Diplomacy & Trade 2016 July

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A Shakespearian plot could not hold more intrigue! The British people have voted to leave the European Union but the leaders of the 'Brexit' campaign are just as uncertain about how to move on after this outcome as were the 33 million voters.

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“The good cooperation in many fields between France and Hungary within the European Union makes the political dialogue extremely interesting as we usually share the same positions on several issues,” the Ambassador of the Republic of France to Hungary, Éric Fournier tells Diplomacy & Trade. He also talks about the extensive presence of French investments here and how more transparency and predictability in the regulatory environment could attract more foreign investments to this country. see articles on pages 8-15

Our Life is our Culture India's Minister of State for Culture, Tourism and Civil Aviation, Dr. Mahesh Sharma visited Hungary on the occasion of the Ganges-Danube Cultural Festival and the International Day of Yoga.

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letter from the publisher

­­ contents 22 WITTY LEAKS

8-15 FRENCH FOCUS

Interview with Ambassador Fournier The Hungarian view, CCIFH, ESSCA , French gastronomy and wines Institute Français

16-17 BUSINESS

National Bank foundations Brexit: how it may influence the Hungarian economy

AND DON’T FORGET

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Business delegation, Minister of State for Culture, Tourism and Civil Aviation Ganges-Danube Festival

From Aventicum to Aquincum (a piece by Jean-François Paroz, Ambassador of Switzerland)

23 CULTURE

Interview with Teodóra Bán on Budapest Summer Festival 2016

24-25 WHAT'S ON

Concerts, festivals, events, exhibitions in and out of Budapest

26 GASTRONOMY

Baobox opens on the Buda side of the town

27 HOSPITALITY Grandhotel Lienz

PUBLISHER: Peter Freed, EDITOR: Sándor Laczkó COPY EDITOR: Joyce Freed PHOTO EDITOR: Dávid Harangozó SALES & MARKETING DIRECTOR: Tamás Varga, DISTRIBUTION MANAGER: Tibor Ocsenás ADMINISTRATION: Judit Ludányi, ASSISTANT: Ágnes Rapaport CONTRIBUTORS: Sándor Laczkó, Tamás Magyarics, Ákos Bod Péter, Réka A. Francisck, Annamária Riedl, Alexandra Ruff, Jean-François Paroz

SWISS FOCUS - COMING SOON

PHOTO CONTRIBUTORS SHUTTERSTOCK.COM, 123RF.COM, SWITZERLAND TOURISM/JAN GEERK, BRITISH EMBASSY BUDAPEST, ZSOLT BURGER/MFAT, ATTILA NÉMETH/U.S. EMBASSY, BUDAPEST AIRPORT, BARBARA KINNEY/HILLARY FOR AMERICA, GAGE SKIDMORE, FABIEN TIJOU, ESSCA, LÁSZLÓ BALKÁNYI, ÁKOS SZÉNÁSI, BALÁZS FARKAS-MOHI, MÁRTON SZITA, EMBASSY OF INDIA, BÉATRICE DEVÈNES, SWITZERLAND TOURISM/ CHRISTOF SONDEREGGER, GRANDHOTEL LIENZ, OSTTIROL WERBUNG, ÁDÁM URBÁN, BERCI GEBERLE/ WWW.SZABADTER.HU, ÁKOS STILLER, FOTO STUDIO COLOMBO/PIRELLI MEDIA, ENIKŐ VÁRAI, BALÁZS GLÓDI, JÁNOS KALMÁR, VINCENT SOYEZ, ANDRZEJ LIGUZ/MOREIMAGES.NET, TÓTH GÁBOR GYULA/HEAVENMANPHOTOGRAPHY 2014, MTI PHOTOS: ZOLTÁN MÁTHÉ, TAMÁS KOVÁCS, SZILÁRD KOSZTICSÁK, JÁNOS VAJDA, CSABA KRIZSÁN

Diplomacy & Trade is preparing a special Focus section on Switzerland, exploring the relationship between the Alpine country and Hungary. It will feature an interview with the departing Ambassador of the Swiss Confederation, Jean-François Paroz and a detailed summary of the Grand Tour of Switzerland in Hungary programs. Despite not being an EU member, Switzerland is an important partner for Hungary. With approximately 300 companies that provide jobs to almost 39,000 people, Switzerland has traditionally been among the top 10 investor countries in Hungary. We will introduce the most important Swiss ventures in Hungary as well as Swisscham Hungary and our usual table Facts Compared.

Copyright 2004-2015 Duax Kft., all rights reserved | ISSN 1589-8075 This magazine is produced by Duax Kft. The opinions published in the magazine do not necessarily reflect the opinions of Duax Kft. COPIES ARE AVAILABLE AT SELECTED RELAY AND INMEDIO OUTLETS IN MAJOR HUNGARIAN CITIES.

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A historic election...

Clinton and Trump to battle it out

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DÁVID HARANGOZÓ, SWITZERLAND TOURISM/ CHRISTOF SONDEREGGER, GRANDHOTEL LIENZ, SWITZERLAND TOURISM/JAN GEERK

Peter Freed

5-star experience at Grandhotel Lienz

Avenches (Aventicum) in WittyLeaks

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Every summer, Hollywood produces several blockbusters, but this year's “Brexit” starring David Cameron and Boris Johnson has broken all the box office records! The Shakespearean plot couldn’t have happened in a more realistic setting.

The United Kingdom has been a member of the “European Club” for 43 years. The decision, by a narrow margin, of its citizens to leave the European Union has brought about a lot of uncertainties. Much of the world went to bed while the votes were being counted only to wake up to the most unexpected result. The reaction was immediate; upheaval in the financial markets, collapse of both the Tory and Labor party’s leadership as well as angry condemnation from EU leaders in Brussels. It’s not only Britain and the EU but also in Hungary, whose economy is quite vulnerable to international developments, warning flags have been raised. As you can read in an analysis by a former governor of the National Bank of Hungary, “the secondary consequences of the chain of events triggered by the British referendum may turn out to be serious for Hungary.” In an exclusive interview with Diplomacy & Trade, the British Ambassador expresses the view that “we would very much hope to seek the closest possible relationship in terms of trade, cooperation and security” with Hungary and other remaining members of the EU. The country in focus in the July issue of Diplomacy & Trade is a steadfast member of the European Union, France, the fourth largest investor in Hungary. More than 350 French companies listed in Hungary employ over 43,000 people providing an annual turnover of almost EUR 9 billion (while the Hungarian GDP is around EUR 100 billion).

You can also learn from the interview with French Ambassador Éric Fournier that the cooperation between France and Hungary “in various technical areas within the European Union makes the political dialogue extremely interesting as we are usually supporting the same positions on several issues, like agriculture.” The Hungarian Minister of State in Charge of Francophone affairs, Levente Magyar talks to Diplomacy & Trade about “a very rich bilateral relationship with France.” We present the activities of the 25-year-old French-Hungarian Chamber of Commerce and Industry, tell you how the French Institute in Budapest promotes French culture in this country, and we also present a gem of French gastronomy in Budapest.

Also in this issue, we have an interview with the Indian State Minister for Culture who was in Hungary for the Ganges-Danube festival, our international analysis is on the chances of the two presumptive U. S. presidential candidates ahead of the November elections, while our Witty Leaks is authored this month by the Swiss ambassador.

The heat is on, enjoy Hungary’s outdoors, festivals, terraces and the Balaton!

The National Bank foundations turn towards real estate business page 16

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on the record

NOT TURNING ITS BACK ON EUROPE

INTERVIEW WITH BRITISH AMBASSADOR IAIN LINDSAY On June 23, the citizens of the United Kingdom voted – in a nonbinding referendum – with a relatively close outcome (52% to 48%) to leave the European Union. Diplomacy & Trade talked briefly to the British Ambassador about possible steps forward.

VISEGRÁD GROUP, GERMANY AND FRANCE FOREIGN MINISTERS MEET IN PRAGUE Foreign ministers of the Visegrád Group (V4) countries, Germany and France met in the Czech capital, Prague on June 27 for talks on the present and future of the European Union following the UK vote to leave the EU. First, German Foreign Minister Frank-Walter Steinmeier briefed his colleagues on the consultations he had in Berlin with the foreign ministers of the six EU founding states. The discussion also covered a proposed GermanFrench document on the EU’s future.

“We are willing to create suitable conditions for all member states to implement policies approved by our societies. We are also willing to continue to sustain this citizen support,” Czech Foreign Minister Lubomir Zaoralek said after the meeting.

Poland’s Witold Waszczykowski noted the need for talks among the 27 EU member states. “We need a discussion involving the broadest possible community of member states, on the EU’s present situation, in the wake of last week’s referendum in the UK,” he stressed.

Hungary’s Péter Szijjártó pointed out that “European politics cannot be conducted in a way that disregards the opinion of the people of Europe”, and that “Europeans want to decide for themselves about their lives and futures.”The consultations were held in Prague owing to the Czech Republic’s presidency of the V4 in the first half of 2016. As of July 1, the presidency of the Visegrad Group was taken over by Poland.

DÁVID HARANGOZÓ, SWITZERLAND TOURISM/ CHRISTOF SONDEREGGER, GRANDHOTEL LIENZ, SWITZERLAND TOURISM/JAN GEERK

BRITISH EMBASSY BUDAPEST, ZSOLT BURGER/MFAT, ATTILA NÉMETH/U.S. EMBASSY

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AMERICAN BUSINESS DELEGATION VISITS BUDAPEST

IAIN LINDSAY: The British people have voted to leave the European Union. That decision must be accepted. It is going to be difficult, but the process of implementing the decision in the best possible way must now begin. The PM believes that Britain is stronger, safer and better off inside the EU but he recognizes that the British people have decided to take a different path, which requires new leadership. David Cameron will continue as Prime Minister until a new Prime Minister is appointed by the start of the Conservative Party Conference taking place in early October. David Cameron had also made clear that it will be the new Prime Minister and government who will formally start the process of the UK leaving the EU by invoking article 50 of the Lisbon treaty. This will be followed by a two-year period of negotiations with the European Union.

As we proceed with implementing this decision and facing challenges that it will bring, we will hold fast to a vision of Britain that wants to be respected abroad, tolerant at home, engaged in the world and working with our international partners to advance the prosperity and security of our nation for generations to come.

DIPLOMACY&TRADE: How do you think this vote will influence British-Hungarian relations?

IAIN LINDSAY: Although, we are leaving the EU we are not turning our backs on Europe.

The remaining countries of the EU, including Hungary, are our neighbors, our friends, our allies, our partners and we would very much hope to seek the closest possible relationship in terms of trade, cooperation and security.

We have a strong bilateral relationship between the United Kingdom and Hungary. The relationship changes but I don’t think the fundamental aspect of the relationship will change. We will not be w w w . d t e u r o p e . c o m

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EU partners but on a whole range of issues we will still need to have an economic and political relationship with Hungary. We will continue to have British companies operating in Hungary and Hungarian companies operating in the UK. We won’t stop doing business with one another. We will certainly have throughout this whole process a strong defense and security relationship with Hungary. Britain is still a member of the UN Security council, the second largest contributor to NATO, still one of the largest economies, a member of the G7, G20 and the Commonwealth.

DIPLOMACY&TRADE: A day after the ‘Brexit’ vote, the Hungarian news agency MTI published a photo with the British and the EU flag flying on the façade of the British Embassy in Budapest. How much does this referendum influence/change your work as Ambassador and that of the Embassy staff?

IAIN LINDSAY: Until the formal process – article 50 is invoked – of leaving the EU starts, we are still a full member of the European Union with all rights and obligations. And we will continue to engage with it and contribute to it. So, nothing changes overnight. I also want to reassure Hungarian nationals living in the UK that there will be no immediate changes in their circumstances.

They are entitled to work, visit and live in the UK today as they were before the referendum and the same is true for UK nationals in Hungary.

My team at the Embassy and I will remain engaged with the Hungarian government, we will protect our people, promote our prosperity and project our values. We will represent UK interests in Hungary and will assist to seek the best possible deal for the UK with our European partners, including Hungary.

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The US-Hungary Business Council (USHBC) brought a delegation of eight American companies to Hungary’s capital for a series of meetings with senior government officials in June. During the mission, participants had the chance to promote and discover opportunities to increase commercial cooperation with the Hungarian government and private sector. The companies participating on the delegation were Bell Helicopter Textron, BorgWarner, the Coca-Cola Company, Guardian Industries, Hungrana, Lilly, MetLife, and Owens-Illinois. The US-Hungary Business Council (USHBC), established in February this year, is a one-stop platform for dialogue between American corporate executives and the top government leaders responsible for the U.S.-Hungary bilateral relationship. USHBC works to enhance U.S.-Hungary trade and investment and advance the commercial relationship. The mission’s aim was to help U.S. companies develop and maintain strategic alliances with key interlocutors in the Hungarian government and U.S. Embassy Budapest. During its Inaugural Business Mission, the USHBC delegation had a series of roundtable discussions with senior Hungarian leaders, including Prime Minister Viktor Orbán, Minister of Foreign Affairs and Trade Péter Szijjártó and Minister of National Economy Mihály Varga. Péter Szijjártó called Hungarian-American economic cooperation a true success story and highlighted the fact that the United States has become the largest investor in Hungary outside the European Union. “The total value of investment from the United States exceeds USD 9 billion; the 1,600 American companies currently operating in Hungary provide jobs for some 100 thousand Hungarians”, he said. USHBC Chairman Eric Stewart was of the view that Hungary has been an excellent partner to the United States both strategically and militarily, and the fact that the country has cooperated with American companies so far is also appreciated.

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­company briefs HUF 1.2 BILLION SICTA EXPANSION IN BORSOD

VALEO AUTO-ELECTRIC INVESTMENT IN VESZPRÉM

The European Investment Bank (EIB) Group inaugurated its office in Budapest this June. The ceremony was attended by Prime Minister Viktor Orbán, Economy Minister Mihály Varga, Hungarian EU Commissioner Tibor Navracsics, and representatives of the Hungarian business community and public sector.

The EIB Group Office is headed by Mr Alain Nadeau. At the same time the EU bank has signed a loan of HUF 15.1 billion (some EUR 48 million) to finance the construction, expansion, modernization and refurbishment of public education, pre-school and sports facilities in Hungary. "The EIB Group Office in Budapest will support EIB Group activities in Hungary, where the EU bank already has a very fruitful record of cooperation, with a well-diversified lending commitment totaling EUR 19.3 billion since the start of the EIB’s activities in the country in 1990," EIB President Werner Hoyer said. "The new representation will enable the EIB to be closer to its Hungarian counterparts and stakeholders, to increase even further our delivery capacity on the lending side and to strengthen our technical and financial advisory offer," he added. The inauguration of the EIB Group Office for Hungary is in line with the EIB policy of increasing its presence in EU member states.

A physical presence in EU capitals will enable market proximity and closer institutional dialogue with the national authorities, thereby helping to enhance project identification and the appraisal of new operations, the bank said in a statement. EIB currently has offices in 20 EU member states and 19 countries outside the EU CityTaxi_Hirdetes.ai 1 2015.01.20. 8:26:22 promoting business and policy dialogue.

AUDI BUILDS NEW BODY FACTORY IN GYŐR

The construction of an 80,000-square-meter car body factory for Audi Hungária Motor Ltd. has begun with deep foundation works in Győr, NW Hungary. The construction of the steel structure is scheduled to begin in August and by the end of the year, the building will have its roof installed. The increasing of the capacity of the existing body factory (which is currently of 75,000 square meters) is necessary to enable Audi’s Hungarian plant to take over – in 2018 – from Martorell, Spain the serial production of the Q3 model.

In June, Hungary’s Minister for National Economy, Mihály Varga received Audi Hungária’s Chairman of the Board, Peter Kössler.

“Audi Hungária remains one of the government’s most important strategic partners”, the Minister said. A HUF 11.6 billion (EUR 36.5 mn) new logistics center was established at the plant last year and the company’s management is planning to launch the production of a new model in 2019.

At the meeting, the parties discussed the Győr-based company’s long-term development projects. According to Minister Varga, “the company, which was founded in 1993, is one of Hungary’s most important automotive industry enterprises, manufacturing some 2 million engines a year, providing jobs for 12,000 thousand people and purchasing EUR 1.5 billion in parts, other products and services every year from almost 100 Hungarian suppliers.”

HUF 50 BILLION DEVELOPMENT AT BUDAPEST AIRPORT Budapest Airport Co. Ltd. will make a HUF 50 bn investment over the next five years under its BUD 2020 program, the weekly HVG is quoted by the financial website portfolio. hu. One of the key features of the program will be the new passenger pier B, but developments will include construction of an airport hotel as well as a series of logistics and security-related investments that will all begin shortly.

Budapest Airport, the operator of Budapest's Liszt Ferenc International Airport, said in a statement that the program was necessary as passenger numbers have been rising dynamically over the past two or three years, with traffic growing 12.5% in January-May this year. Construction of the new passenger pier will begin late this year and will take 18 months to complete.

The other pillar of the development project is an airport hotel, without which an airport cannot belong to the global elite, the company statement said. Current forecasts put passenger numbers in 2020 at between 15 and 18 million; the latter figure would require building a new terminal. In the meantime, more check-in counters will be placed in the existing terminal and the number of parking spaces will be increased. The BUD 2020 project also covers substantial security upgrades worth HUF several billion, including state-of-the-art body scanners at all security gates to enhance both security and passenger comfort.

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EUROPEAN INVESTMENT BANK OFFICE IN BUDAPEST

The French-owned SICTA Group, one of the world's leading automotive suppliers, inaugurated its new 1,500-square-meter office building and a warehouse facility in Felsőzsolca (Borsod County in NE Hungary). The company has implemented the facilities in the framework of an investment worth of a total of EUR 4 million (appr. HUF 1.2 billion. Another investment worth of about HUF 3.7 billion will be implemented over the next four years in order to further increase the production space and the production capacity. In the past nine years, the Felsőzsolca factory has become the Group's most important automotive industry base: this unit employs the highest number of workers – 350 people, and it is the company's largest factory, as well, with a total area of 12,000 square meters. So far, the French owner has invested approximately HUF 7.5 billion into its Borsod factory, and in the following four years an additional EUR 12 million (some HUF 3.7 bn) expansion will be implemented, expanding the number of employees by 120 people.

At the inauguration event, André d’Alès, President of the SICTA Group, said that a number of factors were in favor of Hungary at the time of expansion, including the investor-friendly policies and the tax environment, the collaborative and supportive central and local government, as well as the highly skilled and committed Hungarian workforce.

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Valeo Auto-Electric Hungary Ltd. is investing HUF tens of billions to develop its plant in the western Hungarian town of Veszprém and the Hungarian government is funding the project with almost HUF one billion (appr. EUR 3 mn), the Minister of State for Parliamentary Affairs in the Hungarian Ministry of Foreign Affairs and Trade László Szabó announced.

He was of the view that the Veszprém project is also proof that foreign companies do not regard Hungary as simply an assembly station in view of the fact that every eighth person employed worldwide by automobile part manufacture Valeo and five hundred of the 1,900 people employed in Veszprém work in the field of Research and Development. Valeo Auto-Electric Hungary Ltd.’s Factory Manager Levente Fonyódi said the company would be conducting EUR 33 million in developments in Veszprém over the course of the next three years with which it will create 180 new jobs. The project, which involves the development of warehousing technology and launching the manufacturing of new products, also includes the construction of a new, 13,000 square meter production hall. The company views as its mission environmental awareness and reducing carbon dioxide emissions, as well as the design, development and production of driver assistance systems, he added.

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analysis

A HISTORIC ELECTION…

…BUT NOT FOR THE RIGHT REASONS

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BARBARA KINNEY/HILLARY FOR AMERICA, GAGE SKIDMORE

BY TAMÁS MAGYARICS

The upcoming presidential and congressional elections on November 8th are widely regarded to be a historic event in the United States. There is quite a good chance that the 46th President will be a woman for the first time in the history of the country. No matter, though, how significant the shattering of the gender ‘glass ceiling’ might be for a large number of people inside and outside the U.S., almost all the other ‘historic’ elements in this election are factors in which the majority of the voters in the U.S. cannot really be proud.

First of all, the two presumptive presidential candidates ‘enjoy’ the highest negative ratings in the presidential contests to date. (If we translate this PC-term into plain English, they are the most hated or despised presidential candidates which is no mean achievement given some outstandingly unpopular candidates in some of the previous presidential elections.)

So, the American voters will face an unenviable task of choosing between two deeply flawed candidates. The sad truth is that the fact that these two politicians have got on top of the Democratic and Republican ‘greasy poles’ reflects a rather dramatic systemic problem in the state of democracy in America too.

Donald J. Trump’s candidacy was seen as a joke at first. The joke has later become a nightmare for not only the moderate Republicans in the U.S., but also for the large majority of the people outside of America, as well. It is not primarily the un-professionalism of Mr. Trump that makes people worry and wonder; it is not even the fact that what he says is untrue in eight cases out of ten. His w w w . d t e u r o p e . c o m

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promises are, almost without exception, absolutely unfounded; no one in his right mind (or so one would think) should believe that the Mexican state will be paying for a fence built on the U.S.-Mexican border or that he can raise the import duty on all Chinese goods by some 45%. His world view is more than simplistic; his remark on Belgium as a ‘nice city’ tells a lot about the depth of his ignorance about the world. His level of communication is that of a 4th grader in an elementary school; watching and listening to him justifies the old adage of ‘Le style est l’homme’. He lacks any conviction; he seems to want to be President of the U.S. because of the power which comes with the office. It is true that if Mr. Trump makes it into the White House, his outrageous views will be bound to be tempered and watered down by the reality of both national and international affairs, the bureaucracy, the various interest groups, and Congress, no matter what composition it will have.

While Donald J. Trump is the quintessential un-professional candidate, Hillary Clinton is the quintessential professional one. Her major challenges are numerous, though; it is not for nothing that close to 60% of the Americans would not be very happy seeing her (and her husband) in the White House (again). It is primarily the credibility issue that is her Achilles heel. She was, as before her the Democratic presidential candidate in 2004, ‘for it before [she] was against it’ or the other way around on too many issues including free trade agreements, the definition of marriage, the merit of nation-building in far-away countries, etc. If Mr. Trump does not have any core issues in his campaign, the same is true for Hillary Clinton’s campaign. On the

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other hand, if Donald J. Trump is notoriously unscripted, Hillary Clinton is scripted through and through. She seems to be a premium prepackaged product of the Democratic political machine at a time when the traditional latent anti-elitism and intellectualism among the American voters are arguably at all time high.

If Mr. Trump is a bit loose with truth, the same can be said concerning the Democratic candidate. Hillary and Bill Clinton have been big time employers of legions of top lawyers ever since Bill Clinton’s governorship in Arkansas (the ‘Whitewater-gate’), and they have been trying to tell the truth to the American people ever since. The latest issues of dubious judgment are Hillary Clinton’s use of their private server for her e-mail correspondence while she was Secretary of State, and some of the millions of dollars the Clinton Global Initiative received from different donors – and how a portion of the money was spent. Nevertheless, Hillary Clinton is a ‘safe pair of hands,’ a ‘known quantity’ all over the world, and – therefore – she enjoys the support of the various national and international establishments and the majority of the media inside and outside the U.S. What it all boils down to is, on one level, a dramatic deterioration of the democratic process in the U.S. As for the Republicans, it is a startling development that a demagogue, who is selling snake oil, has been able to defeat fairly sensible candidates and to gain the support of millions of people. His triumph is clearly a sign of a revolt against the party establishment by the majority of the rankand-file, especially the lower middle-class and working-class white voters (males and females alike), who are the losers of the

recent economic trends in the world. Their outrage is almost exclusively emotional because one need not be a rocket scientist to realize that Donald Trump is peddling empty promises. The Democrats are only slightly better off in this respect. Though Hillary Clinton has received more votes than Bernie Sanders in the primaries, she has lost almost half of them to a self-confessed socialist candidate. Her seemingly impressive lead in terms of the delegates is largely due to the support of close to 90% of the superdelegates who make up almost onefifth of the delegates at the convention – to ‘correct’, if needed, the ‘whims’ of the voters.

The problem is that the eventual presidency of either of the candidates does not carry the promise of a bold redefinition of the position of the U.S. in the changing world. In fact, a redefinition of sorts may actually be expected from Donald Trump, but his vision of a bullying America abroad and a protectionist economic policy is not exactly what would advance the long-term interests and prestige of the U.S. Hillary Clinton’s presidency carries the promise of ‘the same’ – only better.

The million-dollar question is whether it is enough in the current circumstances. Timid, incremental and unimaginative steps may not be adequate to address the host of internal and external problems from the crisis of the welfare state (skyrocketing costs of the social security, Medicare, and Medicare payments, deteriorating infrastructure, falling standards and rising fees in education, etc.) to a number of challenges in the world from the rise of China to international terrorism.

Tamás Magyarics is a foreign policy analyst

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CULTURAL TIES GENERATE NEW IDEAS INTERVIEW WITH ÉRIC FOURNIER AMBASSADOR OF FRANCE TO HUNGARY

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We raised enough money to completely reshape the bathrooms and some other parts of the building,” he adds.

are changing because of the policy of scholarships and cultural exchanges. In both directions, this is beginning to produce good results.” He is of the view that “the good cooperation we have in various technical areas within the European Union makes the political dialogue extremely interesting as we are usually supporting the same positions on several issues, like agriculture. As mentioned earlier, I see room for improvement in terms of bilateral visits and I am going to spend a lot of energy to develop high level relations in this respect. On the other side, many Hungarians from the political circles are going to France – and not just to watch football!”

Political relations Regarding Hungarian-French political relations in general, the Ambassador says he sees no difficulties. “We can regret the low level of knowledge about Hungary in France. A recent illustration of that was the astonishment after Hungary’s success at the European Football Championships in France this June. It seemed like some French journalists were discovering Hungary after many-many centuries. Luckily, these clichés

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The “Groupe des Amis de la Francophonie” was created in March 2013, under the patronage of the then Hungarian Minister of Foreign Affairs, János Martonyi. Members of the Club are ambassadors of member states, associated members, observers and special guests of the Organisation Internationale de la Francophonie (OIF) residing in Hungary, a representative of the host country (Hungary) and representatives of the Francophonie institutions in the region (such as the Bucharest-based office of the Agence Universitaire de la Francophonie – AUF).

The Club – currently with 9-10 members – acts within the framework of the Charter of the United Nations and the Charter of the Francophonie. The aim of this informal group is to promote the Francophonie’s ideals and the cooperation between its members in favor of cultural diversity, for example on the occasion of cultural or academic events, such as the Francophonie Festival, in March each year.

The current President of the Club is the Ambassador of the French Republic to Hungary, Éric Fournier. The VicePresidents are Marie-France André, Ambassador of the Kingdom of Belgium to Hungary, Levente Magyar, Minister of State and Ministerial Commissioner for the Francophone Affairs in the Hungarian Ministry of Foreign Affairs and Trade and Jean-François Paroz, Ambassador of the Swiss Confederation to Hungary. The Secretary General of the Club is the Director of French Institute in Budapest, Hervé Ferrage.

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THE CLUB OF FRANCOPHONE AMBASSADORS

DÁVID HARANGOZÓ

Ambassador Fournier took up his position in Hungary about eight months ago. He tells Diplomacy & Trade that one of the aims he set for himself then was to arrange an official visit to this country by a member of the French government. “It will probably be the Foreign Trade Minister Matthias Fekl, and I am confident this visit will take place before the end of this year. It has been quite a while since a member of the French government visited Budapest, so this is a priority for us.

Another thing I wish to promote – and we are well advanced in this – is the teaching of the French language in Hungary. I am very glad to discover the quality of many schools from elementary to university level as far as the level of teaching is concerned. This would not be possible without the support of other embassies such as Switzerland, Belgium, Tunisia, Canada, etc. Many ambassadors accredited to Hungary are members of the ‘Groupe des Amis de la Francophonie’ (see BOX).

They get together to organize popular events like film screenings and musical programs.”

According to the Ambassador, he works closely with Hungarian institutions and individuals. “In the political field, I am in contact with the representatives of the Hungarian government, of course. In the current context of the Brexit, I met recently with Minister

of State for EU Affairs, Szabolcs Takács. As for the business community, I travelled two weeks ago to the western Hungarian town of Tatabánya for the inauguration of a new building, an extension of a successful French-American pharmaceutical firm.

Let me focus, however, on the diversity of those contacts. In the middle of June, György Kovács, the President of the Association of Hungarian screen printers, gave a speech at the closure of the Victor Vasarely exhibition that was on display for the last three months at the Institut Français in Budapest. He mentioned a cooperation he had in this technical field with French silkscreen printer Michel Caza, former CEO of the company Graficaza and former president of FESPA (European Federation of printers and screen printers).”

Ambassador Fournier also worked with the Budapest fair and exhibition company Hungexpo in connection with the SIRHA international HORECA & retail show as well as with the Hungarian organizers of the European final of the Bocuse d’Or chef competition that took place in Budapest this spring.

“As for civil organizations, our embassy staff is working with several of them, Transparency International being a good example. One association of French citizens in Hungary recently organized a charity dinner with the proceedings going towards the renovation costs of an orphanage maintained by the Oltalom Foundation.

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french focus Cultural relations France and the French Institute maintain successful relationships with various Hungarian cultural institutions and also have ties to the major festivals and cultural entities in all fields (visual arts, circus, contemporary art, classical music, contemporary music, design, books, film ...). As Ambassador Fournier points out, “these relationships generate new ideas and participate in cultural dialogue through partnerships that result in numerous projects each year. The Institut Français remains a highly sought-after place by all cultural entities: our goal is to identify new Hungarian partners to enhance cooperation, sustain existing ones and find new ideas, new projects.”

France is rather well represented on the Budapest cultural scene and at festivals and exhibitions. “We regularly support significant festivals and large-scale events alongside our Hungarian partners,” he adds.

Serving in a happy country Éric Fournier has been in Hungary since the autumn of last year. This is his second ambassadorial post (he served earlier as Ambassador in Georgia: 2007-11). “My first impression is the importance of music in this country. Everywhere I go in Hungary, there is music, be it an opening of a factory, a conference or a seminar – there is always a musical introduction. For instance, I was struck when there was a tribute to the great economist Sándor Lámfalussy, the creator of the euro currency, and it

started with the world-renowned Hungarian pianist Zoltán Kocsis playing a piece. For me, sounds are important – and I have found the sounds of Hungary to be very rich! All in all, it is a happy country with good food, good climate, good moods and successes in things like gastronomy, football, etc. I am fortunate to work now in a country where people are decently happy. Of course, not everything is perfect but basically, it is quite a good place to live in.”

As for visits to places outside Budapest, Ambassador Fournier says these have mostly been of professional purpose, mainly visiting French companies as well as universities in Szeged, Debrecen and other cities. He has been on a private trip to Szentendre (north of the capital), which he liked very much. This summer, when the season is better for traveling, he is planning personal trips in the countryside with his family.

He regularly posts his thoughts on the website of his Embassy.

“This is not a new experiment, I did it in Georgia as well. Here, I decided to do it more frequently – roughly, every two weeks. I believe it is a good way to interact with people who are getting these pieces on social networks. By giving short comments, messages, I hope I can develop a different kind of relationship with people who are trying to get information but who are also looking for something personal. I am told the feedback from the local readers is quite good,” the Ambassador concludes.

BILATERAL BUSINESS FIGURES

In 2015, France became the fourth largest trading partner of Hungary and Hungary is the third biggest market for France in Central Europe after Poland and the Czech Republic.

Trade had suffered from the economic crisis and a depressed economic climate since 2009. After a decline of 4.7% in 2012 and stabilization in 2013, bilateral trade resumed the path of solid growth with an increase of 8.7% in 2014 to EUR 6.7 billion. The growth continued in 2015 with a total trade volume of EUR 7.3 billion, up + 8.9% compared to 2014.

French exports to Hungary, as French imports from Hungary, grew significantly (respectively + 8.2% to EUR 3.5 billion and 9.5% to EUR 3.7 billion). France’s trade balance deteriorated slightly, from EUR -141 mn to EUR -196 mn.

In 2015, Hungary was, according to French Customs, France’s 24th largest market (accounting for 0.79% of French exports) and France’s 25th supplier (with 0.74% of French imports). France, according to the Bureau of Hungarian statistics, was the fourth partner of Hungary in 2015 with 4.81% of total trade (up one place compared to 2014). It remains the sixth destination of Hungarian products and passes the 7th largest supplier of Hungary in 2014 to 6th in 2015.

Bilateral trade is dominated by the mechanical, electrical, electronic and computer equipment sectors, representing 30.3% of French exports and 46.4% of French imports, followed by transport equipment which constitutes 21.3% of French deliveries and 16.3% of French purchases in Hungary. The trade in pharmaceutical products is up sharply (11.8% of exports and 6.3% of imports from the French point of view).

DÁVID HARANGOZÓ

SHUTTERSTOCK.COM

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IMPORTANT AND DIVERSE FRENCH INVESTMENTS

France is a major investor in Hungary. The French presence has increased, according to data from the Bank of France, by 3.5% between 1999 and 2013, from EUR 947 million to EUR 3.1 billion. As Ambassador Fournier notes, this amount is very underrated because of investments in transit through third countries.

“France is currently the 4th largest foreign investor in Hungary after Germany, Austria and the UK and before the Netherlands and Luxembourg. French investments in Hungary are highly diversified: they represent the energy sector (Dalkia, EDF, Veolia), manufacturing (Valeo, Michelin, Lafarge), agro-business (Bonduelle, Danone, Axaréal), the financial sector (Groupama AXA, BNP Paribas), distribution (Auchan, Decathlon), pharmaceutical industry (Sanofi, Servier) and the environment-friendly industry (Schneider, ERECO).”

The 353 French companies listed in Hungary employ more than 43,000 people for a turnover of almost EUR 9 billion (while the Hungarian GDP is around EUR 100 billion). Overall, it is essentially investment for large groups. While there is no French automaker operating in Hungary, many French OEMs work for the German groups (Audi-Volkswagen, Mercedes) very much present here and Japanese Suzuki. “According to estimates derived from a survey of French businesses, the real present value of these investments would be around EUR 10 billion, which effectively makes France a major player in Hungary,” the Ambassador points out.

He adds that five French companies are among the top 25 foreign investors in Hungary: Groupama, EDF, Sanofi, Auchan and Servier. “However, the willingness of the Hungarian government to buy foreign companies in some sectors it considers strategic (energy, water, waste) could lead to a significant reduction of our presence, especially in public services. Project resumption of electricity distribution activities of EDF and Engie are now stalled, awaiting the choice of the public buyer.”

He is of the view that in general, industrial investors are satisfied with their Hungarian operations (production costs, infrastructure and quality of labor). They are also satisfied with the Hungarian members of management, which is demonstrated by the fact that more and more Hungarians are put into top positions at French firms.

“We have a campaign to promote French as the language of employment. If you speak French well enough, it is easy to find a job at a French company in Hungary. In services, the opinion is more mixed because of the tax and regulatory instability that makes it difficult for long-term strategy in this market.”

The Ambassador believes there is room for improvement, provided there would be a safer judiciary, a better environment for investment. “Many investors compare the situation in Slovakia, Romania, Bulgaria, Czech Republic and Hungary. The stability of the legal environment is very important. For many years, it was not a problem in Hungary. However, nowadays, foreign investors, and not only French ones, notice a trend of erosion in the quality of the legal environment in this country. A recent example was the mandatory closure of shops on Sunday and then the revoking of this restriction. It is strange to see that a company that has been investing in Hungary for twenty years, supporting the local economy, believing in the country, can suddenly receive a notice from someone saying ‘you have five days to evacuate your premises’. I am referring to an on-going case between a wine producer in Tokaj, undergoing a destabilizing and aggressive attack from an unknown wouldbe buyer. This is part of what we call unstable legal environment. I believe this is not acceptable and we are, of course, supporting those private interests who are unfairly attacked just because some people here would like to see certain assets – developed by a foreign company – now devalued so that they can be bought under the market price. If it goes on like that, of course, investors will go to other countries. What is more, the word gets out easily and influences the decisions of possible future investors. So, the Chambers of Commerce have to be vigilant in cases when investors’ rights are trampled upon because of some private interest.”

AREA country comparison to the world POPULATION country comparison to the world POPULATION GROWTH RATE country comparison to the world BIRTH RATE country comparison to the world LIFE EXPECTANCY AT BIRTH country comparison to the world NET MIGRATION RATE country comparison to the world GDP - PER CAPITA (PPP) country comparison to the world UNEMPLOYMENT RATE country comparison to the world TELEPHONES - MOBILE/CELLULAR country comparison to the world AIRPORTS country comparison to the world

HUNGARY

FRANCE

93,028 sq km 110 9,919,128 (July 2014 est.)

90 -0.21% (2014 est.)

214 9.26 births/1,000 population 214 75.46 years 93 1.34 migrant(s)/1,000 population 55 $24,300 (2014 est.)

73 7,1% (2014 est.)

77 11,580,000 (2012) 67 41 (2013) 104

643,801 sq km 109 66,553,766 (July 2015 est.)

22 0.43% (2015 est.)

163 12.38 births/1,000 population 160 81.75 years 19 1.09 migrants/1,000 population 52 $41,200 (2015 est.)

38 9.9% (2015 est.)

114 64.9 million 24 464 (2013) 17

Source: World Factbook

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DRIVEN by COMMON INTERESTS FRENCH-HUNGARIAN RELATIONS: THE VIEW FROM BUDAPEST

Europe, North Africa and the Middle East are still facing the migrant crisis. According to the Minister of State, Hungary and France have a similar approach to migration and stance against terrorism as “both countries share the view that guaranteeing the safety of European citizens is a common priority.”

He says “France is a country that has long been facing the challenge of migration. As for Hungary, we were not really subject to this problem before 2015. The French are well aware of the situation, although, it is a question how successfully they have managed

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Cultural ties

is a member of the global coalition led by the United States against ISIL/Daesh and it also has a military contingent in Iraq's Kurdistan region. Furthermore, Hungarian personnel are present in several French-led international military missions in Africa (Mali, Central African Republic).

Economic relations In the past quarter of a century, close to EUR 10 billion worth of working capital has arrived from France to Hungary. The Minister of State says that “although, it is a fantastic amount, we would still like to increase it. Therefore,

to handle that challenge. The French have a different view on certain aspects of migration and I have to emphasize that France does not need to be told about the consequences of illegal migration.”

He is of the view that following the terrorist attacks in Paris this past November, a paradigm shift became necessary because uncontrolled migration is clearly a security issue, while strengthening the EU's external borders in the south is of key importance. “Hungary has always considered border protection as a fundamental pillar of managing migration. We are in full agreement with France on this point.”

He believes the creation of the

Schengen zone of free movement has been one of Europe's greatest achievements, it is imperative to protect it. “This is what we have been – and are – doing on the Hungarian section of the external border of the EU. We can only guarantee the freedom of internal movement with strongly secured external borders. For us, to preserve the smooth functioning of the Schengen area is a priority.”

Another fundamental aim, he says, is to reduce migratory pressures on the EU. “One of the tools in this effort – in which Hungary continues to offer both humanitarian and financial aid – is to help the

Cultural relations with France date back to hundreds of years. “The fantastic treasures of French culture are not unknown in Hungary but I believe politics should take a leading role presenting these treasures in an even more extensive way. I take it as a personal task to participate in this effort, bringing the Hungarian and French people closer to each other,” Levente Magyar states.

One of the most successful areas of relations is the cultural-linguistic collaboration: in recent years, there have been a number of large-scale exhibitions taking place both in Budapest (the French-themed exhibitions of the Museum of Fine Arts), and in Paris (the ‘Béla Bartók and the Hungarian Modernism’ exhibition and series of events in the autumn of 2013 in the Musée d'Orsay) under the patronage of the Presidents of the two countries. Currently, an exhibition from the collection of the Hungarian Museum of Fine Arts can still be seen in the Musée du Luxembourg (located in the French Senate building): 'Chefs-d'oeuvres de Budapest until July 16.

Particular attention is paid to the French language in Hungary. Since 2004, Hungary has been an observer member of the International Organization of la Francophonie (OIF).

Following the Orbán government taking office, several steps of great significance have been made in the field of Francophonie. For instance, since 2013, the Ministerial Commissioner responsible for the government-wide coordination of issues related to Francophonie is State Minister Levente Magyar, and as of 2015, the Hungarian embassy in Paris has created a diplomatic post responsible for Francophonie.

“In addition to the English and German universities already operating in the country, the creation of a French, francophone university would also be beneficial for Hungary. In this, we are counting on the – moral, professional, and, if necessary, financial – support of francophone partners and organizations,” the Ministerial Commissioner adds.

Levente Magyar graduated from a dual (French-Hungarian) language secondary school. “I guess, it is a sort of predestination but it would not be true if I said the post of Commissioner for Francophone Affairs was the vision that floated before my eyes when I started that school and not even when I finished it! It is definitely a position of honor for me, I feel the responsibility that comes with it and I try to meet the expectations.

I believe there have been concrete achievements in the past 1.5-2 years that can be considered successful and I hope that when I finish this mandate, I will have managed to achieve the objectives, at least in the cultural sense.”

we believe it is very important to have a dialog with French companies already here and also to approach potential investors. The figures of bilateral trade are promising, so, there are no major issues in our economic relations.

Most of the debates that arose in connection with certain French investors have now been settled. Obviously, in economic relations of such volume, there can always be problematic issues but these are continuously discussed to reach a settlement. All in all, we can say that a healthy atmosphere of trust characterizes Hungarian-French economic relations. We would increasingly like to become the Central

refugees close to their homeland as well as to support the neighboring countries receiving them. This is, again, an area where there is harmony between the Hungarian and the French positions. France also agrees with managing the migration issue outside Europe and put a lot of effort to resolve the situation in Syria and Iraq.”

“We strongly reject the quota system devised by the EU. We believe it is not working.

What is more, it has a pulling effect. Instead of distributing the burden of migration among EU member states, we should focus on its reduction. France represents a different position

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from that of Hungary concerning both the asylum reform and the quota system. The difference in our positions is justified by the fact that the two countries have been subject to different impacts, different emphases have evolved and we see different demands formulated by the citizens,” the Minister of State points out.

In summary, he highlights that “it is important to build on common denominators and use the correct forums to approximate our different points of view. We strive for unity in diversity, in accordance with the spirit of the European Union.”

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European bridgehead for French investors. It is not easy as the neighboring countries are our competitors in this respect, especially Romania that has an advantage with its linguistic and cultural closeness to France.”

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“France is an important partner and ally for Hungary. Since the change of the political and economic system in this country at the end of the late 1980s, we have established a very rich bilateral relationship with France, covering all aspects of life in addition to political dialogue. Our goal is to further strengthen cooperation on the government level, in economic and cultural relations as well as between citizens of the two countries,” that is how Levente Magyar, Minister of State for Economic Diplomacy in the Hungarian Ministry of Foreign Affairs and Trade and Ministerial Commissioner for Francophone Affairs summarizes for Diplomacy & Trade the importance of Hungarian-French relations.

Hungary and France are both members of the European Union, so, it is the EU institutions and meetings through which most relations are conducted. The Minister of State adds that bilateral cooperation with France is “based on solid foundations, driven by common interests.

Pursuing common goals, cooperation will continue in a number of EU issues like EU-US free trade negotiations, audio-visual issues, GMO control and agriculture. I believe it is the social and cultural sphere where we have to take as many incentive steps as possible to create a relationship that – although, not as intensive as with Germany – brings about a continuous dialog between the two countries.”

In reply to the claim that in the past few years, there has not been a single high-level visit in Hungarian-French relations, Levente Magyar responds by saying that “this is not right! It shows that something is dysfunctional in the bilateral ties. However, I must note here that all this, fortunately, is not reflected in the trade numbers as France is among the top trading partners for – and top investors in – Hungary!

Still, we need to look at the reasons behind this hiatus, which is present in our political relations not only with France but also with Romania, for instance”.

The two countries have common objectives on the international scene, as well: Hungary

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THE FRENCHHUNGARIAN CHAMBER CELEBRATES ITS 25TH ANNIVERSARY

A PROFESSIONALLY APPRECIATED ORGANIZATION THE HISTORIC PAST

The roots of the French-Hungarian Chamber of Commerce and Industry are lost in the mists of time. Relations between French and Hungarian traders in France, existed from the late ninth century to the founding of the French industrial circle in Budapest in 1888, the beginnings were numerous.

Before the Second World War, the first French-Hungarian Chamber of Commerce already reflected the dynamism of trade relations between the two countries, but it disappeared in the turmoil of the war. It was not until the fall of the Berlin Wall, that it reappeared for the rebirth of wide-ranging bilateral relations.

Driven particularly by István Kovács, President of the French section of the Chamber of Commerce in Hungary (CCH), and Michel Duger, Commercial Attaché of France in Hungary, the idea of recreating a French-Hungarian Chamber would take a first step forward in October 1990, in the form of a prior agreement between the CCH, represented by its President Lajos Tolnay, and the Assembly of French Commerce and Industry Chambers, also represented by its President, Philippe Clement.

After all member companies of the French section of the CCH expressed enthusiasm at the idea of joining a mixed chamber, on 16 May 1991, following a General Assembly chaired by György Csányi, its future treasurer, the CCIFH was born and joined the great family of the Union of French Chambers of Commerce and Industry Abroad.

With his expertise, his dual nationality and his commitment to the two countries, László Madarász, CEO of a banking group that came to be BNP Hungary, was elected President of the French-Hungarian Chamber of Commerce and Industry.

Founded in May 1991, the FrenchHungarian Chamber of Commerce and Industry (CCI France Hongrie– FHCCI) has been serving the French business community in this country for a quarter of a century. When asked about the greatest achievements of the organization over this period, FHCCI President Miklós Maróthy is of the view that the Chamber is not a sports club fighting for quantifiable results.

Rather, the greatest achievement, he believes, is the fact that “the Chamber is still alive and kicking, aiming at forming a community where its members have a good time.” In an interview with Diplomacy & Trade, he highlights that “it is a community based on volunteer membership where individuals and company representatives exchange and share views primarily on business issues and they do this in a comfortable setting. Our membership has stabilized and we currently have 221 members. This is a good figure given the fact that 85-90% of French or

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DÁVID HARANGOZÓ, MÜPA BUDAPEST

THE CHARTERS OF FHCCI In 2008, the French-Hungarian Chamber of Commerce and Industry took the initiative to focus on social responsibility.

Health was the first theme and the renewed success of the Charter of Health September 24, 2009 has justified the continuation of this approach to maintain the positive image of the member companies of the FHCCI. Later, a second topic – caring about the environment – was added. They launched the Environmental Charter in 2009. The purpose of both charters was to draw attention to the importance of environmental and health conscious approaches of the member companies and their 60,000 employees. With the signing of the Charters, members of the Chamber wish to highlight the actions of the French companies in the field of Corporate Social Responsibility (CSR), especially in the field of health, prevention and environmental protection.

More than 360 French companies are present in Hungary and can contribute significantly to the improvement of the environment and sustainable development.

It can have a major influence on the quality of the environment and on the lifestyle. ‘We all have a role to play as individuals, employers or employees, governments, consumers and parents to meet the challenges of today.’ w w w . d t e u r o p e . c o m

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French-affiliated companies in Hungary have a connection with our Chamber. Of course, not all FHCCI members are from these firms – others are here to establish and/or maintain business and social connections. So, in my view, the greatest achievement of the past 25 years is that we have a well-functioning, well-received and professionally appreciated organization.”

Miklós Maróthy recalls when he was present at the foundation of the Chamber a quarter of a century ago, times he has recently discussed with the founding president, László Madarász.

They have agreed that 25 years ago lobbying the government was of much greater importance, many companies joined the organization for this very purpose. “Nowadays, companies do not really need such a role by the Chamber – it is rather connections through networking activities that they require from us and that is what we provide forum for,” the President says.

He adds that the CCIFH is not a primary actor in attracting French working capital to Hungary but “at times, when we have the opportunity, we participate in events that present Hungary in France. The latest of such events have been initiated by the chambers of commerce in southern France: “during the European Football Championship, we organize meetings between Hungarian businessmen, who are visiting France on this occasion, and local businesspeople. These are country presentations in basically any field the locals are interested in about Hungary: viticulture, textile industry, etc.”

As far as the different fields of business represented among FHCCI members are concerned, Miklós Maróthy says he cannot really see any sector standing out. “Given their weight in the Hungarian economy, there are a lot of member companies engaged in commerce and I can say that law firms are slightly overrepresented in number with many law offices helping French ventures here. There are also industrial investors who are present in Hungary, representing various fields from cement production through the pharmaceutical industry to research laboratories.”

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In the early years of the Chamber, it was mostly the big industrial and service sector companies (electric and gas supply, pharmaceutical research, etc.) who arrived to take part in the big Hungarian privatization wave, while later, it was the light industry firms that characterized the French investments in Hungary.

France is the 5th- 6th largest commercial partner for Hungary and, what might not be widely known, the balance of bilateral trade is quite even, currently a bit positive on the French side because of a lot of supplies from France recently.

As far as the current investment environment in Hungary is concerned, the FHCCI President says it is a frequent topic of discussion at and outside the Chamber forums. “Our members sometimes express their feelings about this matter with harsh words. The main concerns include the frequently changing legal environment with regulations extremely difficult to follow. As for corruption, it is a difficult issue to talk about. As the saying goes ‘corruption is the flow of money

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I‘m left out of’. It is something intangible but it is a quite easily perceptible problem present in our everyday discussions. Uncertainties in the tax environment is another sensitive and confidential topic. For this very reason, companies usually do not deal with this latter issue on the surface.

All these mainly concern the larger companies as smaller firms are not that much in the limelight. However, basically all of them complain about bureaucracy, the difficulties in acquiring permissions to start a business.”

Whenever possible, the French-Hungarian Chamber of Commerce and Industry takes part in popularizing the French presence and French values in Hungary – and not just in the economic and business fields. “Our appearance at events – many times alongside the Ambassador – is greatly appreciated. It gives French enterprises a comforting feeling of stability that there is a large organization present,” the FHCCI President concludes.

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A LITTLE FRANCE IN HUNGARY THE FRENCH INSTITUTE IN BUDAPEST

BY REKA A. FRANCISCK

Hervé Ferrage, Director of Budapest’s French Institute and Councellor in charge of cultural and cooperative affairs at the French Embassy took over Budapest’s Institute français in 2013. With his arrival, the institute transformed quite visibly, into an inviting place for all who are interested in French culture and in France, in general. “You can only make a first impression once,” the director points out, revealing that he cooperated with MOME (Moholy-Nagy University of Art and Design Budapest) to create the new look of the hall and the first floor area. “We wanted breezy, colorful interiors linked directly to our Café Dumas that overlooks the Danube with a terrace packed with people chatting en français. An in-house authentic French gourmet shop, Le Gourmet de Bordeaux adds to the ambiance. Of course looks aren’t everything and it was crucial to change our marketing plans, too,” the director continues. “Our team carries out different campaigns to promote our French courses, starting at primary schools. It is always a good investment to learn a new language, and with French, you just can’t go wrong, considering that more than 250 million people speak the language all around the world. I can say that speaking French is a real asset today.”

According to the director, in 2015, a total of 2,000 registrations arrived to the institute’s Language School, which indicates a growth compared to previous years. “It is important to constantly renew our public,” he notes, adding that he aims to do this via countless cultural programs, especially cinema, and “flashy” communication materials in order to attract youngsters. “There is an increasing interest in Hungary in French movies or coproductions,” Ferrage notes, mentioning the Francophone

Film Days that were introduced back in 2011, as part of the annual Francophone Festival, that is organized every spring to promote and enhance the knowledge and appreciation of French and Francophone cultures. “As French cinema has been always popular, the institute decided to continue its series of screenings at summer time starting an open-air film club at Holdudvar, which has become a tradition.

Since last year the screenings take place at Corvin Club (Corvintető). This summer, the program will kick off on July 14 and will carry on weekly until the end of August. We expect full house screenings, just as last year.” For those who are hungry for French films all year long, Ferrage suggests visiting the institute at Fő utca, where a high-tech, digitalized auditorium awaits them with updated soundsystem, DCP technique and new projectors, and a wide range of film programs throughout

initiated by Hungarian partners. Ferrage highlights an ongoing exhibition titled ‘Picasso – Transfigurations, 1895-1972’ that boasts a hundred paintings, drawings, sculptures and other artworks from every period of Picasso's career, loaned by the Musée National PicassoParis. This exhibition is showcased at Budapest’s National Gallery until July 31. The director cherishes good relations with Budapest’s Müpa, and notes that the CAFe Budapest festival, organized by Müpa every fall, will focus on France this year with its Bridging Europe program series.

“We have signed a yearly partnership with BMC to introduce French Jazz concerts to Hungarian audiences, while with Trafó, we will be active in the field of new circus productions. A38 will also host French concerts this year. To commemorate the 60th anniversary of DID YOU KNOW? the 56’ Revolution, we will focus on the revolution’s The French Institute in Budapest French relations, and will offers a number of academic contribute to the Hungarian scholarships (MA degree or PhD) translation of a book entitled through its Campus France Agency. the year. “By 2015, we ‘Les Héros de Budapest’ by The French agency promoting managed to receive historians Phil Casoar and French higher education, reception preview screening Eszter Balázs. In addition, in of foreign students and international rights, so we can be the October and in December, we mobility, is responsible for managing and monitoring the first in town to show the will organize discussions in students’ study stay in France. best pieces of current Budapest, Prague and Vienna, and classic French on the issues of borders and language filmmaking.” The auditorium will identities, in partnership with the Austrian and also host a number of conferences on several Czech French Institutes.” Ferrage believes it is social, political and intellectual issues among important to identify new partners and maintain which sustainable development. In fact, the open dialogue with them. His goal is to whole month of November will be dedicated to establish bonds with all the French Institutes in environmental programs, which are a follow-up the region and other European institutions to to last year’s Paris Summit (COP21), before the encourage interaction and conversation among upcoming Morocco Summit. the V4 countries, and to strengthen a European consciousness. As he put it, “Unity is strength Cross-cultural exchanges and in order to build this unity culturally, it The French Institute aims to be strongly present is important to foster dialogue between our in Budapest’s cultural scene, and cooperates countries. I’d like to see as many new initiatives with a great number of festivals and exhibitions spring to life, as possible.”

Azon vendégeket, akik minimum 10.000 Ft összegben vásárolnak, megajándékozzuk egy üveg Périgord-i borral.

VÁLASZTÁS SZERINT FEHÉR | VÖRÖS | ROZÉ

Parmi les invités qui feront un achat pour au moins 10.000 Ft sera offert une bouteille de vin du Périgord.

AU CHOIX BLANC | ROUGE | ROSÉ

DÁVID HARANGOZÓ

Among the guests who make a purchase for at least 10.000 Ft will be offered a bottle of wine of Périgord.

OPTIONALLY WHITE | RED | ROSÉ

L E G O U R ME T D E B OR DE A UX C S O PO R T

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french focus

THE PURSUIT of EXCELLENCE ESSCA TEACHES MANAGEMENT Á LA MODE

An important representative of French-Hungarian economic relations and French business education worldwide, ESSCA has had a base in Budapest since 1993.

Founded in 1909 by the Catholic University of the West on the model of the French Grandes Ecoles, in the course of the twentieth century ESSCA (École Supérieure des Sciences Commerciales d’Angers) became a prestigious school selecting the best students from France, the rest of Europe and beyond. Today, the school is spread over eight campuses in France, Hungary and China: in addition to Angers, Budapest, Paris, Shanghai and Cholet new campuses are opening in September in Aix-en-Provence, Bordeaux and Lyon. Just recently, in June, the school that is already armed with EPAS and AACSB accreditations, obtained the prestigious EQUIS, which is the world's leading international accreditation

▶ L EADER S : Dr. Catherine Leblanc, General Director and Dean of ESSCA Scook of Management (pictured on the left)​and Dr. Zsuzsa Deli-Gray, Director of the Hungarian Site of ESSCA.

for business schools, awarded by EFMD (European Foundation for Management Development). According to Dr. Catherine Leblanc, General Director and Dean of ESSCA School of Management, the international auditing team particularly appreciated the quality and diversity of the school’s programs, in addition to its strong culture research that is associated with a strong anchor in the corporate world. “This award

is the fruit of the collective success of our team, of our students, of our graduates and of our corporate and institutional partners.

It strengthens the path we have chosen: We are expanding, we are innovating, using new technologies without losing sight of what is essential.” On the question of what these most essential values could be, the school’s mission statement gives a proper answer: ESSCA equips students and managers for a successful and sustainable career while taking fully into account the human and social dimensions of a globalized world. This is achieved through high level academic and professional management programs, developed by a research-active faculty, a strong student mentoring system and respect for the traditional humanist values on which the school was founded. “Educating students for careers in a globalized world is central to ESSCA’s mission,” agrees Dr. Zsuzsa Deli-Gray, Director of the Hungarian site of ESSCA. “Our network with 190 partner universities in 49 different countries is crucial to this objective,” she continues, adding that all student mobility with partner universities is on an exchange basis and incoming international students have the choice of studying in French or in English. Thanks to a mandatory international semester – study or internship – during the 3rd year and the possibility of further study or internships abroad at the Master’s level, all ESSCA students are given the opportunity to develop their language and intercultural skills, while gaining credits for transfer to their ESSCA degree. “And so one of the biggest advantages of our university is its international character: students speak at least 3-4 languages fluently and, by the end of their education, they are familiar with international corporate culture,” Dr. Leblanc adds.

DEGREES

Incubator house Each year ESSCA welcomes up to 3, 000 students and trainees. On all campuses, a rich and dynamic community life exists with at least 50 associations in the most different genres. Creative boxes, interactive classes and classrooms such as the high-tech PECT room, create a stimulating learning environment that favors the development of students’ managerial and entrepreneurial skills.

As education is focused on the corporate world from the very first year, (with practical and academic studies kept in balance, lectures held by visiting CEOs and learning expeditions led to places such as the Sillicon Valley), the alumni integrates into the workforce very quickly.

According to Dr. Leblanc, 90% of the students find their first position in less than three months following their graduation, or even before.

“Half of our students sign their contract while at school, or create their own start-up business. To bring out and foster the entrepreneurial talents

A member of the Conference des Grandes Ecoles, ESSCA delivers a 5-year post-secondary Master’s degree and also offers bachelor programs, specialized Masters’ Degrees and a Master of Science and several options for double-degrees. It offers an international degree course structure through links with its network of 190 partner universities in 49 countries. The Grand Ecole program is accessible through an Executive Education avenue; the School also offers numerous specialized programs for CEOs, managers and operational teams.

of students, our campuses serve as business incubators. As we say, we give personal support from the first year of studies to the graduate’s first job.” Dr. Deli-Gray continues, “50 % of young graduates start their career abroad.

Those many foreign students who acclimatized to the CEE region’s climate, even Brazilians and Canadians, have the intention to stay and work in Hungary. With more than 2 million inhabitants and 10,000 companies, Budapest is influential throughout Central Europe, a region of significant economic growth. France is the third largest investor and its top corporations are active in Hungary, offering countless internships and positions.”

BRIDGING EUROPE FRENCH DAYS AT MÜPA BUDAPEST

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FABIEN TIJOU, ESSCA

Vivid French culture, full of style and grace, will be the focus of this year’s Bridging Europe festival, a joint production by the Budapest Festival Orchestra (BFO) and Müpa Budapest. The season-opening series, which is becoming a tradition, will take place on September 21-28. With a program that is richer than ever, the BFO is going to show the many faces of French music, from rarely-heard baroque melodies, through 20th century Parisian extravaganzas to modern and ear-catching performances. The festival will also feature such prominent members of 20th century French music as Juliette Gréco, Michel Legrand and Jean-Luc Ponty. La Gâpette will bring their individual Breton sound to the stage, the literary performance Transaction promises to be astonishing, and the festival will present the world première of the Krisztián Gergye Company’s Lautrec will dance.

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french focus 1011 Budapest Fő utca 20. +36 20 509 3430 info@pavillondeparis.hu www.pavillondeparis.hu

1063 Budapest Andrássy út 111. +36 1 462 2189 info@laperlenoire.hu www.laperlenoire.hu

FRENCH-INSPIRED TOP QUALITY GASTRONOMY, TUNEFUL CHANSONS, COZY INTERIOR AND A BEAUTIFUL TERRACE

LA PERLE NOIRE La Perle Noire, a restaurant, which permeates French influences, opened its gates three years ago in one of the most elegant of Budapest neighborhoods, at the intersection of the diplomatic quarter and Heroes Square, on Andrássy Avenue.

Owners Szilvia Szarvas and András Gendur are committed to the use of the finest ingredients in their recipes. They believe, that gracious hospitality and eye-catching servings are as important as providing substantial portions of fine dining quality at an affordable price.

“We welcome our guests with lavender champagne, followed by an ‘amuse bouche’ to die for, and a fantastic homemade bread selection.

To end the course, we serve ’petit four’. Exclusive local and exported wines and cocktails are also available,” says Szilvia Szarvas. “The location, the over 200 square meter indoor area and the 170 square meter terrace offers everything we have ever wished for,” amends András. “The moment we first entered, we knew where the 12 seat separated VIP section and the 12-16 seat lounge would be. We have pictured our restaurant as an affordable, high-end place to resemble those eateries that line the dreamy streets of Montmarte in Paris. It is not the Sacre Coeur you can see from our windows, but the gracious Andrássy Avenue instead, the

PAVILLON DE PARIS is a restaurant with an impressive vision, executed with absolute attention to detail and nestled in an enchanting garden. In the colder months, glass windows are elevated to shelter guests from the cold, preserving the unique close-to-nature atmosphere. Created

by Chef Ferenc Szabó, the essentially French menu puts an emphasis on seasonality. Pavillon de Paris has an unbeatable atmosphere. Take someone who’ll appreciate its charms.

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avenue that many consider the eternal meeting point of beauty and culture,” András adds.

It is no surprise then, that the restaurant, under the direction of chef László Koncz, has become one of the pioneers of top gastronomy in Budapest.

The owners know that it is important to please guests in every sense, so they decided to complete the overall ambience with quality entertainment: live bar music plays every night on weekdays thru the summer, featuring musicians such as Hungarian pianists József Csikós, Péter Kuzbelt and Károly Ökrös, a member of Budapest Bár.

LÁSZLÓ BALKÁNYI, SHUTTERSTOCK.COM, ÁKOS SZÉNÁSI, DÁVID HARANGOZÓ

PAVILLON DE PARIS

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TÓTH GÁBOR GYULA/HEAVENMANPHOTOGRAPHY 2014, COURTESY PICTURE

french focus ORGANIC WINES ARE on THE RISE

AND THEY ARE DELICIOUS, TOO!

When it comes to French wines, many of us think about Bordeaux or Burgundy.

However, Languedoc-Roussillon with its 220 000 hectares is ranked as the biggest organic wine growing region located in the South of France. The Rhône’s delta is where Camargue wines come from with exceptional biological diversity. “Respect for nature combined with good infrastructure allow for elaborate wines that reflect the harmony between man's knowledge and the expression of the terroir” – said Patrick Guiraud, president of the Inter-Professional Association of Organic Wine Growers of the South of France at a special tasting held recently in Budapest.

His estate, “Domaine de Valescure” produces enough energy to be self-sustainable thanks to its 1,000 square meter park of solar panels.

At the event, Hungarian wine experts were impressed by the

French wines. More importantly, the French winegrowers were surprised by the quality of local Hungarian wines. Guiraud was especially interested in the innovative wine growing techniques and different grape varieties of Koch Winery of the Hajós-Baja Wine Region. The French experts later visited the vineyards to gain first-hand experience.

“We have been using ecofriendly, sustainable fertilization

for years in our vineyards.

I made the decision to work with the utmost respect for the environment – emphasized Csaba Koch, who believes cellar hygiene is just as vital as organic wine making. The Hajós-Baja winemaker does not use any artificial chemical fertilizer nor fungicides and he experiments with new grape varieties, such as „pannónia” and „bácska”. The result is a more resistant grape variety. And

the conclusion of the French and Hungarian winemakers at the end of the tasting? Organic wines are not only extreme, but delicious as well.

Creating value in Hungary for the healthcare and for the national economy www.servier.hu

SERVIER’S DEVELOPMENT RELIES ON THE CONSTANT SEARCH FOR INNOVATION IN FIVE AREAS OF EXCELLENCE:

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

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16SERV EA11 Lezárásának dátuma: 2016.06.27.

The development of a medicine is a lengthy process.

Today, Servier research teams work not only for the present, but for the future and for Life itself.

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business

BACKGROUND and EXPERTISE in INVESTMENT MANAGEMENT NATIONAL BANK FOUNDATIONS MOVE TOWARDS REAL ESTATE PORTFOLIO

At the beginning, the six foundations kept their capital primarily in government bonds.

The reason for this was evident: to keep it in the safest possible investment format.

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The asset management company of the Hungarian central bank’s foundations, Optima Plc., is purchasing four commercial real estate properties for HUF 25.2 billion forints (appr. EUR 80.5 million). The properties will be refurbished and let as offices.

The goal of the investment is to produce higher returns than the current ones, thus, boosting the funds available for foundation grants.

The four properties include two office buildings in the Millenáris Park (Millenáris Classic and Millenáris Avantgarde), the Buda Palace at Széll Kálmán square, and an office building rented by IT Service Hungary in the eastern city of Debrecen.

The properties are intended to be long-term investments that the foundations will lease, in the hope of realizing annual returns of about 6-8%.

Following completion of the real estate transactions, the assets of the foundations will consist of the following items: HUF 174.5 bn in government securities; HUF 49.67 bn in real estate; HUF 27.7 bn in company shares; HUF 10 bn in corporate bonds; and HUF 5.85 bn of bank deposits.

The financial closure of these transactions is expected in the near future and the foundations may consider the purchase of additional real estate.

“A few months ago, we began to contemplate a shift to other forms of investment and – with the inclusion of international experts – began to investigate trends on the real estate market,” Zoltán Fekete says.

He himself worked 25 years in investment banking, including large international banks like HSBC and Credit Suisse First Boston in London. “We have the background and expertise to consider possibilities as far as other forms of investment are concerned. In the past years, money market returns have decreased significantly. As opposed to 5-6% a couple of years ago, the prime interest rate set by the National Bank of Hungary is 0.9%. It can be positive for the country’s economy but for us, it is a challenge to find higher-yielding investments. We are looking at the market to find quality real estate properties – primarily office buildings, commercial outlets and logistics centers.

There is a consensus among analysts that the current gap between money market yields and return on the real estate market cannot be sustained for long hence real estate market returns are likely to decrease in the coming months and years. Therefore real estate market valuations are likely to increase in the next 1-2 years. All this suggests that this is the right time to enter the real estate market,” he explains.

The other factor in shifting from government bonds to real estate is that the European Central Bank (ECB) expressed its worries that the MNB constituted illegal financing of the state budget by purchasing government bonds. “We do not share this view by the ECB as you can see that the total quantity

of government bonds (HUF 180 billion) in the hands of MNB foundations amounts to only about one per cent of the total value of Hungary’s state debt. However, we are glad to see that the ECB approves of what we do in terms of shifting towards the real estate market and away from the government bonds,” the CEO says.

“As far as our activities on the real estate market are concerned, it is not advisable to make fast moves in this field and we also move forward prudently and make well though-out investments. We have purchased four real estate properties: three office buildings in Budapest and one in Debrecen (see box). Our aim is to make these investments increase the value of the properties in the hands of the foundations,” he adds.

The real estate portfolio managed by our company on behalf of the Pallas Athéné foundations can be divided into two groups.

Initially, the properties were purchased by the foundations (or were donated by the founder, the National Bank) in order to support their operations. Most of these were rundown buildings that we have started renovating and modernizing and they will be used for community activities: a PhD school, auditoriums or libraries. The real estate acquisitions that we started making late last year and continue to invest in this year are for pure investment purpose in order to generate higher yields for the foundations.

Tenants in these properties are totally independent of the foundations, they pay the market price for renting space.”

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NEW FACULTY AT KECSKEMÉT COLLEGE In order to construct the new building of the Faculty of Economics campus of the Kecskemét College, the six Pallas Athéné foundations, founded by the Hungarian Central Bank, have established Kecskeméti Duális Oktatás Zrt. (KEDO Zrt.). With the new faculty, the college can be transformed into a university of applied sciences.

The construction project, which began last autumn on the site of the former Izsák Street Hospital, is the largest in the history of Kecskemét. The goal of the project is to build a new university campus, with a budget of approximately HUF 15 billion.

“Kecskemét is one of the most dynamically developing cities in Hungary. International companies, like Mercedes-Benz, operate there; they need an educated workforce, and at the same time, it is an opportunity for certain applied sciences to be taught there. This investment project is to make sure that Kecskemét has a higher education institution worthy of the development of the city,” Zoltán Fekete notes.

The project will consist of five buildings; an educational center, an administrative building, a library, a hostel and a cultural center, with a total useful area of about 30,000 square meters. Pedestrian overpasses will connect the campus to the faculty of technology, and over Sport Street, to the former Rudolf military barracks, where a family sports and recreation center will be built by the municipality of Kecskemét.

As included in the statute and the social responsibility strategy of the Hungarian Central Bank (MNB), the bank aims to improve the financial culture of Hungarian society, to inspire the economic and social thinking behind the financial culture, and to develop the related institutional system and infrastructure.

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Managing wealth

THE LATEST ACQUISITIONS

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Between late 2013 and March 2015, the National Bank of Hungary (Magyar Nemzeti Bank – MNB) launched six Pallas Athéné Foundations in order to “contribute to the common good” and “implement comprehensive social objectives”. The MNB allocated HUF 260 billion forints (around EUR 830 million) in total funding to these foundations.

As Dr. Zoltán Fekete, the CEO of Optima Investment and Property Management Plc. (a company jointly set up by the six foundations) explains to Diplomacy & Trade, each of these foundations has different goals in the supporting of ideas, individuals and organizations, ranging from PhD students and research mobility applications through the widening of thinking in geopolitical and economic studies to initiatives by ethnic Hungarians beyond the country’s borders.

It is also worth mentioning that the foundations provide support for innovative ventures as it is an important area in our modern world.

As for the functioning of the foundations, applications are open continuously with the boards holding regular meetings to judge the applications. As the foundations were gradually launching their operations in the past two years, over 700 applications received funding in a total of more than HUF three billion.

When the National Bank established these foundations, there was not much information released about them and this was very much objected to by civilian organizations and political parties. Recently, this situation has changed and a lot of information has been made public.

“When the foundations were set up, their objectives were also set. We have always thought that what we need to communicate is the results rather than the plans or aims.

I believe that the amount of support awarded so far well demonstrates the quantity and quality of the work the foundations have been doing. Perhaps, in the United States, we would have started out with a strong PR campaign – here, we opted for a silent but professional work,” the CEO points out.

“A resolution concerning the public nature of information about the MNB foundations made us draw the consequences and within weeks, we made public all data concerning the operations of the foundations. So, I think we have achieved the necessary transparency in this matter. Accordingly, in the future, we will continuously communicate the activities of the Pallas Athena foundations, what support they provide, what contracts they sign, what the composition of their wealth is, how this composition changes, etc.,” he adds.

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brexit BREXIT VOTE:

UNCERTAINTY for HUNGARY THE HUNGARIAN ECONOMY AFTER THE BRITISH REFERENDUM

BY PÉTER ÁKOS BOD, PROFESSOR OF CORVINUS UNIVERSITY OF BUDAPEST, FORMER CENTRAL BANK GOVERNOR

Conventional macroeconomic analyses would not forecast very negative first round, direct economic consequences of the June 23 British referendum for the Hungarian economy. Hungary does not depend critically on British trade relations: the UK takes less than 4% of Hungary’s exports. As for imports, the UK is not among the first ten most important trading partners of Hungary.

Hungarian external trade, and the whole business cycle, is much more connected to continental Europe, to the German economy foremost.

The financial link is stronger: the UK ranks as our seventh largest investor. British positions are important in professional services sectors, retail, and telecommunications – the players are mostly large firms, with global horizons.

So, on the face of it, there is not much macroeconomic ground for deep pessimism in Budapest. Yet, business leaders and economic analysts have reacted to the outcome of the referendum with anxiety. One reason of the nervousness is the extreme trade openness of Hungary: the volume of export of goods and services is close to 100%(!) of the country’s gross domestic product – this ratio is more than double of Eurozone average. The second underlying factor is Hungary’s still sizable foreign debt (public as well as private sector debt). Under such conditions, any major event may have an immediate impact on the economy.

It is telling that the exchange rate of forint (HUF) depreciated considerably on the first news of the outcome of the referendum.

plans. Without knowing the details of these strategy reviews, what seems certain is that some investment plans and acquisition projects are already on hold. Postponed projects may never materialize in a fast changing environment. Analysts immediately reduced European growth forecast figures.

Underinvestment A halt, even if transitory, adds critically to a particularly Hungarian problem: underinvestment.

Capital accumulation activity in Hungary has been rather weak for some years in the private sector in spite of the fact that, in some branches (notably in the automotive and ITC-related industries), a few large scale investments have been made recently. However, the overall investments figures in the first quarter of 2016 were particularly disappointing in most sectors.

It is primarily the public sector investments financed from EU transfers that have shown strong growth until very recently: Hungary has been absorbing a record amount of EU funds in the recent four years. However, 2016 is going to be a mediocre year in this respect due to the inner dynamic of drawdown of these funds. In consequence, construction firms have been struggling – even before the British maelstrom.

A further weakening of incoming direct investment flow (from UK-based firms and, more importantly,

also from non-UK businesses) is seen as the most important downside risk for Hungarian economic growth. Overall, the volume of investment may shrink by 8-10% this year. European trade growth will very likely also suffer from consequences of the British exit. Hungarian government officials forecast a 0.3% drop in growth rate this year (and twice as much in year 2017) compared to previous growth plans. Research institutes have similarly cut their annual growth prognoses: Hungary’s GDP is forecast to grow this year by 2% or less – a significant drop from the 2014/2015 level.

Uncertainties and concerns Another key aspect weighing heavily on the future course of the Hungarian economy is cross-border employment. It may be a bit too much to say that London is the ‘second biggest Hungarian city after Budapest’, but not far from reality. Hungary is a latecomer to the club of Central and Eastern European nations with massive outflow of working age population into EU member states, but the consecutive economic shocks that have hit Hungary since 2006 eventually catapulted hundreds of thousands into economic migration. The UK has been, so far, one of the most favored target countries.

The socio-economic consequences include an increasing shortage in certain segments of the Hungarian labor market (medical, IT), as well

as a steady flow of repatriated savings. It is too early to tell how future political and regulatory changes will influence the behavior of those Hungarians who have settled in the UK and those who still plan to find employment there – the first surveys indicate that few economic migrants want to return home, given the huge gap in real wages and in living conditions.

The overriding concern in Budapest is the eventual configuration of Europe in the years to come, and Hungary’s position within it. The Orbán government’s ‘patriotic economic policy’ course and its handling of the refugee crisis have alienated many partners in Europe. With the UK leaving the EU structures, the ‘regain national sovereignty’ policy of PM Orbán loses a natural ally. It is hard to tell what shape EU integration will take, and how Hungary will fit into the emerging structure.

Increased geopolitical uncertainty hurts the growth prospects of the countries on the EU periphery – and Hungary is one of them. It is highly unlikely that the generous EU transfers will keep flowing into the Hungarian economy in the medium term. It is also improbable that the period of hyper low interest rates will last very long. In short: the secondary consequences of the chain of events triggered by the British referendum may turn out to be serious for Hungary. Let us hope that business leaders, the political class, and opinion shapers will find the appropriate answers to pressing questions.

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DIPLOMACY&TRADE

Increased level of uncertainty However, this is the initial impact only. What seems to bother analysts and business decision makers are the indirect, secondary consequences of Britain’s leave. The modalities of the two year transitional period are not known yet, thus, it is hard to see how British-Hungarian trade relations and financial links will develop in the coming years. Hungarian export flows to the UK and British exports to Hungary mostly consist of advanced manufacturing products (pharmaceutical, machinery); the transactions are driven by market motives and should not be very sensitive to political uncertainties. However, business executives in Budapest are still worried, and not eminently about the bilateral relations.

What bothers them is the increased level of uncertainty at the European level. Hungary, like some other nations of the region, has a dual economy: roughly half of the output (and the majority of export) come from foreign owned firms – meaning that only the other half of the nation’s output is produced by domestic companies. Headquarters all over Europe are busy these days reviewing and recalculating their investment and market development w w w . d t e u r o p e . c o m

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india

EXPLORING the POSSIBILITIES of FURTHER COOPERATION BUSINESS DELEGATION FROM INDIA VISITS HUNGARY

exist vast opportunities for further investments

by Indian companies in Hungary, as well as Hungarian companies in India. The Commission also noted that there are complementarities between the two economies, which need to be leveraged. It was decided to explore possibilities of further cooperation in numerous sectors: water management, space sciences, energy transmission systems, science & technology, transport, education & culture, traditional medicines,

biotechnology and pharmaceutical industry, IT/ ICT, Shared Service Centers, automotive, logistics, renewable energy industry, tourism and food industry. The Hungarian side announced creation of the post of Science and Technology Attaché at its Embassy in New Delhi, given the importance of cooperation between the two countries in the areas of science and technology. The Commission also decided to further strengthen cooperation in the educational field by signing agreements

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DÁVID HARANGOZÓ

The Fourth Session of India - Hungary Joint Commission on Economic Cooperation took place in Hungary on 2-3 June, 2016. The Indian side was led by Shri Ramesh Abhishek, Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry; the Hungarian side was led by Dr. László Szabó, Minister of State for Foreign Affairs and Trade.

The Joint Commission acknowledged that there

and MOUs for mutual recognition of degrees and skill qualifications, and facilitate tie-ups between Hungarian and Indian vocational training centers.

A meeting of the Joint Business Forum was held on the sidelines of the Joint Commission meeting, at which a 17-member delegation from India participated and held business-to-business meetings with Hungarian entrepreneurs. Shri Ramesh Abhishek, in his address to the Forum highlighted various sectors under Make in India and other flagship initiatives of the Indian Government, which present vast opportunities for Hungarian companies. Dr. László Szabó, in his address welcomed the fact that Indian investments in Hungary are of the order of $ 2 billion and Indian companies employ around 10,000 persons in Hungary. India was the largest investor in Hungary in 2014 and the third largest investor in 2015. An MOU on Cooperation between FICCI and Hungarian National Trading House was also signed during the meeting.

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india OUR LIFE is OUR CULTURE INTERVIEW WITH INDIA’S MINISTER OF STATE FOR CULTURE, TOURISM AND CIVIL AVIATION

CULTURE, TOURISM, CIVIL AVIATION way. A great manifestation of these relations is the Ganges-Danube festival, celebrating our cultures and presenting India’s cultural diversity in nine places simultaneously throughout Hungary.

It is a big testimony to the great ties that the two countries enjoy. We have had long, time-tested relations with each other from cultural exchanges to Rabindranath Tagore and Amrita Sher-Gil. Throughout history, we have respected each other’s culture and we have learned from each other’s culture: dance, other performing arts, literature, etc,” the Minister of State pointed out.

As far as the most popular aspects of Indian culture abroad are concerned, Dr. Mahesh Sharma highlighted that “Culture is a way of life in India: everything from getting up in the morning and moving on through the daily routine. There is a saying that ‘the whole world is a family’ – Mahatma

Gandhi started this high level thinking. We are all selfish to some extent. That has been defined so broadly as ‘I should be happy’, ‘my relatives should be happy’, ‘my village people should be happy’, ‘my state people should be happy’, ‘my country people should be happy’ and ‘my human race should be happy’ – even the most selfish personal pronoun, ‘I’, is extended to other people.”

He added that “what has impressed the world about India is our cultural wealth. In India, in every 300 kilometers or so, the color changes, the dress changes, the habit changes, the religion changes, etc. However, in spite of that, three generations are cooking in the same kitchen – even in the diaspora, we have been practicing that for several decades, it has become part of Indian culture and the whole world is looking towards us in amazement. It is our strength that our life is our culture.”

The cultural factor has great importance in bilateral and other international relations, as well. The Minister of State stressed that “cultural exchange programs do not just mean that we have an Indian dance performance in Hungary or in another country. It is something like the honeybees do when travelling from one flower to another – they carry something along the way. This is what our cultural exchange program is about: we carry that sense of life, the way of life. The three things in my portfolio (culture, tourism and civil aviation) are intertwined in this sense: tourism is a mould as our richest asset, culture is given wings through aviation to be carried around the world.” As tourism and civil aviation are also part of his portfolio as Minister of State, Dr. Mahesh Sharma also commented on this area of bilateral relations. Currently, the closest to direct aerial link between India and Hungary is that of between Vienna, Austria and New Delhi. “As I understand, there was an increase of 75% in tourism figures from India to Hungary in 2015.

Indians visit this country as a destination of choice. Even our film industry is using Hungary as a shooting location. The ambience, the culture, the traditions and values are attractive features for the citizens of both countries to visit one another.

Celebrating this Indian festival in your country just confirms this sentiment. Let’s learn from each other and let’s strengthen our bilateral relations in all fields of life!” the Minister of State concluded.

photos by

DÁVID HARANGOZÓ

The Minister of State for Culture, Tourism and Civil Aviation in the Government of India, Dr. Mahesh Sharma, visited Hungary this June on the occasion of the Ganges-Danube Cultural Festival and the International Day of Yoga. He spoke to Diplomacy & Trade regarding the importance of events like this in promoting India’s culture and cultural relations with other countries.

“When you talk about India, what usually comes to people’s minds all over the world is the rich Indian heritage and culture. That is a great asset of our country. There is also a cultural connection between Hungary and India. The poet Rabindranath Tagore identified this connection some 90 years ago and he very much appreciated it. Since then, bilateral cultural relations have been developing in a big

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Italian Day

National Day of Denmark AMBASSADOR OF DENM ARK, Tom Norring and Claudia Papayianni held their Farewell Party and also celebrated the National Day of Denmark on June 27 at the garden of Danish Residence in Budapest.

AMBASSADOR OF ITALY, Maria Assunta Accili celebrated the National Day of Italy with a reception at Budapest's Italian Cultural Institute on June 2.

Day of the Finnish Defense Forces FINNISH AMBASSADOR Petri Tuomi-Nikula along with Defense Attaché of Finland Arvi Tavaila welcomes guests at a reception to celebrate the Day of the Finnish Defense's Force.

New Ambassadors FOUR DIPLOMATS presented their credentials to Hungarian President János Áder (pictured clockwise from top left): Imre Ugron from the Sovereign Military Order of Malta, Zenimjadar Batbajar from Mongolia, Lyubov Vassilivna Nepop from Ukraine and Ng Shin Ein from Singapore.

Russia Day THE RECEPTION to celebrate the Russian National Day (June 12) was opened with a welcome speech by Ambassador Vladimir Sergeyev Nikolayevich at the Embassy of the Russian Federation in Budapest on Andrássy Avenue.

National Day of Croatia

HARANGOZÓ, ZOLTÁN MÁTHÉ/MTI, BRITISH EMBASSY BUDAPEST

HARANGOZÓ, BALÁZS FARKAS-MOHI, MÁRTON SZITA, COURTESY OF THE EMBASSY OF INDIA

photos by DÁVID

photos by DÁVID

CROATIAN AMBASSADOR Gordan GrlićRadman held a reception at the Hungarian Academy of Sciences and welcomed Hungarian Minister of Defence István Simicskó among his guests.

Thai Night O N JUN E 1 the Royal Thai Embassy, the Ministry of Foreign Affairs of Thailand, the Ministry of Tourism of Thailand and Tourism Authority of Thailand hosted a 'Thai Night' at the Mom Cultural Theatre in Budapest.

Ambassador of Thailand Kanthong Unakul welcomed guests to a grand dance show.

90th Birthday of Her Majesty Queen Elisabeth II BRIT ISH AM BASSADO R IAIN LINDSAY and his wife, Bridget Lindsay celebrated the birthday of their Queen Elizabeth II at the British residence with a wonderful garden party. With reference to the 400th anniversary of the death of William Shakespeare, scenes were acted out by young actors.

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society DIPLOMACY & TRADE co-hosted a special event with NextArt Gallery to celebrate the Summer Solstice. The Party was inspired by Shakespeare's famous comedy, A Midsummer Night's Dream and was complete with the opening of an exhibition by Géza Szöllősi, titled Handmade Hollywood. His works have just returned to Budapest after a successful US debut in Miami.

MIDSUMMER NIGHT DIPLOMACY&TRADE

HARANGOZÓ, ZOLTÁN MÁTHÉ/MTI, BRITISH EMBASSY BUDAPEST

HARANGOZÓ, BALÁZS FARKAS-MOHI, MÁRTON SZITA, COURTESY OF THE EMBASSY OF INDIA

photos by DÁVID

photos by DÁVID

SPECIAL CLUB

International Yoga Day TO FURTHER STRENGHTEN THE BONDS of bilateral cultural relations between India and Hungary, Embassy of India organized the Ganges-Danube: Cultural Festival of India this June in nine cities of Hungary: Balatonfüred, Budapest, Eger, Esztergom, Szentendre, Sopron, Nagykanizsa, Szeged and Debrecen. This year, the International Day of Yoga was also part of this festival. The aim of the International Yoga Day is to raise awareness of healthy and conscious lifestyle among people.

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witty leaks OF THEIR EXPERIENCES ON “EXCURSIONS”

into Hungarian culture, art, gastronomy & scenery.

FROM AVENTICUM TO AQUINCUM

with mutual visits and joint events. While travelling in Hungary, I also discovered the great treasures of the Middle Ages and of the Renaissance. The impressive castles and fortresses in Visegrád, Eger and Diósgyőr and - for an avid collector of old maps - of course, the well-preserved libraries that conserve the spiritual and intellectual heritage of that period. It was during a visit in Debrecen that I witnessed how much the Swiss Reformation - particularly Calvin’s teachings - affected not only the city as the ‘Calvinist Rome’ but also the Hungarian church and people at that time.

The events of 1956 still continue to have a significant influence on relations between Switzerland and Hungary. After the failed uprising against Soviet communism, around 12,000 Hungarian refugees found asylum in Switzerland. Although, far away from home, the contacts with families and friends who didn’t leave the country remained. Having experienced a completely different way of life, these people still play an important bridging role between the two countries. Few people know that emigration - although, not to this extent - had also taken place in the reverse direction more than a century earlier. Some of the Swiss who came to Hungary contributed to important developments in this country and left traces that are still visible today.

Persons like Abraham Ganz from Embrach, the founder of the Hungarian heavy industries or Emile Gerbeaud from Geneva who laid the foundations for one of the greatest cafés in Budapest. Courageous Swiss citizens like Carl Lutz and Friedrich Born who managed to save thousands of lives during World War II, undoubtedly made an important contribution to maintaining the positive image of Switzerland.

Places such as the Glass House, the Hospital in the Rock, the Ganz Museum in Budapest and the Arch abbey in Pannonhalma, keep the memory of the great achievements of the Swiss in Hungary alive for the next generations.

I felt honored to get the chance, as part of the Grand Tour of Switzerland in Hungary, to show some of these memorable places to the President of the Swiss National Council, Mrs. Christa Markwalder, during her recent official visit in Hungary. She was deeply touched by the ‘Swiss heritage’ left in Hungary.

This being said, I’m leaving this country with mixed feelings. During my mission, I made a special effort to ensure that Hungary’s image in Switzerland is based on objective and balanced assessments and that Hungary’s reputation as an investmentfriendly country remains established for Swiss investors. At the end of my tenure however, I regret that recent developments have forced me and the Swiss authorities to recall the obligations resulting from the Agreement on the reciprocal promotion and protection of investments. Like a fine porcelain plate, the reputation of Hungary can be easily destroyed. Take care, Hungary!

You deserve a bright future!

THE EXTENSIVE DIVERSITY OF SWISS-HUNGARIAN RELATIONS

BY JEAN-FRANÇOIS PAROZ, AMBASSADOR OF SWITZERLAND TO HUNGARY

After four interesting years, my term here in Hungary ends in early August and I will be assuming the position as the Ambassador of Switzerland to Japan next September. My time here has been filled with challenges and unforgettable memories that my wife and I shall cherish for the rest of our lives. On a personal note, Hungary will always have a special place in our hearts, as it is the country where our son was born.

I look back with satisfaction at the evolution of strong contacts between our two countries in recent times and recall with pleasure the embassy’s involvement in a very broad range of initiatives which have further strengthened our relationship over the past years.

Despite not being a member of the European Union, Switzerland is an important partner for Hungary. With approximately 300 companies that provide jobs to almost 39,000 people, Switzerland has traditionally been among the top 10 investor countries. The Swiss Contribution Program has also constituted an important pillar of our bilateral relations with Hungary since the country became a member of the EU in 2004. It is thus hardly surprising that the intensive economic and cultural exchanges between Switzerland and Hungary have kept me busy in different fields.

The diversity of projects enabled me to visit different places throughout the country and to meet and build up a large and sustainable network of partners not only on an official and governmental level, but also between cities, municipalities, universities, private actors and NGOs. Switzerland and Hungary share a common cultural heritage whose origins can be traced back to the Roman Empire. Given that I grew up in Switzerland near Avenches (or Aventicum), which used to be the former capital of Roman Helvetia, it was indeed a nice surprise to learn that Budapest itself lies on the territory of the ancient Roman city of Aquincum which used to be the capital of Pannonia. Even more astonishing was the fact that in both cities, rare remains of Roman water organs of the same type were found during excavations. Of course, we should not forget about the wines! Both of our countries look back on a wine tradition that dates back at least to Roman times. Within the embassy’s Swiss-Hungarian Friendship program, the shared passion has even lead to partnerships between Swiss and Hungarian wine regions

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LE A K S

IN THIS SERIES, DIPLOMATS SHARE PERSONAL ACCOUNTS

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WITTY

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culture

STAR STUDDED SUMMER PROGRAMS

DID YOU KNOW?

The Summer Festival mobile application for iOS and Android devices are great tools for everything that is worth knowing about the open-air theatres in Budapest with up to date news, programs, ticket sales, and discounts at your fingertips.

BUDAPEST SUMMER FESTIVAL 2016

A cornucopia of productions from all genres, Budapest Summer Festival offers opera, music and dance staged at two open-air theatres - one on Margaret Island and one in Városmajor Park, until the end of August.

Budapest's annual open-air summer festival kicked off on June 10 with a concert of the National Philharmonic Orchestra concert, conducted by Zoltán Kocsis and featuring Chinese pianist Yuja Wang. We are halfway through the three-month festival as I talk with Teodóra Bán, managing director and art director of Open-Air Theatre Nonprofit Ltd., the company behind the festival.

“I’m very satisfied with the numbers, and also with the weather” she says with a quirky smile, adding that the festival, which is in fact, the lengthiest in Hungary, welcomes a growing number of foreigners. “Up to 10% of our guests arrive from Great Britain, Germany, Italy and Scandinavia, many of them enjoying the advantages of our ‘Sleep in Budapest with a theatre ticket!’ tourist package that includes first class tickets to Summer Festival performances, hotel room with breakfast, roundtrip boat transfer and Water Tower admission.” Bán is proud that the Summer Festival has become a significant tourist attraction, which strengthens Budapest’s reputation as a city of festivals in all seasons.

“I believe that the Margaret Island Open-Air Theatre with its spectacular natural setting, is one of the nicest stages in Central and Eastern Europe, and is suitable to take its place among the summer theaters of Salzburg, Verona, Bayreuth, Klagenfurt and Mörbisch. 1 CT Budapestweek - 2016 május.pdf

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TE O D Ó RA B Á N: managing director and art director of OpenAir Theatre Non-Profit Ltd. 2016.

06. 28.

16:48

Together with the Városmajor Open-air Theatre, the festival offers a rich choice of programs and amenities, more than one hundred theatrical performances and concerts, exhibitions and free family programs, enticing 80,000 visitors of all ages, in the summer.”

According to Bán, novel presentations, spectacular and grand productions, onetime events and unique content enriches the 2016 festival’s program. She suggests the production of Othello on July 29 or 31 with world famous Hungarian star Andrea Rost in the role of Desdemona, and American tenor, Marc Heller in the title role. “Linked to the 2016 Shakespeare year, Romeo and Juliet, the playwright’s most beautiful love story will be performed by Europe’s preeminent classical ballet company, the Monte Carlo Ballet on August 5, in Jean-Christophe Maillot’s choreography to Prokofiev’s music.

Another not-to-be-missed program is the spectacular Magic Show, presented by world famous illusionists on August 12-13,” the managing director reveals. According to her, it is best to get to Margaret Island by the ‘Theatre pleasure-boat’ - chartered boats which arrive at the private dock of the Open Air Theatre and Water Tower five times daily, in perfect timing to comfortably reach the start of the shows and later on to take guests back to downtown Budapest. To my question

of why is 2016 the year of romance at the Budapest Summer Festival, Bán explains that the motto came natural when she was planning this year’s events and knew that numerous events would commemorate William Shakespeare, the true romantic and most well-known playwright in the world.

“Also, think of the festival’s main location, Margaret Island! Nothing’s more romantic than a walk here with your loved ones, far from the city’s hustle and bustle, under these huge, centuries-old trees, amongst medieval ruins and protected UNESCO sites such as the Music Fountain and the 105-year-old Water Tower. I’m sure visitors can experience intense emotions at our performances in this magical place. I hope they will find as much pleasure in the festival’s programs as we did when we assembled with love and care.”

ÁDÁM URBÁN, BERCI GEBERLE/WWW.SZABADTER.HU, ÁKOS STILLER

SIGHTSEEING BUDAPEST CITY TOUR Explore Hungary & Budapest!

CITY TOUR

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DAILY EXCURSIONS IN HUNGARY

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Office: H-Budapest, Apáczai Csere János utca 12-14.

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JULY 6 –AUGUST 24

EVENING CONCERTS AT THE ZOO

The annual summer concert series at Budapest’s Zoo kicks off in July staging light jazz, pop and klezmer concerts at two venues: the shore of the scenic Great Lake, and the Main Entrance Square.

Before the concerts you may take a walk in the Zoo that opens for these night sessions at 7PM. www.zoobudapest.com

VALLE

Y OF A JULY RTS 22 (SOME - 31, IN KÁ L 150 K M FRO I-MEDENCE M BUD APES T)

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PROGRAM July 6 Budapest Klezmer Band: Klezmer magic

July 13 Kátya Tompos: Across Europe

July 20 Ági Szalóki: The World Is But A Day

July 27 The Vujicsics Band with Ferenc Sebő: “Na kraj sela”

BIN-JIP

August 3 Tamás Bényei and the Gramophonia Hot Jazz Orchestra: “I’m All For You” August 10 András Kern: Lövölde Square August 17 Péter Geszti: LétVágy August 24 Budapest Bar

© JÁNOS KALMÁR, VINCENT SOYEZ, © ANDRZEJ LIGUZ/MOREIMAGES.NET, COURTESY PICTURES

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BETWEEN JULY 19–24 IN BALATONBOGLÁR Balatonboglár becomes a melting pot of international music and culture this summer. At Babel Sound, you can travel the world without a passport or luggage. This festival is a meeting point where you can experience music and exotic cultures from all over the world. “At Babel Sound, visitors speak the same language, and they become one big community during the festival’s 5 days," organizers say. This year’s performers include the Balcan Amariszi, the Greek Trio Feta, the Dutch Zorita, Tati Cervià & Sepharazz Mishpaha playing modernized Sephardic music, the Serbian Naked, the Bulgarian Oratnitza, the Spanish Los Chocolatinos, the Czech Čankišou and the Spanish Roba Estesa. Visitors can listen to Ethnómada from Madrid who mixed Hungarian Gipsy and Spanish music, Nakaira who sings in Greek with a Sicilian accent, and Gabacho Maroconnection from Morocco who mix Western traits with Arabic and African tunes. Hungarian bands such as Kerekes Band, Firkin, HolddalaNap, A.K.T. Meszecsinka, Romengo, Vojasa and Deti Picasso, will also step on stage. www.babelsound.hu

AUGUST 4-6 IN PALOZNAK This summer, Paloznak will once again be the capital of jazz at Lake Balaton for three days: the Paloznak Jazz Picnic returns with a star-studded program.

In the past five years, the event has grown into a celebration attracting thousands of guests with its true Balaton Uplands vibes, jazz concerts you can watch while lounging in the grass, quality wines, and top notch international and Hungarian artists.

The program’s length is expanded to three days to accommodate a busier and more exciting concert schedule than ever before. We can hardly wait for Paloznak's streets to fill with music and people strolling with a wine glass in hand; the main stage will be set up on the edge of the village, and the Folk House's garden will be turned into a live music venue. The festival, organized by a local winery named Homola Pincészet and co-organized by the Municipality of Paloznak, is one of Hungary’s most charming summer events - last year, it attracted more than 6,000 guests. The event, part of the ‘MOL nagyon Balaton’ program series, held in cooperation with Veszprémfest, promises a unique, premium selection of music, performers and culinary experiences. During the festival, a dedicated bus service will help guests travel between Paloznak and their accommodations in nearby villages, like Balatonfüred, Csopak, Balatonalmádi and Alsóörs.

The picnic vibes will be complete with picnic baskets, cooled wines, local farmers' delicacies (such as: artisanal cheeses and hams, ice cream and pálinka variations), and picnic blankets. The festival also stands for quality in terms of gastronomy: the most popular restaurants of Lake Balaton's north shore will be catering. The perfect concert experience will be guaranteed by excellent lighting and sound systems. 2016 is a jubilee year for the Paloznak Jazz Picnic. The 5th anniversary event will begin with a special Day 0, featuring the house and nu jazz formation of the French artist Ludovic Navarre, the internationally acclaimed St. Germain, on the main stage. Friday and Saturday will also bring exciting international and Hungarian artists. The line-up includes Incognito, the British acid jazz formation, as well as Earth, Wind & Fire Experience feat. Al McKay, and the Váczi Eszter Quartet, who once made the Picnic's audience dance. Also playing are "sunset concert experts" Bin-Jip - a project by Veronika Harcsa, Bálint Gyémánt and Andrew J -, Boggie, Pankastic!, Marge, Belau, the Kéknyúl Hammond Band, the Szőke Nikoletta Quartet, the Juhász Gábor Trio, and András Jász and Friends. The stage, sponsored by Sáfránkert Restaurant, will be taken over by young talents performing solo or in duo. www.jazzpiknik.hu

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BABEL SOUND

5TH PALOZNAK JAZZ PICNIC

© FOTO STUDIO COLOMBO/PIRELLI MEDIA, ENIKŐ VÁRAI, BALÁZS GLÓDI, COURTESY PICTURES

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AND PRIX 2016 HUNGARIAN F1 GR

BOGGIE

VÁCZI ESZTER QUARTET

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VAJDAHUNYADVÁR SUMMER MUSIC FESTIVAL

UNTIL AUGUST 4 AT VAJDAHUNYAD CASTLE IN CITY PARK Enjoy a great selection of classical, gipsy, swing and klezmer music, world hits and bar mood pop music, in the very heart of Budapest, at a beautiful, enchanting venue. www.vajdahunyad.hu

July 4 King Saint Stephen Symphony Orchestra: Romantic Night with Rossini and Mendelssohn July 7 MÁV Symphony Orchestra: Beethoven Night July 11 Hungarian Virtuosi Chamber Orchestra: Baroque Night July 14 Mendelssohn Chamber Orchestra: Serenade Night (Boccherini, Dvořák and Tchaikovski) July 18 Zoltán Orosz and Mihály Borbély: Interconnections (of jazz, world music, folk and tango) July 21 Roby Lakatos presents a cavalcade of Kodály, Weiner, Piazzola, Michel Legrand, Django Reinhard, roma music and jazz) July 25 Budapest Bar: The Best of Buddha Bar July 28 Lilla Polyák and Kati Wolf: Divas between each other August 1 Budapest Strings: Mozart Night August 4 The 100-member Gypsy Orchestra

GREGORY PORTER

VESZPRÉMFEST 2016

© FOTO STUDIO COLOMBO/PIRELLI MEDIA, ENIKŐ VÁRAI, BALÁZS GLÓDI, COURTESY PICTURES

© JÁNOS KALMÁR, VINCENT SOYEZ, © ANDRZEJ LIGUZ/MOREIMAGES.NET, COURTESY PICTURES

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JAM IE C ULL UM

THIEV ERY C ORPOR ATION

BUDAPEST SUMMER FESTIVAL

LIS AS TA NS FIE LD

THROUGHOUT THE SUMMER OF 2016 AT MARGARET ISLAND AND IN VÁROSMAJOR PARK Budapest's annual open-air summer festival of opera, music and dance, staged at two open-air theaters, one on Margaret Island and one in Városmajor Park, celebrates the Year of Romance in 2016.

The varied repertoire of the fest includes Othello with Andrea Rost, Marc Heller and the State Opera Orchestra, Shakespeare’s remarkable comedy, the 'Two Gentlemen of Verona' (presented in original language, by the Shakespeare’s Globe Theatre), Stanley Jordan, jazz guitarist and member of the great American guitar generation of the 80s, and much more. In July, Budapest Summer Festival brings us a brand new production of the world famous Webber musical, Evita to present the legend of Eva Peron with the contribution of outstanding Hungarian stars and the Szeged National Theatre Orchestra and Choir. Directed by Tamás Juronics, Evita will be presented at the Margaret Island Open-Air Stage on July 8 and 10. On July 15, the audience is invited to a symphonic concert that features a great repertoire of film scores honored by the Academy of Motion Picture Arts and Sciences, such as the ethereal opening of Chariots of Fire by Vangelis and eternal classics by John Williams and Hans Zimmer. Visitors can get to Margaret Island by a special Theater Boat Service before the theater shows, and a standard scheduled boat service operates 5 times a day. Visitors to the island and audience members can enjoy the unique sights of Margaret Island, including the 105-year-old Water Tower and the Open-air Theater located in the triangle of the several hundred year-old giant Platanus tree, the Saint Margaret Ruins as well as the monument of the Premontre Monastery. www.szabadter.hu w w w . d t e u r o p e . c o m

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JULY 13-17 IN VESZPRÉM Already well into its second decade, VeszprémFest is a dynamically developing, large-scale cultural event creating true value for lovers of art and quality music from Veszprém and around the country. For several days every summer the event offers the most accomplished, world-class performers from various musical genres, be it classical music, world music, opera, jazz or pop. The beautiful Baroque building of the Archbishop’s Palace in Veszprém Castle serves as the backdrop and natural setting for the concerts. The venue – far from the hustle and bustle of the big city – greatly contributes to creating a unique, intimate and friendly atmosphere for visitors. The main evening attractions this year will be the Omara Portuondo - Diego el Cigala duo, Gregory Porter, Lisa Stansfield (at Veszprém Aréna), Jamie Cullum and the Thievery Corporation. To serve as a worthy complement to the productions on the main stage, a 10-day-long mini festival named ’Rosé, Riesling and Jazz Days’ will be organized on July 8-17, displaying an excellent range of wine and food produced by Balaton-area winemakers and local restaurants, and accompanied by music played by young musicians from the Hungarian jazz scene for those longing for gastrocultural experiences. The musical programs of the Rosé, Riesling and Jazz Days are free of charge. www.veszpremfest.hu/en

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­­gastronomy

ANOTHER BAOBOX OPENS in BUDAPEST Budapest's second BaoBox is now open in District 3, with minimal design and maximum tastes. A wide range of steamed, filled buns are available for those who are hungry for Asian food.

Judit Németh, owner of BaoBox Asian street food restaurants met her husband Huang in England at a basketball match. They moved to China where Judit gained a lot of culinary experience. In China, traditional meals consist of hot dishes mainly, there are no alternatives for cold bites or sandwiches. For Judit, bao was the only breakfast option similar to European tastes. Bao became her favorite food and she learned, from local masters, how to prepare it in her home. She experimented with a range of recipes until she finally found her very favorites.

The couple decided to move to Budapest to introduce bao to Hungarians, launching two eateries named BaoBox. Their freshly made baos are now available in many different flavors, and guests can also choose from an array of sauces and salads. Judit notes that the meats and vegetables she uses are produced by local farmers while the spices come from China. Baos do not contain dairy products except the sweet dessert baos. Judit’s plan is to launch gluten free and whole grain baos in the near future.

BUDAPEST, DISTRICT 11, MÓRICZ ZSIGMOND KÖRTÉR 10.

BUDAPEST, DISTRICT 3, KOLOSY TÉR 1/A.

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hospitality

DID YOU KNOW? Declared a UNESCO World Heritage site, the Dolomites are also known as the "Pale Mountains”, and form a part of the Alps.

ON the SUNNY SIDE of THE ALPS FAMILY-STYLE HOSPITALITY AT THE 5-STAR GRANDHOTEL LIENZ

The Dolomites in the Alps are often referred to as the most beautiful mountains in the world, where gentle hills and imposing rock formations meet to create idyllic scenery. With these majestic mountains in the south and the Italian border close by, Lienz, the capital town of East Tyrol in Austria, is where you can experience a true Mediterranean flair. This vibrant town reportedly features the most hours of sunshine (more than 2,000 hours in a year) Austria gets. The old town, nestled between the Isel and Drava rivers, invites you to breathe in the crystal clear alpine air while you wander through its medieval streets lined with palm trees and colorful houses full of restaurants, cafés, bars and boutiques. “In Lienz, you can live the "Dolce Vita" to the fullest. It is an ideal holiday destination and a perfect location for our luxurious hotel, that is the single 5-star hotel in the region,” says Johannes Westreicher, manager and one of the owners of the family-run Grandhotel Lienz. The Westreicher and Simonitsch families opened their hotel in May, 2009 and their combined know-how in the hotel industry soon made “their baby” a favorite destination for those looking for top quality hospitality.

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GRANDHOTEL LIENZ, OSTTIROL WERBUNG

Green hotel Located only a 3-minute walk from the city center, Grandhotel Lienz has 76 guestrooms including business rooms, superior and grand deluxe suites, and royal suites that are decorated with bright, airy décors and feature peaceful views of the countryside. The hotel’s conference room offers 160 sq meters of flexible meeting space for seminars, incentives, and business events, with a capacity of 100 guests.

In addition, the meeting and events area features a foyer and panoramic terrace with fantastic views, perfect for staging lunch, dinner, or coffee breaks.

A selection of meetings and events packages for single and multi-day events can be further tailored to meet the needs of individual events. According to Westreicher, an increasing number of people choose Grandhotel Lienz to host their weddings, honeymoons, family reunions and all kinds of anniversaries. The hotel building was erected in 18 months with an eco-concept. “Studies show that "green hotels" are the hotels of the future,” states the hotel manager. According to him, investing in ecological concepts pays off. “More and more people expect a

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holiday in a hotel that cares about sustainability and operates in an environmentally friendly way, just like Grandhotel Lienz does. We use geothermal and solar energy and hydro generated electricity.

Special insulation of the entire building allows us not to use any gas or oil as energy. In addition, we sort all waste, glass, plastic, metal, cellulose and bio for recycling.”

Marriage of Alpine and Adriatic cuisine All restaurants at Grand Hotel Lienz are small and cosy and each has its own pleasant atmosphere. A sleek fireside parlor and an elegant lounge offer the perfect atmosphere for every time of day and preference. “On a mild summer evening we serve dinner on our romantic terrace,” Westreicher says. “Here, your eyes are treated to a magical view across the picturesque town park, surrounded by stunning mountain scenery, and at your feet lies the Isel River, the last intact glacier river.” Chef Christian Flaschberger has developed a culinary mix of traditional dishes from the Dolomites to the Adriatic Sea, serving a culinary melting pot of all these regions’ colors, aromas, preparation methods and styles. Market fresh and seasonal products give these dishes the highest quality, with a touch of modernity and class. The hotel’s wine cellar contains the perfect bottle to accompany every culinary delicacy. As soon as you enter the restaurants you will get an idea of the special wine experience awaiting you as a glass panel laid in the floor allows an impressive view into the fantastically stocked wine cellar.

“The wine list at the Grand Hotel Lienz is as varied and international as our guests,” Westreicher continues. “We have more than 150 types of wine for you to choose from. Wine tasting sessions or wine seminars for both large and small groups can also be arranged.”

www.grandhotel-lienz.com

offering indoor and outdoor pools, steam and serial baths, saunas and an impressive selection of services to restore and pamper guests with the highest level of service. To switch off and tank up on new strength and energy, to detox and purify, guests can choose from a great variety of cosmetic and beauty treatments, and special massages such as Lomi-Lomi-Nui, St. Barth Chill-Out and the Tibetan Singing Bowl Ceremony. And, for a maximum of wellbeing and health improvement, the hotel’s medical center offers preventative medicine, medical check-ups, advice on special diets and effective wellness programs and targeted therapies, directed by heart specialist Univ. Prof. Dr. med. Peter Lechleitner. “Our potential clients from all over the world are living longer and will desire better medical care in an elegant surrounding with a hotel rather than hospital ambiance,” points out the doctor, who also has a diploma for sport medicine and acupuncture. Accordingly, he believes in the good combination of the latest scientific medicine and complementary medicine.

Discover the region Eva Haselsteiner, director of the Osttirol Werbung Tourist Office notes that Lienz and the Dolomites combine to make an amazing holiday destination, in four seasons. “Between the tallest mountains in Austria, with the Grossglockner (3798 m) in the north and the Dolomites in the south, spreads this beautiful natural paradise. More than half of the land is part of the Upper Tauern National Park, the largest national

park in Central Europe with hundreds of peaks, glaciers, streams, mountain lakes, and numerous waterfalls, where guests can play golf or go hiking, horse-riding, mountain biking, or simply for a long walk,” she says.

“From Lienz it's up, up, up - the Lienz cablecar takes you directly from the town to 2278 m,” she continues. “During the winter, guests flock here for downhill and crosscountry skiing, tobogganing, ice skating, and snowshoeing. From May to October and from Christmas to mid-March, the Osttirodler awaits those who aren’t afraid of height and speed: the most spectacular Alpine Coaster in the Alps offers a thrilling ride along a 2.7 km long track that winds its way down into the valley, with plenty of waves, curves and loops to raise adrenalin. The forest high ropes course at the Climbing Park is another place where young and old alike can conquer their fears and push their personal limits.”

High above Lienz with super views across the Isel Valley you will find Bruck Castle, the former castle of the Gorizia counts, built in 1252. Today the castle houses the Museum of Lienz. There’s also a Roman Museum to visit, that preserves the Roman settlements named Aguntum dating back to the first century under Emperor Claudius (41-54 AD), 4 km east from Lienz. A little further, in Assling, Thal, is a 6,500 square meter park named ‘Vitalpinum’ that presents countless sensory stations that help the body, mind and spirit relax. Guests are invited to walk thru a path barefoot, try the Arnica fountain and the oil shower, the singing water bowls and watch the pine oil distillery work. Grandhotel Lienz keeps guests informed of the many nearby annual events, such as the Women's Ski World Cup in March, Street Theatre Festival OLALA in July, East Tyrol Fair in October or the Old-Town Festival in August.

Wellness and medical therapies Grandhotel Lienz is a World Travel Awards winner as Europe's Leading Wellness Hotel. Its private spa and wellness center spans over 1,400 square meters,

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DAZZLING COMFORT NEW FULL LIE-FLAT BUSINESS SEAT

Gradually installed on long-haul flights on a part of Boeing 777 fleet.

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