Diplomacy & Trade 2017 May

MAY 2017 HUF 1710

SEE

THE NORDIC COUNTRIES ARE WELL-KNOWN AS PIONEERS IN SUSTAINABLE DEVELOPMENT. IN A PREVIEW TO THE NORDIC GREEN LIGHT ENVIRONMENTAL SUSTAINABILITY BUSINESS FORUM IN BUDAPEST THIS MAY, DIPLOMACY&TRADE TALKED TO THE DEPUTY MINISTER AT THE MINISTRY OF FOREIGN AFFAIRS AND TRADE AS WELL AS THE AMBASSADORS OF THE NORDIC COUNTRIES ACCREDITED TO BUDAPEST.

Canada

FOCUS

pages 17-19

NORDIC GREEN LIGHT

kempi-diplomacy-127,5x86-201704:Layout 1

country

EUR 6

“During my tenure, I look forward to building on all that has been accomplished so far, including further strengthening our business ties,” the Ambassador of Canada to Hungary, Isabelle Poupart tells Diplomacy&Trade as her country marks the 150th anniversary of its Confederation. In an extensive interview, she also talks, among other issues, about how Canada is perceived in Hungary, the large Canadian diaspora population with Hungarian roots as well as the cooperation by the two countries on the international scene. see articles on pages 8-15

Wine for Diplomacy

4/25/17

11:56 AM

Page 1

Ten Rooms ‒ Kempinski Hotel Corvinus’ new events floor A brand new events area presenting the latest design and technology.

Not only has the space grown but also its creative opportunities ‒ made for infinite solutions. +361 429 3782 meetings.corvinus@kempinski.com kempinski.com/budapest

In order for the international promotion of high quality Hungarian wines, the Ministry of Foreign Affairs and Trade selected – in the framework of a tender – the list of wines that represent Hungary's wine culture at Hungary's foreign missions and at the reception of international delegations.

The 2017 selection is from eight regions. see page 31

977155898070017005 01 cover.indd 7

4/30/17 5:16 PM

02 applikacio.indd 30

4/30/17 3:53 PM

s

c.

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

03 duna elektroniak.indd 3

|

D I P L O M A C Y

&

T R A D E

|

F E B R U A R Y

2 0 1 5

3 4/30/17 3:54 PM

Transformation to a competitive ‘green’ and low-carbon economy is a major challenge for most countries, including Hungary. One good idea is learning from pros, in this case, the northern European countries that have been the forerunners of environmental sustainability for decades. The Nordic Green Light business forum this May in Budapest brings together companies, municipalities and other stakeholders to offer added value to the cooperation between the Nordic countries and Hungary.

As we go to press a dark cloud looms over whether or not President Trump will pull the US out of the Paris Agreement. Massive demonstrations filled the streets and surrounded the White House in opposition to any change of US policy. Stayed tuned.

The country in focus for this issue of Diplomacy&Trade is Canada that celebrates the 150th anniversary of the foundation of its Confederation this year. Our Focus features an interview with Ambassador Isabelle Poupart, covering a wide range of themes such as bilateral political and economic relations - including trade and investment with special regard to the Comprehensive Economic and Trade Agreement (CETA) - as well as cultural ties. We also have an interview with the Canadian Minister of International Trade and with the CEO of Linamar, a large Canadian firm founded by a Hungarian immigrant. Other topics covered include the activities of the Canadian Chamber of Commerce in Hungary, Air Canada expanding its capacity on the new Toronto-Budapest flight this year.

Our international analysis this month looks at the start of the Brexit negotiations and predicts ‘a long good-bye’, while the business pages feature the Hungarian Business Leaders Forums financial summit and a new type of business forum by the Italian Chamber of Commerce in Hungary.

This month’s WittyLeaks article is authored by the Ambassador of Moldova to Hungary, Oleg Tulea, on how he rediscovered Hungary during his tenure here.

Of course, we try to entice you with our culinary and program guides, restaurant offers and Society picture compilations.

Czech-Hungarian economic and trade page 20 relations

contents Ignite the Night: Kempinski Hotel Corvinus page 29 Budapest double anniversary

05 ON THE RECORD 06-07 COMPANY BRIEFS 08-15 CANADA FOCUS

Interview with Ambassador Isabelle Poupart; interview with the Canadian Minister of International Trade, François-Philippe Champagne; Budapest Airport; Canadian Chamber of Commerce in Hungary; Air Canada; Canadian hockey coach in Hungary; Linamar; Cirque de Soleil

17-19 NORDIC GREEN LIGHT

Minister of State László Szabó; the Ambassadors of Sweden, Finland, Norway, Denmark

20-21 CZECH REPUBLIC

Peter Freed PUBLISHER

AND DON’T FORGET

monthly in print - daily on the web

www.dteurope.com

Hungarian Business Leaders Forum page 22 financial summit

Interview with Commercial Counsellor Vladimír Randáček

22-23 BUSINESS

HBLF financial summit; Italian Chamber Business Forum

24 ANALYSIS

Brexit process on the way

25 WITTYLEAKS

by the Ambassador of

Moldova

26-27 WHAT’S ON

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

28 SOCIETY 29 HOSPITALITY

Kempinski hotels celebrate 120 years

30 GASTRONOMY

Rosalia Rosé festival; OTP Bank Gourmet Festival; Glamping 2017

31WINE

The unpronounceable grape; Lake Balaton regional marketing; Wine for diplomacy

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, Réka A. Francisck, Oleg Tulea PHOTO CONTRIBUTORS: 123RF.com (Cover), Pixabay.com, Shutterstock.com, 123RF.com, Jan Prerovsky, Landesmedienservice Burgenland, Dániel Végel,

AUSTRIAN FOCUS - COMING SOON

Ministry of Agriculture, Árpád Földházi/foldhazi.hu, Károly Árvai/kormany.hu, Hunent, Canadian Tourism Commission/Brand Canada Library, Budapest Airport, CCCH, László Mudra/Hungarian Ice Hockey Federation, Embassy of the Republic of Moldova, Mark Higashino, Zsolt Szigetváry, Árpád Pintér, Péter Kálló, Kriszta Falus, pixeltaster.com, Peter Freed, Anita Nagy, Róbert Hegedűs, Zsolt Burger/MFAT, British Embassy, Linamar Corporation, Jarid A. Barringer, Global Affairs Canada, Brenna Maher/LCCA, MTI Photos: Bea Kallos, Szilárd Koszticsák, Csaba Krizsán, Zoltán Balogh

In our June issue, Diplomacy&Trade will present a special Focus section on Austrian-Hungarian relations as the two countries celebrate the 150th anniversary of the Compromise that created the Austro-Hungarian Monarchy. Austria is Hungary’s second most important trading partner and one of its biggest investors. Our Focus will feature an interview with Ambassador Elizabeth Ellison-Kramer that will cover a wide range of themes from bilateral political and economic relations to tourism and cultural ties. The circumstances and historical implications of the Compromise of 1867 will be analyzed by Austrian and Hungarian professors and we also present the Center for Diplomacy and the Andrássy University in Budapest one of whose founders is Austria.

Copyright 2004-2017 Duax Kft., all rights reserved | ISSN 1589-8075 This magazine is produced by Duax Kft. The opinions published in the magazine do not necessarily reflect the opinions of Duax Kft.

4 04-05 letter, contents, promo, on the record.indd 4

NEWSSTAND PRICE: HUF 1,710 or EUR 6 - Subscriptions are available for an

annual fee of EUR 72 in Hungary, or EUR 90 to all other destinations. SEND REQUESTS AND INQUIRIES TO DUAX KFT. H-1034 Budapest, Bécsi út 60.

TELEPHONE [+36-70] 320-3051 | FAX [+36-1] 350-5660 E-MAIL editor@dteurope.com | ADVERTISING adsales@dteurope.com

We welcome inquires for advertising in this issue.

PLEASE CALL TAMÁS VARGA FOR FURTHER INFORMATION +36 209350250 - tvarga@budapestweek.com M A Y

2 0 1 7

|

D I P L O M A C Y

&

T R A D E

photos by

COPIES ARE AVAILABLE AT SELECTED RELAY AND INMEDIO OUTLETS IN MAJOR HUNGARIAN CITIES.

DÁVID HARANGOZÓ, JAN PREROVSKY, PIXABAY.COM

letter from the publisher

|

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

4/30/17 4:43 PM

on the record

MARCH OF THE LIVING

UPCOMING NATIONAL DAYS

Thousands of people took to the streets of Budapest on April 16 for the ‘March of the Living’ – an event to commemorate the 550,000 Hungarian Jews killed in the Holocaust. It was held on Hungary’s Holocaust Memorial Day, which marks the mass detention and deportation of Hungary’s Jews in 1944. This was the 15th year the march has been held.

The event began at the ‘Shoes on the Danube’ memorial, which honors people, mainly Budapest Jews, shot by Hungarian militiamen. They were ordered to take off their shoes and stand by the water before being shot so their bodies were carried away. Only their shoes remained. The memorial march continued across Chain Bridge to Clark Ádám Square on the Buda side. The aim of the event is to allow participants to pay their respects to victims of the Holocaust together regardless of their religious and political affiliation and to express their commitment to solidarity and democratic political culture.

Speakers warned of the dangers of rising anti-Semitism and stressed the importance of remembering and learning the lessons of the past. Hungarian Jewish writer Gábor Szántó pointed out that "no nation bears collective guilt for the past, but we all have a personal responsibility for the present and the future." Gábor Gordon, chairman of the board of the March of the Living Foundation, said this year Easter Sunday coincided with the 6th day of the Jewish Passover and Hungary’s Holocaust Memorial Day. For Christians, he said, this day is the celebration of resurrection and salvation. For Jews, it means liberation from slavery in Egypt, but it warns Christians and Jews alike of the dangers of discrimination, of the tiny, day-to-day, barely visible steps that constitute a process that could lead to irredeemable tragedy. The Israeli ambassador in Budapest, Yosef Amrani said the participants represent those who could not take part in the March of the Living, those who can no longer walk, those who lost their lives or were never even born. The ambassador emphasized the importance of remembrance, noting that it all began before Hungary’s first anti-Jewish law of 1938, with fear, hatred and prejudices. Near the end of the event, amateur runner Péter Hajdú began an eight-day run covering the 420 kilometers (260 miles) to Auschwitz, Poland. Many of Hungary's Jews who died during the Holocaust perished at the Nazi death camp in Auschwitz.

AUSTRIAN-HUNGARIAN CROSS-BORDER CONCEPT PRESENTED

GOOGLE DIGITAL WORKSHOP PROGRAM TO INCLUDE HUNGARIAN SME SECTOR

“Google is expanding its digital workshop program to include Hungarian small and medium-sized enterprises (SMEs), and plans to contact at least 15,000 SMEs this year to contribute to the development of their online skills via its online teaching platform and to provide personal advice and organizing conferences”, Director of Google Hungary Edina heal said at a press conference in Budapest.

According to the statement issued to the press, Google has developed a joint plan of events with the Hungarian Chamber of Commerce and Industry’s Modern Enterprises Program to ensure that as many enterprises as possible have access to its free training courses.

The statement also points out that based on an index assessing the digital economy and society’s level of digital competence, Hungary is currently in 21st place out of the European Union’s 28 member states. According to the index, Hungary has performed lowest within the field of business digitalization and e-commerce. This can be explained by the fact that Hungarian SMEs are still not fully using digital instruments. Only 12% of Hungarian SMEs currently do business online, and only 4.5% of these ship to other EU member states. According to Edina Heal, the expansion of Google’s digital workshop program is expected to improve this index.

She added that in addition to the digital development of SMEs, Google is also placing major emphasis on people who live in the most disadvantaged areas and on the occupants of children’s homes. Accordingly, in cooperation with the Foundation for Technological Education google.org has launched the so-called Code Club, which teaches children the basics of computer programing.

Managing Director of the Foundation for Technological Education, Zsófia Major explained with regard to the Club that teaching has begun in 8 children’s homes, 3 in Budapest and 5 in the metropolitan area, with the help of 13 trained teachers. The program is also providing the institutions with the required equipment, she added.

UNIVERSITY DIRECTORS CALL ON HUNGARIAN GOVERNMENT TO WITHDRAW 'LEX CEU'

photos by

BEA KALLOS/MTI, LANDESMEDIENSERVICE BURGENLAND, DÁNIEL VÉGEL, SZILÁRD KOSZTICSÁK/MTI

A concept regarding a cross-border Austrian-Hungarian railway network and road infrastructure development has been presented in Parndorf in Burgenland, the Austrian province bordering Hungary. The CrossBorder Rail development will be implemented within the framework of a project worth EUR 12.7 million. Thanks to this, journey times will be shortened, the safety of transport will improve, and the stations on the cross-border railway line between Neusiedl am See, Pamhagen (both in Austria) and Fertőszentmiklós will be refurbished. Six new road transport routes will also be built in the vicinity of the Austrian-Hungarian border.

According to Levente Magyar, State Secretary for Economic Diplomacy at the Ministry of Foreign Affairs and Trade, reports on the progress of specific works on the railway line between Neusiedl am See and Fertőszentmiklós, and the railway links between Oberwart, Austria and Szombathely, Hungary as well as between Jennersdorf, Austria and Szentgotthárd, Hungary are already in the preparatory phase. They are also working on two motorway connections to be completed by 2022, at the latest: on the one hand, on the construction of the motorway section leading from Sopron to Austria, and on the other, on the construction of the Rábafüzes border connecting section (on the Hungarian side) of the prospective M8 motorway. “It is perhaps most important for those living in villages directly by the border that the construction of six minor road connections may soon begin”, the State Secretary highlighted. After the presentation of the development, the State Secretary spoke about the smoothness and high standard of BurgenlandHungarian cooperation, and highlighted at the same time that Hans Niessl, Governor of Burgenland, never allowed the difficulties emerging in bilateral relations from time to time to affect the joint efforts. Hans Niessl described the cooperation as a uniquely successful regional initiative.

By the governor’s account, a feasibility study is being prepared regarding a railway development project between Szentgotthárd and Jennersdorf in South-Burgenland, and according to plans, the cross-border project will also be presented in Brussels in the second half of the year.

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

04-05 letter, contents, promo, on the record.indd 5

|

Directors of London School of Economics, Harvard University and University College London called on Hungarian Prime Minister Viktor Orbán’s government in a joint letter to reconsider and withdraw new legislation that would essentially mean the end of the operation of Central European University (CEU) in Hungary. This cabinet is the first European government that seeks to close a successful university for political reasons, they said. The law sets new conditions for foreign universities in Hungary, some of which seem aimed specifically at CEU. For example, it requires universities in Hungary also to have a campus in their home countries. The directors said in a letter published by The Financial Times

D I P L O M A C Y

&

T R A D E

|

M A Y

2 0 1 7

May

June

July

3

Poland

17

Norway

National day

25

Jordan

Independence day

National day

26

Georgia

National day

31

Republic of South Africa

Independence day

2

Italy

National day

5

Denmark

National day

6

Sweden

National day

10

Portugal

National day

11

Russia

National day

12

Philippines

National day

17

Iceland

National day

23

Luxembourg

National day

25

Slovenia

Independence day

25

Croatia

Independence day

1

Canada

National day

3

Belarus

National day

4

USA

Independence day

5

Algeria

Independence day

5

Venezuela

Independence day

9

Argentina

Independence day

13

Montenegro

National day

13

Egypt

National day

14

France

National day

21

Belgium

National day

26

Libya

National day

28

Peru

Independence day

FIRST DIRECT FREIGHT TRAIN FROM CHINA ARRIVES IN HUNGARY The first direct freight train between China and Hungary arrived in Budapest this April, carrying more than USD 1 million worth of clothing, electronics, toys and steel, the Hungarian news agency MTI reported. The 650-meter train, carrying 41 shipping containers, traveled more than 10,000 kilometers over 17 days, passing through Kazakhstan, Russia, Belarus, Poland and Slovakia before arriving at the Mahart Container Center terminal in the Port of Budapest. The heads of Mahart Container Center and logistics firm Ekol Hungary, which organized the delivery, marked the arrival of the train together with the Chinese Ambassador to Hungary Duan Jielong and Deputy State Secretary for Customs and International Affairs in the Hungarian Ministry for National Economy, Tamás Molnár. Preparations are underway to upgrade the rail line between Budapest and Belgrade, the capital of Serbia. The stretch is set to become part of a transport corridor for Chinese goods bound for Europe.

that the amendment of Hungary’s law on higher education sets conditions for non-EU higher education institutions which cannot be met: the act would require the CEU to establish a campus in the jurisdiction of New York State in an unfeasible timeframe; prevent it from delivering programs or awarding degrees accredited in both countries; prohibit it from operating under its current name; and force it to adopt rules that would endanger the freedom and autonomy of scientific research. The new law also demands that the U.S. federal government act as the negotiator to the Hungarian government, though higher education is a state competence and the U.S. government has no jurisdiction.

Although, the Hungarian government was defending the measure by saying that no institution is above the law in Hungary and so CEU must also comply with regulations, critics ponder that if CEU has not been compliant with local rules for years, why the government needed to create new legislation with the clear aim of making CEU non-compliant. The directors also argue that "the act directly and deliberately threatens the existence of the most accomplished and internationally acclaimed university in the country. We believe the closure of this distinguished private university would be an act of national self-harm by the government of Hungary, a tragedy for central and eastern Europe, and a blow to academic freedom and independence worldwide.”

5 4/30/17 4:43 PM

company briefs GOVERNMENT GRANT FOR MERCEDES VOCATIONAL TRAINING WORKSHOP

DIRECT AIR LINK BETWEEN KOSOVO AND HUNGARY

The American automotive parts producer Dana Incorporated broke ground in early April on its new uropean gear manufa turing fa ility in yőr, Hungary to support new business in the region. Production is planned to start in 2018. Founded in 1904, Dana employs approximately 27,000 people in 34 countries on six continents who are committed to delivering long-term value to customers.

Based in Maumee, Ohio, the company's operations were selected as a 2017 ‘Top Workplace’ in Northwest Ohio and Southeast Michigan. The company reported sales of more than USD 5.8 billion in 2016. The new 13,000 square-meter facility will provide customers in the region with access to Dana's advanced design, engineering and manufacturing expertise to support their sourcing initiatives and technology strategies. Dana will invest approximately EUR 46 million in the new state-of-theart factory, creating approximately 200 jobs by 2020, and will serve as a significant enabler to further satisfy the regional needs of Dana's global OEM partners. The facility will manufacture primary ring and pinion drive gearing for traditional banjo and beam axles, as well as all-wheel-drive systems. Full axle assembly on the site will be possible in the future. he new plant will ser e as the ompany s fourth operation in yőr. he de ision to develop another plant within the country was made possible by support of the Hungarian Government which awarded Dana, with the cooperation of Hungarian Investment Promotion Agency (HIPA), non-refundable cash grants and tax incentives whose amounts were not disclosed in HIPA’s statement at the groundbreaking ceremony. As the President of Dana Light Vehicle Driveline Technologies, Bob Pyle pointed out at the event, "we are excited to be building this new gear-manufacturing facility to support new business growth in Europe. This plant is strategically positioned in close proximity to our existing yőr operations and will enable us to deli er te hnologies to our uropean customers more quickly and cost effectively."

6 06-07 company briefs.indd 6

IBM DEVELOPMENT CENTER OPENS IN BUDAPEST The American multinational technology company IBM announced the opening of an IBM Budapest Lab dedicated to developing new technologies for IBM Cloud Video

to support the increasing demand for streaming video technology by companies across all industries.

A major focus will be collaborating with other IBM sites to infuse cognitive capabilities into IBM Cloud Video solutions to unlock data and insights from video. IBM estimates cloud-based video will be a USD 105 billion market by 2019.

Last year, IBM combined Watson (a question answering computer system capable of answering questions M A Y

2 0 1 7

|

|

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

D I P L O M A C Y

&

T R A D E

KÁROLY ÁRVAI/KORMANY.HU, HUNENT, DÁVID HARANGOZÓ, CSABA KRIZSÁN/MTI

posed in natural language) and other cognitive technologies with its cloud video solutions for new pilot services that automatically segment videos by understanding the content and provide near-instant feedback to livestreamed events by tracking sentiment on social media.

IBM also has used Watson’s capabilities to enhance video in a number of ways, from helping create a movie trailer to delivering closed-captioning in real time with subject-matter expertise. Watson

provided intelligent captioning to the US Open by learning tennis terminology and names to improve accuracy.

According to IBM Budapest Lab leader Gyula Fehér, “video is a fast-growing area in the cloud with companies across all industries using video to improve communications with employees and customers. Developers at the new IBM Budapest Lab already are working closely with other IBM researchers to use Watson and other cognitive technology to uncover new insights from video and provide new value to broadcasters and content owners.”

The IBM Budapest Lab expands on the work of the previous Ustream R&D Center in Hungary. IBM Budapest Lab offices will stay in the heart of Budapest on Andrassy Street where the Ustream R&D Center was located, and are being renovated and expanded to provide a high tech and inspirational workplace for IBM employees. IBM acquired Ustream in January 2016 and made it one of the pillars of the newly created IBM Cloud Video unit. IBM Cloud Video helps media companies and enterprises across a broad range of industries, including retail, automotive, technology, education, hospitality and healthcare, to stream live and recorded content through a global network.

DANA EXPANDS IN GYŐR WITH HIGH TECH GEAR FACILITY

photos by

Hungary’s Ministry of Foreign Affairs and Trade’s Minister of State for Economic Diplomacy, Levente Magyar held talks in Kosovo early this April. Among other topics, he addressed the launch of a direct air passenger route (BudapestPristina), operated by Wizz Air, a company that is headquartered in Hungary. The Minister of State said the direct air link was receiving financing from the Hungarian government and would provide twice-weekly services to Pristina and four other Balkan Peninsula destinations (Skopje, Macedonia; Podgorica, Montenegro; Tirana, Albania and Sarajevo, Bosnia and Herzegovina).

This development comes after Hungary’s Ministry of National Development enacted a public service obligation last year and announced a public procurement tender for operating the routes connecting Hungary with what the Ministry considers important economic routes in the region. Given the conditions laid down in the tender, Wizz Air was the only applicant for the bid and was eventually awarded the concessions for the government-subsidized operation of the five routes to the Balkans.

MINISTRY OF AGRICULTURE, CSABA KRIZSÁN/MTI, DÁVID HARANGOZÓ, ÁRPÁD FÖLDHÁZI/FOLDHAZI.HU, 123RF.COM

“Europe’s largest maize processing company is capable of producing higher added value products thanks to continuous development and technological modernization. This is in harmony with the Government’s and the Ministry’s vision that the Hungarian food sector should produce healthy, safe, natural, GMO-free and competitive products”, the Minister of Agriculture, Sándor Fazekas said at the foundation stone laying ceremony for Hungrana Ltd.’s latest biomass power plant in Szabadegyháza, southwest of Budapest.

At the professional conference held in conjunction with the ceremony, the Minister stressed that the company plans for the long term, as proven by the developments it realizes year after year. “In addition to development, protecting the environment is also important to us, and the company uses only Hungarian, GMO-free raw materials, produced bioethanol for motor vehicles and is also expanding the biomass boiler it inaugurated in 2012”, he added.

According to a statement by the Ministry of Agriculture, Hungrana’s existing biomass power plant burns 60,000 tons of hay and 12-15,000 tons of sunflower husk pellets annually, which provides two-thirds of its own steam and heat requirements. The latest HUF 1.5 bn (EUR 48 mn) investment will enable the company to produce 100% of its own steam and heat requirements.

The Minister highlighted the fact that in 1990, Hungrana only had the capacity to process 400 tons of maize, but by today has increased this capacity to 3,500 tons. The company’s market position has continuously improved and they are currently Europe’s largest maize processing company, while they have maintained a determining role in the Hungary food industry for over a hundred years. The Minister also spoke about the fact that - in harmony with the government’s vision - the company produced competitive and high quality food ingredients that are processed at a higher level of added value. Increasing the level of processing requires developments, which the Government supports using EU funding within the framework of Economic Development and Innovation Operative Program (GINOP) and Food Industry Operative Program (ÉLIP) tenders, he said.

photos by

NEW BIOMASS POWER PLANT TO BE BUILT IN HUNGARY

A decision by Minister for National Economy Mihály Varga allows Mercedes Benz Manufacturing Hungary Ltd. to receive HUF 600 million (EUR 1.9 million) from the state budget to be spent on a new vocational training workshop. The project aims to increase the number of apprentices and thus adapt to the needs of the local labor market.

A statement by the Ministry for National Economy highlights that secondary and tertiary level dual vocational education models are the most efficient systems for training skilled labor forces. Under this program, young people obtain theoretical knowledge at secondary and tertiary education institutions, while practical skills are acquired at participating companies.

As a result, those who obtain a school certificate already have adequate skills and are ready to be employed. The state offers tax incentives and direct grants for enterprises which endeavor to participate in practical training. A key condition for receiving a grant for building and operating a secondary-level dual training workshop by a ministerial decision on an individual basis is that the number of contracted apprentices is increased by at least 50. Through this incentive, a company may receive on average as much as EUR 8,000 per trainee, or up to EUR 2 million to build and fully equip a workshop, provided it has own funds correspond to a minimum of 27% of the grant, and it commits to maintaining staff and operating the workshop for (at least) five years. The costs related to the maintenance of the facility and apprentice training may be also partially financed through a number of tax incentives.

4/30/17 3:54 PM

company briefs FOOD INDUSTRY INVESTMENT IN MÉLYKÚT

photos by

KÁROLY ÁRVAI/KORMANY.HU, HUNENT, DÁVID HARANGOZÓ, CSABA KRIZSÁN/MTI

INAUGURATION OF THE APOLLO TYRES FACTORY Apollo Tyres Chairman Onkar S Kanwar and Hungarian Prime Minister Viktor Orbán inaugurated Apollo Tyres' 6th global tire manufacturing unit in Gyöngyöshalász, east of Budapest, which is the first greenfield investment of the company outside India. The EUR 475 million investment aims to strengthen the European presence of the company to become a TIER1 supplier of the main European OEMs. The Hungarian Investment Promotion Agency (HIPA) provided their comprehensive project-management services for the company to foster the positive investment decision for Hungary.

Apollo Tyres Ltd, headquartered in Gurgaon, India, has been in the business of manufacture and sale of tires for 40 years. The company has six manufacturing units in India, in the Netherlands and now in Hungary, and exports to over 100 countries. Powered by its key brands Apollo and Vredestein, the company offers a comprehensive product portfolio of truck-bus, off highway, to bicycle tires. At the end of its financial year in 2015, Apollo Tyres reached a turnover of USD 2 billion, backed by a global workforce of approximately 16,000 employees.

The Gyöngyöshalász plant, located less than 100 kms from Budapest, is Apollo Tyres' first greenfield facility outside India, which reflects well on the company's growth aspirations and manufacturing capabilities, showcasing some of the best practices available across the globe in tire manufacturing. A highly automated plant with use of IT-driven systems and robotics, it employs young and skilled associates, mostly hired from the region.

The new unit whose construction began in April 2015, is built on a site of over 72 hectares. The full capacity at the end of Phase I will be 5.5 million passenger car & light truck (PCLT) tires and 675,000 commercial vehicle tires. The Hungarian facility will complement Apollo Tyres' existing unit in the Netherlands and will produce both Apollo and Vredestein brand tires for the European market.

"With this inauguration today of our Hungary greenfield facility, we have crossed another milestone in our global growth journey. This facility will help us further increase our presence and market share in Europe. From being a replacement market focused company in Europe, we would soon be starting supplies of our tires to all the leading OEMs in Europe," Apollo Tyres Chairman Onkar S. Kanwar stressed in his inauguration speech.

The Prime Minister described the Gyöngyöshalász project as one of the world’s most modern investments, to the highest standards, “and we may be equally proud of both its spirit and its quality.” w w w . d t e u r o p e . c o m

06-07 company briefs.indd 7

|

Hunent Co. Ltd is building a new waterfowl processing plant in the Bács-Kiskun County town of Mélykút with an investment of some HUF 12.5 billion forints (EUR 40 million) and the creation of 350 new jobs.

The Hungarian government is providing HUF 4.4 billion (nearly EUR 12M) towards the state-of-the-art greenfield investment project.

According to Minister of Foreign Affairs and Trade Péter Szijjártó, the international food market is also becoming increasingly competitive, and Hungary’s size means that maintaining its international competitiveness requires the realization of a well-focused strategy that concentrates on premium quality products.

“This investment will also contribute to enabling the Hungarian food industry to remain on a growth trajectory, without which the sector’s competitiveness would fall and others would take over the markets it has already gained”,

he pointed out. “Similarly to the automotive industry, there is also a technological race going on within the food industry and continuous development is required to maintain competitiveness”, the Minister highlighted.

Chairman of the Board at Hunent, István Kiss told reporters that the company was establishing a plant that was unique in Europe in view of the fact that very few duck slaughterhouses and processing plants exist with such a high capacity and level of technological development.

The first phase, scheduled for completion in December,

2018 will include, amongst others, the construction of the new slaughterhouse hall with a live animal receiving hall, a biological wastewater purifier and a large capacity automated cold storage unit, he explained. “The investment is expected to increase annual turnover in excess of HUF 20 billion (EUR 65mn), meaning the company will become a market leader not only in Hungary, but also in the major international markets”, he continued.

According to the Chairman, closed live animal production capacities must be increased to prevent the spread of bird flu, on which the company will be placing major emphasis.

He said that ducks represent the company’s main profile, but that it also deals in geese. 80% of the company’s turnover is derived from exports, especially to Germany, but it also ships its products to Canada and Asia. He added that the main reason for the new project is that existing production capacities have currently reached their maximum and the markets for duck have expanded according to the experience of recent years. According to the latest available public company data, Hunent achieved total sales turnover of HUF 9.23 billion in 2015, about the same as in in the previous year.

The company posted after tax profits of HUF 104 million in 2015, following 51.9 million in 2014.

RECORD YEAR AT OBERBANK AG

Pre-tax profit rose by 14.4% to EUR 219.1 million, while after tax profit grew by 8.9% to EUR 181.3 million at Oberbank AG last year, surpassing all expectations. The 2016 results of the financial institution with Austrian background were announced at a press conference, in April by CEO Franz Gasselsberger. He stressed that it was the seventh consecutive year in which results were better than the corresponding financial

year forecasts despite the economic circumstances not always turning out as expected. The CEO added that all branches contributed to the great results. The operating interest rate was very good despite ECB's zero interest rate policy and improved by 2.9% to EUR 308.3 million due to the significant rise in credit volume. Despite the above-average credit growth, the credit risk remained particularly favorable. The service business was

stable overall, with commissions reaching close to the previous year's level at EUR 131 million. He highlighted that Oberbank’s success is inextricably linked to its expansion strategy; the number of branches and the profit development correlate positively. In 2016, the expansion continued with six branch offices (three in Germany, two in the Austrian capital Vienna and one in Nagykanizsa, SW Hungary), thus, at the end of 2016, Oberbank had 159 branches altogether, including nine in Hungary.

The CEO-President proudly pointed out that the outstanding development of the bank is also reflected in its share value, which grew significantly in 2016, and in the bank’s stock market value, which has tripled in ten years. The price of the ordinary share rose to the historical high price of EUR 60.3, while that of the preferential share to EUR 52.5. At the end of 2016, Oberbank’s stock market capitalization amounted to EUR 2.105.6 million.

Péter Szenkurök, the head of the Hungarian branch announced that according to the bank’s forecast to 2020, a 15-20-member branch network is planned to cover all major economic centers in Hungary. This year, they are examining the possibility of opening branches in Miskolc, Pécs, Budapest and later more of them in Tatabánya, Nyíregyháza and Budapest.

ELECTRIC BUS FACTORY OPENED IN KOMÁROM BYD, the fastest growing supplier of pure electric buses to cities across Europe, inaugurated its EUR 20 million factory in the town of Komárom, west of Budapest. The new plant – boasting its own R&D Center and battery test facility – will eventually employ up to 300 people and be capable of assembling up to 400 vehicles a year. The Hungarian Investment Promotion Agency (HIPA) provided comprehensive project management services to the company.

BYD Company Ltd. is one of China's largest companies to have successfully expanded globally with operations in over 50 countries and regions.

Specializing in rechargeable battery technologies, their green mission to ‘solve the whole problem’ has made them industry pioneers and leaders in several high-tech sectors including high-efficiency automobiles, electrified public transportation, environmentally-friendly energy storage, affordable solar power and information technology and original design manufacturing (ODM) services.

Initial output in Komárom will be BYD's world

D I P L O M A C Y

&

T R A D E

|

M A Y

2 0 1 7

winning range of emissions free electric buses and fork lift trucks. The new Hungarian plant consists of five buildings: a main office, a battery test and maintenance center, an inspection line and water leak test booth, a bus and truck assembly hall, and a paint shop.

The Hungary plant will produce bus chassis for the UK where BYD has had a partnership for two years with the leading British bus maker Alexander Dennis that, in due course, will receive chassis built in Komárom on which to build their single and double deck bus bodies to complete joint BYD-ADL buses.

According to Isbrand Ho, Managing Director of BYD Europe, BYD chose Hungary and Komárom for its new factory "firstly, because of its central location and its long tradition of engineering excellence, but also because we are very conscious of the strong heritage of bus making in this immediate area. In a former era, factories, in Hungary, not far from here, built thousands of buses every year. Now the Hungarian government is trying to re-establish that industry and we are proud to be at the forefront of that movement." .

7 4/30/17 3:54 PM

INTERESTS AND VALUES

multiculturalism as our official policy in 1971, we affirmed the value and dignity of all Canadian citizens, regardless of their racial or ethnic origins, their language or their religious affiliation, while confirming the rights of Aboriginal people and the status of Canada’s two official languages, English and French. Enjoying equal rights, however, also brings equal responsibilities, including when it comes to upholding democratic values and the rule of law. Canada’s success as a diverse and inclusive nation did not happen overnight; it required strong, continual effort and political will, but it proves that diversity and inclusion can offer a path to peace and prosperity.”

INTERVIEW WITH ISABELLE POUPART, CANADIAN AMBASSADOR TO HUNGARY

8 08-09 canada ambassador.indd 8

enhanced partnership in the field of water management, building on Hungary’s leadership as host of the Budapest Water Summit. As you can see, my work is cut out for me during the coming years.”

Canada 150 2017 marks the 150th anniversary of the Confederation of Canada. As to what it means to be Canadian today, Ambassador Poupart quotes a few words that have been used by many Hungarians she has met since taking up her current assignment last August. "To them, being Canadian means being open, inclusive, progressive, and hard-working. I can only agree. Our Prime Minister Justin Trudeau often says that as Canadians, we are strong not in spite of our differences but because of them. What is striking about today’s Canada is how diverse a society it has become, with multiculturalism at its core. When we adopted M A Y

2 0 1 7

|

D I P L O M A C Y

People to people Canada and Hungary recently celebrated the 50th anniversary of diplomatic relations. In this regard, Ambassador Poupart highlights that “underpinning our diplomatic relations is Canada’s large, dynamic Hungarian diaspora, which has been present in Canada since the 19th century, contributing to the economic, social, political and cultural vitality of our country. Today, more than 325,000 Canadians proudly claim to have Hungarian roots. This has created strong people-to-people ties." She notes

&

T R A D E

|

DÁVID HARANGOZÓ

“It is a great honor for me to be here in Budapest to head the Embassy of Canada to Hungary, which is also accredited to Slovenia and Bosnia and Herzegovina. As Ambassador, my two main objectives, broadly speaking, are to promote Canadian interests and to project Canadian values,” Ambassador Poupart tells Diplomacy&Trade. She adds that her ongoing work in support of the CETA ratification process neatly combines these two objectives “as my team and I implement the Government of Canada’s progressive trade agenda. But as we celebrate the 150th anniversary of Canadian Confederation, my work also reflects the four broad themes of this important milestone: diversity and inclusion, reconciliation from nation to nation with Indigenous people, the environment, and youth.

When it comes to my activities in Hungary, this

has translated into a number of discussions about Canada at high-schools and universities throughout Hungary, which have always yielded very receptive comments and interest.”

She mentions that she has been a regular visitor to the CEU recently as a sign of support for this forward-looking and high-quality institution.

In addition to Hungarian senior officials and government representatives, she is in regular contact with a broad range of civil society stakeholders, notably valiant NGO representatives and dynamic members of the cultural scene.

“Engagement with the media and with the general public, notably through social media (@AmbPoupart), is also part and parcel of my work”. She also stresses the importance of the environment. “I am committed to promoting greater cooperation between Canada and Hungary in that area, either through the Regional Environmental Center in Szentendre or through

photo by

BY SÁNDOR LACZKÓ

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

4/30/17 3:55 PM

canada focus SOLID AND LONG LASTING ECONOMIC RELATIONS According to Ambassador Poupart, economic relations between Canada and Hungary are solid and long lasting. In 2016, bilateral merchandise trade between Canada and Hungary totaled CAD 680 million. Canada exported over CAD 75 million worth of goods to Hungary and imported goods from Hungary worth over CAD 605 million. Trade in services, although difficult to quantify, is also an important component of our bilateral relationship. She expects that enforcement of the Comprehensive Economic and Trade Agreement (CETA) will have a positive impact on the level of trade between the two countries. Canadian companies exporting to Hungary are active in several sectors, including communications, power transmission equipment manufacturing, transportation, information and communications technology (ICT), agriculture, oil and gas, and automotive. “These are priority sectors for the Embassy. In 2017, we are also targeting opportunities in defense procurement, education links and clean technologies where Canada has competitive advantages and a lot to offer Hungary. The Canadian Trade Commissioner Service (TCS) works diligently to improve Canada’s economic and trade relations with Hungary, closely cooperating with a broad

DÁVID HARANGOZÓ

CANADIAN TOURISM COMMISSION/BRAND CANADA LIBRARY

photo by

photos by

that "since I arrived in Hungary, I have met so many Hungarians who have told me about visiting family members, studying or doing business in Canada, always with a lot of enthusiasm. This is truly rewarding. But I would be remiss if I forgot to mention the fact that Canada provided a safe haven for tens of thousands of Hungarians fleeing the devastation of the two World Wars as well as the Soviet suppression of the 1956 Hungarian Revolution. These tragic events have deepened our countries’ commitment to freedom and democracy.

Of note, in 1999, Canada was the first Ally to ratify Hungary’s accession protocol to NATO, which I remember fondly as I was a junior officer at the Canadian Delegation to NATO at the time.”

The two countries have since partnered on many peace support operations around the world, notably in Afghanistan and now in Iraq. Canadians and Hungarians also monitor the situation in eastern Ukraine side-by-side as part of the OSCE Special Monitoring Mission to Ukraine.

The Ambassador notes from a trade relations point of view that Hungary is now a major destination for Canadian foreign direct investment. “During my tenure, I look forward to building on all that has been accomplished so far, including by further strengthening our business ties as Canadian and Hungarian companies take advantage of the benefits they will derive from CETA’s provisional application.”

range of partners in Canada, including Export Development Canada, and in Hungary. An integral component of the Embassy, the TCS assists Canadian companies to access the Hungarian market by providing information on local market conditions and opportunities, and identifying key Hungarian contacts that Canadians seeking to do business here need to know,” she stresses.

To illustrate the importance of the Hungarian market as a destination for Canadian investors, the Ambassador says, it is only necessary to look at the numbers. In 2015, Hungary ranked as the 18th largest recipient of Canadian investment globally and 5th in the European Union at CAD 7.86 billion. Leading Canadian investors in Hungary include Linamar Corporation (automotive), Bombardier Transportation (railway carriages), Magna International (automotive) and Molson Coors (brewery). Vermillion Energy of Calgary is active in oil and gas exploration and Semex (agriculture) has operations in the South of Hungary. The magnificent Gresham Palace Hotel – to the Ambassador’s knowledge, the only hotel in Budapest in front of which flies the Canadian flag – is managed by the Four Seasons Group, a leading international luxury hotel chain, while the expanding Budapest Airport is owned by Canadian investors. She highlights that “clearly, each investor has its own reasons for investing in a particular market, but when

it comes to Hungary, the benefits most often mentioned are its central geographic location at the heart of Europe and its developing infrastructure. Early Canadian investors have also indicated that they have established a presence in Hungary because of its highly skilled labor force, although, it must be recognized that this has become a more challenging issue of late due to shortages in some employment categories.

From a Canadian perspective, it is also important to maintain a general environment conducive to foreign investments.”

CETA The Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union was signed in October last year. The Ambassador explains that “CETA is the most ambitious and progressive trade agreement Canada and the EU have ever negotiated and we are looking forward to its provisional application later this year.

The progressive trade agenda is one that advances higher standards of living, fosters sustainable and inclusive economic growth, more effectively promotes labor rights, results in stronger environmental protections, and emphasizes consultation with and economic opportunities for all segments of society. When CETA enters into provisional

dynamic chapter between Canada, the European Union and its member states, underpinned by our shared commitment to progressive trade and common principles and values. In the case of Canada and Hungary, this is exemplified by the regular political consultations that take place between our senior officials, the most recent of which focused on democracy and human rights, taking advantage of the high responsibilities Hungary is entrusted with during its tenure on the UN Human Rights Council,” Ambassador Poupart points out.

Political relations

Cultural ties

Canada and Hungary enjoy strong relations and work together in a number of international organizations, including the UN, NATO and the OSCE. “Last October, we were honored that Hungary’s Minister of Foreign Affairs and Trade, His Excellency Péter Szijjártó, visited Canada to mark the 60th anniversary of the Hungarian Revolution. This is a testament to the strength of our relationship and to our mutual

Ambassador Poupart is of the view that culture has an important role to play in the promotion of foreign policy, and that it is always a great source of pride for her to see Canadian performers and artists in Hungary. "Recently, the Embassy partnered with the Semaine du Film francophone and with the Titanic Film Festival to present respectively ‘Just the end of the World’ by Xavier Dolan and ‘Bird on a Wire’, the famous 1972 Leonard Cohen concert-movie by Tony Parker. As part of the month of the Francophonie and in celebration of Canada’s 150th anniversary, we also hosted a day-long “Cabane à sucre” event with the Café Dumas at the French Institute, where our Hungarian guests could taste various maple syrup specialties and even ‘poutine’. A few weeks ago, I saw my first play in Hungarian at the Radnóti Theater, Futót z a wonderful rendition of the award winning play by Canadian-Lebanese writer Wajdi Mouawad. Knowing Hungary’s great circus tradition, I would recommend everyone to check out Varekai

by Le Cirque du Soleil in Budapest in mid-May. To discover emerging Canadian performing artists, one should definitively head to this year’s Sziget Festival,” she points out. Through innovative public diplomacy activities, such as a Canadian Skating Night at the City Park ice rink, we are also trying to project

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

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

08-09 canada ambassador.indd 9

|

interest in bringing it forward. Hungary is also an important partner for Canada within the EU. In March, Hungary ratified the Canada-EU Strategic Partnership Agreement (SPA). Taken together with CETA, this agreement marks the beginning of a new, HUNGARY

CANADA

93,028 sq km 110 9,874,784 (July 2016 est.)

91 -0.24% (2016 est.)

216 9.1 births/1,000 population (2016 est.)

207 75.9 years 92 1.3 migrant(s)/1,000 population (2016 est.)

57 $26,200 (2015 est.)

70 6.8% (2015 est.)

79 11.786 million 76 41 (2013) 104

9,984,670 sq km 2 35,362,905 (July 2016 est.)

39 0.74% (2016 est.)

146 10.3 births/1,000 population 192 81.9 years 19 5.7 migrant(s)/1,000 population 20 $46,200 (2016 est.)

32 7.1% (2016 est.)

83 29.39 million 44 1,467 (2013) 4

D I P L O M A C Y

&

T R A D E

|

M A Y

2 0 1 7

application, approximately 98% of all tariffs on manufactured goods will be eliminated, and there will be significant new opportunities for Canadian and Hungarian businesses in both the services and government procurement areas.

Concretely, this means that tariffs will be eliminated on virtually all of Hungary’s exports to Canada, including automotive products which currently face Canadian tariffs of up to 6.1%. This is very important for companies such as Linamar. Similarly, tariffs will be eliminated for ICT and electronic products (current Canadian tariffs of up to 6.5%) and on key agri-food products such as apple juice (current Canadian tariffs of up to 8.5%) and wine (current Canadian tariffs of up to 4.68 cents/liter). How could there be a better time to invest in our bilateral trade relationship, building on the strong peopleto-people ties I have already alluded to? In this context, I am delighted by Air Canada’s decision to expand its capacity on the new Toronto-Budapest route, which is the only direct flight between Hungary and North America – with a wide range of connections at both ends. It will boost both business and tourism, with more and more Canadians discovering Hungary and its neighboring countries through a relaxing cruise on the Danube.”

the Canadian identity through what most people associate with Canada: our love of winter and the sports that come with it. Last fall, I had the pleasure to present the prize for Best Canadian Player of the evening following a well-disputed Canada-Hungary hockey game (which, I might add, we ended up winning, but only after Hungary scored first!).”

As to what impressions she has had over this short period of time in Hungary, Ambassador Poupart says that “my husband, our five-year old daughter and I are very happy in Budapest with our Hungarian teckel ‘Borshika’. Our current favorite place has to be the Budapest Zoo. We also had a wonderful time at the City Park ice rink, which we visited several times during the winter. Our family excursions have taken us so far to Szentendre in luding the Skanzen , sztergom and d llő.

With the arrival of spring, we look forward to discovering many other places in Hungary, building on the wonderful Easter week-end we spent in the oka region, where needless to say sampled many delicious Hungarian wines.”

Follow the Embassy of Canada on Twitter @CanadaHungary (English) and @CanadaHongrie (French)

9 4/30/17 3:55 PM

canada focus

A GLOBAL ECONOMIC PARTNER CANADA IS A STRONG SUPPORTER OF PROGRESSIVE FREE TRADE Canada celebrates the 150th anniversary of Confederation this year. It has become a successful country over these one and half centuries. As to how much international trade has contributed to this success, the Canadian Minister of International Trade, François-Philippe Champagne explains to Diplomacy&Trade that “from its humble beginnings in 1894 with the posting of the first Trade Commissioner to Australia, Canada’s international trade role has evolved and grown tremendously over the years. The Canadian Trade Commissioner Service (TCS), which provides advice to businesses looking to reach new heights on the global scale, is now a network of over 900 Trade Commissioners located in every province in Canada and in over 160 locations around the world, including Hungary. Canada’s TCS currently serves close to 16,000 Canadian businesses looking to export, partner or invest abroad. The TCS also helps companies looking to make Canada their next investment destination.”

He adds that more broadly, Canada has made great strides to promote progressive trading relationships, which support the global economy and jobs in Canada. These relationships are reflected in Canada’s Free Trade Agreements, Foreign Investment Promotion and Protection Agreements and other multilateral agreements and initiatives.

“As Canada celebrates 150 years since Confederation this year, our country marks its long history of working with global partners to promote peaceful pluralism; to protect human rights; to promote gender equality; and to engage with international institutions to support a democratic society that upholds middle class values,” the Minister points out.

chains. It will give professionals and service providers unparalleled prospects to work and do business in each other’s markets. It will also mean more trade between Canada and the EU; which means more growth. And, more growth means more good-paying jobs that will benefit all of our citizens. The agreement will help grow our economies while upholding our high standards in areas like food safety, environmental protection and workers’ rights.

CETA also protects the role of public services and the sovereign right of governments to regulate in the interest of their citizens.”

He adds that in the context of today’s global environment, it’s important to note that CETA is not only about economic advantages. “It also reflects and promotes the progressive values shared by Canadians and Europeans.

This in itself sends an important message to the world that Canada and the EU reject protectionism, and that trade and shared prosperity are the best way forward for our citizens. With CETA, Canada and the EU are setting the global gold standard for trade agreements of the 21st century.”

When asked whether the US government’s withdrawal from the Trans-Pacific Partnership (TPP) trade deal is a loss or an opportunity for Canada, Minister Champagne stresses that Canada is a strong supporter of progressive free trade and the Asia Pacific remains an important region and a priority market. “I firmly believe in the importance of regional and multilateral trade agreements and am considering how to best advance Canada’s trade policy objectives in the Asia

Hungary. Minister Champagne stresses that when it comes to Hungary, Canadian investors cite the benefits of its stable business and regulatory environment, its skilled workforce, its developing infrastructure as well as its central geographic location at the heart of Europe.

Apart from economic ties, the Minister finds it important to note that Canada is a proud defender of human rights around the world. “We value academic freedom as a fundamental aspect of any well-functioning democracy and as an engine to social and economic development. This is why Canada’s Foreign Affairs Minister has personally raised Canada’s concerns regarding the future of the Central European University (CEU) with her Hungarian counterpart. Through our embassy in Budapest, we remain actively engaged with the Government of Hungary, the CEU, and international partners. We are closely following the situation,” he concludes.

Pacific region, including with Trans-Pacific Partnership countries. In fact, last March, Asia-Pacific Ministers instructed senior trade officials to consider potential paths forward to enhance and strengthen free and fair trade throughout the Asia Pacific region and report back to Ministers at APEC in Vietnam in May. Canada offered to host this meeting of senior officials in Toronto, Canada in May. Therefore, stay tuned,” he says.

Canada and Hungary François-Philippe Champagne expresses appreciation for Hungary and, more specifically, Minister Péter Szijjártó's long-standing support for CETA and highlighted Canada and Hungary's robust trading relationship that revolves around key sectors including automotive products, transportation equipment, electrical and electronic products, scientific and precision equipment, as well as agricultural products.

“I expect that the Canada-EU Comprehensive Economic and Trade Agreement will open up additional opportunities in both markets. As the agreement is implemented and current tariffs are eliminated, Hungarian exports to Canada such as automotive products, IT products or apple juice, for instance, will all become more competitive in Canada.

Hungary will also enjoy recognition of two geographical indications for delicious Hungarian salamis. And, as Hungary seeks more diversified sources of energy products, it could turn to Canada as a viable option.”

Canadian businesses, such as Linamar Corporation, are important investors in

CANADA 150: PAST, PRESENT AND A VISION OF FUTURE

CANADA'S INVESTMENT ATTRACTIVENESS

CETA

10 10 kulker miniszter.indd 10

photos by

GLOBAL AFFAIRS CANADA, BRENNA MAHER/LCCA

The Canada–EU Comprehensive Economic and Trade Agreement (CETA) was signed last fall, and it awaits ratification by EU Member States, as well as Canada. Until the ratification process is completed, CETA will be provisionally applied (likely from June onward) with very few exceptions, including provisions on investment dispute resolution. Latvia was the first EU country to ratify CETA in February 2017, with a number of other parliaments in EU countries expected to ratify CETA later this year. According to Minister Champagne, CETA – as one of Canada’s most ambitious trade initiatives – sets new standards in the trade in goods and services, non-tariff barriers and investments, and it also has the merits of being of mutual benefit to countries on both sides of the Atlantic. “CETA will open new markets in the European Union for Canada’s exporters and create opportunities for European businesses looking to increase their exports to Canada; a top-10 global economy with access to the vast North American market and value M A Y

2 0 1 7

|

D I P L O M A C Y

&

T R A D E

|

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

4/30/17 3:56 PM

s

c.

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

bud_hirdetes_280x360mm_3mm_kifuto.indd 1 11 budapest airport.indd 3

|

D I P L O M A C Y

&

T R A D E

|

F E B R U A R Y

2 0 1 5

3 2017.04.26. 15:17:26 4/30/17 3:56 PM

canada focus

GATEWAY TO HUNGARY MAJOR DEVELOPMENTS UNDER WAY AT BUDAPEST AIRPORT

“Budapest Airport is located in the heart of Central Europe with huge development potential for the decades to come. Our airport is within a maximum of 2-3 hours of flight time from any point in Europe which makes Hungary an excellent destination for business, leisure, and citybreak passengers as well as cargo business.

The airport with its 1,515 hectares of land and its perfect dual runway system will provide an excellent base to accommodate all these growth perspectives,” the CEO of Budapest Airport, Jost Lammers explains to Diplomacy&Trade.

Majority ownership in Budapest Airport belongs to two Canadian long-term investors, Public Sector Pension Fund (PSP Investments) and Caisse de Depot et Placement du Quebec. “Both of our Canadian investors with their know-how and experience in long-term and sustainable infrastructure project developments are a key element for the airport’s success,” the CEO adds.

12 12 bud airport.indd 12

400-600 new jobs to the airport. We have started preparations to build a new 11,000 m2 Cargo City for dedicated cargo operators near Terminal 2. And with an eye on the dynamics of our passenger traffic growth, around 2019 we will have to start preparations for the construction of another terminal building.”

Recognitions There are quite a number of awards and recognitions that Budapest Airport has won lately and the CEO is “proud of each of them since these were achieved by our hard working people at the airport, all those colleagues who regularly get up at 3 a.m. in the morning in order to man the passenger security lanes for the six-o’clock flights or those who spend Christmas or Easter at the airport on duty instead of being home with their families.

I think our latest recognition, the Skytrax ’Best Airport in Eastern Europe 2017’ award which we won for the fourth time in a row, is a truly outstanding achievement. No other airport in the region has accomplished this.

It is especially valuable since this award is based on thousands of anonymous passenger

interviews which we cannot influence in any other way than producing high service levels throughout the whole airport experience.”

He also mentions the ’Investors in People’ title as the Hungarian capital’s is the first continental airport in Europe that has achieved this award. The CEO is of the opinion that this title speaks to a large extent for itself, since it goes to companies that share their business goals with their own employees, involve them in achieving those goals, and do a lot to develop their staff, especially the young and talented, into future managers of the company.

service as a great advantage both for Hungary and the airport. This year, the second year of operation, the number of weekly flights will go up to six per week during the peak summer season. “This alone speaks of the success of the Toronto-Budapest service, and of course Hungarian travelers may also benefit from the great transfer opportunities at Toronto airport both to other attractive Canadian destinations and to destinations in the USA and the Caribbean.

I hope sooner or later we will have a regular all-year-around direct connection between Toronto and Budapest,” Jost Lammers says.

Regional role

Social responsibility

“We continue to pursue our goal to be the best airport in the region in terms of growth rates, financial performance and service quality. Budapest and Hungary has a great development potential, tourists are arriving in great numbers to the capital and Lake Balaton, to hot water spas, restaurants, museums and other attractions. Also, we see a lot of great sports and cultural events in this country, let me just mention here the 2017 World Aquatics Championship to be held in Hungary this summer.

There are also the ‘regular’ mass attractions like the Formula One Hungarian Grand Prix and the Red Bull Air Race and, of course, the Sziget Festival – all of these are attracting tens of thousands of foreign visitors, and many of them arrive and leave via our airport. Budapest and Hungary is a great choice for every kind of foreign guest from the low-budget young backpacker to the well-to-do businessman. And here, I must also point out that this is a very safe country with excellent infrastructure,” the CEO highlights.

As regards CSR activities, the Budapest Airport CEO says they do a lot of things in this area and try to run both global and local initiatives at the same time. “A good example of the first is our airport carbon accreditation program under which we first mapped and now started to reduce the so-called carbon footprint of airport operations. Under this initiative, we have a long list of actions and investments like using solar panels to produce hot water on the rooftop of our Terminal 1 office complex, installing e-chargers for electric cars, involving other airport partners to join our green initiatives, and many more.

As far as local CSR is concerned, we do a lot to balance the benefits and the environmental impact of airport operation for the neighboring communities, we support local schools with computer systems, we support local sports clubs, and together with the local communities we help to develop sport facilities for young people. We also have an annual charity sport event: this year, we will organize the 5th Runway Run, an international running race for the aviation industry, and from the proceeds we will support children cancer funds and sport facilities for disabled people.”

Air Canada Rouge Air Canada is increasing the frequency of its flights between Budapest and Toronto.

Budapest Airport sees the Air Canada Rouge M A Y

2 0 1 7

|

D I P L O M A C Y

&

T R A D E

|

photos by

There are quite a number of developments going on at the airport this spring under the umbrella of the BUD 2020 development campaign. “Budapest Airport has already invested well over EUR 400 million into this airport over the last 10 years, including SkyCourt, our state-of-the-art central terminal building. Now, we have commenced implementation of a five-year investment program called BUD 2020 which earmarks around EUR 160 million of capital expenditure between 2016 and 2020,” the CEO highlights.

One cannot imagine a modern airport without construction cranes or fencing – these are all signs of healthy development even if they may cause some temporary inconvenience to passengers. The CEO points out that “these days, cranes working on our new hotel right next to Terminal 2B, just within walking distance. It is being developed jointly with the Hungarian firm WING Co. Ltd and will be completed by the end of the year under the brand name of ‘ibis Styles Budapest Airport Hotel’ with 145 rooms.”

There is another major construction effort on the other side of the terminal: a new 10,000 m2 pier is being built for passengers with ten contact gates which will be able to service up to three wide-body long-haul jets at the same time, plus four narrow-body aircraft. Altogether, there will be 27 different boarding options for passengers depending on their airline and their mode of operation.

“Parallel to the construction of Pier B, we are progressing the reconstruction of the touch down zone of our Runway 1. This 900-meter section of the runway will be totally refurbished for improved flight safety by mid-June. Furthermore, about a thousand additional parking spaces in convenient walking distance from the terminal will be handed over before summer,” Jost Lammers explains.

He adds that “we will hand over two major logistics bases for our partners DHL Express and TNT this summer near Terminal 1. This will vastly improve their service level, reducing their response times, and will bring another

BUDAPEST AIRPORT

Development projects

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

4/30/17 3:57 PM

canada focus

TAKING CANADIAN VALUES AT HEART BUSINESSES SHOULD BE REASSURED OF A SAFE AND PREDICTABLE ENVIRONMENT

The Canadian Chamber of Commerce in Hungary (CCCH) celebrates its 25th anniversary next year. As the President of the Chamber, Nicholas Sarvari, tells Diplomacy & Trade, “being in Hungary for 25 years is an achievement in itself. The Chamber has been able to maintain its relationship with business and is today equally a representative of Canadian business interests in Hungary as we are of Hungarian interests in Canada.

We are known for our excellent events – the most successful being the annual Lobster Dinner that has been running now for 23 years, and is sold out each year.”

From club to network He adds that when the Chamber first started its activities in Budapest it was early in Hungary's transition to a free economy and its function was more of a business social club designed to present Canadian business people a forum for sharing their experiences and getting together.

“Fast forward to today, we are actually an important element of the business community.

We articulate our members' concerns, weigh in on policy issues, brief Canadian businesses and officials coming to Hungary on the business and policy environment, and we are becoming an important source of information for Hungarian businesses seeking to find Canadian business partners, resolve business problems, and prepare for business outside of Hungary. We are today an excellent resource of information and experience as well as a major advocate of a stable and healthy business environment.”

There frequently are several hundred participants at the bigger CCCH business and social events and members today include some of the biggest companies in Hungary, including Canadian, Hungarian and other nationalities. The President says these firms have chosen to be members of the Canadian Chamber of Commerce in Hungary because it has a unique network of businesses and events that are different from what the other bilateral chambers are doing. “We're not simply a group of Canucks trying to keep our community together – we are a group of Hungarian, Canadian, Italian, American, German and other companies that have expressed interest in pursuing a Canadian angle. It's a very diverse group now and one that has taken our Canadian values at heart – or perhaps they just like fresh Nova Scotia lobster?”

photo by CCCH

Canadian enthusiasm In an earlier interview with Diplomacy&Trade, Nicholas Sarvari said the Chamber promotes business for both Canadian and Hungarian companies “with a Canadian enthusiasm.”

Now, he says a major part of CCCH activities is concerned with trade promotion. “Canada's free trade deal with Europe presents a significant opportunity for business to take advantage of what Canada has to offer, thus we are finding w w w . d t e u r o p e . c o m

13 chamber.indd 13

|

that our views, contacts and resources are being sought out by businesses from both countries. The Canadian enthusiasm hasn't changed – perhaps, it’s even more important today than ever before when we consider uncertainties and challenges emerging throughout Europe and in the United States today.”

The Chamber has received many inquiries and its President knows of many individuals and businesses looking to either trade with Canada or even to re-establish themselves as businesses operating in Canada. “Not all of them will succeed, but at the end of the day, our promotion of Canada and the changes in the trade environment has made our endeavors even more important,” he points out.

Achievements As a self-funded community based organization, CCCH has great achievements. “Just last year we helped a successful Hungarian business

CONCERNS

set up their enterprise in Vancouver. One of our members now has five offices across Canada and is looking to make significant in-roads to promoting Hungary and Central Europe as a place to do business through its own network and will use the resources of the Chamber to send that message out,” Nicholas Sarvari states.

He is of the view that as Canada continues a policy of fair, open, and stable business, it is growing in the eyes of many people as ‘the place’ to be. Whether it’s CETA, Canadian policy towards immigration, its values as a nation, or just its popular Prime Minister, enthusiasm continues to be fueled by its successes. “Let me point out that many people took notice of women's education advocate Mallala's speech to the Canadian parliament as she received her honorary Canadian citizenship – something that was very moving and something I think represents very accurately the way Canadian spirit embraces diversity; this is a very big part of it.”

Nicholas Sarvari says it pains him to say that not all aspects of recent developments have elevated their enthusiasm in Hungary. “As a Chamber, we found it very important to articulate and attempt some intermediation with our bilateral counterparts vis a vis recent legislative developments in Hungary that we see as potentially very detrimental to the business environment in Hungary. Our membership is clearly not happy about these developments and I suppose our taking up these issues is in line with what a Chamber is expected to do – and it's times like this when our reach and position in the business community really can serve our membership well.”

Nicholas Sarvari would really like to see a trade mission arrive in Budapest this year, a mission of businesses looking to take advantage of the recent trade developments. “However, it's going to be essential for the business environment to see recent political circumstances resolved in a way that reassures businesses that they are in a safe and predictable environment.

This is also essential for the Hungarian government to achieve its declared intention of attracting more valuable high-tech investments that create higher paying jobs and research and development opportunities. CETA is an immensely important opportunity for these things, but I'm growing concerned about how we can achieve the necessary confidence in the Hungarian economy when we are witnessing abrupt and harmful legislation that can pull a rug out from under any business in as little as a few days. We are hopeful that dialogue will help curb the ripples this is causing and that the business environment will return to where it was earlier.

D I P L O M A C Y

&

T R A D E

|

M A Y

2 0 1 7

Supplier network One of the aims at CCCH is developing a supplier network of Canadian businesses in Hungary. The Chamber is working closely with its partners in Canada, including the Canadian Chamber of Commerce in Ottawa, which has a nationwide reach into provincial and municipal chambers and boards of trade through which opportunities can be opened up for businesses looking for routes to finding partners for their businesses.

“We are also working towards a cooperation agreement with the Canada UK Chamber of Commerce in London and looking for ways to integrate our resources so that when inquiries come, we can provide comprehensive feedback to our membership. Our endeavors to promote trade between Canada and Hungary have had fortunate circumstances supporting our overall mission. Consider only the conclusion of CETA, or that Air Canada now flies direct between Toronto and Budapest, and you can see that our network is being complemented by great developments. By 'supplier network', I would say that we have also extended our reach to the trade promotion apparatus of the Hungarian government, and are now closely in touch with them. Only last autumn, for example, we helped organize a trade event with the Quebec Board of Trade and the Hungarian Embassy in Ottawa, an event at which one of our members contributed a very positive outlook to Canadian counterparts on their experiences in business in Hungary. I would point out here that our network of real businesses added immensely to painting an accurate and much more credible view of how business works in Hungary,” the CCCH President concludes.

13 4/30/17 3:57 PM

canada focus

ATTRACTIVE PRODUCT AT ATTRACTIVE FARES

AIR CANADA LOOKING FORWARD TO ANOTHER SUCCESSFUL SEASON OF FLIGHTS BETWEEN TORONTO AND BUDAPEST

from convenient connections to 60 Canadian destinations and to 57 U.S. destinations.

Whether it was difficult to rebuild this market five years after the bankruptcy of the Hungarian national airline Malév that used to operate a flight to Toronto, Jean-Christophe Hérault points out that from the day Air Canada announced its new service from Budapest, the feedback from the Hungarian travel agency community and the public was absolutely positive. “Air Canada Rouge offers an attractive product at attractive fares. Our

TRUST AND BELIEVE

repeatedly give them the trust that they are good enough to be successful. Although, hockey is a team sport, it is the individual abilities of the players that make the difference in the end. All the players must give themselves the chance of success.”

Speaking about the past five years since he has been coaching Hungary, he stresses that “I love Budapest, it is very unique, very diversified with a lot of history, a lot of monumental buildings as well as new architecture. I also very much like the people here, they are very friendly.

I think that through the history of the whole country, how things have transformed over the last few decades, they have made huge step towards building a western society.”

Rich Chernomaz is one of those Canadians who are “proud to be living abroad.” He believes that “when living overseas, Canadians are much more likely to be open-minded to culture change than Americans. A part of this has to do with the fact that it is easier for Canadians to adapt to foreign cultures as we learn more about the history of other countries.” The ‘hockey culture’ is an additional feature since, as he points out, “for Canadians, hockey is pretty much in everybody’s DNA.”

HUNGARY’S NATIONAL ICE HOCKEY TEAM COACHED BY A CANADIAN Canadian Rich Chernomaz became the coach of the Hungarian national ice hockey team five years ago. As he explains to Diplomacy&Trade, “I have really enjoyed this job. It has been very satisfying in the sense that, unlike in other countries, we can see that players in Hungary really, really wanted to learn, not only to become better players but also better people. That is how the program has been set up for the last few years and that is how we go about the process of picking the players for the national team, not exclusively considering the sports qualities In 2015, the Hungarian side won promotion to the top division of the world championship and a year later Hungary was close to avoid relegation from the top flight. As to what his contribution to this success was, the head coach points out that a lot of people have been involved. “Everybody – from the youth program (from U-13 to U-20)

14 14 air canada 2.indd 14

to the seniors – has had a significant role to play, besides the players. My philosophy is that if everything is taken care of off the ice in a professional manner, then, there is no reason the players cannot perform. The education of how

the players have evolved in the past five years is one of the reasons we got back to the top division of the world championships. Unfortunately, we did not stay there but this year, we did have the opportunity to play in the Division I tournament.

This year’s tournament has been tough with a lot of parity within the six countries participating and Hungary failed to qualify for the top division.

Regarding the Hungarian national squad, Rich Chernomaz says “we have some younger players that are getting close to finishing their junior careers. So, the numbers are there unlike when I started five years ago when we were very short on players to choose from.” He is of the view that Hungary was up to the task of winning promotion.

“Two things that I have lived on my whole career as a player and as a coach are to ‘trust’ and ‘believe’, which means that before you accomplish something you must believe you can do it. If you are a coach you have to show your trust in your players and M A Y

2 0 1 7

|

D I P L O M A C Y

&

T R A D E

|

AIRPORT, LÁSZLÓ MUDRA/HUNGARIAN ICE HOCKEY FEDERATION

number of weekly services from five to six.

When asked what made Air Canada include Budapest among its destinations last year and how important of a destination or regional hub it is for the company, the General Manager highlights that “clearly, Budapest is one of the most attractive European travel destinations for North Americans, and therefore, it was on top of Air Canada´s international network expansion list. Currently, it is only Air Canada Rouge that offers a nonstop service between Budapest and North America. Hungarian travelers can benefit

photos by BUDAPEST

Air Canada reopens its TorontoBudapest flight after last year’s launch with an increased capacity. As to how satisfied the company was with last year’s numbers, Jean-Christophe Hérault, Air Canada General Manager, Germany tells Diplomacy&Trade that “our 2016 numbers were fantastic, far above expectations. Based on these excellent results, Air Canada Rouge received an award for the ‘Best New Long Haul Airline’ by Budapest Airport. Furthermore, one flight was added to the coming summer schedule, increasing the

customers benefit from the strength and reliability of one of the world´s best and safest airlines.”

Air Canada is also increasing capacities on other flights between Canada and Europe. The General Manager attributes this increase in air travel demand between these two regions of the world by saying that Toronto´s geographic situation allows perfect connections between large parts of the Americas and Europe.

Canada´s reputation as a safe, friendly and prospering country, open to travelers and workers, creates high demand, as well.

Speaking about membership of Air Canada in the Star Alliance, he stresses that it is very important in general and for Hungarian / Hungary-bound passengers, as well. “Air Canada is a proud founding member of Star Alliance. Star Alliance means a lot to us as it stands for a global network of strong partner airlines, all aiming to offer very high service quality standards to their customers.

As regards the possibility of making the TorontoBudapest link an all-year operation, he points out that they expect 2017 to be the second successful year for our seasonal service between Toronto and Budapest and any decision will be considered after that. “Once ratified, the EU-Canada Comprehensive Economic and Trade Agreement (CETA) “will most probably become a strong contributor to the further development of relationships between various European countries and Canada, which will enhance the demand for air transportation. Air Canada will be there to serve this demand,” JeanChristophe Hérault, Air Canada General Manager, Germany concludes.

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

4/30/17 3:58 PM

canada focus

INNOVATIVE AND INGENUOUS LINAMAR CORPORATION FOUNDED BY A HUNGARIAN IMMIGRANT IN CANADA OVER 50 YEARS AGO

One of the leading Canadian investments in Hungary is that of Linamar Corporation, a supplier of high-precision automotive components, with plants in Békés County in the southeastern part of the country. As Linda Hasenfratz, the Chief Executive Officer of Linamar Corporation tells Diplomacy&Trade, Linamar has had a long and prosperous relationship with Hungary. “We have taken a strong skilled workforce in Hungary and used it to build a solid business in both vehicle components and our agricultural business.’

Once it is ratified, the EU-Canada Comprehensive Economic and Trade Agreement (CETA) will apply to both Hungary and Canada. As to what benefits Linamar hopes to gain from this agreement, the CEO points out that “bigger markets to buy from and sell to quite simply create more opportunity.

We hope to benefit from a broader supply base going both ways across the Atlantic as well as broader customer opportunities. The agreement will also facilitate intercompany business opportunities as we are enabled to seamlessly tap into our strengths in each continent to provide optimal system solutions to our customers.”

Constant innovation Being an automotive supplier requires quality work and constant innovation. At Linamar, “innovation in terms of the products we design and the processes we design to make those products, as well as development of new materials to really optimize product performance, is what gives us our competitive edge. We innovate every single day in every one of our plants to evolve our processes. In addition, we have great teams in

the Council is an exciting opportunity for Canada and the US to unite around a common goal of enabling more women entrepreneurs and leaders. “Our group is excited about finding ways to continue to build on the positive momentum already building in that regard. Women statistically start businesses at a higher rate than men already. Our task is to help them do so successfully and to scale those businesses hopefully on an international stage. I am proud to play a role in this important work.”

Expansion plans

our six technology development centers around the world coming up with new innovative product and material solutions. We also work closely with outside companies by sharing great new ideas to help them develop our products and bring them to market as their manufacturing and commercial partner. We are part of an innovation eco-system which it is important to tap into all the corners of!” Linda Hasenfratz explains.

CEO for 15 years In the fall of 2014, the Canadian Embassy in Budapest hosted an interesting informal conversation with Frank Hasenfratz (a Hungarian immigrant who founded Linamar in Canada in 1966), the father of Linda Hasenfratz. Then, he said that when he designated his daughter to succeed him as chief executive officer, he first put her through a prolonged apprenticeship that

took her ‘from the plant floor to the head office’.

Regarding the company’s development since she took over the helm, Linda Hasenfratz says “we have evolved quite a bit since I became CEO in 2002, now 15 years ago. We have become more global, we have diversified into new markets and new processes and we have taken innovation to a new level. We have grown from CAD one billion in sales to more than six billion. While many things have changed, many things have stayed the same. We are still entrepreneurial, always chasing the next opportunity, we are still innovative and ingenuous, we still care about every penny but also set more and more challenging goals for ourselves to continue to grow and prosper.”

Positive momentum for women Speaking of her involvement in the CanadaUS Council for Advancement of Women Entrepreneurs and Business Leaders, she says

Linamar wishes to continue to grow its business globally. “We see huge opportunity in our existing markets and envision expanding into new markets, as well. Our automotive business will see huge change and therefore opportunity in the coming years as we shift to new propulsion systems for some portion of the market and introduce new mobility solutions. Linamar is actively developing technologies for electric and hybrid vehicles as well as fuel cell systems to ensure we have a front row seat in this new market. Our Skyjack business will continue to grow globally and in terms of its product lineup, again bring exciting new technologies to our customers to modernize the construction site. We also envision expanding into new markets such as agriculture, water, age management products and power. We have a great strategy developed to do that and a fantastic team in place to make it happen,” the Chief Executive Officer of Linamar Corporation, Linda Hasenfratz concludes.

THE CIRCUS OF THE SUN RETURNS

photos by LINAMAR

CORPORATION, JARID A. BARRINGER, COURTESY PICTURES

CANADIAN CIRCUS TROUPE ENTERTAINS HUNGARIAN AUDIENCES ONCE AGAIN

On tour around the globe, the internationally renowned Canadian entertainment company Cirque du Soleil is returning to Budapest this May with a three-day engagement of Varekai, a captivating forest at the summit of a volcano inhabited by whimsical and enchanted creatures.

Directed by Dominic Champagne, this production pays tribute to the nomadic soul, to the spirit and art of the circus tradition, and to those who quest with infinite passion along the path that leads to Varekai (which means ‘wherever’ in the Romany language of the gypsies).

It all started in Baie-Saint-Paul, a small town near Québec City in Canada. There, in the early eighties, a band of colorful characters roamed the streets, striding on stilts, juggling, dancing, breathing fire, and playing music. They were Les Échassiers de Baie-Saint-Paul (the Baie-Saint-Paul Stiltwalkers), a street theater group founded by Gilles Ste-Croix. The townsfolk were impressed and intrigued by the young performers – including Guy Laliberté who founded Cirque du Soleil. w w w . d t e u r o p e . c o m

15 canada circle.indd 15

|

The troupe went on to found Le Club des talons hauts (the High Heel Club), and then, in 1982, organized La Fête foraine de Baie-Saint-Paul, a cultural event in which street performers from all over met to exchange ideas and enliven the streets of the town for a few days. La Fête foraine was repeated in 1983 and 1984. Le Club des talons hauts attracted notice, and Guy Laliberté, Gilles SteCroix and their cronies began to cherish a crazy dream: to create a Québec circus and travel around the world.

The story of the name ‘Cirque du Soleil’ dates back 33 years to 1984 when Québec City was

D I P L O M A C Y

&

T R A D E

|

M A Y

2 0 1 7

celebrating the 450th anniversary of Canada’s discovery by Jacques Cartier and they needed a show that would carry the festivities out across the province. Guy Laliberté presented a proposal for a show called Cirque du Soleil (Circus of the Sun), and succeeded in convincing the organizers.

From a group of 20 street performers at its beginnings in 1984, Cirque du Soleil has become a major Québec-based organization providing highquality artistic entertainment. The company has close to 4,000 employees, including 1,300 artists from more than di erent ountries. O er these years, Cirque du Soleil - whose mission is to invoke

the imagination, provoke the senses and evoke the emotions of people around the world - has brought wonder and delight to close to 160 million spectators in more than 400 cities in over sixty countries.

The company's creations have received numerous prizes and distinctions, including a Bambi Award in 1997, a Rose d'Or in 1989, three Drama Desk Awards in 1991, 1998 and 2013, three Gemini Awards, four Primetime Emmy Awards, and a star on the Hollywood Walk of Fame. The Cirque du Soleil first performed in Hungary in October 2007. This is the 6th year they stage a performance here.

15 4/30/17 4:20 PM

16 bmw.indd 19

4/30/17 3:59 PM

nordic green light

THE NORDIC EXPERIENCE ENVIRONMENTAL SUSTAINABILITY BUSINESS FORUM IN BUDAPEST

DIPLOMACY&TRADE It is not only individual technologies and ideas that can be examples for Hungary but also the cooperation of the Nordic countries.

LÁSZLÓ SZABÓ: The Nordic countries have a very long and successful history of cooperation and integration. The depth of integration among them in certain areas surpasses that of the European Union, for instance, in the electricity market which - due to the creation of interconnector networks - also contributes to environment friendly economies. Even though significant efforts are still needed, Hungary’s ambition is to create an interconnection of energy networks in Central Europe that provides security and stability and enables sharing of energy sources within the region, entailing costeffective and environmentally sound solutions.

Transformation to a competitive ‘green’ and low-carbon economy is a major challenge for most countries.

It can only be achieved through cooperation across borders, exchange of fresh ideas and best practice, and new investments. The EU ‘Europe 2020’ strategy points a way forward for the member countries but also for their partners. That is the message of an article published in the Hungarian economic daily ‘Világgazdaság’, co-authored by Dr László Szabó, Deputy Minister of Foreign Affairs and Trade of Hungary, the ambassadors of four Nordic countries accredited to Budapest (Olav Berstad of Norway, Kirsten Geelan of Denmark, Niclas Trouvé of Sweden and Petri Tuomi-Nikula of Finland) as well as Thórdur Ingvi Gudmundsson, Minister Counsellor at the Embassy of Iceland in Vienna.

Diplomacy&Trade asked the Deputy Minister about the purpose of this joint article.

LÁSZLÓ SZABÓ: The purpose of the article was to call attention to the Nordic Green Light business forum organized this May by the Hungarian Ministry of Foreign Affairs and Trade with its northern European diplomatic and corporate partners as well as the representatives of the Hungarian local government sector in order to forward the cause of the environment and sustainable development.

energy and renewable energy are an important part of European and national energy policies, while the wider exploitation of solar, geothermal or biomass increases the diversification of energy supply. A more widespread use of renewable energy inevitably requires the support of the entire ‘green economy’ production chain in various industries as well as support for the spread of environmentally sustainable solutions. Hungary, therefore, calls for cooperation with the Nordic countries in research, technology and investment.

DIPLOMACY&TRADE As you stress in the

photos by

SHUTTERSTOCK.COM, DÁVID HARANGOZÓ

article, green transformation is not just a challenge.

LÁSZLÓ SZABÓ: That is right, it rather means an enormous opportunity for small countries towards a wealthier economy.

Well-designed investments in the field of renewable energy and energy efficiency will generate long-term sustainable growth which is clearly demonstrated by the success of the countries in the Nordic Region. This will also be an important topic of discussion at the upcoming forum where we find it important to get Hungarian and Nordic partners closer together through personal exchanges like this. However, market forces alone will not succeed in bringing about change. Strong EU and national regulation is also necessary. Governments have an important role in creating platforms for cooperation across sectors, stimulating competition and business-to-business interaction. This is precisely what the Nordic Green Light Forum aims at. w w w . d t e u r o p e . c o m

17 nordic green 001.indd 17

|

DIPLOMACY&TRADE The countries of the Nordic region are considered as leaders in the field of environmental sustainability. How can they help the interested Hungarian partners?

DIPLOMACY&TRADE Sustainable, secure and affordable energy is a clear political goal of the Nordic governments, alongside the economic, environmental and social aspects of sustainable development. What is the strategy of the Hungarian government in this respect?

LÁSZLÓ SZABÓ: The Hungarian government is also aiming to diversify and improve the security of energy supply. We can see that fossil fuels, nuclear

D I P L O M A C Y

&

T R A D E

|

M A Y

2 0 1 7

LÁSZLÓ SZABÓ: As it is put in the article, Hungarian companies and, as end-users, municipalities may expect to gain important and useful competencies from the Nordic companies.

Through green economy development, the Nordic region could bring significant knowledge and capital transfer to Hungary and it could also contribute to improving Hungarian business culture as well as to making it more transparent and more predictable.

Actually, we do not need to go to Scandinavia for the Nordic experience as that region has already established its presence in Hungary through important investors. Altogether, Nordic companies employ tens of thousands people in this country and the Hungarian government has signed strategic partnership agreements with six Nordic firms: Coloplast, Ericsson, Grundfos, Lego, Nokia and Telenor.

DIPLOMACY&TRADE As you point out in the article, the Paris Climate Agreement induced a shift of focus for both Nordic and flagship Hungarian energy companies. What new tasks does that require on the part of these firms?

LÁSZLÓ SZABÓ: We believe that investment areas, which may be part of an economic boom, are needed to be determined. Green transport and the car industry, which is of utmost importance for the Hungarian economy, will undeniably be among them. The question remains, however, if electro-mobility, CNG and other alternative propulsion systems can all be competitive. E-government, smart Internet solutions, Industry 4.0, Internet of Things, digitalization and smart gadgets keep on transforming our daily life to an extent never seen before. The electric power industry is in the limelight as it creates new opportunities for other businesses yet at the same time undergoes profound transformation itself as well with many small energy market actors popping up.

DIPLOMACY&TRADE One image that comes to people’s minds about the Nordic countries is environmental friendly sustainable architecture.

What can we learn from them in this respect?

LÁSZLÓ SZABÓ: Green buildings represent an increasing share of commercial real estate development in Hungary, although the notion of green construction has just recently taken off in the field of residential property. Many Hungarian small and middle size enterprises are searching for proven best practices. Hungarians and the people of the five Nordic countries (35 million people altogether) agree on the overall policy goals. Questions as to how to do it in practice will be in the focus point of this Nordic Green Light environmental sustainability business forum. In agreement with the ambassadors of the Nordic countries, I am convinced that this forum and the new relations to be established between companies, municipalities and other stakeholders during the conference will offer added value to the cooperation between the Nordic countries and Hungary.

17 4/30/17 4:18 PM

nordic green light

GREEN AS WELL AS COMPETITIVE SWEDEN HAS LONG BEEN THE FORERUNNER IN CARING FOR THE ENVIRONMENT

“Sweden has been able to develop a green competence or sustainability in issues like energy, transportation, recycling, waste management (purification of water, water management, sewage systems), etc.

The country turned from heavy oil dependency in the 1970s to become a forerunner in the use of environmentally friendly technologies, the Swedish Ambassador to Hungary, Niclas Trouvé explains to Diplomacy&Trade. He also mentions that Sweden is the number one in the production and consumption of organic, ecological food. “Eco-innovation and smart green solutions, like in vehicle manufacturing, all drive development,” he points out.

As to what sustainability means at the SwedishSwiss power and automation technology firm ABB, Taira-Julia Lammi, the country managing director of the company’s Hungarian subsidiary highlights that “all our products are aiming for reliability, sustainability, energy efficiency and it is not only in our own operations but the whole company’s idea to help others to be more sustainable, more energy efficient in all areas, not just within industrial companies but also in private homes. We are in the power sector, so, it also appears in power generation, power transmission, power distribution - basically everywhere in ABB systems and products. One fine example in Sweden is the ‘smart grid’, which is a kind of holistic way of managing the network, the electricity consumption and supply in a smart way, in a transparent way, in a way that you can react to the problems quickly.”

The Commercial Director for Volvo Hungária, the

distributor of Volvo trucks, Péter Dér says they are also driven by their customers’ business, focusing very much on their sustainability. “As costs are very important, and a substantial part of the cost is fuel, which is also something that has an impact on the environment, we are offering vehicles with low fuel consumption. In addition, we are investing into people: our own staff and our customers’ employees, drivers, for example, whose driving style also has an impact on the environment. In production, Volvo ru ks has O neutral fa tories in urope, featuring small gardens that provide green area for colleagues to rest. In 2017, we produced seven

There is an agreement on this across the political spectrum in Sweden to act for the environment.

The declared goal is that by 2045, Sweden will have a ‘no net emission’ of greenhouse gases into the atmosphere and should thereafter achieve negative emissions,” he points out.

Taira-Julia Lammi stresses that “at ABB, we represent Swedish values. Our office is located in a ‘green house’ office building in Budapest with features like recycled water used to flush the toilets, a smart system to monitor electricity consumption, etc. Therefore, we are promoting these sustainability values in everyday life in Hungary, as well. Innovations and technology used by our company help the world to reach those lower emissions that we all strive for.”

According to Péter Dér, “at Volvo Trucks, sustainability is also very much in the mindset of the people. The Volvo Group has three core values and one of them is environmental care.

We have been proud of our products always matching the top environmental standards. We also have leading technologies in research and development when it comes to alternative fuels, hybrid vehicles and autonomous driving.”

The stories heard from the company representatives well illustrate that in Sweden there has been no disagreement between lawmakers and businesses on environmental issues for a long time. “In fact, business has often been leading the environmental and green technology development. All this not only helps the environment but also makes Sweden more competitive on the world market,” Ambassador Trouvé concludes.

engines running on different types of alternative fuels. It is up to the authorities to decide which one is the best direction and within two years, we will manufacture the one they choose.”

Sustainable development is impossible without an environment-conscious population. The Ambassador believes it is very much in the mindset of the Swedish people. “From the 1970s, long before the current fashionable environmental movement, there was a campaign urging people to ‘keep Sweden clean’. Now, it is in our blood, our DNA, our mindset as Swedes for such a long time that we should take care of our environment, because we have only one planet.

GREENER WAYS OF LIVING

18 18 nordic green 002.indd 18

municipalities have worked to develop a smart city concept. The City of Copenhagen has set ambitious goals for the city’s social, economic and environmental development. The philosophy behind these goals is to combine sustainable solutions with economic growth and quality of life. Copenhagen is one of the most livable cities in the world with a large number of green areas and open spaces with fresh air. The Danish capital has some of the cleanest water in the world - both for drinking and swimming – it is a city overflowing with bicycles and the necessary infrastructure, and it has a high availability and consumption of organic produce.”

She adds that in many respects, Copenhagen serves as a role model for many of the world’s big cities. “Mayors, town planners and politicians from all over the world visit Copenhagen every year to study its bicycle system and integrated public transport, district heating system and waste management. Copenhagen’s success mostly stems from a strong political commitment, a clear determination to achieve the ambitious target to become the world's first carbon neutral city by 2025.”

Sustainable development is impossible without an environment-conscious population. According to the Ambassador, Danish achievements are based around dialogue and collaboration. “In addition, the focus has for many years been on attracting green investments into the economy to improve environmental performance and energy efficiency, as well as to create a low-carbon economy. The Danish society has a high level of environmental awareness, strong political leadership and a behavioral pattern facilitating the implementation of necessary framework legislation.”

As regards the May conference, “Denmark and the other Nordic countries have a long tradition of working together to develop common solutions to common challenges. Personally, I think seminars and conferences often give good food for thought, and the Nordic Green Light conference in Budapest is no exception. I hope that this cooperation, which concentrates Danish and other Nordic competences in regards to sustainability and energy efficiency, will contribute to furthering ideas and solutions to the climate challenges we face today,” Ambassador Geelan concludes.

M A Y

2 0 1 7

|

D I P L O M A C Y

&

T R A D E

|

photos by DÁVID

“As a responsible, global actor, Denmark is leading the way when it comes to creating a green and sustainable society. More than 20% of Denmark's energy already comes from renewable energy, and the goal is to reach 100% by 2050. Additionally, most waste is regarded as yet another resource and is recycled or incinerated, and finally utilized for energy recovery (Copenhagen aims to become the first Zero Waste City by 2050), the Danish Ambassador to Hungary, Kirsten Geelan tells to Diplomacy&Trade. She adds that Danes strive to create a better environment by developing new and greener ways of living – renewable and especially wind energy production, a sustainable and integrated transportation system, smart urban planning and the internationally recognized district heating/cooling systems.

In 2014, Copenhagen was Europe’s Green capital with its own smart city concept. As to what features she thinks are exemplary and worth following by other cities that wish to improve their sustainability rate, the Ambassador points out that “over many years, numerous Danish

HARANGOZÓ, ZSOLT BURGER/MFAT

DANISH SOCIETY HAS A HIGH LEVEL OF ENVIRONMENTAL AWARENESS

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

4/30/17 4:00 PM

nordic green light

SUCCESSFUL TRANSFORMATION TO SUSTAINABILITY NORWAY EXCELS IN THE MANAGEMENT OF NATURAL RESOURCES The Norwegian Ambassador, Olav Berstad says his country has had great success in balanced development. “We were the first country to establish a separate ministry for environmental issues back in 1972, so, we have a long tradition of looking at things from that perspective. I think what we can particularly be proud of is the management of natural resources: oil, gas, hydro-power, fish, etc. The sustainability part of it is not only to have an effective and durable exploitation of resources but also the distribution of income from these activities. So, I believe that the management of natural resources has been a success from the environmental, economic and social points of view, and it has been a contribution to the global efforts on how natural resource can be sustainably managed. Norway has, in a way, established ’best practice’.”

As for balancing between sustainability and caring for the environment, he says there have been some hard lessons learned. “We have closed a lot of businesses that became unprofitable from the economic point of view when strong environmental standards were introduced by

the government and also by demand of the population. Already back in the 1960s and ‘70s, we could see that things were not going in the right direction. I think today, we have these things under control, most industries have adapted well, making their production greener and cleaner and, at the same time, more efficient. So, there has been a tremendous transformation. With regard to market access and image, I think Norwegian businesses have come out quite successfully from this transformation. New opportunities and new markets have been created in green production.”

He adds that Norway has put a lot of political and practical emphasis on these processes. “Last year, our prime minister was asked by the General Secretary of the United Nations to be the co-chair of the Sustainable Development Goals Advocates.

This effort created a lot of attention and had a high level of support in Norway.

Just a few days ago, our government issued a white paper on these processes to detail the country’s domestic and international contributions on this field.”

The Ambassador believes one really needs a stakeholder approach to achieve results. It is not only the government, not only science and industry but also a population that is aware of the necessity of sustainable development. “It takes time to develop a sense of caution and civilizational responsibility for this. The Norwegian population, starting from school age, has a high degree of awareness and support, and pride in, Norway’s achievements.

Again, this goes back in time and has to do with the fact that we are much closer to nature than many other countries.”

When asked about the importance of the Nordic Green Light gathering in Budapest, Ambassador Berstad says that “conferences like this have great value not only in explaining best practices.

The whole idea is to bring businesses together.

Even if you build partnerships in a few cases only, bringing engineers and experts together can have a great multiplying effect. The point is joining forces to see what comes up. It is also a European opportunity to become not only greener but more competitive, as well.”

SUSTAINABILITY IS A COMPETITIVE ADVANTAGE

photos by

DÁVID HARANGOZÓ, RÓBERT HEGEDŰS

IN FINLAND, WOOD ACCOUNTS FOR 80% OF RENEWABLE ENERGY According to the Ambassador of Finland to Hungary, Petri Tuomi-Nikula, his country is a pioneer in the production and use of bioenergy. Renewable energy represents almost 35% of the final energy consumption in Finland. The objective set for Finland by the EU is 38% by 2020.

He tells Diplomacy&Trade that “wood accounts for 80% of our renewable energy and in the future, too, most of the growth in the renewable energy production and consumption will be based on wood biomasses. Wood is by far the main raw material of our energy production, with a share higher than those of oil, coal or natural gas when the energy generated in the wood industry processes are taken into account, in addition to the direct use of wood for energy.”

The Ambassador adds that “most of our renewable energy is produced by the side streams of wood-based industries. The combined production of electricity and heat in many towns and cities is also based on renewable wood raw material. In the future, the energy fractions of the side streams of agriculture and food industry will also be even more efficiently used for energy production. The use of wood-based transport biofuels is growing rapidly in Finland. We are already producing bio-oil based on pyrolysis, and further processing w w w . d t e u r o p e . c o m

19 nordic green 003.indd 19

|

D I P L O M A C Y

of pine oil created in the pulp production process into second-generation biodiesel is getting started. Processing plants for other wood-based fuels are also being planned.”

You can often hear that sustainability and caring for the environment are just drags for companies and they cost money, damaging profitability. As to how Finnish companies keep a balance between efficiency and environmental protection, Ambassador Tuomi-Nikula is of the opinion that sustainability is a competitive advantage in all businesses in Finland. It is a way to save energy but also a way to promote the image of the company and its products.

“Sustainability is one of the key assets of all business in my country,” he points out.

Finland was part of the 2016 National Voluntary Review at the United Nations High-level Political Forum on sustainable development. Representing Finland, the Minister of Agriculture and the Environment, Kimmo Tiilikainen participated in the National Voluntary Review and held a comprehensive presentation on the goals and implementation of the Agenda 2030 in Finland. When presenting the national report of Finland, Minister Tiilikainen gave concrete examples of sustainable development. “The report of Finland on implementing sustainable development received a lot of acknowledgement,” the Ambassador concludes.

&

T R A D E

|

M A Y

2 0 1 7

19 4/30/17 4:00 PM

czech republic

Partners As to who the Hungarian partners are that the Commercial and Economic Department cooperates with, the Commercial Counsellor highlights state and government officials from different ministries and other government and state institutions, including specialized agen ies like the ational rading House or the investment promotion agency HIPA, depending on the field of their agenda in terms of trade and business. Of ourse, there are pri ate Hungarian companies that contact us by mail or phone and then we meet to see whether their business proposal is iable. f we belie e it is, we provide them with all the necessary information enabling them to contact the competent Czech partners or businesses. n this regard, it is ery helpful for me that we ha e a ze h rade epresentation offi e here in udapest. he latest e ent that the ommer ial ounsellor participated at was in the town of Szolnok at the end of ar h. t was a su essful on lusion of one of the projects of ‘economic diplomacy’ we organized at the ze h mbassy. n , we began working on bringing one Czech air industry ompany i.e. l n Air raft JS to Hungary to participate in an open international tender for supply of modern training aircrafts for the Hungarian Air For e. e organized a presentation here at the Czech Embassy with mainly the representatives of the Hungarian Ministry of Defense and of the Hungarian Air For e in ited. entually, the bid by the ze h

20 20 commerce.indd 20

ompany l n Air raft JS was su essful and a ontra t for deli ery of four pie es of l n training air rafts and was signed. wo of these aircrafts arrived at the end of March at the heli opter base in Szolnok. had the pri ilege to attend a very nice ceremony organized by the Hungarian inistry of efense there.

Mutual interest A ording to his experien e, ze h and Hungarian companies have great interest in doing business together. oth ountries are members, whi h means the business is nowadays much, much easier than it was before. here are pra ti ally no obstacles for doing business and the main problem remains more or less in finding the proper item or field of business and space in the market not yet discovered or occupied by others. his is as far as the small businesses are on erned. hen talking about the big ones, there is a problem of being competitive enough to succeed in open international tenders being issued by large Hungarian companies or Hungarian government and state institutions. n general, ze h businesses like other foreign companies - are interested in le el playing fields in su h tenders. he ze h automoti e industry is present in Hungary not only with passenger cars, such as SKODA, but also through public transport vehicles su h as trams, buses, trolley buses et . As for what he thinks the ‘secret of success’ is, Vladimír and ek is of the iew that there is no se ret at all. t is ust a matter of being ompetiti e from all points of view such as quality, price, deli ery terms, referen es et ., whi h enables

nterspar supermarkets one in y regyh za in the northeast and one in alaegerszeg in the southwest of the ountry . As for the biggest value acquisition by a Czech company in Hungary, it was that of the sunflower seed and oil producer roup td. in iskunf legyh za, S Hungary, by the ze h holding Agrofert in .

Regarding the further improvement in CzechHungarian economic and trade relations, ladim r and ek is of the opinion that we are experien ing ea h and e ery year higher turno er in our mutual trade relations, ex ept of course for the period of economic and finan ial risis between the years and . ast year, the turno er rea hed almost . billion and the figures for the first two months of show further in rease in export and import olumes in omparison with the same period of last year. aking into consideration that the European Commission has lately given the ‘green light’ to the construction and enlargement of the Atomic Power Station Paks II, “there is finally a big chance for Czech companies from the sector of atomic engineering, in whi h we ha e great experien e from the construction of our two Atomic Power Stations in uko any and emelin. his is, for an example, one possibility for further improvement of our economic and trade relations. may also mention ooperation in the field of infrastructure projects such as highways and railways, environment sector, agriculture sector and last but not least the defense and security sector,” the ommer ial ounsellor on ludes.

you to succeed in a very tough competitive market as the Hungarian market is today.

Czechoslovakia, as well as the Czech Republic has been historically known as a highly industrial country having high quality products from heavy industry, machinery, atomic machinery, transport, high-tech, information technology and other se tors. He adds that Skoda ransportation is one of those foreign ompanies that complains about the lack of equal treatment and the special rules favoring certain applicants in ad an e. his is a problem we are trying to help resol e. here are Skoda ransport ehi les in operation in Budapest as well as in two other Hungarian ities, for example in iskol .

Major investments and prospects Concerning bilateral investment relations, the Commercial Counsellor mentions the three latest ze h a uisitions. arlo arsk miner ln ody expanded into Hungary with the pur hase of kk ti s ny z and Szentkir lyi s ny z that produces such well-known mineral water brands as kk ti, Szentkir lyi and heodora. hen, there is the takeo er of udapest ower lant td. udapesti rőm from the Fren h ompany F by the ze h ompany nergy, which is a part of the European Industrial Holding H. t was an important a uisition as this power plant supplies of the distri t heating in udapest. n the area of real estate, the Czech holding CPI Property Group took over a large portfolio properties in the region, including two large shopping centers (Pólus and ampona and the Andr ssy omplex on Andrássy Avenue in Budapest as well as two M A Y

2 0 1 7

|

D I P L O M A C Y

&

T R A D E

|

photo by

“In general, the main task of the Commercial and Economic Department of the Czech Embassy in Budapest is to enhance and foster the mutual economic and commercial relations between the Czech Republic and Hungary,” the Head of the department, Commercial Counsellor Vladimír and ek explains to iploma y rade.

He adds that his work consists of many other activities such as closely and regularly monitoring the Hungarian economic situation; accompanying Czech government officials as well as trade and business delegations visiting Hungary; preparing materials for negotiations; taking part mainly in government-to-government and sometimes in business-to-business negotiations, albeit the latter activities are mainly the responsibilities of the director of the Representation Office of ze h rade in udapest. Further a ti ities include participation in briefings of several Hungarian ministries before meetings of relati e oun ils in russels or uxembourg like OF , n ironment, ompetiti eness, Agri ulture and Fishing and reporting the Hungarian positions to the inistry of Foreign Affairs or other sector ministries, arranging business meetings with state organizations or with private companies, assisting Czech companies solve problems resulting from their business dealings, taking part in fairs and exhibitions organized by the Hungarian side, organizing various projects and missions in the field of what is termed ‘economic diplomacy’, aiming at enhan ing bilateral relations, et .

DÁVID HARANGOZÓ

DOING BUSINESS TOGETHER

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

4/30/17 4:01 PM

s

c.

THE ONLY CZECH ROYAL BEER SINCE 1581

ROYAL CZECH BEER SINCE 1581

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

21 krusovice.indd 3

|

D I P L O M A C Y

&

T R A D E

|

F E B R U A R Y

2 0 1 5

3 4/30/17 4:01 PM

business

NEW CHALLENGES REQUIRE NEW ANSWERS BUSINESS LEADERS FORUM DISCUSSES EUROPEAN INTEGRATION

”Hungary does not want to quit the European Union, but to reform and to change its system of institutions so that every country may become successful,” János Lázár, the Minister heading the Prime Minister’s Office stated at the financial summit ‘The New World? Global Challenges of Europe and the USA’ organized by the Hungarian Business Leaders Forum (HBLF) this April.

to increase by 2.4% in 2017, while the world's combined GDP is expected to grow by 3.5%.

He also called attention to the fact that economic advocacy has been constantly changing. Earlier, the G7, then the G8, and then the G20 countries were decisive in formulating world economic interests, but now the G0 (G Zero) concept is gaining ground, claiming that there is no power in the world that could force its will alone on the rest of the world. The former foreign minister said that the European Union must step out of its earlier laid-back position and take firm actions to strengthen its stance on several issues.

György Szapáry, who is also a former vicepresident of the National Bank of Hungary, highlighted that that the forces that once united the European Union, have now loosened and one of the reasons for the current problems is that the Central and Eastern European countries entered into an already existing ‘ready-made club’ with high expectations towards European integration. Today, migration has become one of the EU's most pressing problems and a major source of dissatisfaction, but the view of migration is different in the former colonial countries from that in the Central and Eastern European states, because the latter ones do not have the experiences of coexistence.

According to György Szapáry, in addition to Schengen and the single market, the creation and introduction of the euro is a great achievement of European integration. However, he said, the cohesion of the euro zone is threatened by the unequal economic growth of individual euro-zone countries and theimbalanced unemployment trends. He emphasized the need to move forward in the creation of the banking sector, but “the fiscal union is far away.”

Beyond 2020

Hungary, a victim?

Future and competitiveness He was also of the view that as one of the consequences of Brexit, European conservatives “have become paralyzed”, while the socialists have ready answers regarding what should happen to the EU after Britain’s departure: “they would like socialism,” he alleged. The European socialists would like to see member states which think in terms of the representation of national interests and sovereignty “being chastened, brought to their knees” or forced out, he added.

He said the big debate of the period to come will be about whether the Member States will be able to better contribute to the future of the European Union by surrendering further powers, such as taxation and supply systems, or by exercising them more effectively. The Hungarian government’s position has been consistent ever since 2010: there is no need or scope for surrendering further powers because it helps the country’s competitiveness if these issues remain within member state competence.

Stop Brussels?

The HBLF financial summit also featured panel discussions by current and former ambassadors.

The French Ambassador to Hungary, Eric Fournier caused great laughter in the audience when he lifted a magazine page with a Hungarian government advert which – just like thousands of posters all over the country – says “Stop Brussels!” He was wondering why the money of Hungarian taxpayers is used to stop the European Union symbolized by Brussels. He added that he hoped that János Lázár, who already left the conference, did not identify with this idea.

Instead of Minister Lázár, it was György Szapáry who defended the famed poster, arguing that 300-400,000 refugees swarmed through Hungary recently and he claimed that the European Commission's indecisiveness has led to the poster campaign. In reaction to that, the Dutch ambassador, Gajus Scheltema pointed out that Hungary has sold settlement bonds to more foreigners than the number of those who would have been relocated under the EU agreement. "The poster is saying, I do not want to be part of the solution, I want to stay there," he stressed.

New answers to new challenges Also speaking at the financial summit, former Hungarian foreign minister János Martonyi and former Hungarian ambassador to the US, György Szapáry shared their views on answers to new challenges faced by the world economy and by the European Union and the necessity for new ways of handling problems.

János Martonyi called it a new phenomenon that globalization has slowed down, and that the expansion of the global gross domestic product (GDP) of the world now exceeds the growth in world trade. World trade is expected

22 22 hblf.indd 22

M A Y

2 0 1 7

|

D I P L O M A C Y

&

T R A D E

|

HARANGOZÓ

According to János Lázár, Hungary is “a victim of shameful double standards”: while Austria is praised because it implements measures which the Minister claimed “trample on European law” through the restoration of border controls, Hungary is condemned for observing the Schengen regulations at the Hungarian-Serbian border. He said migration has been the only issue determining the future of the European Union in recent years on which positions have not moved “an inch” closer between Hungary and the European Commission. “On a great many other issues, after the initial overheated debates, we managed to come to rational compromises after 2010,” he remarked.

According to the Hungarian government’s position, migration must be stopped and placed under control, while the European majority seeks to organize it. The Minister took the view that this issue will be determined in the next year as it is the goal of the Commission to force Hungary in the summer of 2017, even by legal means, to take back refugees and to organize a more liberal border entry regime. He claimed the European socialists “have taken it upon themselves” to try to force Hungary to the periphery of the European Union.”

photos by DÁVID

In his view, the main question is what will happen to the EU budget and the cohesion funds beyond 2020 when Britain is no longer a member of the EU. He is of the opinion that that these funds will not be done away with altogether, but funding will change, and there will be a new system with central distribution, similar to the Juncker development fund, from which “it is well worth checking out” how many Central-European countries received grants.

He highlighted that EU disbursements to Hungary account for HUF 2,000-2,500 billion of the Hungarian annual gross domestic product (GDP), which amounts to HUF 33,000-35,000 billion per annum. These funds have strategic significance from the respect of the development of the Hungarian economy, at all times subject to the state of the economy, he pointed out. Hungary primarily benefited from these resources in respect of the consolidation of state finances and the restoration of a state of financial balance, and as a result, investor trust has increased and the country’s exposure has decreased, he said, adding that the Hungarian budget is now able to carry out development from its own resources. The Minister was of the opinion that “these funds are not a gift”: Hungary was given a possibility to catch up with its western counterparts in return for opening its market. However, he claimed, this possibility was tied to a “clearly definable” ideological objective which, in the EU’s opinion, promotes European competitiveness.

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

4/30/17 4:01 PM

business BRITISH EMBASSY MOVES WITHIN BUDAPEST

CityTaxi_Hirdetes.ai 1

This April, the British Embassy moved out of the building on Harmincad utca, downtown Budapest, that it occupied for 70 years and moved into an office building at Füge utca 5-7 in the second district of Budapest. The new location, which used to be the Dutch Embassy, has been “completely renovated to provide the British Embassy, its staff and visitors a modern and fit for purpose working environment,” according to a communiqué by the Embassy, adding that phone 2015.01.20. 8:26:22 numbers and email addresses remain the same.

NEW ITALIAN BUSINESS FORUM IN HUNGARY THE VOLUME OF TRADE BETWEEN ITALY AND HUNGARY The Italian Chamber of Commerce in Hungary has launched a new type of event under the title Business Forum. The speakers of the forums are important players in Hungary's economic and political life, presenting timely and interesting topics for the current Italian entrepreneurial sector present in Hungary.

The first Business Forum, with the theme ‘lack of labor force – the answers of the Hungarian government’, was held this April. The guest speaker of the event, Péter Cseresnyés, Secretary of State for Labor Market and Training described the strategies through which the government wants to keep a balance between labor demand and supply.

After an overview of employment in Hungary, Péter Cseresnyés said there is a natural economy and logistics unit between Western Hungary, Lower Austria, Slovenia, Bavaria and Northern Italy, an area that has the potential for the formation of a serious economic region.

He argued that Hungary would not like to be the country of cheap labor, and that is why competitiveness can now only be maintained through effective vocational training and modern technology solutions.

Answering the question whether, due to the wage increase, a number of companies that have operated in Hungary may

move production to another country, he voiced his hope not many companies will relocate. He added that it is a twosided process as workers are leaving the country because they do not receive adequate income and wage growth is occurring in Hungary independently of the minimum wage increase.

According to the Secretary of State, the 200-250 thousand people, who have moved abroad for work, are also a serious workforce reserve, and they will return to Hungary if income levels rise further and if they can maintain a standard of living they are accustomed to beyond Hungary’s borders.

The State Secretary's presentation was followed by a greeting speech from the Italian Ambassador Massimo Rustico. The meeting was attended by some important representatives of the Italian business community in Hungary, who participated in a conversation where the moderator was the Secretary General of the CCIU, Francesco Maria Mari. He highlighted that the volume of trade of between Italy and Hungary has increased recently and thus, Italy might move from the current 5th place to 4th place among the largest trade partners of Hungary. He stressed that it is an encouraging sign that for Italian companies cheap a labor force is no longer the largest attraction of Hungary.

C

M

Y

CM

MY

CY

CMY

K

8th June 2017 from 6 pm at Európa Boat Let’s celebrate together the 6th edition.

Last year over 1.900 confirmed guests! ...and in 2017?

More info: marketing@itlgroup.hu www.budapestbusinessparty.com

photos by DÁVID

HARANGOZÓ, COURTESY OF BRITISH EMBASSY

HAS SEEN A RECENT INCREASE

ENTRANCE 20.000 HUF or by personal invitation

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

23 itl.indd 23

|

D I P L O M A C Y

&

T R A D E

|

M A Y

2 0 1 7

23 4/30/17 4:03 PM

analysis

A LONG GOOD-BYE? THE BRITISH DIVORCE FROM THE EUROPEAN UNION

BY TAMÁS MAGYARICS

Free movements at stake The most pressing issues include, among others, the future of the observance of the so-called four freedoms within the EU, that is, the free movement of people, services, capital, and labor. Brussels has made it clear that the U.K. should respect them along with the jurisdiction of the Court of Justice of the European Union, the cooperation in EU-wide legislation, and adherence to the EU’s common trade policies until the conclusion of the Brexit talks. The last may hurt London the most, as the British government would like to negotiate a series of bilateral free trade agreements with a number of countries all over the world as soon as possible. The intention is clear: as Great-Britain is likely to lose some of its markets on the Continent, it would like to replace them and the sooner the better. (PM

24 24 magyarics.indd 24

May’s recent trip to the Gulf-region was an early effort to find new partners, though a few critics warned that the countries there may turn out to be ’tar babies’ for the UK.) In case there is no agreement until the conclusion of the Brexit talks, the WTO regulations will come into force automatically and they are not beneficial for the UK. The free movement of people is on top of the negotiating agenda on both sides: approximately four million British citizens live and work in the various EU countries, while there are millions of EU citizens who are employed in the United Kingdom, as well. Both sides promised that the status of these people would be settled for mutual benefit and satisfaction. The fact is that grass-roots pressure on the negotiating teams is likely to be quite strong in this question.

Irish and Scottish issues The border question between Ireland and Northern Ireland is also high on the imaginary list. A ’hard’ Brexit would mean a drastic dividing line along the 499-kilometer long border with customs houses, passport checks, and the like. Enforcement of these measures is a different question. The political stake is extremely high. It is not only about a border

No easy exit

line between an EU and a non-EU country, but a ’hard’ Brexit imposed on the ’emerald island’ might revive the dormant hostilities between the unionists and the republicans in Northern Ireland. The ‘Good Friday’ or Belfast Agreement of 1998 is partly premised on the open borders between Ulster and the 26 counties constituting Ireland; the still rather fragile peace between the opposing forces may come to an end with a dispute concerning the merits of being part of the UK or the EU. The Scottish National Party lost no time in making known its intention to hold another referendum on independence after London invoked Article 50. Nicola Sturgeon has stepped on to a perilous path. Her predecessor, Alex Salmon had to leave after the failed referendum in 2015; now, according to opinion polls, a majority of Scots prefer the UK to the EU. A potential Scottish independence is not the exclusionary concern of the rest of the UK: at least until now some Europeans, especially the Spanish, have not been so keen on seeing an independent Scotland – lest Catalonia or other provinces follow suit. It’s true that Madrid has lately dropped its opposition to an independent Scotland, but it may pull strings in the background to prevent it.

M A Y

2 0 1 7

|

D I P L O M A C Y

Money is also a bone of contention. The EU insists that the UK should pay its previously agreed contribution to the annual budget; the actual sum is some EUR 60 million. The British challenge the amount; however, the ultimate sum is likely to be closer to the EU demands than the British estimates. The financial obligations will definitely affect the UK adversely because trade with the EU countries is projected to decline by some 22-30%; investment may drop as well due to the uncertain economic environment, and the pound may also take a hit.

The picture is not so bleak in all walks of life. An agreement between the two parties on issues such as environmental protection, climate change, tax evasion, fair competition, and social policies does not seem to be out of reach. However, one should not forget that the EU’s overall strategy is to discourage other countries to follow the example of the UK. In other words, the guiding principle of the EU negotiating team is to demonstrate that life outside the EU is more difficult than inside.

st t o by SHUTTERSTOCK.COM

The Brexit negotiations may as well resemble one of the Raymond Chandler crime stories with their suspense, unexpected turns, and (political) dead bodies.

The big question, at the moment, is whether there will be a Philip Marlowe, who unties every knot and casts light on the motives of the dramatis personae. There is nothing certain in the Brexit negotiations: even the time frame is flexible as the two-year period can be extended practically indefinitely with a unanimous vote of the Council of Europe. Given the fact that serious talks are not likely to take place before the French presidential election in May, and the German parliamentary election in September 2018, real negotiations can only start as early as in the fall of 2018. What we are bound to see in the next few months or so in this question is a verbal war by the parties involved. Despite the sometimes combative rhetoric by the British politicians, the EU is in a much stronger position in the ensuing talks. It looks right now that what the British side may be forced to do is a Black Knight action from Monty Python and the Holy Grail after King Arthur has cut off each one of his limbs: “All right, we’ll call it a draw.”

One ’limb’ has already been severed from the British negotiating team. While London wanted to put the Brexit talks and the negotiations of the post-Brexit relationship between the UK and the EU on the table at the same time, Brussels unequivocally declared that the two issues can only be dealt with in sequence. Another potential question where the U.K. has been put on the spot is Gibraltar. Here foul play (by the EU) cannot be excluded, either. Prime Minister Theresa May did not mention Gibraltar in her letter which triggered Article 50 of the Lisbon Treaty – allegedly at the request of the EU. On the other hand, the President of the European Council, Donald Tusk in his reply hinted that the UK and Spain should settle the outstanding issues related to Gibraltar in bilateral talks – which London has rejected out of hand.

Tamás Magyarics is a foreign policy analyst

&

T R A D E

|

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

4/30/17 4:03 PM

witty leaks WITTY

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

LE A K S

[RE-]DISCOVERING HUNGARY PLEASANT EXPERIENCES IN AND OUTSIDE BUDAPEST

BY THE AMBASSADOR OF MOLDOVA, OLEG TULEA

Generally speaking, I like Hungary as a country, with its people, its culture and traditions and all it can offer, so that anyone visiting the country feels welcomed and in grace. In my official but also private life I met hundreds of nice and open Hungarians who showed their hospitality (which would also include great food and pálinka, of course), who showed me how proud they are for the country’s achievements, who love their history and cherish their traditions.

Hungary was the gate through which I have discovered the European Union as Budapest was the most convenient transit city when flying from the Republic of Moldova with MALÉV Hungarian Airlines to other destinations. There were good connections and a nice and small airport with good coffee and free Wi-Fi. When travelling by car with friends and after an exhausting 16 hour drive through Romania, we would have a stop in a small village near Szeged and the owner, ‘Mr. Sándor’ would serve us an extraordinary lunch or dinner that would consist traditionally of tasty gulyás and a big plate of flavored barbecue.

Even before moving to Budapest, I was lucky to meet nice and friendly Hungarians who made me discover a lot of similarities between Hungarians and Moldovans.

photos by

COURTESY OF EMBASSY OF THE REPUBLIC OF MOLDOVA

The wonders of Budapest I first came to Budapest ten years ago. Now, that I have settled in the Hungarian capital, I share the same feelings I had a decade ago.

The city has struck me - without flattery with its majesty, golden look and remarkable architecture. It is hard to decide what it is about this place that strikes you most: is it the hilly surroundings; the temerarious medieval type buildings that elevate along the Danube; the cosmopolitan environment embedding different cultures; the large squares and smooth roads; the diversity of cuisine; or the taste of wines? I’m not sure, to be honest, but all this together makes a good match to highlight Budapest as one of my favorite cities. Those who spent some time in this city know what I’m talking about.

My family liked Hungary as a country from the first step on the land. Budapest is a very vivid city with a diverse population of tourists and locals. During our living experience here, my family and I have learned a lot about the Hungarian culture, that it is a home to a plethora of art galleries and exhibitions of paintings. The Budapest cultural hotspot can satisfy many tastes to encounter the latest w w w . d t e u r o p e . c o m

25 witty leaks.indd 25

|

trends in Hungarian and regional art. The first exhibition I attended in Budapest in 2016 was the interesting ‘Out of Mind’ photo art exhibit of Pál Sárközy at the Abigail Gallery.

The museums in Budapest are amazing, offering something for all interest: history, art, nature or some unique exhibits. But not only. It gives you the opportunity to see some of the first class exhibits also. We have attended the ‘Transfigurations 1895-1972’ exhibition of Pablo Picasso exposed in the Hungarian National Gallery and were amazed by the in-depth inside of the paintings and statues demonstrating the transfigurations in the figural portrayal. I could have looked for good minutes one single face feature and re-discover new expressions of it.

As a whole, it impressed a lot as it was accompanied with the story telling of the life events of Pablo Picasso which added value to comprehending more deeply the genuine painting intentions of the artist.

We have also learnt there are many places to visit and there is always something to do

D I P L O M A C Y

for and with small children. We have visited Aquapark, thermal baths with pools, the Budakeszi Vadaspark, Tropicarium, took a long ride on the Children’s Railway, which is run by children under the supervision of adults but at the same time, they have a lot of fun doing different things from selling tickets to visitors to waving to them after the train has departed. It has seven stops, popular recreation spots, along its route.

Out of the city: Szentendre and Visegrád It is said that if you see only the capital, you have seen nothing of that country.

So, we, as true travelers interested to see the heart of Hungary decided to have trips outside Budapest. We were overwhelmed by the beauty of the forests, the animals we met at the edges and the straight sun warming and bathing the lands.

The first stop was Szentendre, a nice and cozy town with narrow streets, with a tasty smell of pastries and chocolate. By chance, we happened to participate in a festival celebrating the queen of the River Danube.

Again, it was an enchanting and memorable event for our children as they felt totally attracted by the festival being given on the spot to wear mermaids’ hats and tails, of a blue marine intense nuance and multicolored ribbons to attract the sight of the river fauna.

The festival was of a huge resonance as all passers-by got involved and sang together to bring back the queen of the river.

The next stop along the river was Visegrád, a place with great photographic view of the

Danube Bend from the small castle. Not far from the castle there is an arranged area with car riding for both adults and children. It was so much fun to have an electric car driven in a valley and then on a hill, it aroused adrenaline and lots of good mood. Down on the main road, there are several decent restaurants that serve tasty food and good coffee with desserts. The one we chose had a marvelous look, dressed up in brown oak wood, with a long terrace, and strong and heavy tables, with stylish white and red tablecloths. It smelled of freshly cooked fish, with a heady flavor, probably alerting the whole street of the goody they had. I think, we had the best fish soup we ever tasted.

Good wine Coming from a country with great tradition in winemaking, my interest was to find out more about wine production in Hungary.

I was pleasantly impressed with the local wine producers embracing the art of winemaking with traditions and culture when promoting their products. There was a nice occasion, an excellent wine exhibition, organized for Hungarian and Moldovan winemakers to meet and exchange their knowledge and experience of winemaking accompanied with traditional food and good music. I have to say most of the guests were equally overwhelmed by the quality of both Hungarian and Moldovan wines that cannot compete with each other but stay on the same shelf.

I invite you to taste them and I am sure you will want to have them for your special dinners with your friends and family.

When Budapest is Chisinau and Chisinau is Budapest When visiting a city, I am always interested in discover places that I have seen in movies.

When walking in Budapest, I took some time to find the downtown shopping arcade Párizsi Udvar where a memorable scene from Tinker Tailor Soldier Spy was shot. Unfortunately, I could not get in as the building is being reconstructed to be turned into a new hotel.

I was assured that after the reconstruction it will still be recognizable so I still can visit the place in the future. The military science fiction film Spectral was released last year.

Shooting began on August 28, 2014 in various streets and buildings in Budapest, relying extensively on practical effects and locations for an authentic, gritty atmosphere. The interesting thing for me is that - according to the screenplay - the action takes place in Chisinau, the capital of my country. So, in Spectral, BUDAPEST is CHISINAU!

&

T R A D E

|

M A Y

2 0 1 7

25 4/30/17 4:03 PM

what's on

CIRQUE DU SOLEIL: VAREKAI

N RINC

MAY 12 TO 14 AT THE BUDAPEST ARENA Cirque du Soleil is returning to Budapest with a 3-day engagement of Varekai, a captivating forest at the summit of a volcano inhabited by whimsical and enchanted creatures. The word Varekai (pronounced ver•ay•’kie) means “wherever” in the Romany language of the gypsies-the universal wanderers. Directed by Dominic Champagne, this production pays tribute to the nomadic soul, to the spirit and art of the circus tradition, and to those who quest with infinite passion along the path that leads to Varekai.

From a group of 20 street performers at its beginnings in 1984, Cirque du Soleil became a major Québec-based organization providing high-quality artistic entertainment. The company has 4,000 employees, including more than 1,300 performing artists from close to 50 different countries. Cirque du Soleil has brought wonder and delight to more than 160 million spectators in more than 400 cities, in over sixty countries on all continents. www.livenation.hu

MAY 12 AT THE HUNGARIAN STATE OPERA On the 100th anniversary of the premiere of Bartók's first dramatic work, composed to a libretto by Béla Balázs, a brandnew choreography of The Wooden Prince will be returning to the stage of the Opera on 12 May 2017.

Following the works by Ottó Zöbisch (1917), János Cieplinsky (1935), Gyula Harangozó (1939 and 1958) and László Seregi (1970), the new interpretation attempts to take a step in the direction of modernity, to resolve or even emphasize the contradiction straining between the childlike tale and the sophisticated music. This is the task undertaken by internationally recognized dancer and choreographer Pál Frenák, who, at the helm of his own ensemble, occupies a position on the world's cutting edge. The Wooden Prince will be his first project for the Hungarian National Ballet. www.opera.hu

I T RES

ALEXANDROV ENSEMBLE

HIGASHINO,

O RTES

MAY 28 AT PAPP LÁSZLÓ SPORTARÉNA As you may know, last year on December 25, while enroute to Latakia, Syria for a Christmas celebration, the Alexandrov Russian Army Song and Dance Ensemble lost 64 members, all but three of its choir singers, in a plane crash. After the initial shock, culture and military officials pledged to keep the ensemble alive by hiring a new choir and conductor. And so, the choir was reformed and announced the start of their Russian and European tour in spring 2017. Dubbed "Russia's singing weapon, the ensemble was originally born to serve and sustain the Soviet state by increasing the morale of the Red Army. Today, the ensemble carries on in the traditional sense of choirs and ballets, with singers, musicians and dancers. In the past seven decades, they have given more than 7,000 concerts on every continent to more than 20 million people. With classics such as The Song of the Volga Boatmen, Kalinka, Moscow Nights, Katyusha and the Partisan Song, the choir’s repertoire is composed of countless traditional Russian folk songs, sacred music and popular opera pieces. Their concert is complete with dancers and acrobats, who perform Russian folk dances, army dances and the worldfamous Cossack dances: their giant bounces, spins and crouches challenge the rules of physics, human anatomy and physiology. www.tickethungary.com

AR

22ND DANUBE CARNIVAL

NE S

HOTO SING E

I T RE

IRST

RIZE,

JUNE 3-17 DIFFERENT VENUES IN BUDAPEST This summer welcomes the 22nd Danube Carnival that is “traditionally all about traditions.” The most spectacular part of this multicultural fest is the Parade of up to a thousand dancers and musicians - both Hungarian and foreign folk ensembles, held this year on June 17. During this program, the Danube Promenade is crowded with youngsters, women dressed in traditional costumes of swaying, gathered skirts, starched blouses, and fitted bodices with ribbons in their hair and men in britches and brimmed, round, felt hats. Besides the outdoor programs taking place on frequented squares and streets in Budapest, breath-taking gala concerts will be held at the Városmajor Theatre on June 3-8, and at the Margaret Island Open Air Stage on June 16, starring the Hungarian State Folk Ensemble, the Duna Art Ensemble and the Dohnányi Symphonic Orchestra. www.dunakarneval.hu

26 26-27 whatson.indd 26

M A Y

2 0 1 7

|

D I P L O M A C Y

&

T R A D E

|

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

4/30/17 4:04 PM

ZO TÁN BA OGH

TI IDO ENI RE

GEE photos by

JUNE 1 AT THE BUDAPEST ARENA Following the triumphant success of his sold-out show last year, Hans Zimmer returns to Budapest to fascinate his fans again. His live concert tour started on the West coast of the U.S., continued in Australia and will end in Europe this summer. The German-born composer is Hollywood’s most in-demand and innovative film music composer whose 100 film scores have made over USD 24 billion at the box office. www.livenation.hu

I T RES

HANS ZIMMER

O RTES

THROUGHOUT THE YEAR Opening this May, the new cultural attraction entitled ‘Spirit of Hungaricum’ will offer the opportunity to experience the most unique aspects of Hungarian culture in the heart of Budapest, at Vörösmarty Square.

This unorthodox exhibition uses a technology named Augmented Reality to help the audience explore Hungarian history and industrial achievements. The beautiful venue of the exhibition is the Gerbeaud House, where you may also grab a Hungaricum Taste Box and try a few of the most famous foods and drinks from the country. In addition, a number of concerts and shows will be held every night, starring respected Hungarian musicians and performers. www.thespiritofhungaricum.com

A

SPIRIT OF HUNGARICUM

photos by

T OO PREMIER

what's on N MUS UM F STI A MAY DAY OF MUSEUMS

MAY 20 - 21 AT THE HUNGARIAN NATIONAL MUSEUM AND ITS NEIGHBORHOOD More than 120 museums come together each year in May during this festival, which allows visitors to take a virtual tour of each participating museum. Last year, up to 35,000 visitors were interested in the two-day event, which focused on ‘Walpurgis Night’ and its centuries-old folk traditions including witchcraft and fortune-telling. This year, the theme will be ‘Gardens and Museums.’ There will be plenty of entertainment, including live music, theater and dance shows. The Festival of Museums is a perfect family event. Admission is free. www.mnm.hu

35TH HUNGARIAN PRESS PHOTO EXHIBITION

UNTIL MAY 21 AT CAPA CENTER This year, 2,284 works by 234 photographers competed for the prestigious awards. Altogether 6,259 photos were submitted in single and series categories. Traditionally organized

by Tamás Szigeti, an exhibition of the winning photos opened on March 27 at the Robert Capa Contemporary Photography Center in Budapest, at Nagymező utca 8 presenting the cream of Hungarian photojournalism from 2016. www.capacenter.hu

DEE DEE BRIDGEWATER CONCERT

MAY 6 AT MÜPA There are those who marvel at the inexhaustible energy in the performances of the now 66-year-old Dee Dee Bridgewater. Others love her "classicism,” seeing in her the most authentic contemporary successor to the great female jazz singers of the past. Yet, we could rightly enthuse just as much about her extraordinarily varied shows and her professionalism; the way in which she "occupies” a huge stage within moments to conjure a performance before her audience of a thousand hues in both sound and performing attitude. Bridgewater has a rich pedigree not only as a singer but also in the theatre, which we can sense immediately in the way she moves on stage, in her communication with the audience and fellow musicians, and in her interpretation of songs. She knows exactly how to mesmerize her public, and those working with her on stage too. Those who have seen her joint concert with the world-renowned pianist Lang Lang may recall how she enchanted the Chinese star with her self-deprecation, humor and charm. Bridgewater is one of the sages of the genre and brings the same authenticity to her performances of standards (such as on her album dedicated to Ella Fitzgerald), French chansons and African music with traditional instrumental accompaniment. Her latest album sees her accompanied by a jazz orchestra, returning to the music of her homeland after excursions through Europe and Africa. On her 2017 tour and album currently in preparation, she goes all the way back to her city of birth: the still untitled record might be named after Memphis, since it assigns important roles to blues and R'n'B, as it brings to life the figures of Al Green, BB King, Otis Redding and the Staples Singers. www.mupa.hu

THRU MAY May marks the true beginning of the high season at Aggtelek National Park and Zemplén Nature Reserve. The Park celebrates a number of national and European holidays in May such as the Day of Birds and Trees and the National Children’s Day, with interesting walking tours and children’s programs. You may also participate in the 18th Szilvásvárad-Aggtelek Bike Tour: this year, in order to celebrate Bükk National Park’s 40th Birthday, the 75 km route departs from Aggtelek and ends in Szilvásvárad. Other programs include the Forest Tasting Tour, the Karst Adventure and you may test your bravery and creep silently in the woods during the Evening Tour. www.anp.hu

TI IDO ENI RE ZO TÁN BA OGH

ST EPHRAIM MALE CHOIR: ORI NTA UM N LIGHT OF THE EAST 2017

JUNE 11 AT BUDAPEST’S ST STEPHEN BASILICA Enter the refreshing and enchanting realm of Byzantine music at an exceptionally beautiful venue! The Saint Ephraim Male Choir is eager to discover lesser-known territories of the vast domain of Eastern Christian music and to deliver these gems to the audience. Tamás Bubnó, the artistic director of the Saint Ephraim Male Choir compiled a diversified program that includes Hungarian singer Bea Palya on stage along with Hungarian folk musician Balázs Szokolay Dongó. The concert will feature music from ancient Christian times and from various cultures of the three continents of Africa, Asia and Europe. www.szentefrem.hu

photos by

photos by

O RTES

I T RES

GEE

A

NE S

HOTO SING E

I T RE

IRST

RIZE,

AR

HIGASHINO,

O RTES

I T RES

TOUR IN THE AGGTELEK NATIONAL PARK

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

26-27 whatson.indd 27

|

D I P L O M A C Y

&

T R A D E

|

M A Y

2 0 1 7

27 4/30/17 4:04 PM

society Korean Cultural Days In cooperation with the Budapest Spring Festival, the Korean Cultural Center in Hungary organized a threeday series of rich and colorful programs presenting traditions and arts of the Republic of Korea in the Bálna cultural center for those interested in Korean culture.

Chinese Film Festival Organized by the Hungarian-Chinese Cultural Association, a selection of four movies from China's rich contemporary film production was presented in April at the Uránia National Film Theater in Budapest. The guest of honor at the opening ceremony was the international movie star Jackie Chan.

Butterfly Effect

DÁVID HARANGOZÓ

The Faur Zsófi Gallery in Budapest hosted an exhibition by Hungarian painter and graphic artist Csaba Fürjesi. The exhibition, entitled ‘Butterfly effect’ was opened by the Ambassador of Austria to Hungary, Elisabeth Ellison-Kramer as the Hungarian artist is currently living in Salzburg, Austria.

King’s Day Celebration

28 28 society.indd 28

photos by

In celebration of the birthday of King Willem Alexander, the Ambassador of the Kingdom of the Netherlands, Gajus Scheltema hosted a reception for members of the diplomatic corps accredited to Budapest, those of the Dutch community in Hungary and other guests at his residence in the Buda Hills.

M A Y

2 0 1 7

|

D I P L O M A C Y

&

T R A D E

|

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

4/30/17 4:06 PM

hospitality

IGNITE THE NIGHT!

KEMPINSKI HOTEL CORVINUS BUDAPEST CELEBRATES DOUBLE ANNIVERSARY RICH HERITAGE

This April, Kempinski Hotels celebrated 120 years of its establishment with ‘Ignite the Night’, a series of festivities designed to enchant and delight guests, as Europe’s oldest luxury hotel group marked this milestone anniversary.

A symbolic nod to Kempinski Hotels’ heritage, “Ignite the Night” launched with bespoke celebrations at Kempinski Hotel Corvinus Budapest on the eve of April 18. On this night, during a magical party, the redesigned conference center was introduced to the hotel’s partners as well as the trade and local press. The guests toasted a double anniversary, as Kempinski Hotel Corvinus opened in 1992, a quarter of a century ago, in the heart of the Hungarian capital. The 120th anniversary celebration has also seen the launch of the Kempinski Travel in Style Competition, offering the chance to win an exclusive 10-night trip for two people, in three Kempinski hotels, including flights, limousine transfers and suite accommodations.

European elegance Commenting on this landmark anniversary, Markus Semer, Chairman of the Management Board and CEO of Kempinski Hotels, said that “after 120 years, we’re delighted to pay tribute to an extraordinary past, and herald an exciting future. Our founder, Berthold Kempinski, paved the way for a new standard of hospitality, based on timeless European elegance and impeccable service. He created venues that introduced

Created in 1897, Kempinski Hotels is Europe’s oldest luxury hotel group. Kempinski’s rich heritage of impeccable personal service and superb hospitality is complemented by the exclusivity and individuality of its properties. Kempinski now manages a portfolio of 75 five-star hotels and residences in 30 countries and continues to add new properties in Europe, the Middle East, Africa and Asia. Each one reflects the strength and success of the Kempinski brand without losing sight of its heritage. The portfolio comprises historic landmark properties, award-winning urban lifestyle hotels, outstanding resorts, and prestigious residences. Each one is imbued with the quality guests have come to expect from Kempinski while embracing the cultural traditions of its location. Kempinski is a founding member of the Global Hotel Alliance (GHA), the world’s largest alliance of independent hotel brands.

guests to new experiences, in unique and original surroundings, and his innovative and entrepreneurial approach has remained the inspiration for our development over the years.”

The director of Kempinski Hotel Corvinus Budapest, Stephan Interthal highlighted that today, Kempinski manages and operates some of the world’s most iconic hotels, such as the Hotel Adlon Kempinski Berlin, the Emirates Palace in Abu Dhabi, and the

ira an ala e empinski in nstanbul. he brand is synonymous with elegant European service, blended with the individual culture and traditions of each destination. As well as the 120th anniversary, 2017 also marks the return of Kempinski to the Americas, with the opening of Gran Hotel Manzana Kempinski La Habana, Cuba’s first five-star luxury hotel. Housed in one of Old Havana’s most iconic buildings, the hotel will be the newest star in the Kempinski constellation.

“We have spent 120 years exploring the world, creating a constellation of remarkable havens to which guests can travel and stay in style, and we haven’t lost our thirst for discovery,” Markus Semer added. “Whilst we value and preserve our traditions, we will continue to develop new and innovative approaches to hospitality, so while celebrating our past this year, we can also look forward to a bright future.”

Ten Rooms The celebration of the mother company also provided opportunity for Kempinski Hotel Corvinus Budapest to present the results of the complete reconstruction of the first floor event venue, which is now referred to as ‘Ten Rooms’, completed at the end of March. During the EUR 2.1 million project, the latest technical and interior design solutions were used.

Following the transformation of the ground floor section in 2013, the hotel management decided upon an innovative renewal of the event area.

In the first stage of the project last summer, the former ballroom and the associated halls were completed. The second stage of work took place early this year and resulted in a significant interior re-decoration of the former salon side.

The works optimized the assets of the floor and built in high quality furniture and counters.

Thanks to the development, Kempinski Hotel Corvinus Budapest has become one of the most sophisticated conference technology providers in the five-star segment. The entire meeting space (all the rooms) of the Ten Rooms conference centre features the most state-of-the-art audiovisual network, which allows for intra-room AV communication via fibre-optic cables, at the speed of light.

FOR NEW SUBSCRIBERS to DIPLOMACY&TRADE YES! SEND ME ONE YEAR DIPLOMACY & TRADE SUBSCRIPTION (12 issues per year – including VAT and postage) at a price of

1 COPY: EUR 72 Name: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Company: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Address: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Phone: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fax: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

E-mail: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PAYMENT BANK TRANSFER

Account No: ING 13700016-03317013-00000000 Please, invoice me at the address: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Date: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Signature: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

photos by

PIXELTASTER.COM, ANITA NAGY, JAN PREROVSKY

Title:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

BUDAPEST WEEK PUBLISHING, DUAX KFT. 1034 BUDAPEST, BÉCSI ÚT. 60.

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

29 kempinski.indd 29

|

D I P L O M A C Y

&

T R A D E

|

M A Y

2 0 1 7

29 4/30/17 4:07 PM

gastronomy OTP Bank Gourmet Festival MA

-

AT MILLEN RIS PAR

This festival is famous for its high standards and is greatly appreciated by culinary adventurers for bringing the best flavors to one place from all around the country. First time this year, the fest will cross borders and host some of the best restaurants and chefs of the Central European region including Ana Roš from Slovenia, the world's best female chef. This year, two delightful ingredients will be in the center of attention: the indigenous Mangalica pig and in-season strawberries. You will also find high quality wineries, pálinka distilleries, breweries, confectionaries and gastro-manufacturers around. In addition, selected street food stands from the capital, new wave confectionaries, the best Asian flavors and very interesting talks and shows will ensure the exceptional culinary experience. www.sziget.hu/gourmetfestival

Glamping 2017

MA - NOS A - S T UTCA EGER AND THE B I NATIONAL PAR

Add a dose of glamour to your outdoor stay and choose a stylish and luxurious way to camp out! The Nomád Hotel & Campsite introduced glamping to the Hungarian audience in 2013, and ever since the establishment welcomes a growing number of visitors in its beautiful garden. So head to Noszvaj on May 28 for culinary and cultural delights, and to find harmony and peace. The program is free, but you are encouraged to register via the hotel's website. Do not forget to bring a blanket!

Rosalia Rosé Festival MA

-

AT

NEAR

ROSLIGET (CIT PAR )

Brought to you by the organizers of the prestigious Budapest International Wine Festival, Rosalia is Hungary’s only festival dedicated to rosé wines, sparkling wines and champagnes. During the three-day event, thousands of people meet at Budapest's City Park to welcome the upcoming summer with a few glasses of rosé wine. The fest features a Rosé Garden, with plenty of tasting, concerts, kids programs and traditional Hungarian food paired with your wine. A rosé wine challenge is also part of the event. Entry is free, however exhibitors will serve the wine only in Rosalia tasting glasses. (Stölzle crystal tasting glasses - with Rosalia logo - are available for 1000 HUF.) www.rosalia.hu

glamour camping LI E slow DRESS casual but stylish picnic OOD SUPPL Rosinante (Szigetmonostor), Palkonyha (Villány), Macok Bisztró (Eger), etc. INE Jani Bolyki, Dr. Imre Csernus and Nimród Kovács www.nomadhotel.hu

ST LE CODE

1146 Budapest, Városligeti tó (City Park) +36 1 422 0222 www.robinsonrestaurant.hu AVERAGE COST FOR TWO: HUF PRICE OF A BOTTLE OF WINE:

12.000 – 40.000 HUF 6.000 – 50.000

ROBINSONS IS LOCATED ON A SMALL ISLAND, in the most beautiful park of Budapest. The moment it opened in 1989, it quickly earned popularity among the citizens of the capital as well as the tourists. Numerous celebrities including Schwarzenegger, Stallone, David Bowie and Van Damme, have tasted the delicacies prepared in Robinson’s kitchen. The restaurant is popular thanks to the seductive mood of the terrace built on the lake, the light French cuisine and the steakhouse upstairs. Do not miss the Tuscan master Dario Cecchini’s steaks cooked on charcoal!

RECOMMENDATIONS

30 30 gastronomy.indd 30

M A

|

D I P L O M A C Y

&

T R A D E

photos by

– Beetroot marinated salmon, citrus salad, caramelized walnut, watercress, rocket sponge cake – Robinson ramen with pak choi, beef tartare and quail – BBQ Wagyu ribs, baked potato, chili pineapple – Lamb shank, cassoulet (bean stew with tomatoes), salty yogurt – Chocolate lava cake, rose ice-cream

ZSOLT SZIGETVÁRY, ÁRPÁD PINTÉR, PÉTER KÁLLÓ, KRISZTA FALUS, COURTESY PICTURES

Robinson Timeless Kitchen

|

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

4/30/17 4:08 PM

O

wine

HA J S

LAKE BALATON REGIONAL MARKETING EVENT IN BUDAPEST

H

O O

Grape

A

photos by COURTESY

PICTURES, PIXELTASTER.COM, PETER FREED, DÁVID HARANGOZÓ

IS PREPARING TO CONQUER THE WORLD serszegi F szeres a hie ed its first serious foreign su ess around twenty years ago when the eszm ly Hilltop inery s serszegi won hite ine of the ear in the ine hallenge. Sin e then, the ariety has also be ome in reasingly popular in Hungary, so mu h so that the nd ational serszegi F szeres ine ompetition was held this April in Solt adkert. he ariety s rosser, r. roly akony, also known as the great a uaintan e of the female soul, who unfortunately passed away in , dreamed of a ariety whi h was able, in his own words, to produ e a wine offering the same experien e to ladies as a bou uet of flowers. serszegi F szeres introdu es a totally new palate of aromas to the world s winery , later stated r. l ozma, o worker at the nstitute of iti ulture and ine esear h at the ni ersity of s, about his olleagues work. he ariety was born in the alaton plands and is su essfully ulti ated throughout the ountry howe er, it has found its true home in the uns g wine region. he Frittman inery, named ine rodu er of the ear in and inery of the ear in , has been paying parti ular attention to the ariety for years. serszegi F szeres really gi es the most beautiful aromas in this region, whi h is also demonstrated by the fa t that wines from here a hie e the highest results in the ariety s national ompetition , J nos Frittman says. e primarily wish to use it to make fruity, easy drinking wine. he enti ing range of serszegi F szeres s deli ious aromas mean it s be oming more popular not only as a wine, but also in spritzer or as sparkling wine. And although many people know that redu ti e, fresh serszegi is ust the thing, in reality they are not a tually simple wines. his is also demonstrated by the fa t that when aged in oak, it an produ e lo ely, full bodied wines, hara terized by notes of apri ot. erhaps few people know that using the right te hnology, the ariety is also suitable for late har esting. Frittman has for years been produ ing late har est serszegi F szeres from shri eled berries, a real w w w . d t e u r o p e . c o m

31 wine.indd 31

|

uriosity in the Hungarian dessert wine palette. en the great oka i winemakers are amazed at the hidden depths of this wine. he se ret is in the high dry extra t ontent of the grapes and the fa t that the a idity is beautifully maintained e en with high sugar ontent. his keeps the wine in balan e while the us at aromas are wonderfully preser ed , explained the ariety s ambassador.

A ording to J nos Frittman, we are at the forefront of the world as on erns similar aromati arieties howe er, the unpronoun eability of the ariety s name makes the sale of serszegi in foreign markets onsiderably more diffi ult. he name of the ariety always emerges as a problem on the export market, whi h is why we ha e issued a tender to sol e this. Anyway, the ariety s name does not express its hara ter in Hungarian either, as it is an aromati rather than a spi y ariety. An Ameri an Sommelier wrote in he all Street Journal that this wine is rather like Sau ignon lan and indeed do think it lies losest to that. am on in ed that on e we ha e a new name, we an su essfully laun h serszegi on the export market, as when presented abroad, the publi e erywhere really seem to like this spe ial Hungarian ariety.

D I P L O M A C Y

&

T R A D E

|

M A Y

2 0 1 7

n addition to the new intage of the alaton or brand, a few thoughts were also offered at the i ino ozsdu wine bar in the Hungarian apital about the possibilities of harmonizing udapest and alaton brands in the new ountry wide marketing, whi h is a high priority. he issue was addressed by udapest eputy ayor Alexandra Szalay obro ni zky, who opened the e ent. She emphasized that this omplex brand building by the Hungarian apital an only be strengthened by additional brands su h as the Sziget Festi al or alaton or. he owner of ostes owntown, roly erendai, who presented his reations to a ompany the wines, underlined that many people ha e had great ideas, but in the ase of alaton or, the gist of the idea is embodied in the produ t, itself. Andr s exa and ter ongr z, the ostes owntown team who prepared the omplimentary morsels, explained that we sampled the wines in ad an e, and we ha e found that the beetroot and goat heese ariations as well as the marinated ma kerel were a good hoi e for the fresh alaton wines. he frontwoman of the group argaret sland, iktória bas who herself is from Fonyód, a town on the southern shore of ake alaton , presented a surprise musi al performan e for the o asion. She sang about the winemakers in the alaton region and what they think about the modern ontinuation

FO

of traditions her performan e began with a wine and alaton themed bou uet of folk songs that gradually mo ed to a present day tune. he parti ipants of the e ent agreed that alaton or an be more than purely a sele tion of wines a symbol of a region it an be the ommunity brand and its flagship, whi h on eys important alues for people li ing around ake alaton. alaton or s premiere ga e a taste of regional marketing, whi h is unusually new in Hungary, and also presented the region s identity and ulture that pro ide a foundation for this marketing ampaign. he importan e of the latter was highlighted by the spokesperson for the alaton ir le, bor ardos, who pointed out that alaton is the region that draws a smile on the fa e of the ountry.

O A

n order to internationally promote high uality Hungarian wines, the inistry of Foreign Affairs and rade sele ted in the framework of a tender the list of wines that represent Hungary s wine ulture at Hungary s foreign missions and at re eptions of international delegations. inister of State szló Szabó emphasized at the announ ement that the past years saw Hungarian iti ulture go through a uality transformation but Hungarian wines ha e still not a hie ed the position they deser e in omparison with Fren h, ortuguese and talian wines. he sele tion in ludes wines from the regions of ór, tyek uda, oka , alatonf red, Somló, ill ny, ger and Szeksz rd.

31 4/30/17 4:10 PM

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

32 air canada.indd 3

|

D I P L O M A C Y

&

T R A D E

|

F E B R U A R Y

2 0 1 5

3 4/30/17 4:14 PM