TRENDS AND SHOWCASE BEST PRACTICES

Established 17 years ago, the Netherlands-Hungarian Chamber of Commerce in Budapest (Dutcham) aims to facilitate the exchange of professional expertise and provide networking possibilities for Dutch companies operating in Hungary and for Hungarian f irms planning to enter the Dutch market.

Dutcham’s key mission of providing a platform for Dutch and Hungarian companies to build a valuable network that enables them to grow and prosper remains unchanged amid the constantly evolving business environment, Chairman Lóránt Kibédi Varga says. “My goal as chairman is to create value for our members via our activities and services and strengthen the ties among these companies. The board members of the chamber have various backgrounds, which creates an inspiring and passionate environment. This adds the additional drive and energy to bring the Dutcham experience to a new level,” Kibédi Varga, who has been at the helm of the organization for four years, notes.

A vibrant business community Over the past years, Dutcham has evolved into one of the most vibrant business communities in Budapest, the chairman highlights. “Our activities aim to facilitate the exchange of professional

expertise and provide networking possibilities for Dutch companies operating in Hungary and for Hungarian companies wishing to do business in the Netherlands. I am confident that our ‘memberto-member’ approach is working well. Member companies appreciate our efforts to think beyond traditional networking and knowledge-sharing practices when it comes to professional thematic seminars in the area of legal issues, finance, tax, HR/leadership, real estate and logistics.”

Keeping up the good spirit There is a lot of competition between different bilateral chambers in Budapest, which raises the question why a company should opt for membership in Dutcham. “Although the relatively small Hungarian market leads to a healthy competition among the chambers for new members, we regularly join forces to organize bigger events for the joint memberships that create an inspiring atmosphere” the chairman says. He adds that Dutcham is one of the most active chambers of commerce in Budapest with 25-30 events on average a year. “The Netherlands is one of the top five investors in Hungary and Dutcham should represent the companies that contribute to this. As one of our board members put it: ‘Dutcham means for us sharing and caring and a lot of fun’. We do our best to live up to this and keep up the good spirit.”

Finding open doors for business Another aspect of the services provided by Dutcham is to help Hungarian companies that seek to establish a presence in the Netherlands and vice versa. Demand by such ventures for Dutcham’s assistance is unabated and the business areas where they come from covers a wide spectrum.

The chairman points out that “this year, we have received around 40 business inquiries from the Netherlands, from the most varied areas.

Major decisions are easier to make

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100 YEARS IN THE AIR

KLM TAKES SUSTAINABLE AVIATION TO THE NEXT LEVEL

The Dutch flag carrier is celebrating its 100th anniversary this October amid turbulent times for the aviation industry.

The airline will need to rely on its commitment to adapting to shifting operational trends and embracing new technologies if it is to celebrate its bicentennial anniversary.

The Dutch propensity for traveling and exploring the farthest corners of the world has shaped the country’s history for centuries. As early as the 16th century, the Dutch extended their trade routes beyond northern Europe to new markets in the Mediterranean and began to trade with Brazil and the Dutch Gold Coast of Africa, moving ever closer to the Indian Ocean and the source of the spice trade, a lucrative business for European seafaring nations for centuries to come. It is little wonder that the Netherlands was home to KLM, one of the world’s first airlines, that allowed this wandering nation to reach far-flung places in considerably shorter times. Set up in October 1919 under the name Royal Dutch Airlines for the Netherlands and Colonies, KLM is the oldest airline in the world still operating under its original name. As the carrier celebrates its 100th anniversary this year, it is faced with an industry that is under increasing competitive and sustainability pressure.

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Industry pioneer “The secret behind our history is constant adaptation to the new reality by innovating and pioneering new solutions; otherwise we would not exist any longer,” Thijs Komen, General Manager for Alps, Balkans and Central Europe tells Diplomacy&Trade. Indeed, the airline has been an industry pioneer many times over. It launched the first intercontinental flight to Indonesia, then one of the Dutch colonies, in 1924. The journey took 55 days with numerous stopovers along the way, including Budapest. The 1936 initiation of w w w . d t e u r o p e . c o m

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service between Amsterdam and New York made KLM the first airline to connect mainland Europe with America, and the carrier was the first in the history of aviation to forge a joint venture with Northwestern Airlines (currently Delta), recognizing the economies of scale that determine the entire industry. The design of that joint venture has since been copy-pasted by many other airlines. The Air France and KLM merger in 2004 was also an industry first, as no flag carriers had previously merged into a single company while keeping their independent brands.

Flying responsibly At a time when the protection of the environment emerges as the biggest challenge for the aviation industry, figuring out how to fly in a sustainable manner is no longer a side issue. KLM, which has ranked at the top of the Dow Jones Sustainability Index for 14 years, increasingly positions itself as a leader in sustainability. “I’m convinced that demand for air travel will grow as people want to travel and explore. We feel a responsibility to work on sustainability because we know we are

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polluting. We can only survive another 100 years if we adapt to the scarcity of resources, limit CO2 emissions and look for alternative fuel resources,” Komen notes. Accordingly, the airline is now working on a ‘2030 and beyond’ sustainability strategy under which it aims to reduce CO2 emissions by 20% by 2020 and by 50% by 2050 compared to 2005. A cornerstone of that strategy is the purchase of new aircraft that are much more fuel efficient, like the new generation of Boeing’s Dreamliner 787, which is up to 40% more efficient than the previous generation. Additionally, KLM is redesigning the routes it flies and cooperates closely with air traffic control authorities worldwide to make sure it uses the most efficient routes.

Reducing weight also features high on KLM’s agenda and the company is investing in equipment made of lighter materials, like its onboard catering trolleys. On a long flight of 11-12 hours, 1,000 kilograms of extra weight account for 300 kilograms of fuel. As a pioneer in the use of alternative fuel, KLM launched its first biofuel flight from Amsterdam to Paris in 2011 and operated the first intercontinental flight with biofuel to New York in 2013. Flying on biofuel can reduce CO2 emissions by up to 80% compared to fossil fuels, Komen highlights. The airline is in cooperation with the Technical University in Delft to develop a next generation aircraft, called Flying V. The aircraft’s V-shaped design will integrate the passenger cabin, the cargo hold and the fuel tanks in the wings. Its improved aerodynamic shape and reduced weight will require 20% less fuel than the Airbus A350, today’s most advanced aircraft. A flying scale model

and a full-size section of the interior of the Flying-V will be officially presented at the KLM Experience Days at Amsterdam Airport Schiphol in October.

Do you really need to fly?

KLM’s open letter on responsible flying published in July this year caused an international sensation. The release invited “consumers to carefully consider their options before booking a flight,” marking the first time an air carrier encouraged travelers to look for alternative means of transportation. “Besides airlines taking a share of the responsibility, we as travelers also need to question ourselves: do I always need to travel and if I do, do I absolutely need to fly? The aviation industry, individual travelers and companies that have business travel all have to act responsibly,” Komen says. KLM’s ’Fly Responsibly’ campaign sends a message to travelers: if you fly you can compensate for CO2 emissions.

Individuals who make a booking on the KLM website have the option to compensate for the CO2 emissions of their flight and the proceeds go to a sustainability project chosen by KLM, which for the past few years has been the Panama reforestation project. Passengers can select the amount that matches the amount of CO2 burnt on their flight, which in the case of short flights is only a few euros. “The scheme has been in place for 10 years, but we still find that if given the choice to fly sustainably, only a few travelers go the extra mile. The number of people who choose to pay the compensation amount is currently below 1%, but I’m convinced this will change,” Komen says.

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THE BRAND HUNGARIANS LOVE MORE THAN FACEBOOK THE NETHERLAND’S FRIESLANDCAMPINA SHOWCASES COMMITMENT TO HUNGARY

The Netherland’s FrieslandCampina, one of the most prominent dairy companies in Hungary, is the producer of the nation’s favorite dairy dessert.

The company manufactures a chocolate-covered sweet curd snack that has been a household name in Hungary since 1968. In addition to manufacturing operations, the company also operates a service center in the capital.

FrieslandCampina, one of the world’s largest dairy cooperatives, is fully owned by the Zuivelcoöperatie FrieslandCampina cooperative, which has 18,261 member dairy farmers in the Netherlands, Germany and Belgium. All member dairy farmers are independent entrepreneurs. The company has branch offices in 34 countries, employs more than 23,000 people and its products find their way to more than 100 countries. “Being owned by the farmers who deliver the milk to us really defines the purpose of our company.

The company is an extension of the farms of our members, for them it’s not about next month’s results, they are in it for the long term,” says Pieter van der Velden, Director of FrieslandCampina Service Center EMEA. The farmers occasionally visit Budapest in small groups to familiarize themselves with the company’s premises and work processes.

“As one of our employees said last year: Here, I work for real owners with a purpose and people that I can talk to. This is very different from working for the second Ferrari of anonymous shareholders of a listed company.’ Our ownership structure makes us very unique,” Van der Velden notes.

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Despite dynamically growing wages and a pressing shortage of skilled labor, FrieslandCampina Hungária’s business performance is outstanding. “The sales turnover of the company has grown more than 30% over the last five years. Based on the dairy market and consumption trends, we forecast a similar organic growth rate for 2019 and the next years,” Szautner says, adding that high pressure on the Hungarian labor market is the biggest challenge for the company. FrieslandCampina has recently completed an investment at its factory in Mátészalka, as part of its 5-year investment plan, as it seeks to increase of the capacity of the factory by at least 30% by raising the level of automation and improving overall production efficiency. “These investments will result in increased capacity and improved capabilities also in terms of innovation, launch of new product categories, which is key to be able to further grow and develop the domestic market and the possible export markets, as well,” according to the director. FrieslandCampina’s portfolio includes close to 200 products, 90% of which are sold domestically, with some exports of finished goods sold in Romania and Slovakia. “In the coming years we would like to expand our export activities in the central European region, and we are also working on the roll-out of dairy snacks into other markets,” Szautner adds.

The dairy sector is a highly competitive industry globally and fast-changing dietary trends keep the industry on its toes, pushing players to constantly innovate their product offering. “Our Milli lactose free krémtúró (sweetened curd cream) was the first available lactose free product in Hungary within the dairy dessert category. In the last three years, we launched a lactose free range of our market-leader spoonable dessert, the lactose free range of Landliebe yogurts and the lactose free Pöttyös Túró Rudi.

Last year we introduced the Pöttyös 'Fitt' range with 30% reduced sugar content for consumers looking for a reduced sugar intake,” says the director.

COMMITTED TO HUNGARY

As proof of the company’s commitment to Hungary, FrieslandCampina opened a service center in the capital, the company’s third in addition to the ones in the Netherlands and Kuala Lumpur. The center covers the EMEA region and the U.S., offering finance processes such as general accounting, accounts receivable, accounts payable, and procurement activities, says Pieter van der Velden, Director at FrieslandCampina Service Center EMEA. “The concept was to start with the basics at first and prove to ourselves and our stakeholders that we can do

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find the right kind of people in time even though we do feel that it’s a tight labor market.

The fame of our products, like Túró Rudi as well as our unique company structure and culture were also a big help in the recruiting process.”

The executive also notes that finding skilled employees can be a challenge for business centers as “everybody is fishing in the same pond and whenever a new center opens people are approached and some move to new jobs.

On the flipside, however, as more and more centers open, the allure of Budapest is also on the rise and people from abroad start to take up employment here.”

this successfully, which we are proving every day. I expect we will move toward a global business services offering in the future, expanding our scope. These are infancy years, but we are growing up very quickly,” he notes. The headcount at the center is 230, made up of 16 nationalities, who cover 11 different languages. FrieslandCampina looked at several cities in Central and Eastern Europe before deciding on the location of the center and the main reason for choosing Budapest was the availability of talent, especially with respect to languages. “Looking back at the last two years, we have always been able to

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Ask any Hungarian if they would like a Pöttyös Túró Rudi and the answer will almost certainly be an enthusiastic ’Yes!’ The chocolate-covered sweet curd snack has been in circulation since 1968. The name comes from the Hungarian word 'rúd', meaning rod or bar but is also a nickname for the name Rudolf. Dutch dairy company FrieslandCampina is the owner of the Pöttyös brand, which initially produced this national favorite. “Pöttyös Túró Rudi is among the products with the highest penetration in Hungary and according to research

by Milward Brown carried out in 2013 and 2015, Pöttyös is the most beloved Hungarian brand, ahead of Coca-Cola, Facebook or Milka,” says Péter Szautner, Managing Director at FrieslandCampina Hungária Zrt.

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“Moderation and health are getting more and more important for our consumers. We also want to encourage people to drink moderately and to enjoy our products responsibly,” says Geert Swaanenburg, General Manager at HEINEKEN Hungary, which owns the Sopron brewery. “Growth in this segment is really strong, making Hungary one of the countries in Europe with the highest share of 0.0 beverage sales. We are very happy with the trend and we continue to innovate in this segment to give our consumers great tasting non-alcoholic beers and radlers, like Heineken 0.0 and the Soproni Radler range,” Swaanenburg notes.

The world’s second-largest brewer has about 159 products in its 0.0 beer range and expects the global non-alcoholic category to grow by 2.3 per cent between 2017 and 2020.

To highlight its offering of non-alcoholic beverages, HEINEKEN Hungary introduced a shop floor activation program called 0.0% Zone. The company presents all its non-alcoholic products in coolers, displays and shelves in close proximity to ensure that consumers have a convenient access to all its non-alcoholic beers in one place.

Going premium Even though overall beer consumption is not rising spectacularly, the premium category booked a surge of 24% in sales last year. “Our consumers are more appreciative of premium beers. We see a growing demand for more premium lager and a preference for premium craft beers. HEINEKEN Hungary’s premium range of international craft beers, like Mort Subite and Edelweiss, as well as high-quality local craft beers like IPA and APA from Soproni were the first steps to introduce exciting products to the Hungarian market,” Swaanenburg says. The new products require different brewing innovations and techniques and HEINEKEN Hungary is implementing these developments in addition to expanding brewing capabilities at its Sopron Brewery, which will celebrate its 125th anniversary next year. “With the Óvatos Duhaj family, which is a true Hungarian success, we’ve shown that a strong local quality beer brand can rally a large consumer base behind exciting new segments such as Fruity beers and top fermented ones. Our latest draught beer innovation is called BLADE, which is a compact, high-quality draught machine allowing even the smallest beer selling outlets to offer consumers high-quality draught beer. It doesn’t only serve top quality beers, it also looks amazing: a true revolution in draught,” the General Manager says.

FIZZING WITH INNOVATION

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HARGITAY/WWW.OLIVERHARGITAY.HU, TIBOR SZUROK

HEINEKEN FOCUSES ON ALCOHOL-FREE AND INNOVATIVE PRODUCTS

Every drop counts When it comes to sustainability and environment protection, HEINEKEN shows impressive results.

The company has slashed its carbon-dioxide emission per liter of beer by 50% over the last 10 years and continues to search for ways to minimize its footprint further. It has launched a competition for students, called ‘Drop the C’ which aims to collect new ideas how to further reduce CO2. The slogan ‘Every drop counts’ is taken literally by HEINEKEN as the company continuously works to reduce the amount of water needed during production. Today it uses 3.3 liters of water to brew 1 liter of beer in Sopron, which is already 23% less than 10 years ago but the goal is to cut the amount further. The Dutch venture also works with the Hungarian Interchurch Aid to give less privileged families and communities the opportunity to develop their independent businesses through growing hops. “Currently, there is no hop agriculture in Hungary, which means we need to transport it all from abroad. Being able to source it locally and use it for our domestic beer brands is not only helping local communities, it will also further reduce our CO2 footprint. After one year of preparation, in November 2018, we planted hop on one hectare at Kastélyosdombó, a less privileged area of the country. Our goal is to buy the hop at market price and give these families a sustainable income. We are at the beginning of this journey and it will take several years to build a sizable hop supply, but every journey starts with the first step,” Swaanenburg says.

As health consciousness is gaining ground worldwide, brewers are hopping on the innovation wagon to keep up with shifting consumer demands. HEINEKEN Hungary is developing novel brewing techniques at its Sopron Brewery as focus shifts toward premium products and alcohol-free beers.

Beer and Sopron share a history spanning several centuries. The western Hungarian city, which has been the center of one of Hungary's historical wine growing regions since the Middle Ages, was home to the First Sopron Brewery and Malt Factory, established in 1895 by local beer merchants and the owners of the Brünn Brewery. However, historical records show that the Town Council regulated local beer sales in the pubs as early as 1523. Under a decree issued by city officials, Franciscan friars rang w w w . d t e u r o p e . c o m

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the bells at 8 p.m. to let townspeople know: no more beer sold after the sad sound of the "beer bell". Although the beer bell has long turned into a historical curiosity, an increasing number of Hungarians are shying away from or cutting back on alcohol consumption as people seek healthier lifestyles and all things “wellness” remain firmly in fashion. The consumption of alcohol-free beers surged by 25 percent in 2018 from a year earlier in Hungary, amounting to nearly 23 million pints, according to data from the of Hungarian Brewers Association.

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PHILIPS’ VISION FOR A HEALTHY FUTURE THE ANSWER LIES IN DIGITAL TECHNOLOGY AND ARTIFICIAL INTELLIGENCE

Countries in Central and Eastern Europe display signif icant local differences in their healthcare systems and the delivery of healthcare services. Aging populations and the increase in chronic epidemic diseases shifted the focus at Philips to health and healthcare and the company relies on the latest developments in digitization, big data and artif icial intelligence to design solutions for a healthy future.

good accuracy. It seems unreal, but by means of artificial intelligence it is possible to prevent such falls. Therefore, I am convinced that artificial intelligence can overcome the lack of medical personnel. It will never replace the doctors, but it will help them tremendously,” Schlatmann says.

Solutions for the future Many countries are struggling with a lack of doctors and the rising age of healthcare professionals. According to the executive, the solution to this issue is offered by innovative technologies, digitization and artificial intelligence. For instance, partially pre-evaluated analysis can save time for a physician, artificial intelligence and mobile applications can be used for screening and prevention even at home.

Telemedicine can positively influence care for patients in rural areas with less access to healthcare facilities and it can help the elderly, pregnant women or young parents to reach out for care without having to travel to a medical facility.

Set up 128 years ago by Gerard Philips and his father Frederik, Philips started out as a family business. Their first products were the Philips light bulbs, which went on to change history. Up until that time, mainly oil lamps were used for lighting purposes, carrying the risk of fire and polluting the air. Factorymade, affordable lamps and light bulbs not only eliminated these risks, but also allowed people to work longer or educate themselves in the winter months. Other products soon followed. Over the last century the Philips product range included for example screens, televisions, video recorders and players, and mobile phones.

Philips has published the Future Health Index for four years. This year’s edition, which is based on a survey of 15,000 individuals and more than 3,100 health care professionals across 15 countries, focuses on the impact of digital technology on healthcare professionals and patients. Schlatmann emphasizes that while a few years ago, medical professionals had reservations when it came to digital technology and artificial intelligence, this has changed rapidly. Doctors are increasingly willing to use these technologies, seeing the benefits they bring. According to the Index, 76% of surveyed healthcare professionals are using digital health records (DHRs), 61% use telehealth and 46% use AI technologies in their hospital/practice. Patients also like digital technology because it provides them with information about their health and because these technologies help them receive better care and therapy. 63% of individuals, who do not currently have access to their Digital Health Records (DHR) said they would like to have access to them while 82% of people who have access to their DHR rate their personal experience with the care they receive as good, very good or excellent, compared to 66% without access to their DHR. “This shows a clear shift toward openness to eHealth technologies. We in Philips aim to be a partner for healthcare professionals and patients on their journey to digital healthcare,” Schlatmann concludes.

Focusing on health About ten years ago, Philips started to focus on health and healthy lifestyle. As the company had previously been active in the field of medical technology, the management decided to focus primarily on products improving the quality of life and health care, says Reinier Schlatmann, Philips CEO in Central and Eastern Europe. Statistical data show that the population is aging and that humans face an increase in chronic epidemic non-infectious diseases. Innovations offered by Philips are related to healthy diets, the science of sleep, early diagnosis of serious diseases, such as cancer, and home care. Digitization in health care is an important trend allowing the hospitalization period to be kept to a minimum as the patient can be treated and monitored at home. “Healthcare professionals are very open to using new technologies. In each country in the region, I have experienced something unique, a ‘best practice’. In Estonia for example, the healthcare data is 100% digitized, Montenegro has the lowest mortality rate in the world, and Poland has excellent cardiac care,” Schlatmann notes.

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The power of digitization Digital technology makes it easier for doctor and patient to connect. Patients can share data with their doctor without visiting a hospital, and hospitals can share information among themselves. Doctors don’t need to go through long medical histories, all essentials are included in the digital record, which speeds up the diagnostic-therapeutic process.

Digitization contributes to improving the availability of care in places with decreased accessibility to healthcare providers and helps people with reduced mobility. In intensive care units, digitalization and artificial intelligence help analyze data and monitor patients based on the evaluation of a high number of cases with similar findings thus contributing to the safety of the patients in the ICU. Digitization

will facilitate laboratory diagnostics, for example by automating the evaluation of biopsy samples. Final interpretation is up to doctors, but artificial intelligence can draw attention to specific elements and save time for doctors to concentrate on their patients.

Artificial intelligence Many Philips solutions are based on artificial intelligence. For instance, in the United States, Philips is using an application that estimates the risk of falls in the elderly based on data about a certain type of behavior. A bracelet-like device recognizes when the person wearing it falls and the device calls for help. “These applications have been analyzing data for fifteen years, so Philips is now able to predict the likelihood of a person falling in the next twenty days with S E P T E M B E R

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People love technological solutions

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NN Insurance, initially called NationaleNederlanden, was one of the first foreign-owned insurance companies to enter the Hungarian market. Set up in 1991, the Hungarian office was the first foray of the Dutch company into the central and eastern European region, and it went on to become market leader in the life insurance segment within six years. Boasting a market share of about 17%, NN Insurance has retained its leading position every year since, exhibiting a spirit of “true entrepreneurship,” Sztanó says. Following a record year for the local insurance sector in 2018, when premium income surpassed HUF 1 trillion, the macroeconomic backdrop continues to be supportive. “Unless there is a significant change in international markets, Hungary will continue to do well, and the insurance sector will also do well.

We generated double-digit sales growth last year.

Growth is driven by the market environment, but customer behavior is also changing; people are becoming more conscious about their financial future and self-care,” according to Sztanó. While the insurance sector in the CEE region is still behind Western Europe in terms of penetration rates, customer expectations regarding ease of use, access and understandability as well as relevance are similar to those in more developed markets, the executive says. Clients tend to differentiate less and less between sectors, they expect the same smooth service and customer experience from banks, telecom and insurance companies, and online shops. “In this regard, there’s definitely a convergence between the CEE and western Europe.”

EMBRACING THE FUTURE NN INSURANCE CONFIDENT ABOUT THE DIGITAL AGE

Staying ahead of the game in the digital age requires constant innovation and a flexible mindset when it comes to business opportunities, says Imre Sztanó, Chief Executive Off icer of NN Insurance Co. Ltd. in Hungary.

The country’s largest life insurance provider relies on cutting-edge technologies and innovative organizational changes to hold on to its leading position in the market.

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HARANGOZÓ

Innovation in the forefront In a fragmented market like Hungary, where more than 20 insurance companies are vying for a slice of the cake, innovative products and digitalization are the key prerequisites for successfully retaining customers and engaging new ones. National Bank of Hungary data published in the first quarter of 2019 show that there are less than 2.5 million life insurance contracts in Hungary, which is a fairly low number in a country with a population of nearly 10 million. “There is tremendous potential in the market, and this is the reason we are looking for new ways of engaging customers,” Sztanó says.

NN Insurance’s strategy focuses on digitalizing the sales and operations processes, novel ways of engaging customers, and long-term innovations.

Despite new technologies coming onboard with astonishing speed, NN Insurance is a firm believer that human interaction will remain critically important when making long-term financial decisions that affect a significant amount of money on the customer’s side. However, the format will be changing going forward as these interactions will become increasingly digitally equipped. The company decided to digitalize the tied agent, or the so-called face channel, experience and made the paper-based sales process fully digital. In addition, it automatized the underwriting process and now one-third of all incoming proposals go through automatized underwriting, slashing the processing time in certain cases to 10 minutes instead of the previous 13 days.

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online experience. ”We are looking at engaging customers who have not considered going to an agent or purchasing insurance. We came up with value propositions that are online by nature, have the engagement element and create very different customer interactions. The conversation doesn’t necessarily start with the product, but rather a life situation or a circumstance that will eventually lead to the insurance itself,” Sztanó says. A prime example is NN Insurance’s mobile application for runners called runaddict that offers Hungaryspecific benefits for leading a healthy lifestyle.

Runners can collect points, which can be used for discounts at retailers or to choose an insurance.

The app, downloaded by some 25,000 people, provides a small, sum-assured insurance that allows policy holders to get a first-hand experience with additional assistance services, like a 24/7 medical call center and a trainer line that can offer advice. The company’s on-demand insurance, called protect.me, is another means of engaging customers who are not looking for a traditional insurance policy. protect.me provides insurance on an hourly basis, if so requested, and offers coverage for more than 140 activities, including action sports like kitesurfing. “These

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innovations have been developed in Hungary, for the domestic market, and the NN Group is considering using some of these solutions in other markets,” Sztanó says.

Staying ahead of the game also calls for looking at a wider time horizon. SparkLab, NN Insurance’s innovation hub does exactly that.

It is an open-platform innovation hub set up to identify initiatives that are related to insurance but come under the umbrella of improving quality of life. “With the emergence of new technologies, ecosystems are being developed around certain initiatives and I believe that insurance companies can play a role in many of these ecosystems.

For example, a tremendous amount of data is being generated with IoT devices, and while data protection is very important, customers will want to benefit from this data generation. If they play smartly, insurance companies can play a critical part in this arena,” Sztanó says.

Going agile Sztanó believes that technology in itself is not an answer to the challenges posed by today’s digitally-driven age, an organization needs to be able to create value by using a specific

technology. He notes that a large proportion of digitalization projects fail in large companies because they don’t start with clarifying their concrete objectives, and they don’t set up an organization that can implement the digital transformation. NN Insurance chose the agile at scale framework as the key method of transformation. The journey started 3 years ago with a small pilot project, then bigger ones followed. The company already sees some great results: the first important agile milestone was the automation of the underwriting process. “The idea met with a lot of skepticism on the part of colleagues. I personally believed that we could automate 6070% of all the underwriting processes but I only asked for 1%. We started an agile project and the team came back two months later and delivered the 1%. Now we are at 35% and I definitely think the original target is attainable,” Sztanó says.

As regards reaching the finish line of the journey, Sztanó is in no rush. “You can’t design an agile framework and stick to it no matter what; you need to adjust on the go, and we do that as we learn. It's a continuous development and a neverending journey.”

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dutch focus this scale from below, according to the chief executive. “Either owners will be satisfied with subpar results or they will be forced to combine forces. Aegon is interested in such transactions as a consolidating player. We are focusing on driving profitable sales growth and sustainably growing our capital generation.

In the Hungarian market we are also open to innovations or bringing new platforms, new technology and new business models, which can be leveraged across the company,” Zatykó says.

Insurers are increasingly forced to reinvent themselves in an age where established business models are challenged by disruption caused by technology-driven new entrants and existing competitors alike. KPMG’s 2019 study on insurtech (coined from the words insurance and technology and inspired by the term fintech) warns that highly automated insurance platforms will become the new normal and successful incumbents will be the ones that adapt and adopt new technologies.

Aegon is fully aware of the need for digital transformation and that they must be one step ahead of events. The company continuously motivates its employees to come up with innovative solutions and also employs external consultants. The Aegon Hackathon 2018, organized in Mumbai, Budapest and Dallas, helped usher in a new wave of innovative ideas through the theme of Wealth and Health. After 24 hours of hacking, the innovators stood before a large crowd of leaders and guests to present their ideas and prototypes for the chance of winning the investment prize. “Last summer we launched one of the winning ideas of the Hackathon held two years ago: a new digital service in settling home insurance claims.

Clients themselves may record damages caused by storms and hailstorms online, and if they accept the amount calculated by the software, we transfer the money at once. The right balance between digital solutions and personal customer service is key, we must excel in both so that every client finds the channel most suitable for their needs,” Zatykó notes.

PLANNING SMARTLY AEGON URGES RAISING FINANCIAL AWARENESS

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the working population is inevitable, just as teaching children the basics about finances.

It is alarming to see the lack of widespread financial literacy. It is the responsibility of policymakers, educators, employers and other social institutions to make progress,” says Péter Zatykó, Chief Executive Officer of Aegon Hungary. Zatykó’s words are echoed by a working paper published recently by the National Bureau of Economic Research in which the authors argue that people with a deeper understanding of personal finance are likely to save more and be more proactive about participating in various retirement plans.

Aegon’s seventh annual Retirement Readiness Survey conducted last year and entitled “The New Social Contract: a blueprint for retirement in the 21st century,” is a compelling call to action. “It is now time for a new social contract; one in which we don’t only take stock of the change taking place around us today, but we also embrace the economic and social realities of tomorrow. In a world where responsibility

for preparing for retirement is shifting from governments and employers to individuals, we need to ensure that there is universal access to enable people to save for retirement,” according to the survey.

Expansionary mode Aegon Hungary, the country’s third largest insurance company in terms of income, is keeping an eye on the market for potential acquisition targets. The sector has almost 25 players and a study published by Deloitte earlier this year argued that consolidation is needed in the sector to boost investments and drive fees lower. Zatykó supports the findings of the study and argues that low investment yields, the increasing volatility of equity markets, and increasing control requirements point toward the importance of economies of scale and capital strength.

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Financial experts argue that dropping birth rates, emigration and the rise in life expectancy are set to render Hungary’s current pension system unsustainable in a matter of decades.

An even more worrying fact is that the Hungarian population is ill prepared to face the financial challenges stemming from the expected decline in state-provided pensions.

While assuming individual responsibility in financial matters, planning and saving for the future should play an ever-increasing role in retirement planning, only 27% percent of Hungarians set aside savings on a regular basis and the population still expects 54% of its pensions to be provided by the state, according to the annual Retirement Readiness Survey conducted by Aegon in 2018. “Careful planning and acting to meet one’s goals are not yet widely acknowledged. In a world where employees decide how much they want to save for their retirement and how to invest their savings, promoting financial literacy among

Besides building a name for itself as one of Hungary’s leading insurance companies, Aegon established its own arts award in 2006, which honors the best Hungarian contemporary literary work from the previous year. “By setting up the Aegon Literature Prize, Aegon differentiates itself from the competition, gives true value to the brand, helps clients to deepen their emotional connections with the brand, and takes a leading role in social responsibility. The Prize highlights the same values that are important for the company: trust, credibility, professionalism. We are proud that the Prize has become the most outstanding literary award in Hungary,” Zatykó says.

In addition to awarding literary accomplishments, the company publishes each year, in collaboration with the Association of Teachers of Literature and the Society of Literary Historians, a handbook that contains an introduction to the shortlisted literary works of the year to be used by teachers of literature. Currently, Aegon owns the largest collection of reading comprehension exercises in Hungary.

VALUSKA

A patron of the arts

Demographic trends and increasing life expectancy are putting the issue of retirement savings in the limelight.

Aegon is calling on all stakeholders to improve f inancial literacy and act in unison for the f inancial safety of millions.

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FUTURE-ORIENTED TRAVEL

DUTCH ENTREPRENEURS BALANCE DOING BUSINESS AND PROTECTING THE ENVIRONMENT

It was more than a decade ago that two Dutchmen, Jeroen van Drunen and Lennard de Klerk fell in love with the undulating hills of the Cserehát region in northeastern Hungary. It was clear to the two entrepreneurs that the location was an ideal venue for what they had in mind: eco-friendly rural tourism with a touch of luxury.

The Irota EcoLodge opened its door to guests three years ago and Van Drunen tells Diplomacy&Trade that the venture has so far been successful. “Our specific kind of accommodation, eco-friendly yet luxurious, attracts guests to the Cserehát region who otherwise might have chosen a different travel destination. This gives us an opportunity to spread the word about this beautiful but lesser known area. Our activities have not gone unnoticed: we featured in numerous Hungarian publications and TV programs, which shows that there is a vivid interest in future-oriented travel in Hungary.”

saw an even larger share of Hungarian reservations than before. Next to families and groups of friends, we have welcomed a growing number of mixed families, with one Hungarian partner and one foreign, who come to Hungary for family reunions and holidays. Hungarians living abroad like to spend their winter holidays here: instead of staying with relatives in sometimes cramped apartments, they prefer to book one or more of our houses and invite their Hungarian kin to Irota to celebrate Christmas or New Year together.

We realize this is a very complacent thing to say, but we are happy to see that our original business idea caught on. We sometimes have a good laugh about our initial understanding that our clientele would consist of foreign holiday makers alone, and even considered not having a Hungarian website at all. That would have been a crucial mistake!”

Call us idealists “Un-businesslike as it may sound, we are not here for profit optimization,” Van Drunen points out. Their objective is to show that tourism has a future without weighing on the environment and local communities. “Of course, we don’t aim to lose money, we have to make a living as well, but we strongly feel that any expansion of a tourism project in a village of 50 people destroys exactly what people enjoy here.

Moreover, our guests are not only happy with the extras we offer, but also with what they do

Family reunions, holidays The EcoLodge, tucked away in the remote village of Irota next to the Hungarian-Slovak border, consists of three spacious villas decorated in three distinct styles: rustic, 1960s retro and sleek contemporary.

Despite the secluded location, or perhaps because of it, guest numbers are on the rise. “This year, we

not find: a hundred other holiday makers right next door. Call us idealists (please do), but no, we are not looking to expand.”

Van Drunen stresses that the days when the climate crisis was an abstract concept are clearly over. “You only need to look at the last two summers we had in Europe (drought, floods, heat waves, forest fires) and it is more than clear that matters have spun out of control. People realize that sacrifices need to be made. It is not enough to blame politicians for their less than ambitious attitude: after all, we elect them. The same goes for polluting industries: we buy their plastics. More than ever, we need to take a stance and accept the harsh reality that we will have to give up some, and later maybe many of the luxuries we have become so accustomed to. One example: we have decided to stop flying within Europe.

This makes travel take longer and be more expensive. So be it.”

Raising a cheer Aegon proudly celebrates 175 years of helping people achieve a lifetime of financial security.

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SASI, LUKAS HOLZMEIER

www.aegon.hu or www.aegon.com

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financial perspective, the biggest Dutch banks such as ABN Amro, ING and Rabobank agreed on circular economy finance guidelines in order to accelerate investments in and funding for circular economy business models.

The Dutch government is strongly committed to the circular transition and understands that it can only be achieved with other countries and international partners, therefore the Cabinet is open to share its expertise and innovations in this field.

Last November the Dutch Embassy in conjunction with the Hungarian Ministry of Technology and Innovation and the Business Council for Sustainable Development in Hungary established the Circular Economy Platform, which now has more than 70 members. The Platform will hold a Circular Economy Summit with ING on November 28 in Budapest on financing possibilities and best practices of circular transition.

Integrated Water Management Solutions for Global Challenges With about one third of the Netherlands lying below sea level, the lowest point is 6.7 meters below sea level, water management is a critical issue for the Dutch. For years, sand dunes and sea walls have protected the country's coasts. The Dutch water sector focuses on the protection of the coast, as well as on water-saving systems and water recycling technologies.

As the supply of fresh water available to consumers is gradually diminishing, the Netherlands seeks to stay ahead of this challenge by exploring sustainable solutions to flooding and freshwater shortages. Dutch universities are renowned in the field of integrated water management and multi-disciplinary approach that balance social, economic, environmental and engineering needs, the ‘Building with Nature’ principle. The Budapest Water Summit, to be held in mid-October with a focus on preventing water crises, marks a great opportunity for the Embassy of the Netherlands to co-organize two dedicated side events. The Wetskills Water Challenge session on the 15th of October will feature innovative and out-of-box solutions for Hungary’s water challenges, developed by international students and young water professionals, while the Saline Agriculture session on the 16th will provide an insight on how to breed salt tolerant crop varieties, contributing to food security worldwide.

INTERNATIONALLY RECOGNIZED WATER EXPERTS • Dutch know-how and technology cover key aspects of the water industry, such as water management, spatial planning, water supply and water quality • The Netherlands ranks 5th worldwide in terms of global patents in the field of water purification • 99.9% of Dutch households have access to clean drinking water that is entirely chlorine-free • Around 2,000 companies are active in the Dutch water sector, which has an export value of EUR 18 billion • There is close cooperation between universities, NGOs and companies fostering research and development in the area of saline agriculture

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To ensure that in 2050 everyone has enough food and access to the goods they need, including clothing and electrical devices, the economy needs to become circular. In a circular economy, there is no waste because products are better designed, and materials are reused as much as possible. To achieve this, the Dutch Government has launched a program, aiming to turn its economy fully circular by 2050. This means that the country needs to cut back on its raw material use by 50% until 2030 as a first step.

The inventory of the PBL-Netherlands Environmental Assessment Agency shows that the Dutch economy has around 85,000 circular activities employing 420,000 people, representing 4% of all jobs. Currently, there are around 1,500 innovative initiatives in the Netherlands, predominately focused on new techniques in recycling, such as bottles made of recycled plastics, toys made from bioplastics based on sugarcane residues, and rugs made from recycled polyester. Other initiatives seek to extend product lifespan through innovative design, such as the modular designs by Fairphone and modular headphones that allow parts to be renewed, and moveable modular houses. Furthermore, there are some innovative business models, such as

subscriptions to bicycle and washing machine usage, and sharing platforms (e.g. Peerby and Snappcar).

The transition to a circular economy and zero-waste society requires a close cooperation between the central government, branch organizations, businesses, consumers, knowledge centers, regional and local authorities as well the international actors.

Last year five National Circular Transition Agendas were set up for priority sectors (Biomass&Food, Consumer Goods, Plastics, Construction and Manufacturing), resulting in 62 green deals concluded between stakeholders to solve complicated resources issues.

Another outstanding circularity example is the TNO-Dutch Knowledge Center for Applied Scientific Research, which collaborates with waste collectors to introduce new technologies to create chemicals from organic waste. As to the

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The Netherlands’ Ambitious Circular Economy Agenda

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THE MANY FACES OF THE NETHERLANDS

FROM CIRCULARITY TO HELPING THE NEEDY, THE DUTCH EXCEL IN MANY WALKS OF LIFE

An Agricultural Powerhouse

some from Belgium and Germany. The multinational FrieslandCampina is a world leading company and the proud producer of the Hungarian national treat Túró Rudi!

Cooperation in the agro sector includes all stakeholders: farmers/ producers, educational and training centers, universities, logistical centers, distributors, government, civil society and consumers. The Netherlands is very keen on having public debates on different policy issues in order to keep everyone informed and to know what the main concerns of citizens and entrepreneurs are. It enables the government to anticipate future trends.

The government launched its Vision on Circular Agriculture in September 2018, advocating sustainable farming, while remaining a world leading agricultural producer and exporter.

Circular agro food production is based on zero emission and can contribute to biodiversity and climate protection while also providing sustainable business models for farmers. Technology helps to foster these ecological processes. This policy framework is essentially a summary of the main challenges we face and some of the solutions that are at hand to secure local, regional and global food production and provide a basis for bilateral and multilateral cooperation.

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The Netherlands, one of the smaller EU countries, is the most densely populated member state with over 17 million inhabitants. Nevertheless, Dutch citizens and farmers make the most of such limited space. The country is the biggest exporter of agricultural products in the world after the United States, exporting EUR 75 billion worth of agro-food products, including vegetables, fruit, flowers, meat and dairy products.

The country boasts some impressive figures: one quarter of the world’s potato export; one quarter of all international trade in horticulture products, half of global trade in flowers, and two thirds of all flower bulbs traded worldwide originate from the Netherlands. On top of this, the Netherlands is the world’s largest seed exporter with annual exports worth approximately EUR 1.5 billion. Accounting for 10% of the Dutch economy and employment, the agricultural and horticultural sectors play a crucial role.

The secret formula behind the success and fame of the Netherlands is intersectoral cooperation. The keywords are

specialization, cooperation, innovation, logistics and entrepreneurship. Dutch agriculture has always been focused on trade and exports. In the 17th century, a system was established to supply the hundreds of Dutch commercial ships that sailed the world for trade. Produce from the fields had to be transported quickly to the harbors. The first truly industrialized zone focusing on food production was founded in that period; it was just north of the main port of that time - Amsterdam.

The Dutch must cooperate in order to survive and cope with low lands, water and tides, and this attitude spreads out to all sectors of economy. Their unique approach in the agriculture sector is called the “golden triangle”. It represents specific cooperation between agro-businesses (farmers and processing industry), the academic community and the government. Farmers are organized in cooperatives through which they obtain better conditions on the market, decrease their production costs and increase their profit. By organizing themselves in cooperatives, farmers make themselves material “sparring partners”. The dairy sector is a notable example. FrieslandCampina is a cooperative dairy company, 100% owned by its farmers, with most coming from the Netherlands and

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A GrandScale Dutch Charity Program for Hungarian Children

In the aftermath of the First World War, there were more than 20,000 orphaned children in Hungary and very little capacity in orphanages to host them. In addition to the immense war losses, misery prevailed at unimaginable levels. Several religious (primarily Protestant) civil groups and officials in the Netherlands and Hungary joined forces to organize a charity program known as the “Kindertreinen” (Children`s Trains). Among the key actors were Protestant bishop Géza Antal and his Dutch wife, the two daughters of Dutch theologian and former Prime Minister Abraham Kuyper, and J. P. Ph. Clinge Fledderus, the Dutch consul in Budapest. The first train left Budapest for the Netherlands in February 1920. Throughout the two decades of the program, 60,000 orphaned, undernourished and traumatized Hungarian children visited western Europe, of which 28,000 were hosted

by Dutch families Some stayed for a few months, others for years or even a lifetime. In many cases, strong personal bonds were established that are still cherished by the participants and their relatives on both sides. A portion of the charitable funds raised for the program were spent on building the Julianna Protestant Elementary School in Budapest (District VII) in 1926 that still bears the name of the Dutch queen.

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THE DUTCHMAN WHO FELL IN LOVE WITH HUNGARY ELROY THÜMMLER, THE MAJORITY OWNER OF A LOCAL VILLAGE

Meet the Dutchman who discovered the beauty of Hungary and decided to let the world know about these wonders.

Sziget Express trains, scheduled train rides for festival goers from the Netherlands wishing to come to Budapest’s Sziget Festival. ”My company developed into a specialist on festival promotion combining marketing, sales, PR and services. We used the intelligence we gathered from social networks, client services and field promoters to create agile campaigns and add services that Sziget didn’t offer. When people complained about safety, we installed lockers and offered guarded camping.

To increase involvement, we organized warm up parties and we even had a stage at Sziget where we involved the Dutch artist scene,” Thümmler notes.

Thümmler’s next project gained him national recognition in Hungary. He purchased all the

in the future we make money out of it, we will re-invest the proceeds in the project. I think we made the first steps of putting the event and the region on the map. The future is all about the cultural and ecological development of the village,” Thümmler concludes.

houses in the remote, dead-end village of Bedepuszta, north of Budapest, except for two.

Having spent close to EUR 2 million on the project, Thümmler wants to create an ”event village” for companies to rent the whole village for team buildings and for his own events, like The Great Yonder, which is the melange of a retreat, an artist holiday camp and a festival.

“I spend almost half of the year in Bedepuszta.

This is not a plan that found a place, but a place that found a plan, I just fell in love with the place,” he says. Organized for the first time this year, The Great Yonder is more of a promotion campaign for the Bedepuszta Project than a festival. “The Great Yonder is a gathering of people in a beautiful spot without a fixed program. Artists meet artists and create. The PR in the Netherlands was fantastic; all the papers wrote about it, the De Volkskrant newspaper dedicated five pages to it. Obviously, it’s not a commercial festival, if

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THÜMMLER

The fall of the Iron Curtain and the opening of borders attracted many adventurous western Europeans to the east to discover the countries liberated from the yokes of Communism. Elroy Thümmler, a Dutchman with a curious mind and an open heart, was one of the early visitors to Hungary and quickly fell for its subtle charms and the spirit of freedom engulfing the country. “At that time young people were less subcultured, everything seemed possible: horse shows at night, parties in a church, restaurants open till early morning. Meanwhile, the old regime police stood back because they didn’t know what was allowed and what was not. Everything was cheap and everybody believed that the future was going to be great.

Vibes were high,” Thümmler says.

With a keen business sense and entrepreneurial spirit, Thümmler seized upon a market niche and in 2008 started organizing the so-called

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A PAINTER OF EMOTIONS HOLLAND AND THE WORLD MARK 350 YEARS SINCE THE DEATH OF REMBRANDT

This October marks the 350th anniversary of the death of Rembrandt van Rijn, generally considered one of the greatest visual artists and the most important painter in Dutch art history.

the story but rather depicting of the character of the participants, the expression of their feelings – not with the pathetic gestures common in the Baroque era but through the manifestation of real human emotions,” according to Tátrai.

Operation Night Watch Rembrandt’s best-known painting is probably ‘Night Watch’, which is also one of the world’s most famous works of art. The painting, completed in 1642, is the property of the City of Amsterdam, and it is the crown jewel of the Rijksmuseum in Amsterdam, where it is admired by more than two million visitors each year.

This July, the Rijksmuseum started Operation Night Watch, the biggest and most wide-ranging research and conservation project in the history of Rembrandt’s masterpiece. Its goal is the long-term preservation of the painting. The entire operation takes place in a specially designed glass chamber allowing visitors to watch the restoration works.

Translating into paint In an article for The Art newspaper, Dutch art historian Simon Schama points out that what Rembrandt added to the standard Renaissance vision of painters was “the drama of its translation into paint (and etched line); a drama to which he shamelessly and repeatedly drew attention. What, after all, was his prodigy piece, ‘The Anatomy Lesson of Dr Nicolaes Tulp’ (1632), if not a a living meditation on dexterity, a treble epiphany: first, the indication of the dissected flexor muscles and tendons; second, Tulp’s demonstration of their action with his own hand; thirdly, the painter’s dramatization of a moment of learning amid a company of the astounded.”

Rembrandt and the Dutch Golden Age

WHERE AND WHEN

REMBRANDT & THE GOLDEN AGE EXHIBITIONS AMSTERDAM

• Rembrandt's Masterpiece from the Israel Museum, Joods Historisch Museum 13 September - 10 November 2019 • Laboratorium Rembrandt, Rembrandt House Museum 21 September 2019 - 16 February 2020 • Rembrandt-Velázquez, Rijksmuseum 11 October 2019 - 19 January 2020 DELFT

• Pieter de Hooch, Delft Master of the Dutch Golden Age, Museum Prinsenhof Delft 11 October 2019 - 16 February 2020 HAARLEM

• Cool waters, Westfries Museum Hoorn 26 October 2019 - 26 January 2020 LEIDEN

• Young Rembrandt, Museum de Lakenhal 3 November 2019 - 9 February 2020

photos by DÉNES

JÓZSA

MIDDELBURG

• Nicolaes Maes - Rembrandt’s Versatile Pupil, Mauritshuis 17 October 2019 - 19 January 2020 BUDAPEST

• Dossier Exhibition on Rembrandt, Museum of Fine Arts 19 September 2019 - 24 November w w w . d t e u r o p e . c o m

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Rembrandt’s unrivaled talent best manifests itself in the artist’s incredible knowledge of the human body and soul as well as the psychological processes that he was able to depict in a simple manner, says Júlia Tátrai, Head of the Department of Old Master Paintings at Szépművészeti Múzeum (Museum of Fine Arts) in Budapest. “He was not interested in perspective and he did not care about expectations. The finest example of this is his most famous piece, Night Watch. The guards he portrayed in the painting were not satisfied with the way they were portrayed. They said they had paid a lot of money and still could not be seen properly and did not occupy a prominent enough place in the painting. But Rembrandt was motivated by artistic considerations only and by his precise knowledge of the human body and soul.”

Rembrandt 350 years The Netherlands celebrates the 350th anniversary of Rembrandt’s death with a year-long program featuring exhibitions in several cities, including Amsterdam, Middelburg and Haarlem. The series of events will present a range of perspectives on this formidable Dutch master, his peers (such as Pieter de Hooch at Museum Prinsenhof Delft and Nicolaes Maes at the Mauritshuis), and diverse works from the Dutch golden age of wealth and wonder. Works never shown in Holland before will also be on display, such as an extraordinary painting by Rembrandt from the Israel Museum in Jerusalem, which visitors can see at the Jewish Historical Museum in Amsterdam. And, the Frans

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Hals Museum’s significant collection of 17th century paintings in Haarlem as well as a waterthemed exhibition at the Westfries Museum in Hoorn. These exhibitions provide a fascinating insight into this rich period and into Rembrandt, including some works rarely, if ever, seen.

A versatile artist Born in Leiden in 1606, Rembrandt spent the formative years of his career training in the art of painting. In 1624, he set up his own studio before moving to Amsterdam in 1631. The wide range of subject matter, including portraits and selfportraits, landscapes, allegorical and historical scenes, biblical and mythological themes, and animal studies, is testament to the artist’s unique talent. “His self-portraits are of particular interest: he scrutinized himself to learn about the fluttering of the human soul and the process of ageing that very much interested him. When painting biblical scenes, the point was not telling

Hungarians also had the privilege to admire 20 masterpieces by Rembrandt at a large-scale exhibition, ‘Rembrandt and the Dutch Golden Age’, organized five years ago by the Museum of Fine Arts in Budapest, in cooperation with the Nationalmuseum Stockholm, the Rijksmuseum and the Kremer Collection. “We placed great importance on presenting the Dutch-Hungarian ties of that era, like the peregrination of Hungarian students to Dutch universities and the history of origin of certain paintings. Our clear intention was to have an exhibition that presents as many aspects of Hungarian-Dutch relations as possible,” Tátrai, who was the associate curator of the exhibition, notes.

WATCH THE RESTORATION of Night Watch here

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offices in key locations across the CEE region, as well as project management services for a worryfree expansion into Central and Eastern Europe,” the CEO highlights.

Digital disruption is becoming the ‘new normal’.

As customer expectations shift rapidly in response to new digital technologies, project managers will need to work hard to stay ahead of the curve, according to Erdei. “DBH Group’s strengths in the field of project management allow us to support clients with an objective, professional approach in managing the many risks associated with complex projects and programs. In addition, we offer expertise to smooth our clients’ market entry that respectively increased market penetration in Hungary and other CEE markets.”

DBH GROUP, AN EXPERT IN BEING ‘FUTURE-READY’

“The only constant is change, and it is inevitable, as the old adage goes,” says Dr. Sándor Erdei, a seasoned venture capital and foreign direct investment professional, who is the founder and Chief Executive of DutchHungarian f inancial services provider DBH Group. The Executive tells Diplomacy&Trade that sustainability and digitalization are key in coping with the challenges of the ever-shifting world of international business.

Premium serviced offices The office market in Budapest is characterized by record-low vacancy rates and high demand coupled with limited space available. DBH has been an active player in the office market since 2007, specializing in premium serviced offices in the Hungarian capital. DBH’s latest development is the opening of an A+ class serviced office in early 2020.

The office space is located in the heart of the much sought-after BudaPart project, which is a mixeduse riverside development in the popular recreation and entertainment hub known as the Kopaszi Dam in southern Buda. The new serviced office is LEED and BREEAM accredited to meet rapidly growing demand for the highest sustainability standards.

Clients will benefit from DBH’s experience spanning several decades in the co-working/serviced office markets across the CEE region, the CEO stresses.

Venture capital investments Boasting abundant talent, highly motivated workers, and higher growth rates than the rest of Europe, the CEE region is a magnet for venture capital investors. “As a member of the Group, DBH Investment has identified numerous highly attractive investment opportunities for VC investors in currently underserved market segments in the CEE region. We are closing a new VC fund to help international institutional investors to benefit from lucrative sustainable investment opportunities in the CEE region. Our new VC fund is focusing on backing innovative companies that will radically improve sustainability in the chemical and pharmaceutical industry, while contributing to the global fight against climate change with cutting-edge technologies,” Erdei says.

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but also global players in need of deeply-rooted and instantly available local expertise. The close integration of all services allows us to generate much-needed synergies, thereby helping our clients to progress to the next stage of their corporate growth journey,” he points out.

Boutique corporate services provider DBH Group is one of the boutique corporate services providers in Hungary and in the greater CEE region. Tight labor markets render the hiring of highly skilled and experienced accountants who can handle complicated IFRS and local GAAP requirements more challenging than ever. Finding a bi- or multilingual accounting expert who can ensure that critical information does not get ‘lost in translation’ is an even taller order.

Shared services help companies of any size to boost their efficiency and slash costs. While the objective

Besides managing DBH that he set up 25 years ago, Dr. Sándor Erdei is also active in other areas. He is a member of the advisory board of his alma mater, the Maastricht School of Management. After serving as a board member at the Hungarian Venture Capital Association and a committee chairman at the American Chamber of Commerce in Budapest, Erdei has been the vice chairman of the Hungarian Association for Innovation since spring this year. Some may say that all these tasks could be more than enough for a single person, but Sándor Erdei believes that one cannot live a full life by being successful in just one field. That ‘other’ – better say the primary – field for him is family life. He is the proud father of five children aged between 4 and 11. “It gives me more satisfaction than any business achievement if I can ‘serve life’ by raising and educating my five children with devotion,” he says.

of serving clients with cost-effective, high-quality processes will remain in place going forward, the way corporate services providers operate is also undergoing fundamental change. Organizations seek to move up the value chain by improving and adapting new operating models for better results.

Disruptive forces such as artificial intelligence, automation, and cloud services are playing a key role in (re-)shaping the corporate services industry, Erdei says.

Fully integrated service package “Our finance and accounting teams are in the vanguard of digitalization and have implemented streamlined electronic workflows. Our seasoned experts are fluent in English, and in many cases in German and other global business languages.

DBH’s corporate services offer a fully integrated service package also including premium serviced S E P T E M B E R

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The transformational power of digital technologies is uprooting the way people live, work, and communicate. As more and more firms seek to expand their global footprint, new developments in technology, trends, and business models are redefining professional services and investments. DBH Group is a central player in providing key support to international companies active in Hungary and the CEE region as they tackle the challenges of the 21st century, Erdei says. DBH is active in the field of corporate business services, serviced offices and venture capital with a focus on sustainability in all areas.

“Over the last decade, the corporate services industry in the Central and Eastern European region has enjoyed rapid growth. Demand for corporate services will increase further as more investors enter these markets. We offer a comprehensive professional services package to start-ups, SMEs,

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RIDING ON INCREASING DEMAND

Managing the workforce Recruiting and retaining the labor force has become a serious issue for manufacturing companies operating in Hungary. Attila Vass agrees, saying that available labor is one of their major issues. “One of the most important things for us is to provide our colleagues with a workplace where they feel good and know that they are valued. We believe in the importance of the information flow upwards and downwards, which means that besides a competitive compensation package, we work to improve our workplace environment inside and outside of the building. We would like to create a comfortable workplace.” He adds that seasonality requires heightened flexibility on the part of the company due to the huge difference in demand between the first and the second half of the year. “Therefore, we use temporary workers for 6-7 months of a year.

We have also started to cooperate with other companies having different peak seasons to manage the work force demand.”

ACCEL’S HUNGARIAN SUBSIDIARY PRODUCES EUROPE’S TOP BIKES

The small Hungarian village of Tószeg near Szolnok is a rather unusual location for a bike manufacturing plant that produces some of Europe’s most sought-after two-wheelers. Yet, it is exactly here that Accell Hunland Ltd., a unit of the Dutch Accell Group, started operations in 2001 as a greenf ield project. The annual production capacity is 300,000 mid and high-end bicycles and, especially in recent years, e-bikes.

“In the early 2000s, when Accell Hunland started its operations, traditional bikes were in demand – mostly on the German market. Since then, the bike industry has gone through a huge transformation. The biggest leap happened in 2009 with the introduction of electric bikes, which spearheaded the increase in demand for the factory’s products, a demand that has been growing by 15-20% a year in the last couple of years,” Attila Vass, Managing Director of Accell Hunland Ltd. says.

High-quality products Accell Hunland’s main focus gradually shifted from the German market to most of the Western European countries. It began to produce almost all major brands including Winora, Ghost, Lapierre, Haibike and Raleigh.

Some of these are high-end bikes, like the Haibike Xduro AllMtn 3.0. “We are part of Accell Group, which is one of the market

leaders in the medium and high-end bike market in Europe, so we are taking quality very seriously. Of course, cost is also an important aspect of our operation, so we are focusing on continuously improving productivity,” Vass adds.

Why need a new bike?

The executive points out that the bike industry has undergone tremendous change, not only because of the appearance of electric bikes, but because there has been a sharp increase in demand for mountain bikes, trekking bikes and other specific categories. Materials and design innovations have led to bikes becoming more and more lightweight, and the different brake solutions have made bikes safer to use.

“And let’s not forget connectivity, which is a call word in our industry as well.”

Consumers’ focus has also shifted to more personalization and expression of self. People want to change their bikes not only because

Sustainability and social responsibility As climate change and environment protection increasingly take center stage in public discourse, the use of bicycles is increasingly regarded not only as a healthy means of transport but also a way to care for the environment. The executive stresses that sustainability is a key consideration in the new product innovation process and in manufacturing as well. “In order to reduce our manufacturing footprint, we have introduced led lighting in our buildings, and we operate selective waste collection. We have also been improving our painting technology continuously. As a next step, we have looked into the use of solar cells to provide the electricity needed for manufacturing. Accell Hunland has recently donated some of its products to a welfare institute. This move has been part of the social responsibility policy of Accell Group to support local governments and communities in their activities connected to environmental issues or sport activities,” he adds.

of a new feature or lighter weight, but also to have a frame in a different shape or color.

Innovation Maintaining and improving market position among electric bike manufacturers requires agility and constant innovation. Vass highlights that Accell Group is famous for its innovations in the bike industry and “we were one of the first producers to step into the electric bike market. Our Innovation and Technological Centers (I&T) are located in Germany, France and the Netherlands.

They are providing us with cutting-edge designs for the new bikes and they are implementing new and innovative bike components for our new products. The factory’s responsibility is to provide information to the designers on the best solutions for assembly. Design For Manufacturing (DFM) is becoming more and more important to meet our high quality and productivity standards.”

ACCELL GROUP

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photos by ACCELL

HUNLAND

Accell Group focuses on the mid-range and higher segments of the bicycle market as well as bicycle parts and accessories. It is the European market leader in e-bikes and Europe’s second biggest producer of bicycle parts and accessories.

Its bicycles and related products are sold to dealers and consumers in more than 80 countries worldwide.

Well-known bicycle brands in the Accell Group portfolio include Babboe, Batavus, Ghost, Haibike, Koga, Lapierre, Raleigh, Sparta and Winora. XLC is the brand for bicycle parts and accessories. Accell Group employs approximately 3,300 people across 18 countries. In 2018, it sold around 1.1 million bicycles and recorded a turnover of over EUR 1 billion.

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PUSHING THE BOUNDARIES OF ENERGY EFFICIENCY SHELL HAS BEEN ACTIVE IN HUNGARY FOR CLOSE TO A HUNDRED YEARS

Shell Hungary is one of the biggest international fuel retailers in Hungary operating 189 gas stations. The company is propagating a low-carbon mindset worldwide and invests heavily in clean energy solutions.

we are investing approximately USD 2 billion in renewable projects worldwide. Recently, we acquired the battery company ‘sonnen’ in Germany and we announced our return to UK offshore wind farms. In line with our global ambition to reduce the carbon footprint of our retail stations by 20% by 2025, we acquired NewMotion, a company with 30,000 electric car charging points across Europe and joined the IONITY consortium, which installs high performance fast chargers at fuel stations across ten European countries, including Hungary. We are one of the largest biofuel investors worldwide, working on building a European LNG filling station network, and we are also building a network for hydrogen powered electric cars in Germany. Depending on the country, we have many alternative fuels in our offer, and the next decade will show which will be the economically viable alternative for our customers. In the framework of the Shell Eco-marathon student innovation contest, we inspire Hungarian students to constantly push the boundaries of energy efficiency.”

Stopping at a gas station is no longer only about buying fuel. Customer expectations for an exclusive experience have impacted a great many industries, from service providers to retailers and the fuel industry is no exception. Shell, like many of its industry peers, strives to greet drivers with an array of services at their sites. “As the Hungarian market is very competitive, we strive more than ever to provide a unique experience for those who come to a Shell site. According to our global Retail strategy, we continue to develop our non-fuel offer and that is why Shell redesigned its fuel sites, created new shop formats and launched the deli by Shell brand, offering a new food selection. We aim to provide a nice and energizing environment at Shell retail stations,” says Andrea Bujdosó, Country Chair & Retail Sales Manager at Shell Hungary. Shell has signed up Hungarian culinary celebrity Fördős Zé as the ambassador of its deli by Shell brand, proving that the gastro revolution has engulfed gas stations as well.

Science, technology, engineering, mathematics Globally, Shell supports young people to pursue careers in STEM (science, technology, engineering, mathematics) through its Shell Eco-marathon global program. “It is a competition for STEM students to design and build ultra-energy-efficient cars, and then take them out to the track to see whose vehicle can go the furthest on the least amount of fuel or energy. The competition allows students to work in teams collaboratively, use cutting-edge technology, critical thinking, and innovative ideas. We support energy efficiency as developing new sustainable technologies is a key challenge for the growing demand for energy. Several teams from Hungary have taken part in the European competition for many years now, and they proved that they have the skills needed to contribute to the future of mobility,” the Country Chair adds.

A relationship of nearly 100 years

As part of its sustainability strategy, Shell seeks to improve its business on every level of operation and shape a more sustainable energy future. “Our ambition in retail means, for example, that by taking a leadership position on cleaner fuels, we will

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significantly increase the amount of low emission fuels we offer to our customers around the world in order to achieve a proportion of 20% within the total amount of fuel sold. We will also reduce the carbon intensity of Shell retail stations by at least 50% through low CO2 design, equipment and operations and by embedding a low-carbon mindset. We are committed to reducing, reusing and re-purposing the waste from our sites. In Hungary, we have already taken steps by getting rid of straws and selling sandwiches in degradable packaging at all our filling

Supporting local communities through initiatives based on local needs is an integral part of the company’s sustainability program.

“In Hungary, we cooperate with the Peter Cerny Foundation, which operates the Neonatal Emergency Ambulance Service. Besides providing fuel for their ambulances, we also actively involve our customers, employees and partners in the initiative. Our goal is to sensitize society. Shell contributed to the purchase of a new ambulance and also prepared a Facebook video series with the foundation educating people on how to behave around and help ambulances in action,” she notes.

stations. We also switched to LED lighting and replaced refrigerators with energy-saving ones everywhere, while most of our retail stations are already powered by renewable electricity,” Andrea Bujdosó says.

A more sustainable energy future Besides responsible operations, Shell’s priority is to build a more sustainable energy future. The executive emphasizes that “in addition to continuously improving our fuels for cleaner and more efficient performance, S E P T E M B E R

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Low-carbon mindset

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Shell entered the Hungarian market in 1925 and the company has been one of the leading fuel retailers in the country ever since. “We helped develop the Hungarian fuel market, and this country was among the first ones globally where we launched our differentiated fuels, the premium Shell V-Power,” Bujdosó says. Shell also introduced forecourt services in order to serve customers while refuelling and help them to choose the right kind of fuel. Complying with changing consumer needs has been the main driving force for developments at Shell.

“According to our global ambition, half of the margins of Shell Global Retail business will come from non-fuel products by 2025. As we grow our convenience food and drink offer, we also recognise that people are increasingly eating and drinking on-the-move. That is why we are striving to minimise the environmental impact of our customers disposing their food and drink packaging on-the-go,” the executive notes.

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STRIVING FOR POLE POSITION

DUTCH ENTREPRENEUR RABEN’S HUNGARIAN SUBSIDIARY AIMS TO BE INDUSTRY LEADER Raben Trans European Hungary Ltd. was established in 2010 although its Dutch parent company was set up almost nine decades ago. Today, the Raben Group provides transport and other logistics services all over the continent with branches operating in 12 countries, employing about ten thousand people.

Innovative solution Expansion alone is not sufficient for staying ahead of the competition. Árvai highlights that “in 2018, we made a lot of effort to improve our service quality and invested heavily into our IT systems. We also asked our customers what important developments they would like to see in our services. Based on their feedback, we developed the concept of providing ETA (Estimated Time of Arrival) – meaning that we provide information in advance on the expected arrival of deliveries to our customers in the German market.”

Thanks to this solution, customers and consignees of the company will also receive information about the current location of their shipments. Raben’s online communication (GPS/eGPS) interface connecting the driver of the vehicle and the company’s central system makes it possible to estimate the arrival at each of the delivery points on the driver's route, and more importantly, to anticipate any delays due to traffic. Such transparency will positively affect costs and the satisfaction level of Raben Group customers, Árvai says. “We are planning to have a penetration rate of more than 80% until the end of the year. This is a true differentiator. We can see the benefit of our robust network that enables us to provide these services.”

Reducing its eco footprint

HARANGOZÓ, RABEN TRANS EUROPEAN HUNGARY

Honest company culture

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Raben Group’s regional expansion kicked off in Poland followed by the rest of the Visegrád Four (V4) countries, including Hungary, nearly a decade ago. “Currently, we are a mid-sized logistics service provider, however, we have significant growth behind us as we have almost doubled our size in the past four years. In the Hungarian company, we have over 300 employees. We foresee a sharp increase in demand for our services in warehousing and value-added services as well as international groupage transportation,” Csaba Árvai, Managing Director at Raben Trans European Hungary Ltd. says. The executive believes that high-level customer service is the magic ingredient for winning orders: “providing quality solutions with friendly customer service is part of our DNA.” The company has a balanced portfolio of customers in Hungary and internationally.

“There is only one focus: providing good quality for clients so that we can target long-term partnership and treat each other as real partners. We usually develop cooperation with our clients over the years, which makes it beneficial for both parties.”

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the above assessment but adds that Raben Trans European Hungary has been successful in acquiring, and retaining talent. “Over the past year, we have managed to increase our headcount by approximately 70 people – of course, we did have to increase salaries, concentrating on employee benefits and creating a trustful, honest company culture in which we are committed to the notion that our colleagues are the greatest value of the company. This can be a game changer. We are proud of this development – this is the difference that can turn a good company into a great company.”

in Hungary is key for our future.” As to expansion on the Group level, he adds that they finished the establishment of their own independent network including 38 locations in 2018. In 2019, the Group completed the acquisition of the Italian transport firm Sittam by increasing its stake to 51% in the company. Árvai is confident that more locations will be added this year to the 12 countries where the Group currently operates. “This will happen in our region – as we see CEE and SEE being very important for our portfolio.”

The industry Raben operates in has a considerable impact on the environment. As a responsible enterprise, the company has adopted measures to mitigate this effect.

“Our core services, that is, groupage services, are less demanding on the environment because several customers are sharing the cargo space of the same truck. Thus, we are utilizing a vehicle in the best possible way and thereby reducing our eco footprint. Another investment that we started is the use of city trailers, which have 50% more capacity, meaning less CO2 burden for the environment.

We are also operating advanced recycling in our warehouses and we are re-using and/or recycling as much plastic and paper as we can,” the Managing Director points out.

Further expansion Raben’s vision is to become a leader in every location where it operates. With respect to the Hungarian market, the Managing Director stresses that “we are still a mid-sized player but one that aims to be the industry leader.

Especially in the international groupage transport business – here, we are in the top five and we are growing significantly. We have also decided to expand in the countryside, and we are opening businesses where there is demand for our services. We are ready to invest and start from zero if there is an opportunity for long-term partnership. Although organic growth is key for our success, we are always interested and monitoring the market for potential acquisitions and if there happens to be an opportunity, we will go for it. Expanding

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Smart Farm Csernozjom is the professional partner of the Smart Farm Conference, Exhibition and Demonstration early this September. The event takes place within the framework of the Bábolna Farmers’ Days, organized by Magyar Mezőgazdaság Ltd., featuring Alexia Michel, a manager at the Dutch Ministry of Agriculture as guest speaker. The aim of the conference is to demonstrate the most up-to-date high-tech smart management technologies, as well as site-specific, agricultural practices and decisionsupport mechanisms in the fields of nutrient management, plant protection and water management.

In 2018, The Netherlands, represented by Ambassador René van Hell, was the Guest of Honor at the Bábolna Farmers’ Days. The event also featured a seminar on digital agriculture with the participation of Dutch and Hungarian agricultural experts, including Martin Dekker, International Sales Manager at Agrocares, who gave a presentation about the innovative soil testing technology.

DUTCH SOIL SCANNER PROVIDES ON-THE-SPOT MONITORING OF NUTRIENTS

Csernozjom Ltd., the representative of Agrocares, a Dutch agritech company based in Wageningen, provides affordable cloud-based innovative services to bring nutrient intelligence into the hands of the farming community in Hungary.

Csernozjom Ltd. offers agricultural consultancy, soil conservation and nutrient management advisory services in Hungary, according to CEO Viktória Dorka-Vona (see picture). The company’s employees are active or former professors and researchers at the Faculty of Agricultural and Environmental Sciences of the Szent István University in Gödöllő, one of the outstanding agricultural universities in Hungary. The staff have substantial experience in soil science and nutrition management. The company is also the Hungarian partner and consultant of Agrocares, a Dutch agritech company that relies on innovative technology to provide services to measure the nutrient content of soil, feed and leaves. The company’s flagship product

is the Agrocares Scanner, a handheld device that uses a NIR (Near InfraRed) sensor and an EC (electric conductivity) sensor to provide a quick, on-the-spot monitoring of nutrients via a mobile application. The scanner provides an analysis of the nutrient status of the soil (N, P, K, pH, CEC, clay, organic matter content), crops and raw material in just ten minutes.

The data used for the company’s soil testing services comes from the Global Soil Database (now operational in 22 countries, including seven in Africa) and algorithms employed to generate reports and recommendations based on sensor technology. Agrocares provides affordable cloud-based innovative services to bring nutrient intelligence into the hands of the world's farming community.

DUTCH-HUNGARIAN cooperation in sustainable agriculture

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UNPLEASANT PROSPECTS HUNGARY IN THE SHADOW OF THE EUROPEAN ECONOMIC DIP

photos by LÁSZLÓ

TYUKODI/TYUKIFOTO.HU, AUDI HUNGARIA

As economies in Western Europe seem to be running out of steam and market fears of a potential recession heighten, Hungary f inds itself in a precarious position due to the country’s reliance on the external economic backdrop. The decline in the automotive sector, not projected to recover any time soon, may prove especially painful.

The slowdown of economic activity in Western European countries is raising alarm bells. Businesses and economists are bracing for a potential recession, especially in Germany, the powerhouse of economic growth in the European Union. Fears of an economic downturn only add fuel to the fire as they could turn into a self-fulfilling prophecy. The data is not encouraging. In July manufacturing purchasing managers’ indices (PMIs) in the euro zone dropped to their lowest level in three years, according to data from London-based IHS Markit.

Manufacturing performance was the weakest in more than six years with no rebound in sight in the short run, IHS Markit said. The situation is the direst in Germany where PMI in the manufacturing sector stumbled to an 84-month low of 43.2 points, indicating a contraction. The clouds gathering over the economies in Western Europe bode ill for Hungarian manufacturing, particularly the automotive industry, as the country’s economic performance is highly dependent on production for Western European export markets.

Automotive industry hits a snag The automotive industry is, to a large extent, one of the hardest hit segments amid the economic slowdown. Car sales in the European Union continued to decline in June, with all the major European car markets registering fewer sales of new cars and only a few of the leading car w w w . d t e u r o p e . c o m

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manufacturers able to increase sales, according to the European Automotive Manufacturers Association (ACEA). During the first half of 2019, demand for new passenger cars across the EU was down by 3.1% compared to the same period a year earlier, with 8.2 million registrations in total. The Association’s forecast for the remainder of the year shows no improvement, as full-year sales are expected to drop by 1%. News for car manufacturers and suppliers paint a bleak outlook as well: Germany’s Bosch, the world's largest automotive supplier, is preparing for layoffs as the company expects car production to stagnate in the coming years. As regards car sales in Europe, India, China and the US, "there has been a decline almost everywhere," sometimes by more than 10 percent, Volkmar Denner, Chairman of the board at Bosch told Germany newspaper Süddeutsche Zeitung.

Meanwhile, two of the world’s largest car manufacturers said they saw no future for hybrids in their U.S. lineups, the Wall Street Journal reported in August. General Motors and Volkswagen are ending the production of hybrid cars to concentrate their investments on fully electric vehicles, a production line not yet present in Hungary. The changes in the automotive industry stem from leading car manufacturers’ efforts to transition to new technologies, meet tightening environmental regulations and swiftly changing customer habits and demands.

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Impact on Hungary Analysts have warned repeatedly that Hungary’s one-sided reliance on the automotive industry carries an inherent risk. The performance of the global automotive industry has a particularly strong impact on Hungary because the entire Central and Eastern European region has become a major hub of vehicle manufacturers and suppliers in the last 8-9 years. This situation is the result of global economic processes, opportunities provided by EU membership (such

as the absence of tariffs on exports) and the availability of relatively cheap labor. The country’s manufacturing sector has so far fared better than Western European peers, but PMI data suggest that the resilience may prove temporary. In June 2019, the volume of industrial production increased by 4.1% from a year earlier, according

to working-day adjusted data published by the Central Statistical Office (KSH). Exports of motor vehicles, which account for 37% of manufacturing sector export sales, increased by 3.1%. Manufacturing output, which has the biggest weight within industry, declined by 2.3%, as the pace of growth in vehicle manufacturing slowed to a mere 1.5% compared to the same month of the previous year. The new orders portfolio also reflects the weaker performance of domestic vehicle manufacturing, according to the KSH. Meanwhile, Hungary’s manufacturing PMI fell from 54.4 points to 51.3 points in July.

“The 51.3-point level remains above the threshold that divides contraction from expansion, but the lower reading may be a sign, that – despite the surprising resilience of the first months of the year - the Hungarian industry will not be able to diverge from the wider European trends,” according to an analysis published by CIB Bank in Budapest. Key car manufacturers in Hungary include Audi with operations in Győr, Mercedes in Kecskemét, Suzuki in Esztergom and Opel in Szentgotthárd while BMW announced recently that it will set up production in Debrecen. A study by the National Bank of Hungary highlights that two factors may have so far shielded Hungary’s manufacturing industry from the impact of the automotive industry malaise. One can be attributed to a simple coincidence, namely that demand for cars manufactured or assembled in Hungary has dropped by a smaller extent.

The other could be the fact that multinational companies, in light of the deteriorating economic environment, have cut back their production capacities to varying degrees and have kept capacities unchanged at plants that operate with lower costs, according to the central bank.

What the future holds Countries in Central and Eastern Europe have, to an increasing degree, put their eggs in one basket over the past decade by specializing in one economic direction: the internal combustion engine industry. This significantly limits opportunities for economic restructuring, say economist Tamás Gerőcs and labor market researcher Tibor T. Meszmann, members of the public sociology working group Helyzet Műhely.

“Hungary is the captive of a semi-periphery trap and due to its historically embedded dependence, the country’s economic growth hinges to a very high extent on external factors,” according to the scientists who spoke to online news site 444.hu. Gerőcs noted that just as electronics manufacturing was rapidly replaced by the automotive industry, one can expect new industries to enter as new boom cycles emerge.

Although electric car manufacturing may soon take roots in Hungary, it is not research centers that will primarily be set up in the country but rather suppliers to Asian battery manufacturers.

“It should be noted that just as the latest switch (from electronics to car manufacturing) failed to bring about a significant convergence of the Hungarian economy, the next cycle change is unlikely to result in a meaningful change either,” Gerőcs says.

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diplomacy

BREXIT AND ITS AFTERMATH HUNGARY CALLS FOR PROTECTION OF ACQUIRED RIGHTS

BY BREXIT MINISTERIAL COMMISSIONER SZABOLCS TAKÁCS

The word Brexit has become one of the most used terms in international political discourse since the referendum held in the United Kingdom in 2016. The impact of the UK leaving the Union, though yet unknown, will undoubtedly be long-lasting.

Nevertheless, Brexit carries a different meaning for the various stakeholders: the political elite in the UK, the UK citizen who voted in favor of it, the segment of British society, Ireland or Scotland who voted remain, the federalist Brussels bubble, the more sovereigntist member states of the EU, students enjoying an ERASMUS program at Exeter University, a Japanese car maker or an Eastern European bartender in one of the bars in the Soho. It is therefore no surprise that it has a particular meaning to Hungary, too. The Hungarian Government and Prime Minister Viktor Orbán were the only ones to have paid for a full-page advertisement in one of the British newspapers on referendum day,

saying “The decision is yours, but we would like you to know that Hungary is proud to stand with you as a member of the European Union.”

The decision was made, and we respected the democratic outcome it brought along. We were neutral and did not join the chorus that called for punishing the UK for their democratic decision. At the same time, we were also a reliable

2019 marks two important milestones in Peru’s history as the country celebrates the 198th anniversary of its independence in July and the 50th anniversary of the establishment of diplomatic relations with Hungary.

and cooperative member of the EU27 and supported the highly responsible and correct efforts of the EU negotiation team.

Now that time is ticking away, the tension is running higher for the bartender in the Soho, the European student in Exeter, the CEO of the car maker in Tokyo, the banker in Canary Wharf, and the Irish farmer who drives his tractor through the border between the Republic and Northern Ireland ten times a day. Nevertheless, we should keep one thing in mind: all the acquired rights of our citizens must be protected. While we are all interested in a comprehensive trade arrangement and an intensive security cooperation to face global challenges, we should never forget that we are all Europeans on both sides of the Channel. We should not lose sight of the fact that the UK will remain the next-door neighbour of the EU. The next couple of weeks and months will prove that the old continent needs a strong UK just as much as the UK needs a strong European Union in

order for Europe to remain relevant on a global scale.

As the world is watching closely, we must be responsible and live up to the challenge of respecting national sovereignty and the joint interest of maintaining the economic relevance of both the European Single Market and that of the UK. We need to respect the achievements of the Good Friday Agreement and build a secure and prosperous future for Europeans. With

all the technological achievements available to us and in light of our democratic traditions, historical experience and cultural roots, I am convinced that if there is a will, there will be a way. The Hungarian Government will always strive for that.

(The author is the Ministerial Commissioner for BREXIT in the Ministry of Foreign Affairs and Trade of Hungary)

RIGHT RESPONSE TO MANIFOLD CHALLENGES PERU VIES FOR MORE PROMINENT PLACE IN GLOBAL ECONOMY

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The coastal conditions of our country allowed natives to sail wind rafts and marine merchants to travel amongst the coastal communities, forging interactions between the South Pacific Islands and pre-Columbian Peru. During the Spanish conquest the center of gravity shifted toward the coastal regions and Lima. Spaniards brought a new language, western civilization and its values, which created the country’s characteristic Mestizo culture.

In modern times, Peru has sought to integrate its economy with other countries of the Pacific Rim, which is a new center of gravity of the global economy. In 1998, the country was admitted to the Asia Pacific Economic Forum (APEC) and in 2001, Peru presented a proposal to Mexico, Colombia and Chile to create the Pacific Alliance, which is the leading Latin American integration scheme today. Peru's participation in regional and global economic developments and its market-oriented economy have ensured an annual economic growth cycle of over 4% for more than two decades. Presently, Peru is seeking to become a member of the OECD, as the country shares the organization’s vision of the importance of good governance, solid institutions, respect for human rights and protection of the environment. Modern-day Peru’s wealth demonstrates how the right response to difficult geographical and historical situations can favorably impact the destiny of a country.

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In the 1970s and 1980s relations between Peru and Hungary were intense. Peru saw in the Hungarian economic model some features of a lighter case of state intervention and innovative economic and social institutions that could be replicated to address inequality and improve wealth distribution.

Nowadays, both countries strive for strong economic and social development – this time, in the framework of open and integrated economies, based on market dynamics, macroeconomic discipline and the rule of law. After a long period of absence of diplomatic representation in both capitals, Hungary and Peru have reopened their respective embassies.

Peru’s independence marks the beginning of the republican stage in the construction of a state born from the meeting of two important cultures and shaped by geography. The Andean Mountains not only mark the historical territory of Peru but were also the cradle of the Inca civilization that established solidarity, collective values, physical connectivity, architecture and the system of public management as the core values of our nation. The Incas contributed to food security by the sustainable use of water and agricultural efficiency, while introducing a new and nutritious diet – exemplified by staples such as potato and quinoa – to the Old World.

ÁMENT, DEPOSITPHOTOS.COM, EMBASSY OF PERU

BY THE PERUVIAN AMBASSADOR TO HUNGARY, RAUL ALFREDO SALAZAR COSIO

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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

MAGYAR IS OK A DIPLOMAT’S TAKE ON LEARNING HUNGARIAN

BY IAIN LINDSAY, BRITISH AMBASSADOR TO HUNGARY

My love affair with Hungary began in 2004. I was then the Deputy Ambassador at the British Embassy in Bucharest, Romania. I had never been to Hungary, although Budapest had captured my imagination for many years. In the summer of that year, we drove across Europe from Romania, holidaying en-route in Croatia and Italy, and then putting our son, Calum, into boarding school in England. I had to fly back to Bucharest for work leaving my wife, Bridget and our car. We agreed that we would meet in Budapest after she had driven across Western Europe, so that I could drive us back through Romania to Bucharest, then a difficult day-long journey with no expressway in Romania.

A difficult language?

First visit to Budapest I got the overnight train from Bucharest to Budapest (an experience!), arriving at Keleti Pályaudvar station on a beautiful early Saturday morning in September. The first thing I noticed when I got off the train was the language.

I looked at the adverts around the station and I wondered what planet I had arrived on, so foreign seemed the words.

That day we visited the Vár (the Buda Castle), which was just beautiful, and saw for the first time the magnificent views over the Danube, in particular towards the incredibly impressive parliament building. The annual wine festival was taking place, my first introduction to what I consider to be one of the great secrets of Hungary, its wines (of every variety). We very much enjoyed our first day in this stunning city. The following morning, we drove back to Bucharest. But my appetite had been whetted.

photos by BRITISH

EMBASSY BUDAPEST

The Hungarian job Roll on to autumn 2014. I was by then the British Ambassador to the Kingdom of Bahrain. Due to leave in the summer of 2015, I was applying for further ambassadorial jobs.

I couldn’t believe my luck when the job of Ambassador to Hungary came up.

I should explain at this point that in the British Foreign Office all jobs at all levels, including Ambassador, are advertised and decided by open competition (i.e. no backroom deals, no decisions by faceless bureaucrats in HQ). I sent in my application, essentially my manifesto for how I would do the job and what I would bring by way of skills, was interviewed and, hey presto!, I was selected for the job.

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In both Pécs and Debrecen I had 4-5 hour lessons each day, augmented by a few meetings (in Hungarian!) each week with local dignitaries as well as cultural events and visits. At the end of my first week in Pécs, I was totally exhausted by having to understand Hungarian every minute of the day. As I used to say: “Reggeliztem, ebédeltem és vacsoráztam magyarul, és még álmodtam is magyarul!” Or, “I ate breakfast, lunch and dinner in Hungarian, and even dreamt in Hungarian, too”! But also, there is a huge difference between one-to-one tuition and group tuition. The former is much more tiring. In a group, when you feel frazzled you can ‘hide’ behind another student.

When it’s one-to-one there is no hiding place!

But part of the job specification was, as is the case with virtually every single British ambassadorial position in a non-English speaking country, that I had to learn the language to C1/felsőfokú (advanced) level before I arrived in Budapest in March 2016. In the British Foreign Office we take our language training really seriously. Our timelines for applying for jobs take into account the amount of full-time training required to reach the required level of the local language. For Hungarian, this is about 13 months of full-time language training.

I had previously learned Japanese and Romanian on a full-time basis with the Foreign and Commonwealth Office (FCO) so, I had a reasonable idea of what to expect. But I learned Japanese when I was 22 and Romanian when I was 43. Learning a foreign language in your 50s isn’t so easy!

In the Tower of Babel I had two lovely and incredibly patient teachers, both Hungarians who had lived in the UK for many years; one, for example, was a journalist who had worked for the BBC and Magyar Rádió. Every day I would have a three- or four-hour lesson, surrounded by

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fellow diplomats learning languages from Chinese to Spanish, Japanese to Swahili, Arabic to Hindi.

Sitting in the middle of the language center was like being in a Tower of Babel, hearing snatches of foreign languages every minute!

Intensive learning The Hungarian language syllabus I followed was MagyarOK, the award-winning program developed by Pécs University Medical Faculty.

My full-time language training in London lasted five months during which I passed the A2 and B2 exams, the latter just a few days before flying to Hungary for two months of intensive training, first at Pécs University and then at the Nyári Egyetem (summer university) in Debrecen.

So, what does intensive language immersion training entail? Well, in both places, I stayed with wonderful homestay families, eating meals with them and spending much of my free time with them. I got to learn much more than the language, which is, of course, a major reason for investing in in-country language training.

It’s about getting under the skin of a country.

I got to know about the people, the culture, the history, the cuisine and, of course, the wine!

People talk about Hungarian being a difficult language to learn. Yes and no. Objectively speaking, Hungarian is one of the most difficult European languages, along with Finnish and Estonian. I now know that Hungarian grammar is more difficult than Japanese grammar, although Japanese as a whole is a far more difficult language. And the concept of word order is not something we are familiar with in English.

But, contrary to the views of many Hungarians I meet, Hungarian is a pretty logical language.

Not least the pronunciation which, unlike English, does not vary.

But seven months is not enough time to learn Hungarian to C1 level. However, shortly after I arrived in Budapest in March 2016, the Brexit referendum in the UK took place and with all the work related to that I had a hiatus of several months in my Hungarian studies. However, in the British Foreign Office language system, you must take the exam of the level to which you have committed, so, I restarted learning Hungarian with regular lessons. Even then, I still needed to go back to Pécs for a two-week cramming course immediately prior to my exam in September 2017. I passed the exam except for the listening part which I had to re-sit the following spring. Somehow, I managed to pass that, as well!

And so, I use Hungarian on an everyday basis. I give speeches in Hungarian, including recently to Hungarian language teachers! That was like an exam! I give interviews in Hungarian, although, not all the time. If I am giving a TV or radio interview in English, I like to speak Hungarian at some stage in the interview. And, as part of the Embassy’s very strong social media presence in Hungary, I make a lot of videos in Hungarian, on a range of issues, from Brexit to poetry! My most memorable moments included speaking Hungarian to music at a concert at MÜPA; giving a speech in the town square in Nyíregyháza to hundreds of Hungarian soldiers and the Defense Minister; doing a live interview about my exam on Music FM and reciting Petőfi Sándor’s ‘Nemzeti Dal’ on March 15. In summary, it has been wonderful to learn this beautiful language and – through the language – to get to know this lovely country and its great people. Hajrá!

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culture

The world's most prestigious annual photo exhibition opens in Budapest on September 19, painting a vivid picture of the most memorable moments of last year.

photos by

DEPOSITPHOTOS.COM

WORLD PRESS PHOTO 2019 Hailed as the Oscars of photojournalism, the World Press Photo exhibitions attract up to 4 million visitors each year in 45 different countries worldwide. Celebrating its 62nd year, the exhibit is the most significant travelling exhibition dedicated entirely to photojournalism, profiling the globe's top press photographers and showcasing the world's most provocative and poignant press photos.

To select the winners of the 2019 contest, an international panel of judges reviewed 78,801 photographs over a three-week period starting on January 12. Photos were submitted in nine categories, such as Contemporary issues, Environment, General news, Longterm projects, Nature, Portraits, Sports, Spot news and Story of the year, the latest headline category to be introduced in 2019. The number of photographers amounted to 4,738, coming from 129 countries. The jury awarded 43 candidates, including Hungarian photographer Bence Máté (see box). This year the top honor went to John Moore from the U.S., a senior staff photographer and special correspondent for Getty Images, for his photo depicting a crying Honduran toddler named Yanela Sanchez

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as she and her mother, Sandra Sanchez, are taken into custody by U.S. border officials in McAllen, Texas. ’Crying Girl on the Border’ was been nominated for World Press Photo of the Year from the Spot News single image category “I think this image touched many people’s hearts, as it did mine, because it humanizes a larger story. When you see Yanela’s face, and she is more than two years old now, you really see the humanity and the fear of making

such a long journey and crossing a border in the dead of night,” Moore said. After the picture was published worldwide, the U.S. Customs and Border Protection confirmed that Yanela and her mother had not been among the thousands who had been separated by U.S. officials. Nevertheless, public outcry over the controversial practice resulted in President Donald Trump reversing the policy on June 20.

HUNGARIAN PHOTOGRAPHER WINS WORLD PRESS PHOTO AWARD FOR THE 2ND TIME

‘Harvesting Frogs’ Legs’, a photo shot by Hungarian photographer Bence Máté, won the 1st Prize in the Nature category of the 2019 World Press Photo contest. It depicts frogs with their legs severed and surrounded by frogspawn struggling to the surface, after being thrown back into the water in Covasna, a county and town nestled in the eastern Carpathian Mountains in Romania. Frogs’ legs are frequently harvested for food in the spring, when males and females gather to mate and spawn. Legs are sometimes severed while the animal is still living. About USD 40 million worth are sold annually, with countries across the world participating in the trade. A small part of the population in the eastern Carpathian Mountains make a living by collecting frogs’ legs in the wild and selling them.

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STORIES THAT MATTER

Pulitzer Memorial Award winning Hungarian photographer Tamás Révész has been the organizer of the World Press Photo Exhibition in Budapest since he won a World Press Award himself in 1991. Révész is very proud to present the global exhibition in Hungary and see an increasing number of visitors each year.

“In 2018, the exhibition, hosted by the Hungarian National Museum, drew the attention of more than 45,000 people, which made the Hungarian show the second most visited out of 114 global venues,” he says. According to Révész, visitors often leave speechless, some with tears in their eyes. “This year’s collection also consists of moving, sometimes very disturbing images – seeing them one after the other is a very powerful experience, even if you have followed the news through the year.” Révész believes that the retrospective photo exhibition is a call for tolerance, empathy and humanity. “I hope it helps us to better understand the world around us.” The month-long show closes on October 23. An accompanying exhibition will also be on show entitled ‘Imagine’ by 25 year-old fine art photographer Flóra Borsi, whose works have been exhibited in Europe and the U.S., and who has taken part in the “Continental Shift” group exhibition at Saatchi Gallery. She has also exhibited at the Louvre, France.

Her ethereal aesthetic has won multiple art prizes and garnered critical acclaim from the press, including The Guardian’s Observer and BBC Culture. Her artwork was the face of Adobe Photoshop in 2014.

MOORE/GETTY IMAGES, MÁRIO CRUZ, BENCE MÁTÉ, FLÓRA BORSI

The Budapest Show and side event

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society India Independence Day The Embassy of the Republic of India marked the nation’s 73rd Independence Day by inviting "all Indian nationals, persons of Indian origin and friends of India in Hungary" to a ceremony at the Embassy in the Buda Hills.

Ambassador Kumar Tuhin read a message to the nation by the President of the Republic of India, Ram Nath Kovind.

Swiss National Day The Ambassador of Switzerland to Hungary, Dr. Peter Burkhard organized a reception at his residence in Budapest to celebrate the 728th anniversary of the Swiss Confederation. On August 1, 1291 the cantons of Uri, Schwyz and Unterwalden united to form the nucleus of the Old Swiss Confederacy.

Vietnam National Day The Ambassador of the Socialist Republic of Vietnam to Hungary, Nguyen Tien Thuc held a reception at the Museum of Military History in Budapest’s Castle District to celebrate his country’s National Day. Vietnam commemorates the 74th anniversary of President Ho Chí Minh reading Declaration of Independence at Ba Đình Square in Hanoi on September 2, 1945.

The 52nd Anniversary of ASEAN

Kimono Project Hungary Japan’s ‘Imagine One World’ society launched a Kimono Project in 2014 to create 213 kimonos representing each of the countries expected to take part in the 2020 Tokyo Olympic and Paralympic Games. The Japanese Embassy in Hungary hosted a ceremony to present the Hungary-themed kimono. The event featured speeches by Japanese Ambassador to Hungary Kuni Sato, Shunsuke Takei, a member of the Japanese parliament and Norbert Palanovics, Hungarian Ambassador to Japan.

photos by

DÁVID HARANGOZÓ, EMBASSY OF INDONESIA

The embassies of five Southeast Asian countries (the Philippines, Indonesia, Malaysia, Thailand and Vietnam) marked the 52th anniversary of the founding of the Association of Southeast Asian Nations (ASEAN) with a joint diplomatic reception at the residence of the Indonesian ambassador. Guests were invited to a lunch featuring the rich and diverse cuisines of Southeast Asia.

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34TH SPAR BUDAPEST MARATHON

JAHA KOO: CUCKOO

Join over 27,000 participants in the SPAR Budapest Marathon – one of the most popular and perhaps the most international running races in Hungary, (Last year, the event attracted more than 5,400 foreign runners from 84 countries. Most came from France, Britain and Germany, but there were also participants from Thailand, Ghana and Vietnam.) The course leads through UNESCO World Heritage sites, across the Chain Bridge and down the famous Andrássy Avenue, starting at Pázmány Péter Sétány. With distances ranging from 400 m to 42 km, everyone in the family can find their own challenge and take part in the running festival.

Participants can choose to run the 42-kilometer-long distance individually, or as a relay race with one or more team members.

One day when his electric rice cooker informed him that his meal was ready, South Korean theater/ performance maker and music composer Jaha Koo experienced a deep sense of isolation. ‘Golibmuwon’ is an untranslatable Korean word expressing the feeling of helpless isolation that characterizes the lives of many young people in Korea today. Twenty years ago, there was a major economic crisis in South-Korea, comparable to the financial crash in the United States and Southern Europe in 2008. This crisis had a huge impact on the young generation to which South Korean artist Jaha Koo belongs. He witnessed many endemic problems including youth unemployment and socio-economic inequality.

Rising suicide rates, isolation, acute social withdrawal and a fixation on personal appearance are but a few of the symptoms. In bittersweet and humorous dialogues, Jaha and his clever rice cookers take the audience on a journey through the last 20 years of Korean history, combining personal experience with political events and reflections on happiness, economic crises and death.

SEPTEMBER 26, TRAFÓ

SEPTEMBER 28-29, BUDAPEST

www.futanet.hu

www.trafo.hu

MARIO BIONDI CONCERT SEPTEMBER 27, MÜPA

With his sensually crooning voice, Mario Bondi is an extremely popular interpreter of soul and R&B tunes, for which he is often referred to as ‘the Italian Barry White’. Born Mario Ranno, the Sicilian singer probably had his future set out for him in advance, as his father, Stefano Biondi, was himself a hit factory, while other family members – his grandmother as a singer and his great-grandfather as a painter – also enjoyed widespread acclaim in the arts. Mario launched his professional career as a teenager: he was all of 17 years old when he took the stage alongside Ray Charles, with the cream of the crop of Italian vocalists also inviting him to their recording sessions and concerts. He would not deny that Isaac Hayes, Luther Vandross and Donnie Hathaway all had a major influence on the development of his own style. He exploded onto the international music scene and public consciousness in 2004 with his first real hit ‘This Is What You Are'. This number, which he recorded with the High Five Quintet, climbed to the top of numerous charts, inspired numerous remixes and was performed at the Sanremo Music Festival. But Biondi would not end up sticking with this style, instead went on to experiment with other musical genres ranging from jazz and funk to pop and Brazilian sounds. His popularity has continued unabated into the current decade. Outstanding proof of this fact is his 2013 album ‘Sun', which features such guest artists as Leon Ware, Chaka Khan, Al Jarreau and James Taylor. Never waiting for the wave of success to subside, Biondi instead rode it and came out with ‘Mario Christmas', a CD of holiday tunes that kept him in the spotlight. He performs his songs in impeccable English. Although, it is rare for him to sing in his mother tongue, at the Bridging Europe festival, he will deliver a few songs in Italian.

www.mupa.hu

OCTOBER 22, BARBA NEGRA MUSIC CLUB

Armed with the belief that positive music can change the world, Lucky Chops is on a mission to bring life back into the music industry. The band is well known for spontaneity and dance vibe.

One would never guess they only play brass instruments. The intensity of the band’s energy is fueled by their desire to inspire others. Lucky Chops became famous thanks to a random spectator, who filmed the band’s street performance and shared it with world on the Internet. The band suddenly became a viral sensation and popular performers in New York’s streets and underground. The hard work and dedication put in by each of the six members has been recognized by fans across the globe. www.livenation.hu

RESEARCHERS' NIGHT

SEPTEMBER 27-28, MULTIPLE VENUES

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‘Research is cool!’ is the motto of this annual series of events. This year’s program will include a great number of programs countrywide, all with free admission. The main objective of organizers is to overcome prevailing stereotypes about researchers and contribute to the enhancement of their public recognition through aspects of innovation, gender, mobility, international research and lifelong learning. Therefore, the programs intend to show the attractiveness of a career in research, and are designed to 'edutain' the public, especially the new generation – so do not forget to take your kids! Scientific presentations will be mixed with entertaining elements and interactive workshops at all venues, including the worldfamous Ericson labs, the CERN Data Center – WIGNER Research Centre for Physics, the Palace of Miracles and the Bay Zoltán Nonprofit Ltd. for Applied Research, a leading Hungarian applied research institute. Visit the latter for LEGO-robot building and programming, and hands-on biotechnological experiments. For a fully detailed program and a list of all venues, visit www.researchersnight.hu

ALESSANDRA FUCCILLO, GERGELY ZÁKÁNY/WWW.GERGELYZAKANY.COM, LIVE NATION

LUCKY CHOPS CONCERT

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CULTURAL HERITAGE DAYS 2019

SEPTEMBER 21-22, MULTIPLE LOCATIONS COUNTRYWIDE

European Heritage Days have been organized since 1999 as a joint action of the European Union and the Council of Europe. The participant countries to the European Cultural Convention take part in European Heritage Days by putting new cultural assets on display and opening historical buildings normally closed to the public. In Budapest, buildings and listed monuments open their gates to the public. Cultural events highlight local skills and traditions, architecture and works of art. Organized tours are held to promote mutual understanding among EU citizens. This year’s event focuses on historic places of entertainment: theaters, cinemas, concert venues, ball rooms and even brothels. www.oroksegnapok.hu

DESIGN WEEK BUDAPEST

OCTOBER 4–13, MULTIPLE LOCATIONS

The biggest design event of Hungary, Design Week takes place at more than 100 locations throughout Budapest. First organized in 2004, the festival shares knowledge and information about the world of design by involving individual designers and business ventures and facilitating cooperation between them, in order to create a solid and well-functioning design-ecosystem in Hungary. Guest countries this year are the Baltic States (Estonia, Latvia and Lithuania). The event series will also showcase the work of local designers and assist them in their ventures.

EROS RAMAZZOTTI CONCERT OCTOBER 24 PAPP LÁSZLÓ BUDAPEST SPORT ARÉNA

Singer, songwriter and musician Eros Ramazzotti hails from Rome’s Cinecitta.

His nasal but forceful and resonant baritone voice first gained recognition across Italy, and soon after, captured the attention of the whole world. He has sold over 60 million records, and regularly performs live to stadium size crowds. His duets are particularly well-received, especially those sung alongside Cher, Andrea Bocelli, Joe Cocker, Carlos Santana, Tina Turner, Luciano Pavarotti, Ricky Martin, Elton John and Rod Stewart. His fans adore the energetic way he delivers melodic, passionate mid-tempo ballads – a signature genre developed during a 35-year-long career. The Italian superstar’s world tour kicked off in Munich, and will stop in 32 countries, including Hungary, supporting Ramazzotti’s newest album ‘Vita Ce N’è’ (There is Life), released on November 23, 2018.

www.designhet.hu

photos by

KONCERTPROMO.HU, MANDAUGAS NORKAITIS/WWW.M-N.LT

www.koncertpromo.hu

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VEGETARIAN FESTIVAL NOT ONLY FOR VEGETARIANS!

Are you considering switching to a raw diet but don't know how to get started? Do you wonder what vegan cosmetics are like? Do you want to know the latest news on plant-based nutrition? Do you want to know how to care more about the environment?

Gusteau

1074 Budapest, Dohány utca 42-44. +36 1 815 1100 araz@araz.hu www.araz.hu

3909 Mád, Batthyány u. 51. +36 47 348 297 info@gusteaumuhely.com www.gusteaumuhely.com

RESTAURANT ARAZ INVITES GUESTS to experience a gastronomical adventure in the bohemian district of Budapest.

Tucked away in a tranquil space in the city center, the restaurant’s inner terrace feels a world away from the urban hustle and bustle, an oasis of calm during the warm summer months. The new, classic bistro theme menu, created by Chef de Cuisine Áron Barka, features mouth-watering dishes made from fresh, seasonal ingredients. All of this wrapped up in a contemporary, casual, cosy atmosphere – while still maintaining a commitment to excellent value.

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• Morel mushroom cream soup, coriander oil • Waffle, goat cheese, ruccola, ripened cheese sauce • Glazed pork ribs, spicy homemade crisps, coleslaw with pear • Cottage cheese dumplings, white chocolate, almonds, sour cream

GUSTEAU RESTAURANT IS LOCATED IN THE VILLAGE OF MÁD, in the heart of Tokaj-Hegyalja, where life is all about wines.

Naturally, dishes served in Gusteau are inspired by wines. ‘Terroir’ is expressed in the ingredients the chef uses. The restaurant’s mission is to arouse love and respect for top quality white wines of the TokajHegyalja region, and to provide a lifetime experience for visitors through gastronomy.

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• Veal tartare, tuna, veal tendon, egg, radish • Catfish, chamomile, green apple, cucumber • Gazpacho, pistachio, tomato ice-cream • Lamb neck, millet, sheep cottage cheese, fermented bean, dill • Apricot, buttermilk, mint, apricot seed

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FESTIVAL, INNOMOTION STUDIO, ARAZ, PIXELTASTER, GUSTEAU, LÁSZLÓ MUDRI

ARAZ

photos by VEGETARIAN

photos by

DEPOSITPHOTOS.COM

Did you know that a meat-free diet can improve the symptoms of MS disease? Have you already gone meat-free but lack new recipes? Then, head to the 23rd Vegetarian Festival on September 14-15! The two-day event, traditionally hosted by the Kőrösi Csoma Sándor Kőbánya Cultural Center in District 10, at Szent László Square 7-14., offers nutritionists' lectures, documentary film screenings, food tastings and an eco-and bio-friendly product market. Visitors are also invited to attend yoga groups, relaxation sessions, music and dance programs. There will be a "cooking room" where visitors can learn how to prepare mouth-watering vegetarian and vegan meals. The festival is family-friendly: a playroom awaits the little ones while their parents cook or meditate. The purpose of this festival is to dispel the misconceptions about vegetarian lifestyle and to highlight how we can live a healthy life by eating fruits and vegetables. Admission is free!

MORE INFO: www.egeszsegvar.hu

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wine Often referred to as one of the most prestigious, most popular wine and art fests in Europe, the Budapest Wine Festival is organized for the 28th time this year, on September 5-8, in the beautiful historic setting of the UNESCO World Heritage site, Buda Castle.

28TH BUDAPEST WINE FESTIVAL THOUSANDS OF LABELS, GOURMET FOOD AND PROGRAMS GALORE

Attracting tens of thousands of visitors from all over the world, this festival is organized every September, presenting thousands of wines from over 150 wineries from Hungary and abroad. “Even for guests who are not wine experts, the ambience and the programs guarantee an unforgettable time spent in Budapest,” organizers say, believing that the combination of the world heritage setting and the assortment of premium wines greatly contributes to the acknowledgment of Hungarian wines on the world market and to a more pronounced image of the country as a popular travel destination. “Event attendees will, as in the past, be able to taste wines and network with independent growers to learn about the differences between styles, regions and country production methods.” Instead of inviting guest countries, organizers decided to highlight the Eger wine region this year, to draw more attention to the characteristics of the region’s grape varieties and wine styles and promote the region as a wonderful tourist destination in the fall season. Eger will also be the focus of the Wine University, to be organized at the MOM Cultural Center on September 2, three days before the festival kicks off in the castle.

Programs

Gastronomy The Wine Festival offers a cornucopia of culinary delights, ranging from traditional festival cuisine and street food to gourmet specialties. Gastronomy exhibitors this year include PizzaMe, Terra Tuffola, the Litvanian Dziugas and Szega Market (both offering cheese), Szittya Pita Kenyérlángosozó, Ami Burger, SPAR Grill Terrace, Fresh Corner, Julius Meinl, along with Gerbeaud and Bolka Bonbon.

Those wanting to have lunch or dinner at a laid table in the midst of the Festival can do so under the Baroque gate at the exclusive Budapest Terrace, by choosing the Laid Table service which includes a three-course lunch or dinner with wines, in addition to the daily ticket for the festival.

photos by

ZSOLT SZIGETVÁRY

Trying the ‘A couple of wine couples’ program is a must at the festival: winemakers will offer their wines as "two drinks for one", to encourage experts and non-experts alike to make comparisons, to recognize certain types of grapes or vintages. On Sunday, starting at noon, a parade will be held: representatives of

Hungarian wine regions, members of wine orders and wine-lovers' associations will march through the streets of the castle district, in a colorful, spectacular procession, to evoke the atmosphere of a harvest parade. Another tradition is the Charity Wine Auction that benefits the Hungarian Maltese Fund. This year’s novelty is a cooperation with the Autistic Art Foundation, presenting a repertoire of Bolyki, Etyeki Kúria, Gilvesy, Luka, Konyári and Vylyan wines featuring special labels made by autistic youngsters (all for sale, available at the foundation’s stand). During the four days of the festival, the most popular Hungarian bands of world music, folk music, folk dance and jazz genres will provide entertainment, such as Kiscsillag, the Aurevoir, the Muzsikás Ensemble, Lajos Sárközy and his band, László Dés, Béla Szakcsi Lakatos, Csaba Deseő, Kálmán Oláh, Elemér Balázs, János Egri, Imre Kőszegi, Tamás Berki, Kornél Fekete-Kovács, László Gőz.

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