ONE OF THE WORLD'S MOST ACCLAIMED CONTEMPORARY COMPOSERS AND PIANISTS, LUDOVICO EINAUDI, WILL PERFORM IN BUDAPEST THIS MAY, FEATURING SOME OF THE MOST SUCCESSFUL COMPOSITIONS FROM HIS OEUVRE, TIMELESS AND COMPELLING MUSIC, RECOGNIZED WORLDWIDE FOR ITS PROFOUND EMOTIONAL IMPACT AND REFINED BEAUTY.
Japan
With over 160 countries and organizations participating, the World Exposition in the Japanese city of Osaka promises to be one of the major events of the year. In an extensive interview with Diplomacy&Trade, Japanese Ambassador Hikariko Ono discusses what experience the expo will offer to visitors and how Hungary’s pavilion may serve as a tool for further strengthening Japan's longstanding economic and cultural cooperation with Hungary.
The Canadian Chamber of Commerce in Hungary held a business breakfast focusing on the uncertainties surrounding the economic policies of the new Trump administration. Its President Nicholas Sarvari summarizes how much coherence, if any, can be seen in this economic policy so far; how it may affect trade relations as far as the United States, Canada and even Hungary are concerned.
letter from the publisher
The United States Agency for International Development (USAID), responsible for administering civilian foreign aid and development assistance, has long been a key instrument of American influence worldwide. However, it now appears to be a casualty of the new Trump administration’s government streamlining policy. As our international analyst suggests, while stronger oversight of USAID’s programs may be necessary, dismantling the agency entirely would be a mistake. The erosion of America’s soft power could create a vacuum that allows China to expand its global dominance.
The policies of the Trump administration were also a major topic of discussion at a recent business breakfast hosted by the Canadian Chamber of Commerce in Hungary. The organization’s president expressed caution and concern over what he terms ‘Trumponomics’, warning that the erosion of trust resulting from these policies could have lasting repercussions for global business relations.
In this issue, we present a Japanese Focus in light of this year’s World Expo in Osaka. Japan’s ambassador to Hungary, Hikariko Ono, shares insights with Diplomacy & Trade on how the expo’s theme, Designing Future Society for Our Lives, reflects Japan's vision for tackling global challenges and shaping a better future. The designers of the Hungarian Pavilion explain how their creative approach offers visitors an immersive and emotionally engaging experience, while top officials from the Hungarian-Japanese Economic Club discuss their plans for participating in this prestigious global event. Hungarian-Japanese business ties are further explored through an interview with the head of the Budapest office of the Japanese External Trade Organization, alongside profiles of several Japanese companies operating in Hungary.
This edition’s WittyLeaks column is contributed by the Swiss ambassador, who, ahead of his departure this spring, reflects on a particularly eventful year in Swiss-Hungarian relations.
In the cultural section, we highlight the return of renowned Italian composer and pianist Ludovico Einaudi, who will take the stage in Hungary this May. His concerts promise to transport audiences into a world of music, emotions and artistic expression.
As shifting political and economic landscapes continue to shape global affairs, we remain committed to providing in-depth analysis and compelling stories that offer clarity and perspective. We hope you find this issue both informative and thoughtprovoking. Enjoy the read!
Peter Freed
PUBLISHER
PUBLISHER: Peter Freed PHOTO EDITOR: Dávid Harangozó
ADMINISTRATION: Blanka Szalontai
CONTRIBUTORS: Sándor Laczkó, Tamás Magyarics, Jean-François Paroz
USAID: soft power, soft target 08-20 JAPANESE FOCUS
Interview with Ambassador Hikariko Ono; JETRO; Dreher Breweries; Bridgestone; Japanspecialist; Zoboki Design & Architecture; Toyota; Sushi Sei; HungarianJapanese Economic Club
22-24 BUSINESS
Trumponomics discussed at the Canadian Chamber of Commerce in Hungary; Global Investor Survey by PwC; Memories of Hungary 25 WITTYLEAKS by the Ambassador of Switzerland 26 CULTURE
Ludovico Einaudi
27 WHAT’S ON Concerts, festivals, events and exhibitions in and out of Budapest
HUNGARIAN FOCUS – COMING SOON
In its upcoming issue, Diplomacy&Trade is to present a special Focus section on recent developments in the activities of successful Hungarian companies. In this compilation, we are going to show how large Hungary-based multinational firms are expanding not only in the East Central European region but also in other parts of the world. In addition, we wish to showcase new family businesses that have already achieved major export successes. Many Hungarian family businesses have achieved huge success in the international arena in recent years. These companies have not been in the spotlight much so far, so we would like to give them a chance to present themselves. Representatives of the ministries responsible for foreign trade and international expansion as well as those of the Hungarian Export Promotion Agency (HEPA) will, of course, also feature in the Hungarian Focus.
Event guide to the Hungarian capital page 27
A busy year for the Ambassador page 25 Hungarian top managers optimistic about global economic acceleration page 23
Hungary’s economic recovery is faltering as industrial output plunged and retail sales stagnated, raising concerns over the country’s ability to rebound from recession.
The Hungarian forint weakened against the euro, adding further pressure to the fragile recovery.
Industrial production fell by a workday-adjusted 6.4% in December compared to a year earlier, driven by a downturn in key manufacturing sectors, including automotive and electronics, according to Hungary’s Central Statistical Office (KSH). Meanwhile, retail sales grew by just 0.1%, marking the slowest pace in over a year.
The Ministry of National Economy (NGM) attributed the slump to Germany’s prolonged recession, which continues to weigh on Hungary’s export-driven industries. Factories in Hungary continue to operate at reduced capacity due to weak foreign demand.
Although Hungary officially exited recession in the fourth quarter, the latest data suggests the economy is far from regaining momentum. This poses a challenge for Prime Minister Viktor Orbán, who is looking to revive growth ahead of next year’s elections, as his ruling party faces a rising opposition movement.
The Hungarian currency lost 6.9% of its value against the euro in 2024, making it the worst performer among Central European emerging-market currencies.
“Short-term prospects for the industry remain weak,” Erste Bank analyst János Nagy said in a note to clients, though he noted that domestic consumption could gradually recover following December’s slowdown.
The Hungarian government has projected 3.4% GDP growth in 2024, banking on increased output from three major new factories – BMW, Chinese carmaker BYD, and battery giant CATL. However, analysts remain skeptical, warning that external risks could limit industrial expansion.
INVESTMENTOUTLOOK REMAINSMIXEDIN HUNGARY
According to the European Investment Bank (EIB) Investment Survey (EIBIS) 2024, four in five Hungarian firms invested in 2023 and this is similar to last year’s EIBIS findings. However, the investment outlook has fallen and is now negative with more firms expecting to reduce rather than increase their investment in EIBIS 2024.
The investment outlook remains mixed. Hungarian firms are, on balance, negative about the political or regulatory climate, the economic climate and business prospects in the sector, with more firms expecting a deterioration rather than an improvement in the next 12 months. In particular, Hungarian firms are more negative, in net balance terms, than EU firms
on the record
about the outlook for business prospects. However, Hungarian firms are slightly optimistic about the availability of internal and external finance.
The majority of Hungarian firms (73%) are satisfied with their overall investment level over the past three years, but around one in five (18%) report an investment gap. Hungarian firms were more likely to focus their investment on replacement rather than expansion compared to last year’s findings. Whilst fewer Hungarian firms focused their investment on capacity expansion in the last financial year, they were still more likely to do so than other EU firms (38% vs. 26%). Looking ahead to the next three years, Hungarian firms expect to prioritize replacement investment over expansion.
In EIBIS 2024, concerns about supply chain disruptions declined for both Hungary and the EU. The main trade-related challenge for Hungarian firms is access to commodities or raw materials. In response to trade shocks, Hungarian firms are more likely than EU firms to have invested in digital inventory and inputs tracking but less likely to have increased their stocks and inventory.
78% of Hungary's 100 largest companies prepared a sustainability report last year, and their performance in terms of emissions was better than the global average, KPMG revealed.
According to the consultancy firms's international survey, the leading domestic companies are performing in line with the global average in sustainability reporting, although the majority of them are foreign-owned companies reporting through their parent companies, so the results do not exclusively reflect the steps taken in Hungary. Domestically, the automotive and pharmaceutical companies proved to be the best performers with a 100% reporting rate.
According to the release, 65% of Hungarian companies disclosing sustainability information cited climate change as a business risk, 64% cited social risks and 62% cited corporate governance challenges. Reducing carbon emissions has been a priority for years, and the proportion of Hungarian companies in the top 100 that have prepared a decarbonization strategy has risen from 70-92% since 2022. KPMG says this is a significant achievement given that the average for the world's 100 largest companies is 80%. However, they noted that as sustainability requirements become more stringent, companies will have to make greater efforts, and not just the largest ones, as small businesses will also be increasingly expected to meet these criteria. In the future, companies will have to report more comprehensively than at present on their sustainability strategy, their objectives, the risks and opportunities they face.
MORETHAN 300,000 SOLARPOWERPLANTS INHUNGARY
Over 300,000 solar power plants, including industrial ones, are already in operation in Hungary, and by spring, the household solar systems alone will reach this milestone, the Ministry of Energy has announced.
According to preliminary data from the Hungarian Energy and Public Utility Regulatory Authority (MAVIR), the total installed capacity of domestic solar power plants had risen to over 7,750 megawatts by February. Almost two-thirds of the capacity, or about 5,000 megawatts, was provided by the roughly 5,000 industrial and captive installations.
More than 296,000 of the domestic systems are now in operation, most of them on the roofs of detached houses. Their number has increased a thousandfold compared to 2010, topping 300,000 within months.
The ministry recalled that a quarter of the energy produced in Hungary last year came from solar power plants. The 25% figure is the best in Europe, taking the top spot in the ranking from Greece, which led the ranking in 2023.
OVERAMILLIONAIRCRAFT INHUNGARY'SAIRSPACELASTYEAR
The Hungarian air traffic service provider HungaroControl recorded record traffic in Hungary's airspace in 2024 with 1,143,937 aircraft, of which almost 84% were overflights. The company says strong traffic is expected to continue this year.
HungaroControl was the first in Europe to abolish the air route network in the entire Hungarian airspace and to introduce unrestricted free use of airspace for aircraft exactly ten years ago to the day. The so-called Hungarian Free Route (HUFRA) system allows aircraft to fly the shortest possible routes between entry and exit points in Hungarian airspace.
This has reduced the number of flights crossing over the country by 15 million kilometers since 2015, saving airlines at least USD 33 million in fuel and 180 million kilograms of carbon dioxide in global airspace.
HungaroControl Plc., a state-owned company employing more than 800 people, provides air traffic services in Hungarian airspace and, at the request of NATO, in the high airspace over Kosovo. The company's activities include the training of air traffic personnel and air navigation research and development.
As expected, 2025 started actively on the domestic real estate market, with 9,267 sales in January, a 9% decrease compared to December, but almost 11% more than in January last year, Duna House said on Tuesday, based on its own estimates.
According to the real estate brokerage's forecast, the real estate market will gradually strengthen in terms of transaction numbers and prices, in which, in addition to home purchases, investment sales will also play a major role.
Hungarian data by Credipass, the international financial brand of the group, says HUF 120 billion of mortgage loans for residential purposes were contracted in the mortgage market in January this year. This is a 3% increase in volume compared to the data of the National Bank of Hungary in December last year, and a 46% improvement compared to the central bank data in January last year.
As in the real estate market, the mortgage market is expected to strengthen further during the year, Duna House said.
company briefs
INTERNATIONAL REAL ESTATE GIANT ENTERS THE HUNGARIAN MARKET
The NUMA Group, one of Europe's leading digital tourism operators, has announced its entry into the Hungarian market with the opening of its first innovative 170-unit property in the heart of Budapest, further strengthening its presence in the Central and Eastern European region.
The project is a partnership with GTC, a leading investor and developer in the Central and South East European real estate market, and is the company's first real estate investment in tourism. The new property is located in Erzsébetváros, the vibrant District 7 of Budapest. Following five properties in Prague and three in Vienna, the Budapest investment marks another milestone in NUMA's Central European success story, according to the press release issued.
NUMA's Budapest development will be housed in a 19th century building, which will be fully renovated to combine a historic ambience with modern design and NUMA's own innovative technology. The joint work of the company and GTC reflects their commitment to sustainable urban development. By transforming the building, NUMA emphasizes the importance of sustainable use of existing properties, while reducing environmental impact and contributing to the preservation of Budapest's
built heritage. Erzsébetváros is one of Budapest's most vibrant neighborhoods, attracting visitors with its historical richness and modern elegance. This new property fits perfectly into NUMA's mission to make its guests feel like locals. The famous rum bars, unique designer shops, unique streetscape and diverse gastronomic offerings all contribute to this authentic experience.
"This cooperation is our first investment in the tourism property market, further expanding our property portfolio," GTC CEO Gyula Nagy said.
“By entering the tourism market, we are responding to evolving market needs while strengthening our investments with high yielding, flexible assets. This partnership creates an opportunity to combine our real estate development experience with NUMA's proven excellence in property management expertise and technology-based solutions," he added.
HENKEL EXPANDS WITH INNOVATION IN HUNGARY
Henkel Hungary has doubled the production capacity of its multi-technology adhesive plant in the western Hungarian village of Környe, recognized as a key operation within the global network of the German multinational. The EUR 30 million investment involved the installation of new production lines, enabling the company to better serve its furniture and food industry clients. The development has also created 20 new jobs.
Since its establishment in 1987 as Henkel’s first entity in the Central and Eastern European market, Henkel Hungary Ltd. has been offering adhesive solutions for both consumer and industrial applications for 38 years. The company plays a leading role in adhesives, sealants and functional coatings, with the Környe plant serving as a critical hub in supplying industrial partners across Europe.
BURGER KING OPENS ITS 59TH RESTAURANT IN HUNGARY
Burger King opened a restaurant in Budakalász, the 59th Hungarian unit of the fast-food chain, this February, creating around 30 jobs in one of the key settlements of the North Buda region. Burger King's Hungarian operator, Fusion Plc., says that they are continuing to expand in Hungary, with another store being already under construction in Székesfehérvár and work is also underway on a new unit in Budapest's Pólus Center shopping mall.
In Hungary, the first Burger King restaurant opened in 1991 in Budapest's downtown Oktogon square. According to the operator, they have been striving for years to make their burgers using ingredients from Hungarian suppliers, thus guaranteeing the quality expected.
Construction of the restaurant in Budakalász started in spring 2024 and was completed in January 2025. László Sümegi, president of Fusion Plc., said in a statement that Budakalász is of strategic
Located in the Környe Industrial Park, Henkel’s multi-technology adhesive facility is among the company's three most complex plants globally. The recent development included a new production line, the expansion of an existing line, and the extension of the production hall. The new extruder technology in Környe represents an innovative and highly efficient method for manufacturing thermoplastic hot melt adhesives. These adhesives are widely used in industrial applications that require large amounts of adhesive. These glue granules melt under heat and quickly solidify for strong, reliable bonding. Products manufactured on Környe's new extruder will primarily be used in furniture production, especially for securely attaching wood and plastic components.
As a result of the expansion, the plant's annual production capacity has doubled to 30,000 tons, but Henkel's growth ambitions go further. The company plans to increase capacity to over 60,000 tons in the next three years.
WAREHOUSE AUTOMATION CONTROLLING SYSTEM DEVELOPED IN SZEGED
The Hungarian IT company Csiha Plc., based in Szeged, SE Hungary, is developing a controlling system for the automation of warehouses with the support of the National Research, Development and Innovation Office (NKFIH).
According to the firm's press release, the important aim of the developments in the logistics and warehousing sector is to achieve a higher degree of automation.
The HUF 690 million project – two thirds of the costs of which are covered by the state grant – aims to develop a technology that can be integrated into a warehouse management system to monitor manual picking, i.e. the selection and assembly of items according to customer requirements. To this end, the IT company's specialists are adding a new neural network-based camera system with a weighing process. The data collected from the two sources will allow the exact identification of the type and number of products.
The solution enables the digitization of collaborative warehouses and associated logistics processes. In the warehouse, the pallets can be automatically loaded, moved and transported to the picking point using a self-propelled automated forklift truck or a conventional forklift truck. The warehouse management system is thus capable of optimizing the storage and retrieval sequence of products, and of automatic inventory management.
The new procedure minimizes human intervention and thus the possibility of errors, reduces the number of incorrect picks and thus the amount of unused goods, and thus the overall environmental impact.
According to the company's survey, FMCG (fast-moving consumer goods) and commercial companies are the most interested in the development.
importance for the fast-food chain not only because of the city's residents, but also because of the M0 ring road and the traffic on the main road 11.
The new unit is the first drive-through restaurant in Hungary to be given the completely renewed 'Pavilion' design. They added that the investment also contributed to the beautification of the Omsk Park environment, with more than 170 trees planted by Auchan and the Fusion team.
According to publicly available company data, Fusion Plc. achieved a net sales revenue of HUF 56.2 billion in 2023, up from HUF 40.4 billion in the previous year. The company's after-tax profit in 2023 was HUF 4.5 billion, up from HUF 2.9 billion a year earlier. Fusion Plc. employed a total of 1,712 people in 2023.
The Burger King restaurant chain opened its first restaurant in Florida in 1954 and is now present in 100 countries around the world. Globally, its more than 15,000 restaurants serve more than 11 million customers a day and employ around 300,000 people.
company briefs
PAKS PLANT, A MAJOR PRODUCER OF HUNGARY'S ELECTRICITY
The MVM Paks Nuclear Power Plant Plc. closed 2024 with the fifth highest production result in its history, with the plant's four units producing a total of 16,016.6 GWh of electricity, which is almost half of the gross Hungarian electricity production and one third of the gross domestic consumption.
The Paks plant has prevented a total emission of nearly 250 million tons of carbon dioxide so
far, the company said in a statement. It recalled that last year, the International Atomic Energy Agency (IAEA) recognized Paks' commitment to safe and reliable operation in its ten-yearly comprehensive safety review.
Its OSART investigation report also recorded four 'good practices' at Paks, including a proprietary software that accurately and reliably predicts the timing of an initial event and the important
MAJOR BOSCH INVESTMENT IN MISKOLC
German industry giant Bosch has completed a nearly 100,000-square-meter logistics and warehouse center in Miskolc, NE Hungary. The EUR 150 million investment will supply 26 countries with a wide range of Bosch products.
Located on the site of a former municipal airport, the significance of the investment extends far beyond the town, the region, or even Hungary.
The highly automated facility not only serves Bosch’s nearby plants but also acts as a supply hub for East-Central Europe’s distribution centers, handling finished products from Bosch’s power tool factories, among others.
The new facility also processes orders from customers in Hungary and the Adriatic region,
and receives raw materials from suppliers in Europe and beyond, which will then be distributed to production facilities based on the assembly line needs.
Situated near the M30 motorway and railway line No. 92, the 98,500-square-meter complex, which further strengthens Miskolc's standing in Bosch Group's global value chain, also plays a key role in storing and distributing finished products, including automotive components, as well as managing the packaging materials for suppliers and customers.
The EUR 147.6 million investment further strengthens Bosch Group’s presence in Hungary as well. With close collaboration between its eight Hungarian subsidiaries, the German company is one of the country’s largest employers, providing jobs for more than 18,000 people. Globally, the Bosch Group employs nearly 420,000 people, with a revenue of EUR 90.5 billion last year.
events that may result from it, which are now embedded in the international nuclear industry's professional community, they said.
It was pointed out that in the third quarter of 2024, the plant was ranked in the top 30% of the list of all the world's nuclear power plants, and all four units were in the top 25% of a list comparing some 150 units at the WANO (World Association of Nuclear Operators) Paris Center.
Hungary's Goodwill Pharma Plc. has expanded its warehouse capacity, built a research and development and innovation laboratory, a new head office and a pharmaceutical manufacturing plant in Szeged, SE Hungary, with an investment of almost HUF 5.
Ferenc Jójárt, CEO of the Szeged-based company, said at the ceremony that Goodwill Pharma is proof of how a rural town in Hungary can become a multinational pharmaceutical company.
Between June 2022 and the end of November last year, three sites were developed under the Hungarian Multi Program, with HUF 1.767 billion in conditional non-reimbursable EU and national funding.
The company has built a logistics center for storing 4-5,000 pallets of medicines. It has built a production plant that meets pharmaceutical industry standards, and the first machines have already arrived, so that the first medicines produced in Szeged could be ready by the
end of the year or early next year. To expand its research and development activities, the company has built a new pharmaceutical laboratory and a new office building in the center of Szeged, the CEO said, giving details of the developments. The company is planning to enter the standard market of the Budapest Stock Exchange (BSE) within a month, to carry out a further private capital increase and, if the market situation allows, to launch a public offering in the second half of the year, he added.
OTP NAMED BANK OF THE YEAR
The nineteenth edition of Hungary’s most prestigious banking sector competition, the 'Mastercard – Bank of the Year', has concluded. This year, the competition was revamped, with the nine award categories grouped into three main segments: in Daily Banking, OTP Bank delivered the most outstanding performance; in Innovation, K&H Bank took the lead; and in the Beyond Banking segment, Gránit Bank was recognized by the expert jury. The grand prize, Bank of the Year 2024, was awarded to OTP Bank.
collaborations, and CSR programs. Tackling increasingly complex challenges requires continuous innovation, and we see that the industry is making remarkable progress, even on the global stage. The entire ecosystem can be proud of these achievements – congratulations to everyone!"
Hungary’s financial and banking sector players competed in several categories for recognition of their top services, products, solutions, campaigns, and programs. As per tradition, an esteemed panel of industry experts assessed the submissions.
OTP Bank won the Bank of the Year award, excelling in the Daily Banking segment, where it also secured first place in the Best Premium Banking Offer and Best Financial Solution for Young People categories. The Best Business Segment Program award in this segment was given to BUPA – MBH.
As Gergely Márkus, Country Manager for Mastercard Hungary and Slovenia, was quoted in the statement issued about the event, "the Mastercard – Bank of the Year competition has a long tradition, and it is inspiring to see how the evolving sector has expanded the scope of recognition beyond core banking services. In addition to everyday financial services, we also evaluated solutions in areas such as cybersecurity, open banking, fintech
In the Innovation segment, K&H Bank emerged as the top performer, including a win in the Best Easy and Convenient Banking Experience category, while UniCredit Bank received the award for Best CSR Initiative.
analysis
USAID: A SOFT POWER – AND A SOFT TARGET
THE AMERICAN AGENCY’S ORIGINAL PROGRAMS SHOULD BE KEPT WITH A STRONGER CONTROL
BY TAMÁS MAGYARICS
The United States Agency for International Development (USAID) was called into being by the Kennedy administration in the early 1960s together with such organizations as, for instance, the Peace Corps or the Alliance for Progress. The goal was clear. In the fight for the ’hearts and minds’ of the people in the Cold War, these and similar organizations, including the Congress for Cultural Freedom (founded in 1950) were the components of the so-called soft power of the U.S. They were to demonstrate, among other things, that the U.S. had broken with the balance of power politics exercised predominantly by the Europeans before World War II, and that Washington had adopted a new, value-based approach to international affairs. Some of these programs have fallen by the wayside over time, but the United States Agency for International Development (USAID) has survived.
Not
so hidden political aspect
Over time, it acquired new missions besides the original ones of economic aid, disaster relief, countering poverty, fighting pandemics and the like. It goes without saying that these humanitarian and economic assistance programs did have a not so hidden political aspect as well. On one hand, they were to enhance the prestige of the U.S. as a benevolent country and, on the other one, to
showcase the ethical superiority of a democratic society over autocratic ones. It was also an open secret that the activities of USAID were closely coordinated with those of other government agencies: they were complementary tools in promoting American interests all the world over. USAID’s activities, however, have become more overtly political recently, and started to reflect the neoconservative agenda of democracy export recently. Moreover, as for the values, they were increasingly mirroring the views of the so-called progressives in the U.S., simply put, the woke ideology, which is not really mainstream even in the U.S. itself as the presidential and congressional elections in 2024 proved beyond doubt. When USAID practically entered the domestic political arena (as foreign policy is reflecting domestic political priorities and vice versa), it was inviting a backlash from the MAGA Republicans on several accounts.
A soft target
First, the Trump Republicans do not believe in active democracy promotion in foreign lands. They believe in traditional Realpolitik; that is, they do not think that the U.S. should have an obligation or mission to promote democracy or democratic values in foreign countries, especially by force. Second, USAID has grown into a relatively large bureaucracy as a quasiindependent agency. Elon Musk’s DOGE is intending to reduce the sprawling federal bureaucracy. True, cutting back USAID’s personnel is not a game changer
in this endeavor, but it is a soft target for the Trump administration. It does not have a strong domestic constituency and, moreover, it has become one of the favorite institutions of the progressive Democrats. In reality, cutting it down to size is an issue that is not likely to provoke significant opposition either by Congress or by the public at large. Third, one of the reasons why USAID is a relatively soft target for budget and bureaucracy cutting is that the organization has made a number of unforced errors, especially under the leadership of Samantha Power. Justifying spending hundreds of thousands or millions of dollars for such projects as promoting gender equality among coffee growers or supporting the performance of transgender operas in faraway lands (and this bizarre list can be expanded at will), as well as having hundreds of media outlets and thousands of journalists on its virtual payroll, is a rather tall order. The real problem is not the amounts of money spent on similar programs, but it is the image of USAID wasting taxpayers’ money on a number of profligate projects abroad that has gotten the organization into hot water. Fourth, it did not help either that the distribution of billions of dollars out of the budget of USAID was not a model example of transparency. Fifth, though it should not have surprised anyone, the organization has been exposed as an extended arm of sorts of other government agencies, and one that has been, in essence, a front organization. Sixth, USAID was operating a bit like a state within a state, without too much oversight either by the Secretary of State or by Congress.
Back to the original aims
The new Secretary of State, Marco Rubio has suspended all the funding and activities of USAID until an investigation is concluded about the potential overreach of the organization. Despite all the above, it would be a grave mistake ’to throw the baby out with the bathwater’, that is, to terminate all the activities of USAID and to disband the agency. What seems to be a sensible solution is purifying its portfolio from the overt pushing of woke ideology and, on a more general level, democracy export as conceived by the previous administrations. Nowadays, the U.S. has to compete with the seemingly non-ideological, pragmatic global policies of China. However, Virgil’s ancient warning has not lost its validity since the Ancient times in case of great power politics and largesse: ”I fear the Greeks even when bearing gifts.” The competition for global primacy is intensifying, and the West in general, and the U.S. in particular, has to use each and every tool in its power if it wishes to retain its global positions which have more beneficial than not for the world in the past decades since the conclusion of the Second World War. USAID’s original programs concentrating on humanitarian aid, economic assistance and disaster relief should be kept with a stronger control, oversight and larger transparency over the agency in the future.
Tamás Magyarics is a foreign policy analyst
BY SÁNDOR LACZKÓ
The theme of the World Expo 2025 to be held between April 13 and October 13, 2025 in Osaka is ‘Designing Future Society for Our Lives’. As to how this theme reflects Japan's vision for addressing global challenges and shaping the future, Ambassador Ono highlights to Diplomacy&Trade that world expositions are places where wisdom from around the world is gathered to tackle various global issues. “It is our great honor to host the World Exposition in Osaka this year, following the Osaka Expo in 1970 and the Aichi Expo in 2005.”
In line with its theme, the 2025 Osaka-Kansai Expo aims to provide a place where visitors can experience ‘People's Living Lab’. “We also aim to create new values for multiple global challenges and build a sustainable future through contributing to the achievement of the sustainable development goals and realizing Japan’s national strategy called ‘Society 5.0’,” she adds.
The ’Society 5.0’ she mentions is also known as the Super Smart Society. It is a concept for a designed society introduced by the Japanese government in 2016, a human-centered one in which economic development and the resolution of social issues are compatible with each other through a highly integrates system of cyberspace and physical space.
First Hungarian pavilion at an Expo in Japan
Hungary, which has a rich cultural and innovation heritage, is one of the participating countries at this year’s world exposition. When asked about how she sees Hungary’s contribution to the Expo's theme and what role she expects the Hungarian pavilion to play in showcasing this, Ambassador Hikariko Ono stresses that “we are very excited to learn that for the first time, Hungary has its own pavilion, designed by a Hungarian architect, at an Expo in Japan. I heard that the Hungarian pavilion aims not only to promote tourism, but also to strengthen diplomacy, business and investment between our two countries.
I have also been informed that Hungarian folk music will be performed live, underscoring the fact that music
JAPAN WELCOMES THE WORLD TO OSAKA
INTERVIEW WITH JAPANESE AMBASSADOR HIKARIKO ONO
is a universal language that unites us all. I believe these Hungarian initiatives align well with the Expo’s theme of respecting diverse cultures and ideas. Personally, I am really looking forward to seeing the exhibition of the traditional Hungarian craft of Miska and its characters.”
2025 world exposition in Osaka also has the potential for further strengthening cultural, economic or technological ties between Japan and Hungary. As the ambassador notes, “for over 150
years, Japan and Hungary have built a friendly cooperative relationship. At present, around 180 Japanese companies have established operations in Hungary, providing employment for over 30,000 people. The Osaka-Kansai Expo 2025 will be a valuable opportunity not only to promote cultural exchange, but also to further strengthen the economic ties between our two countries. In the future, I hope to see Japanese companies from various industries expanding in Hungary, investing in research and development as well as Hungarian companies, including start-ups, expanding their operations into Japan.”
Technologies for a greener world
Sustainability and green technologies are critical topics for global collaboration. Expo 2025 plans to highlight innovations in these areas as well and there are specific Hungarian technologies and ideas aligning with this focus.
Ambassador Ono points out that at the OsakaKansai Expo 2025, “one can experience advanced technologies that will help us move towards a carbon-neutral society, such as the creation of roads using CO₂ and direct CO₂ capture from the air. In addition, we will focus on Reducing, Reusing and Recycling (3Rs) waste generated during and after the Expo to achieve a sustainable society.”
She adds that “at the Japan Pavilion, we will demonstrate a biogas power generation cycle that utilizes food waste from the Expo site, along with other advanced Japanese technologies.
I sincerely hope that the people of Hungary will have the firsthand opportunity to experience these technologies. I understand that renewable energy usage is progressing in Hungary. It is our hope that countries can work together to create a better future through friendly competition and cooperation.”
A glimpse into the future
Visitors from Hungary and around the world can expect a wide range of experiences at Expo 2025 and there will be specific features and events here that might particularly resonate with Hungarian visitors. As the Ambassador puts it, sustainability initiatives will be one of the key attractions, but there are also many other experiences for visitors to enjoy.
The venue will feature pavilions and exhibitions from over 160 countries and international organizations. Throughout the Expo, nearly every day will be designated for a national day or a special day for
japanese focus
an international organization, offering visitors the opportunity to experience a diverse range of cultures and traditions through various ceremonies and cultural events. Hungary’s national day at the Expo is scheduled for May 24th.
At the Osaka-Kansai Expo 2025, the Future Society Showcase project will present demonstrations of next-generation technologies and social systems that offer a glimpse into the future, including hydrogen fuel cell ships, cutting-edge EV buses and flying cars.
“Moreover, at the Virtual Expo, you can explore the virtual venue as an avatar from Hungary, so, please
take this special opportunity for you to experience the EXPO even virtually,” she says.
For the benefit of future generations World expositions often leave a lasting legacy. Regarding the long-term impact Expo 2025 may have for Japan and how it might influence future collaboration between Japan and Hungary, the Japanese ambassador to Hungary reminds that the 1970 Osaka Expo attracted around 64 million visitors and showcased many technologies that were later put to practical use, such as wireless telephones, district heating and cooling systems or electric vehicles. More than 50 years later, the site of the Expo remains a place for citizens to relax, very much like Budapest’s City Park, which has served as a recreational space for over 100 years since the Hungarian Millennium Exhibition, commemorating the 1000th anniversary of the founding of the country.
“I am confident that the 2025 Osaka-Kansai Expo will also feature many technologies that will benefit future generations. Further, I hope that the Hungarian Pavilion will become a new starting point for deepening mutual understanding and cooperation between Japan and Hungary. This will be a precious opportunity for many Japanese people to experience Hungarian cuisine and culture, and for Japanese and Hungarian companies to connect in the business-dedicated areas,” Ambassador Hikariko Ono concludes.
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Headquartered in Tokyo, the Japan External Trade Organization (JETRO) was established by the Japanese government in 1958 as the nation’s principal organization for implementing and promoting trade with other countries. Its Budapest office was founded in 1991 and since then, it has successfully promoted business exchange activities between Japan and Hungary. The office’s General Director, Yasunari Miyauchi highlights to Diplomacy&Trade the most frequent tasks JETRO Budapest has been performing recently.
PROMOTING MUTUAL TRADE AND INVESTMENT
The first one he mentions is to collect political, economic, and business information on Hungary and provide it to Japanese companies. “We write simple reports and disseminate them on JETRO'S website, and also brief business people who come here mainly from Western Europe on a business trip basis.” The second is to introduce Japanese products such as food, contents, and design to Hungarian buyers. “We arrange individual business meetings, and recently we are also arranging online meetings. We also deliver samples of food or design products to Hungarian buyers, and if they are interested, we arrange online business meetings,” he points out.
JETRO'S Budapest office has also dispatched a business mission recently to Serbia: Japanese companies, mainly from Japan and Western Europe, visited the region and held dialogues with government officials, business forums, business meetings and company visits.
J-Bridge
There is a business platform to facilitate collaboration between Japanese and overseas companies. As the General Director explains, this J-Bridge platform plays an important role in promoting international collaboration between Japan and other countries by introducing
promising start-ups to Japanese companies.
More than 2,600 people from over 1,700 Japanese companies interested in open innovation with foreign companies have registered with the program. On the other hand, the website contains information on more than 1,100 promising start-ups and foreign companies in Japan that JETRO carefully selected from around the world.
On request, JETRO arranges online business meetings as a meet-up service.
“Currently, our office is working on networking with relevant agencies and organizations to understand the Hungarian ecosystem. At the same time, if we come across a promising start-up, we ask them if they are interested in international collaboration with Japanese companies.”
Increased geographical scope of authority
Since last fiscal year, JETRO Budapest office’s coverage area has been widened, which means it no longer includes only Hungary but now, Serbia and Kosovo as well. In this framework, a Japanese business mission was sent to Serbia last October. “Currently, the Balkans are attracting attention due to their low costs, and recently Japanese companies such as Nidec and Toyo Tire have established facilities in Serbia. The Serbian
government is calling for more investment from Japanese firms, and this time, they offered us free charter flights. As a result, the business mission, which was originally planned for about 20 people, ended up with 100 people participating. During this trip, Serbian President Aleksandar Vučić and ten ministers were at the disposal of mission group for business dialogue. The business forum also provided an opportunity to disseminate information and discuss issues of business in both countries. Furthermore, the oneon-one business meetings provided an opportunity for concrete business discussions to begin. In addition, by visiting local IT and automobile-related companies, the participants were able to gain an understanding of the business situation in Serbia,” Yasunari Miyauchi highlights.
Food business event
Another event that the Budapest office actively participated in – this time together with the Japanese Embassy – was about food & beverages B2B support (wagyu, spirits, Japanese tea & sweets, etc.) At the end of January, 15 Hungarian buyers were invited to meet with four suppliers of Japanese food products. Wagyu beef, a Japanese sweet called yokan, Japanese tea and sake were on display, and subject of lively business discussions.
“At this one-day event in Hungary, first, we briefed Japanese suppliers on the Hungarian food market. After that, we held the one-on-one business meetings in the morning, and a total of 25 meetings were held with the four suppliers. Networking took place during lunchtime, also serving for the purpose of free-for-all business meetings. In the afternoon, we escorted Japanese suppliers to several retailers selling Japanese food and gave them a tour of the Hungarian food market. Since many of the Japanese products were made with great care, many buyers enjoyed the taste and high quality of the products. On the other hand, some buyers said that the distribution channel via Western Europe is still expensive even with the weak yen, which is a problem,” the General Director notes.
Presenting Japanese scallop
The latest promotion activity by JETRO’s Budapest office is that of Japanese scallop this February. Scallops are a solid mass of tough muscle and are a very high-protein food, consisting of about 80% protein, excluding water. They are also rich in amino acids, which are the source of their delicious taste. One feature is the prominently high amount of glycine, which gives scallops their unique sweetness. They are also rich in minerals such as iron and zinc, and vitamins B1 and B2. With its high protein content and low-fat content, it is attracting more and more attention as a healthy food.
Another reason for the global popularity of Japanese scallops is their excellent processing technology. While shellfish in general are considered difficult to freeze, but scallops are well suited for freezing, and instant freezing technology has enabled scallops to retain almost the same taste as fresh scallops. Quick-frozen scallops produce less drippage after thawing, making it easier to maintain freshness and flavor. This makes them suitable for raw consumption, such as sashimi and sushi.
Visitors to the restaurant offering scallop were impressed by the refined sweetness. They commented that the texture was soft and melted in their mouths. They also commented that the scallops had a stronger flavor than the Mediterranean scallops they had previously tasted. Some of them are looking forward to having them on the regular menu. Many praised the sweetness and texture in particular. Some also commented on the high quality of the scallops, saying they were surprised that such high quality was maintained even though they were transported such a long distance from Japan to Hungary.
Relevant partners
Regarding the Hungarian partners JETRO’s Budapest office, Yasunari Miyauchi mentions that “for example, if a Japanese company wants to invest in Hungary, we will connect them to the Hungarian Investment Promotion Agency (HIPA). Also, when we dispatch a business mission, we ask for cooperation from the relevant ministries and agencies. Furthermore, food events are sometimes held jointly with the Embassy, and sometimes in cooperation with cooking schools or distributors. For events with a strong cultural element, we may also work with the Japan Foundation. Anyway, we work with organizations and companies that have strengths and share roles in our projects.”
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LEADING WITH DEDICATION AND COMMITMENT
DREHER BREWERIES SHIFTED SUSTAINABILITY INTO THE CORE OF THEIR STRATEGY
Last August, a new CEO from England took the helm at the prestigious Dreher Breweries in Budapest. Mike James had been selected for the position based on his successful career within Asahi Europe & International, the owner of Dreher Breweries. His key responsibilities include overseeing the largest ever investment of HUF 100 billion in the Hungarian beer industry and maintaining the company's growth trajectory.
“I was very excited to be given the opportunity to move to Dreher and experience the Hungarian market. This is because in recent years, there has been a remarkable turnaround within the company in terms of business and corporate culture, which truly inspires me to continue to build on this progress. The Hungarian beer market is very competitive and heavily regulated, for example, the implementation of Deposit Return System (DRS) last year and thus, it offers a lot of good opportunities to learn,” the new CEO tells Diplomacy&Trade.
A complete transformation
Regarding the HUF 100 billion investment, he says that overseeing it is “actually a very complex process in that to ensure the investment is successfully carried out over the next decade it is essential we continue to deliver a strong performance and ensure the build progresses to plan.
It is very important for me to understand and learn the local culture and to get to know the way Hungarians think. That is why, in the first few months, I observed, read, learned and had many conversations with colleagues and industry professionals. I have even started to learn Hungarian which is a whole new challenge! I believe all of these are essential for me to lead the team as a responsible leader,” he adds. In the framework of this investment, entirely self-financed without any state or EU financial
support, Dreher Breweries is undergoing a complete transformation based on a ten-year master plan. The first phase will see HUF 30 billion spent by the end of 2026. The improving performance of the business over the previous years provided the foundation for Asahi’s approval of this investment.
The brewery in Kőbánya (District 10 of the Hungarian capital) has been operating continuously for 170 years and much of the old, outdated technology will be replaced. “The end-to-end brewing infrastructure will be modernized through upgrading equipment, machinery and technology which will not only improve efficiency but also contribute to our ambitious sustainability objectives by reducing energy and so our carbon emissions and also reducing our water consumption,” Mike James explains.
The first phase of the ten-year master plan project will see the construction of the new energy center and the replacement of the fermentation and conditioning tanks. The second phase of the master plan is scheduled to begin in 2027. Its funding will be reviewed periodically in alignment with completed commitments, in consultation with Asahi’s European representatives and the Japanese headquarters.
For the CEO, it is a once-in-a-lifetime experience: to ensure the longevity of this incredible 170-year-old brewery for the next 2-3 generations (30-40 years). “I am proud and excited because this has a significant
impact on the people working here, the corporate culture and the Hungarian beer market. I took on this responsibility with dedication and commitment when I arrived and I will continue to lead in this spirit.”
Since late last year and over the next few months much of the work has been below ground, strengthening the relevant part of the network of cellars that run across District 10 underneath the brewery ready for the placement of the new fermenting and conditioning tanks, which are due to arrive in early summer. Above ground, the foundations are being cleared for the new Energy Center.
Cherishing the rich heritage of Dreher
Innovation has always played an important role in the life of Dreher Breweries – and it continues to be so. Mike James points out that “consumers expect continuous innovation and at Dreher, we respond to these trends and diverse demands by constantly introducing new products and flavors, entering new segments and delivering highquality consumer experiences in both alcoholic and non-alcoholic categories. Similar to previous years, Hungarian consumers are increasingly drawn to premium products, partly because most innovations occur within this segment. Additionally, alcohol-free variants are becoming more popular due to the growing emphasis on moderation and a health-conscious lifestyle.” Beyond the products themselves, the corporate and brand story plays a crucial role. At Dreher,
this legacy is continuously being built, as Hungarian beer history – especially the rich heritage of Dreher – holds significant value in the hearts of consumers.
Sustainability determines our future
Asahi Europe & International's 2030 Group-wide corporate strategy is based on four pillars: People, Planet, Portfolio and Profit (the four Ps). Of these, the Planet P focuses on all things related to sustainability. The CEO notes that “we are living in a decade, which will have a very significant impact on determining our future. If there was ever a time to act, it is now as things will not start improving on their own. As leaders in most of the markets we operate in, we believe we need to lead by example. We have shifted sustainability into the core of our strategy and plan to accelerate our efforts moving forward both through making big and lots of smaller changes. Through our actions, we contribute to the UN Sustainable Development Goals, focusing on areas where we can make an impact, utilizing our scale, supply chains or partnerships. What we are facing is bigger than us. We can do our part, but we also understand the need to engage with others to serve a greater good. Building on what beer has been doing for centuries – bringing people together through Creating Meaningful Connections. This is our 5th P which is our Purpose which underpins the rest of the 4 Ps.”
He stresses that operating sustainably is fundamental to the company’s operations, including its production processes. “We continuously monitor and look for ways to improve our environmental performance – from raw materials to their conversion into finished products.
We place special emphasis on reducing our energy consumption and so our carbon emissions, our water usage, reducing, reusing and recycling packaging, and responsible waste management. Dreher was one of the first breweries to switch to the DRS compliant packaging ahead of the end of the transition period on June 30th last year. With Dreher, people are not just buying beer; they are experiencing a piece of history, a way of thinking, a philosophy. For us, sustainability is not only about economic viability and the conscious use of scarce resources – it also means considering the internal and external environment of our brewery including the communities around us. Our commitment to long-term, responsible drinking is well demonstrated by our ‘Ésszel Iszom!’ (Smart Drinking) program, which has been promoting responsible alcohol consumption since 2009.”
Engaging employees
Mike James is known to have actively supported the development and engagement of employees in his previous positions – and he does so here as well. “At Dreher, the health and well-being of our employees are of paramount importance, with a safe work environment as the foundation. We see diversity as both a value and an opportunity to learn from each other. We support workplace inclusion and are committed to gender equality. Over my career, I have always adopted a principle of trying to leave the role, my team and the environment around me in a better state than when I found it. I think this is never more true than right now when I am lucky enough to lead a team who together are the custodians of this amazing 170-yearold-brewery and it is our responsibility to make sure that we leave the business in an even better place for the generations who will follow us,” he concludes.
photo by DÁVID HARANGOZÓ
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JAPANESE FUNDAMENTALS AND HUNGARIAN DEDICATION
BRIDGESTONE
TATABÁNYA LEADS THE WAY WITH ENHANCED FOCUS ON SUSTAINABILITY
“Serving society with superior quality” – this mission has defined the operation of Bridgestone Group and the corporation’s Hungarian factory, Bridgestone Tatabánya plant since the beginning. The principles of the Japanese founder, Shojiro Ishibashi permeates the operation of Bridgestone even today, referring not only to the quality of the products and services of the company, but also to its commitment for making the world around us even more livable.
Since production started in 2007 at Bridgestone Tatabánya, the company has been committed to ensuring the well-being and satisfaction of its colleagues in addition to producing high-quality products, while implementing value-creating community programs. The past years stand as a testament to all these aspirations.
Challenging times nurture resistant companies
In recent years, the automotive industry faced headwinds in the form of economic uncertainties, intense competition from other market players and fluctuating consumer purchasing. Despite the challenges, Bridgestone Tatabánya had in 2024 a year marked by developments, the expansion of its product range, community initiatives, social initiatives and earning multiple awards and recognitions.
The company not only leverages its strategic location and robust infrastructure to serve both Western and Eastern European markets effectively, but also adopted a proactive approach, ensuring seamless operations and allowing the factory to meet demand even during market disruptions.
Enhanced focus on sustainability
The pursuit of a greener future has long been a fundamental pillar of the company’s corporate policy. Within its commitments, the global ambition of Bridgestone is to halve its carbon footprint by 2030 and to cover its entire energy consumption from sustainable sources by 2050. Since then, both the Group and its plants have been working towards achieving these largescale goals.
From March 2020, Bridgestone Tatabánya covers 100% of its electricity consumption from certified renewable sources. The eco-portal’s heating, cooling, hot water supply, lighting and operation of electrical equipment is covered by solar panels. In the past few years, three heat pumps were put into operation, with a total capacity of 90kW. In the future, the company plans to expand the use of solar panels and to utilize biomass.
As Melinda Topolcsik, Managing Director of the Bridgestone Tatabánya factory says, “taking responsibility for society and the environment has been an integral and prioritized part of the company’s operations since its foundation more than 90 years ago, and it continued to be even more significant today.”
Creating community value with the help of colleagues
The Hungarian facility respects and embraces the traditions of its Japanese parent company, incorporating a corporate culture that prioritizes
the well-being of the local community; thus, it actively engages in numerous initiatives aimed at supporting and enriching the surrounding communities.
In 2024, the factory’s volunteers continued their active involvement in nature conservation efforts. The environmental initiatives included a community cleanup of the Vértes Kőhányás mountain area, revitalizing the flower beds on Dózsa György Street in Tatabánya by planting over 1,800 perennial plants, and helping to preserve the habitat of the highly protected Ferula sadleriana Ledeb by clearing bushes and
maintaining fences on the Nagy-Pisznice mountainside.
Immediate assistance and dedication were demonstrated last fall, during one of the most severe floodings of the Danube in recent years.
Bridgestone Tatabánya’s volunteers were among the first to respond, assisting with flood protection efforts in critical areas such as Neszmély and Nyergesújfalu.
Internal cohesion with community building
Supporting employee wellbeing, both physical and mental, with a variety of programs and
activities is a high priority for the company.
“At Bridgestone Tatabánya, almost every month of the year has a program or some kind gesture, in which I am very happy to take an active role,” Yoshii Kiyotaka, expert of the Bridgestone Tatabánya factory, who joined the Hungarian plant at the end of September last year, highlights. Yoshii-san has been working at Bridgestone for 32 years. Over the past 8 years, he has worked in three different factories as a senior production manager in Japan, acquiring broad knowledge of various tire plants. “I am pleased to see how much emphasis the Hungarian factory places on employee satisfaction. So far, I participated in a fundraising campaign and a hot chocolate program serving the delicacies to the colleagues. I am excited to participate in professional and community-building activities in the future,” Yoshii-san added.
At Bridgestone Tatabánya, the past years were about stability, strengthening common goals, community building, and creating social value, and the company’s efforts were marked by a strong employer brand, market presence and diverse recognition.
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Japan, the ‘Land of the Rising Sun’, is one of the most exotic tourist destinations in the world. “The true magnificence of Japan is that it offers something for everyone.” That is how Karolina Simon, the head of travel agency and tour operator Japanspecialist, describes the attractiveness of the far-eastern island country for visitors. With over 25 years of experience in the travel industry, she currently oversees Japanspecialist's global sales and operation, also being responsible for the overall market performance and strategic planning of the brand.
JAPAN –A LOVE OF A LIFETIME
JAPANSPECIALIST FULLY PERSONALIZES THE ITINERARY FOR THEIR CLIENTS
Karolina’s affinity for Japan shines through wherever and whenever she talks about her job. She recalls to Diplomacy&Trade that she joined the travel company in 2004 and was introduced to Japan and Japanese culture. “At that time, travel to Japan was a curiosity in Hungary, so, it was rarely offered by other agencies. I picked up the knowledge little by little over the years, but the more I learned about Japan and its customs, the more I felt that my knowledge was still not enough, so, I took every opportunity. I soon realized that for me, Japan is a love of a lifetime. As a travel ambassador, I have been promoting the diversity of the country ever since and I am proud to say that Japan has never disappointed anyone.”
Personalized itinerary
Japanspecialist seems to be more than just a travel agency. As Karolina explains, “nowadays, many travel agencies sell trips to Japan but it is just one of many destinations on their list. What is special about Japanspecialist
is that it is 100% Japanese-owned – its parent company is the largest Japanese travel firm, JTB Group – so, its entire focus is on Japan. We are committed to Japan, unlike many general travel agencies. Our vision to be the best and to grow into a global brand has not been deterred, even by the multi-year closure during the new coronavirus epidemic.”
She adds that they have no off-the-shelf products, no pre-made and pre-purchased trips. “We fully personalize the itinerary for each individual passenger after a consultation, no two offers are the same. And for our group tours, we are unique in the market in that we only work with guides who speak perfect Japanese and have lived on the island.”
Tailor-made trips
Regarding the type of tours Japanspecialist offers and their target groups, she highlights that “we are approached by couples, families and solo travelers who want a travel expert specializing in Japan to tailor-make their trip. We create day-by-day itineraries based on the
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traveler’s specific interests, as well as provide detailed descriptions of how to get to the different sites, of transport, schedules and other useful insider advice. On the other hand, the Deluxe Group Tour is led by a knowledgeable tour leader, ensuring both comfort and security, and highly favored by those seeking a refined and immersive experience.
A guarantee of quality
As already mentioned, Japanspecialist is backed by JTB Corporation, a company with over a century of experience. As to what this background and being part of JTB Group’s B2C business unit mean for Japanspecialist and its travelers, Karolina Simon emphasizes that the JTB name is known to everyone in Japan. “It is one of the most trusted and respected companies in the eyes of the Japanese. Japanspecialist has access to the extensive resources of the JTB Corporation, which also means complete financial security. The JTB name is a guarantee of quality.”
Steady double-digit growth
Karolina Simon is now the leader of not only the Hungarian, but also the European Japanspecialist team. Currently, this latter one covers and oversees nine markets: France, Italy, Spain, the Netherlands, Hungary, Denmark, Sweden, Norway and the DACH region.
“This means managing a team of around 60 people, as well as full ‘profit and loss’ (P&L) responsibility for the region. My main responsibilities are to maintain and accelerate business growth in existing and new markets and to optimize operations in the different countries. Over the past two years, we have achieved steady double-digit growth, and with new markets, we have set even more ambitious targets for 2025.”
World Expo not to be missed
The Expo 2025 Osaka, Kansai from April to October this year is another potential target for Japanspecialist clients. Karolina Simon points out that the Expo 2025 Osaka, Kansai presents a significant prospect and challenge for both the business and leisure sectors. “At Japanspecialist, we create comprehensive
travel packages for those interested in the exposition, including tickets and special package offers like a visit to the expo; individual tours that include the cultural and gastronomic specialties of Japan in addition to the world exhibition; as well as Hungarianspeaking and European expert guides who help travelers gain a deeper understanding of the experience. Through JTB's network, we have exclusive access to expo-related services to ensure a seamless and inspiring experience for our travelers in Osaka and throughout Japan.” Japanspecialist travelers are not visiting Japan exclusively for the expo, but rather because they are fascinated by the country's culture, natural beauty and unique experiences. However, as Expo 2025 is a unique event, the agency recommends that all their travelers visit that for at least one day.
She adds that “in terms of travelers, we are seeing increasing interest in Expo 2025 from European educational and research institutions, academic and student groups, in addition to business travelers and professional delegations. For them, we will create tailormade programs including the opportunity to explore Japan's cultural and scientific centers.”
Offering an authentic experience
Some people suggest that the world exposition might have negative impact on leisure tourism.
Karolina Simon’s reply to this notion is that “the expo is expected to lead to increased visitor numbers, which could result in higher prices
and limited capacity for accommodation and airline tickets. Popular attractions may be more crowded than usual, and authentic, private experiences may fill up sooner, requiring reservations much earlier. When planning our clients’ itinerary, we try to avoid the crowds and take them to the Japanese countryside where they can enjoy a more authentic experience. And if they are interested in iconic sights, we can help with optimal timing and the most convenient arrangements,” she concludes.
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“After the creative concept had been developed, Expo 2025 Hungary Ltd. launched an architectural competition for the design in spring 2023, to which we – as a design team experienced in the design of performing arts spaces – were invited. The jury, made up of renowned architects and tourism experts, chose the three best designs and invited the designers to a public procurement procedure, which we won,” the Design Director explains. In the opinion of the jury, the Zoboki studio design was the most complex in meeting the creative and technical requirements of the call for proposals, using spatial composition and aesthetic means that, despite the density of the program, resulted in a light, airy and transparent architectural appearance. “Once commissioned, a tendered idea is usually subject to many influences that transform it substantially. But in our case, the forest-field-haystack concept, which focuses on the event space of the immersive dome, was so strong that it stood the test of further design,” he adds.
A slice of Hungarian culture
The main theme of the 2025 World Expo in Osaka is designing the society of the future. As to how the Hungarian Pavilion fits into this, András Csiszér stresses that there are strong tectonic movements taking place in the world, in the light of which the question of how future societies will function and how people can consciously influence them positively in the present is a very relevant issue. As each culture goes its own way, they increasingly meet, interact and interconnect. “We are convinced that planning for the future is unthinkable without knowledge and respect for the past, and thus, the focus of the pavilion's theme is to present a slice of Hungarian culture in a way that it connects as many strands as possible with the culture of Japan that hosts the World Expo. By transmitting knowledge across generations, we aim to bridge the gap between past and present and to offer visitors an emotional and engaging experience. Through folk music and folk art, we have sought to create a multi-level link between Japan and Hungary as well as between the past and the present.”
Immersive dome
For the creative concept team, a key objective was to discover common values and roots in Hungarian and Japanese culture, which they found in the pentatonic-based melodies that are found in both peoples’ folk music, providing a unique sound. “Refining the direction together and assisting with various architectural tools, we created a space enclave that offers the opportunity to escape from the noisy and stimulating world of the World Expo. We have created a visionary route that offers the opportunity for a gradual quietening. At the focal point of this journey, we arrive at the performance space of the Immersive dome, an infinite, universal space, dreamed up by artistic director Bence Vági, with Hungarian folk song at its absolute center,” the Design Director highlights.
By exploring the optimum building options for the unusual elongated plot shapes designated for the pavilions, the designers discovered that there are commonalities between Japanese and Hungarian folk architecture in terms of both the settlement landscape and the building style. This side-framed building style, typical of
A SLICE OF HUNGARIAN CULTURE
HUNGARY’S EXPO PAVILION DESIGNED AS A VIRTUAL SPACE OF THE COUNTRY’S IMAGE
Zoboki Design & Architecture, one of the largest architectural studios in Hungary with decades of experience in Hungary and abroad, has been chosen to create the concept for the Hungarian Pavilion at this year's World Expo in Osaka. Their design director, András Csiszér tells Diplomacy&Trade how they were selected for this job and what ideas they came up with to “offer visitors an emotional and engaging experience.”
single-alley, comb-shaped plots, became the basis for their spatial concept, which allowed them to create an open and airy building. In this way, the composition creates unity between landscape and peasant culture.
Forest, field, haystack
In terms of both appearance and function, the pavilion is made up of three large units.
“Folk songs often start with images of nature, and we have built the architectural concept from three typical images of nature: the forest as the untouched and wild nature; the field, which is the lush and gentle landscape so typical of the Carpathian Basin; and the haystack, which is the symbol of the landscape still carefully cultivated by man,” András Csiszér points out.
The meadow is the base path that serves, in the form of an artificial hill, as the main visitor route; the forest is the foreground building, where the
gastronomic and communal functions are located, and the haystack is the Immersive dome that awaits visitors at the rear of the site. “It is a focal point that is not directly accessible from the outside: you have to walk the unknown path to discover what it hides,” he adds.
The main function of the pavilion is to provide exhibition and event spaces built into the visitor route. The performance nature of the event space allows visitors to enter the dome in groups at set times, and this pulsation affects the organization of the entire route. From the world expo promenade, visitors follow the path that winds through the meadow towards the pavilion and then enter the artificial hill at the bottom of the forest building. Here, they proceed through an information foyer and on to the exhibition space, where they get – through a multi-sensory preparatory 'exhibition experience space' prepared by the creative team lead by Dávid
Drozsnyik and László Ördögh – to the event space of the Immersive dome. After the immersive experience, visitors pass through the final exhibition, returning to the shop part of the lobby, through which they will exit to the field and either return to the hustle and bustle of the World Expo or continue their journey in the gastronomic and social spaces on the floor of the Forest building.
Curiosity leads the visitor
One of the objectives of the Hungarian participation is to encourage people attending the Expo to visit Hungary. As the Design Director explains, “the main aim of the exhibition and the pavilion is to offer visitors an emotional and multisensorial hands-on experience rather than the traditional information-gathering approach. Through folk music, we offer a glimpse into our culture and the Hungarian soul, pointing out the common features between the two peoples. We hope that this will create a level of experience, curiosity and attachment that will lead visitors to a deeper understanding of our people and culture, which includes visiting and exploring our country and the Carpathian Basin.”
As for the overall experience of the Zoboki Design & Architecture studio’s work on the Hungarian Pavilion, András Csiszér highlights that “for a creative team, it is always a thrill and a challenge to formulate a message that will give an image of their country to millions of people. As architects, our task in it is to accommodate this message, fine-tune it, turn it into a virtual space and then make it possible to build it in a country that is foreign to us. We enjoyed this process with the creative team and received tremendous help from our Japanese design partners, So Kikaku Sekkei, who have continuously supported us in understanding the local possibilities, customs and rules, and then produced the final plans based on our design.”
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TOYOTA – A CAR FOR EVERYONE
THE JAPANESE CARMAKER IS TO STRENGTHEN POSITION IN THE HUNGARIAN NEW CAR MARKET
For the third year in a row, Toyota has been the market leader in Hungary, which is no coincidence, as the brand offers choice for all levels of society. The Japanese car manufacturer says no matter whether you're looking for a small city car, a family hatchback or a futuristic five-door vehicle, Toyota has a range to suit every taste.
The range is outstanding not only in size and functionality, but also in powertrains. In addition to conventional petrol and diesel powertrains, Toyota is a pioneer in hybrid technology, offering the world's most advanced fifth-generation hybrid, plug-in hybrid and pure electric powertrains. This versatility allows every customer to find the ideal car for their lifestyle and environmental needs.
Opportunity, rather than compromise
The brand's mission is to make motoring an opportunity, not a compromise. The Yaris is for urban commuting, the RAV4 plug-in hybrid for longer journeys and the Proace range is for everyday commuting. Toyota offers a reliable, modern and sustainable alternative for every situation.
Toyota is a symbol of innovation and freedom of choice, sending a message to all customers that the brand is truly for everyone.
Mobility for All
Toyota aims to make its philosophy of ‘Happiness for All’ a reality through its ‘Mobility for All’ ambition. They want to achieve this by building a unique ecosystem of partnerships for a future society living in harmony with nature. In practice, this means applying and sharing its knowledge for the benefit of people, community and planet to build a better future.
Through its commitment to quality, continuous innovation and respect for our planet, they strive to exceed expectations and create happiness for all. By developing and manufacturing the widest range of innovative,
safe, sustainable and high-quality mobility products and services, the Japanese carmaker aims to provide universal, inclusive and accessible mobility solutions for all.
Strengthening market position in Hungary
As for Hungary, Toyota expects the new car market in this country to stagnate in 2025, but it is realistic to maintain its multi-year leadership by setting a new sales record and supporting this by repositioning the prices of its plug-in hybrid models, Toyota Central Europe Ltd., the company responsible for imports in Hungary, has recently said.
According to Country Manager Richárd László, the brand had a strong year in Hungary in 2024, with 18,123 new vehicles sold by dealerships, up 4.8% on the previous year. This gave the brand a 12.38% market share in the passenger car and light commercial vehicle segment.
Of these sales, 76.5% were hybrid, 17.1% petrol and 4.3 % diesel, while pure electric models (BEV) accounted for 0.5% and plug-in hybrids (PHEV) for 1.6%. The brand has a 14.12% share of the small car segment, making it the second best-selling brand. Last year, the 3,500 vehicles registered represented an increase of 13.7%.
The dealer network, which also sells certified used cars, sold 5,274 used Toyotas last year.
Richárd László expects the new car market to face a number of challenges in 2025. For example, supply is expected to shrink as a consequence of meeting European carbon emission targets, but potential manufacturer fines and a fall in carmaker profits will also push prices up.
The country manager made it clear that Toyota will not exit the small car segment, but will instead continue its transformation. He also pointed out that the weakening of European manufacturers and the rise of Chinese manufacturers are expected to continue, together with the emergence of new players in China. Toyota sees increasing the share of hybrid models as a way to meet emissions standards, aiming to increase the share of hybrids to 90% of sales in the next period, while the BEV-PHEV mix will expand to 7%. According to the importer, PHEV sales are being held back by the disappearance of the green license plate (and the corresponding benefits like free parking) for this category, to which the
company is responding by rethinking its PHEV strategy and repositioning prices.
Toyota to launch six new EV models in the next two years
László Kárpáti, brand director of Lexus, pointed out that the luxury brand of the Toyota group also grew last year in Hungary, with 1,493 vehicles sold, compared to 1,102 in 2023. In the premium segment, Lexus has a 6.7% share. 73% of sales were hybrid, 24% PHEV, 2% EV and 1% petrol. He reminded that the premium segment remains stable in Hungary, with forecast of 2-4% growth for this year. Toyota sales could also expand, reaching 1,700 units, supported by the opening of new dealerships during the year.
japanese focus
TRADITION, QUALITY AND DEDICATION
A CULTURAL BRIDGE BETWEEN JAPANESE GASTRONOMY AND HUNGARIAN CUSTOMERS
The Sushi Sei Restaurant celebrates its 10th anniversary this year in Budapest’s 3rd District, Óbuda where it opened its doors in March 2015. Offering authentic cuisine and a special atmosphere for lovers of Japanese gastronomy, this elegant restaurant combines traditi onal flavors with innovative technology to the delight of Hungarian diners and Asian communities alike. Owner Irma Héder tells Diplomacy&Tra de what is behind the success of her establishment.
“The secret of the restaurant's success lies in the harmonious balance of tradition, quality and dedication. The name Sushi Sei has been known since 2002 and has been an unbroken representation of the art of Japanese gastronomy and hospitality. The opening of the current location was a milestone, as both the culinary experience and the atmosphere of the restaurant were inspired by the Japanese spirit, taking the commitment to a new level,” she highlights.
She adds that Sushi Sei's dedicated team works day in and day out to ensure that dishes are prepared using the finest ingredients, following traditional recipes closely.
The interior is designed with Japanese aesthetic in mind: clean lines, the use of natural materials and an intimate atmosphere all contribute to a truly authentic and unforgettable gastronomic journey in the heart of Óbuda.
Complex gastronomic experience
One of the goals for the managers of Sushi Sei is to introduce Japanese gastronomy to the local public. As to how they manage to do this, the owner stresses that the mission of Sushi Sei goes beyond a simple restaurant service.
“We actually want to be a cultural bridge between Japanese gastronomy and our guests. Our mission goes beyond the mere preparation
of food, we aim to provide a complex gastronomic experience and a deeper understanding of Japanese culture. For this reason, we regularly organize events where our guests can learn more about Japanese food culture. This includes sake tastings, special menus for Japanese holidays and interactive lectures on different aspects of Japanese gastronomy and culture. Behind every plate is tradition, care and respect for Japanese culture. We constantly strive to improve and represent Japanese gastronomy at an even higher level. To this end, we regularly visit Japan with our colleagues to gain experience, learn and be inspired.”
And that is not all. She explains that they pay special attention to professional development and regularly participate in competitions and training courses organized in cooperation with the Japanese Ministry of Agriculture, Forestry and Fisheries. “These include the prestigious Washoku World Challenge and an exceptional opportunity for one of our colleagues to participate in a six-month training course. As part of this program, he was able to learn the art of Kaiseki, the pinnacle of Japanese gastronomy, at the legendary three Michelin-starred Kikunoi Honten restaurant in Kyoto and successfully completed his studies with a final exam,” Irma Héder concludes.
japanese focus
HUNGARIAN-JAPANESE CLUB AT THE OSAKA EXPO
MJGK SEES THE OPPORTUNITY TO HOST EXISTING AND POTENTIAL PARTNER IN THE HUNGARIAN PAVILION
The Hungarian-Japanese Economic Club (MJGK) was founded in 1971 to provide information, events and networking opportunities for companies and individuals interested in improving economic cooperation between Hungary and Japan. It comes as no surprise that this year, the Club’s activities are mainly related to the world exposition to be held in Osaka. Diplomacy&Trade talked to Club officials about MJGK’s preparation for –and participation at – the Expo 2025 Osaka, Kansai.
The Osaka world exposition has long been on the agenda of the Hungarian-Japanese Economic Club. A year ago, MJGK President Dr. László Urbán told Diplomacy&Trade that this matter required the most immediate and very intensive work in the preparation for the participation in that event: “We are trying to move all the stones that are not part of the official state tas ks. We are trying to encourage our club members, the Hungarian or mainly Hungarian-owned enterprises, to bring their products, whether intellectual or physical, to the Osaka World Expo. If they have products that we consider worthy of the world exposition, we can provide contacts and perhaps other support for the Hungarian entrepreneurs who would like to exhibit there.”
Bringing together interested partners
As to what this 'intensive work' have entailed since, Dr László Urbán now notes that “we discussed with Dr. Miklós Horváth, one
of the Vice Presidents of the MJGK, that the whole point is to bring together a good number of Hungarian and Japanese companies with a sufficient interest during the two days when our club will have the opportunity to host potential or even existing partners in the Hungarian Pavilion of the World Expo. In this respect, Dr. Horváth has just been in talks with the Confederation of Hungarian Employers and Industrialists (MGYOSZ), who are very interested in this opportunity, and they have already named six or eight partners, some of whom Miklós has met, who are 90% sure to go and represent the Hungarian side in the Hungarian Pavilion at those meetings. The hard part is locating and finding potentially interested Japanese partners and convincing them that this will be a successful event. Of course, our basic aim is to prove that we can, as a club, even if we don't broker business in concrete terms, bring together partners who might be interested.”
Dr. Urbán's predecessor, Sándor Kiss, who was at the helm of the organization for two decades, adds that there are thematic weeks at the Expo and the first of these thematic blocks is the people-to-people, business-to-business communication. “Organizers expect 22 million people, 18-19 million of them Japanese, to attend the Osaka World Expo. Those who visit the Hungarian Pavilion will leave with a lot of knowledge about the Hungarian economy and Hungary in general.”
Hope
for reigniting economic relations
As far as Hungarian-Japanese economic relations are concerned, Hungarian organizers expect the Hungarian Pavilion at the World Expo to play an important role. Dr. László Urbán has the impression that Japan has been somewhat overshadowed in Hungarian foreign policy in recent years. "I suppose that since the war in our neighborhood has received more attention in Japan's foreign policy, they have not really been concerned about developing these economic relations, and neither have we. I am convinced that if peace is achieved in the near future, it could be a momentum for both Japan and Hungary to perhaps start to pay more attention to each other."
In this respect, the recently announced very serious viral infection in animals (hoof-and-mouth disease), could be a considerable problem, as a significant part of exports to Japan is pork and meat products, which are difficult to compensate for in bilateral trade.
Foresting Architecture
Takenaka Europe GmbH Hungary branch, whose parent company, Takenaka Corporation is one of five major general contractors in Japan, is a member of the Hungarian-Japanese Economic Club. As László Tóth, the Head of the Promotion Department at the Hungary Branch – and also one of the Vice Presidents of MJGK – highlights, the company has carried out numerous construction works in the expo area.
“Takenaka Corporation provides the ’Seeds Paper Pavilion’, which it has been developing since 2021, as temporary structures that visitors can use to rest and relax during Expo 2025 Osaka, Kansai. This is ’Foresting Architecture’ for the Future Society Showcase Project (Green Expo). In this architecture of the future, the structure created by people becomes a seed that will grow into a forest when its use is finished, rather than one that will become waste at the end of its use. The Seeds Paper Pavilion consists of two buildings, each with a diameter of 4.65 m and a height of 2.95 m. The material used is CAFBLO, a biodegradable and transparent cellulose acetate resin produced by Daicel. The 3D printed material is used as the structural material, and the exterior is made of handmade Japanese paper and plants created at various events. It is the world's largest building made from 3D printed biodegradable resin.”
Although, the exposition only opens in mid-April, the pavilion, which is a fusion of state-of-theart technology and hand-crafted construction, has already received a distinction. Last October, Foresting Architecture was recognized by Guinness World Records as the “largest 3D-printed biodegradable building (monolithic).” Exterior and greening work to affix washi (Japanese paper) to the structure will be undertaken in the future. In addition to washi made by traditional craftsmen, washi “seed paper” made at a workshop with plant seeds in it was combined with washi made at a welfare facility.
Lectures at the Hungarian Pavilion
Sándor Kiss, as a former president of the Club, applied to be a keynote speaker at the World Expo. “In addition to the Hungarian National Archives and the Hungarian-Japanese Economic Club, I was invited to give a lecture by Yoshiyuki Shimizu, the head of the JapanHungarian Friendship Society in Japan, and the organizers also accepted my offer to give a lecture on the sculptor Nándor Wagner, who lived and worked in Japan. These lectures will take place in the Hungarian Pavilion in May.”
Assistance by the Embassy
There is, of course, close cooperation between the Hungarian-Japanese Economic Club and the Japanese Embassy in connection with the World Expo. As Sándor Kiss points out "the Japanese Ambassador herself is supporting the cause and has assigned two staff members to help us –mainly to bridge the communication gap with Japanese in Hungary who are generally reticent and difficult to reach and have not joined the Club as members.”
Opportunities for the Club
In conclusion, Dr. László Urbán highlights that the Hungarian Japan Economic Club has the opportunity to use one of the levels of the Hungarian Pavilion, the so-called B2B level, on May 7 and 8 to invite Hungarian and potential Japanese economic partners to join the Club, “because this is a place for the development of existing relationships and the establishment of new relationships and to establish contacts. Of course, we would also like to do a bit of advertising for ourselves as a club, so that we can lay an even better foundation for the future of this very traditional club, which has a long history and is still in operation.”
photo by TAMÁS VARGA
PICTURED
business
This February, the Canadian Chamber of Commerce in Hungary (CCCH) held a business breakfast focusing on the uncertainties surrounding the economic policies of the new Trump administration. CCCH President Nicholas Sarvari has summarized for Diplomacy&Trade how much coherence, if any, can be seen in this economic policy so far; how it may affect trade relations as far as the United States, Canada and even Hungary are concerned in a possibly more transactional world.
“Unfortunately, there isn’t much coherence in the sporadic rhetoric Trump speaks, but if you consider the economic concepts emerging in a broader global security context, a concerning global view is visible in the backdrop. Bearing in mind that the Presidency is not just one man, the Trump team is pursuing a policy where the liberal camp is somehow held responsible for the 2020 ‘stolen elections’ and are to blame for everything from global warming to international immigration and the Russian invasion of Ukraine or Chinese aggression. Weakness is what they blame and an America in the global arena that cannot dominate dialogue is considered weak by Trump. Economic policy is deeply ensconced in this view of the world and explains how power politics and a much more transactional approach to international relations is taking shape. It seems that in Trump’s world, there are no allies – only deals to made,” the CCCH President highlights. He is of the view that Trump’s words are mostly unpredictable and deliberately infuriating. His policies are to take advantage of weakness wherever possible and to manipulate the other side into a deal as he envisions it. “Canadians woke up to a very unexpected threat of tariffs. Talk of a trade war was topped by threatening Canadian sovereignty. The treat of tariffs alone sent the Canadian political scene into a frenzy and has since dominated the political agenda. Threats to sovereignty, threats of tariffs and the unpredictability have made the impending Canadian elections all about dealing with Trump. Disruption is the Trump agenda – to perhaps solidify a conservative win in Ottawa or to attain a negotiating position over a country he sees as weak? Perhaps, it’s intended to exacerbate issues with Canadian unity, it’s not clear as there doesn’t seem to be immediate sense to the rout. It does, however, seem to be backfiring looking at recent polling and the reaction of Canadians in general.”
Further disruption anticipated
One can already see that many of Trump’s campaign promises have not materialized – at least not in the time framework he promised –and many of these have been revoked either by the President himself or blocked by courts. As Nicholas Sarvari notes, campaign promises vs. building out Trump’s reality are two different
TRUST BREACHED
things. He now has control over both houses of Congress and favor in the Supreme Court (6-3).
“Realistically, more chaotic and unpredictable rhetoric is likely, but I anticipate further disruption wherever he can achieve it. He will force his agenda in Europe and lend support to conservative right-wing parties wherever he can – the recent German elections demonstrated a massive growth for the AfD, pushing this agenda further in Europe too. Even the recent European summit appears to be trying to achieve a deal that could be taken to Trump – and he will consider like an episode of The Apprentice. Where they fall short on delivering promises, Trump and his loyalists will blame it on ‘Biden’s inept legacy’ or the incomplete eradication of the deep state enemies. Democrat-sided political analysts are already predicting a very rough ride for the Republicans and see major obstacles already within a few short weeks – but I still don’t think this will sway the administration from carrying out the most aggressive changes between now and midterm elections. And I also think that whatever plays out internally, the fact remains that very serious lines have been crossed in
longstanding postwar relationships – this has set things in motion for economic and foreign policy shifts in other countries, including Europe, that may feel themselves alienated by a long-standing ally.”
Special treatment for Hungary unlikely
As for the possibility of all this affecting economic relations between the U.S. and Hungary or with Canada, the CCCH President points out that “Hungarian PM Orbán served a political purpose during the Trump campaign, but I am very doubtful that Hungary will receive any special treatment or favors in return. Hungary is an EU member and, as such, any economic policies that are applied to the EU will apply to Hungary too. But it’s also difficult to see how special favor would be granted to a country that has been so close to China over recent years as Hungary. Although there are many convergences in Trump’s and Orbán’s world view, Hungary also has little to offer the U.S right now. Orbán will continue to bombard the European liberals, but Hungary’s ever weaker economy and rising opposition will not make this an easy battle. Will
Trump push for a new double tax treaty with Hungary? – quite unlikely, but it is also difficult to imagine that this is high on anyone’s agenda in Washington.”
Trust breached
He adds that with Canada, the situation might be a little different. “The tariff threat breaches trust and political responses to the threat alone will have a broad impact in Canada. Even if Trump backs down, trust has been breached and Canada is likely to continue to focus on how to manage an unpredictable, more protectionist US trade policy moving forward. In the next two years for sure, but possibly for the entire duration of the Trump presidency, it is likely that Canada will focus on diversifying trade globally as well as preparing serious retaliatory measures that could soften the impact and possibly lessen the duration of a tariff regime. Canada’s dialogue with the U.S. must be from a position of strength to be taken seriously and I do think that Canada can find that position.”
Canada has also taken this situation as a signal that delaying the diversification of the economy cannot continue. Canada already has trade agreements with the EU and many other countries around the world. This will allow Canada the chance to focus its attention on increasing trade elsewhere. It might take a while, but at the end of the day, there are lots of options for Canada to reduce its dependency on the U.S. Necessity is something that wasn’t there before – so, businesses were more inclined to work with US partners because of the convenience of it (language, proximity, etc.). Now, pure economics is going to be the reason why businesses will turn elsewhere, he stresses. Trust has been breached and as the world now seems to be churning, trust may be breached with some of the longest standing allies the US has.
Caution and worry – Trumponomics is here Regarding the consensus on this topic by the participants of this CCCH business discussion, the President of the organization says it was one of caution and worry. “The fact is that the impact of Trump’s rhetoric in Canada is being felt in Mexico and Chile too – and will also be felt in the EU. If the tariff model is pushed forward, one consequence will be to seek alternatives to the U.S. market. Canadian trade with the European Union could significantly expand due to the Comprehensive Economic and Trade Agreement (CETA), which has been provisionally in effect since 2017. Although not yet fully ratified by all EU member states, the agreement has already led to a substantial increase in trade between Canada and the EU. The remaining countries yet to ratify CETA include Belgium, Bulgaria, Cyprus, France, Greece, Italy, Ireland, Poland, Slovenia, and Hungary. Given this context, those opposing CETA within the EU should reconsider their stance, as there are strong reasons to expedite ratification. Opposition has largely come from concerns that trade with Canada could lead to job losses or the decline of certain industries. However, evidence indicates that free trade generally delivers more benefits than drawbacks—especially considering recent economic shifts under “Trumponomics. Now is time for EU countries to advance CETA, allowing them to capitalize on the emerging opportunities that enhanced trade relations with Canada can provide.”
business
CAUTIOUS CORPORATE EXPECTATIONS FOR 2025
HUNGARIAN TOP MANAGERS OPTIMISTIC ABOUT GLOBAL ECONOMIC ACCELERATION
70% of Hungarian CEOs expect acceleration of the global economic growth; 60% of them made optimistic statements regarding the Hungarian economy but only 39% are confident about the growth of their companies. That is according to PwC’s 14th Hungarian CEO Survey in which the respondents predict a 1.8% GDP growth, a 415 HUF/EUR exchange rate and 4.8% inflation for 2025.
Globally, 58% of the CEOs expect an acceleration in the growth of the world economy and one-fifth expect a slowdown. Hungarian CEOs are way more optimistic: 70% of them are confident about a global acceleration and only one-tenth expect a slowdown. The proportion of Hungarian CEOs saying that global economic growth will accelerate has never been so high.
Revenue growth less likely
As in the previous year, 60% of the CEOs think that the growth of the Hungarian
economy will pick up in 2025. At the same time, 39% are very or extremely confident about their own revenue growth, which is the lowest proportion ever. “The change in confidence about improving economic growth has always signaled the direction GDP will change. The current results suggest that last year’s growth will accelerate. Hungarian CEOs are more confident than ever before that the global and Hungarian economy will grow and are less confident than ever before that their revenues will increase. The growth of some could easily present a problem for
many. The question is where trust and lack of trust comes from,” Szabolcs Mezei, Partner at PwC Hungary stressed. Asked about their expectations, CEOs anticipate an exchange rate of HUF 415 to the euro, 4.8% inflation, and 1.8% GDP growth for 2025.
External factors less worrisome CEOs expect the Russian-Ukrainian war to end in 2026, with the expected end date being delayed by another year every year. Their
prediction regarding the introduction of the euro as the currency in Hungary is also adjusted by a further year: 82% of respondents expect that the euro will be introduced in this country in 2034. Respondents expect a widespread use of autonomous vehicles and a transition to green energy by 2040.
Considering the external factors impacting companies, Hungarian CEOs are generally significantly less concerned compared to 2023 but are still more worried than their global counterparts. The top threat is the skills shortage: 44% of Hungarian CEOs are concerned about this, with the proportion of global CEOs concerned being “only” 23%.
Compared to last year, perceived exposure to geopolitical conflicts and macroeconomic volatility has hardly changed (36% and 38% perceive increased exposure); however, the proportion of those concerned about inflation is much lower than last year (51% last year, 39% this year). Meanwhile, the proportion of CEOs having high concerns about cyber risks is steadily increasing (38% this year, compared to 35% last year and 33% two years ago).
60% of Hungarian CEOs think that their organizations will be economically viable for more than ten years if they continue on their current course. Nevertheless, only 12% estimate that they will hold the CEO position for more than ten years.
NEW TEMPORARY EXHIBITION AT THE MONEY MUSEUM
On the 28th of January, a new temporary exhibition entitled “Postage Stamps and Banknotes - Hand in Hand” opened at the Money Museum in collaboration with the Stamp Museum. The most valuable stamps produced over nearly 200 years are on display. The exhibition can be visited free of charge and without making a prior appointment. Monday, Wednesday, and Friday: 8:00 - 17:00 | Tuesday: closed | Thursday: 8:00 - 19:00 Saturday, Sunday: 10:00 - 18:00 | 6 Krisztina krt, Budapest, H-1122 Hungary
THE CANDELABRAS OF THE CHAIN BRIDGE AND HUNGARIAN HANDICRAFT TRADITIONS
A PIECE OF HISTORY AT THE AIRPORT
One of Budapest's most recognizable symbols, the Chain Bridge is not only a defining feature of the city's skyline, but also a symbol of Hungarian history and engineering achievement. Two of the iconic candelabras replaced during the recent renovation of the bridge have been given a fitting place at Liszt Ferenc International Airport, where they commemorate the history of the capital in a space dedicated to Hungarian culture. But how does all this relate to Hungarian folk art and craft traditions?
The cityscape of Budapest is inseparable from its bridges over the Danube, which are not only architectural marvels but also witnesses of Hungarian history. The Chain Bridge, which has become a symbol of the city since its opening in 1849, is one of them. In its more than 170-year history, the bridge has undergone many changes, most recently undergoing a complete renovation between 2021 and 2023. This revealed that the bridge's iconic candelabras were in such a poor state of repair that they needed to be replaced. However, the original luminaires, dating from 1947, were not lost: they were auctioned off and two of them were professionally restored and given a new lease of life in a special location. They can now be found at the Hungarian capital’s Liszt Ferenc International Airport where the past meets the present.
Pieces of history and art
A gift shop dedicated to the presentation of Hungarian culture and folk art has created a worthy place for the historical candelabras, so that they can be a lasting experience for foreign visitors. Hungarian handicrafts and folk art are known worldwide and include crafts that span generations in different parts of the country. Embroidery, pottery, carved wood products and traditional textiles are all part of Hungarian culture. A souvenir is not only a souvenir, but also
THE CANDELABRA
a piece of history and art. The souvenir shop at the airport aims to bring this rich heritage closer to travelers, bridging the gap between past and present, while also showcasing the beauty of Hungarian craft traditions and the creations of modern Hungarian designers and fashion designers to travelers from all over the world.
Memories of Hungary at the airport
Keeping Hungarian history and craft traditions alive is not just a celebration of the
The four sides of the candelabra feature the so-called Kossuth Coat of Arms (referring to the name of the Hungarian statesman Lajos Kossuth) and the Hungarian Holy Crown. The candelabra was produced by the Ironworks and Machine Works NV (National Company).
THE CHAIN BRIDGE
Total length of the bridge: 375 meters
Maximum span: 203 meters
Bridge material: stone, iron
Construction start date: 1840
Date of inauguration: November 20, 1849
Architect: William Tierney Clark memoriesofhungary.hu/en
past, but a constantly evolving, modern initiative that connects old crafts with the experiences of today's travelers. The newly opened airport shop offers a special experience for those who want to return home with a piece of Hungary. The meeting of culture, heritage and modern shopping experience is what makes Memories of Hungary shops unique – a place that bridges past and present, local traditions and global interest.
witty leaks
L E A K S
IN THIS SERIES, DIPLOMATS SHARE PERSONAL ACCOUNTS OF THEIR EXPERIENCES ON “EXCURSIONS” into Hungarian culture, art, gastronomy & scenery.
A BUSY YEAR FOR THE AMBASSADOR
HIGHLIGHTS OF
RELATIONS OVER THE LAST 12 MONTHS
THE AMBASSADOR OF SWITZERLAND IN HUNGARY, JEAN-FRANÇOIS PAROZ
One of the main reasons why I wished to be appointed for a second term as Ambassador of Switzerland to Hungary and why I enjoy my second term so much is certainly the fact that as a Swiss Ambassador to Hungary – and as ambassador of any country in Hungary, I am quite sure – you have no risk of becoming bored, ever. Indeed, looking back on the last 12 months, I contemplate very significant and sometimes totally unexpected developments, both in Hungarian politics and in the bilateral relations between Switzerland and Hungary.
Politicians rising, falling As far as political developments are concerned, it is with sadness that I have learned one year ago of the resignation of President Katalin Novák. Back in 2014, she had been a Vice President of the newly created ‘Groupe des Amis de la Francophonie’ in Budapest, in which I was also active as a Vice President. She had honored the Swiss Embassy as she had joined with her three children the ‘Swiss Golf Day’ in 2013. At the beginning of my second mission in 2020, she had welcomed me in a very friendly manner when I paid a courtesy call to her in her capacity as Family Minister. It was also a great honor for me to be invited in December 2023 to join a round table she had organized as President of Hungary to discuss the support for the Hungarian institutions devoted to the promotion of the French language and multilingualism in the country. I felt privileged to witness her ascension and saddened by her abrupt resignation. Indirectly related to this development, the unexpected rise of a new political party and a new opposition leader, Péter Magyar, also contributed to the need to review certain believes I held to be solid, such as the inability of opposition figures in Hungary to mobilize media attention.
Swiss visits to Hungary
Swiss developments all over Hungary
A new perspective has been provided in the successful relations between Switzerland and the EU, with beneficial effects for the bilateral relations between Switzerland and Hungary. A priority of Switzerland’s strategy for communication abroad is to show how Switzerland is a trustful partner, building on innovation in order to contribute to prosperity and social and economic cohesion in Europe.
the beneficiaries of our projects at grassroot level and to verify that we have a real impact on the ground.
Swiss Days in Kecskemét
In view of these positive developments, it is a pity that in spite of several interventions at the highest level, the unjustified taxes against Swiss cement producer Holcim have not been lifted yet, resulting in a lose-lose situation, as significant investments projects are being kept on hold. Having four more months until the end of my mission in Hungary, I remain confident that a solution can be found until then. BY
With the launching of a new phase of negotiations between Switzerland and the European Union in March
2024 and the exercise by Hungary of the presidency of the Council of the EU in the second semester of the year, an intense high-level political consultation process between our two countries unfolded, and I had the honor of joining the President of the Swiss Confederation Viola Amherd and her delegation on the occasion of her two visits to Hungary in 2024: in June, when she met with President Sulyok, Prime Minister Orbán and speaker Kövér and in November, when she attended the Summit of the European Political Community, where she was welcomed by Prime Minister Orbán. It might have been the first time in the history of our bilateral relations that a Swiss President visited Hungary twice in the same year. The Vice President of the
Swiss Confederation (now President for 2025) and Federal Councilor in charge of finances Karin Keller-Sutter and the Federal Councilor in charge of Foreign Affairs Ignazio Cassis also visited Budapest to seek the support of the Hungarian Government in the ongoing negotiations with Brussels. Such support was promised and was also effectively granted, as my colleagues in Brussels were able to report. It is under the auspices of the Hungarian presidency that the negotiations between Switzerland and the EU found their successful material completion, pending the sovereign decision of the Swiss people to accept the outcome of these best efforts of both partners who managed to overcome many difficulties.
In the last 12 months, I had many opportunities to emphasize this, on the occasion of the announcement of new Swiss investments or of positive developments in the Swiss Hungarian Cooperation Program under the Second Swiss Contribution. On December18, I was invited to the Ministry of Foreign Affairs and Trade for the announcement by Minister Szijjártó of the expansion of the production facilities of Swiss Company Feintool in Tokod. On January 17, I joined Minister Szijjártó and Stadler Rail CEO Peter Spuhler as they unveiled the first double-deck railway coach produced in the factory in Szolnok, where Stadler Rail plans to increase its production capacities by 20%. Significant milestones were achieved in the implementation of the Second Swiss Contribution, and gave me the opportunity to join the stakeholders on several occasions: on November 8, for the opening event of the ‘Geothermal Energy Resources for District Heating’ program in Tiszaújváros, on November 26 in Vác for the opening event of the ‘Vocational Education and Training Hungary’ program, on December 4 in Budapest for the Support Measure Agreement on the project entitled ‘Improving life-saving skills’ with the National Ambulance Service, and on January 9, for the opening event ‘Utilization of Geothermal Energy’ in Bogács. Such events are precious occasions to interact with
A highlight in the illustration of the fruitful partnership between Switzerland and Hungary was constituted by the Swiss Days in Kecskemét and Helvécia in September 2024. The launch of the Swiss Days on the occasion of the opening of the new academic year, the holding of the Swiss-Hungarian Business Forum together with Swisscham Hungary and the organization of the Swiss Picnic at Neumann János University in Kecskemét allowed the Embassy and our partners to reach a large public in a city with a strong Swiss economic presence embodied by companies such as Fornetti, Phoenix Mecano, CabTec, Köppel Manufacturing as well as Hilti from Liechtenstein, which were all kind sponsors for our events. As part of the kick-off of the Swiss Days, I attended the harvest festivities of Helvécia on September 6, where we celebrated 25 years of partnership with the Swiss village Sirnach. The village of Helvécia and the story of its founder, Swiss teacher and winemaker Heinrich Eduard Weber, who came to Hungary from Switzerland seeking a better future in the 19th century illustrate the long and balanced relations between the two countries and their people. It embodies Europe as a community of destiny!
An issue to be resolved
culture
MUSIC BELONGS TO EVERYONE
ITALIAN ARTIST SAYS COMPOSING IS A STEP FURTHER IN ARTISTIC EXPRESSION
Ludovico Einaudi, one of the world's most acclaimed contemporary composers and pianists, will perform in Budapest this May. The concert will feature some of the most successful compositions from Einaudi's oeuvre, as well as songs from his new album ‘The Summer Portraits’. Einaudi's music is timeless and compelling, recognized worldwide for its profound emotional impact and refined beauty. His work is a unique blend of film scores, classical works and avant-garde compositions that have captivated millions of people over the decades. The Italian composer has made a name for himself in movies such as ‘The Father’ and ‘Nomadland’, both of which won Oscars and BAFTAs, and the French film ‘The Intouchables’, in which his music plays a key role.
Telling Diplomacy&Trade about his family background to which he owes his affinity for music, he highlights that he grew up in a home where culture and creativity were always present. “My mother played the piano, and through her playing, I absorbed the works of classical masters like Chopin, Bach and Schumann. But she also played many records –classical pieces, popular music and Italian operas. I was exposed to a wide range of sounds, from French chansons by Jacques Brel to the Beatles and the Rolling Stones. Music was always there, shaping my early years.”
Music to express emotions
Many people love music and even had musicloving family background but only a few become musicians – let alone composers. As to what led Ludovico Einaudi to pursue these professions and do it so successfully, he points out that “I was never drawn to anything else in the same way. Perhaps photography could have been an alternative, but music became the most natural way for me to engage with and express my emotions. Without it, my life would have been much greyer. Music gave me the colors of life.”
He adds that her mother was very happy that he had chosen this path – her father was also a musician, a conductor and a composer. “Composing is a step further in artistic expression; it is beautiful because it allows you to draw invisible architectures made of air.”
Rooted in the world of the soul
Ludovico Einaudi has always said it is impossible to define his music with a single word. However, when asked about the most defining characteristics of that music, he
underlines that “it is not easy to describe something so abstract, but my music is rooted in the world of the soul. My influences are broad, spanning from classical to contemporary pop. Over time, I have developed my own
language, with musical forms that are closer to popular music, yet driven by melodies that emerge from slow, recurring harmonic progressions. These progressions sustain the structure of my compositions, like the foundations of an invisible architecture. My music has something in common with Baroque music, especially in its harmonic progressions and repetitions, but it is expressed through a contemporary lens. Above all, it creates space for reflection.”
Balancing between image and sound
His career as a soundtrack composer spans over three decades. As to what makes this area special and how much creative independence he has when composing for feature films, short films or TV series as well as how he collaborates with directors, producers and editors, Ludovico Einaudi states that composing for films is a form of collaboration. “Music helps shape and define emotions through a language that adds depth to the storytelling. As with any collaboration, sometimes the result is truly beautiful and inspiring, while other times it works without necessarily igniting that creative spark. It all depends on the synergy between the director, editor, and composer. When I composed the score for ‘The Intouchables’, for example, there was space to create that emotional spark –a perfect balance between image and sound that allowed the music to elevate the story.
A musical journey
This May, the Italian artist will perform in the Hungarian capital in his first Arena show created by promoter Roland Horvath after many years in Budapest. Speaking about what kind of performance concert-goers can expect here, the artist stresses that “I am really looking forward to this concert in Budapest, as it will take the audience on a journey through my recent repertoire. At the heart of the performance will be my latest album, ‘The Summer Portraits’, alongside a carefully selected collection of my most beloved compositions from the past. With twelve musicians on stage, we will bring rich, lush string textures that I hope will envelop the audience like a dream.”
A collection of personal memories ‘The Summer Portraits’ is an album that turns personal experiences into universal messages.
As regards these experiences and messages, Ludovico Einaudi notes that this album is a collection of memories – fragments of childhood summers, friendships, gatherings, light, water, scents, echoes of time and nature. “These are moments that linger even as they fade.
Although deeply personal, the music is open – like a canvas where each listener can find and connect with their own colors, their own memories. Music has a unique ability: it can transform something intimate into something universal, something that belongs to everyone.”
KAT VON D TO PERFORM IN BUDAPEST
JUNE 11, 2025, A38 SHIP, BUDAPEST
This June, the tattoo artist and musician Kat Von D will perform on a ship on the River Danube, accompanied by her husband's band PRAYERS on their European tour.
Kat Von D's music has a distinctive disco goth sound that sets it apart from any other production, and is heavily influenced by synthwave, new wave, post-punk and other iconic electronic sounds of the 1980s. This diverse musicality is reinforced by lyrics born out of experiences of love, darkness and vulnerability, giving his music a charm that is both ethereal and romantically eerie.
Fans are drawn to Kat's unforgettable and evolving musical world not only because of her earlier fame, but also because of her captivating live performance style, reminiscent of theater. Kat Von D has built a dedicated fanbase not only through her music, but also through her creative artistry and unique visual storytelling, making each of her concerts a unique and intimate experience.
The blend of music, atmosphere and emotions at the concert will ensure an unforgettable evening, something you can expect to see at the bowels of A38 Ship in the Hungarian capital. Not only her, but PRAYERS will also perform that night, the world's first cholo goth band founded by her husband. livenation.hu
FESTIVAL OPENING EXHIBITION BY PETER LINDBERGH
MARCH 29 – JUNE 22, 2025, KUNSTHALLE, BUDAPEST
In 2025, the Budapest Photo Festival will open with the exhibition of the legendary German fashion photographer Peter Lindbergh (1944-2019) in Műcsarnok, the Kunsthalle of the Hungarian capital Peter Lindbergh has been one of the most talked-about exponents of fashion photography since the 1980s: a pioneer in photography, he used minimalist means to capture timeless character and redefined the concept of beauty with his unique vision. The unposed naturalness of her portraits, her unconventional vision in the world of advertising and fashion, contrasted with the strictly constructed style of the era, and bucked the contemporary trends in fashion photography. He gained international recognition with his 1988 shoot for American Vogue, in which six models dressed in simple white shirts appear as a group of friends on the beach.
Another epoch-making image in the history of fashion photography is the cover shot of the January 1990 issue of British Vogue, which featured Naomi Campbell, Cindy Crawford, Linda Evangelista, Tatjana Patitz and Christy Turlington together for the first time. This image could be seen as the opening of the supermodel era, with models creating an aura around themselves. In addition to the primacy of personality, the representation of the female archetype, the dancer, the femme fatale, the heroine, i.e. role-playing, is as much an essential element of Lindbergh's black and white images as spontaneity and dynamism. mucsarnok.hu
PALOZNAK JAZZ PIKNIK
JULY 31 – AUGUST 02, 2025, PALOZNAK
Lukas Graham on the Main Stage: the Paloznak Jazz Picnic is set for a big year in 2025, a festival that has outdone itself year after year in terms of quality gastronomy, performers and popularity. True, in the spirit of secrecy, only four names have been aired by the organizers so far, but these performers already show the Picnic's stylistic diversity. Representing pop and soul, Lukas Graham has been a hit with music lovers from the youngest generation to the older generation, and their concerts are characterized by an energetic presence and intimate musical storytelling that will create a unique atmosphere on Friday. Among the crowd favorites, the legendary Earth, Wind & Fire Experience by Al McKay have proven their worth at the Piknik several times and will again be enchanting Piknikers with their classic American, funky, R'n'B vibe. Austrian band Deladap had one of the most memorable performances at the 2021 Jazz Picnic, and their high heat electro-swing sound is sure to be there next year. Italian soul and R'n'B superstar Mario Biondi is also part of the Jazzpiknik Paloznak magic as a multiple returning star. jazzpiknik.hu
QUEENS OF THE STONE AGE BACK TO BUDAPEST
JULY 19, 2025, BUDAPEST PARK
Joshua Homme and his band will return to the Hungarian capital with ‘The End Is Nero Tour Europe 2025’, following their 2018 show at Budapest Park, presented by Live Nation. Queens of the Stone Age (QOTSA )was founded in the 1990s by Joshua Homme in Palm Desert, California. Queens of The Stone Age is a prime example of what happens when a multi-dimensional musical entity outgrows the genre it has created. QOTSA are too prolific, ambitious and brilliant to be confined by categorization: over the course of eight albums, unrivalled in their own right, they have become a giant, with hits such as No One Knows, Little Sister, My God is the Sun and Emotion Sickness. Their latest album, In Times New Roman..., was released in 2023. Undeniably rock – yes, always, but with the blood, sweat and dark magical swagger only Homme and his cohorts can conjure.
It's also the reason why Joshua Homme, Troy Van Leeuwan, Michael Shuman, Dean Fertita and Jon Theodore are regularly named among the best live bands in existence. What started out as a desert party has now evolved into a multi-sensory show that will set stages across Europe and America ablaze in the coming months. livenation.hu
