Diplomacy & Trade 2018 October by Diplomacy&Trade

INSIDE SAUDI ARABIAN SUPPLEMENT

EUR 6

FREE OR FAIR? After more than a year of negotiating a new North American Free Trade Agreement (NAFTA), Canada, the U.S. and Mexico have finally concluded a trade deal called the United States-Mexico-Canada Agreement (USMCA). Our international analyst looks at the background: difficult negotiations and conflicting interests. SEE ARTICLE on page 10

Diplomacy-n-Trade.ai 1 2017. 02. 27. 11:22:30

Germany

2 9

771558

country 771558

Proximity,18006 not only geographically but also in terms of intercultural relations, greatly and positively influences German-Hungarian relations, 980700 according to the German Ambassador to Hungary, Volkmar Wenzel who talks to Diplomacy&Trade in an extensive interview about the importance of European cooperation and German-Hungarian 18007 contributions to it. He also comments on the ‘noteworthy commitment’ and the role of big 980700 German investors in Hungary.

FOCUS

18008 9

771558

3 9

771558

Executive World

980700

see articles on pages 12-25 CY CMY

In each issue, Diplomacy&Trade brings a top executive into focus in a personal interview about his or her career and professed values. This time, we present the Chief Executive 18009 Officer of Switzerland Tourism, Martin Nydegger. He is a fundamentally optimistic manager and points out that “what’s for me more important than anything else is that 980700 I enjoy my teams’ successes as much as they do.” see article on pages 8-9

OCTOBER 2018 HUF 1710

18010 9

771558

dt 2018 october.indb 1

980700

18011

10/4/18 1:37 PM

dt 2018 october.indb 2

10/4/18 1:37 PM

dt 2018 october.indb 3

10/4/18 1:37 PM

letter from the publisher

05 ON THE RECORD 06-07 COMPANY BRIEFS 08-09 EXECUTIVE WORLD

Martin Nydegger, CEO, Switzerland Tourism

10 ANALYSIS

North American free trade agreements

12-25 GERMAN FOCUS

Interview with Ambassador Volkmar Wenzel; Deputy State Secretary Petra Pánovics-Pana; AHK Ungarn; E.ON Hungária; TÜV Rheinland Intercert; Continental; Deutsche Schule; German National Tourist Board; Kempinski

26 DIPLOMACY

PUBLISHER

AND DON’T FORGET

monthly in print - daily on the web

www.dteurope.com

Hungarian and U.S. ambassadors meet; Conference on Saudi Arabia and the V4

4 dt 2018 october.indb 4

37 WITTYLEAKS by the Ambassador of Morocco

38-39 SOCIETY 40-41 WHAT’S ON

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

42 GASTRONOMY

Vogue; Pig slaughter sausage festival; Chimney cake festival 2018

43 HOSPITALITY You eat, we give

Diplomacy&Trade is preparing a special section on Poland for our November edition, in recognition of 2018 being the country’s jubilee year, marking the 100th anniversary of the country regaining its independence. The Polish Ambassador to Hungary, Jerzy Snopek has been here for close to two years. Economic relations between Hungary and Poland are flourishing, with higher amounts of direct investments by Polish firms on the Hungarian market and special attention being given to air travel. LOT Polish Airlines has a determining role in Hungarian air transport with its hub in Budapest. There are also significant new opportunities opening up in business and culture, in addition to those built on the old slogan of ‘Poles and Hungarians are two good friends’.

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

Aristocratic charm from Scotland 35 TRAVEL Thailand

POLISH FOCUS – COMING SOON

Bridgestone, Károly Árvai/kormany.hu, Mitko Sztojcsev/MFAT, Budapest Airport, Keystone/Gaetan Bally, Porsche Hungaria, E.ON Hungária, Zsolt Bocskay, Continental, Tamás Bujnovszky, Marcus Schreiter, Nóra Hunyadi, German National Tourist Board: Jens Wegener, Andreas Hub, Sarah Jonek, Ad Lumina Ralf Ziegler, Andreas Amann/Fotografenmeister, Endre Gradvolt/ENDIZAJN, Bence Németh/IFAT, Balász Grósz/www.megapixel.hu, The Lucian Freud Archive/Photo Tate, Benjamin Hardman, András Kollmann, Live Nation, Design Week, Anna Boyiazis, Peter Gannushkin, Vogue, Shutterstock.com, Csaba Schumy/dfp.hu, MTI Photos: Zoltán Máthé, János Bugány, János Vajda, Tibor Illyés, Boglárka Bodnár, Lajos Soós

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.

34 STYLE

Interview with Ambassador Pascale Andreani; AccorHotels; Decathlon; JOON

CONTRIBUTORS: Sándor Laczkó, Tamás Magyarics, Réka A. Francisck, Karima Kabbaj, Dorottya Tima PHOTO CONTRIBUTORS: Depositphotos.com (Cover), Keystone/Gaetan Bally (Cover/Executive World), Depositphotos.com, Péter Csajághy, Laokoon Filmgroup,

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

page 28

28-33 FRANCE

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

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

The new French ambassador to Hungary, Pascale Andreani

page 35

We welcome inquires for advertising in this issue. PLEASE CALL TAMÁS VARGA FOR FURTHER INFORMATION +36 209350250 - tvarga@budapestweek.com O C T O B E R

2 0 1 8

D I P L O M A C Y

T R A D E

PÉTER CSAJÁGHY, ZOLTÁN MÁTHÉ/MTI, DÁVID HARANGOZÓ, DEPOSITPHOTOS.COM

Peter Freed

contents What Hungarian tourists like in Thailand

page 26

photos by

It seems the business of diplomacy and trade got off to a good start in September, after the summer holidays, and all indicators seem to suggest a strong fourth quarter. One great unknown is what effect the Budapest City Council announcement of the closing of the Chain Bridge and tunnel for 18 months will have on the already traffic choked business district. Will this be a boom for teleconferencing? Our cover story features a look at the just agreed to trade agreement between US, Mexico and Canada. It is sure to be an election issue in the upcoming Canadian and US elections. The country in Focus in this October issue is Germany, Europe’s financial powerhouse and Hungary’s most significant investor, in recognition of the anniversary of German reunification. The German Ambassador to Hungary, Volkmar Wenzel talks about the importance of European cooperation and German-Hungarian contributions to it. He has been here for a year now and, during this period, several new German investments have been announced or have actually been started, including those of Mercedes, Bosch and BMW. We also present bilateral relations as seen by the German-Hungarian Chamber of Industry and Commerce, while the Hungarian view on these ties is expressed by Deputy State Secretary Petra Pánovics-Pana. The featured CEO in this edition’s ‘Executive World’ section is the head of Switzerland Tourism, Martin Nydegger, a man of international tourism experience, strategic expertise and cosmopolitan spirit. We also have an interview with the new French Ambassador, Pascale Andreani who represents the 5th largest investor country to Hungary. She says her objective here is to achieve better political understanding between Hungary and France through genuine dialogue. Our diplomacy page features the now traditional meeting between the U.S. Ambassador in Budapest and the Hungarian Ambassador to the United States as well as a Budapest conference between Saudi Arabia and the Visegrád countries. The WittyLeaks column is authored by the Moroccan Ambassador Karima Kabbaj who writes about her fascination with the variety of programs and activities Budapest can offer. In Style, you can learn about the story of tweed as a fashion statement, the tourism page reveals what Hungarian tourists like in Thailand and you can also read about something truly Hungarian: the chimney cake festival. Of course, you can also find the usual program guides and Society compilations.

Hungarian and U.S. ambassadors meet in Budapest

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

10/4/18 1:37 PM

on the record

Airbnb’s market share of overnight stays soared in Budapest from 10.2% in 2016 to 14.3% in 2017. As a result, Airbnb market share is among the highest in Budapest compared to other major European cities. Its market share is 15.2% in Paris, Barcelona 13.2%, Amsterdam 11.7%, Madrid 10.1%, London 6.9% and in Berlin 6.5%. Currently, the Airbnb letting market is mostly concentrated within the downtown area – District V, VI and VII – followed by districts VIII, IX, XIII and I. However, Airbnb room demand is also insignificant in all Budapest districts. In Budapest, the majority of listings are offered by hosts with more than one listing: around 65% of listings are offered by hosts that have at least two listings, which is much higher than the 40-50% average multilisters ratio across most other European cities. Similarly, to previous years, in 2017 the entire home rentals with one room were the most popular choice; 55% of all bookings were made in this segment. As Tamás Steinfeld, Associate Director and Head of Research at Colliers International Hungary pointed out, “we expect that the Airbnb market will continue to grow further in line with the expanding tourist market. However, we note that the development pipeline in the hotel segment is quite strong for the upcoming two years and that may offset the increasingly larger market share of Airbnb.”

November

photos by

DEPOSITPHOTOS.COM, JÁNOS BUGÁNY/MTI, DÁVID HARANGOZÓ, LAOKOON FILMGROUP

UNINTERRUPTED RISE IN CARD PAYMENTS IN HUNGARY

At a 25% escalation, the strong increase in the volume of payment card transactions continued in the second quarter (Q2) of 2018, according to a statement by National Bank of Hungary. Within this, contactless purchases continued to gain ground, with the new technology accounting for more than three quarters of total payment card transactions. Turnover of the payment and settlement systems rose significantly both in comparison with the previous quarter and the same period of 2017. In 2018 Q2, the number of payment accounts managed by payment service providers was nearly 10.6 million, representing a slight increase relative to the previous quarter. Within this, the number of consumer accounts used primarily for payment purposes was more than 6.6 million. The number of domestic payment cards, at nearly 9 million, was broadly unchanged; however, the number of contactless payment cards continued to rise. As a result, nearly 77% of domestic payment cards offered contactless payment functionality at the end of the quarter. The number of POS terminals operating at physical merchant acceptance points increased by more than 6% in Q2 relative to the previous quarter. The increase in the number of online acceptance points, at a 4% increase, was slightly more modest. 86% of the 146,000 terminals in operation offered contactless payment functionality at the end of the period. The volume of transactions conducted in the domestic acceptance network increased by more than 25% in 2018 Q2 relative to the same period of 2017. As a result, around 190 million transactions in a total value of HUF 1,355 billion were conducted with domestically issued cards in Hungary.

HUNGARIAN SUCCESS AT THE EUROPEAN SOLAR CHALLENGE

The solar panel car developed by the University of János Neumann in Kecskemét finished third at the European Solar Challenge, the biggest competition for electric cars in Europe. The MegaLux, created by the professors and students of the technical and computer science faculty of the University, traveled a total of 878 kms in 24 hours, powered exclusively by electric drive. The Hungarian youngsters were assisted by Bridgestone Hungary with ultra-light and low rolling resistance tires specially designed for the competition. MegaLux had already achieved enormous success at the World Solar Challenge in Australia and the South African racing competition Sasol Solar Challenge, where they also finished third. Since then, young engineers have upgraded the supercar, resulting in a new chassis and suspension for the car to travel at high speeds on racetracks. The other parameters of the car remained unchanged: solar cells of only six square meters accumulate the energy stored in a 20-kg lithium-ion battery. They made good use of the battery as the competition took place in the rain. Tires' rolling resistance can absorb up to 20% of the energy consumed by a car running at a speed of 80 km/h. For years, Bridgestone has been helping the Kecskemét team to reduce this. Designed by Bridgestone specifically for electric cars, the Ecopia Ologic tire's large diameter and narrow width reduce tire drift and the energy loss associated with it. With higher tire pressure, the tires' rolling resistance is 30% lower than that of conventional tires. The tire weighs only 1.5 kg, meaning that it is also a major contributor to reducing vehicle weight.

Airbnb activity in Budapest showed strong growth in overnight stays in 2017, reaching almost 1.5 million, which represents an increase of 35% year-on-year. The top three neighborhoods account for 69% of the total Airbnb bookings in Budapest, says the latest Budapest city report on Airbnb released by Colliers International and Hotelschool The Hague.

dt 2018 october.indb 5

D I P L O M A C Y

Cyprus

National day

China

National day

Nigeria

Independence day

Germany

National day

Iraq

National day

Korea

National day

Taiwan

National day

Cuba

Independence day

Spain

National day

Azerbaijan

National day

Hungary

National day

Zambia

Independence day

Austria

National day

Czech Republic

National day

Turkey

National day

Poland

Independence day

Angola

Independence day

Latvia

National day

Morocco

National day

Oman

National day

Lebanon

National day

Albania

National day

PRINCE ANDREW VISITS BUDAPEST

35% GROWTH IN OVERNIGHT STAYS ON THE AIRBNB MARKET

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

UPCOMING NATIONAL DAYS October

T R A D E

O C T O B E R

2 0 1 8

Prince Andrew, the second son of Queen Elizabeth II, was in Hungary on a three day official trip this September. The Duke of York was welcomed by Ambassador Lindsay and met – among others – with Hungarian President János Áder and Prime Minister Viktor Orbán. The focus of these meetings was education, science, technology and engineering. In addition to his high-level meetings, the Duke opened the International Civil Engineering 200 conference, held at the Hungarian Academy of Sciences marking the 200th anniversary of the Institute of Civil Engineers (ICE), of which he is a patron, and the European Year of Civil Engineers. Together with President Áder, he presented The Tierney Clark Award – a prestigious civil engineering award – to the team behind the recently inaugurated Mosoni-Duna Bridge in Hungary. At Budapest’s National Public Service University (NKE), he opened a British-Hungarian workshop on public sector social responsibility which the NKE organized jointly with the University of Birmingham. Prince Andrew also visited Budapest’s first ever integrated gym where he met Paralympians who competed at the London 2012 Paralympic Games. The Duke ended his trip by attending the final of the international Pitch+Palace start-up competition where he met members of Hungary’s science and technology start-up community. The Pitch+Palace project, founded by Prince Andrew himself in 2014, is aimed at aiding the development of innovative start-ups and ideas in the UK and around the world.

HUNGARY ENTERS MOVIE FOR ACADEMY AWARD NOMINATION

The Hungarian Oscar Selection Committee has announced that Hungary will enter the movie ‘Sunset’, directed by László Nemes, to be considered for nomination in the ‘Academy Awards – Best Foreign Language Film’ category. “'Sunset' is about a civilization at its crossroads. In the heart of Europe, at the height of progress and technology, without being written in history, the personal story of a young woman becomes the reflection of the birth of the 20th century. The film follows from close range its main character, Irisz, allowing a very intimate approach to the drama. From the outset, I imagined this movie as a way to plunge the viewer into a personal labyrinth of obstruction along her quest to find her brother and ultimately the meaning of the world she wants to discover.” (Director’s statement) Produced by Laokoon Filmgroup (Hungary) and Playtime (France), with the support of the Hungarian National Film Fund, 'Sunset' was made on a budget of EUR 9 million (USD 10.4 million). 'Sunset' was premiered in competition at Venice International Film Festival and awarded FIPRESCI Jury Prize for Venezia 75 Competition’s Best Film. The North American premiere was held on 8 September at Toronto IFF. ‘Son of Saúl’, a 2015 Hungarian drama, the previous movie by László Nemes, won the award for Best Foreign Language Film at the 88th Academy Awards in 2016 and the Grand Prix of the 2015 Cannes Film Festival.

5 10/4/18 1:37 PM

company briefs NEW BRIDGESTONE PROJECT IN TATABÁNYA

LUCART CELEBRATES THE INAUGURATION OF ITS NEW PLANT IN HUNGARY Italian manufacturer of hygiene paper products, Lucart is strengthening its market leading position from Hungary. The Italy-based paper mill has opened a new plant in Nyergesújfalu, northwestern Hungary, through an investment of EUR 19 million, to supply the regional market with high-quality hygiene paper products. Lucart is committed to the use of environmentally friendly materials, and considers sustainable manufacturing a priority, which will all be of key importance in the life of the new unit as well. The Italian family-run business has existed for six decades. As a market leader European company, Lucart makes MG paper and multiple hygiene paper products for households. In its ten production plants, out of which five are located in Italy, three in Spain, and one in France

6 dt 2018 october.indb 6

to 2017 data, the company employs more than 142,000 people globally. In Hungary, Bridgestone manufactures approximately 5 million tires and tubes per year,

REHAU TO BUILD ITS SECOND PLANT IN HUNGARY

The foundation stone has been laid for the latest Hungarian production unit of Rehau in Újhartyán, southeast of Budapest, as part of the firm’s international expansion strategy. The market leading Swiss-based automotive supplier, which specializes in polymer solutions, will establish its plant through an investment of EUR 150 million, making it the most modern in the company's global network. The plant in Újhartyán will create over 700 jobs to manufacture varnished external components for the car industry. With the stone-laying ceremony, a strategic cooperation agreement was concluded between the company and the Hungarian government. With its seven decades of expertise, Rehau has become a top supplier of polymer-based system solutions for the building and automotive industries, and for a number of other sectors, as well. Its product portfolio covers, among others, closing and curtain wall systems, conventional and renewable energy based heating-cooling systems, water and other pipeline systems, industrial pipelines and district heating systems. Today, the Swiss-based company is present on five continents, in over 50 countries, with more than 180 factories and sales offices. In 2017, the company group recorded a turnover of over EUR 3.5 billion, providing jobs for 20,000 employees worldwide. Rehau has had a sales office in Hungary for 25 years as well as a plant in y r ith a or force of o er people focused on the production of plastic goods. In parallel with the investment in Újhartyán, new developments have started in y r ith an in estment of U million, which are expected to lead to larger capacity and the creation of an additional 100 jobs in the automotive district in the city.

and Hungary each, it gives work to more than 1,500 employees to manage the manufacturing of 360,000 tons of paper products every year. Sustainability is a core value for Lucart, therefore, with its circular economy policy, it is dedicated to being actively involved in the promotion of environment-friendly paper production. Five years ago it launched its ‘Natural’ project, through which 3.6 billion one-liter beverage cartons were recycled, saving as many as 1.6 million trees from being cut down. Recycled materials became ever more influential at Lucart when, in 2017, they surpassed the proportion of crude pulp in the manufacturing processes. Lucart entered the Hungarian market of hygiene paper products in 2016 with the acquisition of Bokk Paper. Now, to better serve the Central and Eastern European, and the Hungarian market, the Italian company has decided to open a new plant in Nyergesújfalu at the River Danube. This unit, covering an area of 12,000 square meters, will produce toilet paper, industrial paper rolls, medical sheets and hand-towels. The investment of EUR 19 million is expected to create 70 new jobs.

JÁNOS VAJDA/MTI, BRIDGESTONE, TIBOR ILLYÉS/MTI, BOGLÁRKA BODNÁR/MTI

Spinto Hungária, specializing in the manufacturing of large-size tools, has celebrated the inauguration of its first plant in Miskolc, NE Hungary. Aware of the scarce production capacity and the ever more intensifying market outlet, which is particularly typical of the automotive field, the independent tool factory may have found a niche to exploit, with remarkable demand on a regional level. With Spinto's investment of around EUR 19 million, the Hungarian tool production sector is now uniquely prepared to cover the entire size spectrum, which may eventually attract more of the automotive industry to Hungary. As a report by the Hungarian Investment Promotion Agency (HIPA) notes, following the change of the political system at the end of the 1980s, with the disintegration of the big factories of the previous decade (e.g. Csepel Works), vast knowledge and tradition were lost in the tool industry both in Hungary and in Europe. Even though, in recent years, the market experienced the rise and emergence of several companies ready to prepare small and medium-sized tools on the continent, the capacity for the manufacturing of XXL-sized items has remained rather low in the region, despite the overwhelming demand. With the new Spinto plant, which undoubtedly helps fill the present gap on the market, the Hungarian tool manufacturing industry has become unmatched in being able to cover the entire spectrum. This does not only enable Spinto, as the only large tool manufacturer in the region, to take on complex tool delivery projects, but also serves as an outstanding perspective for car manufacturers – already present in or about to come to the country. The plant and the technology, as the purchased assets of the investment, are of the highest possible standard since the plant uses Industry 4.0 technology. The production hall of 5,000 square meters is fit to host the manufacturing of tools of 60 tons, as opposed to the former 15-20 tons maximizing the earlier production capacity.

primarily for premium-category vehicles, with high speed index, under the Bridgestone and Firestone name brands, in more than 230 sizes. In the past decade, the Japanese company has invested about EUR 430 million in the construction and technological development of the second plant of its factory in Tatabánya to make it one of the most modern plants internationally. As part of this investment program, EUR 29.5 million will now be spent on the construction of a new storehouse in addition to dressing areas and education rooms, increasing the total storage capacity to 600,000 tires. Production will also be enhanced, well on the way to the capacity of 7.2 million tires per year that is targeted for 2020 – fourfold of the capacity of ten years ago. The expansion also affects the number of employees, growing to 1,300 and confirming the company's position in Komárom-Esztergom county as one of the major employers.

photos by

TOOL FACTORY INAUGURATED IN MISKOLC

Japanese tire manufacturer Bridgestone is implementing the largest investment program of its history in Hungary: in the 2013-2020 period, they are making a HUF 85 billion (EUR 274 million) investment in several phases. The company's plant in Tatabánya, west of Budapest, is one of the most modern among the 180 factories around the world. Its area has tripled in the past decade (144,400 m2) and its capacity is expanding fourfold of the original by 2020 (7.2 million tires per year). The main activities of Bridgestone are the production and development of tires, which makes up 80% of its products; they also make rubber parts of vehicles, industrial rubber products, chemicals, and sports products. Bridgestone has more than 180 factories and research and development (R&D) centers in 26 countries; its tires are sold in 150 countries. According

O C T O B E R

2 0 1 8

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

10/4/18 1:37 PM

company briefs BUDAPEST AIRPORT EXPANDS TERMINAL 2

Pier B, a brand new passenger terminal section of more than 10,000 square meters adjoining Terminal 2B, was inaugurated this September at Budapest Airport. Going forward, the facility will be used to handle non-Schengen flights, including the wide body aircraft flying intercontinental long haul routes to North America, China and the Persian Gulf. The construction of the latest airport development project lasted only one and a half years. The first concrete slabs ere bro en on March , by the main contractor, p t Co. Ltd., and the first flight, a Wizz Air service to Astana, departed through the new gates just 17 months later, on August 1, 2018. Since then, the building has been opened to passenger traffic gradually. The total cost of the project is HUF 7.8 billion (EUR 25 million), which Budapest Airport financed from its own resources. The new facility was very much needed as Budapest Airport has seen double-digit growth, often reaching 14-15%, in passenger numbers continuously during the last four years, with an even greater increase in non-Schengen traffic. This summer, 44 airlines offered direct flights from Budapest to 130 destinations, with another record broken in August, as 1,527,620 arriving and departing passengers were registered. “All this makes Budapest Airport one of the fastest growing airports in Europe over the last few years and it clearly demonstrates the success of our aviation strategy and all our related airline marketing and route development initiatives and efforts,” Budapest Airport CEO Jost Lammers emphasized during the inauguration. “Of course, our success goes hand in hand with the overall success and strong growth of the whole country in recent years and we will do our utmost to continue contributing to the successful development of Hungary,” he added.

The Hungarian government has concluded a strategic partnership agreement with the American company BorgWagner, one of the world’s largest manufacturers of turbochargers. In a statement to the Hungarian news agency MTI prior to signing the agreement, Minister of Foreign Affairs and Trade Péter Szijjártó stated that “the agreement further increases the presence of American enterprises in Hungary, in addition to which it reinforces the automotive industry’s supply base, thanks to which the automotive industry can assure that economic growth remains in the over 4% range”. Investments in the Hungarian automotive industry have gained even greater impetus, “there is no slowing down,” he added. “The sector’s production value already broke all previous records last year, exceeding HUF 8,000 billion (EUR 24.7bn). This year it will exceed 9,000 billion, and next year it will be even higher, exceeding HUF 10,000 billion (EUR 30.9 billion),” he indicated. He also pointed out that the Hungarian automotive industry employs 168,000 people, and the sector’s competitiveness is clearly indicated by the fact that 91% of the automotive industry products manufactured in Hungary are sold on foreign markets. “29% of industrial production is now derived from the automotive industry,” he added. Thanks to its investments, BorgWarner’s plant in Oroszlány, west of Budapest, is now the American company’s second largest factory worldwide, providing jobs for 1700 people in Hungary, and is a first tier supplier for the world’s largest automotive industry enterprises. The Minister of Foreign Affairs and Trade underlined that the company’s cooperation with education institutions and its wide-ranging use of Hungarian suppliers also justified the signing of a strategic partnership agreement with the government.

KÁROLY ÁRVAI/KORMANY.HU - MITKO SZTOJCSEV/MFAT - UDAPEST AIRPORT - LAJOS SOÓS/MTI

ELECTRONICS PLANT CAPACITY ENLARGED IN TATABÁNYA

photos by

STRATEGIC PARTNERSHIP AGREEMENT WITH BORGWAGNER

US-based Sanmina-SCI, which is a key participant in the electronics sector, announced to launch a capacity-expansion project in Tatabánya. With this investment of EUR 20 million, concentrating on the manufacturing of automotive electronics, it will not only create 220 new jobs, but generate a 50% increase in the volume of the electronic equipment that is produced and tested for the most popular vehicles, communication systems and medical products in the world. Being a top representative of the electronics and electro-mechanical sector, Sanmina is present on 6 continents in 25 countries, and employs a total of 43,000 people in its 75 factories. Also listed on the New York Stock Exchange, the company could boast with an annual turnover of over USD 6.8 million in 2017. It was 20 years ago that Sanmina decided to open its new European plant in Hungary. The first hall, of 10,000 square meters, was built in 1997 in Tatabánya as part of a greenfield investment, which was followed by an additional construction of the same size three years later. As a next step in 2006, the company purchased the abandoned production hall next to its establishment, which made it possible to quadruple the original production area. Benefiting from the HUF 7 billion spent on developments during the past five years, the base in Tatabánya is now reported to have become the largest in Europe. As its main activity, it focuses on the production of electronic circuits. According to the Hungarian Investment Promotion Agency (HIPA), as many as 1,700 US-based companies provide work to 100,000 employees in Hungary. Only last year, successful negotiations by HIPA resulted in a total investment of almost USD 130 million, coming from 10 overseas giants, such as Modine and Alcoa.

HUNGARIAN PHARMACEUTICAL FIRM INAUGURATES NEW BUILDING Hungarian-owned company Béres Pharmaceuticals Co. Ltd. inaugurated a new building at its plant in Szolnok in late September. Participating at the opening ceremony, Prime Minister Viktor Orbán congratulated Béres Pharmaceuticals on its latest HUF 3.2 billion development, for which the government provided about 40% of the cost, a nonrepayable grant of HUF 1.3 billion from its large companies investment support program. The project has created 37 new jobs, and as a result, the number of local people employed there has risen from an initial figure of 64 to more than 300. The Prime Minister highlighted that the pharmaceuticals industry is both one of the Hungarian economy’s drivers and one of its most innovative areas. He said that the goal is to achieve further expansion in the sector, and for its share to increase from its present level of 6% of gross national product to 8%. w w w . d t e u r o p e . c o m

dt 2018 october.indb 7

D I P L O M A C Y

Speaking on World Pharmacists Day, the Prime Minister highlighted that in Hungary, the sector directly provides jobs for some 14,000 people and indirectly provides support for 34,000 families. The Prime Minister praised the Béres family’s success story, saying that amidst keen market competition the only path to success is the development of new products and the updating of existing ones. “We need many more of these stories in Hungary,” he said. At the inauguration ceremony, the President of Béres Pharmaceuticals, József Béres said that the

T R A D E

O C T O B E R

2 0 1 8

project involved the purchase and conversion of a disused 2,500-square-meter food industry facility, which has been turned into a modern quality-control laboratory built to the highest standards. The associated infrastructure development comprises the installation of analytical testing, R+D and production equipment, an enlarged R+D base, and floor area enabling the production of new products. He added that domestic sales account for the majority of the company’s sales revenues, 20% of which now comes from exports.

7 10/4/18 1:38 PM

Nydegger MARTIN

CHIEF

A native of Bern, Martin Nydegger (47) has been the CEO of Switzerland Tourism

EXECUTIVE

since January 2018. In this function, he is responsible for the strategy, operations

OFFICER OF

and development of the Swiss national tourism organization. Switzerland Tourism

SWITZERLAND

is a federal public corporation with the mission to promote Switzerland as a holiday,

TOURISM

travel and conference destination both at home and abroad.

WRITTEN BY SÁNDOR LACZKÓ Martin Nydegger has been a member of the Executive Board of Switzerland Tourism since 2008 and was in charge of Business Development until the end of 2017. He previously managed the branch office of Switzerland Tourism in Amsterdam for three years. Prior to joining the organization, he held a number of positions in the tourism sector, including six years as Director of the Engadin/Scuol Tourism Board. Trained as a marketing specialist at the University of St.-Gall in Switzerland, he holds an Executive MBA in Strategic Corporate Management from Strathclyde University in Glasgow.

photo by KEYSTONE/GAETAN

BALLY

Diversity and beauty

8 dt 2018 october.indb 8

Having spent basically all of his business career in tourism, even before joining Switzerland Tourism 13 years ago, he explains to Diplomacy&Trade what attracts him the most in this industry. “Surprisingly, it is the military service in Switzerland that got me interested in tourism: as a military driver, I travelled all over Switzerland and was seduced by the diversity and beauty of our country. My many driving trips made me want to participate in promoting these assets. So, I trained at the School of Tourism in Samedan and then had the opportunity to do a six-month internship in Botswana as a safari guide; a second one-semester internship at the Taj Mahal Hotel in Mumbai, India, where I held various positions. All this allowed me to improve my knowledge of the hotel business.” Now with over twenty years of experience in the Swiss tourism industry, he says his main driving force is his passion for all aspects related to the development of ‘Swiss made’ tourism products and services, i.e. without any compromise on quality. “At Switzerland Tourism, I feel that I – with a wonderful team – can shape the future of Switzerland as a destination; I can collaborate with many partners to create a welcoming environment for our current and future guests and take advantage of new trends and technologies. But what still amazes me in this industry is the passion of people who sell Switzerland. Even in a society where technology is ubiquitous, tourism is, and will remain, a people’s business, where our aim as tourism providers is to make travel dreams come true.”

Challenges Outsiders might say that Switzerland basically sells itself as a tourist destination but the CEO disagrees. “It may have been so a hundred years ago when competition in tourism was not so fierce as it is today, but we are now competing with over 180 countries and we are also confronted with many challenges, which can be of an economic nature – our strong currency is not an advantage – and this has had a strong negative impact on the development of tourism coming from Europe in the last few years. The tourism industry is also very exposed to various geopolitical risks, to environmental changes, and, last but not least, the way people travel, as well as their expectations, are changing at a fast pace. One of the main challenges that I see nowadays for tourism in Switzerland is its capacity to adapt and offer our guests increased convenience and efficiency.”

Best candidate The Board of Directors of Switzerland Tourism appointed Martin Nydegger to this top position because he “proved to be the candidate who best met the criteria defined for the position.” The CEO believes that the set of skills he brought when he was chosen – almost a year ago now – met the expectations of the Board to implement a smooth transition after his predecessor and the fact that he is at ease with multiple disciplines of tourism was probably a big plus. “Switzerland Tourism is not just a marketing company, it’s an organization embedded in a tight network of partners. To efficiently serve its interests, you have to know these structures and be able to have a say everywhere. My previous experience as head of business development, where strategy was a central part of my work, also probably played a role in the Board’s final choice.” Mentioned among his merits are international tourism experience, strategic expertise and cosmopolitan spirit. “I’ve always had a thirst for the discovery of new cultural horizons. This probably started with my first two internships right after I completed tourism school in Switzerland and had the opportunity to go to Botswana and then India. Actually, I met my first wife in India and even though we came back to Switzerland together, I was always living between two cultures. My second wife, who now lives in Switzerland, comes from Chile. Through her eyes, I see Switzerland in O C T O B E R

2 0 1 8

a different light. As a tourism specialist, you very often travel the world not physically, but through the people you meet who come from around the world. I’m interested in people, and this is important for my job, which is very much about building relationships with partners all over the world. I’m an ambassador of Switzerland as a tourism destination, so I hope I’m a cosmopolitan…,” he adds.

Fundamentally optimistic As for his managerial philosophy, Martin Nydegger says he is a fundamentally optimistic person. “My role as director of a tourism office, later head of the Dutch market and director of the business development department for Switzerland Tourism, has taught me that ideas that seem unrealistic can transform into high quality tourism offers. An example of an idea that first seemed ‘crazy’ to realize, is the Grand Tour of Switzerland; this 1,600 km long itinerary is designed for visitors who are discovering Switzerland by car. Launched in 2015, it is now fully equipped with charging stations for electric vehicles, in collaboration with many hotels along the route. I see my role as a coach who leads people to come up with new ideas. What’s for me more important than anything else is that I enjoy my teams’ successes as much as they do.” As far as the tourism industry is concerned, he is of the view that it has undergone massive changes since he began working in it. “Nowadays, much more flexibility is needed, you have to have the ability to make decisions faster and to cooperate increasingly with various partners, those coming from our industry or other horizons. To keep up with this constantly changing environment is a life-long learning process, which includes stepping out of your comfort zone on a regular basis.” He adds that his Executive MBA degree in Strategic Corporate Management did not only allow him to learn new techniques, methods and skills; more than anything, it taught him to better prioritize and work hard. “There are no shortcuts to success, it stems primarily from hard work. However, positive thinking and finding pleasure in whatever you’re doing and in dealing with people are also important. Life is so much easier when you have a positive spirit. It also makes you a more pleasant person to work with, so that’s a win-win situation,” he concludes.

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

10/4/18 1:38 PM

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

dt 2018 october.indb 9

D I P L O M A C Y

T R A D E

O C T O B E R

2 0 1 8

9 10/4/18 1:38 PM

analysis BY TAMÁS MAGYARICS

The North American Free Trade agreement (NAFTA) has never been universally popular in the United States. Even when it was signed by the Clinton administration in 1994 (though, it had been negotiated primarily by the George H. W. Bush administration), President Clinton had to face down a vocal opposition within his own party led by, among others, then House Minority Leader Dick Gephardt from Missouri. Rep. Gephardt and a number of trade unions, including the powerful Teamsters Union, feared that a large number of manufacturing jobs would go south – as presidential candidate in 1992 Ross Perot put it: he heard a ’giant sucking sound’ from Mexico. Their argument against the deal was mostly two-pronged: on one hand, they believed that the lower wages would attract American companies, such as the ones in the automotive industry, to relocate jobs from the U.S. and, on the other hand, the trade unions also worried about the labor conditions, safety standards in the workplaces, and the like in Mexico.

Preliminary agreement

Another bilateral deal However, potential legal problems in the U.S. may also create a roadblock for the U.S.-Mexico Trade Agreement as Congress required that the Trump administration should present a unified text of the U.S.-Mexico and the U.S.-Canada trade agreements. The Canadians resented

10 10 magyarics.indd 10

FREE or FAIR TRADE AGREEMENT? U.S.-CANADA DEAL FOLLOWS AGREEMENT BETWEEN THE U. S. AND MEXICO

the fact that Mexico had negotiated with the U.S. on a bilateral basis, but finally, they had to make the most of the situation and got engaged with the U.S. on a bilateral basis, too. The Trump administration was hoping that Ottawa would adopt the broad outlines of the agreement between Washington and Mexico City. It included, among others, the elimination of the special investor-state dispute settlement provisions, as well as providing additional protection for brand-name drugs. However, Canada has successfully resisted U.S. demands in these questions. At the same time, as Prime Minister Justin Trudeau explained when announcing the completion of the – rather awkwardly named – United States-Mexico-Canada Agreement (U.S.M.C.A.), Ottawa had to make concessions, as well. The most controversial one of them from the Canadian point of view is the opening of the dairy market for the U.S. farmers. The deal created furor in Mr. Trudeau’s ’home’, in Quebec, which is the center of the Canadian dairy production, and all the political parties, with an eye on the upcoming elections there, expressed strong opposition to the deal. On the other side of the border, President Trump and the Republicans may benefit from this Canadian concession in some ’battleground’ states, such as for example, Wisconsin.

A game changer?

has already left the TPP, while Canada joined the rump organization. Therefore, the fate of NAFTA is bound to have repercussions beyond North and Central America. The Trump administration has succeeded in transforming NAFTA into practically two bilateral treaties. There remains the question what Washington is able to achieve in the quasi trade war with China, and the looming quasi trade war with the European Union. Donald Trump is often characterized as a transactional president; however, if he manages to push through all the changes that he has put into motion in international trade relations, his presidency may evolve into a transformational one, as well. The question is how much time he will have to achieve what he is up to in this respect. A Congress, or even one of the Houses (more likely the House of Representatives) controlled by the Democrats after January 2019, will be a major stumbling block for his plans; only one term in the White House does not seem to offer enough time to achieve lasting impact on the complicated web of international trade relations; but a two-term presidency may give Donald Trump an opportunity to go down in history as a game changer for the better or worse.

Prime Minister Justin Trudeau hinted that he did not have too many choices besides striking a deal with the U.S. as around threequarters of the Canadian exports go to the U.S. It seems that, at least in the short term, Prime Minister Trudeau as committed liberal, free-trader, and multilateralist has lost to Donald Trump, who is a fairtrader at best, bordering on protectionism, as well as a bilateralist and unilateralist. However, President Trump’s approach to international trade may be backfiring for the U.S. in the medium or long term. His approach to international trade is a break from traditional Republican policies of the past. Moreover, most of the economists question his efforts to balance the books in bilateral trade with the major trading partners of the U.S., including China, the European Union or, for that matter, Canada. This compartmentalization of trade policies threatens to disrupt the current international trade system and its institutions, including the World Trade Organization (WTO), which President Trump has threatened with leaving because of its trade dispute mechanism which he claims to be biased against the U.S. (In fact, the U.S. has won about 85% of the disputes in the WTO.) The Trump administration O C T O B E R

2 0 1 8

D I P L O M A C Y

T R A D E

photo by DEPOSITPHOTOS.COM

The fact that it is a Republican President (or perhaps one who is a RINO – ’Republican In Name Only’) who is pushing for the renegotiation of NAFTA by using, among others, the same arguments the progressive wing of the Democrats used some 20 years ago, is a contradiction only at first sight; a number of working-class Democrats have become ’Trump Democrats’ recently in such centers of manufacturing industries as, for instance, Michigan or Pennsylvania. Therefore, one suspects that party politics and the coming Congressional elections on November 6th also motivated the White House when it pushed through a preliminary agreement with the Mexicans in August. (Mexican politics also dictated a quick agreement: President Enrique Peña Nieto is soon leaving office, and will be succeeded by Andrēs Manuel López Obrador, who may not be that enthusiastic about the new trade deal between his country and the U.S.) One requirement in the preliminary agreement that would be a challenge for the Mexican government to meet is the demand that 40-45% of the cars exempted from stiff tariffs in the U.S. should be produced by workers earning at least USD 16 per hour. Given the low labor wages in Mexico, the government will be hard put to pay this sum; moreover, if it is somehow able to, that is likely to trigger serious labor disputes in other sectors; and it can ultimately result in an inflation that can go out of hand (with memories of the collapse of the peso in the 1990s). On the other hand, the automobile makers in Canada, first and foremost in Ontario, are likely to benefit from the so-called ‘high wage’ factory requirement as negotiated between the U.S. and Canada.

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

10/4/18 2:31 PM

Cherish every moment qatarairways.com

dt 2018 october.indb 11

10/4/18 1:38 PM

INTERVIEW WITH VOLKMAR WENZEL, GERMAN AMBASSADOR TO HUNGARY

“Hungary is a wonderful country with wonderful people. I really enjoy the extraordinary central European culture and the history of Hungary. Our countries have strong ties grounded in a lot of history. My main mission is to continue to make this historic partnership flourish in a united Europe,” Ambassador Wenzel tells Diplomacy&Trade, expressing how happy he is to be stationed in Budapest. “Neither Germany nor Hungary is big enough to have significant influence in a globalized world. However, a united Europe can be the equal of, let’s say, the Americans or the Chinese. The European Single Market

12 dt 2018 october.indb 12

makes its weight felt in international trade policy, a common European defense policy can protect us and a strong display of common European values that will garner us a reputation, respect and goodwill in the rest of the world. However, a united Europe can be the equal of, let’s say, the Americans or the Chinese. The European Single Market makes its weight felt in international trade policy, in a common European defense policy that can protect us, and through a strong display of common European values that will garner us a positive reputation, respect and goodwill in the rest of the world. German-Hungarian contributions to all of these dimensions can make a difference for a good future of Europe. In other words, good German-Hungarian bilateral relations are good for our countries, good for Europe and good for our standing worldwide,” he stresses.

Historic ties

Economic ties

“We can look back on more than a thousand years of interaction and coexistence of the German peoples and Hungarians. We know each other quite well and we share common experiences. In our common history, we’ve had great moments – as well as terrible ones. Both tie us together,” the Ambassador says. He is of the view that in 1989, Hungary took courageous steps to open its borders knowing that thousands of East Germans would rush into this breach. “On every October 3rd, when we Germans celebrate the Day of German Unity, we remember the crucial role of Hungary in poking the first big hole in the Iron Curtain and then wholeheartedly welcoming German Reunification. This we cannot forget, this has shaped our relations ever since and will continue to do so.”

Germany is Hungary’s most important economic partner. Agreeing with this statement. Ambassador Wenzel states that “economic relations between Germany and Hungary are indeed very strong. Germany is not only Hungary’s first trading partner, but also the

O C T O B E R

2 0 1 8

D I P L O M A C Y

WHAT THE NUMBERS SAY

In 2017, Hungary imported goods in a total volume of more than EUR 24.5 billion (26.5 % of all imports) from Germany. Hungary exported even more to the Federal Republic, namely EUR 27.45 billion (27.3 % total exports). In the Federal Republic, the ‘Länder’ (Provinces) of Bavaria, Baden-Wuerttemberg and Hessen are the main importers of Hungarian products. (Source: Central Statistical Office, Hungary)

T R A D E

photo by

BY SÁNDOR LACZKÓ

DÁVID HARANGOZÓ

GOOD RELATIONS OF PROXIMITY

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

10/4/18 1:38 PM

german focus largest foreign investor in Hungary. Of course, there is always room for improvement. The biggest challenge to both economies is to increase and safeguard competitively. Hungary’s government is embarking on an ambitious strategy of innovation in order to generate economic growth. Germany’s government has just passed a ‘High-Tech Strategy 2025’ supporting research and development, technology and innovation in order to keep our competitive edge on the world market.” He adds that both governments have decided to cooperate bilaterally on these challenges. “Our business sectors and industries are already engaged in this foresighted cooperation. I am pleased to see that recent German investments will introduce the world’s most advanced production technologies to Hungary and that German investors are increasingly looking for research and development made in Hungary by Hungarians. Governments will work hard to make this the most promising trend in our economic relations.” As a result of the close economic ties, German companies are major employers in Hungary. In light of the scarcity of human resources, they are increasing their efforts to offer attractive, wellpaid workplaces and to develop the skills of their employees.

Noteworthy commitment This May, the German-Hungarian Chamber of Industry and Commerce (DUIHK) organized a conference based on the theme that the countries of Central and Eastern Europe have become an indispensable economic partner of the German economy. As the Ambassador highlights, the commitment of German business and industry in Hungary is noteworthy for its long strategic horizon. In 2018, many German companies celebrate the 25th birthday of their post-socialist investments in Hungary, the most prominent example being the carmaker Audi. “The German companies and their Hungarian employees are proud of their achievements. They also stayed here in difficult times, when economic crisis or difficult regulations hit them. They invested in new facilities, in modernization and productivity, often launching their own educational programs for their workforce. Most of them prospered and almost all are confidently looking ahead to the next quarter century.”

Some of Germany’s biggest companies (such as Audi, Mercedes, Siemens, Bosch, etc. – and now BMW) have established business sites and production locations within Hungary. All that does not only come with implementing the latest technology but German companies also draw on Hungarian human resources. Ambassador Wenzel is of the view that “Hungary is reaching full employment. This is excellent news for everybody. One downside is that it becomes more costly to fill your vacancies. If you want to expand your business, you have to find scarce Human Resources. German companies are tackling this issue actively. Some offer first class vocational training for young Hungarians. Others cooperate with universities in order to qualify students for attractive jobs. Pay rises and increased benefits are being offered. In the end, the whole Hungarian economy will have to balance the growth in wages with increases in productivity. German companies stand ready to make their contribution to the development of the Hungarian economy.”

DÁVID HARANGOZÓ

DEPOSITPHOTOS.COM

photo by

photos by

Proximity in many senses The latest big German company to appear in Hungary is BMW. As the Ambassador points out, big German companies invest worldwide. “For these corporate giants like BMW, any single investment decision is like the solution of a complicated equation. In other words, they are a difficult kind of fish to catch. Congratulations to Debrecen! Hungary has proven to be especially attractive for the automotive industry and the supply industry. Even before BMW decided to invest in Hungary, they bought huge amounts of parts from Hungarian suppliers. In the words of BMW, they were already present in Hungary as a kind of ‘invisible company’. In general, German manufacturers value Hungary’s proximity in terms of logistics, but also in terms w w w . d t e u r o p e . c o m

dt 2018 october.indb 13

D I P L O M A C Y

T R A D E

O C T O B E R

2 0 1 8

of excellent intercultural relations. Hungary has a good transport infrastructure and an attractive regulatory environment including its tax system. The Hungarian Investment Promotion Agency (HIPA) and the Ministry of Foreign Affairs and Trade offer strong support, incentives and advice during investment decisions and after. The government and local authorities are accessible and ready to discuss arising issues.” He adds that in the past, some surprises were sprung on foreign investors like special taxes or regulations targeting specific businesses. According to these voices, more predictability of the business environment could improve an attractive investment climate even further.

Cultural relations Germany also supports German-Hungarian academic exchange and German schools and universities in Hungary. “One of the mainstays of our bilateral relations is the cultural dimension, 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

deeply rooted in people and history. The German language is taught in public schools, widely understood and used by Hungarians. The German minority in Hungary, with their selfadministration and their schools and institutions, is the emblematic embodiment of this historic heritage. Thanks to exemplary minority rights’ regulations, ethnic Germans of Hungarian nationality can freely develop their institutions and express their identity in Hungary. Germany continues to be a very interesting academic destination for Hungarians. Every year, we receive thousands of Hungarians who study or do research in Germany. About 3,300 Germans pursue currently academic studies in Hungary. Over 600 active university cooperation agreements are listed between the two countries. In the Erasmus Exchange program, Germany continues to be the most popular destination for Hungarian students. All German cultural institutions – it is impossible to list them in a short interview – are greatly engaged in Hungary. In Hungary, you can pursue an entire education, from kindergarten to university, in German and you will find a German partner for any kind of cultural ambition. The main aim of these institutions is to provide a meeting space between both countries and both cultures. The Andrássy University, for example, is a common project of all German speaking countries and Hungary. Recently Germany, Austria, and Switzerland launched a campaign called ‘Deutsch.Karriere.Erfolg’, which encourages and supports young Hungarians to improve their German language skills for better jobs and career prospects,” Ambassador Volkmar Wenzel concludes. HUNGARY

GERMANY

93,028 sq km 111 9,850,845 (July 2017 est.) 92 -0.25% (2017 est.) 214 9 births/1,000 population 205 76.1 years 91 1.3 migrant(s)/1,000 population 54 $28,900 (2017 est.) 69 4.4% (2017 est.) 59 11,779,908 78 41 (2013) 104

357,022 sq km 64 80,594,017 (July 2017 est.) 19 -0.16% (2017 est.) 208 8.6 births/1,000 population (2017 est.) 213 80.8 years 34 1.5 migrant(s)/1,000 population (2017 est.) 53 USD 50,400 (2017 est.) 27 3.8% (2017 est.) 46 106 million 15 539 (2013) 13

13 10/4/18 1:38 PM

german focus but also their R+D+I centers in Hungary. Our country offers special subsidies for technology-intensive investment projects and for companies investing in research and development. Hungary offers investors its world-class technical education, creativity and innovative capacity of Hungarian engineers which have been justified by several inventions and discoveries made by Hungarians in past centuries. The largest German development companies with an interest in new automotive technologies such as Bosch, Continental and ThyssenKrupp are already performing research and development activities in Hungary. These R+D centers work in close cooperation with the universities not only in Budapest, but in Mis olc and y r, as ell. The biggest foreign investors – including the German investors – have agreements with institutions of high education thus ensuring the qualified workforce required.”

GERMANY – A STRATEGIC PARTNER NEW GERMAN INVESTMENTS IN THE PIPELINE

Dual education

The Hungarian model

Digitalization

As regards the attractiveness of Hungary in the eyes of German investors, the Deputy State Secretary says that, in the past years,

It is now the era of digital automotive industry and German companies help Hungary take its share. Dr. Petra Ponevács-Pana points out

14 dt 2018 october.indb 14

that digitalization is by all means the key to future competitiveness. “Hungary wishes to be among the first on the list of investment locations for companies developing and applying high technology. Innovation and new technologies are a source of growth and increasing competitiveness. Digitalization is an accompanying and unavoidable phenomenon in every segment of the economy. Hungary also intends to be one of the front-runners in 5G development, as this kind of technology is indispensable for the development and the testing of self-driving cars. As a result, a uniquely complex infrastructural investment has been launched with the construction of the Zalaegerszeg test track.” As examples, she mentions that the second plant of Mercedes-Benz will be able to produce alternatively driven vehicles, the second biggest automotive R&D center of Bosch is in Hungary, and the Thyssenkrupp development center in Budapest presented its intelligent electro-mechanical steering system to selfdriving cars invented by Hungarian engineers in 2016.

GERMANY AS A TRADING PARTNER

According to the latest data of the Hungarian Statistical Office, Germany is Hungary's most important foreign trade partner, its total share in the Hungarian foreign trade turnover is 26.9 %. Germany ranks first in exports with an export value of 27.3 % and in imports with an import value of 26.5 %. Based on this year's figures, the economic relations between the two countries are on the rise: in the first half of this year, exports to Germany increased by 8.3%, and imports rose by 6.6%. One of the most important pillars of Hungarian-German relations is the permanent presence of the modern German manufacturing industry in Hungary and the leading role of German companies in the further modernization of the Hungarian economy. Of particular note is the fact that in 2017, the most important Hungarian export products were road vehicles.

R+D+I Several German firms also make good use of Hungarian ‘grey matter’. The Deputy State Secretary highlights that “in the near future, we will further focus on the development of R+D+I capacities and creating technologyintensive and high value-added jobs. Therefore, in the field of investment promotion, we intend to attract more capital in research and development and to convince investors to establish not only their manufacturing plants O C T O B E R

2 0 1 8

D I P L O M A C Y

T R A D E

DÁVID HARANGOZÓ

“Hungary has undergone extraordinary renewal, including the strengthening of our economy, the creation of an investmentfriendly environment and the establishment of a work-based economy. The Hungarian model has already proven to produce economic growth, create new jobs, maintain disciplined budget management, reduce state debt and keep the budget deficit below 3%. GDP growth reached 4% in 2017 and 4.9% in the first half of 2018. The rate of employment has never been so high in Hungary; it has increased mainly in the private sector since 2010. 4.5 million people were employed in June 2018. In parallel, unemployment keeps decreasing: it was 3.7% in this period (compared to 12.5% in 2010). The focus of the government’s tax policy has shifted from income and work-related taxes to taxes on consumption. Now, we have a flat rate of 15% income tax, since 2017 a flat rate of 9% for corporate tax – the lowest in Europe, and the social contribution tax rate was lowered by 5 percentage points to 22% in 2017 and by 2.5% to 19.5% in 2018. We also offer one of the most competitive investment subsidy schemes in Central Europe for businesses looking to invest in the region. The Hungarian Government offers a wide range of incentives to attract FDI. Among others, this includes direct cash, training and job creation subsidies, as well as tax allowances.”

photo by

Germany is by far the largest investor country in Hungary with about one quarter of all foreign direct investment (FDI) that has arrived to Hungary, so far. Regarding the overall impact of such a German economic presence in Hungary, Deputy State Secretary for Investment Promotion in the Hungarian Ministry of Foreign Affairs and Trade, Dr. Petra Ponevács-Pana explains to Diplomacy&Trade that “our millennium history with Germany is coupled with extremely close traditional economic ties. For this reason, the Hungarian government attaches special importance to our relations with German industry. German investments in Hungary amount to EUR 22.1 billion, which accounted for 29% of all foreign investments in 2016. The excellent strategic relationship is not only proven by investment data, but by the approximately 6,000 German companies operating in Hungary, employing 300,000 Hungarians.” She adds that at present, the Hungarian government has 13 German strategic partners: Daimler/Mercedes, Audi, Continental, Siemens, Bosch, KNORR-BREMSE, Magyar Telekom Co. Ltd., ZF Hungária, Festo, IT Services Hungary, Henkel Magyarország Ltd., thyssenkrupp, SAP Hungary Ltd.). These 13 German strategic partners gained approximately HUF 6,000 billion net income in the business year of 2016/2017.

One important field where Hungary follows the German model is dual education. Dr. Petra Ponevács-Pana says “we have made real progress in introduction of dual education. From September 2018, 26 higher education institutions announced courses in dual education, the number of partner institutions in this system reached 600. Taking into consideration that our system is similar to the German one, it is easier for German companies to take part in it. German companies are at the forefront when it comes to the implementation of practical trainings applying advanced technology in real working environment.” Commenting on the fact that several German firms have begun or expanded operations in Hungary in the recent months, the Deputy State Secretary points out that “we rely on the enhancement of this close partnership with Germany, especially in relation to the realization of governmental goals, which aim at the further development of competitiveness and productivity of the Hungarian economy and those of our domestic corporations as well. We trust in further continuing development. The investment promotion agency HIPA currently manages 26 active, pre-decision, German-related projects. If, after the end of the negotiation process, these projects are implemented with currently known parameters, a total of 4,116 new jobs will be created by investments, and EUR 768.2 million will be invested.”

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

10/4/18 1:38 PM

The future is closer than you think Tomorrow is â&#x2C6;&#x2122;on

We offer efficient solutions that make everyday life more convenient without wasting energy. E.ONâ&#x20AC;&#x2122;s E-Fleet electric cars and Blinkee.city electric scooters on the streets of cities, e-chargers along the roads, E.ON SolarHome solar panels on the roofs, tailored heating and cooling solutions for homes: E.ON is committed to a sustainable future. We believe the future will be what we create together. Join us!

eon.hu dt 2018 october.indb 15

10/4/18 1:38 PM

german focus in Germany in dual education is essential. In this context, we are part of the German chamber network and we have the contacts in Germany to all the important players. This network has developed joint standards on how to apply German methods abroad. Basically, DUIHK can play a role here on two levels. One is that we consult on these issues with the government and the Hungarian chamber organizations, sharing the German experience. We also organize several fact finding missions to Germany for factory managers and officials to get to know things on the spot, so that they have the possibility to talk directly with people in order to better understand how the system works. Sometimes, we also prepare special studies, summaries for the government concerning this topic. Also, every year, we team our members with some interested parties to discuss issues and we offer a forum for companies to talk about their experiences and discuss what can be done on the company side. Then, we have special projects with individual companies, as well. This is demand driven and tailor-made, depending on the needs of these companies. There are firms that want to put the German methodology in place and want to have it certified by special examinations.”

A reliable bridge The DUIHK CEO says that “the next 25 years will be just as interesting and challenging as the previous quarter of a century. I think that we will have our place here even in a – hopefully – more united Europe and I think it will always be necessary to have people that are reliable bridge builders and trusted partners in business relations between Hungary and Germany. Possibly, the way of doing business will be different, or even the way we dress will be different, but the necessity will remain to bring people together to talk eye-to-eye in a business deal. I think, this will not change because business is trustbased and trust cannot be transmitted, say, by email or video conferencing – I believe it will still be necessary to have direct contact between business partners.”

BRIDGE SPANNING A QUARTER OF A CENTURY GERMAN-HUNGARIAN CHAMBER – A TRUSTED PARTNER IN BILATERAL RELATIONS

He recalls that when the Chamber was established 25 years ago, one of the objectives for Hungary was to join the European Union. “Later, the aim was how to integrate better and more recently, questions like that of a skilled workforce surface – so, there are always new topics that come up and require answers. The answers and services we provide are more and more detailed and more specific. 25 years ago it was sufficient to provide some basic information about Hungary but now, our provision of services goes much deeper as general knowledge is already available on the Internet. Besides giving clear and

16 dt 2018 october.indb 16

Tailor-made services One of the traditional chamber products is bringing people together. Therefore, the most popular service is matchmaking. “When we started here in 1993, this activity basically constituted the act of ‘I will send you a list of names and phone numbers, those of people you can get in touch with’. However, these

times are long gone. Today, if someone wants a business partner, it is like professional head hunting: you start with a profile, you go deeper and you come to a shortlist of 3 or 5 potential partners. Until a few years ago, the partners were invited to talk with each other at the Chamber. Nowadays, foreign representatives stay 1-3 days in Hungary and visit the site or headquarters of the potential business partner. However, we also provide the possibility to do this at trade fairs and other such events. Bringing the right people together is a responsible activity but DUIHK also prepares detailed fact sheets about the country, helping people to understand better why it is worth looking at Hungary as a place to do business. “One way to do it is through our great internet pages that are constantly updated. We also go to Germany to set up meetings with interested companies and to explain to them what possibilities they have in Hungary,” the CEO explains. Dual education based on German experience Another thing that is gathering more and more interest among DUIHK members is the qualification and training of people. As Gabriel Brennauer points out, “we are here to help but we are not missionaries, we don't have the task to convince anybody here in Hungary what is the best for them. The role of the chambers O C T O B E R

2 0 1 8

D I P L O M A C Y

BUSINESS SURVEY

This year, for the 24th time, the DUIHK asked its member companies and other foreign investors how they see the economic situation and the business environment in Hungary. “It is probably less known – and we are really proud of it – that here in Budapest, we are managing identical surveys in 15 other countries in Central and Eastern Europe as well.” says the CEO of the organization. On one hand, the survey questions refer to the economic situation, figures and numbers – these are excellent in most of the countries. The other part of the survey is about the investment climate and the business environment for companies.” According to Dirk Wölfer, Head of Communications at DUIHK, the Chamber has been doing these surveys annually since 1994. “In 2006, we began expanding it to other countries, which was justified by the fact that German companies usually look not only for a specific country but rather think in terms of the region. When searching for new locations and markets, they look at a range of countries. Thanks to these international surveys, these companies get a broader picture of the whole region to facilitate their decision. Regarding the answers on the investment climate, in the early years of the survey, Hungary was among the five most attractive countries in the region. However, we saw a decline over the following years, and it was only during the past few years that the Hungarian position improved again in various areas. It is a good sign that our member companies here feel that the business environment is positive for their investment.

T R A D E

DÁVID HARANGOZÓ

Evolution of activities

precise information, we are also here to help understand the Hungarian reality and give German people better possibility to understand what the business opportunities here are. Hungarian companies who want to do business in Germany also need much deeper explanations and much more thoroughly prepared instruments.” This May, DUIHK organized a conference on the theme that the countries in Central and Eastern Europe have become an indispensable partner of the German economy. According to Gabriel Brennauer, “it was more than just a conference topic, this has been a guiding principle throughout our 25 years. This time, we only wanted to elaborate on it a little bit differently, so we organized a regional event around this theme with our sister chambers from the Czech Republic, Slovakia and Poland and also with entrepreneurs from these countries participating actively.”

photo by

“It has been the continuous following of the needs of our members and other companies with new services and new answers and keeping what is, so to say, in our genetic code: providing high quality services to companies.” That is how the CEO of the German-Hungarian Chamber of Industry and Commerce (DUIHK), Gabriel A. Brennauer evaluates the history of the organization that celebrates its 25th anniversary this year. He adds that “we have come a long way and that is something we can be proud of. We have always found answers to the questions and the needs arising over these years and decades.”

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

10/4/18 1:38 PM

Safety above all

TÜV Rheinland = testing, inspection, certification

Services: Academy, Health and safety, Industrial segments: power plants, renewables and manufacturing sites, Products and components: mechanical, electrical and performance testing, inspection and certification, Management system certifications Expertise in e-mobility: Type tests: Autonomous vehicles’ systems, electric vehicles (including: passenger cars, public transportation, commercial vehicles, electric motorcycles, EPAC bicycles, Segway, etc.), Testing and inspection: Chargers, Batteries, Sensors and control equipment, LED lighting equipment, Wireless equipment (RED, EMC) Special trainings for automotive industry: E-mobility safety trainings (from users to developers) and IATF16949, VDA, FMEA, MSA, APQP/PPAP, 5S, 8D

www.tuv.com

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

dt 2018 october.indb 17

D I P L O M A C Y

TÜV Rheinland InterCert Kft.

T R A D E

F E B R U A R Y

2 0 1 5

tuv@hu.tuv.com

10/4/18 1:38 PM

german focus ALL AROUND THE CARS PORSCHE HUNGARIA SUCCESSFULLY

TACKLES RAPID CHANGES IN THE AUTOMOTIVE INDUSTRY

The GM continued, "over the last few months, we introduced the Audi A8 and A6 and Q8, the VW Arteon, Tiguan, Touareg, the Skoda Kodiaq, Karoq and the new Fabia, the SEAT Ateca and

18 dt 2018 october.indb 18

Rapid changes Within Porsche Hungaria, János Eppel is responsible for the sales of imported vehicles and marketing. As to how his day-to-day work has changed in these fields over the years, the Managing Director points out that the automotive sector faces great changes that might be called the new industrial revolution with connectivity, digitalization and artificial reality among others. “The car is now more of a mobile device on four wheels than a means of transport and traffic. That inevitably requires changes in our day-to-day work, so we must follow rapidly the new trends, make swift and innovative decisions and, of course, learn new methods. So, the need for change is a

and more demanding – as are private consumers. "For long years, corporate fleets have meant a substantial sales factor for us that cannot be met without perfect quality offers and constant update of our services under the slogan ‘All around the cars’. This, in other words, means offering good services in sales, branded service and maintenance, leasing and financing. Corporate sales will remain a decisive factor, so, we must tackle them with outstanding precision."

driving force for us, and also for the dealers, as consumer requirements are constantly changing, where the traditional channels of sales are not enough,” he says.

Government supplier Porsche Hungaria has been an important supplier of the government and of state-run institutions/ organizations for a long time. What does the company constantly need to do in order to keep this position? János Eppel has an answer that is ‘easy and sophisticated at the same time’: “we need reliable cars with high price-quality ratio, a strong national dealers' network and service background, as well as outstanding spare-parts and logistic services like the Parts Center in Budaörs, just outside Budapest. That must be complemented with our human factor, as our colleagues prepare offers that meet the demands of our partners/customers.

Going electric Cars with electric drive are the vehicles of the future, vehicles that are increasingly present already and influence the business of dealers like Porsche Hungaria. János Eppel stresses that “electric cars will be our new business focus, but we must not forget the market of internal combustion engine driven cars, as the e-cars will exist in parallel with gasoline and diesel cars for many years. Anyway, these new products need new sales channels, and these new products will bring new consumer trends, too. So, as a consequence, it needs a quick renewal and adaptation from our side as an importer or as a dealer.”

All around the cars Corporate sales are also very important in Porsche Hungaria’s business. Regarding the latest trends in this area, the General Manager highlights that corporate partners are also more O C T O B E R

2 0 1 8

D I P L O M A C Y

T R A D E

PORSCHE HUNGARIA

Successful new models

Arona that succesfully put SEAT on a growth path with the Ibiza and the Leon, and last but not least, the new VW Crafter and several special editions. However, we are very proud that we are among the leaders in e-mobility, as MOL Limo and GreenGo use altogether 600 VW e-up!-s in their fleets, and the e-Golf has also proven to be an innovating deal for several companies.

photo by

At the beginning of this year, the General Manager of Porsche Hungaria Ltd., János Eppel was quoted as saying that 2017 was a milestone in new car sales in Hungary. Now, he tells Diplomacy&Trade that “our new car brands – Volkswagen, Audi, SEAT, Skoda, Volkswagen Commercial Vehicles – managed to show an increase both in fleet- and individual sales. Besides this most important ‘milestone’, the stabilization of our dealers' network might gain even more importance. Our dealers, with their innovative sales know-how, reliable IT background and stronger financial position, are important actors in the small-medium size company sector and provide us with a solid foundation for more business achievements. Fortunately, we have been able to maintain our model offensive in all segments and successful novelties have entered the Hungarian market.”

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

10/4/18 1:38 PM

german focus

FOR SECURE AND SUSTAINABLE ENERGY SUPPLY E.ON HUNGÁRIA NOW HAS A HUNGARIAN CEO AND A FULLY HUNGARIAN MANAGEMENT For the first time in its almost quarter century history, the electricity company E.ON Hungária Co. Ltd. has a Hungarian CEO, Attila Kiss, who took up this position on June 1, 2018.

D&T ATTILA KISS At E.ON, we believe that e-mobility is the future of transportation. We strongly support e-mobility, providing a full range of services of electric cars in Hungary, including the sale, full servicing and the continuous power supply of chargers. As a priority project, we launched our E-Fleet service in 2017, which offers a turnkey solution for responsible, future-oriented cities in Hungary. We work on extending the electric car experience. We are very proud that a few months ago E.ON and a Hungarian startup, blinkee. city launched a unique transport opportunity in Budapest, the very popular electric scooter-sharing system, which reduces air pollution, urban noise and traffic jams and makes city traffic easier. It was also an important step to improve e-mobility in Hungary. I also use the service, and it is fantastic, as it is both digital, fast and easy at the same time.

DIPLOMACY&TRADE

ATTILA KISS Today, E.ON Hungária is a company group, offering complex energy solutions and new services for the customers, and is open to use the latest innovations in power and gas distribution networks for their benefit. As the CEO of the company I don’t see any reason to hurry with big changes, but this does not mean that I have not changed a few things already. However, the time ahead will give us a great opportunity to think over a few important cornerstones of the company. When I think about the future of E.ON Hungária, I see a modern, agile, open company with ethical business culture, which is well known and recognized by customers and employees and a company which achieves success by having a positive reputation and brand name among clients and partners. We are working on this every day with my colleagues. Now E.ON Hungária has a fully Hungarian management, this shows an immense trust from our parent company, E.ON SE, not only towards the management and employees, but also towards the country.

D&T

ATTILA KISS We pay special attention to help people to live an energy conscious life. One of our greatest programs is the Energy Globe Award, so called Oscars of the Energy World. The aim of the award is to contribute to the promotion of environmentally friendly and energy conscious projects and introduce to the public the most innovative home sustainability and energy conscious initiatives. Energy Globe Hungary was organized second time in Hungary this year, after the multiturn selection process, the most innovative green projects of our country were announced in a frame of a great, carbon neutral, zero plastic gala ceremony accompanied by contemporary artists, who are working for a greener future.

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

dt 2018 october.indb 19

D&T T

ATTILA KISS The keyword, if it is about our electricity network infrastructure, is security of supply. I think, this is the most important highway for all services for the clients, for Hungarian families and small and big enterprises and for the Hungarian economy. Our network infrastructure is constantly being developed, reconstruction works are carried out to be safe and up-to-date and we implement innovative solutions of new energy world to be ready. We pay special

D I P L O M A C Y

T R A D E

O C T O B E R

2 0 1 8

attention to increase the satisfaction of our customers, improving security of supply. We think that reliable energy supply is the basis of the economy in a country. Our aim is to combine our expertise and experience with technological innovations. That is why for example we started to use drones to detect network failures. Beside of this E.ON Hungária introduced the low voltage dispatching system, from which we are expecting the improvement of low-voltage failure indicators and higher customer satisfaction. We developed a Google-based map for planned outages, you can check it on our website or Facebook page.

ATTILA KISS We launched our Energy Experience Learning Program in 2008 with the aim of assisting teachers and nursery school teachers in the energy conscious education of children. In the last 10 years, thanks to the program, thousands of students from more than 200 educational institutions participated in energy training organized by us. We have an Energy Community program, which aims at supporting energy conscious lifestyle of families, households and small communities, and to promote the carbon-poor, sustainable way of life. This year, E.ON joined the Hungarian Interchurch Aid’s school starting campaign for the seventh time. We also supported the successful beginning of the year for the youngest generation of children with 500 kindergarten starter packages. I am also very proud that this year E.ON joined the Missing Type program internationally, which drew attention to the importance of blood donation.

photo by

ATTILA KISS We are constantly working on new solutions in key areas for those who seek great new energy efficient solutions, because we know what tomorrow's energy market needs, and it should be shaped today. E.ON works hard to make the offered solutions sustainable and the Hungarian people's lives simpler and more comfortable. We are very proud that E.ON is at the forefront of strengthening energy conscious and sustainable thinking in Hungary and that we are promoting smart and green solutions. E.ON Hungária built a 7 units 500 kW power plant in Szigetvár and a 500 kW solar power plant in Mohács which provide the yearly energy consumption of more than 2,000 households from renewable sources. The 1.5 billion HUF investment will be followed by several similar ones soon.

E.ON HUNGÁRIA

D&T

19 10/4/18 1:38 PM

german focus the fact that we can build on the knowledge and expertise they built. At that time, it was not called e-mobility but Hungarian experts have long been advisors to the EU and the United Nations on guidelines for electric vehicles. MEEI experts also examined junction boxes, which are basically the same as today’s electric chargers for vehicles. Nowadays, it is a steady business for us because a lot of European manufacturers bring their vehicle chargers to us for both electro-magnetic compliance and power testing. A related topic is that of autonomous vehicles, which are ‘normal’ vehicles but controlled by usually some onboard computer. We have long examined such systems in appliances like washing machines and, based on this knowledge and experience, we have developed this software safety branch of our business to test autonomous systems. Therefore, TÜV Rheinland is present in all three aspects of e-mobility,” the Business Field Manager highlights.

PRECISELY RIGHT TÜV RHEINLAND CERTIFIES THE CONFORMITY OF PRODUCTS AND SERVICES IN HUNGARY AND WORLDWIDE

Mission and philosophy at TÜV

20 dt 2018 october.indb 20

point of view. Our company developed a set of criteria of what is sustainable and to what degree. We figured out what things should be considered. TÜV Rheinland does not only apply but also develops sets of criteria for certification in many cases. We see what the various industries are developing and also see what needs to be done to achieve the required safety level and to have a concept like sustainability accepted by the public.” An example mentioned by Gábor Kovács is the ‘Energy Prize’ by the electricity company E.ON “that searches for the most energy efficient appliances. We had hundreds of products (television sets, coffee machines, microwave ovens, etc.) here and we created criteria according to which these appliances could be examined by category. This certification is also a kind of quality assurance – as was the hotel evaluation work we did in which our inspectors visited hotels and examined the services to see how much reality complies with what was advertised.”

Social responsibility TÜV Rheinland’s aim is to create a future in which safety and sustainable development are achieved through the synergy of knowledge, conscious responsibility and continuously innovating technologies. As Gergely Hidas stresses, “taking on responsibility matters to us – for people, society and the environment. We are committed to providing our employees with an attractive and safe place to work. We make technology controllable and secure, so that people can use it without harming the environment. We are committed to helping people in need. The TÜV Rheinland Group, as a member of the UN Global Compact, is committed to protecting human rights, environment and corruption-free operation. The company’s mission since 1872 is the establishment and sustainability of the harmony between people, environment and technology.”

E-mobility Earlier, MEEI was the first and only institute in Hungary that could approve electric appliances. “All the trolleybuses and trams in the country were inspected by them and we are proud of

Sustainability The inspection and product certification services are easily associated in people’s minds with TÜV Rheinland but it was surprising to see how simply sustainability is in practice. As Gergely Hidas explains, “sustainability is not a philosophical issue but something pretty tangible and definable from the technical O C T O B E R

2 0 1 8

D I P L O M A C Y

T R A D E

DÁVID HARANGOZÓ

Inspection Certification) area, TÜV Rheinland is exceptional because it has extensive laboratory background both in Hungary and internationally, and therefore, is able to serve this increased range and provide manufacturers with complex services. It often happens at the kick-off meeting of a project that we are sitting here in Budapest on this ‘end’ of a Skype connection, while the representatives of the manufacturer are in Germany, those of the production site are in China, while sales people are somewhere in America.” TÜV Rheinland appeared in Hungary in 1989 (under the name TÜV Rheinland Hungária), bringing TIC services into this country. In 2004, the company took an important step to buy the Hungarian Institute for Testing Electrical Equipment (MEEI) (whose predecessor was established in 1883). In the middle of the 1990s, TÜV Rheinland’s Hungarian subsidiary was given a regional role and its name was changed to the current TÜV Rheinland InterCert Ltd. “This regional role means that we started transferring the know-how to Ukraine, Slovakia and Romania, as well. We could serve companies in those countries through the local subsidiaries but the necessary accreditations are with TÜV Rheinland InterCert Ltd. and some 90% of the experts are also here in Budapest,” Gergely Hidas says.

photos by

The Germany-based international firm TÜV Rheinland, established in 1872, is one of the world’s leading companies for testing, inspection and certification services as well as training in these areas. Gergely Hidas , Business Stream Coordinator for Product Testing and Certification at TÜV Rheinland InterCert Ltd., the Hungarian subsidiary of the TÜV Rheinland Group, points out to Diplomacy&Trade that although, the public may perceive TÜV as a quality assurance firm, what they really test are products and services for is safety. He adds that “new and innovative technologies and issues appear in our activities pretty early: electric cars, their parts, data protection, Internet security, how robots can work together with humans, battery technology, clothing, etc., wireless technology in smart homes or even moral issues for autonomous (self-driving) cars.” Adding to that, Gábor Kovács, Business Field Manager - Commercial at TÜV Rheinland InterCert Ltd., calls attention to the fact that while traditionally, manufacturers sent the ready-made products for testing to make sure they complied with the required standards, nowadays, this inspection has shifted to the beginning of the life-cycle. “Moreover, our scope of services has also become wider in the sense that in today’s global world, a lot of manufacturers put their products on the market in several geographical areas and thus, it is not enough for them to receive certification for, say, countries of the European Union only, but also for the United States and/or Asian countries where standards are different.” He also mentions that “while there are several companies in the TIC (Testing

"We want to be the world's best sustainable and independent provider of technical services for testing, inspection, certification, consulting and training. Our mission statement documents both our claim and philosophy. Sustainability is a core topic for us and determines our actions. We truly believe companies will only be successful in the long term if they incorporate sustainability in their philosophy and in the way they manage their business,” Gergely Hidas points out. “TÜV Rheinland InterCert Ltd. began to deal with ‘green’ energy quite early. On one hand, our engineers were pretty much interested in it and also, these are issues that carry serious risks as does, for example, putting hydrogen into a car and lighting it. It was in 2009, that we started to examine the compliance fuel cells. Another example for environment friendly technologies is our own building here in Budapest that we turned into an energy efficient house by installing a heat exchanger system. Saving energy is always in the back of our engineers’ minds. For testing, we use a lot of electricity but – to make the process as ‘green’ as possible – we try to use inverters to feed energy back to the network. It only takes a ‘switch’ in your mind,” Gábor Kovács adds.

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

10/4/18 1:38 PM

The Future in Motion

We shape the future of mobility The Continental Group in Hungary Continental is one of the leading technology companies in the world, employs more than 8,000 people at six plants and one tire trade representation and logistics center in Hungary. Continental AG’s five divisions (Interior, Chassis & Safety, Powertrain, ContiTech, Tire) do manufacturing, software development and

commercial operations in Budapest, Veszprém, Szeged, Makó, Vác, Nyíregyháza and Budaörs. The company opened its artificial intelligence center in Budapest in May 2018, and the greenfield investment of Debrecen’s electronics smart factory is set to begin in the third quarter of this year.

Technology company

Colleagues

• 243,000 engaged colleagues worldwide

• Trust

• 60 countries

• Passion to Win

• Sales of €44 billion

• For One Another • Freedom To Act

We are passionate towards Vision Zero

10 locations in Hungary as One Continental

• Automated driving

• Budaörs

• Nyíregyháza

• Electric mobility

• Budapest (2)

• Szeged

• Safety – zero accidents

• Debrecen

• Vác

• Digitization

• Makó

• Veszprém

• Mosonmagyaróvár

dt 2018 october.indb 21

10/4/18 1:38 PM

german focus needs high-tech specialists who are important pillars of future success and sustainability. Budapest was chosen as a place for the Artificial Intelligence Center because an active automotive environment is already here, as are many universities and research centers as well as specialists. The Center is integrated into the global software manufacturing network already present in the Group’s other development venues – within the advanced driving assistance systems division. At the new development center, focus is on deep machine learning, including security-critical, real-time software applications.

FOR AN ACCIDENT-FREE FUTURE

Sustainability Sustainable economic activity and social responsibility are part of Continental's core values. It's corporate strategy and path to the future are built on this basis. Continental is convinced that sustainable and responsible business engagement will increase the ability to innovate, prepare for future tasks and thus, create corporate values. Risks and opportunities that will enable staff to start the necessary changes are identified in time. Sustainability is, therefore, an integral part of Continental's strategy and development. Linking financial and non-financial indicators to a comprehensive system, helping the development of employees, protecting the environment and developing society as a whole.

INNOVATIONS OF THE TECHNOLOGY COMPANY TOWARDS VISION ZERO CONTINENTAL IN HUNGARY

The German firm has been present in this country for more than 25 years. It has six factories (plus the one being built in Debrecen), an artificial intelligence competence center, a tire sales representative and a logistics center, employing more than 8,000 people (including leased staff) here. Continental AG's five divisions (Interior, Chassis & Safety, Powertrain, ContiTech, Tire) carry out manufacturing, software development and commercial operations in Budapest, Veszprém, Szeged, Makó, Vác, Nyíregyháza and Budaörs. The company's Budapest factory manufactures automotive electronics components and microelectronic circuit modules for the world's largest carmakers, using state-of-the-art and innovative technologies. The wide range of products in the capital city plant includes electrical controllers, drive systems, mechatronic systems, displays and infortainment systems. In Continental’s Development Center in Veszprém, as well as in the company's only East Central European test track, electronic control brake systems – ABS, ESC – and their components are developed and tested. In addition, highquality sensors for different safety technology elements (motor, wheel, sprocket, IBS and other) are manufactured here for basically all car manufacturers in the world. The one in Szeged is the largest textile reinforced strap production site in Europe, its products are sold all over the world. The factory also has high level development activity in the field of specialized oil industry and marine hoses, which are subject to extreme conditions of use and unique customer requirements have to be met. The company's Nyíregyháza factory, located in the northeastern region of the country, is determinant in the three big market areas of the manufacturing of technical rubber products. These include rubber mixture, the production of air spring systems for the manufacturing of passenger cars and commercial vehicles, as well as the production and sale of cooling heatsinks. The Makó unit of the company also operates as a cooling-heating center segment, as well as a direct sales and customer center, which also carries out commercial and product development activities. Due to the technology diversity and product portfolio of the Vác factory, Continental is a highly innovative and complex unit, and the company's plastic competence center is also there. Although, Continental does not manufacture tires in Hungary, however, it is one of the most important players in the Hungarian tire market. Its commercial center is located in Budaörs, just outside Budapest. That is where the multibrand communication is conducted from as it is Continental’s brand representation office in Hungary. The Hungarian tire distributor also carries out the logistics tasks of the tire trade in the region, relying on the logistic unit in Mosonmagyaróvár.

E-mobility With its comprehensive technology tool kit – whose elements include start/stop technologies, 48-volt and hybrid components for clean electric vehicles –, Continental offers components and systems for vehicle manufacturers to progressively implement a personalized transition to electric vehicles. Efficiency is closely related to sustainability. Efficient, environmentally friendly cars

22 dt 2018 october.indb 22

Continental considers the training of future professionals as one of the most important tasks of social engagement, so, the technology company places great emphasis on the fact that young people interested in engineering get familiar with everyday manufacturing and development activities during their university years. The firm cooperates with many domestic institutions in education and research nationwide, including the Budapest University of Technology and Economics (BME), the University of Pannonia, the University of Szeged, the Szent István University and the University of Óbuda. Continental has been a pioneer in road safety for more than 140 years. The company attempts to elevate this expectation to even higher levels with its Vision Zero concept. In addition to its innovative tires, the firm has also developed revolutionary technologies that are nowadays found in most modern passenger cars. These include the Anti-lock Brake System (ABS), the Electronic Stability Control (ESC) and Emergency Brake Assist (EBA). All this is just the beginning: thanks to the constant development of smart cars, Vision Zero is more realistic than ever before.

consume less energy and have significantly lower CO 2 emissions. By electrification of diesel or gasoline engines (hybrid drive), the emission of CO 2 and other exhaust gases can be significantly reduced. Continental also manufactures and develops many of these solutions in several of its Hungarian units. In May 2018, the Continental Artificial Intelligence Center was opened in Budapest. Artificial intelligence is the core competency of developing autonomous driving systems. With this center, the company continues to expand its expertise in deep machine learning to achieve autonomous driving and support its Vision Zero goal – with which we seek to achieve a future without accidents. For high-tech developments, the company O C T O B E R

2 0 1 8

D I P L O M A C Y

T R A D E

ZSOLT BOCSKAY, CONTINENTAL

already learning about their environment and developing themselves. The state-of-theart smart factory, which is now the seventh manufacturing unit in Hungary for Continental, also meets the highest demands for energyefficient green investments.

Corporate responsibility

photos by

As the latest development of the German firm Continental’s over a quarter-of-a-century long history in Hungary, the foundation stone of a new, ‘smart’ factory was laid in Debrecen in the middle of September. With this, Continental intends to expand its automotive electronics manufacturing business, initially producing Continental Transmission and Sensors & Actuators products at the 7,000 sqm site. Continental Debrecen will produce high quality products in highly digitized environments. With the spread of intelligent technologies and with the advancement of ‘industry 4.0’, the concept of smart factory has come to the fore: this essentially describes an environment where devices and automated systems can develop themselves without human intervention to enhance their performance and costeffectiveness. One important element is smart lights that are lit only in the room where people are staying, but they also keep track of how many people go through the corridors. Integrated BMS (Business Management System) optimizes mechanical, security, fire and lighting systems. In addition, technologies such as cobotics (collaborative robots) are being used, which do not serve as a substitute for human beings, but rather as a support function. With the help of sensors, radars and mastery of intelligence, these machines are

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

10/4/18 1:38 PM

german focus

NEW WING OF BUDAPEST’S GERMAN SCHOOL INAUGURATED DEUTSCHE SCHULE BUDAPEST BRIDGES CULTURES AND FOSTERS INTERNATIONAL RELATIONS

The new wing of the Deutsche Schule Budapest was officially inaugurated on September 19, during a highspirited ceremony attended by German ambassador to Hungary, Wenzel Volkmar, Hungarian Minister of Human Resources Prof. Dr. Miklós Kásler, and president of the Deutsche Schule Foundation, Prof. Robert Somogyi. “Deutsche Schule Budapest is much more than an institute: it is beacon a symbol which represents the long friendship of Germany and Hungary. This bond is further strengthened with the new wing, jointly financed by the German and Hungarian states, plus the savings of the school’s tuition fees. I believe that the diversity embodied by this school is a key to its success. I also believe that cooperation crossing national boundaries

is greatly beneficial to all students who are encouraged to encounter both German and Hungarian cultures, heritage, languages and arts, within these walls. They will, eventually, become good Europeans, and great citizens of their homelands,” Prof. Dr. Miklós Kásler emphasized in his speech. “The new wing represents the start of something new, and also symbolizes our optimism for a great future. For our students, the future starts right here,” added the school’s

director, Judith Nitsch. The school has come a long way from what started as an initiative in 1990 with only 11 pupils. Today it boasts up to 600 students. It has always been a ‘Begegnung’a meeting place for parents, children and teachers. It is also a place for people to accept and understand each other. The curriculum is mainly in German, but for Hungarian students it is also possible to get their high school diploma in both German and Hungarian.

Deutsche Schule Budapest nestles in a forest in Budapest’s District 12, on a 35-hectare land at Svábhegy. The main concept of the (new construction) project was to preserve the main, standalone buildings (one constructed in 2001 as an expansion of the old neoclassical building built during the ‘Belle Époque’ era.) and attach a new wing linking them, to house the increasing number of elementary classes. The whole complex therefore symbolically represents ‘Time’ and its passing: each year, classes move forward in the buildings, in the end, reaching the end of the complex. The construction, carried out by Bánáti & Hartvig Építésziroda, started in June 2016 and roughly ended in February 2018, with the dining hall completed in June, as the final element of the total HUF 1.5 billion project. (Parents specifically asked for a new dining hall and canteen to serve fresh and healthy food.) The new eco-friendly wing uses several renewable energy supplies including layers of solar cells on the rooftop. The school has also received a new multilevel parking lot with 81 parking spaces.

www.deutscheschule.hu

“ There are two things children should get

from their parents: roots and wings.“

„Zwei Dinge sollen Kinder von

ihren Eltern bekommen:

TAMÁS BUJNOVSZKY, MARCUS SCHREITER, NÓRA HUNYADI

Wurzeln und Flügel.“

photos by

Johann Wolfgang von Goethe

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

23 deutsche schule.indd 23

D I P L O M A C Y

T R A D E

O C T O B E R

2 0 1 8

23 10/4/18 4:15 PM

german focus EXPLORE GERMANY'S CULINARY DIVERSITY

For more than 60 years, the German National Tourist Board (the Deutschen Zentrale für Tourismus) has been working internationally to promote Germany as a travel destination and to enhance the positive image of German destinations. It boasts 32 foreign representative offices around the world including in Hungary, with its headquarters located in Frankfurt am Main. Operating on behalf of the Federal Ministry for Economic Affairs and Energy (BMWi), and funded by the Ministry, in accordance with a decision taken by the German Bundestag, GNTB develops new marketing strategies and concepts based on specific themes, events and attractions. It also takes an active role in the form of far-ranging sales activities in new growth markets. In this respect, the GNTB relies on its close collaboration with the German travel industry, partners from commerce and trade associations. Social media campaigns and collaborations with travel platforms are becoming increasingly important for GNTB – this is where current and upcoming campaigns such as ‘Culinary Germany’ and ‘200th anniversary of the birth of Karl Marx’ in 2018, and ‘100 years of the Bauhaus’ and ‘200th anniversary of the birth of Theodor Fontane’ in 2019, are strongly promoted.

A destination with an exciting culture, varied scenery and a long history, Germany has always known how to make an impression, and German cuisine is another highlight to add to the list.

#EnjoyGermanFood

Almost nothing else says more about a country and its people than the national cuisine and associated traditions. Food and drink are a means of immersing yourself in the lifestyle of a region and enjoying unforgettable experiences. Anyone planning a gourmet tour of Germany can expect an almost infinite wealth of gastronomic delights, from traditional inns to one of the more than 300 Michelin-star and gourmet restaurants. As well as sharing the same exacting standards regarding the quality and origin of their produce, each eatery also has its own specific culinary concepts. There is no shortage of choice when it comes to fine interpretations of traditional recipes or modern and innovative creations complete with a pleasant atmosphere and authentic hospitality. “Food is, quite simply, an integral part of national culture – and Germany has lots to offer in this respect, from the North Sea to the Alps,” says Miklós Czeiszing, Director of the Budapest office of the German National Tourist Board. According to him,

Germany is famous for its traditional recipes that have been lovingly preserved and handed down from generation to generation. At the same time, many influences from all over the world are also apparent in German cuisine. “This is what makes the German food culture an exciting blend of tradition and innovation, diverse as the scenery in which it is offered: from 'Pannfisch' fried fish in the North, to green sauce and 'Bratwurst' sausages in Central Germany, to dumplings, 'Maultaschen' pasta pockets and 'Eisbein' ham hock in the South,” he continues. “German cuisine has a delicious specialty to suit every palate, and a glass of great wine or beer to complete the dining experience.” Czeiszing notes that no less than 1,300 breweries operate throughout Germany, and excellent wines are produced in 13 wine regions extending from the Elbe River to Lake Constance. “For centuries, Germans have appreciated good wines. Today, around 80,000 producers are cultivating vines on approximately 102,000

hectares of land, including some international award-winning varieties. For the last few years, many creative young people have joined forces with these wine producers – their wine cellars and courtyards should be an essential stop on any gastronomic trip. Whichever region one chooses for his ‘gourmet trail’ through Germany, he will surely find a treat for his taste buds at every stop.” Christmas Foods in Germany come with a twist Germany offers surprising and delicious culinary specialties for every season. With the winter season coming up, the German National Tourist Board has uploaded a comprehensive guide to German Christmas markets on its website www.germany.travel, presenting delicious, traditional Christmas food such as Gingerbread, Bratwurst, Marzipan, Stollen and Gluhwein. However, there are many creative twists on these much-loved favorites. For foodies, Germany offers vegan Christmas markets, Chocolate Christmas markets, Gourmet Christmas markets

and Organic Christmas markets. Throughout Bavaria for example, you can find spicy sweet flatbreads, helix-shaped pastries with sweet, gooey toppings, beers made from ice (which are then aged like wine). New at the Viktuallienmarkt in Munich this year is an organic ‘Gluhbier’ made from honey, cherry juice, spices and rum. In Berlin, there is a special sweets-only Christmas market (one of the sixty different markets in Berlin). In Frankfurt (Hessen) the famous ‘Green Sauce’ - normally a summer delicacy - makes the perfect accompaniment to roasted almonds; while you’re there, try “Feuerzangenbowle” – a warm red wine, orange juice and rum mix, made with a burning sugar loaf over a big pot. In North-Rhine Westphalia (NRW), try the smoked fish specialties in Cologne, along with chestnuts and churros, or a cabbage and bacon strudel. Head to Krefeld in NRW for a hot, Christmas gin. In Schleswig Holstein and the northern regions, there are specialty fish dishes, Christmas kale snacks and marzipan potatoes to try.

DID YOU KNOW?

• By 2030, Germany’s

photos by GERMAN

inbound tourism industry could potentially reach 121.5 million overnight stays. • Germany is the second most popular destination for Europeans for the eighth year running.

NATIONAL TOURIST BOARD/JENS WEGENER, GERMAN NATIONAL TOURIST BOARD/ANDREAS HUB, GERMAN NATIONAL TOURIST BOARD/SARAH JONEK, GERMAN NATIONAL TOURIST BOARD/AD LUMINA RALF ZIEGLER

ABOUT THE GERMAN NATIONAL TOURIST BOARD (GNTB)

24 dt 2018 october.indb 24

O C T O B E R

2 0 1 8

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

10/4/18 1:39 PM

german focus KEMPINSKI’S ‘GEMS OF THE CORVINUS ART COLLECTION’ ON SHOW IN BERLIN

LIFESTYLE HOTEL IN THE HEART OF BUDAPEST IS ON A MISSION TO SUPPORT ART AND CULTURE

Since 1992 Kempinski Hotel Corvinus contributes significantly to Budapest’s modern-art scene by buying artworks, building an own branded collection that today comprises more than a thousand of Hungarian paintings and sculptures. Many of these artworks are placed in the public areas and guestrooms, except for a 40-piece collection that has been exhibited in different venues outside of the hotel, and currently is on show at the Hungarian Embassy in Berlin. The initiative and the whole project is another testimonial of the hotel’s owning company toward Hungarian art and they look at this as a winning formula of the hotel’s marketing and communication strategy. The collection’s name ‘Corvinus Art Collection’ is a tribute to Hungarian King Matthias Corvinus, under whom Hungary became the first place north of the Alps to embrace the thoughts and ideas of the Renaissance. “Faith in universal values and quality, combined with contemporary luxury inspired by the noblest of tradition, informs the philosophy of our hotel, which celebrates its 26th anniversary as we speak,” notes Stephan Interthal, the General Manager of Kempinski Hotel Corvinus Budapest. An avid arts lover, Interthal is very proud of the hotel’s unique collection, specialized in modern Hungarian

art. “We are delighted to have collaborated with KOGART (Kovács Gábor Art Foundation) to curate a selection of this diverse and rich collection, to show in Berlin this autumn, until November 18.” The GM emphasizes that this is the first but definitely not the last occasion when the collection travels abroad, inviting a wider audience to appreciate the most valuable pieces. As for their ‘collecting instinct’, Interthal says it is and will remain moderately progressive. “At the inception of the Collection in the early 90s, several classical, traditional works were acquired, while there emerged a conspicuously budding interest in contemporary art in the

early 2000s, which has since become the focal point. As the hotel’s objective is not so much focusing on financial investment, in this case it can afford the risk of artistic discovery. Due to the physical context of the hotel, its space lends itself favorably to series of paintings, the focused display of a single artist, as well as sculptures.” According to the GM, two aspects distinguish the Corvinus Collection from similar corporate collections. “First, the quality of the body of its contemporary works is higher, its composition more conceptual, as the Collection as well as the hotel maintain a close relationship with the art scene. The hotel’s Gallery on the ground level regularly shows contemporary works. Secondly, some of the best pieces of the Collection were specifically designed for the hotel, which acts as a permanent exhibition space.

photos by

DÁVID HARANGOZÓ, ANDREAS AMANN/FOTOGRAFENMEISTER

Parallels

▶ AT THE OPEN I N G OF THE E XHIBITION IN BE RLIN: S t ep han

Inte rtha l, Ge ne ra l Ma na ge r of Ke m pinski Hot e l Co r v i n u s B u da p es t, Dr. Péter Györk ö s, Ambas sador of Hunga ry to Ge rm a ny, Re né Frischkne cht, C ha i r ma n o f t h e B o ard of D irec t o rs at K emp ins k i H o tel B uda pe st Zrt. a nd Ma tthia s A l- A m iry, Ma n a g i n g D i r e c t o r o f H otel Adl o n K emp insk i (p ictu red clockwise ) w w w . d t e u r o p e . c o m

dt 2018 october.indb 25

D I P L O M A C Y

T R A D E

O C T O B E R

2 0 1 8

The Collection has tracked the continual transformation of the hotel’s interiors which was recently redesigned and renovated on three floors, and will see further renovations on two floors in the first three months of 2019. “Kempinski Corvinus has accordingly treated the two projects with unprecedented investment and commitment, made manifest in the quality of the materials and the harmonious design details, as well as the display of works of art in the hotel in its newly renovated rooms. This approach and policy were unusual, avantgarde at the time it all started, both in the local hotel industry as well as in art collectors’ circles.” Boasting 316 splendid rooms and 35 chic suites, the hotel aims to be much more than a hotel: a trendsetting, social meeting place with a strong commitment to lifestyle. “Kempinski Hotel Corvinus Budapest boasts a stunning, fully re-vamped ground floor with

remarkable culinary attractions in its signature ‘Gastronomic Quarter Downtown Budapest,’ which features the Austro-Hungarian ‘ÉS Bisztró’, ‘ÉS Deli’, the ‘Blue Fox The Bar’, a hotspot for creative cocktails, the not to be missed ‘Nobu’, one of the world’s most sought after new-style Japanese restaurants and ‘The Living Room’, a contemporary coffee house. “With these, we aim to create scenes where local people can enjoy themselves and the hotel yet not staying with us,” the GM notes, highlighting the many programs and offers the hotel prepares for the upcoming festive season.

Engaged with CSR Kempinski Hotel Corvinus Budapest has, since its opening, maintained an active role in the community as a priority. “One of the first causes the hotel endorsed is support for the Bolyai Children's Home,” the GM notes. “We have dedicated not only financial resources but also our time and love and labor to some 60 children who currently live in the Home. This summer, for instance, we have set up a BBQ grill in their garden, and inaugurated on a sunny afternoon,” Stephan Interthal continues, revealing that the hotel also supports Hungary’s Bátor Tábor Foundation since 16 years that offers active vacations to children suffering from cancer or chronic conditions to provide fun times at the time of grueling therapies. “Bátor Tábor’s fund raising is not only a golf tournament (a brainchild of mine, ter ll i, te e uh sz and the Pannónia Golf & Country Club Máriavölgy), but an annual gala event where an auction is an integrated part of the success, collecting funds to further sustain the foundation and where the Kempinski Corvinus is a sponsor since years,” Interthal adds.

25 10/4/18 1:39 PM

diplomacy

SAUDI ARABIA AND THE VISEGRÁD FOUR HUNGARIAN-SAUDI CONFERENCE IN BUDAPEST

The first joint conference of the Institute for Foreign Affairs and Trade (IFAT) and the Prince Saud Al Faisal Institute for Diplomatic Studies (IDS) from Saudi Arabia took place this September 20 in Budapest, entitled “The transformation of Saudi Arabia and relations with the V4”. The event, organized with the support of the Ministry of Foreign Affairs and Trade of Hungary as well as the Embassy of the Kingdom of Saudi Arabia, consisted of three panels focused on security policy dilemmas, economic issues, and the changing investment environment.

The American Ambassador to Hungary, David B. Cornstein met with the Hungarian Ambassador to the United States, Dr. László Szabó at a business forum organized in Budapest by the American Chamber of Commerce in Hungary (AmCham) this September – a now traditional forum that brings the two ambassadors together each year. Ambassador Cornstein told the attendees at the Budapest Marriott Hotel that “Hungary is the best kept secret in the world – especially in America.” He added that Hungary has not done a good enough job in marketing itself, its phenomenal workforce, relatively low cost labor, “ridiculously low” corporate tax rate and its business minded government. He encouraged business people to look not just at Hungary, but at the whole Central and Eastern European region. “All together, you have one hell of a market here, where things are going well; a big, big market.” He offered the help of his Embassy to Hungarian businesses wanting to open up in the States as much as to U.S. firms looking to move into Hungary He voiced his conviction that “there’s a lot of room to grow in business here, and I'm very much hoping to see increased trade and investment between our two countries.” Also, he laid out what he sees as four priority issues where he wants to see progress or to help smooth relations: defense spending; energy dependency; Ukraine; and the Central European University (CEU). On the latter issue, he pointed out that at least 25 senators had asked him what was going to happen with the university at his hearing prior to becoming ambassador. “I think I am close to solving it. […] The university is not going to go away.” Were the university

26 26 diplomacy.indd 26

to relocate to Vienna, it would be bad “for the city, for the country and for the government”, he warned. Ambassador László Szabó said that in the year since he last spoke to AmCham (as then ambassador-designate), “a lot of things have moved, changed and improved; there is progress in our relationship”. He noted that businesswise, the bilateral relationship continues to blossom. “Trade has never been better: in just the last quarter, exports expanded by more than 6%, and imports also grew by more than 4%,” he said. Echoing David Cornstein’s comments on energy dependency, Szabó recalled that one year ago he had said if American liquid natural gas (LNG) could find its way to Hungary during his five year posting he would consider it a success. Potential sources via proposed LNG terminals in ports in Poland and Croatia continue to be explored, he said, while (“probably most exciting”) a new source on Romania’s Black Sea is being explored by U.S. company ExxonMobil. “Once imports get started, we can get rid of Russian dominance in our market. That will be a great breakthrough, and I certainly think it is realistic,” the Hungarian ambassador said. The Hungarian Ambassador also announced the November 15 groundbreaking ceremony for an innovation center and incubation house on the grounds of the U.S. Embassy in Washington D.C. for Hungarian startups who want to “invade” the American market.

ZOLTÁN MÁTHÉ/MTI, BENCE NÉMETH/IFAT

AMERICAN AND HUNGARIAN AMBASSADORS MEET AT AMCHAM BUSINESS FORUM

creates for the Visegrád countries. Abdallah Al-Salamah (IDS) gave an overview on the Saudi government’s reform plans, as well as the Kingdom’s economic relations with the V4 countries. The speech was followed by the lecture of Di na z e ( FAT), ho spo e of the changing global trends related to energy issues. In the panel discussion, participants touched upon issues related the economic and sociological effects of the Vision 2030 program, the chances of a successful diversification of the Saudi energy balance, the main lessons of the transition phase that began early in the 1990s in the former Eastern Bloc countries as well as the possibilities to improve energy cooperation between Saudi-Arabia and the Visegrád region. In the third panel focusing on the changing investment environment, Tamás Kozma (from the Antall József Knowledge Center) described the bilateral economic ties in detail and the development of Hungarian-Saudi relations in recent years. Meanwhile, Rija al-Marzouqi (IDS) presented the economic development aims of the Saudi government for the next ten years. The participants of the panel discussion agreed that both countries face challenges in the competition for investment, though both were optimistic about creating an attractive environment for foreign capital. The conference ended with concluding remarks from Abdallah al-Salamah and Máté Szalai. They agreed on the importance of continuing cooperation and the necessity to familiarize with and understand different perceptions.

photos by

HUNGARY: THE BEST KEPT SECRET

In his welcome speech, Márton Ugrósdy, the director of IFAT, highlighted the importance of dialogue in the context of the changing world order, which creates not just the possibility but also the necessity for cooperation. IDS Director Abdallah al-Salamah underlined that his country’s Vision 2030 reform program is highly ambitious in its goals and will shape the future of the Kingdom, which is why he welcomes the organization of related conferences. M rton ch berl, the Deputy State Secretary for Cultural Diplomacy argued that the Hungarian-Saudi bilateral relations gained special importance in the framework of the policy of global opening of Hungary. Mohammed A. Almatrafi, the Ambassador of the Kingdom of Saudi Arabia praised the bilateral relations with Hungary, and underlined the ambitious and comprehensive Saudi plan (Vision 2030) that is designed to diversify the economy away from oil, and encouraged Hungarian companies, particularly SMEs, to participate in this Vision. In the first panel focusing on security policy, Asaad al-Shamlan (IDS) and IFAT research fellow Máté Szalai, one of the organizers of the conference, talked about the most relevant security challenges that effect both countries. In the discussion, great emphasis was placed on the interpretation of Iranian foreign policy in the Middle East, especially after the American withdrawal from the nuclear deal. The second panel concerned the Saudi Vision 2030 reform program and the opportunities it

O C T O B E R

2 0 1 8

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

10/4/18 2:33 PM

dt 2018 october.indb 27

10/4/18 1:39 PM

DIPLOMACY&TRADE

in the countryside. I also had a chance to go to the Balaton area to take part in a wine harvesting event, and I am also impressed by the quality of wines and the number of people who prove to be true connoisseurs of it. Our two peoples have in common to be bons vivants when it comes to enjoying good wine and good food. This also brings me to say that Hungarians are very professional and do not indulge in amateurism. They are fully dedicated to what they do. Meetings and small or large-scale events are always perfectly organized. I really admire the fact that they are fond of culture and very creative and, at the same time, warm and friendly. It’s good to live in Budapest. Generally speaking, I truly feel being in Europe here. For me, Hungary is really the heart of Europe.

PASCALE ANDREANI As every new ambassador, I want to strengthen the ties between our countries. I also wish to achieve better political understanding through genuine dialogue. DIPLOMACY&TRADE

PASCALE ANDREANI Our relationship is very good at the working level, but there is room for more cooperation. Historically, of course, we have a lot in common, as regards, for instance, our medieval past, with representatives of the Anjou Dynasty reigning in the 13th and 14th centuries and the sizable influence of French religious orders. Nevertheless, for geographical reasons mainly, the cultural influence of Hungary in France and vice versa remains somehow limited. That is why we should aim at getting to know each other better, as it is a never ending process. Language and education are very good means, and I will strive to support many initiatives in that respect. There are excellent French speakers in the Hungarian government, administration and businesses and I am very thankful for their help in making our Francophonie-related events successful. Our respective leaders may have divergent views in some respects, which can be easily overplayed by the media, especially in the runup to the European elections. However, both the French and Hungarian authorities agree on the fact that we should work together and focus on the areas that bring us closer one to another.

DIPLOMACY&TRADE

PASCALE ANDREANI On the international stage, we share common concerns: fighting climate change (President Áder is particularly committed to the issue and had very good talks with President Macron on that topic in the sidelines of the 2017 One Planet Summit); improving the security situation in Africa (the V4 contributed to the EU mission aimed at controlling the Libyan border, Hungary contributes to the EUTM Mali); development issues (Hungary Helps Program), ensuring cultural diversity and the preservation of cultures in the world (and once again, I praise the fact that the Hungarian government is dedicated to the teaching of other foreign languages besides English). In major international crisis issues, we can most often count on the support of Hungary. For instance, Hungary stands for the preservation of the Iran nuclear deal framework. Within the EU, we share common interests in the fields of innovation and agriculture and both our countries stand for a stronger common EU defense.

DIPLOMACY&TRADE

INTERVIEW WITH FRENCH AMBASSADOR PASCALE ANDREANI

This September, the new Ambassador of the French Republic, Pascale Andreani presented her letter of credentials to the Hungarian President. In an interview with Diplomacy&Trade, she talks about her objectives in her new position, bilateral relations as well as her first impressions of Hungary.

28 dt 2018 october.indb 28

O C T O B E R

2 0 1 8

D I P L O M A C Y

DIPLOMACY&TRADE

PASCALE ANDREANI Trade between France and Hungary doubled in the last 14 years, from EUR 3.8 billion in 2003 to EUR 7.6 billion in 2017. In the first semester of 2018, the trend remains encouraging since our bilateral trade grew again by 1.8% (or EUR 3.9 billion). Hungary ranks 12th among France’s EU partners for exports, which is not bad considering that our countries are geographically not so close. From now on, we need to rebalance our trade flows in so far as for the last years, our trade balance deteriorated unfavorably to us. France remains a leading investor, having demonstrated over time a reliable track record of creating substantial added-value in Hungary. In this respect, I am happy that French investors do not regard Hungary as an industrial workshop for Europe with low salaries but view it rather as a country with a skilled and experience workforce. The latest French investments tend to target cutting edge sectors such as health and medical research.

T R A D E

DÁVID HARANGOZÓ

“I TRULY FEEL BEING IN EUROPE HERE”

PASCALE ANDREANI As a matter of fact, I am posted for the first time in Budapest but I am already somehow familiar with your country, with which I got acquainted during my previous EU-related assignments in Paris. Before 2004, I was in charge of EU enlargement negotiations and was closely working on Hungarian affairs. At the Convention for the Future of Europe, where I worked alongside Hungarian representatives, I got to understand better your country and its EU positions. Much before moving to Budapest, I also had a chance to grab a glimpse of the vast Hungarian culture, through literature, one of my favorite writers being Sándor Márai (‘Embers’ and ‘Mémoires d’un Bourgeois’ being the books I like best). And indeed, my history with Hungary could have started even earlier: as a child, I used to play the piano and my teacher wanted me to dedicate myself fully to it. She had plans for me to study at the Liszt Ferenc Academy of Music in Budapest! This proposal sounded appealing but my parents decided that I’d rather focus on school and studies. Now, I have been in Hungary for three months and I must say that I am amazed by the stunning beauty of Budapest with so many buildings that recall a grandiose history. I also realize that spa culture is widespread, and that alongside the elegant thermal baths of Budapest, there are plenty of hot springs

photo by

france

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

10/4/18 1:39 PM

dt 2018 october.indb 29 A180025_HUN_Produit_BALLONS_JOON_Opening_line_H_280x360_PM_v02 press.indd 1

10/4/18 1:39 PM 26.09.18 15:59

france Developing the guest experience is essential. It is a mind-set change, a transformation. Part of the cultural transformation is the worldwide process of digitalization so that the staff are able to better serve the clients in a more personalized way. At the beginning of this year, we created a special position, the guest experience manager who is in charge of all of our properties in Hungary in terms of taking care of our reputation. She takes care of the guests’ satisfaction and helps our teams create a positive experience for our guests.”

A SUSTAINABLE HOTELIER

ACCORHOTELS CONTINUES TO EXPAND ON THE SUCCESSFUL HUNGARIAN MARKET Looking at the data for the first six months of the year, AccorHotels continues to be doing well. Explaining the reasons behind this boom, the company’s Area General Manager for Midscale and Eco hotels, Sabina Bartyzel tells Diplomacy&Trade that “the market is very good, it’s really booming. We recorded a double-digit increase in what hoteliers call the ‘Revenue per Available Room’ (RevPAR) in the first half of this year. The year 2017 was already very successful, we had great results strongly supported by market momentum and special events. As for 2018, it might be too early to say but it looks like it’s going to be another exceptional and successful year for AccorHotels. The data published for the first six months of the year confirms strong, doubledigit growth of the RevPAR, driven mainly by the Average Room Rate increase.” She also mentions a better visibility of Budapest and Hungary as well as the GDP increase. “Forecasts for the Hungarian economy are good. The positioning of Budapest is also very positive. It is the city of baths and the favourite city of filmmakers. In fact, the Hungarian capital is one of the most recognized destinations in Europe for film production. Airport activity is increasing here, also heading for a double-digit growth with around

30 dt 2018 october.indb 30

15 million travellers forecasted in 2018, which makes it one of the most dynamic airports in Europe.”

Hotel modernization program AccorHotels’ turnover is likely to grow further with the completion of the hotel modernization program in Hungary next year by Orbis, AccorHotels’ Eastern European partner. We completed the renovation of the Mercure Budapest City Center in 2018 and started works in the Mercure Budapest Korona where a second phase of renovation begins early November. Sabina Bartyzel calls this hotel, the venue of our interview, a ‘sleeping beauty’ as it is under renovation now, yet “will turn into a beauty when the works are finished in a year’s time. It is also going to be a star with its downtown location, one of the best in the city.” She also points out that “the changes that we accomplished in the Mercure Buda make it the first combo hotel in Hungary with 150 rooms of ibis and 250 rooms of Mercure. So, we are entering into the high season with several strong positive changes,” she adds. “When it comes to new hotels’ portfolio, we have opened the ibis Styles Budapest Airport hotel early this year and the new ibis Styles Budapest City West is scheduled to open this fall. We are looking forward to it to keep this

vibe and maintain the dynamic growth of our company. We are making massive investments in Budapest and Hungary because we see a very promising future here for us.”

HEARTIST Two years ago, AccorHotels started its cultural transformation for the benefit of the staff and the guests. “We are addressing our colleagues with the phrase ‘Feel valued!’ and our guests with the expression ‘Feel welcome!’. It’s about emotions, about encouraging our staff to be themselves, to really show their emotions, to work in an environment which is truly hassle-free and helps them to serve and treat our guests with authenticity, with a natural approach. It is very important to build a collaborative spirit in a team to achieve our common goals. We encourage initiatives, welcome innovations and empower our employees. We focus on hiring open-minded, motivated and talented people, integrating and keeping them in our ever-evolving company’s culture by offering them learning and career opportunities. We want our employees to feel that their personality, talent and work are appreciated. Happy employees will make our guests happy who will then keep coming back to our hotels... O C T O B E R

2 0 1 8

D I P L O M A C Y

T R A D E

photo by

The Area General Manager highlights that “all our hotels play an active role in their local communities and are committed to promoting sustainable development and solidarity through the Planet 21 program with numerous local initiatives. Our program which is now rooted in our daily hotel operations, involves the guests, the staff, our partners and the local communities, as well. It is a frame for our environmental actions in which all the hotels are actively taking part, adding local flavor to the general framework, helping people and organizations in need, like the Hungarian Red Cross and others.” For example, the money saved on laundry costs thanks to environment-minded guests who voluntarily used less towels is donated to a foundation. “This way, thousands of trees are planted every year, thanks to our guests” she adds. Another example of responsible company actions is tackling the issue of the food wastage problem. Food wastage generated at breakfast, during lunch and dinner is measured for further action. As a result, this year alone the wastage decreased by 10% as compared to 2017. “In this area, we have been cooperating with the Food Bank for years. At the end of the year, our staff prepare a full menu and deliver it to the people in need. We are also supporting foundations and associations engaged in various awareness activities” she says. The closest element of Planet21 to the heart of Sabina Bartyzel is running and spreading awareness of healthy lifestyle through running. This spring, AccorHotels participated in the Vivicitta running race in Budapest with 140 staff members, including Sabina, which meant that over 15% of the company’s employees were involved. “On October 7, we are running with the ‘Suhanj’ Foundation. I am really touched by this because they are helping disabled people to engage in sporting activities. In the evening just before the race, we have a crazy pasta party in order to have some carbohydrate loading before the run. And while preparing for these races, we are recording the miles or kilometres run, registering it in a chart and, eventually, the number of kilometres is converted into money and donated to the foundations” she explains. Her conclusion is that “guests are looking at how responsibly you act, how sustainable your activities are. It has also been revealed in a worldwide survey within the company that those hotels that take better care of the environment under the Planet 21 program are also more successful financially. So, there is a direct link. At the same time, more and more people prefer hotels that are more environment-friendly.”

DÁVID HARANGOZÓ

Planet21

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

10/4/18 1:39 PM

c c.

32 dt 2018 october.indb 32 CSR_hirdetes_280x360mm_1809-0280_v2.indd 1

M A R C H

2 0 1 5

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

10/4/18 1:39 PM 2018. 10. 01. 14:12:23

france be able to test the products under convenient conditions and spend more time in our stores. In order to do this, we revise the size and conditions of wheelchair access toilet in several stores. We make sure that mothers are able to breastfeed in as many stores as possible. In four stores, we are testing the Contact application, which makes available sign language interpretation service through video call. Our silent opening hours initiative, launched on October 1, serves the comfort of our autistic customers and their families. We started to deal with the subject on the basis of the idea of one of our colleagues. It is now unanimously endorsed by the managers of all of our 24 stores,” the Country Director stresses. With its professional partner, the Hungarian Autistic Society, Decathlon has thoroughly prepared for the quiet opening hours in recent months. Training sessions have been organized for all departmental staff so that the entire team can learn about autism and can advise on products in the most communicative way for people with autism. “From this fall on, between 10.00 and 12.00 hours on the first Monday of every month, we reduce the lighting, we mute the music, we use the loudspeaker only in case of emergency and we let our customers with autism advance the line in front of the cash desk. Of course, in this case, we are also glad to allow helper dogs into our stores, Diego Rango d'Aragona explains. “We ask our customers to take this initiative into consideration and have an understanding towards sporting people with autism in the quiet opening hours, as well,” he adds. Facebook posts and discussions with families affected by autism have also reaffirmed the company that they should deal with this issue. Bernadett Biró, who is a successful autistic swimmer, has been asked to be Decathlon’s campaign representative. “It is a very good feeling for us that all if our fellow sportsmen are happy to spend time with us, trying out products, regardless of whether they live with autism or do sports without such condition,” the points out.

SPORTY AND CUSTOMER ORIENTED DECATHLON’S SOCIAL RESPONSIBILITY POLICY TAKES CARE OF STAFF AND CUSTOMERS ALIKE

Company culture Diego Rango d'Aragona’s selection to this post was a very democratic process within the company. As to what that says about Decathlon’s working culture, he points out that “the aim is empowering our teammates, giving them the chance to take more responsibilities. Co-responsibilities in the whole Decathlon Hungary project generates engaged teammates. They know what they have to do to reach their targets and they believe that each of them is doing the same. The result is a positive spiral. The passion and the value around sports are part of the DNA of each team member. The internal transformation with the goal to change a hierarchical company to a flat one has started: new behaviors, new relationships appear among the teams. It is not easy to pass from a vertical

32 dt 2018 october.indb 32

organization to a network, but we are on the way. – We are leaving the competition behind us and achieving collaboration – it is our future.”

Diversity is richness Based on feedback from active employees, Decathlon Hungary was named the best workplace in this country for the third year in 2017. According to the Country Director, “the pleasure to come to work is a consequence of several best practices: an easy-going relationship between the employees, our teammates being oriented towards company philosophy, doing sports together and being autonomous in each project. We invest a lot of time in trainings to give the chance to everyone to be confident in her or himself and to be prepared for the daily business. We believe in the power of the youth that gives us the road for the future. I love to have diverse people around me, with different experiences, different backgrounds, etc. – diversity is richness. These ingredients create an incredible added value for Decathlon’s Hungarian project.

CSR in heart and soul In the framework of its corporate responsibility policy, Decathlon is partnering with several foundations, charity and aid organizations. Diego Rango d'Aragona highlights that they work closely with six Hungarian federations

Saving energy Caring for the environment is also an important consideration at Decathlon, especially in the field of saving energy at its stores through various means. “Based on our findings, our electricity consumption is approximately 85% of our total power consumption. Within the electric consumption, our stores' lighting accounts for about half of that. The lighting of our newly-opened stores is already of fully LED technology, we use it in our parking lots and in illuminating façade posters and logos, where 50% percent energy savings has been achieved. For the time being, solar energy is only used in our Budaörs store, but solar collectors can also be found on our stores in Debrecen, Maglód and Miskolc. The one on the latter can fully cover the annual production of hot water for the stores. In addition, we would like to motivate and support our teams to develop local environmentally-friendly solutions. We announced a tender for them, and the winners (three stores) had the opportunity to implement environmental friendly projects in the total value of HUF 10 million,” the Country Director concludes.

Silent shopping Last October, Decathlon in Hungary introduced what they call ‘silent shopping’ for autist customers. “We would like our customers to O C T O B E R

2 0 1 8

D I P L O M A C Y

T R A D E

ENDRE GRADVOLT/ENDIZAJN

He tells Diplomacy&Trade that he is very satisfied with his discovery period, so far. “As always, a new place gives me the desire to get involved more and more but the time is never enough. My team here is really sporty and customer oriented, there is a good mood and strong company culture, I feel in them the right curiosity to start to work together. I am building my convictions and the guidelines we will focus on, for the next two years. I can say that I immediately felt at home in this country!

and foundations (the Hungarian National Student and Leisure Sport Association for the Disabled (FODISZ); the Mauve Flower Foundation, the Down Foundation, the Guardian Foundation, the Budapest Bike Maffia and the Sport Association for the Visually Impaired) in this field. “They are partners that match our mission, which is providing support through sports and making sports available under any living condition. We strive to make our social responsibility work an activity that our 1,500 employees can identify with in their heart and soul and that we are all capable of doing. This is sports and exercise.” He adds that Decathlon organizes training and other sports sessions with these organizations on a regular basis. “Although, our staff can spend one day a year of working time participating in such programs, most of them are so fond of these common activities that they also attend these trainings in their free time.” Decathlon strives for the same level of responsibility towards its own team, as well. “We have deaf, hard of hearing and people with limb deficiencies among our staff members. We are looking forward to receiving applications from expectant mothers and mothers with several children and take into account the needs of their families when scheduling working hours. For our staff in difficult life situations, we have created a financial support base, and we provide many opportunities to exercise their favorite sport with little or no money.”

photo by

Diego Rango d'Aragona was appointed this May to oversee the Hungarian operations of Decathlon, Europe's largest sports retailer. After his appointment to the post of Country Director here, he said that he would become acquainted with a new country, a new culture and a new team through this new project.

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

10/4/18 1:39 PM

dt 2018 october.indb 33 AF180025_HUN_Produit MC_BALLONS_JOON_advertorial_short_H_280x360_PM v02 press.indd 1

10/4/18 1:39 PM 26.09.18 15:51

style

ARISTOCRATIC CHARM FROM SCOTLAND HOW TO LOOK LIKE A MILLION DOLLARS IN TWEED

Tweed history

Tweed is that quintessential British cloth redolent of country pursuits and aristocratic estates – just think Downton Abbey. Well yes, we all know that, but what is tweed? Where did it originate and why has it kept its place in British style and fashion through the decades? To answer some of these mystical questions, we turned to Budapest’s London trained bespoke tailor, Simon Skottowe. Originally called ‘tweel’, legend has it that due to the mistake of a London cloth merchant, this ancient country fabric was renamed tweed. Actually, tweed is the name of one of Scotland’s most famous rivers and this is how the misunderstanding occurred. These days, most of the finer tweed qualities are still made in the Tweed river region. The special minerals found in the river and its very soft water make it ideal for finishing high quality cloth.

Colors of the countryside Historically made for use in the country, for shepherds and farm workers, it has properties which make it ideal for outdoor pursuits. Hard wearing, water repellent and an excellent insulator. The characteristics of each region’s tweed depends, to a great degree, on the local climate as this effects the grade of the locally produced wool. Hence Harris Tweed from the windswept Outer Hebrides islands, has

a coarser feel, while those of more clement regions are softer to the touch. Modern tweeds also combine cashmere and other finer grade fleeces that produce very luxurious qualities. The most important characteristic of tweed is that the wool fleeces are dyed and dried before the various shades are blended and carded together before the actual yarn is spun. When woven this produces a cloth with a multitude of hues. Whether woven in a plain, twill or herringbone structure, these, the most classic tweed patterns recall the natural colors of the Scottish countryside.

I actually prefer tweeds with over checks, from small to enormous and multi-colored. Whether it be a classic three-piece hunting outfit, a vibrant city jacket or a heavy winter coat, the challenge of matching the check pattern while creating a beautiful shape is truly satisfying. Even after nearly 200 years since it was taken up by the British upper classes, tweed still maintains its aristocratic charm. While tweed is sometimes back in fashion, it is never out of fashion, and an enduring link to a stylish past.

The popularity of tweed fabric took off in the middle of the 19th century. Prince Albert bought the Balmoral estate in 1848 and Queen Victoria fell in love with Scotland. All of a sudden, everything Scottish became fashionable. Consequently ‘Keeping up with the Jones’ meant owning a Scottish estate and many money-strapped Lairds sold off the lands to rich English aristocrats. From ancient times, each clan, or family, in Scotland wore their own tartan, something that the English interlopers where not allowed to do. So, to mimic the local culture, estate tweeds were created to be worn exclusively by the gamekeepers and staff of a particular property. It was Miss Balfour of Glen Feshie who designed the first estate check by adding a red over check to the basic black and white shepherds check, and thus, differentiate her staff from the local hoi polloi. The enormous variety of tweed patterns today is thanks to the estate checks, most of which can now be worn by anyone, and are no longer exclusive to a particular estate.

Aristocratic charm Tweed is a deceptively tricky fabric to tailor. Very often the jackets lose their shape and take on a rather sack like appearance. Fortunately, the experts in Savile Row have found a solution even to this issue. The tailor actually slightly over shapes the jacket during its construction to compensate for the inevitable relaxation that will occur with wearing. Also, more stabilizing internals are included to control the shape.

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

EUR 72 Name: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Company: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Title:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Address: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Phone: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fax: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E-mail: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

MORE INFORMATION: +36 70 320 3051 - PLEASE SEND THE FILLED-IN FORM BACK TO arapaport@budapestweek.com

34 dt 2018 october.indb 34

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

O C T O B E R

2 0 1 8

D I P L O M A C Y

T R A D E

photos by COURTESY

PICTURES

PAYMENT BANK TRANSFER

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

10/4/18 1:40 PM

travel THAI WAVES

AIR TRAVEL TO THAILAND

Thailand is a long way from Budapest and experienced travelers seem to prefer a route which is fast but offers a stopover towards the middle. The best example is Qatar Airways that has 18 flights a week to Doha where, during a stopover, passengers can relax after five hours of flying before embarking on a journey to Bangkok, Phuket, Chiang Mai or Krabi in the Southeast Asian country.

THAILAND HAS BECOME AN ALL-YEAR TOURIST DESTINATION

According to a recent survey, Thailand is the most popular tourist destination in the Asia Pacific region. Péter Csajághy, General Manager at Thaiturizmus.hu is not surprised by this result. He tells Diplomacy&Trade that it must be the natural endowments, including the seashores and the northern mountainous region that attract so many people from all over the world. According to his experience, Thailand is becoming a destination that tourists tend to visit all year round – with regions like the inner bay area of the Andaman Sea becoming popular in the summer, as well. Another big factor he mentions is the hospitality of the Thai people. They are very kind and helpful not just in hotels or restaurants but on the street, as well. “I know a lot of people who have returned to Thailand because of such experience,” he says.

photos by

PÉTER CSAJÁGHY, DÁVID HARANGOZÓ

Hungarians to Thailand Péter Csajághy estimates - based on figures by the Tourism Authority of Thailand - that the number of Hungarian tourists visiting Thailand in a year is around 30,000. These travelers fall into several categories. The General Manager points out that there are people, mainly old age pensioners, who pack up in November and they stay in Thailand until March or April. Many of them have acquaintances or friends there. Another category is that of leisure tourists who go for one or more weeks. “I try to put some gentle pressure on people to go for more than a week because, on one hand, it is a long way from Hungary and on the other, they will fall in love with the country and not want to come back after one week.” It is the coastline destinations that are the most popular with Hungarian tourists. Although, many returning travelers long for less touristy places. w w w . d t e u r o p e . c o m

dt 2018 october.indb 35

“From time to time, we try to come up with new things for those who wish to return to Thailand. The country is not just Phuket or Pattaya. For instance, you can find beautiful beaches with very nice hotels within a half-an-hour drive from Pattaya City, with no hustling and bustling of the big city. Another quite popular place is Rayong because it is fairly close to Bangkok and it is a really calm place, ideal for those who just want to rest on the beach and perhaps want to have a 2-3-day trip over to Cambodia. Koh Chang could be a similar offer but there, you can choose from several beaches where you can find quiet places. Phuket has always been a hit with travelers to Thailand. But, located north of Phuket, an hour and a half drive from the airport is Khaolak, a place for tourists with a little higher budget, with very nice 4-5-star hotels right on the beach. It is a good price/value ratio,” he highlights.

On a higher budget Another location worth mentioning in the upper segment category is Koh Samui, he adds. “Logically, the higher category offers include accommodation of higher standard from flashy five-star hotels to luxury bungalows with private jet service from the airport. My experience is that there are more and more people on the Hungarian market who require specialized offers, like those fond of sailing. We have groups of friends and acquaintances traveling together, staying in a five-star hotel, renting a catamaran

D I P L O M A C Y

T R A D E

O C T O B E R

2 0 1 8

or a bigger boat and enjoying their time on the Thai waves. I am trying to dedicate more time and attention to these specialized trips and can feel that these clients require this special treatment,” he says.

Gastronomy and culture Thailand offers a wide range of cuisine from street food to five-star fancy and it is one of the attractive features of the country. Péter Csajághy notes that this is also reflected in the activities of the Thai Embassy in Budapest that promotes the country through its cuisine. “What I recommend to people traveling to Thailand is to taste whatever they like. Recently, I tried to convince members of the group I was with to taste scorpions, for instance, and some people actually did try...” There are some travelers who are also interested in the cultural aspects of the country when visiting Thailand. To them, the General Manager recommends Bangkok, the Royal Palace and various museums. “The more cultural-minded go to Sukhothai, Ayutthaya or they visit Doi Suthep in the north.” One of Péter Csajághy’s personal favorites is Prachuap Khiri Khan, a tiny little town with a beautiful beach and a nearby sanctuary in the Phraya Nakhon Cave. “It is not easy to access through stairs and rocks, but it offers an amazing sight and is definitely worth visiting,” he says. Concerning festivals, the Chinese and Thai New Years are extensively celebrated in the country. “At the latter one, no tourist stays dry in the general sprinkling of water. What is more spectacular is the Loi Krathong, a Siamese festival celebrated annually with decorated baskets of candles floated on a river,” the General Manager concludes.

35 10/4/18 1:40 PM

c c.

36 dt 2018 october.indb 36

F E B R U A R Y

2 0 1 5

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

10/4/18 1:40 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

WHERE BOREDOM NEVER SETTLES

FASCINATION WITH THE VARIETY OF PROGRAMS AND ACTIVITIES BUDAPEST CAN OFFER BY KARIMA KABBAJ, AMBASSADOR OF MOROCCO

without having to leave Budapest. In fact, in Morocco, we have a quite similar culture when it comes to relaxation and social gatherings. Cafés and small coffee shops are built on every corner of my city, Rabat, where many people get together after work or on weekends to relax and socialize.

Budapest and water When I think of Budapest, I think of it as one built on thermal baths. There’s a strong culture of soaking in the thermal water, with three original Turkish baths in the city – Rudas, Király and Gellért. Many locals and tourists use the thermal baths to socialize, like in the Széchenyi, relax and destress. This is something new to me as the baths we have in Morocco are totally of a different kind and use. It is true that we use the baths to relax and de-stress from the burden of work or life in general, but here, one can enjoy the thermal water by letting the body soak up the healing minerals, and for me, it’s even more beneficial.

photos by

BALÁZS GRÓSZ/WWW.MEGAPIXEL.HU, DÁVID HARANGOZÓ

Since my arrival to Budapest in 2016, I have been amazed by its architectural beauty as well as the number of cultural activities this city offers. The first thing I did upon my arrival here was to take a walk through the streets of Budapest where the city’s beauty became quickly apparent to me. I was fascinated by the number of architectural styles the buildings possess. Indeed, anyone from my family and friends who have visited me here could observe the same thing. The city attracts the eyes for its Art Nouveau architecture, beautifully shown in landmarks. There are also plenty of Gothic, Renaissance, Classicist and Baroque structures across the city, making it an architecture lover’s dream. For a nature lover like myself, living up the Buda Hill very close to Normafa was a blessing. The Residence of the Kingdom of Morocco in Hungary is just blocks away from this green space, which represents a natural escape for hiking and enjoying barbecues with family and friends

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

dt 2018 october.indb 37

D I P L O M A C Y

T R A D E

O C T O B E R

2 0 1 8

There’s more to Budapest than simply soaking in water, though, and with the Danube River cutting through the city, riverside walks and cruises add an additional layer of enjoyment. On many occasions, I had the opportunity to walk along the Danube enjoying the beautiful sky of the summer or contemplating the autumn breeze. I have even made it a routine during my weekends when opportunities allow it.

Foodie scene Budapest’s foodie scene is also very interesting to me with plenty of restaurants and cafés serving up delicious eats. Before coming here, I had never tasted Hungarian food such as goulash and lángos, which are readily available, as are international options and modern ones. Having said that, I love the fact that Hungarians can find varied and delicious culinary offerings in Budapest, whether it’s a hearty Hungarian meal, vegetarian and vegan, or Michelin star fine dining. One can’t complain.

However, and to my own astonishment, I couldn’t find much choice when it comes to Middle Eastern cuisine, let alone North African. As you may know, Morocco is very famous for its rich culinary art and Moroccan restaurants are wide spread all over Europe. However, in Hungary I can say that there is particularly no Moroccan restaurant in the city, this taking into consideration that the number of Moroccans now living and studying in Hungary is increasing every year especially with the Stipendium Hungaricum scholarship that Hungary grants Moroccan students. I hope in the near future we would see some Moroccan restaurants to open in Budapest, as a start, and eventually all over Hungary. After all, food is known to bring cultural bridges between people even closer.

Bringing the two countries closer As a matter of fact, it needs to be stated that the Hungarian and the Moroccan cultures were not very known to each other. Although, many Moroccans like to travel and have an urge to discover other cultures, they prefer to travel to other destinations in Central Europe like Prague and Vienna. However, since my posting started here, I have made the promotion of Moroccan culture in Hungary and Hungarian Culture in Morocco my main objective. Therefore, since last year, we have initiated two directs flights to Marrakech and Agadir to make it possible and accessible to both Hungarians and Moroccans to discover each other’s countries and cultures, which were until now unheralded by Hungarian and Moroccans. It is in this effort to connect the two cultures that the Embassy recently organized the Moroccan cultural week, in cooperation with the Moroccan Ministry of Tourism and la Maison de l’Artisan, which took place in September 2018 in Városliget (City Park). Many Moroccan handicrafts were exhibited and a fashion show was held at the opening ceremony of this event. It was a real success and many Hungarians as well as international tourists visiting Budapest had the possibility to visit the Moroccan village and enjoy the various Moroccan handicrafts. I can’t conclude without stating how fascinated I am by the numerous events happening in the city which are appealing to any visitor. I can state that I have attended various events ranging from exhibitions, food and beverages festivals, operas, modern and classical ballets, to concerts in the Papp László Sports Arena. In fact, one can only enjoy the positive vibe this beautiful city offers and where boredom never settles.

37 10/4/18 1:40 PM

society

Mexican Street Fest The guest country of the Bartók Béla ‘Eleven Ősz’ Boulevard Festival in Budapest this September was Mexico. The event – jointly organized by the Bartók Béla Boulevard Association and the Embassy of Mexico in Hungary – included eleven exhibitions, several concerts, performances, dance performances, children's programs and workshops as well as gastronomic experiences.

Brazil National Day The Ambassador of Brazil, Maria Laura da Rocha welcomed guests to the KOGART House event center on Andrássy Avenue in Budapest for a vin d’honneur on the occasion of the 196th Anniversary of Brazil’s independence from the United Kingdom of Portugal, Brazil and the Algarves in 1822.

Morocco Cultural Week The Ambassador of the Kingdom of Morocco to Hungary, Karima Kabbaj welcomed visitors to the Vajdahunyad Castle in Budapest’s City Park for a week-end-long exhibit of Moroccan artisan art and other programs, including a fashion show. This was the first time that the African country presented its history and cultural values in Hungary.

New Ambassadors

38 dt 2018 october.indb 38

O C T O B E R

2 0 1 8

D I P L O M A C Y

T R A D E

HARANGOZÓ photos by DÁVID

The Ambassador of the Republic of Poland, Jerzy Snopek and Director of the Adam Mickiewicz Institute, Krzysztof Olendzki hosted a cocktail reception at the Embassy this September in celebration of the opening of ‘Polish Focus at the Bridging Europe Festival’ at the Palace of Arts in Budapest.

HARANGOZÓ

Polish Cocktail Reception

photos by DÁVID

Five new ambassadors accredited to Hungary presented their credentials to Hungarian President János Áder at the Sándor Palace in the Buda Castle (pictured from left to right): Dr. Pavol Hamžík from the Republic of Slovakia; Markku Virri from the Republic of Finland; Pascale Andreani from the Republic of France; Raul Salazar Cosio from the Republic of Peru and Michael A. Blume from the Holy See.

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

10/4/18 1:40 PM

society World Press Photo 2018 The 2018 exhibition of the world's most prestigious annual photo exhibition opened in Budapest this September, in the Hungarian National Museum. Showcased, until October 23, are the biggest moments of last year. This exhibition has been organized in Budapest by Pulitzer Memorial Award winning Hungarian photographer Tamás Révész since he won a World Press Award himself in 1991.

India Farewell Reception To bid farewell on completion of his tenure of three years as the Ambassador of the Republic of India to Hungary, Rahul Chhabra hosted an official dinner in downtown Budapest. Ambassador Chhabra’s next ambassadorial assignment is in Kenya from October 2018.

Mexico Fiesta 2018 The Ambassador of Mexico David Nájera invited guests, including members of the diplomatic corps and Mexican nationals living in Hungary, to his residence in the Buda Hills to celebrate his country’s Independence Day from Spain.

Saudi National Day

China National Day

HARANGOZÓ

photos by DÁVID

On the occasion of the 69th anniversary of the establishment of the People’s Republic of China, the country’s Ambassador to Hungary, Duan Jielong welcomed guests for a reception in the Ballroom of the Corinthia Hotel in Budapest.

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

dt 2018 october.indb 39

D I P L O M A C Y

T R A D E

O C T O B E R

2 0 1 8

This September, the Kingdom of Saudi Arabia celebrated the 88th anniversary of the unification of the Kingdom of Saudi Arabia by the late King Abdul-Aziz Al Saud in 1932. On this National Day, the country’s Ambassador, Mohammed A. Almatrafi welcomed guests for a reception in the Ballroom of the Budapest Marriott Hotel.

39 10/4/18 1:40 PM

what's on BRIT FLOYD ECLIPSE WORLD TOUR 2018

FINDING FREEDOM IN THE WATER/ANNA BOYIAZIS (WORLD PRESS PHOTO 2018), PETER GANNUSHKIN

OCTOBER 10 – JANUARY 14, 2019, HUNGARIAN NATIONAL GALLERY In the 1950s a small group of painters who shared the same artistic concerns and were connected by ties of friendship and mutual admiration explored the appearance and vulnerability of the body, with the city of London as their surrounding context. Through the depiction of the figure and their own everyday landscape, these artists conveyed the delicacy and vitality of the human condition while simultaneously developing new approaches and styles, reinventing their manner of representing life with pronounced individuality and imbuing painting with a rare intensity. This exhibition, organized at the Hungarian National Gallery (within the Castle District), brought together Francis Bacon’s powerful solitude, Lucian Freud’s carnal angst, Michael Andrews’ encapsulated ego, Frank Auerbach’s three-dimensional painting, David Bomberg’s emotional force, William Coldstream’s rigorous measure, Ronald B. Kitaj’s multiplicity, Leon Kossoff’s visceral quality, Paula Rego’s subversion and Euan Uglow’s proportion, all of them associated with what has come to be referred to as the School of London, a label that has not, however, been accepted by art historians or by the artists themselves. www.mng.hu

photos by

BACON, FREUD AND THE SCHOOL OF LONDON

THE LUCIAN FREUD ARCHIVE/PHOTO TATE, BENJAMIN HARDMAN, ANDRÁS KOLLMANN, LIVE NATION, DESIGN WEEK

OCTOBER 5-21, MULTIPLE VENUES IN BUDAPEST Known for many years as Budapest Autumn Festival, this fest is Europe’s leading happening of contemporary arts, during which Budapest’s cultural life comes alive with artists and works of contemporary art ranging from classical and pop music to dance, to films and fine arts, to children’s programs. As many as 100 programs are on offer at different venues, such as Müpa Budapest, Liszt Academy, A38 Ship, Budapest Music Center, Várkert Bazár, Vigadó and Akvárium, in addition to many public places in the city. This year, the festival celebrates its 27th anniversary with a focus on the art and artists of the Baltic States, as well as Hungarian composer Béla Bartók. The affiliated events will include the Budapest Ritmo world music festival, the Art Market Budapest and the Margin Literary Festival and Book Fair. www.cafebudapestfest.hu

photos by

CAFE BUDAPEST CONTEMPORARY ARTS FESTIVAL

NOVEMBER 20, BARBA NEGRA MUSIC CLUB Brit Floyd, the world’s greatest Pink Floyd tribute show returns to the stage in 2018 for a very special '45th Anniversary' retrospective of Pink Floyd’s iconic 1973 album, The Dark Side of the Moon. Having sold in excess of 45 million copies and judged by many as the greatest rock album of all time, The Dark Side of the Moon was an ambitious psychedelic masterpiece that redefined rock itself and propelled Pink Floyd and its members to rock immortality. The Brit Floyd show has truly become a phenomenon, widely regarded as the world's greatest live tribute to Pink Floyd. Faithfully recreating the scale and pomp of the final 1994 Division Bell tour, complete with a stunning million dollar light show, large circle screen and arch plus moving lights, lasers, inflatables and theatrics. A Brit Floyd show really is as close as fans will get to experiencing the magnificence of a Pink Floyd show live. www.livenation.hu

DESIGN WEEK BUDAPEST

OCTOBER 5 – 19 AT MULTIPLE LOCATIONS The biggest design event of Hungary, Design Week takes place at more than 100 locations throughout Budapest. First organized in 2004, the festival aims to share knowledge and information about the world of design by involving individual designers and business ventures and facilitating a cooperation between them, in order to create a solid and well-functioning design-ecosystem in Hungary. The guest country this year is Germany, one of the leaders of the design market and Hungary’s most important trading partner. The event series will also showcase the work of local designers and assist them in their ventures. www.designhet.hu

40 dt 2018 october.indb 40

O C T O B E R

2 0 1 8

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

10/4/18 1:40 PM

what's on COLIN STETSON AND JESSICA MOSS CONCERT

NOVEMBER 3, TRAFÓ Colin Stetson is an American saxophonist and multireedist. He is best known as a regular collaborator of the indie rock acts Arcade Fire, Bon Iver, Bell Orchestre, and Ex Eye. In addition to saxophone, he plays clarinet, bass clarinet, French horn, flute, and cornet. He is credited with multiple solo releases, including his debut and subsequent albums New History Warfare Vol. 1, 2, & 3. He has performed and recorded with dozens of artists, including Tom Waits, TV on the Radio, Bon Iver, Lou Reed, Sinéad O'Connor, Fink, Jolie Holland, The Chemical Brothers and David Gilmore. His extended saxophone techniques cover advanced circular breathing, multiphonics, altissimo, microtones, (reed) vocalizations, percussive valve-work, clicking keys, and growling. Violinist Jessica Moss is an integral part of the Montreal underground and independent music scene. Part of the Constellation Records family since it’s inception, she is best known as a permanent member of Silver Mt Zion. She was also a founding member of Black Ox Orkestar, has an long-term creative history with Carla Bozulich, and was a key part of Vic Chestnut’s albums on the label. She has collaborated extensively with New York based film maker Jem Cohen and his Gravity Hill project along with Guy Picciotto (fugazi), Jim White (Dirty Three, Xylouris White) and Matana Roberts among others. Jessica is a sought-after guest live and in studio, most recently joining Big Brave for their previous and upcoming releases with Southern Lord, and Zu for their critically acclaimed recent release Jhator out on House of Mythology. As a solo performer, she aligns her performances with the tradition of storytelling, eschewing traditional form in favor of durational, multi-movement pieces with wide scope and emotional depth. www.trafo.hu

THE LUCIAN FREUD ARCHIVE/PHOTO TATE, BENJAMIN HARDMAN, ANDRÁS KOLLMANN, LIVE NATION, DESIGN WEEK

FINDING FREEDOM IN THE WATER/ANNA BOYIAZIS (WORLD PRESS PHOTO 2018), PETER GANNUSHKIN

photos by

WORLD PRESS PHOTO 2018

UNTIL OCTOBER 23, HUNGARIAN NATIONAL MUSEUM Hailed as the Oscars of photojournalism, the World Press Photo exhibitions attract up to 4 million people each year worldwide in some 45 different countries. Now, in its 61st year, the World Press Photo exhibition is the most significant travelling exhibition dedicated entirely to photojournalism, profiling the globe's top press photographers and showcasing the world's most provocative and poignant press photos. Every February, an international panel of judges selects the winning photographs from the entries. For the 2018 competition, 4,548 photographers submitted more than 73,000 images. From the 307 shortlisted photographs, 42 photographers were awarded 45 prizes across eight categories. Top honors this year went to Venezuelan photographer Ronaldo Schemidt, for his photo on José Víctor Salazar Balza as he caught fire amid violent clashes with riot police during a protest against President Nicolás Maduro, in Caracas, Venezuela. Judges praised the emotion captured in the photograph, which has also won Schemidt – a staff photographer for Agence France-Presse – first prize in the Spot News Single category. Tamás Révész, Pulitzer Memorial Award winning Hungarian photographer has been the organizer of World Press Photo Exhibition in Budapest since he won a World Press Award himself in 1991. “Last year’s exhibition drew the attention of more than 30,000 people who often left speechless, some with a tear in their eyes,” he says. “This year’s collection also consists moving, sometimes very disturbing images - seeing them one after the other is a very powerful experience, even if you have followed the news through the year 2017.” Révész believes that the retrospective photo exhibition is a call for tolerance, empathy and humanity. www.worldpressphotohu.info

33RD SPAR BUDAPEST MARATHON

OCTOBER 6-7 Join over 27,000 participants in the SPAR Budapest Marathon – one of the most popular and probably the most international running races in Hungary, (Last year the event attracted more than 5,400 foreign runners from 84 countries. Most runners came from France, Britain and Germany, but there were also participants from Thailand, Ghana and Vietnam.) The course leads through the center of the city, across the Chain Bridge and down the famous Andrássy Avenue. With distances ranging from 400 m to 42 km everyone in the family can find their own challenge and take part in the running festival. Participants can choose to run the 42 kilometer-long distance individually, or as a relay race with one or two other members. www.futanet.hu

MURDER – THE KILLER EXHIBITION

UNTIL 2019, CENTRAL PASSAGE This grandiose exhibition about the most notorious murderers and serial killers of the past decades is showcased in 21 rooms, covering up to 1,000 square meters, backed up with hi-tech effects to stimulate every sense, making the stories of Elizabeth Báthory (who bathed in the blood of virgins), Vlad Tepes, Jack the Ripper and Al Capone come to life. Based on historical facts, the exhibition presents the tragic reality of these criminals to visitors, commemorates the victims and sheds some light on the historical and social aspects of the murders. “We’d like to suggest that nobody is born a monster. Poisonous parents, sexual harassment suffered in childhood, physical and psychological terror, excommunication and deep psychic wounds gained in their youth are in the background of all of the stories,” organizers note. www.murder.hu w w w . d t e u r o p e . c o m

dt 2018 october.indb 41

D I P L O M A C Y

T R A D E

O C T O B E R

2 0 1 8

41 10/4/18 1:40 PM

gastronomy

CHIMNEY CAKE FESTIVAL 2018 OCTOBER 12-14

The fall’s most aromatic food festival will be organized at Gesztenyés Kert in Budapest’s District 12 on Csörsz utca. The goal of the three-day-fest has remained unchanged since its foundation: organizers aim to preserve Hungarian customs by raising the popularity of the chimney cake, presenting its original, traditional method of preparation. Chimney cakes will be prepared over charcoal, in an endless variety of tastes and sizes, including ’healthy choices’ such as gluten and lactose free versions. In addition to the irresistible smell and taste of the chimney cake, the festival offers cultural programs with famous Hungarian performers on stage. www.kurtoskalacsfesztival.hu

DID YOU KNOW?

• Chimney cake is a special product with an absolutely unique method of preparation and production. It received its

VOGUE

1137 Budapest, Carl Lutz rakpart 1. +36 1 350 7000 • + 36 30 942 5027 reservation@resturantvogue.hu • www.restaurantvogue.hu

To experience a real culinary journey along the Danube, the best place to visit is this ship-restaurant that introduces the cuisines from the countries that line the Danube banks. Chef Sosic Slobodan caters to those who appreciate traditional South-Slavic, Hungarian and Mediterranean flavors. Due to its superlative location, Vogue is a great place to meet and unwind: although you are in the heart of the city, you don't hear the noise of the traffic - it is an intimate zone where you can admire the sunset over the Buda castle and Margaret Island, throughout the year. The attentive service and the gorgeous panorama - this combo won’t leave you disappointed.

name from its shape, which resembles a chimneystack. The dough is cut into long strips, which are then rolled around an oiled, thick wooden spit and often dipped in various flavorings (traditionally cinnamon and sugar) and then baked over charcoal while the spit is turned by hand. • In 2015, the Hungaricum Commission has declared Chimney Cake as a Hungaricum. It also has a ‘TraditionsFlavors-Regions’ trademark. • The first recorded recipe was included in a Transylvanian cookbook published in 1784 by Lady Mária Mikes of Zabola. By the end of the 18th century, the pastry had become popular throughout all Hungarian language territories and had become an important element of both folk and city cuisine. In the 19th and 20th centuries, the recipe was included in several famous Hungarian cook books, and in the early 20th century people began coating the exterior with crushed walnuts and sugar. Transdanubian terms for it include “roll on a stick”, “truncheon bun” and “cudgel cake”, while in the eastern part of the country people usually call it chimney cake, chimney bun, “chimney dunker” or just a “chimney”. • Chimney cake set out on its journey of world conquest in the 1990’s and can now be found in many countries, including New York City in the U.S. • In case you miss the event, head to Édes Mackó, a brand new pastry shop fully dedicated to chimney cake – open year-round near the Zoo, at Holnemvolt Castle.

PIG SLAUGHTER SAUSAGE FESTIVAL

42 dt 2018 october.indb 42

SHUTTERSTOCK.COM, CSABA SCHUMY/DFP.HU

OCTOBER 12-14, HUNGARIAN RAILWAY MUSEUM

photos by VOGUE,

For those interested in witnessing the centuries old ritual of a Hungarian pig slaughter, in a sophisticated way (without horroristic effects) and enjoying pork dishes, freshly made sausages and other goodies, this festival is a must. The venue for this gastro-cult fest is in Budapest’s District 14, at the Railway Museum and its huge park. Of course, all of the interactive programs offered by the museum are free to visitors, including steam engine riding, velorails or railbikes, the train rotating platform, the railcars and the omnibus. A live animal farm will present indigenous Hungarian species such as black buffalo, grey cattle, racka sheep and mangalica pig. A farmer’s market, a wine terrace and a pálinka street will be open to visitors and, in the evening, visitors can warm up at the 3,000m 2 Orient engine house, sipping pálinka and listening to gypsy, folk and rock tunes. www.disznotoroskolbaszfesztival.hu

O C T O B E R

2 0 1 8

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

10/4/18 1:40 PM

hospitality

On September 1, Marriott International launched its annual You Eat, We Give fundraising campaign, which aims to raise EUR 400,000 for youth charities across Europe in 2018. The Budapest Marriott Hotel and Courtyard by Marriott Budapest City Center are once again excited to be playing a role in strengthening the hotel chain`s commitment to young people across Europe. For the f irst time this year, The RitzCarlton`s European properties, including The Ritz-Carlton, Budapest are joining the charity campaign.

Throughout September and October, Marriott will donate the equivalent of EUR 1 for every lunch and dinner served to guests and visitors at three Budapest based Marriott branded hotels to fund a variety of programs that support young people from challenging backgrounds. Participating restaurants are Deák St. Kitchen (The Ritz-Carlton, Budapest), Peppers Mediterranean Grill (Budapest Marriott Hotel) and Oléo Pazzo Mediterranean Bistro (Courtyard by Marriott Budapest City Center). Part of Marriott’s Europe-wide ‘World of Opportunity’ initiative, the ‘You Eat, We Give’ promotion aims to tackle youth unemployment by donating to partner charities. Funds raised by The Ritz-Carlton, Budapest, the Budapest Marriott Hotel and the Courtyard by Marriott Budapest City Center along with other European properties will provide vocational training and life-skills courses through SOS Children’s Villages’ Youth Programs. Meanwhile, UK donations will enable the youth charity, The Prince’s Trust, to run employability courses for vulnerable young people. Marriott’s guests and visitors have helped to raise more than EUR 3 million cash and in-kind donations since the ‘You Eat, We Give’ campaign’s launch in 2012, and Marriott employees have worked an extra 60,000 voluntary hours helping young people on the path to a career. Reiner Sachau, chief operations officer for Marriott International in Europe, commented: “Marriott has a long history of investing in programs that help young people. It’s been amazing to see the results of our ‘You Eat, We Give’ fundraising campaign so far, and we’re really proud of the commitment our hotels have shown in helping young people in Europe realize their full potential and open the doors to meaningful work. We’re excited to be able to empower our diners again to join us in achieving our goals.

About SOS Children's Villages

THREE MARRIOTT HOTELS IN BUDAPEST JOIN FORCES TO STRENGTHEN MARRIOTT’S COMMITMENT TO YOUTH IN EUROPE

SOS Children's Villages is the largest non-governmental organization focused on supporting children without parental care and families at risk. Founded in 1949, the organization today runs 2,300 programs reaching more than a million children and adults in 135 countries and territories. They adhere to the principle that every child grows best in a family environment, with loving parents or caregivers, living together with their siblings, in a place they can call home. They also help care for and protect at-risk children and families in more than 20 humanitarian emergencies.

SUNDAY BRUNCH EVERY SUNDAY 12:00-16:00

Rich Asian-fusion buffet selection · Main Course made a’ la minute Live sushi and cooking station · Unmatched atmosphere with Buddha-Bar music

CLASSIC BRUNCH: 9.900 HUF*

includes a welcome cocktail, complimentary water and soft drinks

DELUXE BRUNCH: 12.900 HUF*

includes a welcome cocktail, complimentary water and soft drinks, unlimited sparkling wine, wine and beer, coffee and tea

* +12% service charge

MORE INFORMATION & TABLE RESERVATION · restaurant@buddhabarhotel.hu · +36 1 799 7302 · H-1052 Budapest, Váci u. 34. · www.restaurant.buddhabarhotel.hu BB_sunday_brunch_260x160.indd 3 w w w . d t e u r o p e . c o m

dt 2018 october.indb 43

D I P L O M A C Y

T R A D E

O C T O B E R

2 0 1 8

2018.09.26. 9:14:01

10/4/18 1:40 PM

c c.

N e x t

l e v e l c a n b e i m a g i n e d . N e x t d i m e n s i o n h a s t o b e e x p e r i e n c e d . The guiding light With optional HD The new Audi Q8.

to follow your vision. Matrix LED headlight. W e l c o m e t o t h e 8 th d i m e n s i o n .

D I M

WELCOME TO

THE

E T

THE

NEW

AUDI

44 dt 2018 october.indb 44 Audi_Q8_280x360_diplomacy_trade.indd 1

Combined fuel consumption in l/100 km: 6,6–6,8; combined CO₂ emissions in g/km: 172–178. Fuel consumption and CO₂ emission figures given in ranges depend on the tyre/wheel sets. M A R C H

2 0 1 5

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

10/4/18 1:40 PM 2018.09.17. 10:10:18