Diplomacy & Trade 2019 December by Diplomacy&Trade

DECEMBER 2019 HUF 1710

EUR 6

GOING FOR GROWTH

THE DIGITALIZATION OF HUNGARY’S ECONOMY IS MORE ADVANCED THAN OFFICIAL STATISTICS SHOW. IF NURTURED APPROPRIATELY, TECHNOLOGICAL ADVANCES CAN JUMPSTART GROWTH AND SHIELD THE COUNTRY FROM GLOBAL ECONOMIC MALAISE. SEE ARTICLE on page 22

Belgium

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Recently appointed Belgian Ambassador to Hungary Siegfried Peinen believes that Belgian businesses are punching above their weight as investors in Hungary and their continued interest in the country opens new vistas for collaboration in traditional business sectors and in the area of new and smart technologies alike. In an exclusive interview with Diplomacy&Trade, the Ambassador highlights that bilateral trade between Belgium and Hungary is growing at an outstanding pace. see articles on pages 10-19

A Guardian of Traditions

Internationally acclaimed hotelier Peter Knoll manages two of Hungary’s most prestigious hospitality establishments: the Gundel restaurant and Hilton Budapest in the Castle District. The executive believes that creating harmony between innovation and tradition is his biggest challenge. How does he balance between these two weighty jobs? see more on page 24

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Peter Freed PUBLISHER

AND DON’T FORGET

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contents 05 ON THE RECORD 06-07 COMPANY BRIEFS 08 ANALYSIS

The Democratic Party’s race for the White House 10-19 BELGIAN FOCUS Interview with the Belgian Ambassador to Hungary, Siegfried Peinen; The Representation of Wallonia; Flanders Trade & Investment; K&H Group Hungary; A Belgian-Hungarian voice; The Three Corners 20-23 BUSINESS Zsolnay back in business; Digital economy; APG

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

A guardian of Hungarian traditions 25 SOCIETY 26 WITTYLEAKS by the Polish Ambassador 27 CULTURE ‘Forever You’, a very Italian movie 28-29 WHAT’S ON Concerts, festivals, events and exhibitions in and out of Budapest 30 GASTRONOMY Festive season with The Ritz-Carlton 31 WINE Toast with aszú

The January edition of Diplomacy&Trade will feature a special Focus section dedicated to Croatia, which takes over the rotating presidency of the European Union in the first half of 2020. The motto of the Croatian presidency, ‘A strong Europe in a world of challenges’, vividly conveys that EU member countries and the bloc are facing turbulent times. The section will shed light on the dynamic development in economic relations between Croatia and Hungary, driven by cooperation in the energy sector, transport and joint infrastructure developments. Economic links are also strong in the petrochemical and electronic sectors, telecommunications, food and agricultural industries, as well as tourism. The exclusive interviews with Croatian Ambassador Mladen Andrlić and Croatian Foreign Minister Gordan Grlić Radman will provide further details about the many aspects of bilateral relations.

Fischer, Jemal Countess/PSG, KPMG, István Szécsi, Lázár Todoroff, Gyula Bartos, Anthonis van Dyck, Zsolnay, Embassy of Poland, Embassy of Japan, Carlos Rodrigues, Gundel, Budapest Music Center, Live Nation, András Dabasi, Judit Kardos, Peter Paul Rubens, Marco Borggreve, www.stephanieschlesser.com, László Balkányi, The Ritz-Carlton Budapest, PIXELTASTER, MTI Photos: Boglárka Bodnár, Attila Kovács, Szilárd Koszticsák, Márton Mónus, Lajos Soós

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CONTRIBUTORS: Edith Balázs, Sándor Laczkó, Tamás Magyarics, Réka A. Francisck, Jerzy Snopek PHOTO CONTRIBUTORS: Depositphotos.com (Cover), Furmint Photo, True Colours-Glorius Films, Depositphotos.com, MTI/Prime Minister's Press Office/Zoltán

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Tokaj Aszú: a heavenly wine for the festive page 31 season

Italian director Marco Danieli revives the spirit of Italy of the 1970s in his romantic musical 'Forever You', page 27 featuring the cult songs of Lucio Battisti

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The world as we know it is changing considerably as a result of the technological revolution. The fusion of technologies means that every successful economy will need to be digital at heart to remain in the race. Digital transformation is no longer a luxury; it has become the engine driving growth and shaping the future success and expansion of economies worldwide. The business analysis in this issue of Diplomacy&Trade reveals that while Hungary’s economy is far more digitalized than official statistics suggest, the challenges that lie ahead are by no means trivial and the stakes are higher than ever before. The country focus featuring the Kingdom of Belgium sheds light on the thriving economic relations between the two countries and the need for further action to promote tourism. The exclusive interview with Belgian Ambassador to Hungary, Siegfried Peinen may be the diplomat’s first official mission statement given that he took up his post in Budapest in August. He stressed that Hungary remains an attractive investment destination for Belgian businesses and with the advancement of green and smart technologies, Belgian representatives of these industries are also seeking opportunities in the Hungarian market. Next year will bring about the world’s most closely watched political event, the election of the next president of the United States. Our foreign policy analyst weighs the chances of the Democratic Party winning the race for the White House and argues that some of the “outlandish” proposals put forward by current Democratic presidential candidates may risk alienating millions of Democratic leaning voters in America. Do not miss our story on the Tokaj Aszú, a world renowned Hungarikum and a must have accompaniment of every family meal during the festive season. Be it a dish of foie gras, a spicy Asian fare or classic Hungarian Christmas cakes, the rich diversity of Tokaj Aszús guarantees mouthwatering combinations. 2019 has been a hectic year in the world and chances are the new year will bring its fair share of challenges. But thankfully the heavy lifting for 2019 is drawing to an end as the festive season approaches. We at Diplomacy&Trade wish you and yours a very happy holiday season and much comfort and delight in 2020. May your homes and hearts be illuminated with love and happiness not only in the last days of December but throughout 2020!

The Democratic Party's challenges in the 2020 U.S. elections

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letter from the publisher

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on the record The region is noted for its sweet wines made from grapes affected by noble rot, a style of win that has a long history in this region. It is home to ‘Tokaji aszú’, the world's oldest botrytized wine. The 'nectar' coming from the grapes of Tokaj is also mentioned in the national anthem of Hungary. The EU’S Agriculture and Rural Development Commissioner, Phil Hogan said that “European Geographical Indication products are renowned across the world for their quality. Consumers are willing to pay a higher price, trusting the origin and authenticity of these products.” The EU list of GI to be protected in China includes products such as Cava, Champagne, Feta, Irish whiskey, Münchener Bier, Ouzo, Polska Wódka, Porto, Prosciutto di Parma and Queso Manchego. Some of the Chinese products indicated in the list are Pixian Dou Ban (Pixian Bean Paste), Anji Bai Cha (Anji White Tea), Panjin Da Mi (Panjin rice) and Anqiu Da Jiang (Anqiu Ginger). The agreement is expected to enter into force before the end of 2020.

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MIGRATION, EU MEMBERSHIP ON THE AGENDA AT ORBÁNERDOGAN MEETING

Hungarian Prime Minister Viktor Orbán stressed that Turkey was a strategic partner for Hungary and praised Turkey’s role in stopping Europe-bound migration after meeting with Turkish President Recep Tayyip Erdogan in Budapest in November. The Hungarian premier pointed out that Turkey stopped 350,000 illegal immigrants from entering Europe this year alone and offered Hungary’s support in the re-building efforts taking place in countries neighboring Turkey, state news service MTI reported. “The aim is for people who have left their homeland to be able to return there; problems shouldn’t be brought to Europe but rather help should be brought where the problems arise,” Orbán said at the joint press conference with Erdogan. Orbán and Erdogan agreed in 2013 to establish a bilateral strategic council operating at the highest political level and to meet each year. The two countries want to boost the volume of bilateral trade to EUR 6 billion from the current EUR 3.1-3.2 billion, Orbán said, adding that the planned natural gas pipeline connecting Turkey and central Europe would be highly beneficial to the region. The pipeline is expected to be operational by the end of 2021, the Hungarian premier said. Speaking on Turkey’s military actions in Syria, Orbán noted that “we must support Turkey’s efforts to create security zones in its vicinity and re-settle migrants” there. Erdogan said at a joint press conference with the Hungarian premier that there were nearly four million migrants currently in Turkey and the Turkish government was “patiently” holding back the crowds from traveling further to Europe, thus honoring its cooperation agreement with the EU even though the bloc has not yet transferred all the funds the two sides had earlier agreed upon. He thanked Hungary for supporting Turkey in its fight against terrorism and expressed his gratitude to the Hungarian government for backing Turkey’s EU accession plans. Brussels has been very negative toward Turkey lately, which is very harmful for the bloc given that Turkey's membership would benefit the EU, Erdogan said. He added that a delegation of 15 Turkish businessmen had accompanied him on his trip to Budapest to hold talks with Hungarian businesses on potential cooperation. Ankara will provide all the necessary support to bolster bilateral economic ties, Erdogan said. A crowd of demonstrators gathered in downtown Budapest to protest Erdogan’s visit and express their sympathy and support for the Kurdish people. Budapest’s recently elected mayor, Gergely Karácsony joined the demonstration, online news portal index.hu said.

HUNGARIAN BRAND PROTECTED IN EU-CHINA AGREEMENT

Tokaji is the only Hungarian brand featured on the list of 100 European products protected by geographical indications (GI), according to an agreement signed by the EU and China. The historical wine region of Tokaj, located in northeastern Hungary and southeastern Slovakia, was declared a World Heritage Site in 2002 under the name Tokaj Wine Region Historic Cultural Landscape. In 1757 a royal decree established a closed production district in Tokaj, creating the world's second system of wine appellation after Chianti.

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HUNGARY INAUGURATES HUF 190 BILLION FOOTBALL STADIUM The Puskás Arena, Hungary’s new national football stadium located in Budapest, was officially inaugurated in mid-November. The 68,000-seat facility cost Hungarian taxpayers HUF 190 billion (EUR 610 million), making it one of the most expensive soccer facilities in Europe. A football benchmark study by KPMG notes that only four recently built soccer facilities carry a heftier price tag: Tottenham’s multipurpose stadium in London and three arenas in Russia. Wanda Metropolitano (67,703 seats), the new home of Atlético Madrid, was built for just a little over half the cost of the new Budapest facility.

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HUNGARIAN ACTRESS WINS EMMY AWARD

Hungarian actress Marina Gera is the first Hungarian to win the International Emmy Award for Best Performance by an Actress. She received the recognition for her role as Irén in the movie 'Örök Tél' (Eternal Winter) at the Awards Gala in New York City in November. Director Attila Szász’s movie, which has received numerous other awards over the past two years, takes place around Christmas in 1944. Soviet soldiers invade Hungary and drag every young woman with German origins from a small village to transport them to a Soviet labor camp where they are forced to work in the coal mines under inhuman conditions. This is where Irén meets Rajmund, who embarks on teaching her the skills necessary to survive. While she is determined to return home to her little daughter and family, fate has a different plan: Irén and Rajmund fall in love.

AMCHAM HUNGARY CELEBRATES 30-YEAR ANNIVERSARY

The Puskás Arena was constructed on the site of the former national stadium, which was completed in 1953 and later named after the legendary Hungary and Real Madrid player Ferenc Puskás. Balázs Fürjes, government commissioner in charge of the construction of the facility, highlighted at the opening that the project provided jobs for 15,000 Hungarians. At the inauguration match on November 15, Hungary lost 2-1 to Uruguay. The Puskás Arena will host four matches in next year’s European Football Championships. The Hungarian national team lost their crucial qualifying game to Wales four days after the Uruguay match and now face Bulgaria in the playoff stage. T R A D E

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The American Chamber of Commerce in Hungary (AmCham), one of the leading independent, nonprofit organizations in the country, celebrated its 30th anniversary on November 14 with a gala attended by 450 Hungarian and international investors, executives and decision-makers in the upper house of Hungarian Parliament. The Chamber was established in 1989 to represent the interests of local and foreign investors, build a strong business community and help improve Hungary's competitiveness. Today, AmCham's 340 member companies represent more than 220,000 employees and account for nearly 37% of Hungarian exports. AmCham Hungary President Farkas Bársony pointed out at the event that “during its 30 years of operations, AmCham has built a bridge between the Hungarian government and American investors and enterprises … The American Chamber has supported the improvement of the Hungarian investment climate, the improvement of the country’s competitiveness and the simplification of the tax environment with its advice and recommendations.”

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GSK’S VACCINE OUTPUT ON THE RISE IN GÖDÖLLŐ

KPMG’s recently launched smartphone application provides users first-hand insight into taxation issues in any country in the world as well as professional analysis and reports prepared by the company. The KPMG Digital Economy Tax Tracker runs both on iOS and Android. Developed by KPMG Global Services Hungary Ltd., the KPMG Digital Economy Tax Tracker provides up-to-date news and jurisdictional information on tax issues that may be relevant in the digital economy, focusing predominantly on sales taxes for the time being. Due to global digitalization trends, the rules governing the levying and collection of sales taxes are much less clear today than they were a few years ago, a press release by the company notes. New requirements are introduced to ensure that the tax is collected at the place of consumption, but related details are difficult for clients to follow. This is especially true for businesses involved in the international trade of digital and virtual goods. In addition to changing taxation requirements, the amount and regularity of the data required to be submitted by taxpayers is also on the rise.

GlaxoSmithKline (GSK) expanded operations at its Hungarian factory in Gödöllő, east of Budapest, to include the manufacturing of diphtheria and tetanus vaccine components for a new application area. One of the world’s largest pharmaceutical companies, GSK has been present in Hungary since 2001. The new manufacturing unit in Gödöllő, which employs over 300 people, produces two types of antigens: diphtheria and tetanus. The recently inaugurated development is the second step of a program launched in 2016. The investment reinforces the strategic role of the Gödöllő factory within the GSK network, while also giving GSK an opportunity to manufacture all DT and TT (Diphtheria Toxoid and Tetanus Toxoid) products at a single location. This, in turn, will make processes leaner and more efficient. As a result, the Hungarian factory will more than double its share in vaccine sales, the production value will triple, and the vaccine components will provide protection for billions of infants and children worldwide. GlaxoSmithKline was established in 2001 through the merger of GlaxoWellcome and SmithKline Beecham. The pharmaceutical and healthcare company group, based in Brentford, United Kingdom, has three main portfolios: pharmaceuticals, vaccines and consumer healthcare. GSK operates in over 150 countries and has 87 manufacturing sites in 36 countries worldwide. The company employed more than 95,000 people in 2018, with nearly 12,000 of them working in the field of research and development.

NHK SPRING COMPLETES NEW PRODUCTION HALL IN HUNGARY Policy makers are constantly adopting new measures to give tax authorities access to taxpayers' transactional data. This has many practical and regulatory implications in which users will be helped as they navigate the KPMG mobile app. In addition to processing daily news and regulatory announcements, the KPMG Digital Economy Tax Tracker also provides readers with analytical articles. Corporate players, accountants, auditors and other involved parties are encouraged to download the app. One of the most exciting menu items is ‘Jurisdiction-specific information’, which provides access to a dynamic database of 52 countries around the world.

Nearly three years after the inauguration of NHK Spring’s first factory in Hungary, the company has completed its second production hall in Tata, west of Budapest. With a EUR 84 million investment, the leading Japanese automotive supplier has tripled the size of its first European plant and increased the production volume of the factory that manufactures automotive suspension springs. The company also created 163 new workplaces with the expansion. NHK Spring opened its first factory 80 years ago in Yokohama, which continues to operate as the company's headquarters. During the past eight decades, the Japanese group has become one of the leading automotive spring manufacturers in the world and an automotive industry supplier. NHK Spring Group employs over 21,000 people and has 60 subsidiaries worldwide. In Hungary, its partners include Suzuki and Audi. The decision to establish NHK Spring’s first European factory in Hungary was made in March 2015. The hall was built with an investment of EUR 35 million in Tata. Japanese companies play an important role in the expansion of the Hungarian economy: currently, some 160 Japanese companies employ more than 34,000 people and their investments in Hungary amount to HUF 800 billion, according to data from the Hungarian Import Promotion Agency (HIPA). Based on the latest report of the IBM-PLI Global Location Trends, Hungary was the most important European target country for Japanese investments in 2018. be available in all major stores within weeks is largely due to the hard work of a four-member team. Founded in 2010, Xiaomi has joined the club of the biggest mobile handset manufacturers worldwide. The Chinese company has been listed on the Fortune500 list of the largest companies for a few months and debuted at 74th place this summer in the BrandZ top 100, which lists the highest value brands, overtaking such names as Ikea, Siemens and Adidas. The company sold 32.1 million handsets in the second quarter of 2019, and – according to some calculations – now ranks fourth in the world after Samsung, Huawei and Apple. The two major Android competitors will not be easy to overcome, according to hvg.hu. Samsung is set to maintain its market position as a result of its stable operations – partly due to U.S. measures restricting Huawei globally – as well as their expansionary policies. Huawei’s potential seems to be dwindling, offering Xiaomi a good chance to grow.

XIAOMI OPENS REPRESENTATION OFFICE IN HUNGARY The Chinese mobile manufacturer has decided to open an official representation office in Hungary, a move that is set to bring big changes in the domestic mobile market, hvg.hu reports. Xiaomi is the third most popular mobile phone brand in Hungary after Samsung and Huawei, with 18 out of 100 smartphones sold in Hungary produced by Xiaomi, the company’s country manager for Hungary, Tibor Wagner said at a news conference in Budapest. Xiaomi’s objective is to further increase its market share in Hungary, Zsolt Tamás, a representative of the firm that supports the manufacturer from the distributor side, said. The recent appearance of the Chinese brand in the range of models offered by domestic mobile operators and the fact that they will

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KPMG LAUNCHES TAX TRACKER MOBILE APPLICATION

KPMG, BOGLÁRKA BODNÁR/MTI, ISTVÁN SZÉCSI, ATTILA KOVÁCS/MTI

company briefs

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c ompany briefs GEDEON RICHTER: QUARTER OF A CENTURY ON THE BUDAPEST STOCK EXCHANGE

CARGO CITY OPENED AT BUDAPEST AIRPORT

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BUD Cargo City, the newly built cargo facility at Budapest Liszt Ferenc International Airport was handed over in November, only 12 months after work commenced on the site. The EUR 50 million facility is not only a world-class logistics base but also a catalyst, enabling Hungary and Budapest Airport to become the cargo gateway of Central and Eastern Europe, according to a press release by Budapest Airport. The new cargo handling facility offers a professional environment and enhanced competitiveness for air cargo operators and may propel Budapest Airport and the Hungarian economy into a regional role. The logistics complex consists of a 21,200-square-meter warehouse and office facility as well as an 11,650-square-meter forwarder building, to be occupied by tenants from January 2020. The facility ensures cargo handling with unprecedented efficiency by facilitating cooperation between all market participants via their simultaneous presence on the same site. The logistics base also features an adjacent concrete apron of 32,000 square meters to accommodate simultaneous loading and unloading procedures for two Boeing 747-8F aircraft with 440 tons of maximum take-off weight each. A total of 35 companies have already indicated their intention to operate in the newly built facility, including forwarders, cargo airlines, security service providers and the customs authority, indirectly supporting 10,000 jobs in the Hungarian economy. Budapest Airport handled 146,113 tons of air cargo last year, and the volume of cargo distributed via the Hungarian capital remained stable this year despite international trade conflicts and the decline in foreign markets. The new facility reinforces this stability and provides a sound basis for additional growth: once commissioned, the total cargo handling capacity of the airport will increase to 250,000 tons a year.

The trading of shares of the Hungarian pharmaceutical company Gedeon Richter Plc on the Budapest Stock Exchange started on November 9, 1994. The 25-year anniversary was commemorated by a solemn ring of the bell at the bourse in November. Since 1994, the price of the company's shares has risen 44 times, which is a unique success story for both the Hungarian stock exchange and the Hungarian national economy. Over the past two and a half decades, Richter shares have become the stock with the third largest weight in the stock exchange’s benchmark BUX index. The company, whose current valuation stands at HUF 1,100 billion, has grown into an innovative multinational company, which was the first in Hungarian pharmaceuticals history to successfully launch a proprietary product on the US market. In addition, Richter has become a global player in the field of women's healthcare and recently entered the biologics market, the fastest growing segment of the pharmaceutical industry, with its proprietary product. The past 25 years of Richter have been a success story not only for institutional and private investors, but also for the company’s role played in the national economy, according to a report issued by Richter. Its sales revenue has grown 21 times since 1994, reaching HUF 445.5 billion in 2018. After-tax profit increased 8.6 times to reach HUF 36.2 billion. Richter has also seen a significant increase in employee numbers: in 2018, employee headcount amounted to 12,667 people compared to 4,500 in 1994. As Chairman Erik Bogsch put it, “Richter has come a long way since its listing: from a regional manufacturer, it has become a Hungarianbased multinational company with sales in about 100 countries, subsidiaries in nearly 50 countries and manufacturing facilities in five countries outside Hungary.”

AUTOWALLIS OBTAINS JAGUAR LAND ROVER IMPORT RIGHTS IN HUNGARY

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Hungarian oil and gas giant MOL has signed an agreement with Chevron Global Ventures and Chevron BTC Pipeline to acquire their non-operated exploration and production as well as mid-stream interests in Azerbaijan for USD 1.57 billion, the company said in a press release. The deal includes a 9.57% stake in the Azeri-Chirag-Gunashli (ACG) oil field and an effective 8.9% stake in the Baku-Tbilisi-Ceyhan (BTC) pipeline that transports the crude to the Mediterranean port of Ceyhan. Once completed, the transaction will make MOL the third largest field partner in ACG. The giant ACG field, which began production in 1997, is located in the Caspian Sea and is one of the largest offshore oil fields in the world. Operated by BP and encompassing six offshore production platforms, ACG produced an average 584,000 barrels per day in 2018. The operator estimates total gross recoverable reserves to be approximately three billion bbl of oil, following the license extension until 2049. This world-class asset with an exceptional production track record over the past two decades will add around 20 mboepd to MOL Group’s net production in the coming years, according to the announcement. MOL will finance the transaction from available liquidity and the deal will have no impact on MOL’s ambition to continue to increase base dividends in the coming years. The transaction is subject to government and regulatory approvals and is expected to close in the second quarter of 2020. ”Following the closing of the deal, around half of our production will come from outside the CEE region, giving us a healthy balance. With these new barrels we are also strengthening our resilient, integrated business model, which will continue to generate robust cash flow to finance the MOL 2030 transformation projects as well as rising dividends to our shareholders,” Zsolt Hernádi, MOL Group’s Chairman and CEO commented.

LUFTHANSA SYSTEMS TO SET UP SOFTWARE DIVISION IN SZEGED

Wallis Automotive Europe, a subsidiary of AutoWallis Plc., has obtained the exclusive importer rights of Jaguar Land Rover vehicles and spare parts in Hungary. Based on the outcome of an international tender, Wallis Automotive Europe will start selling Jaguar and Land Rover vehicles in the Hungarian market from April 2020, giving the company presence with these two classic brands in a total of nine countries. According to the company’s press release, this step is in line with the company’s strategy published this spring under which AutoWallis plans to double its revenue by 2024 via organic growth and acquisitions. AutoWallis, a company listed in the Premium category of the Budapest Stock Exchange, concluded this latest deal via its subsidiary, Wallis Automotive Europe Kft. (WAE). Andrew Prest, Managing Director of WAE pointed out that the company had experience in the sales of the two premium brands as they had been representing them in the Central and Eastern European region since 2016. Initially, WAE was the exclusive importer in seven countries (Albania, Bosnia and Herzegovina, North Macedonia, Montenegro, Serbia and Slovenia), which was expanded to Kosovo this spring and now to Hungary. Based on the agreement, Jaguar Land Rover will be represented in the Hungarian market by Netherlands-based AutoBinck Group until next April, when the sales rights will be passed on to WAE. The managing director said that they plan to unveil their strategy for the Hungarian market together with the planned distribution and sales models next April. w w w . d t e u r o p e . c o m

MOL ACQUIRES OIL EXPLORATION AND PRODUCTION INTERESTS IN AZERBAIJAN

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Lufthansa Systems Hungária will open a new division at its base in Szeged, southern Hungary, specializing in the development and testing of software used in the aviation industry, state news agency MTI reported. The division will initially employ 10-15 IT professionals but the company plans to increase headcount by 15-20 employees every year. Lufthansa Systems started operations in Hungary 24 years ago. The Hungarian unit, which was the German company’s first foreign subsidiary, currently employs about 450 IT experts, supplying software solutions to more than 300 partners in the aviation industry. The company reported net revenue of HUF 6.8 billion in 2018, according to public records.

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analysis

FIGHTING FOR THE HEARTS AND MINDS OF (DEMOCRATIC) VOTERS THE DEMOCRATIC PARTY’S RACE FOR THE WHITE HOUSE BY TAMÁS MAGYARICS

Though the expression in the title is traditionally used to denote the ideological struggle between the free world and the communists during the Cold War, it’s still an appropriate description of the efforts of Democratic Party candidates vying to win the party’s presidential nomination in 2020. For decades, the contest within the party for ‘pole position’ at the national convention was led by ideologically similar ‘centrist’ politicians whose programs and promises did not differ widely. Moderately higher personal income and corporate taxes than those proposed by Republicans, more extensive and inclusive social services for the needy, affirmative action for racial, sexual and ethnic minorities, and a generally less assertive foreign policy. In other words, an incremental expansion of the welfare state following in the footsteps of Franklin D. Roosevelt and Lyndon B. Johnson – two Democratic Presidents who pursued the most ambitious reform programs in recent history.

This pattern started to break up in 2016 when the centrist Hillary Clinton came face to face with Bernie Sanders, a self-proclaimed DemocraticSocialist, in the primaries. Although Hillary Clinton tackled the challenge posed by Senator Sanders successfully, her victory left a bitter taste in the mouth of quite a number of Sanders-supporters. For one thing, they resented Hillary Clinton’s no-holds-barred campaign style and they found the former First Lady, Senator, and Secretary of State a product of Washington Beltway politics, positioned too close to so-called special interests (a.k.a. Wall Street or the big corporations and banks). Overall, a business-as-usual politician who promised changes only on the margins, but who was unwilling to seriously address issues such as the growing income gap, deteriorating safety conditions on the streets and immigration.

Outlandish promises The current election cycle has not ’officially’ started yet (it will do so with the caucuses in Iowa in January next year), nevertheless it’s safe to state that there is a marked shift toward the left (progressive) wing within the Democratic Party. It is not only that some of the candidates (Bernie Sanders and Elizabeth Warren first and foremost) are pulling the party to far-left positions, but the Democratic Party Congressional leadership and the Democratic-leaning media are also under growing pressure by radical young politicians in Congress (the ’Quad’) and outside of it (MeToo movement, Antifa, Black Lives Matter, etc.) to adopt radical economic, social, political and cultural positions. Senators Sanders and Warren are trying to outbid each other with such rather outlandish proposals as Medicare-for-all (carrying a price tag of some USD 3 trillion annually), tuition-free education in public colleges, cancelling student debt, federal jobs guarantee (Sanders) and reparations to descendants of slaves (supported by, among others, Sanders,

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Warren, Cory Booker, and Kamala Harris). According to estimates, the total cost of these would exceed USD 70 trillion over the next 10 years. Fact check: the current GDP of the U.S. is around USD 20 trillion and the current federal budget is somewhere between USD 4-4.5 trillion. While both Sanders and Warren intend to cover these expensive programs with a steep increase of the personal income tax and the corporate tax rates as well as the introduction of an annual wealth tax on a progressively sliding scale, the numbers still don’t add up. The centrists, primarily Joe Biden and Pete Buttigieg, offer a more realistic deal, especially in health care, which is high on voters’ list of concerns: they would introduce a public option for all (as a revised version of the Affordable Care Act dubbed Obamacare) and would allow people to keep their private insurance policies. Currently, some 150 million Americans have private insurance. Practically each of the Democratic candidates supports the fashionable Green New Deal (promoted by ’Quad’ member Alexandria Ocasio-Cortez); again, the details of how to achieve its (overly) ambitious goals are more than obscure; most likely, it would require several major

election in November 2020 is very much likely to be decided by the growing number of independents. Another lesson for the Democrats from 2016 is that they should concentrate on winning the Electoral College – the abolition of which is, by the way, supported by the majority of the Democratic candidates – and not popular votes nationally. In other words, no matter how much their radical transformation (centralization) plans may appeal to committed Democrats, they may not go down well in certain so-called swing states. If the contest were between a right-wing populist and a (far) left-wing populist, President Trump’s re-election chances would be bound to grow. Winning the hearts of tens of millions of Democrats or Democratic leaning voters might not be enough; the minds of many more millions of the electorate should be won as well if the Democratic Party wishes to regain the White House. Ideological orthodoxy has never been a winning position in U.S. presidential elections. As far as one can see, this tradition will prevail in November 2020, too.

breakthroughs in energy production technologies and the outlay of enormous sums of money. In plain English: new – and very high – taxes.

Risk of political fallout If a relatively large part of these ideas finds its way into the Democratic Party election platform in summer 2020, the political fallout may be quite dramatic for the Democrats. Even Barack Obama warned in mid-November that “we … have to be rooted in reality. This is still a country that is less revolutionary than it is interested in improvement. … The average American does not think that we have to completely tear down the system and remake it.” The danger of adopting radical economic and social programs, which are bound to go hand-in-hand with a substantial increase of taxes for not only the well-to-do but also for the middle class, is that it might prove to be a winning strategy only during the primaries, which are – as a rule – dominated by the more radical elements in both parties. Opinion polls suggest that party loyalty is exceptionally strong in that phase of the election process. However, one of its most important messages is that the presidential D E C E M B E R

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Tamás Magyarics is a foreign policy analyst

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Bitter memories

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BELGIAN INVESTORS PUNCHING ABOVE THEIR WEIGHT IN HUNGARY

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BY EDITH BALÁZS

“One of the pleasant surprises I have come across since my arrival to Hungary is the strength of economic relations between the two countries and the fact that I see continued interest on the part of Belgian companies in Hungary,” Belgian Ambassador to Hungary Siegfried Peinen, who took up his position in the Hungarian capital in August, tells Diplomacy&Trade in an exclusive interview. The diplomat, who first visited Hungary in 1988 as a tourist, is still in the process of building up his professional network and paying courtesy visits.

Stellar figures Known to the general public primarily for its beer and chocolate products as well as banking and insurance services, Belgium’s presence in the Hungarian economy is in fact a lot more multifaceted. It is no

wonder, however, that people associate Belgium with beer production. The country boasts a stunning 261 breweries, 1,500 trademarks, 50,000 direct and indirect jobs in the brewing sector and the inclusion on the UNESCO Intangible Cultural Heritage of Humanity list. The country was the largest exporter of beer globally in 2017 with Belgian brewers snatching first place from the Germans. Belgian companies with a presence in Hungary represent the traditional sectors that form the basis of Belgium’s valiant economy. The drivers of growth in bilateral trade and investments are mainly chemicals, transport equipment, machinery as well as the agriculture and food sectors. The country’s hallmark investment in Hungary is K&H Bank, a fully owned subsidiary of KBC Bank N.V. of Belgium. In line with KBC’s strategy of establishing significant, and often leading, positions in its core home markets in Belgium and Central Eastern Europe, K&H is Hungary’s second biggest lender in terms of total assets. “Even though D E C E M B E R

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both our countries are relatively small in size, in terms of FDI Belgium has been punching above its weight and is consistently among the top 10 largest investors in Hungary,” the Ambassador notes, adding that the total volume of FDI inflows from his country stood at EUR 1,822 billion at the end of 2018. The volume of bilateral trade is already high, and it has been increasing at an above average rate in recent years. The total trade volume exceeded EUR 5 billion last year, with roughly EUR 2.7 billion in Belgian exports and about EUR 2.4 billion in Hungarian exports to Belgium. The average rate of annual export growth from other EU countries to Hungary was around 6% in 2018 while from Belgium it was more than 20%. “Of course, this doesn’t mean that such rapid expansion takes place every year, but it nevertheless mirrors the general direction of trade relations. The trend has remained favorable this year with volumes continuing to increase,” Siegfried Peinen says.

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Sometimes overshadowed by issues related to the European Union due to the bloc’s heavyweight presence in Brussels, bilateral relations between Belgium and Hungary are thriving, especially in the f ield of economic cooperation. The interest of Belgian businesses in Hungary as an investment destination continues unabated with representatives of technological and future-oriented companies increasingly drawn to the country, Ambassador Siegfried Peinen says.

DÁVID HARANGOZÓ

INTERVIEW WITH SIEGFRIED PEINEN, AMBASSADOR OF THE KINGDOM OF BELGIUM TO HUNGARY

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Entitled ‘Rubens, Van Dyck and the Splendour of Flemish Painting’ and organized with the support of the Flemish government in Belgium, this grand exhibition at the Museum of Fine Arts in Budapest showcases the Golden Age of Flemish painting through the art of Peter Paul Rubens and his contemporaries. The exhibition features an astounding number (more than 120) of works of art, the majority of which have been loaned from prominent public collections, including the Louvre in Paris, the Hermitage in Saint Petersburg, the Prado in Madrid, the National Gallery in Washington D.C. and the National Gallery in London. In addition to almost thirty masterpieces by Rubens and more than a dozen by Van Dyck, excellent works by other Flemish masters are also on display. The main goal of the exhibition is to highlight Rubens’s genius and the pivotal influence of his artistic output upon his age while showcasing the versatile, stylistically and thematically rich 17th-century Flemish painting, which developed from and alongside Rubens’ art. The exhibition - open until February 16, 2020 - is based on the abundant Flemish material of paintings as well as numerous graphic works owned by the Museum of Fine Arts. The display will also feature a piece from Rubens’ monumental Decius Mus cycle (The Interpretation of the Victim) along with a splendid tapestry based on the painting and woven with gold and silver thread. This is the first time that the two works are exhibited together.

RUBENS AND VAN DYCK EXHIBITION A SPLENDID PROOF OF CULTURAL TIES Investor interest unabated

Hungary’s location at the crossroads of eastern and western as well as northern and southern economic routes in Europe renders the country especially important for Belgian ports, which are among the largest in Europe. They are increasingly looking at Hungary when improving their logistics network and further developing their strategy of diverting more of their transports to railways, according to the Ambassador. A case in point is Antwerp, the second busiest European port, which is now linked with a direct train line to the city of Louvain as an alternative to road transport. The ‘beer train’ connects the port to the facilities of AB InBev, which transports millions of hectoliters of beer to Antwerp. The new train, which will operate from 2020, can carry 47 containers and the resulting reduction in CO2 emissions is estimated to reach 75%. As a sign of our times, environmentally friendly and smart investments are gaining ground in economic relations between the two countries. “As of late, a number of Belgian companies from the green and smart technology sectors have also expressed interest in Hungary. Only

recently I was in touch with a Belgian company specializing in brownfield development and investment that was interested in Hungary. Belgium has a long track record in the area of cleaning up contaminated soil and later developing real estate projects on these plots,” Siegfried Peinen notes. In late November, the BelgaBiz business club organized an Innovative Mobility conference as part of its “Plug-In to the Future” event series, with panelists including representatives of Belgium’s CenEnergy.

Committed to raising awareness The Ambassador notes that on the political level, relations between Hungary and Belgium are mostly focused on issues related to the EU. “Generally speaking, bilateral political relations are good, but of course as ambassador, my job is to make these relations even better. We don’t have any specific bilateral issues; most of the subject matters we discuss are related to EU dossiers. On some of these dossiers our views are the same, on others we have divergent opinions, but this is only normal in a club with 28 members,” Siegfried Peinen says.

One of the diplomat’s key ambitions is to develop local awareness of Belgium in order to stimulate tourism. Although Belgium is rather well known to Hungarians, additional information and fun facts about the country, such as those featured on the comprehensive and informative focusonbelgium.be website, could help raise 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

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ANTHONIS VAN DYCK/PORTRAIT OF FILIPPO FRANCESCO D’ESTE WITH A DOG/1634–1635 OIL ON CANVAS/KUNSTHISTORISCHES MUSEUM, DEPOSITPHOTOS.COM

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interest in it as a tourist destination, he says. “Given the disappearance of frontiers within the Schengen area in Europe it is increasingly difficult to calculate exact visitor numbers, but anecdotal evidence shows that the number of Belgians coming to Hungary is on the rise," Siegfried Peinen notes. HUNGARY

BELGIUM

93,028 sq km 111 9,825,704 (July 2018 est.) 92 -0.26% (2018 est.) 214 8.9 births/1,000 population (2018 est.) 206 76.3 years (2018 est.) 88 1.3 migrant(s)/1,000 population (2017 est.) 54 USD 29,600 (2017 est.) 68 4.2% (2017 est.) 54 12,030,940 (2017 est.) 75 41 (2013) 103

30,528 sq km 141 11,570,762 (July 2018 est.) 77 0.67% (2018 est.) 145 11.3 births/1,000 population (2018 est.) 171 81.2 years (2018 est.) 31 5.2 migrant(s)/1,000 population (2018 est.) 26 $46,600 (2017 est.) 35 7.1% (2017 est.) 108 11,961,089 76 41 (2013) 102

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AN EMISSARY OF BUSINESS RELATIONS WALLONIA’S TRADE AND INVESTMENT REPRESENTATIVE IN HUNGARY

Under Belgium’s federal system, the country’s three provinces of Flanders, the Brussels Capital region and Wallonia exercise independent powers as they strive to enshrine their economic autonomy. An area where this becomes markedly obvious is trade and investment promotion, and accordingly the regions operate separate trade representation offices in Hungary to facilitate bilateral business relations. “We operate under the umbrella of the Belgian Embassy, however, ours is an independent representation managed directly from Belgium,” says Edit Ránky, trade and investment counsellor representing Wallonia, the Brussels Capital region and the Grand Duchy of Luxembourg. Managed by Belgium’s AWEX (Wallonia Export-Investment Agency) and Brussels Invest & Export (BIE) on the Belgian side, the representation office primarily serves SMEs and micro enterprises that are export ready. Multinational companies have a corporate structure in place for expanding into new markets and they typically don’t rely on services provided by the representation, Edit Ránky tells Diplomacy&Trade.

Flourishing bilateral trade

About one sixth of the Walloon, Brussels and Luxembourg based companies registered with the representation office have a presence in Hungary. Most of them are clustered in or around Budapest, the economic center

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In the real estate segment, Wallonia is represented by the Atenor Group and Codic, both active in the capital Budapest. Atenor, a real estate development company listed on Euronext Brussels, is the developer of the Váci Greens office complex in Budapest, one of the largest office building projects in the country. The large-scale campus-style development project lies on over 130,000 sqm and comprises exclusive A + office space in a green work environment. It consists of six state-of-the-art buildings built in two phases in the heart of one of Budapest’s most famous business districts. The company has launched a second, 4-building office complex project in Budapest called Aréna Business Campus. The project is expected to be completed in 2023. Codic’s portfolio consists of projects that combine residential, commercial and office developments. The company is responsible for centrally located developments such as the Krisztina Palace, the Green Court Residences and Office and the V 48 building on Váci Road. Carmeuse, a world reference in the production of lime and its derivatives, has a mining and production site in Hungary. The enterprise, D E C E M B E R

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boasting 150 years of experience in the extraction and transformation of limestone and dolomite into lime and essential derivatives, employs about 45 people in Hungary.

Perseverance and stubbornness Companies from Wallonia, the Brussels region and Luxembourg each account for 30% of Hungary’s total trade with Belgium, Edit Ránky says, adding that with some businesses the issue of their exact origin is not crystal clear, and boundaries are sometimes blurred. “Even though some of the requests we receive fall outside my competence, my mission is to lend a helping hand to improve bilateral trade and economic relations.” She notes that the lack of French language skills in Hungary can sometimes be a barrier to fruitful cooperation, especially in segments like agriculture. “This is a job that requires a lot of perseverance, stubbornness and outstanding diplomatic skills, to make sure that the company we are trying to help is received at the proper level and its business propositions are examined in depth,” Edit Ránky says.

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Flagship investors

of the country, while others are scattered around Hungary and operate in a wide range of industries. Companies hailing from the Brussels region are typically active in banking and insurance, like Belgian banking giant KBC, which is the parent company of K&H Bank, Hungary’s second largest financial institution based on end-2018 total assets. Schréder was the absolute pioneer among Walloon enterprises setting up operations in Hungary having entered the market before the fall of the Iron Curtain. The Tungsram-Schréder Zrt. company was founded in 1983 by the Schréder Group and two Hungarian enterprises; in the 1990s, the company became fully owned by the Belgian side. Today, the company is the largest outdoor lighting supplier in Hungary with an annual turnover exceeding EUR 10 million. It currently employs more than 200 people in its business, production, and development entities. Schréder, founded in Liége in 1907, has carried out iconic projects in Budapest, including the lighting of Andrássy Avenue, the Opera House, the Buda Castle District and two bridges connecting Pest to Buda.

photo by DÁVID

The impressive increase in bilateral trade is testament to the thriving economic relations between Belgium and Hungary. Total trade volume between the two countries reached EUR 5.03 billion last year, with Belgian imports and exports contributing in an equal measure to the final balance. Walloon exports to Hungary amounted to EUR 324.2 million in 2018 versus EUR 246.7 a year earlier, with the region accounting for 18.6% of total Belgian exports to Hungary last year. The share of Wallonia’s contribution to Hungary bound Belgian exports soared an annual 31.4% in 2018, the secondlargest increase after Ireland. Trade continued to intensify in 2019 and statistics show that Belgian exports to Hungary in the first 6 months of the year increased by 9.7% compared to the same period of 2018. “Even though the Hungarian market is saturated, there is always a possibility to enter this market with new brands, services or products. A particular project may take years sometimes, but perseverance tends to bring the expected results,” Edit Ránky notes.

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Best Bank in Hungary awarded by Euromoney in 2019

innovation leads us to future successes

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GATEWAY TO HUNGARY FACILITATING THE ACCESS OF FLEMISH COMPANIES TO THE LOCAL MARKET

FLANDERS IN A NUTSHELL

According to the KOF Globalization Index, Flanders has the most globalized economy in the world. Boasting 4 ports, 3 airports, 916 kilometers of highways and over 1,600 kilometers of railways, the region is the logistics center of western Europe. Its location ensures that 60% of the European consumer market is within a radius of 500 kilometers. International trade is part of Flanders’ DNA. Cities like Bruges, Ghent and Antwerp rose to prominence centuries ago as major European trade centers. Today, 95% of the region’s GDP – twice the EU average – is earned through international trade. As the 15th largest exporter worldwide, according to data from the World Trade Organization, Flanders exports three times as much per capita as Germany. The province is a magnet for foreign investments; the inflow of FDI amounted to a record EUR 4.24 billion last year compared to 2.08 billion in 2017. Flanders invests roughly 2.7% of its GDP in research and development, which ensures the region a prestigious 7th place in the global rank for R&D expenditure.

The Belgian region of Flanders has one of the world’s most open economies and businesses established there are naturally inclined to expand abroad. The Hungarian representation of Flanders Trade & Investment (FIT), set up by the Flemish government in 2005, serves as a gateway to the Hungarian market for Flemish exporters.

FLANDERS - HUNGARY: BILATERAL TRADE IN GOODS (EUR BILLION) Source: National Bank of Belgium (Institute for the National Accounts); data processed by trade intelligence unit at Flanders Investment and Trade import 2,50 2,00 1,50 1,00 0,50 0,00

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of Commerce and Industry and at the Hungarian Embassy in Belgium prior to joining FIT in Budapest.

Flemish presence in Hungary Hungary’s trade with Flanders is on an upward trajectory, having increased by nearly 20% last year. Flanders, which provides 83% of overall Belgian exports, sold goods with a total value of EUR 2.2 billion to Hungary in 2018 while Hungarian imports to the region amounted to EUR 1.4 billion. Machinery and mechanical equipment, chemicals and pharmaceutical products as well as the automotive sector are the key areas of trade cooperation. The requests that the Budapest office receives reflect an increasing interest on the part of businesses active in agriculture and the food sector, including bio products, beer, chocolate and products for customers with special dietary needs, Szonja Bender notes. Besides K&H Bank, which is the flagship Flemish investment in Hungary of the parent company KBC, most of the other investors from Flanders established their Hungarian subsidiaries in the early 2000s. Another exception to this is Samsonite, which started production in Szekszárd in 1990. In 2005, the factory shifted from softside to hardside products. In the last few years the company doubled its production capacities D E C E M B E R

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Attractive market “In my experience, Flemish companies have a positive and open attitude toward Hungary. Exporters that already have experience on the local market generally see further potential in Hungary and ask for our assistance in broadening their partner base and securing new customers. Improving economic indicators are prompting companies with no presence in Hungary or the region to shift their focus to this part of the continent and access these markets as soon as possible,” Szonja Bender notes. She adds that the recent rise in Hungarian wages is, on the one hand, a positive development as it boosts purchasing power, but on the other hand it diminishes the allure of the country as an investment destination with a cheap labor force.

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with potential partners or buyers, organized by the FIT office. Every two years, a business delegation consisting of representatives of around 15 Flemish companies comes to Hungary in the framework of an official visit organized by FIT or VOKA, the alliance of Flemish Chambers of Commerce. “I must confess my task is made a lot easier by the fact that Flemish companies are generally export ready, well prepared and have extensive experience in the area of international sales. However, our knowledge of the local market and our ability to identify the most appropriate contact persons for their business needs is a great advantage for them,” Szonja Bender says in an interview. She worked as the head of the Brussels office of the Hungarian Chamber

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The FIT office in Budapest offers tailor-made solutions, complete with market research and a sector-specific partner data base to Flemish companies, says Szonja Bender, Trade and Investment Counsellor at Flanders Investment & Trade. “This requires thorough investigation and an extensive partner network on our part, but I feel that we provide essential help to companies. If they try to initiate contact with a business in Hungary by writing to a general email address or calling a central phone number, the endeavor is generally doomed to fail,” she says. A second phase of the process is the so-called ‘prospection trip’, during which Flemish exporters visit Hungary to attend bilateral meetings

in Hungary and now the manufacturing site has a floor area of 40,000 square meters. Furniture maker Sinia Bútorgyártó, fully owned by Belgium’s Recor Group, built a second plant at a cost of HUF 1.7 billion in the Bátonyterenye industrial park, northeast Hungary, in 2013. The company, which exports leather sofas and chairs to Western Europe, mainly the Benelux countries and France, initially operated a factory in an industrial park nearby Salgótarján, but had no room to expand. Other Flemish companies with a manufacturing presence in Hungary include corrugated cardboard box producer Pacapime N.V., Soudal, which operates a distribution center in Budaörs on the outskirts of Budapest, and fried snacks producer Beltaste.

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GIVING LIFE TO CREATION Innovative Manafacturing Brings Design to Life

MONO GROUP H-2633 Ipolytölgyes, Homokpuszta info@mono-group.com www.mono-group.com

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way as well, and the results of the last couple of years provide a strong confirmation that this strategy is working,” Moucheron says.

Riding the wave of innovation The decade since the global financial crisis has seen a wave of innovation in banking services and the appearance of fintech startups and global giants like Google and Apple in the financial services sector is a strong incentive for established banks to reinvent themselves. At K&H, improvements to innovation capabilities and capital commitments to innovation remain in the forefront. “We are clearly aiming at being the best innovative bank in the market,” the executive says. In 2019, the bank accelerated its digital transformation, focusing on offering best-in-class user experience across channels, while simplifying its processes and organization. “We made cash loan application with a few touches available in the mobile app and it became an instant favorite of our clients. This confirms that we need to continue making product purchase available on the mobile, moving away from the previous transaction-only approach,” David Moucheron notes. The number of mobile bank app users at the bank tripled in the past three years and now already more than 50% of clients actively use the mobile banking app. Innovation transforms the branches as well. In November, K&H Bank was one of the first banks in Hungary to make it possible for clients to deposit cash via ATMs to another client’s account. By now, fast and easy cash handling became available at all branches. Cash-in ATMs made it possible to turn 60 branches out of the 206 to automated teller branches focusing on advisory instead, thus helping clients to make smart financial decisions. The bank introduced digital biometric signature via tablets for a limited set of transactions at the beginning of 2018 and by now 50% of branch transactions can be signed digitally. The aim is to reach 100% with both figures. “Our goal is to comply with the consumer requirements of the 21st century by providing an everyday banking experience in the most convenient, fastest and simplest way,” David Moucheron highlights.

K&H BANK CONFIDENT ABOUT ITS PROSPECTS IN THE DOMESTIC MARKET As the specter of a global economic slowdown looms, many banks are bracing themselves for leaner times. David Moucheron, Chief Executive Officer of K&H Bank, one of the leading financial institutions in Hungary, is confident that the bank’s solid financial position and international expertise as well as the resilience of the local economy open new vistas for the bank’s growth in Hungary.

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Boosting the market share K&H, Hungary’s second largest bank in terms of total assets, is looking to strengthen its foothold in the domestic market through systematic developments and building on its international expertise. Moucheron is positive that new product implementations and easy customer access to financial services offered by the bank will help K&H to improve its market position in the retail segment. “A typical example is our unique E2E mobile solution for cash loan processes; on the back of this and similar developments we managed to acquire around 9% market share in cash loans in the third quarter of 2019 (versus 6.4% market share in 2018). In corporate lending, we are confident that

with our capabilities to provide convenient banking services leveraging on our international expertise and background as part of a combined package – rather than focusing on a single transaction – we can remain competitive and increase the number of our core clients,” the executive notes. The bank is also open to acquisition opportunities in the Hungarian banking sector, which is one of the most fragmented in the region and therefore ripe for consolidation. At the end of 2018, a total, 40 locally licensed credit institutions and nine foreign branches conducted business in the country, and the central bank has long been of the opinion that the number of financial service providers is too high. “Eventually it is expected that banks will merge with each other. K&H is in a strong financial situation and one of the most efficient banks in the country. Its customer base is continuously increasing in an organic way. So, we are clearly in a position to acquire other banks. On the other hand, we are committed to increase our market presence in an organic D E C E M B E R

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border financial solutions to its clients in a convenient way thanks to its international network, while the level of service, the implementation of digital and other solutions can be much faster at the bank thanks to the expertise gained in other countries.

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Talk of a financial recession and a weaker global economy continues to grow, and economic actors are keeping a close ear to the chatter. The global banking annual review published by McKinsey in October warned that a “prolonged economic slowdown with low or even negative interest rates could wreak havoc” in the financial industry worldwide. Hungary’s banking sector was severely hit by the 2008 crisis, when lenders and regulators were caught unaware by the force of the economic meltdown. Having learnt their lesson, KBC Group’s Hungarian unit K&H Bank has bolstered its financial foundations and is confident that a potential economic slowdown would not find the bank ill-prepared. “We have stable liquidity and capital position, our portfolio quality is good, the NPL (non-performing loan) ratio is continuously improving and we apply strict underlying criteria to the new portfolio, so credit risk is in control. All in all, we do not expect that any potential slowdown in the Hungarian economy would have a perceptible impact on our operations. We are positive about the Hungarian economy’s resilience,” David Moucheron, Chief Executive Officer at K&H Bank Hungary tells Diplomacy&Trade. Indeed, the bank’s results are encouraging; the lender reported HUF 37.7 billion in aftertax profit for the first 9 months of 2019, up 5% from the same period a year earlier. In addition, the strong international background of K&H is a further guarantee for stability. “Hungary is a core country for KBC. Based on our strong international background, the level of service and funding is ensured not only in good times (like now), but also in stormy weather when the economy is less accommodating,” Moucheron points out. The executive adds that K&H can provide cross

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PUT THE FRESH BACK IN FRUIT BEER? WE DID?

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A BELGIAN-HUNGARIAN VOICE ACTRESS, SINGER, DANCER AND MODEL STÉPHANIE SCHLESSER

Stéphanie has always had a passion for the stage. Besides school, she was learning to sing and dance from the age of ten and starred in children's musicals as a teenager. After graduation, her parents encouraged her to take up an art career but she was very afraid she would not be able to cope with the challenges. For her, security and predictable life are important, and the art world is just the opposite. Still, she enrolled at the AICOM International Musical Academy in Paris. She was on a tour in Asia (Notre Dame de Paris) when she was suggested for the role of Juliet in the musical Romeo and Juliet. Since she could not attend the selection process personally, she had to make a video of herself. She sang the requested songs in a romantic costume: in a blonde wig and set used in the musical. She did so well that she got a phone call the next day that she got the role. After a tour in Asia, Stéphanie joined the troupe of the musical comedy dedicated to Nelson Mandela, ‘Madiba’ at the theater ‘La Comédia’ in Paris. As a proof of her multi-disciplinary talent,

she had a three-month contract at the Opera of Saint Tropez as a dancer in the spectacular show ‘No prostitution here’. In addition to musicals, Stéphanie performs regularly as a singer on various Broadway Band concerts as well as in her ‘One Woman Musical Show’. She also does voiceovers for Disney cartoons at Dubbing Brothers. In 2020, she is cast as Ulrika in ‘Starmakers, the Rock Opera’ performed in Budapest. She told the Hungarian edition of ‘Marie Claire’ that her mother’s family lives in Hungary. “Ever since I was little, we have visited my grandparents in Hungary at least twice a year. We spend Christmas and part of the summer holiday here every year. The place for big family vacations is always the same house in Siófok at Lake Balaton. We often bring friends with us and show them how beautiful this country is. Unfortunately, I do not speak Hungarian well, we speak French at home with my parents and brothers. But recently, I started learning this language because I feel at home in Hungary, but I really lack the ability to communicate."

Non-stop service BUDAPEST – BRUSEELS from March 30th 2020

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photo by WWW.STEPHANIESCHLESSER.COM

Stéphanie Schlesser was born in Budapest. Her mother is Hungarian, her father is Belgian. She has participated in the tour of various French musicals, such as Romeo and Juliet or Mozart, internationally. Her first major role in Hungary was in the musical ‘Aida’. She also received the role of Scaramouche in the world-famous ‘We Will Rock You’ musical, which is still played nowadays.

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belgian focus

A TOUCH OF BELGIAN HOSPITALITY

The Three Corners Hotels & Resorts, founded by pioneering hotelier Frans Lambrecht, has been present in the hospitality business for over 30 years and operates more than 2,000 hotel rooms, including the Resort Hotels at the Red Sea Riviera in Egypt and four boutique hotels in Budapest. The company arrived in Hungary in January 2013 with the acquisition of Hotel Art, which is – as The Three Corners Hotels & Resorts CEO Didier Lambrecht points out to Diplomacy&Trade – “a perfectly located three-star superior hotel with 36 rooms in the downtown 5th district of Budapest. Following this successful start, we took over the management and operations of Hotel Bristol in the same year. The four-star The Three Corners Lifestyle Hotel, which opened its doors in mid-2017 in the Hungarian capital, offering 60 elegant and well-designed rooms in a perfect location, was next in line. Our latest addition to the portfolio was the three-star superior The Three Corners Hotel Anna, which offers 44 funky and trendy rooms mainly focused on the younger generation.”

Scope for additional growth

photos by THE

THREE CORNERS HOTELS & RESORTS

Didier Lambrecht highlights that the hotel chain’s local and international experience and the strength of their international team has been instrumental in gaining a good insight and knowledge of Budapest’s hotel industry. “We firmly believe that Budapest will, to a certain extent, always be popular for both leisure and business travelers and still has potential for growth.” The executive stresses that merely building an elegant hotel is no longer enough: the daily process of managing a hotel requires the right skills and expertise coupled with extensive local and international experience. “We have the necessary tools in hand to be successful and continue our growth in a healthy but steady pace,” he notes. w w w . d t e u r o p e . c o m

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The Three Corners Hotels & Resorts covers all their online sales and marketing activities from their Central European headquarters located in Budapest. Regarding business possibilities in the hotel industry in Hungary, Didier Lambrecht points out that there is still space for additional growth and new investments. “The market will make a natural selection. Older products, which are not renovated, will lose market share and this – combined with additional guest arrivals to the capital city – will feed the new inventory of accommodation units.” He warns, however, that the hotel industry needs to be vigilant of newly emerging market challenges such as individual apartment accommodation units, which are becoming increasingly popular mainly through channels like AirBnB. He stresses that “this new situation requires further regulations as it now paves the way for new competition and the risk of uncontrolled quality of accommodation and customer experience in this beautiful city. Our guests use international benchmarking standards and Budapest, as a destination, should continue to upgrade its facilities and the quality of experience. The further development of the airport and its accessibility and the long-awaited international conference hall are an absolute must in the short term for this city to remain competitive on the international level.”

You must change in order to remain the same Increasing the international competitiveness of the city as a travel destination requires hotel operators and owners to continue renovating and investing. “We should have a permanent focus and drive on quality delivery both in the service and in the product. Guests have become very demanding and they spread the word easily through guest review sites. Budapest has surely moved forward a lot in terms of the overall quality of experience over the last couple of years, but we have to continue to invest and look for renovation and innovation in order to remain successful and on the top,” the CEO highlights. The Three Corners Hotels & Resorts is launching the pre-development phase of their fifth hotel in Budapest, located in the downtown area of the Hungarian capital. Their latest four-star luxury hotel with 65 bedrooms will feature new design and experience elements in order to fill a gap in this niche market and ensure a successful market entry. FOR FURTHER INFORMATION on The Three Corners Hotels, visit: www.threecorners.com

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business

REVIVING AN EXQUISITE LUXURY BRAND ZSOLNAY MANUFACTURING STRIVES TO REGAIN FOOTHOLD IN GLOBAL MARKETS

Once the largest and most successful enterprise of the AustroHungarian Monarchy, the Zsolnay Porcelain Manufacture is struggling to recover from decades of neglect, the ravages of Communism and two World Wars. The company’s new owner has ambitious plans to help the debt-ridden business regain its position as a luxury global name coveted by royals and aristocrats. Hungarian porcelain manufacturer Zsolnay is one of Hungary’s most illustrious brands known the world over for its unique, hand painted vases, dinner sets and ceramic tiles. Established nearly 170 years ago by a scion of the Zsolnay family in the southern Hungarian city of Pécs, the history of Zsolnay Porcelain Manufacture has over the past one and a half century become intertwined not only with that of the city and of the exceptionally talented family, but also the whole of Hungary. When a Swiss businessman of Syrian decent became the majority owner of the debt-ridden factory six years ago, it seemed that the prestigious company set out on the road to recovery. However, the following years brought about a barrage of accusations and litigations as the new owner and the municipality of Pécs, a minority shareholder, became mired in a seemingly never-ending dispute over the fate of the company.

From a glorious outset to financial struggles Zsolnay Porcelain Manufacture was founded by Miklós Zsolnay in Pécs in 1853 where it operated as an eight-person workshop until Vilmos Zsolnay took over the company in 1868 and turned it into a factory employing several hundreds of people. Bestowed with a keen

entrepreneurial spirit, exceptional technical skills and unlimited curiosity, Zsolnay developed new materials and introduced inventions into the manufacturing of pottery and ceramics. The unique products bearing his name rapidly gained international fame at world fairs and international exhibitions, including the 1873 World Fair in Vienna and the 1878 World Fair in Paris, where Zsolnay received a Grand Prix. Zsolnay products became sought after across Europe and around the world in this period when industry and commerce were not restrained by borders. Vilmos discovered the recipe of the eosin process that gives an iridescent glaze in multiple colors and pyrogranite, a ceramic building material that became popular with the architects of the Austro-Hungarian Empire. After Vilmos’s death, his son took over at the helm of the company, which by 1914 became the largest enterprise in Austro-Hungary. The fortunes of the factory declined as two World Wars and the subsequent Socialist-era nationalization destroyed the initial fame of the brand. Hungary’s return to market capitalism after 1990 saw Zsolnay continuing to struggle to regain its footing on domestic and international markets, which became increasingly inundated with mass produced porcelain products.

Tumultuous times

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photos by ZSOLNAY

In 2012, the city of Pécs put Zsolnay, which had for many years booked losses of HUF 300-400 million a year, up for sale. The following year Swiss entrepreneur Bachar Najari, who completed his university studies in Hungary, purchased 74.5% of the company’s shares from Pécs, which stayed on as a minority shareholder, and undertook to raise the company’s capital. The change of ownership was followed by a stormy period during which the city claimed Zsolnay was teetering on the verge of bankruptcy and the majority owner accused the municipality of launching a campaign to steal D E C E M B E R

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business the factory. In the midst of the feud 120 Zsolnay employees left the company overnight to take up employment in another company set up the city. Numerous litigations ensued, some of which are still ongoing, but Bachar Najari persevered in his endeavor of turning the fortunes of the heavily indebted business. “I have always believed that porcelain was an industry of priority in Hungary but it hasn’t been managed as one for many decades. The moment I heard that Zsolnay was up for sale, my decision was made. The Zsolnay brand is much more powerful than most Hungarians think,” Najari tells Diplomacy&Trade. Although he admits that the company is not entirely out of the woods, he speaks with optimism about the future. “This year looks good from a financial perspective. One must not think solely in numbers at the helm of this factory, this is art not pure business. Our primary objective is to rebuild the Zsolnay brand that has been neglected and destroyed over the decades. We are not only a porcelain manufacturing establishment, we are first and foremost a brand like Gucci or Louis Vuitton. We need to leave behind the conservative approach to business

and adopt a more open attitude and overcome the fear of change and innovation,” he notes.

Exclusive clientele Najari is ready to undertake projects that don’t necessarily yield instant profit as part of his efforts to bolster the Zsolnay brand. The company partnered with prestigious Swiss watchmaker Frederique Constant to craft the hand-made porcelain dials of each of the 188 time pieces called Classics Art of Porcelain. Giving these watches a true bespoke appeal is the ‘fait main’ designation above the six o’clock marker, which indicates that the dial has been formed and sanded by hand in order to reach the correct shape, thickness and shine. “For us, this partnership was a question of prestige because from a business perspective it was not a success. I believe that this company can’t be run on a purely business basis, an economist would have long driven it into bankruptcy,” Najari says smiling. Zsolnay is targeting a truly niche market and an exclusive clientele whose ranks include kings, sultans and members of the European

aristocracy. “For example, we are the absolute favorite of the Sultan of Oman, who is a true artist. We prepared for him a collection of 40 porcelain pieces initially designed and produced in the 1800s. Our products are truly unique and come in limited series, the Zsolnay name is synonymous with stand-alone quality worldwide. Making a single vase can take up to three months and the price tag reflects this,” Najari says. The nature and exclusiveness of Zsolnay products make the company unfit to compete with mass producers and Najari is not striving to be present “in every shop in every corner of the globe, what we need is to be successful in 10 markets.” He is in talks to open a Zsolnay showroom in Dubai in addition to the company’s existing presence in 10 locations worldwide, including Kuwait and Shanghai. “Our products possess a very unique image and convey an artistic message that we need to preserve for the coming generations. From an economic perspective, this makes our lives more difficult but I’m a firm believer that the essence of this business is more than just generating profit,” the executive says.

SECRET ZSOLNAY RECIPES

The eosin process, Vilmos Zsolnay’s brainchild, is a secret recipe guarded as closely as the Coca Cola formula. Vilmos’s outstanding talent was coupled with ambitious experiments and innovations in the spirit of his self-stated mission of “always wanting to replace the good with the better”. He developed eosin in the 1890s with the help of Lajos Petrik, the principal of the Industrial School of Budapest and Vince Wartha, professor at the University of Technology. The process results in a light red iridescence of the first prepared hue, hence the term eosin (the word eos meaning flush of dawn in Greek). The unmistakable eosin-based iridescence became a favorite of art nouveau and Jugendstil artists, among them Sándor Apáti Abt, Lajos Mack, Géza Nikelszky and József Rippl-Rónai. The secret eosin glaze renders porcelain to appear iridescent metallic, in different colors that change with the angle of reflection. Typical colors include shades of green, red, blue, and purple. The technology is used to create decorative objects and building ornaments with every eosin object being unique and irreproducible. Pyrogranite is a type of ornamental ceramic that was developed by Zsolnay and placed in production in 1886. Fired at high temperature, this durable material remains acid and frostresistant making it suitable for use as roof tiles, indoor and outdoor decorative ceramics, and fireplaces. The name is a combination of ‘pyro’, which refers to the high temperature at which the products are burnt and granite, which signifies durability. Architects that used the material in their buildings include Miklós Ybl, Ödön Lechner, Béla Lajta, Samu Pecz and Imre Steindl. Pyrogranite can be seen in buildings such as the Matthias Church, the Hungarian Parliament , the Museum of Applied Arts, the Geological Institute and the Gellért Baths in Budapest, the Town Hall in Kecskemét as well as numerous buildings across the territory of the former Austro-Hungarian Empire erected in Art Nouveau style in the late 19th and early 20th centuries.

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business

GOING DIGITAL

becoming increasingly common for traditional industries to rely on new, technology-driven business strategies. Naturally, every infocommunication business is part of the digital economy, but there are also businesses that do not focus on info-communication and still rely on technology to deliver solutions. Taxi services available on smartphones, agriculture companies that use data provided by precision sensors or fully automated car manufacturing factories are all part of the digital economy. The ICT manufacturing industry is the second largest exporter in Hungary after the automotive sector, accounting for 7.9% of total commodity exports in 2018, a performance similar to that of the domestic agriculture and food industry combined. In terms of investment, the digital economy accounts for about 3.5% of total investments in the nation’s economy, and the expected roll-out of the 5G network is set to boost this level considerably by 2021. "Digitalization can contribute to economic growth to a much larger extent than any other sector of the economy or any investment, no matter how many factories foreign companies build in the country. However, without the consistent work of the government, the beneficial effect of the digital process will be much less pronounced,” stressed Vilmos Both, member of the board at IVSZ.

STUDY SHOWS SURPISING RATE OF DIGITALIZATION IN HUNGARIAN ECONOMY

Digital technology in its broadest sense has had a transformative impact on economies worldwide, changing and disrupting numerous production processes and activities, while generating significant benefits to society at large. A recently published study suggests that the level of digitalization in Hungary’s national economy is in fact much more elevated than official statistics suggest.

Banking on digitalization

Engine of growth One in five people in the Hungarian labor market earn their keep working in the digital economy with digitalization having created more than half a million jobs last year: these are the two most surprising findings of the study. “The gross value added (GVA) generated directly and indirectly by the ICT sector increased by more than 20% to

HUF 6,000 billion over the last 5 years, accounting for approximately 25% of the total Hungarian GVA, taking into account multiplier effects,” according to the research, entitled “The Weight of the Digital Economy in Hungary’s Economy”. As a result of digital transformation, digital solutions have penetrated every industry from the financial sector to agriculture, and it is

There are more mobile broadband subscriptions than people in the OECD MOBILE BROADBAND SUBSCRIPTIONS, PER 100 INHABITANTS, BY PACKAGE TYPE, DECEMBER 2017

Data and voice

Data onl y

Breakd own not a vai lable

All technol ogies, 2012

Per 100 inhabitants 180 150 120 90 60 SOURCE: OECD

JP N FI N ES UST AUA DN S SWK LV E A IS KO L R OE IR … NZ L NOL R ID N ES POP CH L E NL D BR EU A 2 GB 8 R AU T LT U IT L UA X CH FRL CH A N SV CZK RU E DES U BE TUL CA R N IS R SV N ZA F PR ME T GRX HUC N CO L IN D

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If executed properly, digital transformation acts like an immune system, shielding the country’s economy from global crises, according to IVSZ Chairman Tamás Laufer. “We have had 10 strong years in the economy, but each good period comes to an end. If economic expansion in the US and Europe grinds to a halt simultaneously, the ensuing recession will trigger layoffs globally and stakeholders' expectations of factory output will increase. This in turn will lead to manufacturing units being moved to cheaper locations. The only chance for us to stand our ground is digitalization,” Laufer pointed out. According to the study, a technologydriven economic business model and the appropriate rate of digital penetration in each sector of the economy would increase Hungarian GDP by HUF 4,000 billion a year. The executives stressed unanimously that government policies play a crucial role in exploiting the opportunities offered by the digital era. Despite the higher-than-thought extent of digitalization present in the country’s economy, the risk of falling to the wayside is still high. In the absence of focused educational programs and initiatives, Hungary risks falling behind in the global race. “Over the next decade, 1 million more people will need to have digital competencies, and this is a huge challenge for the country given that adult education in Hungary is the lowest in the EU. The period of sensitization in the corporate world is also over, we have entered the implementation phase. SMEs need to be taught digitalization tools to make sure they stay afloat,” Tamás Laufer warned. If Hungary follows an organic growth path without a technological breakthrough, the ICT sector's GVA will continue to fluctuate around the current 18% over the forecast horizon, according to the study. However, if the country set out on a technology-driven growth path built around new technologies like 5G, IoT, artificial intelligence and blockchain, the sector’s contribution to economic growth could nearly double by 2023. T R A D E

photo by DEPOSITPHOTOS.COM

Even though digitalization has become an omnipresent buzzword in corporate board rooms, the media, political discourse and even in private conversations, most of us are at a loss when asked to identify the myriad ways it manifests itself in real life or the extent to which it penetrates a country’s economy. A new study by IVSZ and Microsoft Hungary attempts to articulate the actual size of the digital economy in Hungary by adopting non-conventional measurements. IVSZ, the largest and most significant interest group of the Information and Communication Technologies (ICT) industry in the country, was the first to develop a methodology that gives a more credible picture of the size and significance of the digital economy than previous statistical measurements. Consumers increasingly purchase goods and services online and have access to a range of (typically) free services, such as search engines, social networks, media and so on. Businesses are able to capitalize on digital tools and data to boost productivity and penetrate new markets. The pace of technological change has been unprecedented, and in its wake economies are undergoing deep structural changes. “Intensive digitalization is taking place in all sectors that are of key importance to Hungary, which is why we considered it important to get a real picture of the economic impact of digitalization. Based on the results, we can now prove with facts that through intensive technological upgrades and the development of digital knowledge the Hungarian economy will be able to leapfrog,” said Christopher Mattheisen, Chief Executive Officer at Microsoft Hungary.

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business

WATCHING THE RIVER OF LIFE SANDRINE DE SAINT SAUVEUR SERVES A COMPLEX AIRLINE INDUSTRY

APG Network is the world’s leading platform for airline services. With over 100 offices covering more than 170 countries, APG is the world's largest general sales agent (GSA) network, partnering with over 200 airlines to help them optimize revenue flows. APG Network is the global ‘go to’ service provider for air carriers and it offers cost reductions via outsourcing solutions for passenger and cargo sales, marketing, fare filing, customer support as well as settlement plan services, interline, and code-share solutions. President and CEO of Paris-based APG Inc., Sandrine de Saint Sauveur has an impressive track record in the field of commercial and distribution services for airlines; over the last 25 years she has helped grow the business of the APG Group. The executive loves “meeting people from different cultures. My clients are from everywhere. Every time I go to a different country to visit clients and explain to them what we do – I just love it.”

THE HUNGARIAN MEMBER

Business values

Working in a complex industry

Teaching is beautiful

As the head of APG Network’s commercial arm, Sandrine de Saint Sauveur is responsible for the company’s product portfolio and commercial development. “There are about a thousand airlines in the world; we skip the 100-200 biggest airlines and focus on the rest. We work in a complex industry in which the planes and distributors are scattered all around the globe and my vision is that APG should be in the middle and have products that constitute a bridge between the various actors of the sector. I always tell my airline clients that I am not going to bring a huge amount per distributor, but I am going to bring bits and pieces with which you can pay the salaries of your employees.” Over the years, APG has developed its own platform. It can now target larger airlines “because everyone understands the need to diversify the channels of distribution. First you have to find the niche you want to offer your customers and then you will find the right customer,” she points out.

Four years ago, Sandrine de Saint Sauveur was promoted to the rank of Chevalier of the Legion of Honor at the suggestion of the then French Minister of the Economy Emmanuel Macron. “I was really surprised. Of course, I was also very honored! I staged a little ceremony of accepting the recognition to my kids. In my speech I explained to them that me traveling so much gives them freedom and an open mind. I believe that the greatest gifts you can give to your kids are freedom and an open mind. If you have an open mind, you can make it anywhere.” Sandrine de Saint Sauveur gives lectures at ENAC (Ecole Nationale de l'Aviation Civile – Civil Aviation School) in France as preparing a generation of future professionals is close to her heart. “My students will be pilots or will work in engineering. They have about a week to learn about commercial distribution when I tell them about the GSA business,

Honesty, transparency and trustworthiness are the business values that she deems the most important and always encourages her employees to follow. “If you don't know something simply say so! One always needs to learn and follow the principle that the client is right. Of course, I am not saying that I succeed all the time in complying with these principles.” She recalls two things that she learnt from her father. “He said that whoever you meet in life, always look at the best side of that person and make sure that side is shining. That is how I treat everybody. When hiring someone, I focus on the qualities that make them shine. The second thing my father told me was that in business you have to learn to stop sometimes, look at the river and see which way the water is flowing. I only understood this two years ago. Now I know what he meant: if you want to manage and get things done, if you want to grow, if you want to get people on your side, if you want to achieve something, you have to stop and just observe things.”

photos by

CARLOS RODRIGUES

APG Hungary Ltd. joined the APG Network in 1998, becoming the first member from Eastern Europe. The Hungarian APG company, just as the APG Network and all APG companies around the globe, is more than just a general sales agent (GSA). APG takes a holistic approach to airline distribution, offering not only representation but also interline e-ticketing solutions, fare filing, BSP (billing and settlement plan) support services as well as other airline distribution solutions, all aimed at maximizing an airline's revenue potential. In addition to international trade responsibilities, APG Hungary serves 15 airline clients of the Network on the Hungarian market.

which is ruled by the International Air Transport Association (IATA). I explain to them what we do to grow a business, thus teaching them the skills necessary for a corporate career or running a business. I also tell them that what they learn in school will never be enough, they always need to respect the person they are going to meet and never make haste judgements. I also want them to be open and think outside the box. For example, if you had to fill up an aircraft flying from London to the Philippines and you are in Hungary, what would you do?” The executive is keen to find young people with open minds and visions of what they want to do with their lives. “For me, teaching is the most beautiful job ever.”

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hospitality

A GUARDIAN OF HUNGARIAN TRADITIONS

ACCLAIMED HOTELIER PETER KNOLL HEADS TWO OF HUNGARY’S MOST PRESTIGIOUS ESTABLISHMENTS

The General Manager of Budapest’s Gundel restaurant, the most iconic gastronomic establishment in Hungary, received a job offer in early 2019 that was too good to turn down. He was asked to take over the helm at the Hilton Budapest located in the historic Castle District. His professional experience amassed as the head of luxury hotels around the world compelled him to accept the challenge.

GEARING UP FOR THE FESTIVE SEASON The St. Martin Day goose festival is the harbinger of the festive season at the Gundel and at Hilton Budapest. According to the legend, on St. Martin’s Day (11 November), one can infer prosperity or hardships, health and good weather for the coming year. As the saying goes: “Whoever doesn’t eat goose on St. Martin’s Day, will go hungry for the entire year.” Goose dishes enjoy a great tradition at Gundel and naturally the goose liver will be a star of the season, peppered with expertise, noble tradition and an endless passion for food. From December 1, visitors at Hilton Budapest can enjoy the special Advent Brunch while Gundel awaits guests with its celebrated Sparkling Sundays. The Sparkling Sunday is a novel approach to Sunday brunch, with cold appetizers and desserts displayed on a buffet table, while the hot appetizer, soup and the main course of choice are served at the table, classic Gundel-style. Both establishments offer amazing New Year’s Eve programs. Gundel will host a ball upstairs while the restaurant will serve an exclusive eight-course gala dinner with the Gundel Orchestra performing music from famous films and musicals as well as classic gypsy songs. Those preferring a rowdier way to greet the new year, should head to the Hilton where a big party with a spectacular ABBA show will be the highlight of the evening. The hotel’s Lang Bistro&Grill will treat guests to an exclusive buffet dinner featuring the chef’s specialties, unlimited drinks, smooth jazz and a stunning panorama.

Gundel is a symbol of elegance and gastronomic excellence in Hungarian culinary history and the 125-year restaurant is a de rigueur place to visit for tourists with a knack for fine dining. “I felt honored when I was asked to manage the Gundel, an establishment with a history of 125 years and a landmark in this country. This is the only restaurant in Hungary to be declared a Hungarikum and this shows its value not only in Hungarian gastronomy but for Hungarians in general. This is, however, not the first time that a German is running this house as Mr. Gundel himself also hails from Germany,” Peter Knoll says. The Hilton Budapest is an equally iconic establishment, which opened in 1977 as the first Hilton hotel behind the Iron Curtain. Many Hungarians still tell Knoll that during the Communist era they would stroll by the Hilton and peer through its windows to have a peak at the Western world. “The biggest challenge in my job is balancing between tradition and innovation,” the executive says.

After renovation time for innovation Although the Hilton is an institution in Budapest, competition has intensified in recent years as new, exquisite establishments have appeared on the market. The major renovation program implemented over the past 4.5 years has transformed the Hilton into a modern, stylish hotel, which can compete with all the other five-star hotels in the

city. With the renovation completed, the hotel is now gearing up for the innovation phase, Knoll says. The plan is to open a sky bar on the top of the Hilton that will be different from similar bars in Budapest due to the unparalleled view. “There is no other place that offers an almost 360-degree view of downtown Budapest and where one can literally gaze down at the roof tiles of Matthias Church and down into the Fisherman’s Bastion, not up. The completion of this project is one of my most treasured objectives at the moment,” Knoll says smiling.

My heart is in Gundel The executive entertains ambitious plans to “take the Gundel into the 21st century.” Joining forces with Executive Chef Zsolt Litauszki, they are working on making the presentation more modern and adopting a lighter, more modern approach to traditional dishes. The size of the restaurant is also a challenge; the Gundel boasts 130 seats while modern fine dining establishments generally have a capacity of up to 40 people. “We are in the brainstorming phase of how to turn the Gundel into a leaner and more up-to-date restaurant while retaining the historical features that render it unique,” Peter Knoll says. Expectations are fragmented between local and foreign guests, traditionalists, who come to the Gundel because of their memories and clients driven by Litauszki’s innovations. “I am originally a hotelier; I have been working in hotels over the last

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35 years and I only started working in standalone gastronomy in 2018. The two establishments are equally important to me; being a true hotelier, I am extremely fond of managing the Hilton. But when I started to work in the Gundel, the restaurant conquered my heart and it still does. To be entrusted by Hungarians with such a treasure as a foreigner is a great show of trust, which I respect highly,” Knoll says.

Home away from home Knoll first came to Hungary in 1995 for work and returned to Budapest for various jobs in the hotel industry in 2002, 2007 and 2017. Tired of living in rented places, he decided to buy his own place in downtown Budapest in 2007. “Most of my friends are here, my family appreciates Hungary very much, they come to visit me on a regular basis. Because Hungary is so dear to me and my family, we have decided to celebrate my mother’s 80th birthday in Budapest. When I first came to Budapest in 1995, I started as an expat but less than a year later I was asked to take over the sales and marketing department of the hotel I was working at. The owners told me I was the ideal candidate because Hungarians respected me and did not consider me a foreigner. I felt at home in Hungary from the very beginning and the years I have spent away from my home country have turned me into a true Europener.”

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HARANGOZÓ, GUNDEL

Balancing history and innovation

photos by DÁVID

“Having to run these two prestigious establishments means I’m truly trusted but it also comes with a lot of pressure. The expectations of the public are very high as both places are deeply rooted in the country’s history. When you change history because you are making renovations and upgrades, or you adopt an innovative approach with an eye to the future, everyone has a marked opinion and meeting all the expectations is virtually impossible,” Peter Knoll, Managing Director at Gundel Restaurant and General Manager of Hilton Budapest tells Diplomacy&Trade. The two establishments are part of the portfolio of the Danubius Hotels Group.

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society Japanese Drummers As the closing event of the 150-year anniversary of Hungarian-Japanese diplomatic relations, the Japanese Embassy in Budapest and the Hungarian-Japanese Friendship Society organized a wadaiko (Japanese drum) concert featuring three taiko (drum) groups: the Bonten, the Kiyo Kito Taiko and the drum ensemble of the Japanese School of Budapest. The concert was held at the Palace of Arts (Müpa) in Budapest.

The Republic Day of Turkey On the 96th anniversary of the proclamation of the Republic of Turkey by Mustafa Kemal Atatürk in 1923, Ambassador Ahmet Akif Oktay invited guests to a reception in the Hungarian Heritage House located in the Museum of Military History in Budapest.

DSB Charity Fair

Austria National Day The Ambassador of the Republic of Austria to Hungary, Elizabeth Ellison-Kramer held a reception in celebration of her country’s National Day for fellow diplomats and other guests at her residence in Budapest. The Austrian Parliament passed the constitutional law of permanent neutrality on October 26, 1955.

The Diplomatic Spouses of Budapest (DSB) organized the 9th Diplomatic Fair at the InterContinental Budapest under the patronage of Anita Herczegh, the wife of Hungarian President János Áder. More than 50 countries were represented by their embassies at the charity event, showcasing their nation’s specialties, including crafts, souvenirs, food and drinks.

Members of the diplomatic corps and other guests celebrated Belgium’s King’s Day at a reception organized at the residence of the Ambassador of the Kingdom of Belgium, Siegfried Peinen. Belgium has celebrated the King's Feast, held in honor of the King since 1866.

Latvia Independence Day On the 101st anniversary of the proclamation of the Republic of Latvia, the country’s Ambassador to Hungary, Vilmārs Heniņš hosted a reception in the Museum of Military History in the Buda Castle. The country’s independence was proclaimed by the People's Council of Latvia on November 18, 1918.

Korean Cultural Center Re-opens The 30-year anniversary of diplomatic relations between Hungary and the Republic of Korea also marked the official re-opening of the Korean Cultural Center at a new location in the Hungarian capital. The 8,000-sqm facility, the fifth largest cultural center worldwide and the largest in Europe, was rebuilt with a HUF 3 billion investment.

photos by

EMBASSY OF JAPAN, COURTESY PICTURES, DÁVID HARANGOZÓ, MÁRTON MÓNUS/MTI

Belgium King’s Day

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witty leaks WITTY

LE A K S

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

THREE MEETINGS WITH HUNGARY

POLISH-HUNGARIAN MEMORIES SPANNING MORE THAN FOUR DECADES BY POLISH AMBASSADOR TO HUNGARY JERZY SNOPEK

years. I saw him for the first time at Bibó Kollégium (college for advanced studies). Then I saw him at Professor Felczak's lecture. The legendary professor was our friend and we hosted him several times in our apartment. The fake image of the October 1956 events has been gradually verified, brought out of oblivion by those opposed to the system, by political activists, intellectuals and artists who had been banned until then. In 1986, my superiors at the university banned the organization of an evening of Polish poetry devoted to the Hungarian October but soon afterward we started to see winds bringing fresh air to the East. It was commonly associated with two words: Gorbachev and perestroika, bearing hope for a system change, liberation, a more dignified and better life. In 1989, this hope became a reality. My Hungarian friends were preparing political changes, and soon many of them exchanged university chairs for political offices. These were exciting times. Sometimes, I regret experiencing them outside of Poland.

There were, of course, more than three meetings. More than 33 in fact, but these three, which I will briefly present, seem the most important from today's perspective. They are deeply rooted in memory and heart. 1975-1976

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1985-1990 The years I worked at Loránd Eötvös University in Budapest. We lived together in Warsaw from 1977. I worked at the Polish Academy of Sciences and my wife at the University of Warsaw and the Hungarian Institute of Culture. In the summer months, we spent several weeks in Hungary, mostly in Hatvan and Balatonboglár. During the period called the ‘Solidarity Carnival’, some Hungarians felt lost under the influence of communist propaganda. Anti-Polish remarks appeared in television and radio programs, in the press and on the stage. Also, Polish jokes in Hungarian. The emptiness of Polish stores was ridiculed, people were convinced that Hungarians worked hard while the Poles were striking. This venom oozed for a long time – until the end of the eighties. In the history of the centuries-old Polish-Hungarian friendship, this was an isolated phenomenon. But it must be noted that the knowledgeable part of society did not give in to manipulation. People from this part of society were interested in the Polish revolt, solidarized with the aspirations of Poles and supported them in various ways. In the second half of the 1980s, the political climate and the social mood in Hungary began to change. Cultural events for trusted people were organized in private homes. I participated in many such events. Churches were filling up like never before. More and more Hungarians went to Poland for pilgrimages and meetings with the Pope. In 1987, three young Hungarians went to Poland to meet John Paul II: János Áder, László Kövér and Viktor Orbán. Soon, they became the main engines of democratic change. I remembered today's Prime Minister of Hungary from those D E C E M B E R

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2016 We returned to Poland on September 1, 1990. There were already five of us. On March 2, 1987, Anna was born, and Júlia on May 29, 1990. Adam, born on February 6, 1992, joined our family in Poland. Thanks to their mother, all four speak both languages equally well. During the quarter century spent in Poland after 1990, my dreams for political activity faded, but my interest in politics increased even more. Just like my passion for Hungarian. My intensive contacts continued throughout this period. Not only through my periodic stays in Hungary, but also through deeper contact with Hungarian history and culture. At the same time, I watched with interest the development of both countries, which accelerated especially after their accession to the European Union and stormy worldview changes in our societies. At the beginning of 2016, I received a job offer as the Polish ambassador in Hungary. After some reflection, I decided it was time to undertake such a mission. For three years now, I have been trying to best serve the interests of my homeland, which in many cases coincide with those of my second country – Hungary. This period has been rich in inspirational experiences and impressions. Maybe I will describe them one day.

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OF POLAND

We visit these beautiful, once Hungarian cities. We stay in a hotel because even members of the family are not allowed to stay at relatives’ homes. One of the relatives drives us around this wonderful land in an old Skoda Octavia. Poor villages surrounded by fabulously beautiful landscapes. Most of the inhabitants are Hungarian but generally speak Romanian. They mention mixed marriages favored by the authorities. Márta introduces me to the history of the Land of the Seklers, Csángós, and Transylvania. I learn the secret of Hungarian nostalgia associated with them. Now I understand the endless conversations at the table after each meal. Listening for hours to the buzz of an unknown language, I began to sense where the next words begin and end. This is significant progress. After returning to Hatvan, I make a reckless purchase: I buy several Hungarian books, including the biography of Attila József and a volume of poems by János Pilinszky. I bring them to Poland with determination and hope, parting with Hungary and Márta at the end of August. As we stand in that fragrant evening, I am suddenly concerned about our future. My next short visit to Hungary is at the end of September. As I get off the train in Hatvan, the autumn wind blows the sweet smell of sugar beet and molasses from the local sugar factory. Ever since, this fragrance has always sent me back to those times and to my wife's hometown. She became my wife the following year. We spent the honeymoon in Eger. Then we had to part. When I arrived in Hungary in December, the first view greeting me was our little daughter in the cradle. Today, as I write these words in the middle of November, she turns 43.

photos by EMBASSY

July 1975. My first trip to Hungary. Together with my fiancée Márta Gedeon. We speak Polish. In addition to Hungarian and English studies, she is enrolled in Polish studies in Budapest. She comes to the University of Warsaw as a scholarship holder. I met her at the beginning of my studies, now she is writing her master's thesis on Zbigniew Herbert's ‘Barbarian in the Garden’. We ride the famous night train, Báthory, also known as the ‘Smuggler’. Monstrous hug. Fellow countrymen travel for leisure but also for business. We are at the half time of Gierkowska's decade in Poland. Stores will only start emptying in the following years, but the difference in supply between Poland and Hungary is already visible. I will find out soon enough. At dawn, we cross the Hungarian border. A charming sound signal at the stations – the first melody heard in Hungary. It still evokes feelings. The sun has already risen. I look out the window at the fields. How different from ours, painted with a variety of grain / gilded with wheat, silvered with rye – to use the words of Adam Mickiewicz. Here, as far as the eye can see, sunflowers and corn. Hungarian speech reaches my ears. I don't understand anything, although I know a few words and phrases. This language is so hermetically closed that the foreigner is intimidated. I'm losing faith that I'll ever learn it. I hardly notice how beautiful Budapest is. We're going straight to Hatvan. I know that the name of Márta's hometown means ‘sixty’ and that is the distance – 60 kms – that separates it from the capital. At home, we find almost the entire large family. Four of five siblings, brother-in-law, father. Mom has been dead for several months. The next day, we set off for Transylvania. The two of us and Márta's sister with her husband. We're going to see his family in Kolozsvár and Marosvásárhely.

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culture

WITH AND WITHOUT YOU A TRULY ITALIAN TAKE ON THE TOPIC OF ETERNAL LOVE

Forever You (Un’Avventura) is Italian director Marco Danieli’s brave foray into the world of musicals in a day and age when the genre is considered risky by many in the world of cinema. Danieli sat down with Diplomacy&Trade to talk about the indispensable role personal relationships play in our own fulfillment in life. The story is simple and yet eternal. Matteo has been secretly in love with Francesca since their childhood, but the girl has left the small town where they grew up to travel the world, riding on the waves of the sexual liberation of the 1970s. When she returns, Matteo decides to finally make her fall in love with him, even though she is no longer the innocent girl he remembers. Marco Danieli’s romantic musical Forever You is built on the Italian cult songs of the seventies.

Molto Italiano To a non-Italian viewer, Forever You is Italian to its core. The songs, the atmosphere, the intensity of the feelings all convey a veritable Italian ambiance. “As an Italian, I can hardly be an objective judge of how Italian my movie is, as what is natural to me could be strange and special for others. Foreign audiences may see more machismo in movies like this but that is perceived differently by Italians. The way Matteo follows this woman is not ‘macho’ at all: he is indecisive, dawdling behind a woman, trying to get in touch with her – perhaps his superficial gestures are perceived by a foreign audience as macho,” Daneli says.

Loneliness and independence

would think. They start on a journey together in the big city (Rome) that transforms them but also makes them lose each other.” Their life in Rome takes unexpected turns as Francesca grows distant from her partner but eventually the big city brings them back together again.

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TRUE COLOURS-GLORIUS FILMS, DÁVID HARANGOZÓ

The two main characters, Matteo and Francesca, have truly different personalities. Francesca is a rebel, seeking to flee the countryside while Matteo is ready to reconcile with the tranquility of a traditional, small-town lifestyle. Loneliness comes to play a central role in both their lives. As Marco Danieli puts it, “what connects them is that they are both lonely inside. The difference is that Francesca rebels against the world while Matteo turns inward to cope with his loneliness. They set out on a journey of transformation together to which Matteo’s connection to music greatly contributes. Fundamentally, it seems throughout the movie that they do not fit as a couple but slowly viewers notice how much these two people have in common – more than anyone

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the new ways of the world. “Two of Matteo’s friends reflect the ‘macho’ type, that is the opposite of what Matteo is really about. Matteo is uncertain, he cannot find his place in the world and he does not know what he wants. Francesca is the motivator without whom Matteo would not have set out to change. The movie is centered on their relationship, all set in a truly Italian atmosphere of the 1970s, and brought to life by the contemporary songs of Lucio Battisti. These songs also depict the conflict between the generations; this is not necessarily the central message of the lyrics but they carry this notion under the surface.” Through these iconic tunes, the director seeks to reconstruct the historical context in which women’s role, their place in society and in politics began to change in Italy.

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Macho or not?

Women with complex roles

The movie touches upon the ‘macho male vs. independent girl’ theme. The director is hesitant to call Matteo a ‘macho’ character, Danieli sees his male protagonist as a person who has not opened up to modern ideas,

Un’Avventura is Marco Danieli’s second feature film after the 2016 ‘La ragazza del mondo’ (Worldly girl), which was both written and directed by him. In Forever You he assumed only the role of the director. “What connects the two movies is that in both of them women play a complex role, they are never merely the servants of men. The main male character is played by the same actor, Michele Riondino, in both movies. In La ragazza del mondo, he was the spark that ignited in the woman the process of change but he was not able to keep the pace with her. In Un’Avventura, the male protagonist is no spark at all, but the situation is similar: he simply cannot keep up with the woman, he is not able to follow her. Although the film is set in the Italy of the 1970s and it may seem that such occurrences were only possible then and there, I believe the same phenomenon can be observed in contemporary Italian society: women finding their true selves and becoming independent results in men being unable to keep the pace with them and not knowing which way to go.” The director stresses that portraying relations between men and women up close is where he ‘feels at home’ and that he is not that confident he would be able tackle other subjects quite so successfully. His characters’ personalities, their search for identity is very close to his heart. “That sometimes brings along diversity. In La ragazza del mondo, the main character joins Jehova’s Witnesses in her search for identity. From this point of view, identity is more important than maintaining a relationship. Relationships have functional roles in my movies, allowing me to explain a change in a person’s identity.”

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what's on 16TH SANTA RUN

DECEMBER 15, BUDAPEST

This annual community jog does not draw the crowds that the major marathons do, however it is a lot more spectacular, especially when it comes to the outfits of the joggers: sneakers, Santa hats, Speedos and bikinis only. The craze began in Boston, USA in 2000, in an effort to raise money for charity. Since then, similar events have been held around the globe, including Budapest. This year, participants will gather at Gozsdu Yard’s Go Active Fitness Center, downtown, and make their way to Városliget (City Park) where they will crown their efforts by collectively jumping in the hot baths at Széchenyi Spa. Funds raised this year will support the Édes Gyermekkor Foundation. www.mikulaskocogas.hu

XMAS FAIRS IN TOWN

UNTIL THE FIRST WEEK OF JANUARY 2020, MULTIPLE VENUES IN BUDAPEST Christmas lights and a joyful holiday atmosphere await visitors at many of the most beautiful squares of Budapest. Stroll around the cottagestyle wooden stalls with a mug of mulled wine at Vörösmarty Square and visit St. Stephen’s Square, where an ice skating rink is set in front of the Basilica, surrounded by a number of vendors selling Christmas-themed arts and crafts, mulled wine, pálinka and other tasty fares. The Várkert Bazár and Városháza Square will also feature stalls and vendors, as well as District 3’s Szentlélek tér.

DASH!

JANUARY 9, 2020, BMC

(BUDAPEST MUSIC CENTER) Just like the Olympic 100m dash, a concert by the Amsterdam free-funk trio DASH! is a profound, almost physical experience. Invariably, audiences rave about how the band combines complex interplay with a committed yet easy going stage presence. With deceptively simple material, DASH! creates a musical universe all its own, a universe in which only the notes that matter are played in a highly transparent fashion. This results in a very intense, minimalistic and almost hypnotic band sound filled with moments of uncurbed swing, volcanic eruptions and whispering melodies. DASH! started in 2004 as an octet and restarted in 2012 in its current trio line-up. Leader Maarten Ornstein is an award-winning saxophonist and clarinetist who works with leading musicians from jazz, classical and Arabic music. He played at the Opus with Sunna Gunlaugs in 2017. His eclectic playing has been featured on over 30 CD’s by a wide variety of international ensembles, including his own. Completing the trio are bassist Alex Oele and drummer Eric Hoeke, both among the most highly praised musicians in The Netherlands and members of bands such as SFeQ, Kraak & Smaak and Zuco103. www.bmc.hu

GALA CONCERT OF THE 100 MEMBER GIPSY ORCHESTRA DECEMBER 30, BUDAPEST CONGRESS CENTER

FEBRUARY 4, 2020, PAPP LÁSZLÓ SPORT ARENA

Slipknot is an American heavy metal band from Des Moines, Iowa, well known for its attentiongrabbing image, aggressive style of music, and energetic and chaotic live shows. Founded in 1995 by percussionist Shawn Crahan, drummer Joey Jordison and bassist Paul Gray, the band rapidly rose to fame following the release of their eponymous debut album in 1999. The 2001 follow-up album, ‘Iowa’, although darker in tone, made the band more popular. After a brief hiatus, Slipknot returned in 2004 with ‘Vol. 3: The Subliminal Verses’, before going on another break and returning in 2008 with a fourth album, ‘All Hope Is Gone.’ After another long hiatus, Slipknot released a fifth studio album, ‘The Gray Chapter,’ in 2014. Their sixth studio album, ‘We Are Not Your Kind’, was released in August 2019. So far, the band has sold 30 million records worldwide. Following their huge success at Volt Festival, they will stop in Hungary again and will be live in Budapest. www.livenation.hu

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SLIPKNOT

DEPOSITPHOTOS.COM, BUDAPEST MUSIC CENTER, LIVE NATION

Every year on December 30, the world famous 100 Member Gipsy Orchestra presents a grandiose concert at the Budapest Congress Center, as part of the Music-Wine Festival. The uniqueness of the event lies in the folk show and wine tasting where the audience gets the chance to meet the best winemakers. Guests seated on the ground floor can enjoy dinner, snacks and wine while listening to Liszt, Strauss and Khachaturian pieces in the interpretation of the Hungarian Heritage Prize winning orchestra which, since its foundation in 1985, has held over a thousand concerts in the world’s most famous concert halls, proving the artistic value of Hungarian and Gipsy culture and folklore. www.argosart.hu

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what's on THE SEUSO TREASURE HUNGARIAN NATIONAL MUSEUM From 1st century AD, the Western part of what is now Hungary belonged to a province named Pannonia of the Roman Empire. The final heyday of Pannonia in 4th century AD was characterized by huge manors and luxurious villas located in the countryside. Their owners belonged to the rich elite of the empire. One of them was named Seuso, whose silver tableware is now exhibited at the Hungarian National Museum. The Seuso treasure is well-known in the world due to its unrivalled beauty and cultural significance, as well as a number of criminal activities attached to history. The treasure itself was found by a young man in 1975 in Kőszárhegy, near Lake Balaton, but he was soon killed and the treasure disappeared. When it reappeared at the international auction market in the 1980s, only fake documentations were available to prove its origin so it could not be sold. Lawsuits, scandals and unsuccessful auctions marked the last 25 years of the treasure’s modern history. In 2017, the Hungarian State fınally came to an agreement with the person possessing it and all the 15 pieces (worth EUR 28 million) were repatriated to Hungary. www.mnm.hu

BAROQUE CONCERT: VIVALDI JANUARY 10, 2020, LISZT ACADEMY

Jonathan Cohen, British expert of Baroque music and a returning conductor of the Budapest Festival Orchestra, will use Vivaldi’s striking, fairytale-like composition to show how international diplomacy worked in the 18th century. La Senna Festeggiante (The Seine in Celebration) is by far the best of Antonio Vivaldi’s three surviving serenatas from what is believed to have been a total of eight pieces. Written for an instrumental ensemble with three vocal soloists, the two-part serenata runs just shy of ninety minutes. It was composed in 1726 in hopes of creating an alliance of nations. Venice, whose army was rather modest in size, was in need of the support of larger powers, which is how certain French elements seeped into the essentially Italian musical style, and also why Vivaldi pays homage to the 16-year-old Louis XV with almost embarrassing enthusiasm. The serenata’s simple plot, which employs only positive, allegorical characters – personifying Louis’s positive characteristics – was conceived by Domenico Lalli, who was the librettist for several Vivaldi operas. Virtue and The Golden Age meet on the shores of the Seine to ponder the horrors of the world. The river speaks to them, takes them in, and the three characters end up singing praises to Louis’s greatness. Vivaldi’s music, fortunately, elevates this awkward lobbying to great artistic heights. The arias, describing among others the flow of the river and the storm, are highly expressive. The vocal melodies are often virtuosic, the duets are lyrical, and the occasional instrumental solos never fail to make an impression. In addition to the emphatically French elements (such as the overture of the second part), Vivaldi relied heavily on his earlier works and these arrangements are, in many places, more convincing than the originals. The work, rarely performed in Hungary, will feature Emőke Baráth alongside the BFO. Baráth also sang in the serenata’s 2012 Hungarian premiere. www.bfz.hu

RUBENS, VAN DYCK AND THE SPLENDOR OF FLEMISH PAINTING UNTIL FEBRUARY 16, 2020

MUSEUM OF FINE ARTS The exhibition showcases the Golden Age of Flemish painting through the art of the foremost Baroque master of European art, Peter Paul Rubens and that of his contemporaries. The 120 or so displayed works are on loan from forty prominent public collections, including the Louvre in Paris, the Hermitage in Saint Petersburg, the Prado in Madrid, the National Gallery in Washington D.C. and the National Gallery in London. In addition to almost thirty masterpieces by Rubens and more than a dozen by Van Dyck, visitors will also see excellent works by other Flemish masters. Visitors will also get an insight into tapestry art, a genre renewed by Rubens, and its process from oil sketches to weaving. www.mfab.hu

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ANDRÁS DABASI - JUDIT KARDOS, PETER PAUL RUBENS/A SATYR AND A NYMPH - 1617–1619 OIL ON CANVAS - PRIVATE COLLECTION ON PERMANENT LOAN TO © LIECHTENSTEIN - THE PRINCELY COLLECTIONS, MARCO BORGGREVE

PERMANENT EXHIBITION

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gastronomy

LET US TAKE YOU ON A MAGICAL HOLIDAY EXPERIENCE AT THE RITZ-CARLTON, BUDAPEST

MORE INFORMATION: www.ritzcarlton.com/budapest +36 1 429 5500 concierge.budrz@ritzcarlton.com

Dive into the Christmas spirit and choose from the tempting take-away Holiday Buche de Noël selection created by the Pastry Team of the hotel. Enjoy the holiday’s sweet tastes in the warmth of your home and order the delicious Christmas turkey boxes to go until January 1 for the perfect family feasts. Spend the holidays at The Ritz-Carlton’s DSK Wine & Grill restaurant enjoying the festively inspired three-course Christmas menu through December and say goodbye to 2019 at DSK’s Bohemian Rhapsody themed evening with a special five-course dinner and tunes from the most renowned rock band, ‘Queen’. The hotel’s Kupola Lounge will blend the festive spirit with soothing live jazz for truly delightful brunches on Christmas Day and on New Year’s Day to complete2your11/25/19 holiday journey withPM The Ritz-Carlton! kempi-D&T-TKC-127,5x160-201912:Layout 1:03 Page 1

ROSENSTEIN

HIDDEN ON A BACK STREET near the Keleti Railway Station, this family-run restaurant is worth the unlikely detour, with its sophisticated yet casual atmosphere that embraces you in its warmth. Owner and internationally renowned Chef Tibor Rosenstein, and his son, Robi focus on good, authentic food and friendliness. It is unpretentious, with simple white tablecloths, fresh flowers and original artwork on the walls. The Rosenstein kitchen, however, is the heart of the house with a combination of colorful Hungarian cuisine, including a few Jewish favorites.

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RECOMMENDATION • Rosenstein Farm Starters from the Rosenstein Farm • Meat broth with matzo ball • Stuffed neck of goose with pearl barley risotto • Veal cheeks confit with porcini sauce • Kaiserschmarrn

BALKÁNYI, THE RITZ-CARLTON BUDAPEST, PIXELTASTER

IT MAY BE LAST-MINUTE BUT IT’S NEVER LAST ORDERS AT THE KITCHEN CATERS!

1087 Budapest, Mosonyi u. 3. +36 1 333 3492 rosenstein@t-email.hu www.rosenstein.hu

New Year’s Eve party, New Year’s launch party… party, party, party. Will the fun ever end? But have you sorted yours? Bypass the pressure and keep feeling festive in 2020! The Kitchen Caters is fully equipped, staffed and prepared to cater any and all last-minute events in the coming year as well. New on the menu: our own Indian chef’s colourfully flavourful creations. Contact us now, and we will quickly organise and host your event for you and your guests. You just party on!

photos by LÁSZLÓ

Celebrate the magic of this festive season with The Ritz-Carlton, Budapest. We invite you to indulge in exciting gastronomic experiences and to let the carefully curated events create long-lasting memories for you and your loved ones. Prepare to fill your heart with warmth and sparkle as you embark on the seasonal celebrations!

www.thekitchencaters.com, info@thekitchencaters.com, T +36 20 570 9360

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At this time of the year, everything around us is adorned by festive decorations, our homes and the streets are beautifully illuminated, and love is in the air. One of the crowning glories of this festive period is the intimate and cozy family dinner featuring carefully prepared, mouthwatering dishes, which are best accompanied by a truly amazing wine: Tokaj aszú.

#TOASTWITHASZU

wine

CELEBRATE WITH ONE OF THE GREATEST SWEET WINES IN THE WORLD!

What makes aszús so special? To many, the price of a bottle of aszú may come as a shock. However, it will come as less of a surprise once you’ve learnt how many conditions need to be fulfilled for proper aszú berries to form (See box). Even though the climate of Tokaj is particularly suited to aszú production it is still not uncommon that in certain vintages some wineries cannot make aszú at all. Tokaj aszú is not a wine for everyday drinking, however it can create an unforgettable experience when you uncork it for a special occasion.

Culinary tips for the festive season There is no better loved holiday than Christmas, therefore this is a highly appropriate occasion to open a bottle of aszú. In fact, no table laid for a Christmas dinner is complete without a bottle of aszú. Thanks to the rich diversity of Tokaj aszús there is no limit to the number of potentially exciting combinations with food. Though aszú is a sweet wine, its unique aromas and high acidity makes it a good companion to dishes other than desserts. This characteristic is most welcome as it means that an aszú can accompany all the courses of a Christmas dinner. Aszús are great with foie gras served either roasted in slices and garnished with candied fruit, or prepared as paté, served with jam, chutney or brioche. A glass of aszú is an excellent partner for saline, pungent blue cheese. Take a star form to cut smaller bites from toasted bread, cover them with spread made of Roquefort, Stilton or Gorgonzola cheese and garnish with dried fruit. Another suggestion is to remove the seeds of dates, fill them with the cheese spread and then wrap them in thin slices of Serrano ham. Aszú might also work with the main course. It goes well with chicken stuffed with tangerine, raisins and thymes especially if you’re willing to sacrifice a glass of wine for the roasting of the bird. Likewise, with mango and duck or partridge accompanied by apples and grapefruit. The most suitable garnishes are the ones made from vegetables which can easily get caramelized and are slightly sweeter, like carrots, sweet potatoes or pumpkins. Should you want to completely steer away from traditional, classic dishes to the intensely spicy Chinese cuisine with its mix of sweet and hot flavors, aszú is once again a great accompaniment. The above examples represent real culinary adventures but let’s not forget about desserts. Classic Hungarian Christmas cakes like bejgli, zserbó, gingerbread, fruit loaf and Florentine biscuit are all heavenly matches for aszús. It can also be paired with non-traditional cakes, be it an elegant French crème brûlée or an English rustic pecan pie, and it is certainly no sacrilege to dip your almond biscottis into aszú, instead of vin santo. A bottle of aszú is a wine for all seasons and especially for the festive season. Make sure you buy one and enjoy the happy moments. Should you open a bottle of aszú during the holidays, please use the #ToastWithAszu hashtag and share your experience with others!

SPECIAL MICROCLIMATE AND THE NOBLE ROT

The Tokaj wine region situated in North East Hungary has a long tradition of wine making, in fact it was the world’s first delimited wine region with records dating back to 1737. The secret to its exceptional sweet wines with their incomparable character lies in the coexistence of five factors: soil, microclimate, botrytis, native varieties and technology. Botrytis cinerea is a fungus that infects healthy and ripe grape berries: it punctures the grape skins thereby assisting the evaporation of liquid matter and by doing so increasing the concentration of sugar, acidity and flavor compounds. The proximity of two rivers, Tisza and Bodrog – thus the location – is very important within the process: the morning fog ascending from the rivers followed by dry sunny days create ideal conditions for ‘shriveling.’ However, infection does not happen to all berries, so the shriveled ones need to be picked one by one over a prolonged period. This is an extremely labor-intensive process; even experienced pickers can gather only 6-7 kilograms a day.

FURMINT PHOTO

AWARDS WON: Decanter World Wine Awards 2016: Gold Medal – 95 points Decanter Asia Wine Awards 2016: Gold Medal – 97 points 20th Grand International Wine Award: Gold Medal Vinalies Internationales 2017: Gold Medal Challenge International du Vin 2017: Gold Medal

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