Diplomacy & Trade 2020 January

JANUARY 2020 HUF 1710

EUR 6

CAN THE CENTER HOLD? NATO CELEBRATES ITS 70TH ANNIVERSARY SEE ANALYSIS on page 27

Croatia

country

FOCUS

The Presidency of the Council of the European Union is held by Croatia in the first half of 2020.

The Croatian Ambassador, Dr. Mladen Andrlić talks to Diplomacy&Trade about the challenges faced by the Presidency as well as about bilateral relations while in the leading interview of the Focus, Croatia’s Minister of Foreign and European Affairs, Gordan Grlić-Radman, also discusses the relations of the two countries in both bilateral and multilateral aspects. see articles on pages 8-21

Circular Economy Summit

The Hungarian Circular Economy Platform and the Holland Circular Hotspot signed a declaration of cooperation during the Circular Economy Summit in Budapest to propagate the best international examples of circular economy initiatives, related knowledge and tools, share domestic experiences and foster the work of governments. Diplomacy&Trade discussed these issues with Freek van Eijk, Director of the Holland Circular Hotspot. see more on page 26

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DÁVID HARANGOZÓ, MÁRTON KOVÁCS/MFAT, BENCE SZEMEREY, BENCE MÁTÉ/WWW.BENCEMATE.COM

GERGELY BOTÁR/KORMANY.HU, DÁVID HARANGOZÓ, ÉMI NONPROFIT LTD., KÁROLY ÁRVAI/KORMANY.HU, SPARTA PHOTOGRAPHY CLUB, MIHÁLY MAJTÉNYI, KÁROLY ÁRVAI/KORMANY.HU, DÁVID HARANGOZÓ

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U.S. SECRETARY OF STATE VISITS HUNGARY

In February, Secretary of State of the United States, Mike Pompeo paid a short visit to Budapest where he met with state leaders to discuss the political, economic and defense aspects of bilateral relations. He also met the representatives of NGOs in the Hungarian capital. At a press conference, Mike Pompeo welcomed the finalization of the defense co-operation agreement between the two countries and Hungary’s acquisition of combat equipment from the U.S. Addressing the situation in Ukraine, he said that "we must not let Putin drive wedges between friends in NATO. Hungarians know all too well from their history that an authoritarian Russia will never be a friend to the freedom and sovereignty of smaller nations.”

The US Secretary of State announced a scholarship program for Hungarian high school students, and also talked about supporting the fight against corruption.

january

march

HUNGARIAN-AMERICAN FILM PRODUCER DIES AT 74

In January, the founder of the Hungarian National Film Fund, Andrew G. Vajna died at the age of 74 in his Budapest home after a long illness. He launched his career in the entertainment industry with the purchase of motion picture theaters in the Far East. Vajna met Mario Kassar at the 1975 Cannes Film Festival, which led to the formation of the production company, Carolco Pictures. In 1982, Vajna was a founder and president of the American Film Marketing Association. In December 1989, Vajna sold all his interest in Carolco and formed Cinergi Productions, Inc. to engage in the financing, development, production and distribution of major event motion pictures. In 1989, he founded InterCom, the distributor for several major Hollywood studios in Hungary. Since 2011, Andrew G. Vajna had been the Government Commissioner in charge of the Hungarian film industry.

HUNGARIAN MOVIE WINS IN MONTE CARLO

The award for best film at the Montecarlo Film Festival de la Comédie in March was given to the Hungarian movie 'Bad Poems', directed by Gábor Reisz.

The top prize of the 16th annual festival was presented to the director by the President of the Jury, Serbian movie director Emir Kusturica, an award-winning worldrenowned filmmaker. 'Bad Poems' is about 33-years old Tamás Merthner, heartbroken after his girlfriend Anna, who is on a scholarship in Paris, breaks up with him.

While wallowing in self-pity, Tamás takes a trip down memory lane to figure out if love only exists when it is practically gone.

As he tries to pick up the pieces, he begins to realize what makes Hungary’s current society so confused, which gives a highly subjective view of Hungary's present.

february HUNGARIAN PHOTOGRAPHER WINS WORLD PRESS PHOTO AWARD

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april

‘Harvesting Frogs’ Legs’, taken by Hungarian photographer Bence Máté, won 1st Prize in the Nature category of the 2019 World Press Photo contest in April. It depicts frogs with their qaaaaaaaaa severed and surrounded by frogspawn struggling to the surface, after being thrown back into the water in Covasna, Eastern Carpathians and Romania. Frogs’ legs are frequently harvested for food in the spring when males and females gather to mate and spawn. Legs are sometimes severed while the animal is still living. About USD 40 million of these frog legs are sold annually, with countries across the world participating in the trade.

A small part of the population in the Carpathian Mountains make their living by collecting frogs’ legs in the wild and selling them.

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year in pictures GOVERNING PARTY TAKES MOST SEATS IN EUROPEAN ELECTIONS

ILL-FATED BOAT RECOVERED FROM THE DANUBE

Hungary’s ruling political party, Fidesz (in alliance with the small satellite party Christian Democrats) won 13 of the 21 seats allocated for Hungary at the European Parliamentary elections on May 26. Fidesz (with 52.56% of the valid votes) came in well ahead of the leftist Democratic Coalition, which was second with 16.05% (four seats), according to national election office data. The centrist Momentum Movement was third with 9.93% (two seats) while the Socialists (6.65%) and the nationalist Jobbik (6.34%) both weakened significantly, winning one seat each. It remains to be seen whether Fidesz will continue as part of the centerright European People's Party (EPP), which suspended the Hungarian party's membership prior to the European Parliamentary elections, pending inquiries by three senior EPP officials.

DÁVID HARANGOZÓ, MÁRTON KOVÁCS/MFAT, BENCE SZEMEREY, BENCE MÁTÉ/WWW.BENCEMATE.COM

GERGELY BOTÁR/KORMANY.HU, DÁVID HARANGOZÓ, ÉMI NONPROFIT LTD., KÁROLY ÁRVAI/KORMANY.HU, SPARTA PHOTOGRAPHY CLUB, MIHÁLY MAJTÉNYI, KÁROLY ÁRVAI/KORMANY.HU, DÁVID HARANGOZÓ

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may

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june

On June 11, following several days of preparations, the wreckage of the 40-ton, 27-meter sightseeing boat Hableány (Mermaid) was lifted by rescue workers from the bottom of the River Danube. The Hableány sank almost two weeks earlier: shortly after 9 p.m. on May 29, its rear side was hit by the 135-meter, 1,000-ton river cruise ship Viking Sygin at the foot of Margaret Bridge causing the boat to capsize and disappear in the water within seconds. At the time of the sinking, there were 35 people onboard: 33 South Koreans (31 tourists and two tour guides) and a two-member Hungarian crew. Only seven people, all of them South Koreans, survived. They were rescued by police and civilian boats right after the accident. All but one victims have been found – either in the wreckage or in the river.

30TH ANNIVERSARY OF THE PAN-EUROPEAN PICNIC

A special commemoration took place in the Hungarian town of Sopron, close to the Austrian border, in August with the participation of German chancellor Angela Merkel and Hungarian Prime Minister Viktor Orbán at the 30th anniversary of the Pan-European Picnic. The Picnic, held on August 19, 1989 near Sopron, was a demonstration against a divided Europe. More than 600 East German citizens grabbed the opportunity provided by the temporarily open border to flee to the West. The event was an important symbolic milestone leading up to the dismantling of the Iron Curtain and the reunification of Germany. In his speech, the Prime Minister said that "Europe must be reunited time and again, debate after debate, conflict after conflict, day after day,” while Chancellor Merkel stressed that the Picnic became a symbol of how the yearning for freedom can never be suppressed, and how freedom can only be achieved together.

september

HUNGARIANS TRIUMPH AT SPARTATHLON RACE

In September, Hungarian ultra-runners scored a double victory at the 37th Spartathlon, one of the most challenging long-distance races in Greece, winning both the men's and women's competition. The overall winner, Tamás Bódis completed the race in 23 hours, 28 minutes and 37 seconds. Another Hungarian, Zoltán Csécsei finished second. Coming in 8th in the overall race, Zsuzsanna Maráz successfully defended the women's title she won last year, by clocking 27 hours, 15 minutes and 12 seconds.

This most famous ultramarathon race – from the Acropolis in Athens to the statue of ancient Spartan King Leonidas in the center of Sparta in southern Greece – has been held since 1983 and Hungarians have traditionally done well. The first Hungarian victory was recorded in 1991 when János Bogár won the overall race while Szilvia Lubics won the women's race three times.

HUNGARIAN OPPOSITION MAKES HEADWAY IN MUNICIPAL ELECTIONS

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INNOVATIVE HOMEBUILDING CONTEST IN SZENTENDRE

In July, almost 400 university students from eight countries gathered in Szentendre, north of Budapest, to build prototype houses as part of the Solar Decathlon Europe 2019 contest, an international competition that challenges collegiate teams to design and build houses powered exclusively by renewable energy sources. The winner was the French team ‘habiter 2030’ whose project is aimed at renovating the many 100-year-old terraced houses found in France to reduce the energy consumption of these buildings and make them sustainable and comfortable dwellings for the elderly. The jury based its decision on ten features: architecture, engineering design and construction, energy efficiency, communication and public awareness, urban integration and added value, innovation and viability, sustainability, comfort conditions, dwelling functionality and energy balance.

december

CHRISTMAS SHOPPING HELPS RETAIL TRADE TO NEW RECORD

october

Scoring its biggest victory in a decade, Hungarian opposition parties conquered the capital Budapest in municipal elections held in October as their candidate, 44-year-old Gergely Karácsony ousted incumbent István Tarlós, backed by the ruling Fidesz party. In addition to snatching the mayoral post from Fidesz, opposition forces – which supported a joint candidate in a large number of voting districts nationwide – also won 18 of the 23 district mayor positions in the capital. Opposition candidates were also elected mayor in a number of large cities while Fidesz remained the strongest party in rural areas.

At a turnout of 51.47%, Gergely Karácsony received 50.86% of the votes in Budapest while István Tarlós got 44.1%. “This victory is about making Budapest green and free," Gergely Karácsony said, adding that “the new leadership will steer Budapest from the 20th to the 21st century and back to its historically rightful place, Europe.”

july

november

HUF 190 BILLION PUSKÁS AREANA INAUGURATED

Hungary’s new national football (soccer) stadium, the Puskás Arena was officially inaugurated this November. The 68,000-seat facility cost Hungarian taxpayers HUF 190 billion (some EUR 610 mn), which makes it one of the most expensive soccer stadia in the world. A football benchmark study

by KPMG suggests that that only four recently built facilities cost more per seat: Tottenham’s multipurpose stadium in London and three stadia in Russia.

Comparable in size (67,703 seats), Wanda Metropolitano, the new home of Atlético Madrid was completed for just a little over half of the cost of the new facility in the Hungarian capital. The Puskás Arena was built on the place of the former national stadium completed in 1953 and later named after the legendary Hungary and Real Madrid player Ferenc Puskás. At the inauguration match on November 15, Hungary lost 2-1 to Uruguay.

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Hungarian retailers likely closed the year with record sales: December consumption was expected to reach HUF 1,200 billion, well above predictions, according to the Hungarian news agency MTI. The last weekend before Christmas saw bigger crowds in shopping malls, markets and Advent fairs than ever before. The parking lot of one store even had to be closed because there was no room for more shoppers. The record performance also surprised the market players.

No final figures, yet, but György Vámos, Secretary General of the National Trade Association, told the daily ‘Magyar Nemzet’ he was certain that following the HUF 1,141 billion spending in December of the previous year, household spending would exceed HUF 1,200 billion in December 2019.

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Qurated for Business and Inspiration

The Etyek wine region provides ideal conditions to grow Pinot Noir

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02-03 YEAR IN PICTURES 05 ON THE RECORD 06-07 COMPANY BRIEFS 08-21 CROATIAN FOCUS

Interview with Croatia’s Minister of Foreign and European Affairs, Gordan Grlić-Radman; interview with the Croatian Ambassador to Hungary, Mladen Andrlić; Hungarian-Croatian Section of the Hungarian Chamber of Commerce and Industry; OTP banka; Plinacro; Orbico; Croatia Tourism; Jana 22 WITTYLEAKS by the Ambassador of the Philippines

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Qurated for business and inspiration 26 BUSINESS Circular Economy Summit 27 ANALYSIS The renewed Kashmir conflict 29 SOCIETY 30-31 WHAT’S ON Concerts, festivals, events and exhibitions in and out of Budapest 32-33 GASTRONOMY Michelin star chef Cristina Bowerman; Kés-Villa-Buda 34 WINE Pinot Noir from Etyek

Diplomacy&Trade will dedicate an upcoming country focus section to Japan, whose diplomatic relations with Hungary date back 150 years. Japan is one of the top investors in Hungary and the amount of corporate investments coming from the Asian country exceeds EUR 2 billion to date. There are about 160 Japanese companies operating in Hungary, providing jobs to more than 30,000 people. The Focus will feature an interview with Japanese Ambassador to Hungary Kuni Sato on issues ranging from economic relations (including trade and investment) to political, social and cultural ties. It will also include articles on developments in the operation of JETRO (Japanese External Trade Organization), Shokokai (the organization representing Japanese investors in Hungary), the Tokyo office of the Hungarian export promotion agency HEPA and several Japanese companies present in Hungary.

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2019 was an ominous year for many in the business and political world as the global trade war led to signs of recession in Germany, Hungary’s largest investor. 2020 promises more of the same as the impeachment trial of President Trump and the upcoming US presidential election will surely lead to more uncertainty with international repercussions.

In this first issue of 2020, we recall 2019 through pictures of multiple national and international events affecting Hungary – from local elections with surprising results, to international successes for Hungarian culture and sports, to the tragedy of Korean tourists killed in a boating accident on the Danube.

The focus country this issue is Croatia, Hungary’s southern neighbor that holds the rotating presidency of the European Union for the first half of 2020. The Croatian Minister of Foreign and European Affairs, Gordan Grlić-Radman, himself a former ambassador to Hungary, and the current ambassador, Mladen Andrlić interpret for us the Presidency’s slogan – ‘A strong Europe in a world of challenges’ – and speak highly of the growing trend of economic relations between the two countries that share several centuries of common past.

Our international affairs analyst scrutinizes the 70-year-old NATO, which he believes is not going out of business in the years to come as both the USA and the smaller members have a vested interest in holding the alliance together.

The business page this month features the first Circular Economy Summit where Hungarian organizations and corporate entities signed an agreement with the Dutch Circular Hotspot to implement the experience of the pioneers of this movement in the Netherlands.

Our WittyLeaks column is authored by the Ambassador of the Philippines who recalls her Murphy’s Law travel adventures to the neighboring countries where she is also accredited.

In gastronomy, we feature Cristina Bowerman, the Italian-American Michelin star chef who was the star guest of the recent Italian Gastronomy Week. We learn how her Italian cuisine is ‘contaminated’ by her international travels and readings.

On behalf of all of us here at Diplomacy&Trade, I wish you a Happy and Prosperous New Year for 2020!

Michelin star chef Cristina Bowerman in Budapest

TAMÁS VARGA, PÉTER SZŐKE, DEPOSITPHOTOS.COM

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on the record

KOREAN DELEGATION VISITS CENTRAL BANK

DANUBE COMMISSION: PROTECTING A COMMON TREASURE The Danube Commission, founded in 1948, held its 93rd session at its Budapest headquarters in December.

The meeting was chaired by Croatian Minister of Foreign and European Affairs Gordan Grlić Radman in his capacity as President of the organization.

The minister reflected on the Commission’s work in the past year, underscoring the organization’s importance in the development of Danube navigation and participation in the EU’s programs and projects. The session saw a number of decisions being reached on the functioning, activities, additional optimization and modernization of the Commission.

Radman Grlić Radman has been presiding over the Danube Commission since June 2017, after being elected president at its 88th plenary session.

Following the session, Hungarian Minister of Foreign Affairs and Trade, Péter Szijjártó addressed the participants. He stressed that the Danube is not only a 2,850-kilometer-long river but also a connection point for the countries that it runs through. The Danube is a common treasure, which permits environmentally friendly transportation, is a source of energy and water, and plays an important role equally in tourism, the economy and agriculture, he added.

Members of the Danube Commission include representatives from Austria, Bulgaria, Croatia, Germany, Hungary, Moldova, Slovakia, Romania, Russia, Ukraine, and Serbia.

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LAJOS SOÓS/MTI, DEPOSITPHOTOS.COM, MNB.HU, TAMÁS RETKES

V4 CAPITALS SIGN JOINT DECLARATION The Mayors of Bratislava, Budapest, Prague and Warsaw signed a declaration (‘Pact of Free Cities’) at a meeting hosted by Budapest mayor Gergely Karácsony in December. The document stresses, among other things, that the leaderships in the capitals of the Czech Republic, Hungary, Poland and Slovakia (the Visegrád Four countries) respect their historical ties and common cultural heritage and take note of these cities' regional role in driving innovation, economic growth and welfare. The cities are “drawing from the shared history of communist oppression, pro-democracy movements, 30 years of social and economic transformation, and 15 years of EU membership” and they stand “firmly by the values of human dignity, democracy, freedom, equality, rule of law and human rights as enshrined in the EU Treaties.”

The mayors commit themselves to sharing their “best practices in smart, evidence-based, and socially-aware city-management, especially in the field of sustainable city planning, climate protection, social inclusion, housing, transportation, the digital agenda or any other field of mutual interest” as well as to “coordinating efforts to advocate city-tailored solutions in the European policies, especially in the Cohesion Policy, European employment, environmental, climate, energy, transport and economic policies, as well as during the legislative construction of the European Pillar of Social Rights.” w w w . d t e u r o p e . c o m

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On the 30th anniversary of the establishment of diplomatic relations between the Republic of Korea and Hungary, Hungarian central bank (MNB) President György Matolcsy received a delegation headed by his South Korean counterpart.

The MNB President underlined that technological progress and, on a related note, the future of money were key global challenges central banks had to face. To tackle these challenges, central banks would require new approaches in long-term sustainable economy and joint thinking as well as cooperation. In addition to professional and economic relations, Matolcsy believes culture also plays a crucial role in the Korean-Hungarian partnership, and thus, he expressed his hope that the range of cultural events might be widened further in the future. As a symbol of strengthening relations between the two countries, he also presented a unique plaque of a commemorative coin to the Korean delegation, featuring the mythological symbols of particular importance in the two nations’ culture: the Hungarian Miraculous Deer and the Korean three-legged crow with the representation of the Sun, the samjogo, in addition to the Hungarian and the Korean flags.

Governor Juyeol Lee said he believed that successful economic cooperation between the two countries was well illustrated by the fact that the Republic of Korea became the largest investor in Hungary in the first half of 2019, which was the result of the traditional cultural connections between the two countries, in addition to the economic environment.

STRONG TOURISM FIGURES IN THE HUNGARIAN CAPITAL October was the fastest growing month of 2019 in terms of guest arrivals and guest nights in Budapest, an analysis by the Budapest Festival and Tourism Center (BFTK) notes.

Sales of commercial accommodation in Budapest were close to HUF 25 billion. For the first time in many years, not only lodging revenues have increased significantly, but also the number of visitors, the Hungarian news agency MTI quotes the analysis.

In Budapest, guest arrivals increased by 5.5% and guest nights by 6.3%. According to the analysis, the most significant increase was in foreign visitors: in October, 372,068 foreigners visited the city and the number of overnight stays was 862,427, the former showing an increase of 8.3% and the latter of 9.6% compared to the tenth month of the previous year. In the meantime, the number of visitors from within Hungary continued to decline.

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February

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Cuba

National day

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Australia

National day

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New Zealand

National day

15

Serbia

National day

16

Lithuania

National day

23

Japan

National day

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Estonia

National day

25

Kuwait

National day

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Egypt

Independence day

RENOWNED HUNGARIAN HISTORIAN PASSES AWAY

Széchenyi Prize-winning historian Mária Ormos passed away on December 8, in her 90th year.

A regular member of the Hungarian Academy of Sciences, a professor emerita of the Department of Modern History at the Faculty of Humanities of the University of Pécs, she was a renowned researcher of Hungarian and universal history of the 20th century.

Mária Ormos was born in Debrecen in 1930. She conducted her university studies in Debrecen and Budapest, and she graduated in 1952, in Debrecen, as a teacher of history and Hungarian language and literature.

From 1953, she worked as a university assistant professor first in Debrecen and then in Szeged. In 1957, she was removed from the József Attila University in Szeged by disciplinary action as she opposed retaliatory measures following the 1956 uprising and refused to testify against her colleagues. From 1957 to 1963, she worked as assistant archivist, elementary school teacher and then lexicon editor. From 1963 to 1982, she was a researcher at the Institute of History of the Hungarian Academy of Sciences, then a senior fellow. Between 1984 and 1992, she was Rector of Janus Pannonius University of Pécs. She was Professor Emerita since 2001.

Mária Ormos’ research area was the 20th century history of Europe and Hungary until 1945. PhD degree holder in 1968, Doctor of Science in 1980, she became a correspondent member of the Hungarian Academy of Sciences in 1987, a regular member in 1993.

HUNGARIANS' FAVORITE TRAVEL DESTINATIONS The Hungarian air ticket portal repjegy.hu conducted a survey among the Hungarian public this fall as to what destinations respondents would prefer to travel to. This is the fourth time this survey has asked tens of thousands of internet users: “If you could travel anywhere in the world, what place would you choose?” Based on the over 40,000 responses received, the Hungarian bucket list is as follows: 1. Bali, Indonesia; 2. Maldives; 3. Seychelles; 4. New York, United States; 5. Havana, Cuba; 6. Sydney, Australia; 7. Los Angeles, United States; 8. Dubai, United Arab Emirates; 9. Miami, United States; 10. Tokyo, Japan.

While in 2018, Bora Bora and New York were ranked first in the list of dream destinations, this year, the paradise archipelago of French Polynesia was not ranked in the Top 10 and the American metropolis was forces off the podium. Hungarians seem to have more exotic desires, so, ahead of the Maldives and Seychelles, most would go to Bali, a popular destination in the Indonesian archipelago.

Surprisingly, there is less and less presence of European cities on the wish year by year. Eternal favorites like Rome, Paris or even Barcelona were in the forefront in 2018 and 2017. This time, however, no nearby major city was among the top 10 destinations.

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­company briefs

SUSTAINABILITY CONFERENCE AT BUDAPEST AIRPORT

Magyar Telekom, the leading Hungarian telecommunications service provider has announced that it has reached an agreement with the trade unions on a headcount reduction and wage increases at the company in 2020.

The company agreed with the trade unions on the termination of the employment relationship of some 450 employees, with the majority of the terminations expected to be carried out in the first quarter of 2020. Severance expenses related to the headcount reduction are estimated to be approximately HUF 4.9 billion, the majority of which will also be accounted for in the first quarter of 2020.

A report by the company states that in order to maintain wages at competitive levels, pursuant to the agreement with the trade unions, from April 1, 2020, nonmanagerial employee salaries at Magyar Telekom will rise by an average of 5%.

These measures, coupled with other agreed modifications to the employee remuneration structure, are expected to result in about 3% savings for 2020 in parent company employee related expenses – excluding severance expenses – compared to 2019.

OTP BANK COMPLETES SLOVENIAN ACQUISITION Hungary’s largest bank, OTP Bank Plc. has announced that the financial closure of its Slovenian transaction has been completed. As a result, OTP Bank has become 99.73% owner of SKB Banka, the Slovenian subsidiary of Societe Generale Group and other local subsidiaries held by SKB Banka.

With a market share of nearly 9%, SKB Banka is the 4th largest bank on the Slovenian banking market and as a universal bank, it has been active in the retail and corporate segment, as well. With the acquisition of the Slovenian bank, OTP Group is already present in 12 countries in the Central and Eastern European region.

What can we do to reduce the carbon dioxide emissions of commuting to the airport? What are the alternative, sustainable ways of doing it? How can the ecological footprint of a passenger or airport staff member be reduced? These were among the questions that Budapest Airport, the operator of Ferenc Liszt International Airport, sought to answer, with the help of transport development experts, at the international conference of the EU project ‘Landside Airport Accessibility’ (LAirA), held early December at Terminal 1 of the Ferenc Liszt International Airport.

A report by Budapest Airport says environmental protection has numerous aspects relating to the way people access airports; tens of thousands commute to airports by road on a daily basis. To reduce the energy consumption and the environmental pollution resulting from this, the habits of passengers and airport staff members need to be changed, and other possible developments must be considered. As part of sustainable operation, Budapest Airport pays special attention to the accessibility of the airport, from an environmental and infrastructural aspect. These efforts fit in well with the development concepts of the partners participating in the ‘Sustainable airport accessibility’ project, the aim of which is to aid the integration of intelligent and low-emission transport solutions into the daily commute to urban airports.

As part of the project, Budapest Airport conducted a survey of passengers and employees last year. The results revealed that 60% of staff commute to work by car. To reduce the environmental pollution resulting from this, the airport operator developed a mobile application together with a Hungarian ride sharing service provider, whereby employees can share their trips with each other, and thus reduce the environmental burdens of their commute to work.

Using the information and the international best practices gathered in the course of the LAirA project, Budapest Airport also formulated its own, comprehensive mobility strategy. It includes measures like increasing the number of chargers for electric vehicles available around the airport. The airport operator also provides 15 dedicated parking spaces for the users of the MOL Limo car sharing service, with six charging stations to be installed during the summer of 2020.

The Q3 models are Audi Hungaria's first hybrid cars.

In the body shop, a new floorboard is installed in the car, which secures the battery during assembly.

In the assembly hall, three new workstations were integrated, where special e-components are built into the car: a 12- and 48-Volt system, a 48-volt lithiumion battery and a DC / DC converter that connects the 48-Volt main on-board electrical system with the 12-Volt sub-electrical system.

The employees were prepared for dealing with high-voltage technologies. They have learned and deepened the MHEV-specific processes and e-vehicle technology. As a result of the expansion of skills, the employees were trained to become e-skilled workers and e-specialists. industries. As part of a major investment, Messer commissioned its third air separation unit in Hungary at the MOL site as recently as 2017.

Messer, the largest family-run industrial gases specialist worldwide, has been one of the leading industrial gases manufacturers in Hungary for 30 years. In the past three years, Messer has invested EUR 37.4 million in the expansion of its Hungarian operations. Messer is the market leader in the Hungarian on-site sector with 21 gas production facilities and plants currently operating at the sites of twelve major customers.

Earlier, Messer installed two new nitrogen generators in the Hungarian towns of Dunavarsány and Hatvan.

A third one is under construction. The capacity of the carbon dioxide field in Ölbő, Hungary, has been tripled in the past two years through the construction of another two CO2 plants to meet the growing demand.

The total production capacity of the three plants is 120,000 tons of carbon dioxide per year.

MESSER BUILDS PLANT FOR MOL IN HUNGARY Messer Hungarogáz Ltd., member of the Germany-based supplier of industrial gases Messer Group GmbH, has signed a contract for the construction of a new on-site facility with MOL Petrochemicals, a member of Hungary's MOL Group.

A statement by the Messer Group says that the plant will supply nitrogen and instrument air for a new polyol complex in the northeastern Hungarian town of Tiszaújváros, due to go into operation in 2021.

With approximately 14,500 standard cubic meters of nitrogen and 27,000 standard cubic meters of instrument air per hour, it will be one of Messer’s larger on-site facilities in Southeast Europe. Polyol is the basic material for polyurethane foams, which are used as versatile polymer products in the construction, automotive, packaging and furniture

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AUDI HUNGARIA, DEPOSITPHOTOS.COM, GOOGLE MAPS, GYŐZŐ DÓSA/BELOVED.HU, MESSER.HU

Audi Hungaria has begun serial production of the Q3 and Q3 Sportback models with Mild Hybrid Electric Vehicles (MHEV) powertrain in Győr, NW Hungary. Both models feature a 1.5-liter TFSI engine (also made in Győr) in collaboration with a 48-volt on-board system and a Riemen-StarterGenerator (RSG). Previously, the production line was prepared for the production of the hybrid models and the e-competencies of the staff was trained.

Chairman of the Board of Directors of Audi Hungaria Co. Ltd., Alfons Dintner is quoted in a press statement by the company as saying that “the electric era has arrived at Audi Hungaria in every area. After our engine production, we also electrified our vehicle production. We are proud that our Q3 and Q3 Sportback models with MHEV technology are writing history: they are the first ones with electric powertrain in Hungary. We have built up the competencies in electro-mobility for their manufacturing, which has enabled our company to anticipate the challenges of the future.”

MAGYAR TELEKOM REACHES AGREEMENT WITH TRADE UNIONS

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AUDI STARTS MILD-HYBRID CAR PRODUCTION IN GYŐR

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c­ ompany briefs K&H RECOGNIZED AS BANK OF THE YEAR IN HUNGARY

French company Suez is expanding its water purification membrane factory in Oroszlány, west of Budapest with an investment of HUF 9.6 billion, adding 85 new jobs to its current staff of 1,200.

As the Hungarian Minister of Foreign Affairs and Trade, Péter Szijjártó stressed at the announcement of the investment in Budapest, the products of the Oroszlány plant are used worldwide, including in UN peacekeeping missions and many NATO operations. He added that the Hungarian government will subsidize the expansion project with HUF 1.7 billion.

Yuvbir Singh, the president and CEO of Suez's Hungarian subsidiary, Suez Water Technologies and Solutions Hungary Ltd., said the 35% expansion in the Oroszlány plant, set up in 2002, is necessary because it has reached its capacity limit after several upgrades.

Suez Water Technologies and Solutions operates nearly 200 plants worldwide and employs 11,000 people. Almost a thousand people work for their Hungarian company, which achieved sales of EUR 160 million in 2017 and EUR 171 million in 2018, respectively. After-tax profit was EUR 25 million in 2017 and EUR 18 million last year.

Through this latest expansion, the Manufacturing Center of Excellence unit of SUEZ Water Technologies & Solutions will become the largest of its kind in Europe, helping the global fight for proper wastewater treatment and credible freshwater supply.

This latest investment is not only helping to develop the output of the county and the Hungarian economy, but contributes to fight for proper freshwater solution of the developing countries as well.

RIJEKA REFINERY RESIDUE UPGRADE PROJECT The Hungarian oil and gas company MOL Plc. has notified the market on the website of the Budapest Stock Exchange that the Supervisory Board of its Croatian subsidiary, INA granted its prior agreement for the Rijeka Refinery Residue Upgrade project and the INA Management Board unanimously approved the investment. The decision was supported both by the Croatian Government and by MOL, the two major shareholders of INA. This investment will increase the overall efficiency and complexity of the Rijeka Refinery and a significant part of the INA Downstream 2023 New Course transformation program, which is aimed at turning INA’s Refining and Marketing segment into a sustainable and profitable business. The total investment budget amounts to around HRK 4bn (around USD 600mn) and includes the Residue Upgrade unit, the reconstruction of existing refinery units as well as a new port with closed petroleum coke storage. The Residue Upgrade unit, using delayed coker technology, will improve the product structure of Rijeka Refinery by increasing the share of profitable white products, i.e. motor fuels and its commissioning is expected in 2023.

MOL Group CEO and the Vice President of INA Supervisory Board, József Molnár, is quoted by the notification report as saying that “this decision proves MOL Group’s commitment to INA. By completing the Residue Upgrade project, we will substantially increase the complexity and the efficiency of the Rijeka Refinery. I firmly believe that the competitiveness of INA’s Refining&Marketing business will further improve once the unit is commissioned and the investment will have a significant positive impact on the company's profitability in the future.”

TELENOR INTRODUCES NEW SERVICE TO DRIVERS In December 2019, the mobile communications service provider Telenor launched Drivey, a smart watch for cars, which includes a small gadget and an associated smartphone app. The company’s press release says that its mobile network possesses a safety function and enables drivers and passengers to simultaneously use several online applications while on the road including navigation, music, video streaming, a Wi-Fi hotspot feature and voice calls.

Using Drivey, drivers can make their older cars smarter. They only need an ODB II port which is available in most cars manufactured after the early 2000s. Following fast and easy connection, the Drivey mobile app shows the driver’s car usage patterns, mileage, fuel consumption, sudden revvings of the engine and powerful brakings, and parking location. It also displays useful preventive information and error messages about the car’s technical condition. It is

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GLOBETROTTER19/WIKIPEDIA, DEPOSITPHOTOS.COM, K&H BANK, MOL GROUP

WATER PURIFICATION MEMBRANE FACTORY EXPANDED

K&H received the ‘Bank of the Year in Hungary’ award for the seventh time from the international finance magazine 'The Banker', a Financial Times publication. In addition to the detailed analysis of financial results and growth and performance indicators, the award procedure also takes into account factors such as the role banks play in the local economy and their innovative and cost-efficient technological solutions. Earlier in the year. K&H has also won the Euromoney ‘Best Bank in Hungary’ Award for Excellence 2019. This is the fourth time that K&H has won both awards in the same year.

“We are very proud of the ‘Bank of the Year in Hungary’ award, which is a testimony to the work of our 4,000 employees and the loyalty of our customers. The award is also the result of the acceleration of our digital transformation efforts, focusing on offering best-in-class user experience across channels, while simplifying its processes and organization. As a result, K&H’s growth continued to outpace the market, supporting the Hungarian economy and delivering superior financial returns. More than half a million of our clients today can sign their documents electronically thanks to their biometric profiles, also 40% of our branches are fully automated for cash services, meaning that clients can use them 24 hours a day, seven days a week. Half of our clients are using their mobile phone apps for their daily banking transactions, which is almost 40% more than a year ago. Today, one in four cash loans we are disbursing is coming from our fully online cash loan service in mobile bank app that we launched this summer. 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,” CEO of K&H Group, David Moucheron said after the award ceremony in London.

Beforehand, K&H received the ‘Bank of the Year in Hungary’ accolade in 2008, 2011, 2013, 2014, 2016 and 2017.

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even possible to set a virtual security fence that is automatically reported to the car owner when crossed. The service is available in two versions: 2G and 4G. An added benefit of the 4G is that Drivey functions as a continual Wi-Fi hotspot in the car up to the data limit included in the Drivey plan. Telenor’s new solution is an ideal tool for consumers and businesses with small vehicle fleets. If the app is used with multiple cars, the position and data of all cars paired to the main app are displayed on a dashboard. The service, launched in the first half of December, is available for a monthly fee. Users receive a car-mountable gadget without an upfront payment. Drivey features a banner encouraging drivers to download the Automobile Club’s new app that enables drivers to easily call the closest breakdown assistance service staff member (‘Yellow Angel’) based on their GSP location data.

7 2020. 01. 14. 14:45

SHARING EUROPEAN CULTURE AND VALUES

INTERVIEW WITH THE CROATIAN MINISTER OF FOREIGN AND EUROPEAN AFFAIRS, GORDAN GRLIĆ-RADMAN

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Long lasting ties

DÁVID HARANGOZÓ, DEPOSITPHOTOS.COM

In 2013, Gordan Grlić-Radman, as the Croatian ambassador to Hungary, told Diplomacy&Trade in an interview that “Croatia has always been a member of the European community culturally and has always considered itself a member of the European community.” That was on the occasion of Croatia joining the European Union in July 2013. Now, he tells Diplomacy&Trade that European affairs have changed a lot since Croatia joined the EU. “Then, one of the main topics was the Euro crisis, now – among others – Brexit and migration are the major issues. In other words, political challenges for Europe come and go, but shared European culture and values stay. Thus, the notion that Croatia was and is a member of the European community is in times of challenges stronger than ever. For example, six years ago, Croatia was just a new member of the EU and now we take

the lead of the Council of the European Union.

In this regard, our European enthusiasm has strengthened. Nevertheless, this does not mean that challenges are less, to the contrary, but I believe that as Europeans who share so much, we can overcome them.”

Grlić-Radman, who was appointed Minister of Foreign and European Affairs in July 2019, points out that “as neighboring countries, Croatia and Hungary have long lasting ties and we have always had very intense relations. Thus, our cooperation has always been very diverse, encompassing many areas of mutual interest. In a speech I recently gave at the National University of Public Administration in Budapest on Croatia's EU Presidency, I expressed my gratitude to Hungary for support in the first half of 2011 when Croatia's accession negotiations with the European Union were successfully completed.

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croatian focus Croatia's accession to the EU opened up additional opportunities for many joint projects, in particular in cross-border cooperation. We have common interests in transport and energy routes, Hungary is our 5th biggest trade partner, more than 650,000 Hungarians visit Croatia every year, our cooperation in defense is excellent.

Last, but not less important, is our cultural cooperation, which is exemplary and we have planned many joint projects for the upcoming period, such as an exhibition on eight centuries of Croatian-Hungarian Fine Arts Heritage. Overall, our relations, in the past and today as part of the European Union, are based on mutual respect.”

A dispute regarding the relations of the Hungarian oil and gas company MOL’s ownership and control of the Croatian oil concern INA is a burden on bilateral relations. The Minister stresses that both sides agreed that open issues like this, should not burden our bilateral relations. “Our position is clear on this, the judiciary should take its course.”

Concrete examples He adds that frequent discussions between the two countries are focused on concrete projects in both the economy and culture, on the care for minorities as well as on improving the quality of life of people in border areas. “In December 2019 alone, we had some very important meetings and agreements. Minister Szijjártó and I met recently in Budapest and signed an agreement of cooperation on diplomatic training. At the same time, our two countries are discussing cooperation on the liquid natural gas (LNG) project in Krk, and less than a month ago, we opened an energy facility in Virovitica as a result of a successful Hungarian-Croatian investment.”

Ministers of the two countries signed the Program for Cultural Cooperation for the period 2019-2021 while the two ministers of defense attended the official opening of the Multinational Special Aviation Program in Croatia. “These are just a few concrete examples of the dynamism of our relationships and a vivid demonstration of our successful cooperation in many fields,” he stresses.

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Many similar interests Gordan Grlić-Radman represents Croatia in the Danube Commission where Hungary is also a member. It is just one example of Hungary and Croatia cooperating on the international scene on a multilateral basis. “Croatia and Hungary belong to the same integrations and organizations, the same regional initiatives, the Danube Commission being one of them. Regarding the Danube Commission, which I preside over since 2017, it is important to emphasize the organization’s role in the development of Danube navigation and participation in the EU’s programs and projects. Each multilateral organization has a particular mandate and Croatia is continuously promoting the strengthening of multilateralism in todays’ complex and challenging world.” As for the EU, he highlights that Croatia and Hungary have many similar interests, such as the enlargement of the European Union. The two countries are in the immediate neighborhood of the Western Balkans and will work together in advocating for a revitalization and strengthening of w w w . d t e u r o p e . c o m

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the EU prospects for Southeast Europe, as well as on making Europe more secure and stable. Croatia holds the Presidency of the Council of the EU for the first time in the first half of 2020 and counts on Hungary as well as all member states to support its Presidency. “Under the motto ‘A strong Europe in a world of challenges’ we will work on four agenda priorities: a Europe that develops, a Europe that connects, a Europe that protects and a Europe that exerts influence,” he adds.

Croatia and the V4+ In addition to bilateral relations with Hungary, Croatia has regular consultations with the countries of the Visegrád Group. According to the Minister, Croatia nurtures its relations with the V4 within the format of cooperation of the Visegrád Group and other countries, known as V4+. This cooperation reflects the efforts to work together in a number of fields of wide common interest, such as energy, infrastructure, economy, migration, security, agriculture, cohesion policy and regional development. “Specifically, we are cooperating under the V4+ Western Balkans framework, to which we attach great value. In particular, the current objective of our regular consultations with the V4 is on the topics of mutual and overlapping interest: long lasting stability of South East Europe as well as support for the Western Balkans region on its EU accession path. Nevertheless, enlargement is not only in the best interest of Croatia and the V4, but also in the best interest of the EU in general and of vital importance for each and every country in

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the Western Balkans.” For that reason, Croatia welcomed the fact that maintaining a political dialogue with the Western Balkans region was in the focus of the Slovak presidency and is in that of the current Czech V4 presidency. In line with that policy of these V4 presidencies, Croatia intends to keep the EU’s enlargement process high on the agenda of the EU institutions. “We will devote particular attention to this topic during our forthcoming Presidency of the EU Council as we plan to hold an EU summit with the leaders of the six Western Balkans countries in May 2020. We look forward to the support from the Visegrád Group and we are optimistic of our further cooperation in order to fulfil our common interests, considering that in such important matters, coordinated action and exchange of views on topics of common interest are of utmost importance,” he points out.

The role of minorities “Our minorities connect us maybe more than anything else. They are gems, which we treat accordingly. Five years after our independence, in 1995, we established an intergovernmental joint committee for protection of rights of Croats in Hungary and Hungarians in Croatia. The committee meets every year to evaluate what has been done in the past year and to plan new projects,” Gordan Grlić-Radman explains. At a joint session held in Zagreb in December 2019, the Committee assessed that great strides have been made in the last three years, with both countries giving sufficient support and allocating

significant financial resources, which are visible in concrete completed projects. The Minister mentions two recent big projects as examples: the student dormitory in Osijek for the needs of the Hungarian community, which was opened by prime ministers Orbán and Plenković at the end of November and the Croatian Education Center in Sambotel opened at the end of the summer.

“Protection of minorities in Croatia and Hungary can be a role model for the rest of Europe.

Hungarians in Croatia and Croats in Hungary have two homelands, and we all share a common homeland, which is the European Union,” he stresses.

Treasuring bonds with Hungary Gordan Grlić-Radman was the Croatian ambassador to Hungary from 2012 to 2017.

Later, he represented Croatia in Berlin before becoming a minister and he still recalls his years in Hungary with kind words. “Some would say that five years is a long period to achieve many contacts and make new friends and partnerships but I have to say that in Hungary’s case, it is not enough. Hungary is full of amazing people with great talent and friends who are fond of Croatia. You have to live even longer here to fully see a country, people and history as rich as Hungary’s are. Nevertheless, I made strong bonds with many Hungarians from different parts of life and I treasure that. I am always happy when I hear Hungarian language, as it reminds me of these productive and pleasant five years.”

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croatian focus

LETTING THE BALL ROLL CROATIA’S ACCESSION TO THE EU WAS A ‘NEW START’ IN RELATIONS WITH HUNGARY

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Four basic goals The first of the objectives of the Croatian EU Presidency is ‘The EU that grows’. “It means that we would like to see the EU growing in a balanced, sustainable and inclusive way.

‘Balanced’ means that we favor a growth based upon a common understanding by all EU member states, and lowering the differences between North and South or East and West. Sustainability is according to our possibilities and not according to our needs, unfortunately, while inclusive means that the growth should tackle all the issues regarded as important by each and every member state,” he explains.

‘The EU that connects’ includes a number of ways but three are crucial from our point of view, he says: transport infrastructure, energy

policy and digitalization – within the EU and with other global actors. “Also, we deal – as much as possible – with issues that connect the EU to the outside world.”

He adds that ‘The EU that protects’ has at least two levels: internally and externally – protecting citizens’ rights throughout the European Union as well as outside the EU. “All this requires further communication.”

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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‘The EU that is open’ means that the Union should be open to its immediate neighbors and also globally.

“It should function in global terms in relation to other global powers and also with different integrations with our neighbors. The EU approach is also of particular importance for countries that are leaning to become member states, the ones that accept the EU rules and objectives for their own benefit and for the better development of the EU as such,” he says.

HUNGARY

CROATIA

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.)

58 USD 29,600 (2017 est.)

68 4.2% (2017 est.)

54 12,030,940 (2017 est.)

75 41 (2013) 103

56,594 sq km 128 4,270,480 (July 2018 est.)

127 0.42% (2018 est.)

160 -0.51% (2018 est.)

221 76.3 years (2018 est.)

87 -1.4 migrant(s)/1,000 population (2018 est.)

150 USD 24,700 (2017 est.)

81 12.4% (2017 est.)

164 4,315,580 125 69 (2013) 72

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In the first six months of 2020, Croatia holds the Presidency of the Council of the European Union with the motto ‘A strong Europe in a world of challenges.’ When elaborating on these challenges, the Croatian Ambassador to Hungary, Dr. Mladen Andrlić tells Diplomacy&Trade that “we are talking about the overall international scene, which is quite trembling nowadays. We are coping with a number of questions with or without full answers. The European Union, which is by far the most secure democratic alliance in European history, is trying to find answers.”

He stresses that the Croatian Presidency is concentrating on the actual situation, keeping in mind the common European interest and, at the same time, the interests of the individual member states as well as those of other global actors. The Presidency focuses on ‘deepening and widening’, “which is the shortest explanation of what each and every country within the EU is dealing with.

By ‘deepening’, we mean the better functioning of the EU itself, internally and externally while ‘widening’ means better communication, particularly with the closest neighbors that are

on the road to EU membership, that is those interested in becoming members and forging stronger relations with the EU.” This would also include the EU enlargement, which is a specific additional task of the Croatian EU Presidency, dealing primarily with the Western Balkans countries and those of the Eastern Partnership. On this issue, Croatia is planning two summits in May 2020.

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croatian focus

Bilateral ties As to how much relations with Hungary have strengthened since Croatia has been an EU member in 2013, Ambassador Andrlić is of the view that “it was a new start in our relations. After almost a century, Hungary and Croatia once again became members of the same community of nations, this time the European Union. Interestingly enough, the Croatian accession talks to become a full-fledged member of the EU concluded during the Hungarian EU Presidency in 2011. Within the European Union, as well as NATO or the Council of Europe, for example, these two neighboring states are enjoying more opportunities to achieve their objectives within this integration structure – in economic, cultural and other terms. It is an improved climate for both of us.”

He mentions cross-border economic cooperation as a fine example. These projects are not of the biggest magnitude but very important for the locals on ‘both sides of the river’, as the Ambassador puts it, referring to the fact that most of the CroatianHungarian border is constituted by rivers of Mura, Drava and Danube over which building bridges is symbolical of EU-supported projects.

so Hungarian tourists may find Hungarian hotels there.” One attraction he mentions is the Advent market: the one in Budapest was Europe’s No.1 in 2018, while the one in Zagreb was voted the best in the previous three years in a row.

Investments With EUR 2.72 billion of investments (1993–2019), Hungary is the 6th biggest investor in Croatia.

Ambassador Andrlić highlights the energy industry as the most important area. “Energy security is of utmost importance, and Croatia and Hungary have a very dynamic collaboration in this field through intergovernmental agreements and corporate activities.”

The Croatian oil company INA has become part of the Hungarian MOL Group. “This cooperation is going well and the past two years have been among the best years of INA ever since this merger started,” the Ambassador notes, adding that there are further plans for this cooperation. He also calls attention to a particular segment between the two countries in the field of energy, which is the liquid natural gas (LNG) terminal on the island of Krk, which will be completed by the end of 2020.

Growing numbers

The role of SMEs

He characterizes economic relations between the two countries as dynamic and intensive. “Given the difference in the size of the two countries’ economies, the trade balance is in favor of Hungary but this is somehow balanced out from the other side by services like tourism. Economic cooperation is successfully implemented in a number of sectors such as trade, investment and tourism. Trade exchange in goods in 2018 reached a record high of EUR 2.3 billion. That trend continued in 2019 as Croatian exports increased by 17,4% compared to same period of 2018 and were worth EUR 376.82 million, while imports amounted to EUR 1.442 billion (+24,9%). All in all, Hungary is the 6th biggest importer from Croatia.

In the first two quarters of 2019, Croatia received EUR 97.6 million from services provided to Hungary, while in the same period, EUR 30.7 million was paid to Hungary for services. In 2018, Croatian income from services provided to Hungary amounted to EUR 449.4 million; while EUR 76.9 million was paid to Hungary. Most of both revenues and expenditures are generated from tourism.

The Ambassador is especially pleased with the growing number of tourists from Hungary. “Around 630,000 Hungarian tourists visited Croatia in the first ten months of 2019. It was 3% of the total number of foreign tourists in that period. Hungary is Croatia's 8th largest tourist market. There are also Hungarian investments in tourism in Croatia,

The Ambassador highlights the importance of small and medium-sized enterprises in bilateral economic relations. “There are already many of them working as contributors or suppliers to to the operations of companies in the other country – forming part of the bigger process, either in Hungary or in Croatia.

So, there is interest on both sides to accomplish bigger projects that these SMEs can contribute to.

One can see effective cross-border functioning when dealing with the certain entrepreneurial activity.”

He mentions as an example that on November 15, 2019, a biomass plant, mostly with Hungarian technology, was opened in Virovitica, just 20 kilometers from the Hungarian border with a dozen people employed in managerial positions – half of them Hungarians and the other half Croats, some of them Croats from Hungary. The idea was born less than five years ago and the actual construction took less than two years. The project is fully co-financed

by Croatian and Hungarian development banks.

“There is a lot of cooperation going on. Not as much as we would like to but these examples show that we can successfully work together,” he points out.

Additional value Some of these projects are supported by minorities living on both sides. Ambassador Andrlić says it is obviously an additional value for both sides contributing to the fact that things are going smoother than they otherwise would. It is not

only the question of language, but also of culture, the issue of living together for centuries in such a fine setting that you can always achieve more.

“Just recently, there was a Croatian Hungarian business conference in Nagykanizsa, SW Hungary, with people from counties on both sides of the river Drava attending. More than a hundred people altogether had the opportunity to get to know each other, as they co-operated on a daily basis on different issues like roads, transport and the sale of goods. I really witnessed a vibrant communication, particularly while listening how these people make the border ‘disappear’ in with their cooperation.”

Cultural relations

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Croatia is well featured on the cultural scene of Hungary. During the Croatian EU presidency, there will be a number of additional cultural events in Budapest just as in other EU capitals as we also try to present our culture over this period. An exhibition about ties between Zagreb and Budapest over the centuries will open in the first days of April 2020 in the Hungarian National Museum, containing pieces of fine arts spanning 800-900 years. Prior to that, there will be another Croat exhibition in Budapest from the works of Miroslav Kraljević, one of the founders of modern art in Croatia, in the late 19th and early 20th century. “Last year, Zagreb w w w . d t e u r o p e . c o m

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held a Rippl-Rónai exhibition and, as reciprocity, a Kraljević exhibition will be in Budapest in midMarch. In January, a very famous Croatian opera

by Jakov Gotovac will be played here and there will also be a very interesting ballet performance ‘Death in Venice’ with well-known and award winning performers. This December, we had a splendid full-house Baroque gala concert at the Italian Institute in Budapest through a collaboration of Croatian and Italian artists, which is now a traditional annual event,” the Ambassador highlights.

Let the ball roll!

“I hope our EU Presidency will support a smooth transition and introduction of a new Multi-annual Financial Framework (for 2021-27). We hope to bring closer the sometimes not so close standpoints of the different EU member states to a more common understanding regarding the priorities of this new seven-year deal. We will try to complete the procedure of this very complex and sensitive issue, which is the backbone of the overall functioning of the EU for the forthcoming period.

I believe all the member states will contribute to this as we are all in the same boat. Our Presidency starts now, so, let the ball roll!” Ambassador Andrlić concludes.

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croatian focus

A HUNGARIAN-CROAT MATCHMAKER HUNGARIAN CHAMBER SECTION, A DRIVING FORCE IN OVER-THE-BORDER COOPERATION

Partnerships “From the Hungarian side, we enjoy serious support from the Hungarian Chamber of Commerce and Industry, the Chamber of Commerce and Industry (CCI) of Pécs-Baranya county and the CCI of Somogy county. In the B-Light project, we have a good partnership with the Baranya County Development Agency. Last but not least, we are in continuous contact with the Consulate General of the Republic of Croatia in Pécs,” the General Secretary points out. He adds that their main Croatian partners are mainly from the Enterprise Europe Network offices in Croatia, for example, TERA Tehnopolis Ltd., but the Section also maintains good relations with the local chambers and the Consulate General of Hungary in Osijek.

Major projects Recently, the Chamber of Commerce and Industry of Pécs-Baranya has had two Hungarian-Croatian projects: I-DARE and EN-EFF. I-DARE focused on the development of dual training and introduction of tertiary systems in the field of mechanical engineering and electrical engineering professions and EN-EFF dealt with the development of a new training concept for energy efficiency.

The Section’s current project, SACHE (‘Smart Accelerators of Cultural Heritage Entrepreneurship’) works with Croatian partners to develop and deliver integrated local development strategies based on tools and approaches that would accelerate creative entrepreneurship within and around cultural heritage. The Hungarian-Croatian Section provides help to the project management to facilitate the cross-border co-operation in these HU-HR projects.

Established in July 2012, the Hungarian-Croatian Section of the Hungarian Chamber of Commerce and Industry aims to foster economic and trade relations between the two countries and serve the economic interests of their entrepreneurs. In addition, the Section is responsible for supporting and lobbying in favor of Hungarianowned companies operating in Croatia and Hungarian companies interested in conducting business with Croatian companies.

Meaningful events The Section is in daily contact with the Enterprise Europe Network (EEN) that helps businesses innovate and grow on an international scale.

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It is the world’s largest support network for small and medium-sized enterprises (SMEs) with international ambitions. The EEN is active in more than 60 countries worldwide, including Croatia.

It brings together 3,000 experts from more than

600 member organizations – all renowned for their excellence in business support. Furthermore, the Section takes part in trade fairs, where its president performs not only protocol tasks, but also represents the partner companies.

According to Mihály Liszácz, the most effective parts of the Section’s activities are the organization and participation at international matchmaking events. The most popular of these events is the Open4Business Conference and International Matchmaking Event organized by the Chamber of Commerce and Industry of Pécs-Baranya and EEN. 2019 was the fourth time companies looking for international partnership met in Pécs to negotiate with their future business partners.

There were nearly 400 meetings by 271 participants from 15 countries. This year, the co-organizer of the Open4Business was the Croatian TERA Tehnopolis Ltd., a joint-venture by the Josip Juraj Strossmayer University of Osijek, the City of Osijek and the Osijek-Baranja County. The activities of the Center focus on the development of knowledge-based economy implementing significantly improved technologies (products, services and processing), the commercialization of publicly funded research conducted by the Josip Juraj Strossmayer University of Osijek, and the protection of intellectual property rights.

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Joint project plans The Section is striving to expand the circle of its membership in the whole country not only near the Croatian border. “At the same time, we continue to represent enterprises on international platforms and assist in finding Croatian-Hungarian business partners. The Chamber of Commerce and Industry of Pécs-Baranya has submitted three project proposals of Hungarian-Croatian dimension that have not yet been evaluated. The main themes of these are sustainable tourism and women entrepreneurs. We hope that they will be successful and we can promote and manage these future projects,” the General Secretary concludes.

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“The above mentioned projects (I-DARE, EN-eff, SACHE and B-Light) are supported by the European Union. Many of the trade fairs (Viro-Expo) and matchmaking events (Open4Business, LEAP Summit Zagreb) are also EU related. The activities with the EEN to find business partners works not only within the EU, but all over the world in more than 60 countries,” Mihály Liszácz points out.

There also are, of course, events of smaller scale involving the two countries. In 2019, the Section co-organized the HU-HR IT Professional Day in the framework of InnoPécs, where the main organizer was the Information Management Innovation Cluster. Another important event was the Tourism Conference in the town of Siklós, where participants from the tourism sector met to discuss the connection and development points in Baranja (Croatia) and Baranya (Hungary) counties.

photos by HUNGARIAN-CROATIAN

The Section was founded by 21 entrepreneurs and now, it has 61 member companies. “We have members from the whole country, however, the dominant participating companies are from Baranya and Somogy counties situated on the border with Croatia. Members include enterprises from various fields like the agrarian and IT sectors, machinery, trade, building industry, etc.,” the General Secretary of the Hungarian-Croatian Section, Mihály Liszácz tells Diplomacy&Trade.

Membership in the Section is beneficial for ventures interested, or already engaged, in cross-border co-operation. One example for such HU-HR projects is the ‘B-Light Interreg V-A HungaryCroatia Co-operation Program 2014-2020’ (“Fostering value added business cooperation between SMEs operating on different sides of the Hungary-Croatia border”). The General Secretary says they use several resources that could help to achieve profitable networking opportunities for the members and find relevant business partners both from Hungary and Croatia.

EU support

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Spectacular prospects Discover new opportunities in the CEE region OTP Bank is the leading bank in Hungary, and its presence has become increasingly pronounced in the CEE region over the years. The Bank offers high quality financial services for more than 19 million clients. Our acquisitions are supported by outstanding profitability, capital strength and liquidity.

otpbank.eu Albania • Bulgaria • Croatia • Hungary • Montenegro • Moldova Romania| • Russia •& Serbia | • Slovakia • Slovenia • Ukraine

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croatian focus group attractive to our clients and a respected partner to all other stakeholders,” he points out.

Attractive financing Many of the OTP branches in Croatia can be found on the Adriatic coast, which is not only frequented

by Hungarian tourists but also likely to have greater economic growth. According to Balázs Békeffy, “OTP banka today has a strong dominance along the Adriatic coast, which comprises our traditional regions. Definitely, it is a great advantage doing business in an economically prosperous region, although, it has specific challenges, since the economic development along the coast dominantly relies on tourism.” He believes that to achieve a healthy portfolio, they must be active in financing multiple industries and therefore their goals are tied to spreading successful operations nationwide. So, the bank is active in providing attractive financing in numerous sectors, from infrastructure and greenfield investments to agriculture and SME sector. “As the fourth largest bank in the country with a heavyweight tradition in retail, our specific challenge is to lead in innovation and provide technologically advanced products and services to our clients and to raise our attractiveness related to customer experience,” he adds.

SUCCESS AND RESPONSIBILITY

OTP’S SHARE ON THE CROATIAN BANK MARKET REACHES OVER 10%

OTP Bank is the largest commercial bank in Hungary and OTP Group is one of the largest independent financial services providers in Central and Eastern Europe. Its Croatian subsidiary is the fourth largest bank in that country with a potential for further growth.

“At our closing event in March 2005, when OTP Bank took over Nova Banka and entered the Croatian market, the Chairman and CEO of OTP Bank, dr. Sándor Csányi stated that OTP Group’s goal was to achieve a 10% stake on the Croatian market. Since then, the economy and the financial sector in the country followed the global trends through versatile developments, challenges and recession. We have continuously strived in two directions: growing organically by expanding our network from regional to nation-wide across Croatia and investing in our continuous development,” the President of the Management Board at OTP banka Hrvatska, Balázs Békeffy, recalls to Diplomacy&Trade.

Simultaneously, OTP Bank kept a keen eye on the banking sector and explored various acquisition opportunities. However, almost a decade passed until they really had the opportunity to undertake the first new acquisition. “Today, we have met the original expectations. Having become the fourth largest bank in Croatia with over 10% of the market share is a success, but also a large responsibility,” he adds.

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Respected financial group In Croatia, Banco Popolare (BPC) and Splitska banka have also been acquired by OTP. When we ask how much these purchases have contributed to the overall OTP results in Croatia, the President of the Management Board says that in a fairly developed and saturated market with a population of only somewhat over four million, acquisitions are crucial for considerable growth. “We managed to complete both integrations within record time and with considerable success by growing our market shares in several key segments. The integration of Splitska banka was the historically largest integration in Croatia, we succeeded in performing it as planned

and with commendations by all key stakeholders.

With both integrations – of Splitska and BPC, we managed to fully utilize the best qualities of the acquired banks while maintaining a sharp and successful strategy as well as the business style and values of OTP banka. We had organizational stamina and business strength for a very speedy post-integration recovery, which resulted in exemplary growth of market stakes.” Besides bank acquisitions, over the years, OTP Bank has successfully expanded its financial group in Croatia, covering leasing, investment funds, insurance, real-estate management and other services.

“Today, OTP Group in Croatia is a respected financial

HIGH EXPECTATIONS International markets are bracing themselves for a global downturn or even a recession in some key markets. Balázs Békeffy is certain that it will affect the Croatian economy, “which I believe is much more stable now than during the crisis eleven years ago. Exports increased significantly while those companies that did not have the right business model went through restructuring or ended in bankruptcy. The OTP banka has a conservative risk policy and its capitalization and liquidity are high which makes it quite resilient for future challenges. However, the good news is that all major Croatian macroeconomists and also the central bank have high expectations for the upcoming year, and I have high hopes that their prognosis will come true.”

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Since December, OTP Group is present in twelve countries, following the purchase of SKB Banka in Slovenia (see news on page 6). “We are very proud of being a part of the fastest growing financial group in this part of Europe. It gives us encouraging confidence and great opportunities to grow together with our sister companies in other countries. The best asset of such a group is in its diversity; we can constantly learn from one another, exchange experiences and mutually inspire driving the progress which is demanded by technological development and societal trends.

We are happy to enjoy the support and trust by our owners and receive regular commendations for our achievements,” the President of the Management Board highlights. Conditions in specific county markets differ, while the operations are influenced by particular market demands and potentials as well as by the size and market position of each bank. “We are happy to fulfil our objectives and the expectations by the shareholders by being among the most successful banks in the Group, having been the second largest subsidiary contributor to the Group’s profit. In the first nine months OTP banka Hrvatska recorded HUF 26.5 billion adjusted after-tax profit, which is a 27% increase on a yearly basis,” he adds.

OTP’s share on the Croatian bank market is somewhat over 10%. Balázs Békeffy says that further consolidation can be expected on Croatian banking market and OTP banka always carefully monitors all the opportunities. “However, at this moment, we are ambitious to develop our digital capabilities, focusing on product development and servicing our clients with great customer experience. It is a tough competition which demands agile transformation to be among the first to offer the clients accessible and individualized products and tailor-made financial advice. This is our major challenge for another exciting year. I would like to underline that our success was possible only because of my brilliant and diligent colleagues. I am happy and proud to have a chance to share my working time with a great team who exceeds expectations and makes everything possible.”

BANK

A diverse group in tough competition

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LET IT FLOW!

CROATIAN AND HUNGARIAN GAS TRANSMISSION SYSTEMS NOW EVEN BETTER CONNECTED

In August 2018, Croatian natural gas transmission system operator Plinacro began construction of the first compressor station (CS1) on the Croatian gas transmission system. Construction was completed at the end of 2019, and consequently, as of the start of 2020, a firm bi-directional capacity will be provided at the interconnection between Croatia and Hungary, that is, between Plinacro and FGSZ, the owner and operator of the Hungarian high-pressure natural gas pipeline system. In this way, Plinacro meets the requirements of the Regulations of the European Parliament and of the Council that are binding all transmission system operators to enable firm bi-directional capacity at all interconnections. It also enables delivery of gas from the future Croatian LNG terminal toward Hungary and third countries as well as flexibility in the management of existing transmission capacities and their rational increase, pursuant to market demand.

The newly constructed compressor station is the most complex facility in the Croatian gas transmission system. The size of this project, (70,000 m2) was the largest construction

site of any Plinacro technological facility, so far. Considering the complexity of the project, the deadline for the completion of its construction was considerably short, thanks to the dedicated work of Plinacro employees and all external contractors, it was completed within the set deadline.

The compressor station’s power equals to 4.2 MW and its compression capacity is 200,000 m3/h. Its ‘heart’ is made of three compressor units – the Rumanian company Euro Gas Systems S.R.L. (EGS) is in charge of their delivery, installation, commissioning and maintenance. This company was selected as the most favorable applicant in an international public tender. The project is worth around EUR 28 million and is entirely financed from Plinacro´s own resources.

The compressor station is the first large project of an enlarged Plinacro´s investment cycle. By 2023, investments within this cycle, including the investment in the compressor station, should equal around EUR 105-120 million.

Management, maintenance and development of the gas transmission system

photos by PLINACRO

As a national gas transmission system operator Plinacro guarantees safe, reliable and quality delivery of natural gas.

By further system development and focusing on the new international development projects Plinacro ensures the integration of the Republic of Croatia into the regional and European natural gas flows and remains a stable factor in the Croatian gas business.

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croatian focus COMPATIBILITY, ENGAGEMENT AND SUSTAINABILITY ORBICO TO STEP UP AS A STRONG REGIONAL AND LOCAL PLAYER Zagreb-based Orbico Group is the leading distributor for a large number of quality globally known brands ranging from beauty care products through food and non-food products, technical and electrical appliances to pharmaceuticals, toys, textile, cigarettes as well as motor oil products. It has been present on the Hungarian market since 2011. orbico_infografika_a4_flyer_03_nyomdai.pdf

Brand and product management The Business Development Manager describes the different levels of service, which the

company provides to brand owners, by starting with the highest level of added value, that is, full-scale distribution. “Full-scale distribution is the highest level of co-operation between a brand owner and a local business representative company. We can summarize this joint working relationship as brand and product management where we take care of building brand awareness and strengthening the brand equity elements of the partner’s brand besides taking care of excellent in-store and sales execution next to the logistics and operative challenges. We pride ourselves at being a front runner in terms of creating and executing brand focused sustainably profitable strategic plans with our brand and customer partners. We have our strengths in brand positioning, brand equity building, above-the-line (ATL) and below-the-line (BTL) communication campaign planning and delivery, excellence in in-store and sales execution, planogram development and optimization as well as promotional execution.

We operate on a Joint Business Planning basis with both our brand owners as well as our customers to create win-win agreements that keep our business relations strong and sustainable for a long time,” he says.

According to Orbico founder Branko Roglić, the family venture has mastered the art of being flexible and is able to quickly adapt to the wants and needs of the markets in which it operates. He believes that being a family-owned and -operated business also helps with this agility, as well as boasting myriad other benefits. He is also optimistic about the company he founded: “My largest success is that the organization is still growing. It is a long-term organization and I think we will be around for many years to come.”

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Brand positioning and product portfolio Orbico also offers a semi-scale distribution service, which can be best characterized as product management. “We work out the Joint Business Plan with the brand owner together and offer the best possible execution in Hungary for them. The main focus is on the perfect execution of the brand owners’ positioning and product portfolio strategies. Building distribution and improving the quality of distribution are our hallmarks next to competitive activity monitoring,” Gergely Kovács adds.

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Complex services Orbico’s employees are excelling in the area of complex logistic services, which they tackle with the company’s own assets.

Transportation, warehousing, legal and regulatory services, product registration, co-packing, labelling, forwarding locally in Hungary and in the region, all count as the company’s forte. Processes are supported by the company’s own IT systems, Transportation Management Software (TMS) and Warehouse Management Systems (WMS). “Orbico works as a company cluster of 21 countries, which helps us to deliver the highest level of service for our regional or multinational clients.

With this group or cluster approach, we can provide a streamlined and efficient commercial partnership for a geographically, culturally and financially colorful challenge in the Central – Eastern European region. Besides the high-quality level of our service we put great emphasis on the training, engagement and equipment quality level of our employees, which we benchmark against the Western European niveau. Orbico Hungary’s professionalism and the quality of its training is underpinned by the possibility of international moves within its cluster of countries. The J A N U A R Y

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focus on the individual employee’s progress as well as the focus on individualized training lift the company above the region’s average distributors,” Gergely Kovács emphasizes.

The idea of an effective long-term business partnership can be summarized in three words, quoting the idea of László Kerekes, General Manager of Orbico Hungary: Compatibility between the two business partners; Engagement in the bilateral relationship management; and Sustainability meaning sustainable and profitable growth. “CES, the initials of the above three words, is also the acronym of our region: Central Europe South, which makes it easier to remember,” Gergely Kovács adds with a smile.

With all this extensive experience and expertise, Orbico looks into the future with ambitious plans and is looking forward to the contact of new business partners.

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photos by ORBICO

Orbico Ltd., the owner and operator of Orbico Hungary + Orbico Beauty Hungary, is one of Hungary’s leading distributors. As the Business Development Manager of the company, Gergely Kovács explains to Diplomacy&Trade, Procter&Gamble, Shell, Bvlgari, Duracell, Kellogg, Bissel, Bolton and Lavazza are some of the largest brand owners in the world that trust their most precious asset, their brands' handling to Orbico.

The company offers complete commercial and distribution solutions, logistic, marketing and brand management services for a wide range of industries and categories. “We have strategic bonds and long-lasting partnerships with brand owners from the FMCG, electro, beauty, decor, perfume, toy and industrial lubricant categories. Our customers are also well-known market players ranging from multinational – to local retail chains, wholesalers, drugs, pharmacies, independent retail stores, petrol stations, stationeries, DIY chains, e-commerce players and special business-to-business and business-to-consumer sales channel players.”

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THIRD PARTY LOGISTIC PARTNER

We have vast experience in handling complex logistic services. Forwarding, warehousing, labelling, co-packing, inland and regional logistics all count as our strengths. Our processes are supported by our own IT (WMS and TMS) systems.

SEMI­SCALE DISTRIBUTOR

‘Semi-scale distribution’ services focus on product management activities. The main emphasis is on executing the product portfolio and range positioning strategies of our brand owners in-store or B2B sales environment. Distribution building and distribution quality management are our strength always keeping an eye on the competitive environment.

FULL­SCALE DISTRIBUTOR ‘Full scale distribution’ services revolve around brand

management both in terms of planning and executing brand equity building and tracking activities next to the product management and logistic services. Our strengths include planning and executing ATL + BTL campaigns, in-store promotions and building the equity of our partners’ brands in the consumers’ mind.

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Commitment to sustainability

The Croatian oil company INA is now over 55 years old. Over this period, it has greatly contributed to the country’s energy security. In the past decade, it went through further development as part of the Hungarian MOL Group and as a firm committed to sustainability and supporter of the local community.

INA is a signatory to the UN Global Compact as a sign of the company's commitment to sustainability. Sándor Fasimon agrees that climate change is one of the major economic, social and environmental challenges of our time and says that INA is committed to minimizing its environmental footprint and building a sustainable development. “It is one of the fundamental principles of the company’s business and in my opinion, oil industry has to be seen as part of the solution in the development of a low carbon society. INA, as a signatory to the UN Global, is committed to a sustainable way of doing business. We are focused on projects that can contribute to reducing emissions and at the same time, we are developing new businesses, which will enable us to extend our value chain. That implies opportunities in renewable energy sources. For example, we have built two solar power plants and installed around 40 electric vehicle chargers next to INA's retail sites in 2019, with new ones coming in 2020.”

A GUARDIAN OF ENERGY SECURITY

Improving the quality of life Recognizing the importance of investing in the community in which it operates, INA has helped build facilities and participated in numerous cultural, scientific, medical, educational, sports, environmental and humanitarian projects. As regards their policy in this field, the President of the Board stresses that they are focused on children’s needs and “over the years, we have helped upgrade schools, kindergartens and school gyms. Significant funds are donated to Croatian hospitals, which help the most vulnerable groups. Through our Green Belt project, INA is financing environmental projects and contributing to environmental protection. We also regularly support various cultural, scientific and educational projects and INA is a sponsor of many Croatian athletes and national sports associations. Our volunteers, gathered in INA Volunteer’s Club, are leaders in the field of corporative volunteering in Croatia.

We always strive to be an active member of the local community and to contribute to improving the quality of life.

INA IS AN IMPORTANT MEMBER OF HUNGARY’S MOL GROUP

Croatian energy security INA has been involved in exploration and production operations in Croatia and 20 other countries. According to the President, INA – as a vertically integrated company – is strongly dedicated to exploration and production activities.

“We have an experience of over 60 years in these kinds of operations, especially in the Pannonian basin, which is and will remain the key area for our E&P activities. INA is focused on domestic oil and gas production because that way, we are contributing to the Croatian energy security and further ensuring the supply of the market. In recent years, INA has significantly expanded its exploration area in Croatia and – after aqusition of ENI’s share in 11 Adriatic offshore gas fields back in 2018 –, the company

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became the sole offshore operator for the first time in its history. We have plans for further developement of these fields, which will result in new gas production. Our primary goal is to keep our hydrocarbon production, as well as reserves, at levels at least equivalent to the those today.” Internationally, INA sees an opportunity on its traditional markets such as Egypt, where the company has had exploration and production operations for over 30 years. Also, it is monitoring cost-effective business opportunities on other markets, such as Southeast Europe, North Africa and the Middle East.

Decent dividends INA shares were listed at the London and Zagreb stock exchanges for about a decade until 2014. As Sándor Fasimon explains, given the relatively low free float, INA shares were not traded the most actively, but proved themselves to be a stable long term investment, rather resilient to market fluctuation. Also, in recent years, it provided its shareholders with more than decent dividends. In 2018, the biggest dividend ever, HRK 125 per share, was paid (roughly 5% dividend yield), while from its listing, INA shareholders received around HRK 3.5 billion total dividend. During this period, INA constantly provided high level of capital market transparency, with informative and well-structured reporting, often beyond the required level which is recognized by market participants and analysts.

more than USD 1.8 billion and saving INA from bankruptcy. Over the last ten years, INA has been a financially consolidated company, ready for a new investment cycle and has become an important part of MOL Group. “We share knowledge and expertise across the Group on a daily basis and we complement each other in various projects.

The best example of successful cooperation between two companies is a recent decision on investment in Residue Upgrade project in Rijeka Refinery, worth around USD 600 million (see news on page 7). INA’s Supervisory and Management boards made a decision that was supported by both major shareholders, MOL Group and the Croatian government.

This investment is not only significant for INA and MOL but also for the entire Croatian economy in the years to come.

MOL Group steps in The Hungarian oil and gas company MOL took control of INA in 2009. As the President of the Board points out, MOL is one of the largest foreign investors in Croatia and it has been playing an active role in INA’s development since the company became the largest shareholder through investing

photos by INA

Speaking about the greatest achievements of the company over the course of all these years, the President of INA’s Management Board, Sándor Fasimon tells Diplomacy&Trade that for decades, INA has been the leading Croatian energy company, as well as one of the regional leaders when it comes to oil and gas business.

“The fact we remained No.1 for such a long time, not only in business results but also when it comes to investments and contribution to Croatian economy in general, makes us proud. During the 55-year long tradition of INA’s successful operations, we have built a good cooperation with our stakeholders and became the most desirable partner that supports development of local communities in which we do business. Last but not least, we must not forget INA’s contribution to the process of Croatian independence in the 1990s.

Today, INA is a financially stable company, the biggest exporter and the company with the biggest revenue in Croatia and I have no doubt that 15 years from now, we will still be proud of INA and its achievements.”

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croatian focus year, big sport events are organized in Croatia all year round, cultural events in almost every big city in Croatia are tradition and gastronomy and wine is a very popular theme of multiple events.

“I am happy that more and more Hungarians are visiting those events, for example in December one could meet a really large number of Hungarians at the Zagreb Christmas market.

I would like to use this opportunity to invite all readers to plan their trip to Rijeka, which will be the European Capital of culture for 2020.

The program is full of different events, prepared to satisfy all age groups and everything will start with Rijeka carnival now in January.”

Country promoter Ivana Herceg has been the director of Croatian National Tourist Board representative office in Budapest for over a year now. “I enjoy living in Budapest and working as a promoter of my country. It is not a hard task since we are really lucky to have such a beautiful homeland. The fact that Croatia is very well known in Hungary is helpful but almost every day, I face the fact that there are so many unknown places which are just waiting to be discovered,” she says.

Using every opportunity to promote different parts of Croatia, cooperation with the tourism sector in Hungary, especially travel agencies and tour operators, press events, PR activities, destination presentations are – and will stay – her main job activities.

As regards the tools the Croatian National Tourist Board has to further popularize their country among Hungarian travelers, the Director notes that besides regular, ‘classic’ media campaigns, they organized different promotions and presentations, used social networks for promoting not just Croatian destinations, but also different events and activities which people can enjoy while in Croatia. “We also had several press/ study trips for journalists, influencers and travel agents where the focus was not only on the coast, but also hidden parts of Croatia, not well known to Hungarians. Hungarian participants were invited to thematic workshops and B2B events in Croatia in order to meet new partners, experience the new products and make sure their guests will have the high service while staying in Croatia.”

WELCOME IN CROATIA

CROATIAN TOURISM OFFERS MORE THAN THE ADRIATIC COAST

In the first ten months of 2019, Croatia received over 20 million tourists, that is, about five times the country’s population. According to predictions by analysts, this sector is going to contribute to the country’s GDP in growing proportions into the 2020s. One reason for this boom, as the Director of the representative office of the Croatian Tourist Board in Hungary, Ivana Herceg tells Diplomacy&Trade, is that in her country, “there is always something new to explore and experience.”

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When asked about the secret of Croatia’s increasing attractiveness and what Hungarians like the most while holidaying in Croatia, Ivana Herceg highlights that “besides our wonderful sea and coast, I believe Hungarians are choosing Croatia for their holiday destination because they feel welcomed there. Our two countries have long friendly tradition, similar culture, a lot of similarities in gastronomy and all those facts add up as advantages. There is always something new to explore and experience but perhaps, this welcoming feeling is very important. Croatia is also one of the safest countries in Europe, we have really good roads and it is very easy and fast to visit Croatia from Hungary.”

Although, it is the Adriatic seashore that comes to the mind of many people about Croatia, the country has a lot more to offer to visitors. The Director agrees that the coast is the most attractive part of Croatia and it will always be the first reason of visit for most people, but Croatia is “promoting other parts of our beautiful country which are attractive throughout the year. We are proud to say that in 2019, we saw an increase of 30% in the

number of tourists visiting the ‘continental’ parts of Croatia where they enjoy fabulous nature, amazing food and rich cultural heritage.”

Maintaining the favorable trend She highlights that tourism is a very fast changing industry, people are now travelling more than at any previous time, it is becoming a lifestyle for so many people and therefore, there is no simple formula for it. “In Croatia we are trying to improve the quality every year at all destinations, and at the same time, we are trying to keep our authenticity.”

Every region has development strategies, plans and projects which include infrastructure.

A higher quality level is the goal the actors in Croatian tourism are striving for.

“With the new air connection between Budapest and Dubrovnik (established after 13 years) we are happy that more Hungarians will have a chance to explore the southernmost region in Croatia, famous not only because of Dubrovnik, but also there are beautiful islands there such as Korčula, Mljet, Lastovo and the amazing hinterland of Konavle. We will continue cooperation with the Hungarian tourism sector, working together in order to have satisfied tourists from Hungary, who are not just traditional guests, but also dear friends in Croatia,” Ivana Herceg concludes.

Attractions throughout the year She adds that all Croatian destinations are working hard to attract and motivate people to visit them. Besides investing in quality and destination image, it is mostly visible in the number of events organized throughout the year.

Music festivals are attracting more visitors every

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Welcome in Croatia

photos by IVO

The number of Hungarians visiting Croatia is growing. There were more than 3.1 million overnight stays by over 600,000 Hungarian tourists recorded in Croatia in the first nine months of 2019. The Director attributes this trend to the fact that Croatia has been among the most popular destinations for Hungarians for many years now. “Our goal is to maintain this good relation between the two countries. Our strategic goals are to extend the season, to increase the strength of the ‘Croatia’ brand and increase consumption by foreigners visiting our country. In 2019, we experienced the biggest increase from the Hungarian market in April and October, which is a positive development as it shows increased interest in Croatia outside of summer season.”

The year 2019, as a whole set records according to statistics from the Hungarian market. The number of arrivals increased by 3%, while number of overnights grew by 2%. More than 640,000 Hungarians visited Croatia and stayed an average of five days. The most visited destinations were Crikvenica, Vir, Rovinj, Medulin and Poreč.

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FROM THE HEART OF THE EARTH CROATIAN TOURISM OFFERS MORE THAN THE ADRIATIC COAST

Jana emerged 7,000 years ago when nature was completely intact. Hidden at the depth of more than 800 meters, it preserves original life values.

The first encounter of Jana with today’s world occurs at the moment of opening the bottle, when its values become part of us. Due to an extraordinary depth from which it is drawn, under old dolomite rocks, it is characterized by an extraordinary mineral composition in which the ratio of calcium and magnesium is particularly important. On its thousand-year journey from the underground through layers of mineral rocks, Jana became naturally rich with minerals, which gives her a unique and recognizable silky taste.

The state-of-the-art bottling technology enables the natural mineral water to be filled from the depth of 800 meters directly into the bottles without any external influence, maintaining its original natural pureness.

Water contributes to normal cognitive functions, and insufficient hydration results in poor concentration, fatigue and headache. Therefore, proper water intake is a good way of overcoming intellectual challenges. Water contributes to normal bodily functions and thermoregulation, which is of great importance to both professional and recreational athletes. Exercise can result in extreme water loss through sweat, which can amount to more than a liter per hour.

Jana is perfect companion for natural hydration in every situation. One of the best ways to contribute to adequate hydration is to always carry a bottle of Jana with you.

Originally from Zagreb in 1989, GDi has positioned itself as a regional leader in multiple IT fields and has offices in 14 Central European countries. GDi employs more than 250 IT professionals employed in international teams serving customers across multiple continents.

In the coming years, GDi will place great emphasis on the digitization of smart cities and companies with the aim of creating smart technology solutions, or sustainable concepts, through the development of their own high-tech innovative solutions. The owner of the group, Mr. Boran Loncaric, also stated; “In the space between the three seas, the Baltic, the Black Sea and the Adriatic, we are an absolute leader, and in the world “GDi is not just a Croatian company, we are - truly competitive. We are dealing with as 50 percent of our technological solutions for industry and partly for public employees are local in offices abroad. ” services and society. These are popularly referred to today as Smart Industry / Industry 4.0 and the Smart Society. GDi Ensemble software solutions are used to manage the lifecycle of e.g. telecommunications networks and services, energy networks, transport networks and logistics. In addition, GDi is not just a Croatian company, as 50 % of our employees are local in offices abroad. So, we can say that we are also a Hungarian company… so the term “Central European” describes us best. I would like to emphasize - all this thanks to the quality staff who will ensure us successful business with growth in 2030!"

GDi succesfully implemented asset management in a part of MOL group, INA. "The solution directly connected us with end users, Facility Management and service providers in a unique system without paper, signatures and emails.

All information, analysis and reports in all objects are obtained from systems that offer us “Single Point of Truth.”

The system that follows us. " Bojan Zega, Director of Facility Management at INA, MOL Group

Improve your world. www.gdi.net

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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.

OF AIRPORTS AND BEYOND

TRAVEL EXPERIENCES FOLLOWING MURPHY’S LAW

BY MARIA FE T. PANGILINAN, AMBASSADOR OF THE REPUBLIC OF THE PHILIPPINES

However, surprisingly, even most unexpectedly, it is in the short distance flights between Budapest and the five capitals, where I, together with my diplomatic staff who accompanies me in those trips, counted and encountered new kinds of passenger flying experience.

While we normally take the regular airlines, we have come to acknowledge and accept the fact that unforeseen delayed flights happen to all, regardless of budget or regular airlines. The first

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At home in Budapest

time I flew to Vienna from Budapest, and narrowly missed my connecting flight to another capital (which would have meant missing the presentation of my credentials), I decided that future travels for me via Vienna would be less stressful if I was driven to that airport. It seemed to be a very practical solution, despite the additional two and a half hours travel time to Vienna. It seemed easy enough, for my accompanying staff and driver, but we did not bargain for the unexpected vehicular accident or a roadwork, which caused a long detour of at least half an hour. Again, there was the stress of missing the flight and again missing the important meeting, which was the purpose of the trip.

The worst experience my staff and I had was a trip to Chisinau, Moldova to attend the President’s New Year reception. It was winter, and the flight to Vienna from Budapest was delayed for many hours. That meant missing the flight to Chisinau. The driver obviously could not drive us to Chisinau. But we were able to rebook to another flight via Warsaw. We got to Warsaw just in time to catch the plane to Chisinau, which was also delayed. Winter was bad that year, the snow covered airports and streets heavily, while flying conditions were difficult for pilots and passengers. My staff and I were really hoping

Regardless of these experiences that air travelers have to expect, I have come to a bigger realization, which has made my stint here in Budapest meaningful and personal: Budapest has become a ‘home’ to me. After my trips, even from Manila, I have learned to look forward to getting back to Hungary, to Budapest, in particular. And what is more, in the years that I had lived here, I have seen the expansion of the Liszt Ferenc Airport: in 2016, there was just terminal 1 and 2 servicing the passengers and the airplanes –by 2018, terminal 2B was added. I have seen the huge number of passengers arriving and departing the airport, with so many people speaking their various mother tongues. While it gets annoying that there are long queues of people at the airline check-in counters, and as many – if not more – people queuing at the immigration arrival counter, to me, this is proof that inbound tourism in Hungary is booming, as well as outbound Hungarian tourism. Another very welcome feature for many passengers is the presence of shuttle buses from the airport to the center in Budapest that take only half an hour with only two stops along the way. (Two years ago, one had to take the bus, and then underground to the centrum). There is the airport taxi point where passengers can easily take a cab and not be wary of being cheated by taxi drivers.

There is also an airport hotel and a metro line planned to the center which is expected to make life and travel even more convenient, fast and safe for the travelers.

Lastly, I have seen Budapest in all its four seasons on my way to or coming back from the Liszt Ferenc Airport. And this will be forever memorable to me.

and praying to arrive in Chisinau on time since the reception was at 6 pm.

We got to the Chisinau airport as scheduled and we breathed a real sigh of relief. It was getting dark, and we had to get a taxi to take us to the hotel and I had to change my cloth for the reception.

However, when we got to the baggage claim area, our luggage was missing… We waited and waited and had to contact the protocol department about the delay. They reassured that I could arrive an hour late for the diplomatic reception. We made the appropriate complaint, and the assistance desk checked and found out that our luggage were left behind in Budapest. Not only was I going to be late for the President’s Reception, I also had no proper clothes to wear...

I missed the Reception. First, the traffic from airport to hotel was literally crawling because of the icy road conditions, which meant an additional hour delay. Second, it would have taken at least thirty minutes to dress for the formal occasion. To arrive at the end of any reception, especially one hosted by the President, would be shameful and very embarrassing. Third, I had nothing appropriate to wear. The confluence of circumstances was simply too much.

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New kinds of experience

I managed to attend the official meetings for the next day, as I had brought along extra clothes in my carry-on luggage. My staff member did not, and so, she had to buy some clothes since she had to accompany me in my meetings. We got our suitcases on the third day – just before we were about to leave Chisinau…

I have cited here only the more unusual experiences. (I often banter with my staff that whenever we fly together, our flights will not be unexciting, and that the next time around should be hassle-free.)

photo by BUDAPEST

I am a career diplomat of over 30 years. In the course of my life in the foreign service, whether attending conferences, or going to and from postings, I have become quite acquainted with airports, seaports, train stations, bus stations, taxi stands and shuttle buses. Before my posting here in Hungary, I had, like any other traveler, my share of delayed flights, of missing my connecting flights and having to stay overnight in a hotel, of missing my luggage, and once, not recovering my luggage, at all. I had my share of filing claims for delayed flights or broken suitcases, or missing luggage – which were, thankfully, acted upon by the airlines. (Those stressing events at least happened in a space of ten or so years).

But since my arrival here in Hungary in early 2016, the frequency of such experiences increased! While I am the resident Philippine ambassador to Hungary, I am also accredited as non-resident ambassador to six other countries: Bosnia and Hercegovina, Bulgaria, Moldova, Montenegro, Romania and Serbia.

After presenting my credentials to Hungarian President János Áder, I also had to present my credentials to the six presidents of the other respective countries, and mostly, I had to fly to the capitals or drive crossing the border (in the case of Belgrade, Serbia). And in the space of four years, I also had to make follow-up visits from Budapest to the other capitals within a year.

While I had no untoward experience with the border crossing to Serbia (except the usual long queues), my airport and airline experiences followed Murphy’s Law. It is really noteworthy that my long-haul flights to and from Manila had been uneventful, with air and ground crew being very polite and helpful, and delayed flights were almost rare. My airport transit stops, although long (at least four hours), were spent half sleeping, eating, duty free shopping, texting, calling, reading.

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travel

QURATED FOR BUSINESS AND INSPIRATION QATAR – A MODERN HUB WITH DEEP CULTURAL ROOTS

Qatar, the world’s largest liquid natural gas (LNG) exporter, has been the most internationally recognized Arab country recently, especially in terms of tourism. For instance, Forbes magazine mentioned Msheireb Downtown Doha's careful attention to cultural preservation which makes the Qatari capital feel more authentic, while The New York Times (NYT) cited futuristic designs and architecture of Qatar’s world famous skyscrapers as one of the main attractions for visitors with the National Museum in the special mentions list.

A top travel destination As the Qatar National Tourism Council puts it “we are an exceptionally accessible destination being the most open country in the region with our visa waiver program for over 90 nationalities, as well as flight connectivity through the award winning Qatar Airways, with direct flights to over 160 destinations worldwide. Furthermore, Qatar is home to state-of-the-art venues, an exceptional plethora of award-winning hospitality options, and thriving growth sectors in healthcare,

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Culture, sports and shopping Qatar has a growing hospitality sector with 128 hotels and hotel apartments offering nearly 27,000 rooms, while 108 hotels and hotel apartments are in the pipeline as their properties are under development. Visitors are offered programs

you on a fast and twisty bumpy ride across the ocean waves. Those in for calmer activities can indulge in kayaking on the mangrove waters in the natural reserve of Al Thakira, immersing themselves in the ultra-rich biodiversity of the area. Of course, dhow cruises on a traditional boat of the Middle East is also a popular option. Those favoring secure land under their feet, the Doha Golf Club, with an 18hole championship course as well as a 9-hole floodlit academy course, putting and chipping greens, offers world class practice facilities.

As for shopping, Qatar offers traditional and modern facilities. Located in the center of Doha, Souq Waqif (‘the standing market’) is a marketplace noted for selling traditional garments, spices, handicrafts, and souvenirs.

It is also home to dozens of restaurants and Shisha lounges. It is often perceived to be the only lasting area in Doha that retains an authentic feel notably in reference to its commerce, architecture and culture. Other facilities, as hotels.com puts it, include “shops stuffed in gold jewelry from floor to ceiling, fierce falcons for sale, a snow-coated indoor play park… these are just a few of the eye-catching discoveries to stumble upon while shopping in Qatar's capital.”

in the framework of Heritage, Arts & Culture; Beach and sports activities as well as Modern urban hubs: shopping and dining.

Further on the museum front, a place worth seeing is the Museum of Islamic Arts, which is influenced by ancient Islamic architecture, yet, has a uniquely modern design involving geometric patterns. It is the first of its kind to feature over 14 centuries of Islamic art in the Arab states of the Persian Gulf. The museum is built on an island off an artificial projecting peninsula near the traditional dhow harbor. A purpose-built park surrounds the edifice on the eastern and southern façades while the western and northern façades are marked by the harbor showcasing the Qatari seafaring past.

Besides watching sports events, the Qatari population is encouraged to participate in more sporting activities by conceiving events like National Sports Day, which is to promote and encourage a healthy lifestyle among all Qatar’s residents. Taking advantage of the seaside, locals and visitors alike are offered various activities, including scuba diving, kitesurfing and parasailing. For those wishing to go fast but stay closer to water, banana boating is offered as excitement, an adrenaline-pumping thrill with family and friends as a speedboat – in the shape and color of a banana – pulls J A N U A R Y

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education, sports, urban planning and development, arts and culture and oil and gas to name a few. Qatar sets itself apart as a modern hub with deep cultural roots, where visitors able to enjoy authentic experiences and curated programs outside the conference hall.”

Apart from Qatar being in the Top 15 travel destinations by Forbes magazine, the Council highlights another five facts about Qatar as important characteristics: its per capita GDP figure is the highest in the Arab world and the second highest worldwide, as indicated by the CIA World Factbook; it is ranked as the safest country in the world (source: Crime Index for Country 2019); hospitality guest experience in this country is the highest in the Middle East, according to the ‘Olery Guest Experience in the Middle East Report 2018’; it has subtropical desert climate with year-round sunshine and mild winters; and Qatar also boasts making sports history by being the first Middle Eastern country to host the FIFA World Cup.

photos by TAMÁS

The international press likened the new futuristic Qatari National Museum to flying saucers and origami flower after its opening in the spring of 2019. The structure was inspired by a desert rose native to the Middle East, designed by world-famous French architect Jean Nouvel.

Built for more than ten years and spread over 40,000 sqm, visitors can walk one and a half kilometers along its halls, practically moving all their senses to discover the sights in the building the NYT calls "a sprawling expanse of interlocking tilted circular discs.”

Those who wish to enjoy culture and recreation in an innovative interpretation of the region’s architectural heritage should visit the Katara Cultural village with its purpose-built development’s impressive theaters, galleries and performance venues that stage a lively year-round program of concerts, shows and exhibitions. Visitors can also find other recreational attractions, including top class restaurants offering a variety of cuisines, and a spacious, well-maintained public beach with water sports. Visitors will also find much to enjoy over a nighttime stroll along the promenade, with its expansive views of Doha’s skyline, as well as a rich array of seaside food stalls and markets.

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business

REDUCE, REUSE, RECYCLE HUNGARY PARTNERS WITH HOLLAND TO BUILD CIRCULAR ECONOMY OF THE FUTURE

Transitioning to a circular economy is one of the leading business opportunities of our era. Although the core concept is not yet thoroughly understood or followed by most economic actors, the use of this model can increase the resilience of the world economy and facilitate the achievement of the Paris Climate Change Agreement and the United Nations Sustainable Development Goals. Experts estimate that circular economy could generate business opportunities worth USD 4.5 billion worldwide by 2030.

propagate the best international examples of circular economy initiatives, related knowledge and tools, share domestic experiences and foster the work of governments. Along with the ceremonial signatories, 80 companies and organizations have already joined the Hungarian Circular Economy Platform.

“I am proud that through cooperation with the Holland Circular Hotspot, we are gaining access to leading international know-how, which will help put the circular economy on a more dynamic path in our country. With the involvement of business, governmental and scientific as well as professional and social organizations, we can achieve our goal: a sustainable economy,” the President of BCSDH, Attila Chikán Jr. said at the opening of the Summit.

Combining economy and ecology The Dutch learnt to combine the economy and ecology early on because the country is densely populated and heavily industrialized, Freek van Eijk told Diplomacy&Trade on the sidelines of the conference. The origins of his organization lie in the history of the Netherlands. “We shaped our country and our country shaped us. Our country formed our mentality because we have had to work together since the Middle Ages to keep our feet dry. Without human intervention, 50% of our country would now be flooded, so we learnt to be collaborative very early on.” In addition, the Netherlands is an agricultural superpower, the executive pointed out, “we have a population of over 17 million people, we have 100 million chickens, 4 million cows and 13 million pigs – all of this means a lot of environmental pressure. We have learnt to cope with environmental stress, keep our place livable but also economically viable.” These circumstances essentially called for the adoption of the circular economy model to keep their scarce resources in a loop.

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Joining forces The Hungarian Circular Economy Platform and the Holland Circular Hotspot signed a declaration of cooperation during the Summit to

Closing the material loop The Dutch Ambassador to Hungary, René van Hell pointed out that ‘’if we want to provide clean water, food and shelter, decent work and well-being for nine billion citizens, as enshrined in the UN Sustainable Development Goals, then we need to act now by transitioning to a circular and sustainable economy to ensure that we are not too late. Our embassy, as one of the founding members of the Hungarian Circular Economy Platform, supports the goals laid down in the Memorandum of Understanding that includes, among others, sharing knowledge and best practices for closing the material loop.’’

The director of the Holland Circular Hotspot emphasized that “we have always been traders; we are very much internationally connected. In the Netherlands, we are pioneering solutions to global challenges. Maybe other countries have even better engineers than the Dutch but we are very good in system thinking. We inspire and help other countries to adapt and implement our solutions locally – we can help companies grow and be successful in Hungary, too – and maybe, we get some of the business,

CIRCULAR VS. LINEAR ECONOMY According to the current linear economic model, the bulk of the technical and biological components extracted from nature are transformed and then disposed of without recycling. In contrast, under the circular economic model processes are carried out in a closed circle, waste is almost fully recycled, and biological and technological components are returned to the cycle with minimum loss of quality. Tibor Bodor, Country Manager at ING Bank N.V. Hungary Branch highlighted at the conference that “the circular economy is about rethinking how we use our raw materials and resources to create a sustainable economy free of waste and emissions. It means shifting from the current linear model of take, make, waste to an economy where we reduce, reuse, recycle materials.”

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where SMEs, knowledge institutes and (local) government come together and are stimulated to collaborate and take action on circular economy with a business approach. Still, we are very much at the beginning of what we would like to achieve in terms of the reduce, reuse, repair, refurbish, remanufacture and recycle model. Countless start-ups and frontrunning multinationals like Philips and DSM are showcasing that there is a lot of momentum and potential for business in this approach. The first movers have the biggest market potential,” Freek van Eijk, Director of the Holland Circular Hotspot said at the first Circular Economy Summit in Budapest. He is convinced that the Dutch will get close to their moonshot ambition of being fully circular in 2050.

photos by DÁVID

A survey undertaken by the Circular Economy Platform Hungary showed that most companies still identify circular economy with waste management.

Respondents themselves confirmed that collaboration, knowledge sharing and government incentives are needed to start changing the current economic model and make up for lost ground.

The Platform, which was established as an initiative of the Business Council for Sustainable Development in Hungary (BCSDH), the Embassy of the Kingdom of the Netherlands, and the Hungarian Ministry of Innovation and Technology a year ago, took it upon itself to facilitate the disseminate knowledge and highlight good practices and business solutions for gradually turning the country’s economy circular.

“In the Netherlands, every self-respecting municipality is working on their respective circular economy strategy. They organize sessions

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analysis

CAN THE CENTER HOLD? NATO CELEBRATES ITS 70TH ANNIVERSARY

BY TAMÁS MAGYARICS

”Things fall apart; the centre cannot hold,” cried William Butler Yeats in The Second Coming in 1919. The Irish poet’s apocalyptic vision expressed a foreboding of what would be coming after the passing of the relatively stable pre-war world order. The shift in power in the world, and the changing role of many of the institutions that have provided safety and stability in the past seventy years are not so dramatic and drastic as the upheavals caused by the Great War and the ensuing so-called peace treaties (as Marshall Foch aptly remarked, provided only an armistice for 20 years). However, the recent dispersion of power, predominantly at the expense of the Atlantic community, has profoundly affected one of its major pillars, the North Atlantic Treaty Organization (NATO), which – in effect – has been in a perpetual identity crisis since the collapse of the Soviet Union.

A military organization is basically glued together by shared goals and interests of its members, and the presence of a credible and vital threat from outside.

With the disappearance of the Soviet Union, this major outside force pushing the members of NATO closer to each other ceased to exist. Though Russia has been trying to flex its muscles in various regions from Central Asia to the Middle East, in reality, Moscow is more of a paper tiger than a real one.

There have been suggestions that China is the new ’Soviet Union’, but this idea has not gained much support for obvious reasons, foremost among them being the lack of Beijing’s intention to challenge, at least right now, the Atlantic Community’s security in a conventional sense. International/ transnational terrorism is not really a vital challenge to the NATO countries, either. Moreover, the vertical dispersion of power has strengthened such sub- and suprastate actors as various NGOs, ethnic, religious and other groups, whose potential threats to the international order and/or the individual members of NATO cannot really be handled with the tools available to the Alliance.

Weakening cohesion NATO, originally conceived as a territorial defense organization, started to look for a new mission (or new missions) in the early 1990s. The solution was two-pronged: on the one hand, the Alliance, endorsing Richard Lugar’s suggestion (NATO should go out of area or out of business), started to conduct out-of-area operations, first in the Balkans, then in the greater Middle East, too. On the other one, in the spirit of the Clinton administration’s National Security Strategy of Engagement and Enlargement (1996), NATO was transformed, in part, as an organization to enlarge the zone of stability in Central and Eastern Europe by filling in the power vacuum created by the withdrawal of the Soviets troops from the region. Both moves brought about, by definition, the weakening of the cohesion of the Alliance as a number of new security agendas appeared within it. The best current example for w w w . d t e u r o p e . c o m

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this phenomenon is Turkey, whose President, Recep Tayyip Erdogan declared before the 70th anniversary summit of the Alliance in London that Ankara would not support NATO’s plans for the defense of the Baltic states (which are facing continuous Russian threats of various nature, from violation of their airspace to cyber warfare), if the Alliance does not support Turkey’s fight against the Kurds. Moreover, Turkey is severely criticized for purchasing the Russian S-400 anti-missile system, the compatibility of which with NATO standards is questionable, not even speaking of the political implications – President Trump even raised the idea of sanctions against a key NATO-ally, the main pillar of the southern flank of the Alliance.

Meanwhile, it was also President Trump who stated that NATO is ’obsolete’, demanded greater contribution from the members of the Alliance (in the spirit of a transactional approach to foreign and security policy), and President Macron claimed that NATO is ’brain dead’ – allegedly referring to Washington’s unilateral steps in the Middle East, over which the Americans did not coordinate with their allies. Then, the American and French presidents clashed publicly over the IS fighters

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from Europe. All of these issues are superimposed on the decade-long debate over burden-sharing, and such questions as the policies towards Ukraine. If all these pronouncements and events are taken at face value, there is ample reason to worry about the future of the Atlantic Alliance.

Holding together However, as Voltaire allegedly put it, “one great use of words is to hide our thoughts.” The ‘center,’ that is the U.S., has a vested interest in maintaining NATO. In short, NATO is the only institution that makes the U.S. a ’European power’. The global dominance/hegemony of the U.S. cannot be sustained without strong and close allies. The transnational challenges, be them of economic, financial, political, diplomatic or security nature, or such new challenges as, for instance, climate change, cannot simply be handled by one country, no matter how strong it is. The U.S. produced roughly the half of the world’s GDP in the late 1940s; now it is the NATO countries put together that generate about 53% of global GDP. On the other hand, Washington’s European NATO-allies badly need the U.S. as

well, in the face of the challenges listed above, and especially with regard to the ones posed by Russia and China. Here, the primary emphasis is not really on the military guarantees (at least, not directly), but America’s role in maintaining an international order (the rule of law, among others) that is vital for the economic well-being, political and social stability, and security in the broadest sense of the European NATO-members.

Therefore, it is fairly safe to predict that NATO ’will not be going out of business’ for some years to come, as the ‘center’ has a strong interest ’to hold’, while the periphery has an equally strong interest ‘to be held’. These two forces seem to provide the necessary cohesion for the Atlantic Alliance. If one or two ’emerging’ powers become a fully-fledged industrial nation (say, for example in 2049), the currently relatively weak outside forces that glue the members of NATO together may get stronger, and the Alliance may very well celebrate its one hundred anniversary in good health. If it comes true, NATO may break a record by becoming the longest lasting military alliance in history.

Tamás Magyarics is a foreign policy analyst

photo by NATO

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society Independence Day of Finland To commemorate his country’s Independence Day, the Ambassador of the Republic of Finland, Markku Virri held a reception at his residence on Gellért Hill in Budapest.

It was 102 years ago, on December 6, 1917, that the Finnish Declaration of Independence from Russia was adopted by the Parliament of Finland.

National Day of Kazakhstan The new Kazakh Ambassador to Hungary, Zhanibek Abdrashov welcomed guests for a reception in the Grand Room of the Kempinski Hotel Corvinus on the 28th anniversary of his country’s National Day, marking the independence of Kazakhstan in December 1991 following the collapse of the Soviet Union. Guests were entertained by a concert organized by the Kazakh National Academy of Arts.

New Ambassadors Five new ambassadors accredited to Hungary presented their credentials to Hungarian President János Áder at the Sándor Palace in the Buda Castle this December (pictured from left to right): Bhakavat Tanskul from the Kingdom of Thailand; Ronan Gargan from Ireland; José Filipe from the Republic of Angola; Zhanibek Abdrashov from the Republic of Kazakhstan; Caroline Charette from Canada.

Pre-Christmas concert The Ambassador of Croatia to Hungary, Mladen Andrlić invited guests, including fellow ambassadors, to a preChristmas concert by the Mihovec – Miki folklore ensemble from the Croatian capital, Zagreb held in the St. Francis's Wounds Church in Budapest.

The program included traditional Christmas songs.

Thailand National Day The new Ambassador of the Kingdom of Thailand, Bhakavat Tanskul entertained guests at the Hungarian Heritage House in Budapest to commemorate the birthday of the late King Bhumibol Adulyadej in 1927. In Thailand, this day is observed as a National Day – as declared by the Royal Thai Government – as well as Father's Day.

DÁVID HARANGOZÓ, KRISTINA GOHER

Italian-Croat concert

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The Italian Cultural Institute, the Embassy of Italy in Budapest and the Embassy of Croatia in Budapest held a Baroque opera gala at the Italian Cultural Institute in the Hungarian capital in early December. Italian countertenor Raffaele Pe, Croatian violinist Bojan Čičić and the Italian La Lira di Orfeo baroque ensemble performed pieces

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what's on PHIA MÉNARD – CIE NON NOVA: THE MOTHER HOUSE / MAISON MÈRE JANUARY 9-10, TRAFÓ

Dressed like a sci-fi version of the goddess Athena, the French Phia Ménard recreates the Parthenon using pieces of cardboard. Her plan is to build a house for Europe, while at the same time highlighting how exposed homeless people and refugees are. Just as makeshift cardboard dwellings no longer offer any protection when the first rain shower comes, Ménard’s painstakingly created temple is also transient. A radical, powerful evening about humankind and our environment in the eternal cycle between dying and becoming. www.trafo.hu

ERO THE JOKER

JANUARY 21, ERKEL THEATER

As Jakov Gotovac’s most successful and popular work, Ero the Joker has long been considered one of the finest Slavic comic operas. Since its premiere at the Croatian National Theater in Zagreb in 1935, it has been almost constantly included in the repertoires of every Croatian national theatre. Many reviews of productions on foreign stages have held Ero to be the symbol of Croatian opera, the one that brings the songs and dances of its homeland to the world, with text and music impeccably intertwined. The chromatic music, rich orchestration, lively rhythms, and continuously flowing melodic vocal lines are closely tied to the exceptional libretto by Milan Begović, which is full of humorous and witty verses. The main character of the opera and the central figure of the narrative is Mica, a young man from a wealthy rural family in Dalmatinska Zagora. While searching for a wife, he follows his mother’s advice and pretends to be a poor man. He introduces himself to everyone as “Ero from another world”, wishing to be certain that his chosen one, Đula, truly loves him. In spite of the fact that he tricks many people, he is eventually forgiven for everything and gets the girl he loves.

The vigorous ballet finale of the opera, with its frenzied tempo, is an ode of sorts to a rural way of life, wherein the music, full of the ethos of the Dalmatian hinterland, swells to prominence.

Featuring the Orchestra, choir and ballet of the Croatian National Theatre in Zagreb. www.opera.hu

SANTANA CONCERT

MARCH 19, BUDAPEST ARENA

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ROBERTO FINIZIO, JEAN-LUC BEAUJAULT, MARA BRATOS

Carlos Humberto Santana de Barragan came from the humblest of backgrounds. He was born 1947, in Autlan de Navarro, Jalisco, Mexico (where a street and public square now bear his name). His father, a virtuoso mariachi violinist, instilled a musical spirit in his son who began playing violin at age five. Later, when the family moved north to Tijuana, Carlos took up the guitar and began to absorb his first influences. Listening to the powerful American radio stations whose signals reached into Mexico, he fell under the spell of John Lee Hooker, T. Bone Walker, and B.B. King, a trinity of guitar heroes whose styles blurred the lines of blues and jazz.

The Santana Blues Band was formed in 1966, and its heady concoction of West Coast soul, Latin percussion, groovy organ, and Carlos’ stratospheric lead guitar was an immediate sensation. By 1967, they were known simply as Santana. Their first album, Santana was released in 1969, and met with a warm response. The debut’s success was eclipsed at the end of 1970, when “Oye Como Va” and “Black Magic Woman” sent Abraxas to Nr. 1 for 6 weeks; the Grammy Hall Of Fame album has sold more than 5 million copies to date in the U.S. alone.

The arc of Santana’s performing and recording career is complemented by a lifelong devotion to social activism and humanitarian causes. The Milagro Foundation was launched in 1998, the culmination of decades of support for countless charities and non-profit agencies the world over. With more than USD 4 million in grants to date, Milagro supports organizations promoting the welfare of underserved children in the areas of health, education, and the arts. After more than 40 years on the world stage, Carlos Santana is at the pinnacle of his career, more vital and relevant than ever before. His passionate “old school” virtuosity and “new school” cool attract the hippest artists to every new recording project that he and Clive Davis initiate. At the essence is a signature sound that is unique and instantly identifiable. With his lifetime of achievement and dedication to music, every move that Santana makes is a multi-cultural event – the soundtrack for the world. Santana has sold more than 90 million records and reached over 100 million fans in concerts worldwide. To date, Santana has won ten Grammy Awards. In 1998, the group was ushered into the Rock and Roll Hall of Fame. www.livenation.hu

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what's on

CHOCOLATE MUSEUM

YEAR-ROUND, BUDAPEST’S DISTRICT 16

Dull winter days and early evenings almost beg to be a bit sweeter.

What can be better than a small amount of preciously made, charming chocolate? Or rather, a big amount... Budapest's Chocolate Museum is Hungary's proud entry in the range of European museums of chocolate. Founded in 2004, it's located in a renovated palace on the peripherical Bekecs Street. At this museum, you can taste free samples (reason enough to go!), learn the history of cocoa and how chocolate is made, view historic production machines, and even learn how chocolate is packaged. Participate in a Praline tour at this very unique museum. Taste lots of chocolates and sweets. www.csokolade-muzeum.hu

THE WORLD OF HANS ZIMMER – A SYMPHONIC CELEBRATION FEBRUARY 17, BUDAPEST ARENA

The Oscar, Grammy and Golden Globe winner Hans Zimmer is undoubtedly one of the most well-known and influential film composers of our time, who has written music for more than 100 movies (including the Lion King, the Gladiator, Pirates of the Caribbean, Da-Vinci code, The Dark Knight, Inception, Interstellar, and Dunkirk, to name only a few). His unique sound and style created a whole new era in Hollywood, and his large-format works have for many years defined the dramatic sound worlds of movies. Hans Zimmer's name is a hallmark of the show touring Europe, as a curator & music director, and while personally he won't be present, his invited soloists and phenomenal friends will provide an unforgettable concert experience. Combining modern sound with a classic orchestral line-up, The World of Hans Zimmer – A Symphonic Celebration Concert is an experience for all generations. www.eventim.hu

MORE CHOCOLATE WITH TRAVEL TIP

Make a trip to Gyula, visit the more than 600-year-old castle, be pampered and relax at the Gyula Castle Spa, and make sure you visit the 100-year-old Confectionery (Százéves Cukrászda). This confectionery opened in 1840 in a building that today is the most valuable double-storied town-house in the South Great Plain. Its wonderful salons feature original Bieder Meier furniture and wall paintings. Having a cup of coffee and a cake here is a real time travel. Take the time to walk through the building and visit the in-house confectioner’s workshop museum.

MICHELLER MYRTILL: THE GREAT AMERICAN SWINGBOOK JANUARY 24, MÜPA

SKATING IN THE CITY PARK UNTIL FEBRUARY 28

There is nothing more classic, more festive, nor more 'wintery' than skating – and skating at the City Park Ice Rink (Városligeti Műjégpálya) is truly skating in style. The City Park Ice Rink is the oldest functioning ice rink in Hungary and, to this day, it is the largest outdoor artificial ice surface in Europe. The moment the ice rink opens in late November, you’ll find locals and city visitors alike swirling and twirling on the rink, set against the Vajdahunyad Castle. There are bustling crowds on the terraces, either queuing up, waiting for their chance to glide onto the ice, or simply admiring the skaters and sipping mulled wine.

And then, there’s the irresistible smell and taste of the chimney cake, sold nearby. Skates can be rented at the rink. www.mujegpalya.hu

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VISITGYULA.COM, DEPOSITPHOTOS.COM, GÁBOR KLINSZKY, THE WORLD OF HANS ZIMMER

Many jazz performers – including Ella Fitzgerald, Frank Sinatra, Billie Holiday, Tony Bennett and Sarah Vaughan – have come out with anthologies of their favorite songs related to a given theme, specific era or genre. Myrtill too selected this set of songs, all of which are somehow related to the sound of swing.

The performance will feature jazz standards, golden oldies, Broadway hits and songs from Hollywood films, all evoking an elegant era of the last century. www.mupa.hu

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THE AMBASSADOR OF ITALIAN CUISINE

ITALIAN-AMERICAN MICHELIN-STAR CHEF ATTENDS THE FEAST OF ITALIAN KITCHEN IN HUNGARY

Held for the fourth consecutive year, Italian Gastronomy Week took place in Hungary this fall.

This year’s guest of honor was Michelin star chef Cristina Bowerman.

The theme and events of the Italian Gastronomy Week were introduced to members of the press at the Italian ambassador’s residence in Budapest but the host, Massimo Rustico was not the only Italian ambassador present as Chef Bowerman is the President of the Association of Italian Ambassadors of Taste. Guests were treated to a masterclass on the preparation of a perfect risotto, this time flavored with Valtellina bresaola beef and Cetara anchovy.

Preserving culinary traditions

Born in Apulia, Cristina Bowerman graduated with a law degree in her home country but, in 1992, she moved to San Francisco to explore new horizons. While in California, she worked at Higher Grounds, a coffee house in San Francisco where she developed her passion for cooking that began in her youth, largely due to her mother’s and grandmother’s teachings. In 1998, she moved to Austin, where she earned a degree in Culinary Arts. There – in particular thanks to her experience at the Driskill Grill – she developed discipline and technique, working a lot on sharpness, definition and concentration of flavors.

Talking about her culinary experiences in the United States, she told the L’Italiano-Americano magazine that “a full new world opened up to me. Neither Italian cuisine, nor Japanese nor any other, are the best in the world. There

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are no specific products, but rather particular characteristics that make every cuisine unique and special. I always like to repeat how, once upon a time there was the compulsory military service, today, it should be established a mandatory period to be spent abroad. I’m not talking about the Erasmus Exchange Study Program, but an authentic immersive experience outside ones’ home country.

Living abroad helps one realize how, despite big and small differences in customs, traditions and even religions, we are all defined by the same humanity.”

Feeling the urgency to reconnect with her Italian roots, she returned to Italy in 2004. In 2006, she became chef at the Glass Hostaria restaurant in Rome’s historic Trastevere neighborhood. There, she achieved the Michelin star in 2010 and became known as one of the most authoritative and recognized protagonists of the Bel Paese kitchen. She has created several restaurant concepts among them Romeo Chef and Baker, Giulietta and Frigo.

Taking Italian cuisine forward Cristina Bowerman created her highly original cuisine, from her experiences – personal and professional – abroad, from the many internships at leading restaurants around the world that she attended to acquire new knowledge, to learn and refine the techniques she took back to Rome and reworked with her own twist. She managed to conquer a

The Italian Gastronomy Week was initiated by the Italian government, the Italian Ministry of Foreign Affairs and International Cooperation and other institutions to promote quality cuisine, with all its aspects: culture, research, innovation, biodiversity and regional identity. Similarly to the 2015 World Expo, this program series promotes the importance of Italian nutrition philosophy, nutrition knowledge and appropriate consumer information. Over the past three years, more than 4,500 events have been held in 110 countries as part of Italian World Gastronomic Week.

The central theme of the Hungarian event was ‘Conscious nutrition, taste culture’, aiming to raise awareness of the relationship between food and health and to provide new sensory experiences for consumers.

In addition to nutritional knowledge and aspects of a well-balanced diet, the objective of the event was to rediscover the areas in which the typical Italian products were originally produced and also provide insight into the fight against the 'Italian sounding' phenomenon.

In his introduction of the Week’s programs, the Italian Ambassador, Massimo Rustico stressed the importance of the quality materials used and the actual cooking methods where traditions and modernity are combined – “that is why people all over the world like Italian cuisine,” he said.

wide audience of locals and internationals with her kitchen, sometimes provocative and unsettling, but always recognizable and tasty, able to communicate – in an interesting mix – global and local, modernity and tradition.

A website dedicated to great Italian chefs notes that she has all the ingredients and ideas of an Italian chef driving Italy’s food into the next era. Some dishes remain close to the country’s traditions, such as her Veal and vignarola salad and a delicate dessert of Cassata spheres with ricotta mousse, almond mousse and chocolate, while others show stronger evidence of her time in the United States, such as her Prawn tartare with pico de gallo, hummus and prawn crackers. Some particularly creative plates hint at the breadth of her travels, like the Foie gras sandwich with liquourice and potato chips, mango ketchup and 'passito' mayonnaise and Rack of lamb, Stilton cheese and burnt leek.

In an interview with the Italian novelist and journalist, Alain Elkann, Cristina described her cuisine as “a way of expressing culture, social values, a way of being an entrepreneur.

Mine is ‘contaminated cuisine’. It basically means that the main body is, of course, Italian, ‘contaminated’ by all my trips and my readings.

I really do think that if you open arms, body and soul you can absorb the best of other people’s culture. When I see a pizza, I see culture, mozzarella, the people who make it. I see the people picking the tomatoes. If you see that you have the power to diffuse culture.”

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Law graduate turning to chef

THE WEEK OF ITALIAN CUISINE

photo by TAMÁS

Chef Bowerman told Diplomacy&Trade that she received her Michelin star ten years ago and added – “with a teardrop in her eyes” – that she is the only female chef with a Michelin star in Rome. However, she hopes that her example will be followed by other women as she is convinced there are many women in Italy with excellent cooking skills. She has been an envoy of Italian cuisine since the 2015 World Expo and she is also one of the founders of the Association of Italian Ambassadors of Taste that tries to “bring everybody on board,” not just culinary professionals, to popularize Italian cuisine and the healthy Mediterranean diet, she said. She also emphasized the importance of teamwork, “including cooperation with the tourism authority and the Foreign Ministry in Italy. We also have important cooperation with the main pillars of their mission in Hungary: the College of Hospitality, the Italian Embassy and the organizations representing Italy in Hungary.”

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Kés-Villa-Buda (which translates to ’Knife-Fork-Buda’) is a new project of twelve restaurants, all located on the Buda side of the city. Sharing the same mission, vision and values, they joined forces to promote traditional Hungarian gastronomy and hospitality, classical dishes and dining ‘Budastyle’.

gastronomy

KÉS-VILLA-BUDA

INITIATIVE TO PROMOTE THE DINING TRADITIONS OF BUDA

According to Kés-Villa-Buda members (namely Budai Gesztenyés Nagyvendéglő, Émile, Földes Józsi vendéglője, Hadik, Jardinette, Kéhli, Mezzo Music Restaurant, Náncsi néni vendéglője, Pasarét Bisztró, Promontor Kertvendéglő, Schieszl Vendéglő és Borház 1896, and Spíler Buda), ‘a Buda style restaurant’ refers to an establishment typically Hungarian and ‘bourgeois’ in a positive sense, a cozy place for comfortable breakfasts, lazy lunches and wining and dining in the evenings. “On Sundays, we love to serve beef bone

PIXELTASTER

Nyitva: szerdától vasárnapig 18.30-23.00

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Nyitva: minden nap 06.30-24.00

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when culture flourished in Budapest. We believe this is a valuable tradition worth upholding: something that can be enjoyed by Budapest citizens, domestic tourists visiting Budapest and foreigners alike.” Kés-Villa-Buda members plan to gather regularly to exchange ideas, and to hold workshops focusing on different topics, such as dishes, ingredients, historic relics and great personalities of the past. The project was originally brought to life as a year-long campaign.

Just recently, a Kés-Villa-Buda common menu was introduced.

1092 Budapest, Ráday utca 4. +36 20 9 COSTES (+36 20 926 7837) www.costes.hu

1051 Budapest, Vigyázó Ferenc utca 5. +36 20 9 COSTES (+36 20 926 7837) www.costesdowntown.hu

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broth and garlic toast with bone marrow. Fried pork cutlet with mashed potatoes accompanied by cucumber salad with sour cream. Smoked knuckle bean soup followed by cottage cheese paste with cracklings. Hungarian tripe stew following a pickled cucumber soup. Somló sponge cake and poppy seed bread and butter pudding, or maybe milk custard for dessert,” founders of the project describe the meals they recommend. “These are typical nostalgic dishes often associated with middle-class dining in the Belle Epoque era, a relatively short period of time before WWI,

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wine

IN JANUARY, THE FOCUS IS ON PINOT NOIR LOOK NO FURTHER THAN ETYEK!

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PLEASE WELCOME THE FLAGSHIP WINES OF EGER WINE REGION FROM TÓTH FERENC WINERY! EGRI BIKAVÉR SUPERIOR 2017 AND EGRI CSILLAG SUPERIOR 2018 THEY HOLDS OUR WINE REGION TOGETHER FOR MANY YEARS NOW!

PÉTER SZŐKE

People tend to prefer powerful, intense wines, so the fundamental role played by Cabernets and Merlots seems unshakeable despite the ebb and flow of fashion in wine. However, quiet winter months like January may offer the right conditions for contemplative, focused wine tastings. Now is the perfect time to savor Pinot Noirs. Looking for the Hungarian counterpart of Burgundy, you don’t have to set your sight too far from the capital. With its cool climate and calcareous soil, the Etyek wine region provides ideal conditions to grow Pinot Noir; no wonder that the leading winemakers of the region see it as their most important red variety. Etyeki Kúria is an ardent proponent of this view and it is also one of Hungary’s foremost Pinot Noir producers. Their exalted position is the result of years spent researching the right viticultural and vinification methods for Pinot Noir in Etyek. Etyeki Kúria was one of the first estates in Hungary to plant this variety in 2001, followed by further plantations in 2015.

The unique character of this variety is due to two specific features. On the one hand, it is highly adept at reflecting the differences in terroir – this is the reason for the many single-vineyard Pinot Noirs produced all over the world.

On the other hand, it produces wines of great ageing potential thanks to its structure, elegance and acidity. Aging is something of the utmost importance to the winemaker of Etyeki Kúria, Sándor Mérész. Thus, the annual Pinot Noir vertical tasting and the introduction of the new vintage is so high on his agenda.

“The first ever really serious vertical tasting I took part in was conducted in Burgundy in 2003, at the world famous Domaine de la Romanée-Conti, where we tasted red Burgundies. The youngest came from 1995, while the oldest from 1957. We are a long way from that standard, but there is an ever-increasing number of bottles that we lay down each year so that we can follow and demonstrate the evolving beauty of mature Pinot Noir,” the Etyek winemaker says. “Started in 2009, our annual tastings of barrel samples and previous vintages of Pinot Noir have convinced us that the variety shows its true colors after extended bottle ageing. It is true, though, that this is not an uninterrupted ascent: there are ups and downs during bottle ageing. A vintage that seemed to hold little promise in the beginning might come out as top quality 2-3 years later. So, it makes a lot of sense to lay down some bottles for years. In time, they might turn out to be much more exciting than what we hoped for.”

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