Diplomacy&Trade 2022 April by Diplomacy&Trade

2022/IV HUF 1710

EUR 6

VULNERABLE TO RUSSIAN GAS SUPPLY SEE INTERVIEW ON page 26

EUROPE NEEDS TO MAINTAIN THE LIBERALIZED GAS AND ELECTRICITY MARKETS AND DIVERSIFY ITS SUPPLY OF ENERGY RESOURCES TO BE ABLE TO DISCONNECT FROM RUSSIAN GAS

Belgium

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FOCUS

“Trade relations between Hungary and Belgium have been soaring recently,” the Ambassador of the Kingdom of Belgium to Hungary, Siegfried Peinen tells Diplomacy&Trade in the leading article of this month’s Belgian Focus published celebrating the 100th anniversary of diplomatic relations. The diplomat also talks about the historic bonds built by the waves of Hungarian immigrants to Belgium and the series of events planned for the 100th anniversary commemoration. see compilation on pages 08-19

Reliability and Predictability Porsche Hungaria Trading Co. Ltd. has a special, distinguished role in the domestic automotive distribution as it has been the market leader since its establishment three decades ago. Since January 2021, its CEO has been Balázs Németh, an experienced crisis manager who has spent almost his entire professional career at the company. see article on pages 06-07

Our cover story is an analysis of European dependence on Russian gas. The Russian invasion of Ukraine has not only resulted in millions of Ukrainians fleeing their country but also brought about an energy crisis given the Western sanctions imposed on Russia and the continent’s dependency on Russian gas supply. Our economic analyst is convinced that Europe can disconnect from Russian gas but it takes a lot of time as well as billions of euros. The (proxy) war in Ukraine is also a huge challenge to the great powers, like India or China, which are not directly involved. They may have to make decisions which are bound to restructure their international relations with peer rivals regionally and globally alike, says our international analyst. Regarding India, he concludes that “sitting on the fence is not likely an option that can be sustained without end.” In this issue, Diplomacy&Trade presents a special Focus section on relations between Hungary and Belgium to mark the 100th anniversary of diplomatic relations between the two countries. Belgium is among the ten largest foreign investors in Hungary with Belgian companies having invested nearly EUR two billion in Hungary so far, while the annual volume of trade between the two countries is around EUR five billion. The Belgian ambassador to Hungary, Siegfried Peinen talks about the numerous waves of Hungarians moving to Belgium in the 20th century, the soaring trade relations and the language-assisted cultural promotion by the Embassy, given the multi-language environment in his country. Of course, organizations like the Representation of Wallonia and the Brussels Capital Region or the Flanders Investment & Trade office also appear in the compilation along with a number of Belgian companies present in Hungary. This month, WittyLeaks is authored by the Bulgarian ambassador who – following the ‘do as the locals do’ rule – is a regular visitor to a farmers’ market in Budapest, a place he has found to be a “stage of sincere human interaction.” The market brings to his mind the Bulgarian gardeners who chose Hungary as their place to work and live in the late 19th century and established the practice of their way of growing vegetables. For the first time, a Hungarian, the head chef of Wolfgang Puck's Spago restaurant in Budapest had the opportunity to present some iconic Hungarian dishes to Hollywood celebrities at the post-awards party of the 2022 Academy Awards in Los Angeles. We also had the opportunity to interview acclaimed Slovenian chef Ana Roš who headed – as president of honor for the European selection – the jury of the European event of the famous gastronomy competition Bocuse d'Or Europe 2022 held in the Hungarian capital. Our wine page features the Neszmély region where wineries participate in a campaign to draw attention to the local wine region, with its proud history of more than 2,000 years, the cultural values of the region and its great potential for tourism. The war in Ukraine weighs heavy on our minds as the daily suffering of ordinary people continues and intensifies. We hope and pray that the hostilities will end soon. We rely on the world’s diplomats to find a solution and end the madness!

Peter Freed PUBLISHER

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EU Diversity Month organized by HBLF in Hungary

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contents 03 ON THE RECORD 04-05 COMPANY BRIEFS 06-07 EXECUTIVE WORLD

Balázs Németh, CEO, Porsche Hungaria Trading Co. Ltd. 08-19 BELGIAN FOCUS Interview with Ambassador Siegfried Peinen; Wallonia Export & Investment Agency; Borsodi; VPK; Flanders Investment & Trade; Soudal; Weerts Group, The Three Corners 22 WITTYLEAKS by the Ambassador of Bulgaria 24 ANALYSIS India’s stance in the Russian invasion of Ukraine

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25 DIVERSITY

HBLF organizes EU Diversity Month 2022 in Hungary 26-27 BUSINESS EU and the Russian gas supply; V.30 28 WINE Community wine of the Neszmély wine region 29 WHAT’S ON Concerts, festivals, events and exhibitions in and out of Budapest 30-31 GASTRONOMY Hungarian menu at the Oscars; Interview with chef Ana Roš

PUBLISHER: Peter Freed EDITOR: Sándor Laczkó PHOTO EDITOR: Dávid Harangozó CONTRIBUTORS: Sándor Laczkó, Tamás Magyarics, Christo Polendakov PHOTO CONTRIBUTORS: depositphotos.com (cover), Gábor Czerkl, bd.com, Gedeon Richter Plc., Magyar Suzuki Corporation, TDK Hungary Components Ltd.,

depositphotos.com, Ágota Csiszér, Borsodi, VPK Group, studio COSMO, The Three Corners Hotels, Zsolt Venczel Photography, Embassy of the Republic of Bulgaria, Christo Polendakov, Tamás Varga, Ágnes Csondor, Zsolt Hlinka, György Palkó, Balázs Szmodits/SZMODITS photography, PIXELTASTER, Live Nation, Szilvia Csibi, Dia Komroczki, David Bodnar, Müpa, Matild Palace, Suzan Gabrijan, MTI Photos: Szilárd Koszticsák, Csaba Krizsán, Zoltán Balogh, Péter Komka

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ITALIAN FOCUS – COMING SOON

Diplomacy&Trade is to present a special focus on Italy, which is Hungary's third largest export market and its sixth most important trading partner. In the first 11 months of last year, trade between the two countries grew by 26%, setting a record, as did Hungarian-Italian imports and exports. Following the start from Budapest of the Giro d’Italia bicycle race, Italy is very much in focus in Hungary. That will be one of the topics discussed – in addition to various aspects of bilateral relations – in an extensive interview with the new Italian ambassador to Hungary, Manuel Jacoangeli. We also talk to the new heads of two organizations: the trade agency ICE and the Italian cultural institute here. The compilation will feature a number of companies of Italian origin present in Hungary as they form the ninth largest investor community in this country.

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on the record NATIONWIDE TEACHERS' STRIKE IN HUNGARY From 8 am on March 16, the Teachers' Union and the Democratic Union of Teachers called a nationwide indefinite strike in Hungary. They demanded a pay raise for teachers, a reduction in their compulsory teaching hours and an increase in the salaries of non-teaching staff working in schools. Teachers participated in the strike not only in the capital, but also in many schools in rural towns. In some cases, parents were there in person to support the teachers. Teachers in several institutions decided to resort to civil disobedience as the government's February decree stipulates so many sufficient services that they say the strike would hardly be felt. Thousands of secondary school students showed solidarity with the teachers. They rallied in three places in Budapest, and

MARCH 15: NATIONAL HOLIDAY IN THE SPIRIT OF THE ELECTION CAMPAIGN

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SZILÁRD KOSZTICSÁK/MTI, DEPOSITPHOTOS.COM, GÁBOR CZERKL

On Hungary’s national holiday marking the outbreak of the 1848 revolution, PM Viktor Orbán referred to the “youth of March,” who said at that time that “let here be peace, liberty and concord.” Speaking in front of Hungarian Parliament, the prime minister added that “we need the same thing today: strength. [Because] the world only respects those who have the courage and strength to stand up for themselves.” Referring to the upcoming parliamentary elections, the PM said that in the shadow of war, what is at stake are peace in Hungary and the country’s security. Do we want “a party on the Right in favor of peace or a party on the Left in favor of war?” the PM asked, referring by ‘the Left’ to the joint opposition of a wide political spectrum. Answering his own question, he said that “we need a government that is not caught by surprise and that is not venturing out into open water for the first time.” Speaking at a rally at the Technological University of Budapest, the prime ministerial candidate of the opposition parties running with joint candidates in the parliamentary elections, Péter Márki-Zay expressed his belief in Hungary's return to the "good side of history." As he pointed out, "we believe that power belongs to the people, that David will defeat Goliath. We believe that on April 3, Hungary will return to the right side of history, that Hungary will finally be victorious, that we will once again be a people, that we will once again be a nation, that we will once again be proud to say that ‘I am Hungarian’, wherever we go in the world." He asked for support to replace "the most corrupt government in Hungary's history." The guest speaker of the opposition rally, Donald Tusk, former President of the European Council, said that today the fight is not only for the freedom of the Ukrainian state and nation, but also "for our future," and that in this fight, a decent and honest man should have no doubt which side he is on.

at noon, held a loud and peaceful demonstration in front of the Parliament on Kossuth Square. In the afternoon, hundreds of would-be teacher students took part in a demonstration outside the Ministry of Human Resources, which, in the absence of an independent portfolio, is responsible for education. Speakers stressed that they want to teach and that the government must give them a perspective.

The government announced that as of March 7, the remaining restrictions would be lifted as the fifth wave of the epidemic receded: masks would no longer have to be worn in the previously required confined spaces: on public transport, in shops, shopping centers, post offices, customer services, theaters, cinemas, museums and sporting events as well as in educational and healthcare institutions and employees of catering establishments would no longer be required to wear masks at work. The government claimed that the fifth wave of the epidemic was receding thanks to the successful control and the vaccination of the population. In addition, any restrictions that made the use of a service in the country subject to the requirement of an immunity card were also lifted: there was no longer any need for this pass for sporting events, cultural events, music and dance events, or outdoor events with more than 500 people. Restrictions on entry into Hungary were lifted as well. w w w . d t e u r o p e . c o m

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Independence Day Independence Day Freedom Day National Day National Day National Day Independence Day National Day

AID FUND ESTABLISHED TO HELP UKRAINIAN REFUGEES The Hungarian Food Bank Association has set up an aid fund to support the civilian population affected by the war in Ukraine. The donations collected are forwarded to the Kiev Charitable Foundation operating the Ukrainian Food Bank. Since the outbreak of the war, the volunteers of the Ukrainian sister organization have delivered more than 450,000 kilograms of food to shelters, hospitals, institutions caring for the elderly and disabled, sometimes at the risk of their lives. However, the Ukrainian Food Bank is running out of stocks and supplies. Since the start of the Russian invasion, the Hungarian Food Bank Association has been coordinating donations and relief shipments from dozens of food producers and distributors in Hungary. Food that can be consumed quickly and easily transported is sent directly to the relief organizations supplying the refugees, as it is mainly these products that are needed by the arrivals and those travelling onwards. A network of homes and institutions hosting at least thirty people is being built up to help thousands of refugees.

SPANISH ROYAL DECORATION TO PÉTER TÓTH

HUNGARY'S POPULATION CONTINUES TO DECREASE PANDEMIC RESTRICTIONS LIFTED IN HUNGARY

UPCOMING NATIONAL DAYS 17 April 18 27 30 3 May 17 25 26

According to data published by Hungary’s Central Statistical Office at the end of March, 6,068 children were born and 12,256 people died in February this year. Preliminary data suggest that in the last twelve months, between March 2021 and February 2022, the number of births diminished by 0.5%, while that of deaths increased by 7.6% and the number of marriages by 6.5% compared to the period 12 months earlier. In February 2022, a total of 6,068 children were born, 15% less or 1,093 fewer than a year earlier. The number of people who lost their lives (12,256) was 3.3% or 391 more than in February 2021. The natural decrease was 6,188 as opposed to 4,704 in February 2021. 3,520 couples got married, which was 14% less or 572 fewer than in February 2021. As for the last twelve months (between March 2021 and February 2022), 91,192 children were born, 484 fewer or 0.5% less than in the previous 12 months. The total fertility rate was estimated at 1.56 per female, compared with 1.55 in the previous 12 months. There were 154,657 deaths, 7.6% or 10,919 more than in the period 12 months earlier. The natural decrease was 63,465, 22% higher compared to 52,062 in the previous 12 months.70,886 couples got married, which was 6.5% or 4,308 more than a year earlier.

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The Ambassador of Spain in Budapest, Anunciada Fernández de Córdova has presented the Cross of Officer of the Order of Isabella the Catholic that King Felipe VI of Spain has granted to Péter Tóth, Director of the Spanish-Hungarian company ‘Olmos and Tóth’. The Ambassador presented the decoration in a solemn ceremony at the Residence of the Spanish Embassy in Budapest at the end of March. In her laudation, the Ambassador stated that Spain wishes to recognize in this way the efforts of Mr. Tóth, who made a decisive contribution to saving the ‘mangalica’ breed of pig from extinction, being today one of the most sought after and recognized pigs bred in Hungary. The company Jamones Segovia, whose owners and directors accompanied Péter Tóth at the ceremony, is in charge of converting the meat of this excellent breed into stupendous hams that are becoming more and more recognized every day, both in Spain and in the rest of the world.

company briefs

BD TO DOUBLE SYRINGE PRODUCTION CAPACITY IN TATABÁNYA Becton Dickinson (BD), one of the world’s leading medical technology companies, has announced an investment, in Hungary, of USD 210 million that amounts to nearly one-fifth of its global development budget earmarked for the upcoming years. The project, which will create more than 300 new jobs, will result in three new production lines thanks to which the production of pre-filled glass syringes can be doubled in the Tatabánya plant, west of Budapest, the Hungarian Investment Promotion Agency reports.

With a presence in 190 countries, BD opened its pre-filled glass syringe manufacturing plant in Hungary in 2009 and has been continuously developing ever since; therefore, among others, the company has brought the production of product groups requiring high expertise such as biotechnological reagents to Hungary.The US company, which has a history of 125 years, will invest USD 1.2 billion globally in the coming years to improve and expand its manufacturing technology, and one of the most important elements of the program is the Tatabánya project. BD Hungary Ltd.’s development will enable the production of hundreds of millions of syringes, the new production lines are expected to be operational by the end of 2024.

NEW COOPERATION BETWEEN ABBVIE AND GEDEON RICHTER

NEW BUS FACTORY PRODUCTION HALL IN MOSONMAGYARÓVÁR The Kravtex-Kühne Group's new 4,000-square-meter production hall was inaugurated in Mosonmagyaróvár, NW Hungary this March, expanding the bus factory's floor space to more than 20,000 square meters. István Krankovics, chairman of the group's board of directors, said that the Credobus plant, part of the Kravtex-Kühne group, has been expanding continuously since 2008, and this is the third stage of the bus factory's investment. The government has contributed a total of HUF 470 million to the HUF 2 billion development. According to a press release issued by the company, the investment has created a domestically-owned bus manufacturing capacity that could supply the entire Hungarian market. After the hall is equipped and the production equipment is installed, 1,000 bus chassis structures can be produced in Kühne and transported to nearby Győr for assembly in multiple shifts from 2023.

NEW AEROPLEX HANGAR INAUGURATED IN BUDAPEST Talking at the opening event this March, the Managing Director of Aeroplex Central European Aircraft Technical Center Ltd., Árpád Demény said that the new hall at Budapest’s Ferenc Liszt International Airport will create almost 200 new jobs and significantly increase the company's capacity. It is just as important that the development would enable them to offer airlines exceptional services at a European level, he added. The construction of the 8,000-square-meter hangar, which can

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ULTRAFILTRATION MEMBRANE PLANT UNDER CONSTRUCTION The new buildings have been erected and the production of the new manufacturing equipment is also on schedule at the site of the French SUEZ Group in Oroszlány, west of Budapest where the progress of its investment of some EUR 30 million was celebrated in a ceremony this March. By expanding its ultrafiltration membrane manufacturing capacity and building a new storage unit, the project of SUEZ Water Technologies & Solutions Hungary Ltd. is aimed at setting up the largest such membrane facility in Europe. Paris-based SUEZ Group that serves 450,000 customers worldwide is one of the most renowned industrial water treatment service businesses in the world. It produces ultrafiltration membrane only in Hungary for both retail and industrial purposes, which is one of the most dynamically developing segments of the water treatment equipment market. The technology is suitable for filtering and purifying water and sewage extensively, thus it is of key importance for the purpose of handling the global drinking water situation. Part of the investment that is set to expand capacity by 30% and create 85 jobs is building a brand-new light-structure storage unit; furthermore, the sewage treatment facility of the company itself will be also expanded. SUEZ doesn’t solely focus on manufacturing: it also operates an R&D center that employs thirty chemists in Oroszlány and nearby Tatabánya, and it is committed to deploy high value-added activities in Hungary. also be used for the maintenance of wide-body aircraft, cost HUF 10 billion. The investment received government support, the state news agency MTI reports. Aeroplex Central European Aircraft Technical Center Ltd. was established in 1992 as part of Malév Hungarian Airlines and became a partly owned subsidiary. After the airline's dissolution in 2012, it continued as an independent company, but had to be reorganized in 2016 due to losses. The company, which is now wholly state-owned, closed 2019 with a net turnover of HUF 11.7 billion and 2020 with a net turnover of HUF 15.2 billion. Almost half of this revenue came from foreign sales before last year. Profit after tax was HUF 491.5 million forints the year before last and HUF 375.3 million last year, according to the latest public accounts.

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BD.COM, GEDEON RICHTER PLC., CSABA KRIZSÁN/MTI, SZILÁRD KOSZTICSÁK/MTI

according to Tom Hudson, MD, senior vice president, R&D, chief scientific officer, AbbVie. "AbbVie is committed to driving progress and finding solutions for patients living with complex neuropsychiatric conditions," he added. Richter CEO Gábor Orbán stressed that he was “very pleased to extend our existing co-operation under this new collaboration with AbbVie as it opens the way towards new products that could help alleviate the debilitating psychiatric and cognitive symptoms of many neuropsychiatric conditions, leading to an improved quality of life for patients suffering from these conditions around the world... I greatly value AbbVie’s capabilities in the field of development and commercialization of drugs acting on the Central Nervous System and we are looking forward to entering this collaboration on new therapeutic options for patients and doctors.” Under the terms of the agreement, the collaboration includes both preclinical and clinical R&D activities with shared financing by the parties. Richter will receive an upfront cash payment, along with potential future development, regulatory and commercialization milestones. In addition, Richter may also receive sales-based royalties. AbbVie will have worldwide commercialization rights except for traditional markets of Richter, such as geographic Europe, Russia, other CIS countries and Vietnam. The transaction is expected to close in the second quarter of 2022, subject to the satisfaction of customary closing conditions, including applicable regulatory approvals.

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AbbVie and Gedeon Richter Plc. have announced a new co-development and license agreement to research, develop and commercialize novel dopamine receptor modulators for the potential treatment of neuropsychiatric diseases. The collaboration is based on the results of preclinical research carried out by Richter and includes several new chemical entities selected for development. AbbVie and Richter have collaborated for 15 years on Central Nervous System (CNS) projects, including globally launched products such as cariprazine (VRAYLAR® / REAGILA®). "In collaboration with Richter, we will continue to build on our research that seeks to provide additional insights into our understanding of cariprazine’s clinical pharmacology and explore novel chemistry to identify new dopamine receptor modulators,”

company briefs COMPLEX DEVELOPMENT PROGRAM AT KTS METALLTECHNIK LTD.

The opening ceremony of a complex corporate development project to be carried out by KTS Metalltechnik Ltd. took place in Bátonyterenye, NE of Budapest this March. Thus, the company will be able to participate as a supplier in the expansion of the electric battery production capacity in Hungary. The development project is to cost HUF 250 million, of which over 50%, that is a HUF 245.72 million conditionally reimbursable European Union funding in the framework of the GINOP PLUSZ economic development program. As part of the complex development, the company is expected to create 30 jobs in the region by building a new assembly hall and to develop its existing human resources by using consultancy and training services. The investment also includes

ESZTERGOM SUZUKI PLANT DOES NOT SHIP TO RUSSIA, UKRAINE

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MAGYAR SUZUKI CORPORATION, ZOLTÁN BALOGH/MTI, PÉTER KOMKA/MTI, TDK HUNGARY COMPONENTS LTD.

Magyar Suzuki has announced that it stopped exporting cars to Russia and Ukraine from March because of the war. The company used to sell around 10,000 new cars a year in the two countries and now wants to sell its ‘remaining’ vehicles in other markets, planning to ensure that this redirection does not affect production levels at the plant. For this reason, production at the Esztergom unit, NW of Budapest, will continue to run in two shifts,

according to the announcement. The company said that the biggest challenge remains the chip shortage, but that it is working to address this, and that the Esztergom unit's operations are also being negatively affected by the surge in energy prices and the weakening of the Hungarian currency, the forint. They added that they are trying to mitigate the cost-increasing impact of all these, but at some point, they will lead to an increase in new car sales prices.

SCHOTT EXPANDS MANUFACTURING CAPACITY IN HUNGARY The German SCHOTT Group adds manufacturing of pre-fillable glass syringes (PFS) in Lukácsháza, W Hungary to its portfolio in this country. The EUR 76 million investment to be completed by 2024 will create 120 new jobs and is bound to address global demand for the product concerned. 12% of the costs are borne by Hungarian taxpayers through a government decision. Mainz-based SCHOTT produces special glassware, glass ceramics and related high-end material, with its Hungarian subsidiary, SCHOTT Hungary Kft. being the largest pharmaceutical manufacturing plant of the Group. By using cutting-edge technology, syringes can be prefilled w w w . d t e u r o p e . c o m

the acquisition of a CNC machining center and an automatic cutting machine. A 15-kW solar panel system will also be installed to ensure sustainability. With the project, which is planned to be completed in the fall of 2023, KTS Metalltechnik Kft., which is 20 years old this year, intends to contribute to the prosperity of the Nógrád region.

TDK INVESTMENT IN SZOMBATHELY TDK, one of the world's leading electronics companies, has decided to build a new factory to manufacture sensors for electric cars in response to market demand for electric cars. A HUF 26 billion investment by the Hungarian subsidiary of the Japanese electronics giant will create 250 new jobs in Szombathely, W Hungary. The Hungarian government is providing HUF 6.6 billion (around a quarter of the total investment costs) to develop this business unit that manufactures sensors for electric cars. TDK Szombathely is one of the most important European electronics development and manufacturing centers of the international TDK group. The company develops and manufactures electronic components for "smart car applications" in Szombathely, such as full keyless opening and starting, automatic high beam control, optical parking assistance systems, lane departure warning systems and various signage systems. TDK is one of the city's largest employers, with a development and production base of around 50,000 square meters in Szombathely. The company, Diplomacy-n-Trade.ai 1 2017. 02. 27. 11:22:30 which has been in operation for 22 years, is a

competitive development and manufacturing center for inductors and aluminum electrolytic capacitors, supplying products to numerous automotive customers in Europe and worldwide.

with medication in the case of drugs to be administered which simplifies the injection processY and increases dosing accuracy. CM High-quality pre-fillable syringes are designed to ease the administration process, ultimatelyMY enhancing patient safety. “Our products are CY used to safely store a wide range of drugs, CMY including vaccines and biologics,” Christian Helbig, Head of Glass Syringes at SCHOTT’s K Pharma business unit, said. As part of the company’s global production network in 13 countries, the new production line planned for Lukácsháza, W Hungary will follow high-end processes and advanced quality assurance.

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executive world Porsche Hungaria Trading Co. Ltd. has a special, distinguished role in the domestic automotive distribution as it has been the market leader since its establishment three decades ago. Since January 2021, its CEO has been Balázs Németh, an experienced crisis manager who has spent almost his entire professional career at the company.

RELIABILITY AND PREDICTABILITY BALÁZS NÉMETH IS THE CHIEF EXECUTIVE OFFICER OF HUNGARY’S LARGEST CAR TRADING FIRM

After graduating from the Budapest University of Economics and Business Administration with a degree in public opinion research, sociology and sports management, "fate had it that Porsche Hungaria was looking for a young economist with a better than average command of German, and that's how I came to work here as a sales coordinator and assistant in 2001 alongside János Eppel, who was then brand manager at Volkswagen,” the CEO tells Diplomacy&Trade.

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In 2004, he became sales manager at Volkswagen and deputy to the brand manager. In 2007, he moved to the retail area where he was director of Porsche Interauto Buda until 2011. At that time, it was one of the biggest dealerships in Hungary, with a lot of service stations, very high sales turnover, many brands, almost 130 employees. “Then came the economic crisis in 2008 and that made things very difficult for us there. We had to lay off quite a lot of people, but I'm very proud that I was able to turn a struggling company into a very successful business in four years, and that I learnt there and then how to manage people and run a company. It was a very serious challenge, to get into and manage such a big system there at the age of 32,” he recalls.

ÁGOTA CSISZÉR

The first successful crisis managements

executive world Balázs Németh returned to the headquarters of Porsche Hungaria in 2011, this time as Volkswagen brand manager, and he held that position until the end of 2017. During this period, he had to face another crisis, the so-called diesel case in 2015, “which was linked to the Volkswagen name, and in connection with that, I had to take over the entire crisis management of Porsche Hungaria at that time – I was given this honorable task by the management. There was also a lot to learn from that. Thanks to the excellent work of my colleagues and their very disciplined approach and task execution, that crisis was managed well in Hungary,” he says. At the end of 2017, he left the company and worked as a selfemployed consultant for three years. “Then, at the end of 2020, I was asked to take over the management of Porsche Hungaria, and after a selection process involving many stages, I managed to clear all the hurdles and was appointed as the CEO of Porsche Hungaria at the beginning of 2021,” he adds.

Values and principles Porsche Hungaria's owner, the Austrian firm Porsche Holding Salzburg, was bought by the Volkswagen Group 11 years ago, so the company is indirectly 100% German-owned. As to what the main Austrian and/or German business principles are according to which the company operates and how he has managed to adapt them to the Hungarian context in his work, the CEO first recalls his childhood. “I had a fairly strict Protestant upbringing. In addition, when Hungarians were able to travel freely, I was in the fortunate position to work in a boarding house in a small Austrian mountain village for a month over two summers at the age of thirteen and fourteen in exchange for room and board. There, I learned the Austrian mentality, of which I already had some back home. There are Austrian ancestors in the family, including an actress from Vienna and an industrialist from Linz. So, I learned some of that Austrian and German mentality there. I also worked abroad every summer from the age of 18, in addition to my studies, in Austria, Germany, London and other countries, where I spent summers washing dishes, working as a waiter or a bartender. Again, I learned a lot of German language and German work ethic in Germany, even if it was limited to the hospitality industry. Later on, here at Porsche Hungaria, which has always been exemplary in terms of its perfectionism in Hungary, I also received a large dose of training that led me in the direction of embracing the classic German and Austrian work ethic and perfectionism. Porsche w w w . d t e u r o p e . c o m

Holding, and Porsche Hungaria within it, is a peculiar mixture of having a German ownership while our direct employer rights are exercised by a holding company with a very substantial turnover and pre-tax profit, which has grown out of an Austrian family business. So, it is a special mix, which is why I do not usually define Porsche Hungaria as a classic multinational company in the Hungarian model, but rather as a hybrid situation, a blend of a family business that has grown into a giant, but still family-owned, enterprise and the operating philosophy of one of the world's largest car manufacturers. All that makes me feel very lucky for myself, the whole company and the people who work here.”

Reliability and predictability As for the business principles or philosophical elements that help him in his job as a leader, Balázs Németh emphasizes two words: reliability and predictability. “For the 32nd year since we became Hungary's biggest car importer, this has always been our motto, and we are adamant about it, even in times as incredibly difficult as these, to earn, keep and renew the trust of our customers. That is perhaps one of the most important things. Predictability, perfectionism, precision, even if these may often sound like clichés, but in the life of the average person, the second biggest investment after real estate is a car. So, these are the qualities and attitudes that are very much needed and are very much in demand, regardless whether we are talking about private buyers or businesses, where this can also be a major expense. The use of a car is essential for mobility today.”

Lessons of crisis management The latest crisis needing management is caused by the consequences of the Russian invasion of Ukraine. Regarding his previous experience and his management philosophy helping him to tackle the current situation, the CEO notes that “you learn as you go along. You probably have to have something in you, perhaps in this case a certain composure, because you can't get through this by rushing. Here again, I can only say platitudes, things like in a big storm you have to keep adjusting the sail, the size, the direction so that you can avoid any major disaster. When flying a plane, if there is a major problem, it is customary to say that you have to push the pilot's seat back and get a big picture of what you can do, where the problems are that need to be addressed first and where intervention is needed first. So on the one hand, you bring these with you, and on the other hand, you

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As a trading company, what is the most important for Porsche Hungaria is the customer. As Balázs Németh explains, they are trying to reassure their customers as much as possible, to serve them as quickly as possible and, most importantly, he emphasizes once again, to represent predictability and reliability in this extremely unpredictable period that the world is living through and will continue to live through for at least the next six months. “That is almost certain. A lot of the process has only just begun in terms of general price increases and price gaps.” Asked what advice he can give to current and prospective buyers in the current situation, the CEO points out that they should think very carefully about the decision they make and the car they buy, and that they should only and exclusively contact reliable specialists, dealerships and garages with considerable experience, because you cannot gamble at a time like this with cars that you have bought from unreliable sources, for example, second-hand cars. “I would like to draw everyone’s attention to the fact that there is a very serious financial risk in this, so, contact reliable specialists and make a very wise decision on the basis of what kind of new car you buy, depending on the condition of your own used car and what you need, and whether you are buying a new or a reliable used car. This is not the place for advertising, but still, I can say that here at Porsche Hungaria, we are fortunate enough to be supplied with both and in good enough quantities. It means that we can provide the cars that these types of customer needs are aimed at.” can learn them, but I think the most important thing in such cases is to be calm and to analyze the situation very, very carefully, to assess it, and on the basis of that to make very, very serious decisions: in terms of costs, in terms of customer management, in terms of relations with manufacturers and negotiating techniques, and the rhetoric we use to try to get our way to protect our customers or to support them as much as possible. I could highlight these as the most important elements in crisis management.”

Tackling crises of different character In 2007-8, there was a financial crisis, then came a diesel crisis with a completely different character. The current crisis in the car market is again a completely different task and agenda. Obviously, the tools and methods for dealing with it are quite different. In response to this, Balázs Németh says that he thinks the recipe is very similar: “first of all, the human factor cannot be left out. We have to treat our colleagues in the same way, we try to instill in them the kind of calmness with which they treat our current or future customers, that is, how we deal with any dissatisfied people who are disappointed with, say, a brand, and make it clear that this disappointment can be cleared up and corrected and trust can be restored.” Going back to the crisis of 2008, the CEO stresses that then, there was a global trend where one had to find answers at a micro level to a macro problem, “which is not easy, especially if you have to cut costs sharply, part of which is, for example, to reduce the stock, which is very difficult. Compared to that, and compared to the diesel issue, the challenge that we are facing now is completely unique and special because there is no historical precedent, there is no protocol written for this, that in this case, you have to go right or left, you have to hit the brakes or you have to accelerate. We now have to make very creative and very smart decisions from one week to the

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next. If the HUF/EUR exchange rate goes up from 370 to 400 overnight, that is obviously a significant difference, and because we are talking about imported products, we have to take some action there without losing the confidence of our customers and without it looking like a rush. If the next afternoon, the forint is back at 375 against the euro, for example, you suddenly start cancelling a whole series of measures that were written and invented the day before. Plus, there is a global inflationary trend, there is a shortage in the supply chains, which is special because we are not talking about national economies in the non-classical sense of the word, but the world has become so globalized that there is simply total interdependence between different countries. It is not possible to produce most of the products without having as an actor a partner in a country other than your own, or even in a very, very distant country, which could be a manufacturer or a service provider or a developer. This is a whole new challenge,” he explains.

Local conflict, global problems The pandemic caused by the new coronavirus infection has played a part in creating this challenge, as has the explosion in the world market demand for chips. Demand for smart chips has grown from 17 billion to 50 billion in four years, he adds. “Even without the health epidemic situation, it would have been difficult for the big three manufacturers, who cover 97% of the world market, to keep up with the demand. In addition, it should be remembered that in this global supply chain, within which the automotive industry is even more special compared to a consumer electronics or food product, because a car is made up of many, many thousands of components, and of a very, very wide range of materials: leather, walnut inlays, neon, nickel, many, many different types of plastic. There is a raw material 94% of which globally is produced in Russia. But if only 30% of the global supply of something is produced or mined in

Ukraine as in the case of nickel, or neon, and production has halved or fallen by a third because of the war, that one-third drop can cause a very, very serious problem at the supplier level worldwide. It's very difficult to suddenly replace these with others. It will take two or three years to build a chip factory, or to set up plants with the development background to be able to somehow assemble the neon extracted from the air, which is practically the raw material for the lasers needed to manufacture chips. It is very complicated. Nevertheless, after every crisis, and in the middle of the current one, Porsche Hungaria is still the market leader in Hungary,” he points out.

Thanking customers for their trust and patience Porsche Hungaria is the biggest car dealer in this country. “This is because we sell many brands. Representing six different brands means six different production philosophies and six different manufacturing, even if there are overlaps, of course, because we are talking about a big group and there are component and part similarities, but the composition of the specialist staff, the quality of the production lines, etc. is different everywhere. At the moment, in the spring of 2022, the biggest challenge is for the Skoda brand, although there have been signs of a looming threat since the middle of last year. So far, we have managed the situation very well and have managed to get enough cars. At the same time, we have, for example, received very good news from the Volkswagen plant and the Audi plant in terms of their production capacity. As the head of the company, I thank everyone for their patience. On behalf of the brands of Porsche Hungaria, I express my gratitude for the kind of loyalty and fidelity that we see, in the volume of sales contracts signed, which is a record, despite the fact that our delivery times are unprecedented for certain models, and there is trust there, so I can certainly only express my thanks to the customers,” the CEO concludes.

BY SÁNDOR LACZKÓ

As to how Hungarians arriving to Belgium, in different time periods, managed to integrate into society and be good citizens of the country, Ambassador Peinen says the profile is sometimes very different, but overall, they integrated very well into Belgian society. They still have this strong bond with Hungary, some still visit their Hungarian families. “After the first wave, the children that remained eventually dispersed all over Belgium. With the waves after that, like that of 1956, a lot of them ended up staying around the region of Brussels, Liege and Genk, which had to do also with the fact that there was major industrial activity around these places at that time and there was a need for

STRENGTHENING BONDS THROUGH COOPERATION labor force. Others, academically brilliant students were employed also in the private sector.” He also highlights a few better-known Hungarians who ended up in Belgium. For example, Sándor Lámfalussy who later became known as the ‘father of the euro’, the common European currency. He received the Order of St. Stephen of Hungary in 2013. Another example is the current Honorary Consul for Hungary, Ari Epstein, who is based in Antwerp and who also has Hungarian heritage. He is now the CEO of the Antwerp World Diamond Council.

Strengthening bonds “Of course, this 100th anniversary is always a good occasion to strengthen the bonds that we already have. Since both Belgium and Hungary are members of the same club, both members of NATO and EU, there is already a lot of cooperation going on between our countries and I would say sometimes it's so obvious that we don't even notice it anymore. Both Belgium and Hungary are mediumsized countries with very open economies and thus, we are both very much dependent on free trade and

a good functioning single market within the EU. So, everything that is related to that really is a good reason to look at areas where we could cooperate more,” the Ambassador highlights. Looking towards the future, he mentions logistics as something that is very important for Belgium. “We have major ports

and we're looking more and more at how we can connect with the hinterland. Naturally, for example, we also look at Hungary being very centrally located, at the crossing point of the east-west and the north-south axes in Europe. So, it certainly offers a lot of possibilities. Nowadays, we live in

HUNGARY

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

BELGIUM

93,028 sq km 30,528 sq km 110 140 9,699,577 (2022 est.) 11,778,842 (July 2021 est.) 93 80 -0.3% (2022 est.) 0.59% (2021 est.) 216 151 8.65 births/1,000 population (2022 est.) 10.95 births/1,000 population (2022 est.) 211 170 77.2years 81.65 years 92 31 1.23 migrant(s)/1,000 population (2022 est.) 4.58 migrant(s)/1,000 population (2021 est.) 61 25 USD 31,000 (2020 est.) USD 48,200 (2020 est.) 63 31 3.45% (2019 est.) 5.36% (2019 est.) 48 86 10,332,660 (2020) 11,529,728 (2020) 88 78 41 (2013) 41 (2013) 103 102

Source: World Factbook

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DÁVID HARANGOZÓ, DEPOSITPHOTOS.COM

Becoming Belgians

INTERVIEW WITH THE AMBASSADOR OF BELGIUM, SIEGFRIED PEINEN

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This year, Hungary and Belgium celebrate the 100th anniversary of the establishment of diplomatic relations. Looking back at the history of this century, Ambassador Peinen notes that at the very beginning, there was a bit of cautiousness from both sides as Hungary and Belgium came from opposite sides after the First World War. “It was noticeable, however, that during the 1920s, the relationship became much more friendly and much more intense, which, politically, had to do with the Treaty of Locarno in 1925. On a more human, humanitarian level, a very important event was the setting up of the Hungarian Belgian Child Relief project, the so-called children’s trains. It was a project that was originally started by the Netherlands, Sweden, Switzerland and Great Britain at the time, just after the First World War. Of course, there was misery and poverty everywhere in Europe but the people noticed that conditions were especially hard in Hungary after First World War. From 1923, there were a lot of Catholic organizations that stepped into this project and this way, almost 25,000 Hungarian children could make their way to Belgium where they stayed with local families mostly in Flanders, and to a lesser degree in Wallonia. Most of them came back after a couple of months or years, but a lot of them stayed also in Belgium. We estimate that about 10% of them ended up staying in Belgium, and, of course, their descendants. They're very much aware of this bond and this creates up until today a special bond for many Belgians with Hungary. As a matter of fact, very recently there was an interesting exhibition going on in the Budapest History Museum on the children’s trains. This was briefly, and on a much smaller scale, repeated after World War II.“ The Ambassador adds that following the Hungarian Revolution of 1956, numerous Hungarian refugees went to Western Europe with many of them also ending up in Belgium. “We estimate about 7,000 refugees arrived in 1956. Later on, as there were more waves of refugees, they were very warmly greeted and welcomed in Belgium where they called them freedom fighters. Some of them went on to other countries, but a lot of them stayed in Belgium. In conclusion of this issue, he states that relationship between Belgium and Hungary changed completely after the fall of the Berlin Wall when Hungary integrated into the Euro-Atlantic community, when it became member of NATO and EU.

belgian focus a different geo-political environment and I have to say that in terms of security and defense, Hungary has really been investing a lot in its own security in the last couple of years and will reach the NATO 2% defense investment guideline in a couple of years. Also, cooperation with Belgian manufacturers active in this area is increasing.” As for pure bilateral political relations, the Ambassador considers them good. “They could be of course a little bit more intense and that is always the job for an ambassador to deepen this relationship. Of course, there are some issues where sometimes we disagree but that's normal within the EU. For example, we all know the issue of the rule of law. But the proper procedural framework for these debates is in place. The European Union has been constructed in a way that it's also a forum where we can discuss these issues as partners that share responsibility for our European project. So, Belgium can, like any other member state, make certain remarks on these issues just as Hungary can point to certain areas where they wish to express themselves.” A good opportunity for the two countries working together will be when Belgium will form the trio Presidency of the Council of the European Union together with Hungary and Spain from 2023. “Preparations for this presidency will start pretty soon and from that point, we will have more and more contacts as well,” he adds.

Soaring trade relations Belgium is among the ten largest foreign investors in Hungary with Belgian companies having invested nearly EUR two billion while the volume of trade between the two countries is around EUR 5.5 billion annually. Bilateral economic relations are on a good path but, of course, there is always room for improvement. Citing figures published by the Belgian Foreign Trade Agency, the Ambassador points out that, for example, “from 2017 to 2019, both exports and imports between the two countries were soaring, I would say on an average of about 15% a year. However, with the pandemic, it all took a little dive, but it's picking up very quickly again as you see from the most recent figures for the first nine months of 2021. In terms of the makeup of Belgian exports, it is mostly chemicals, machinery and equipment, plastics and pharmaceutical products. I would like to point out that Belgium is a world leader for pharmaceutical products. For example, Belgium constitutes about 2% of the total population within the EU and 3% of the EU’s GDP. But if you look at research and development (R&D) expenditure in the pharmaceutical sector, it is more than 12%. It generates almost half of our trade surplus worldwide. So, we really have a lot going in this sector and that's also one of the major sectors that our trade representatives are focusing on.” In terms of improvement, Ambassador Peinen notes that when it comes to investments, it is a bit of a one-way street, a lot of Belgian companies have invested in Hungary. “Belgium certainly has a lot of qualities and advantages for also younger company startups that want to scale up, for example, in the pharmaceutical or in the biotech sector. So, trying w w w . d t e u r o p e . c o m

to attract more Hungarian companies to invest in Belgium is certainly one of the challenges, but there are certainly a lot of possibilities,” he adds. Regarding major investors from Belgium to Hungary, the Ambassador stresses that by far, it is K&H Bank (owned by the Belgian bankinsurer KBC Group) that is the biggest flagship investment that has been active in Central Europe for over 25 years. In Hungary, K&H is the second largest bank right now. “Other than that, most of the Belgian companies are bigger SMEs that are active here. They are active in a wide area of different fields like for example Delaware (ICT sector), Eltex (in waste management), Mono (automotive sector), SIC (industrial rubber products). Some are active in the hospitality sector like The Three Corners. Soudal is a major player in the construction industry etc. In short, the Belgian companies represented in Hungary really cover all economic fields.

Language-assisted cultural promotion Cultural relations between the two countries also go back a long time. “Looking in the archives, I noticed that, for example, in 1927, the Belgian government organized a Hungarian concert in the Brussels Conservatory. Belgium is a multi-language country and the three official languages there are also very well represented here in Hungary through their respective governments. For example, if you look at Dutch language and literature studies, actually, there are three universities in Hungary that are active in this field: ELTE, Károli Gáspár and also the University of Debrecen. They have a full program where you can learn Dutch and learn about the Flemish and Dutch culture. The Flemish government is very active in this field. They promote the language along with the culture. Same goes for the Francophone side of Belgium where you have a representative for WBI (Wallonie Bruxelles

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International) working in the French language department at ELTE and whose job also includes the promotion of the French language and the Francophone culture from Belgium. As a matter of fact, a festival of the Francophonie is going on in Hungary right now. The German speaking community of Belgium is not represented here in Hungary, but it is also an official language in my country. We have some contacts, for example, with the Andrássy University, the only German speaking university outside the German Sprachraum. All these things create bonds and although Belgium has a complex institutional architecture with three different language communities, it also allows you to have contacts with different parts of society, which certainly is an advantage in my job. I have to say that there are a lot of Hungarians, in all walks of life, who speak either Dutch or French, or German very well,” the Ambassador highlights.

Planning anniversary events As for the celebration of the 100th anniversary of diplomatic relations, Ambassador Peinen notes that

the anniversary celebrations started on February 20th and “at the Belgian Embassy, we are planning several events in different sectors culturally, academically and politically. We also want to do something with alumni, for example, Hungarians who have been studying in Belgium. Just recently, along with the Flemish side, we organized an activity around the performance of Collegium Vocale at the Liszt Ferenc Academy of Music in Budapest. We used this opportunity to invite some VIPS and organize a reception. We are very proud that such a world-renowned ensemble performed in Budapest. The reaction of the public was astounding. You can tell that there are true connoisseurs among the Hungarian public. The Artistic Director, Mr. Herreweghe, admitted afterwards that performing in Budapest is always something special.” The Embassy is planning something similar for the Francophone side. “For a long time, we had the idea to organize something with the Liege Philharmonics Orchestra because their musical director is Hungarian, Gergely Madaras. Unfortunately, it didn't work out due to agenda conflicts. For most other events we're still in the planning phase. I assume that most events will take place in the second half of the year. There is also an idea to do something in the economic field together with our Belgian Business Club (Belgabiz) that celebrated its fifth anniversary in 2020. Because of the pandemic, the anniversary party could not take place but maybe the 100th anniversary could be a good occasion to put Belgabiz in the limelight as the economic bonds between our two countries are very strong. In the academic field, we have been talking, for example, with the Institute for Foreign Affairs and Trade to organize a seminar, probably also in the second half of the year. Our foreign minister, Sophie Wilmès, who is also Deputy Prime Minister, was to visit Hungary at the end of August last year. Unfortunately, we had to postpone it, but I’m sure that we will soon find another date for this visit,” the Ambassador concludes.

belgian focus

A WINDOW OF WALLONIA TO HUNGARY THE REGION’S EXPORT AND INVESTMENT AGENCY COPES WITH NEWLY EMERGING CHALLENGES

Belgium’s primarily French-speaking region, Wallonia and the (bilingual) Brussels-Capital Region maintain a joint representation office in Budapest, operating under the umbrella of the Belgian Embassy. The AWEX (Wallonia Export & Investment Agency) office, in charge of foreign trade promotion in Hungary and foreign investment attraction to these regions, is headed by Edit Ránky as Trade and Investment Counselor who explains to Diplomacy&Trade the tasks and activities they are entrusted with and how they have managed to cope with the challenging conditions of the past few years. such as Hungarian export and investment agencies (HEPA, HIPA).

Challenges to cope with

Valuable partners Edit Ránky, who has been the head of the Budapest AWEX office since 2010, emphasizes that they are a small office with two people, herself and her assistant. At the top of the network that helps their work is the Belgian Embassy and Ambassador Peinen, himself, with whom they have very good relations, helping each other and sharing all relevant information. “We also have a good relationship with the various chambers of commerce and industry, not only at the Hungarian regional level, but also bilaterally. Whenever I visit the countryside

with the Ambassador, we meet with the mayor, the president of the local assembly, the regional chamber of commerce, the agricultural chamber to try to get to know the region, its representatives and the outstanding sectors there,” she says. She also mentions the Belgian Business Club, which is a “very pleasant and excellent platform for networking among the Belgian-Hungarian business community” and has existed as a legal entity since 2015. Edit Ránky herself is a member of their board. Of course, the AWEX office also in contact with other organizations,

As Edit Ránky notes, AWEX CEO, Pascale Delcomminette, has recently given an interview about how the world has changed. On the one hand, the new coronavirus epidemic had quite a serious impact on the Walloon economy and on exporting companies. The situation has been exacerbated by the fact that last year, there was a huge flood, which caused a lot of damage to companies in the Liège area. This also had a very negative impact on economic development. Obviously, there are priority focus areas and related clusters that outline the main directions. Wallonia's strengths include engineering, aerospace, aeronautics or even agriculture; everything that goes on in pharmaceuticals, and that includes IT and film in all its forms, digitalization, mechanical engineering, smart solutions technologies, environmental protection. “In all these areas, there are very prominent companies in Wallonia. But more than that, it is not only the COVID-19 pandemic that has hit us all, but also the current economic situation, which is the result of politics, of war, which is creating a great crisis, not only in Wallonia but all over the world. We therefore need new strategies, new solutions, creative and precise objectives, especially in sectors that are very, very affected. In fact, there is hardly any sector that is not affected, and this is only the beginning,” the Counselor stresses. In conclusion, she says she is very optimistic. “I am in a position, or adapting to this situation – because it is a new situation for me too – to draw on the reserves of creativity and the new tools that have been brought, in part, by the pandemic and I am thinking here of Internet communication, such as ‘Zoom’, which has become an everyday means of communication. All these help us to achieve the objectives and overcome the problems of inflation and other shortages of raw materials that are affecting Wallonia, as I think they will affect also Hungary and others. It will definitely require flexibility, adaptation and creativity to survive this crisis.”

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Regarding the largest Walloon investors in Hungary, they include Schréder, a company, producing lighting systems, founded 115 years ago in Liège, that operates the former Tungsram manufacturing facility in Pilisszentiván, near Budapest. Carmeuse is involved in lime production, from a limestone quarry in Beremend, in southern Hungary, which is used in steel production, fertilizer production, etc. It is owned by a large Belgian aristocratic family. Atenor is a real estate development firm focusing on the construction of eco-friendly buildings like the Váci Greens office complex in Budapest. GSK (GlaxoSmithKline) Biologicals is present in Gödöllő, east of Budapest, and it plays an important role in the production of childhood, adolescent and adult vaccines. Weerts Group, a family-owned Belgian enterprise is engaged in creating a huge logistics base in Ecser, just outside Budapest, near the capital’s airport. FN Herstal: its subsidiary, Browning is to produce 30,000 weapons a year in Kaposvár, in southern Hungary.

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DÁVID HARANGOZÓ

Assisting the firms of Wallonia “In the case of the Budapest office, we represent not only the Walloon Region and the Brussels Capital Region but also the Grand Duchy of Luxembourg. In fact, we are supported by the Walloon companies' tax euros, so we provide a service to them, more specifically to those companies that AWEX considers exportable. They are entitled to this service throughout the world,” Edit Ránky highlights. In the different countries, they can contact the local representative office and tell them what they need: information, distributor, partner, etc. “In the case of Hungary, it is our job to receive this request and find the best channels and the best information to enable the company to export, find a partner, sell its goods. We don't just help them with information, we always encourage them to come in person, because there is a much bigger culture of personal contacts in Hungary. It is a question of trust. Then, they can see who they are dealing with, they can see the headquarters of the Hungarian company and they have a feeling about how serious this company is. In addition to our traditional methods, we also try to collect information through the contact system we have built up, so that we can offer the best to Walloon companies and provide them with the most accurate information. If they come, we also organize their trip. They can meet the potential Hungarian partner at their premises or even at our office. We also try to follow up the dossiers and collect feedback. We have a data sheet and we try to get feedback on how fast, how well we worked, how the Walloon companies found our service. This is not particularly demanded at AWEX, but I insist on seeing how successfully we are doing our job,” she adds.

The volume of exports from Wallonia to Hungary (which ranks 18th among the destination countries of Walloon exports) have shown a steady increase in the past few years. In 2020, they reached EUR 385.39 million while this figure for the first nine months of 2021 was EUR 289.82 million, predicting a slight annual increase despite the pandemic. As for Hungarian exports to Wallonia, their volume dropped by over a third to EUR 137.07 million from 2019 to 2020 but the figure for the first nine months of 2021 (EUR 109.37 million) again forecasts a slight increase. Hungary is the 27th largest exporter country to the Walloon region.

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Since Belgium is a federal state, everything to do with exports and investment is a regional competence. At the federal level, there is a Ministry of Foreign Affairs in Belgium, but for everything that concerns the economy, exports and imports, there is a separate government agency. In relation to Wallonia, its agency is run independently by the Walloon Export and Investment Office (AWEX), which has more than a hundred representations all over the globe, all with an independent budget.

ECONOMIC TIES: FACTS AND FIGURES

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belgian focus

AT BORSODI, PEOPLE COME FIRST

ONE OF HUNGARY’S BIGGEST BREWERIES HAS THE HEALTH AND WELL-BEING IF ITS CUSTOMERS IN FOCUS

The elite of Belgian beers All Belgian beers distributed by Borsodi fall into the premium and super premium category. As Zsolt Vuleta puts it, these beers have one thing in common: they are all high-quality premium beers, however, they all cater to a different taste of consumers. Belle-Vue Kriek is a fruity lambic beer that spontaneously ferments and, when matured, acquires a sour taste that is in harmony with the fruity character. Stella Artois is an elegant, restrained lager beer with more than 600 years of Belgian brewing experience reflected in its harmonious and balanced taste. Hoegaarden’s citrus-light refreshing beer is great to drink at any time of the year. “In Hoegaarden’s portfolio, we can even find Rosée, which is a pairing of Hoegaarden White with raspberries. The last members of our Belgian portfolio are the Leffes, which are abbey specialties. While Leffe Blond is a classic light-bodied, dry, bitter ale, Leffe Dark is a dark Belgian ale with pleasant malt and hop notes and a citrusy, fruity taste. The consumer feedback is very positive, and they are looking for Belgian beer specialties separately, but our Best of Belgium also has individual packaging, which is why we have created an Advent Beer Calendar, which includes 24 excellent Belgian brands,” he adds.

Diversity and successful team culture One of the most important values cherished by Borsodi Brewery is the ‘Put People First’, stating that the key to inclusive diversity is collaboration and a successful team culture. “At Borsodi Brewery, our employees are at the heart of everything we do as they are producing the high-quality beers that our consumers

Helping those in need At Borsodi Brewery, particular attention is paid to responsible alcohol consumption, environmental and social responsibility. As Zsolt Vuleta explains, “during the past two years, the pandemic situation has complicated matters, however, this has not prevented colleagues from participating in volunteering activities. In 2020, we organized a clothing collection for families in need and the homeless in Miskolc and Budapest, and we collected foodstuffs for them during the Christmas period. We also joined the national #non-luxury bag campaign, in which we organized fundraising for homeless women. In 2020, we organized two blood donations together with the Hungarian Red Cross with the participation of 39 helping colleagues. In 2020, the coronavirus epidemic posed significant challenges to families raising school-age children. With the help of the Hungarian Reformed Church Charity Public Benefit Foundation, our company distributed 20 tablets to families in need, thus supporting home learning.” Borsodi Brewery also regularly supports various charity events with its products. This included the National Blood Donation Day held in Miskolc last year, as well as the various activities of the Belgian, Czech and Mexican embassies. The company supported these events with more than HUF two million worth of beer donations.

Responsible alcohol consumption As a member of the Molson Coors multinational group of companies, Borsodi Brewery continuously trains its employees to become credible ambassadors of responsible alcohol consumption, and also places a strong emphasis on responsible brand communication. Zsolt Vuleta emphasizes that Borsodi Brewery is committed to promoting the responsible enjoyment of beer. “It is very important for us that our colleagues become ambassadors not just for our brands, but for responsible drinking. That is why we strive to ensure that when someone joins our company, they are introduced to the principles of responsible drinking during their induction training. This training includes responsible drinking, responsible communication and a beer champion training where colleagues can also learn about non-alcoholic products. At Molson Coors, we have created our global alcohol policy, which includes key principles and guidelines for responsible drinking. This is why all our employees are required to complete a regular training called ‘Alcohol Responsibility: Enjoying our Great Brands Responsibly’. The training offers insight into our employee alcohol policy, tips on responsible drinking and guidance on how to apply this to grow our positive Beer Print sustainability initiative at Borsodi as well. However, at all the events, we organize or support, we try to offer an alternative and make non-alcoholic products available.” In conclusion, the General Manager stresses that “alongside our colleagues, we are doing our best to promote responsible drinking among our consumers. The health and well-being of our customers is of utmost importance to us, as we have demonstrated during the coronavirus pandemic when we were the first brewery to broadcast an ad that was completely filmed during the quarantine to remind all our consumers to behave and drink responsibly and adhere to all health warnings. That is also why we put special emphasis on responsible alcohol consumption in all our campaigns. With our advertisements, we want to educate consumers to be open and familiar with beers of different characters and try different tastes. Beer should be the complementary element of a gathering with friends, an event or a family celebration but, of course, to the extent of responsible consumption!”

Sustainability

demand. This value was demonstrated during the coronavirus pandemic. We are proud to say that despite all the challenges, we not only kept all our colleagues, we even managed to increase our headcount. We take care of everyone who works at the ‘frothy side of life’ by motivating them, providing opportunities to advance and improve themselves, and rewarding excellence,” the General Manager points out. He adds that diversity is not a new topic – neither at Molson Coors Beverage Company, nor at Borsodi. “We should be proud of our achievements to date, but we are on a neverending journey to strengthen our people and ensure that we have a workplace where everyone feels valued, safe and respected, regardless of who they are. In order to become the first choice for our employees, consumers and partners, we are working to build an even more inclusive culture that encourages and supports the diversity of our employees. In the spirit of diversity and inclusion, we all take responsibility

Borsodi Brewery has a sustainability strategy running till 2025. The company considers its ‘Our Imprint’ goals set by Molson Coors Beverage Company for 2025 as guidance for its own operations and sustainability efforts. Since 2019, Borsodi has published a sustainability report to monitor its progress. The three main pillars of this strategy are ‘Responsibly Refreshing’, signaling the intent on educating the public on responsible alcohol consumption; ‘Responsibly brewing’, describing the company’s actions for a sustainable operation and ‘Collectively crafted’, meaning its efforts to give back to the community. “We are proud that Borsodi Brewery has reduced the environmental footprint of its plant in the village of Bőcs in 2020, maintaining the zero waste emissions from production achieved in the past, while reducing water and heat energy consumption,” the General Manager notes. In addition, the company focused on producing consistently high-quality beer. In recognition of this, Borsodi Brewery was awarded in 2020 the IFS International Food Standard Certificate with a high rating of 97.3%. This guarantees that the brewery's 2 0 2 2 / IV

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BORSODI

“One could say that Borsodi Brewery and Belgian beers have a very special and fond relationship. We were the first distributor to popularize the Belgian beer culture here in Hungary. As a company, we put huge emphasis on always improving our portfolio based on the needs and feedback of our customers. That is why we are proud to say that today, Borsodi has the most extensive Belgian beer portfolio on the Hungarian market, which includes popular brands such as Hoegaarden, Stella Artois, Leffe and BelleVue Kriek,” the General Manager highlights.

quality management and food safety management systems are operating at the highest possible level. “We are currently working on our next report for 2021. What we can already say as the most important result from 2021 is that we managed to further fulfill our goal of reducing the ecological imprint of our plant in Bőcs. Also, we have announced to cease the use of PET bottles in the production and distribution of our Borsodi beer,” he adds.

for recognizing and valuing the individuality of our company and doing our best to promote positive change. Our commitment to this topic is shown by the fact that we joined the Hungarian Business Leaders Forum Diversity Charta last year.”

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Having started production in 1973, the history of Borsodi Brewery dates back almost half a century, and it went to private ownership 20 years later when privatized by the Belgian firm Interbrew. In 2012, the latter was taken over by the American-Canadian Molson Coors Brewing Company, the world’s fifth biggest brewer. Borsodi’s General Manager Zsolt Vuleta explains to Diplomacy&Trade how much ‘Belgian’ the brewery has become over the years and what achievements it has had in the fields of sustainability and corporate social responsibility, including the promotion of responsible alcohol consumption.

belgian focus

SMART SOLUTIONS TO PACKAGING CHALLENGES VPK GROUP IS A EUROPEAN INTEGRATED PACKAGING GROUP WITH BELGIAN FAMILY ROOTS

VPK Group looks back close to nine decades of history, providing the current management and staff with plenty of experience in this business. The company is present with production facilities all over Europe, offering economic and ecological packaging solutions to its customers.

the above-mentioned subjects, allowing us to upgrade the sustainability of our supply chain upstream, as well as downstream. As a result, VPK Packaging Salonta received in 2021 the EcoVadis gold medal rating,” he adds.

Smart packaging The VPK plant in Salonta has six people in their TCC (Technical Competence Center) creating smart and sustainable packaging solutions and revising existing packaging to be more sustainable. Moreover, there is a platform and a continuous coordinated exchange of information over the group for this purpose. Bart Dobbelaere notes that recently, the steep cost increase of raw materials, energy and others have pushed the customers even more to new solutions. “We go to the customers with our technical competence officers and we check through their supply chain together what we can do in terms of packaging. That can vary from reducing costs by using lighter types of paper, reducing printing surfaces or number of colors to completely rethinking the packaging.”

As Bart Dobbelaere, the Managing Director at VPK Packaging Salonta in Romania, also responsible for the Hungarian market, highlights to Diplomacy&Trade that VPK started in Belgium in 1935 as a family business with the production of paper. “That is where we have our roots and that is where a family company developed into an international packaging supplier with more than 6.500 committed employees spread over 70 plants in more than twenty countries. What is the extra value of our group? The fact that the company has remained in the hands of the family, where the tradition has been handed over through generations, allows the group to focus on value creation on the long term. Moreover, VPK’s entrepreneurial spirit remained and is present in every fiber of our company. All around the world, our people are given full responsibility and trust, empowered to run our business as if it was their own, as taking ownership triggers initiative. It’s how we attract talent and manage to keep it, despite the fact that we have evolved from a family business into a powerful, privately-owned multinational. Our intrinsic level of accountability is what makes us so great to work for.”

E-commerce as driving force In logistics, the coronavirus pandemic resulted in a growing business with the increasing role of e-commerce. As to how – and how much – it affected the packaging business, the Managing Director states that “the epidemic had a huge impact in the short term. From one month to the other, business went down by as much as 50%. Then, it started to come back over the next two-three months with e-commerce being the big driving force there. Of course, e-commerce means more consumption and this higher demand compensated somehow for the losses suffered due to the pandemic situation. In the past for example, delivering 60 books to a bookstore meant using one box, while delivering 60 books to 60 different addresses means 60 smaller boxes. All this has its challenges including that of sustainability. Right now, next to managing the increasing costs, the challenge for our packaging business is to find the right solutions for every type of e-commerce business, reducing as much as possible the carbon footprint.”

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VPK GROUP

The market in Hungary and Romania When talking about the packaging market in Hungary and Romania, Bart Dobbelaere indicates that these are two completely different markets in terms of behavior, customers, prices, price setting, etc. “The Hungarian market is more saturated, and companies understand the packaging business generally better and realize what value packaging can create for them through the entire supply chain. In Romania, there is an overcapacity of production where competition, especially the ones with new capacity, are challenging the price levels and this unfortunately is detrimental to the service level and/or constant quality in many cases. At VPK Packaging, it is our challenge to explain to the customer that not only the final price as such is important, but also the total cost of using our packaging through their supply chain.”

Sustainability VPK Group has a long tradition of sustainable entrepreneurship. “We have always involved our stakeholders in this journey w w w . d t e u r o p e . c o m

and consistently applied best practices to optimize the use of resources such as raw materials, energy and water, while reducing emissions, effluent and waste. We recycle and re-use almost everything. We go full circle. Thoughtfully investing in patient capital, we outperform and challenge the market with our long-term thinking. Sustainable growth also means well-considered growth. As a reliable partner, we like to involve you in our way of doing business responsibly, by making our mission tangible and even measurable. We’re in it for the long term, and we’ll do it in our way. That’s what makes us great at what we do, the Managing Director explains.

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VPK Packaging Salonta has always been committed to quality. Proof of this endeavor is their long track record in quality certifications, including, among others, ISO 9001, ISO 14001 and BRC-IOP (AA grade). “With EcoVadis, we have raised the bar on our commitment to quality, and more particularly sustainability. As the world’s largest and most trusted provider of business sustainability ratings, EcoVadis has helped us translate and document our existing values and good practices regarding Labor and Human Rights, Ethics and Sustainable Procurement more elaborately into our quality management systems. It challenged us in questioning our approach regarding

belgian focus

INTRODUCING FLANDERS TO HUNGARY FIT BUDAPEST OFFERS MARKET ANALYSES, RESEARCH AND POTENTIAL PARTNERS TO FLEMISH FIRMS

The Flanders Investment & Trade (FIT) representation office in Budapest has two main missions: assisting Flemish companies in their export activities to Hungary and attracting Hungarian investors to Flanders.

The Counsellor highlights that Flanders has active trade relations with Hungary, with trade increasing year by year. Although the year 2020 saw a 7-8% drop due to the global financial crisis, both exports and imports increased the following year by 20%, fully making

up for the previous year's shortfall. In absolute terms, Flemish exports to Hungary amount to EUR 2.7 billion and imports EUR 1.8 billion. Flanders traditionally has a positive external trade balance in this relation. In terms of both exports and imports, machinery and mechanical appliances, chemical and pharmaceutical products and automotive products are the most important product groups. “Based on specific requests received by our office, I see a particular interest from food producers (organic, gluten- or lactose-free, beer, chocolate), machinery and equipment manufacturers, but we also receive frequent enquiries in the fields of sustainable energy, digital technology and pharmaceuticals. There is also high interest in the automotive

industry, a key sector of the Hungarian economy. Flanders is a very open economy, the 16th largest exporter in absolute value worldwide. The region accounts for 80% of Belgium's exports, and this proportion is similar to Hungarian-Belgian and HungarianFlemish economic relations,” she says.

As the Counsellor points out, Flemish exporters usually bring very high quality, good value-for-money products to the Hungarian market, for which it is not difficult to find buyers. “The biggest added value of our office is the local market knowledge, which helps to identify the right contact persons and take the first steps in establishing contacts. After that, it all comes naturally because excellent goods and services sell themselves easily. The major international fairs organized at Hungexpo in Budapest are an excellent way of building contacts and mapping new partners. We usually accompany companies to these fairs. From the Belgian investors' point of view, I would highlight the activities of the Belgian Business Club in Budapest, BelgaBiz. The club currently has about 50 members: representatives of Belgian companies in Hungary and Hungarian companies interested in Belgium. At least one event per month is organized by the club, which provides a very effective framework for networking and orientation. However, it is regrettable that there are so far very few Hungarian investors in Flanders. The pharmaceutical company Richter has a distribution office with 25 people there, but apart from that there are only smaller Hungarian companies with one or two people present in the region. We hope that this will change in the future and that Flanders will

Contacts and partners

The FIT office in Budapest actively cooperates with chambers of commerce and industry, both at national and at county level. Szonja Bender says that “I am in a fortunate position because I spent the first half of my professional career, 11 years in total, working for the Hungarian Chamber of Commerce and Industry (MKIK) in the Budapest headquarters and as head of the Brussels representation, so I have good old contacts in these circles.” Another important group of partners are sectoral associations, innovation and industrial parks, and trade representations and agencies. “They understand and follow their particular area of the economy better than anyone else, and we can also work successfully with their members on the basis of mutual interests. During the pandemic, we organized several webinars, both for trade development and investment promotion. We have promoted Flanders to start-ups as a region with an innovative and supportive ecosystem, where Hungarian spin-offs and scale-ups looking for fast growth can find an excellent breeding ground. This was organized in cooperation with the incubators KBC Start it X and Start it @K&H, a subsidiary of the Belgian bank. In the meat sector, we organized a virtual business meeting with the Belgian Meat Office in Teams – more than 80 bilateral meetings. And we recently organized a seminar with the MKIK on business opportunities in Belgium, including Flanders. Among sectoral associations, we regularly work, for example, with the Association of Hungarian Automotive Component Manufacturers (MAJOSZ) and through them with the Zalazone automotive proving ground, where we will be taking a Flemish business delegation this fall,” she highlights.

Main investors Belgium is among the ten largest foreign investors in Hungary and Flanders has a fair share in investment relations with Hungary. The majority of Flemish investors established their subsidiaries in Hungary in the early 2000s. The flagship Flemish investor is KBC with its Hungarian subsidiary K&H bank. Among the larger manufacturing companies, 2 0 2 2 / IV

DÁVID HARANGOZÓ

Bilateral trade

Knowing the local market

become a more popular investment destination for Hungarian companies.”

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As the head of the office, Trade & Investment Counsellor Szonja Bender, explains to Diplomacy&Trade, most of the Flemish companies who contact their office are newcomers to the Hungarian market. “We provide them with market analyses, research and a list of potential partners, linking them with sectoral associations. A small number of exporters already had experience in the CEE region, possibly also in Hungary. For them, we usually carry out a more targeted business partner search by compiling a short list with direct contacts to companies with whom they can expand their partner base in Hungary. In most cases, a representative of the Flemish company will personally visit us during this phase and our office will organize bilateral meetings. About once a year, we receive Flemish companies in the form of business delegations organized either by FIT or VOKA (Flemish Chambers of Commerce and Industry). The latest such mission took place this past September when 20 Flemish companies visited Budapest with a multisectoral delegation. We organized two days of business meetings in a hotel, bringing together nearly a hundred Hungarian partners for them. It was very successful and it actually was the first physical visit abroad organized by FIT since the pandemic closures. The Flemish companies were very happy to be able to travel again in person for export development. Feedback showed that more than half of the participants had already signed a contract with a Hungarian distributor after the mission.”

Szonja Bender mentions Samsonite's plant in Szekszárd; Resilux's plant in Tuzsér, producing PET bottle preforms; Stephex's horse trailer company in Székesfehérvár; Krismar in Pákozd, with a similar profile; Soudal's logistics distribution center in Budaörs; and Pacapime's cardboard factory in Mórahalom. For Flemish investors, Hungary is still an attractive location, especially because of the improving absorption capacity of the Hungarian market, and there are ongoing expansions of Belgian-owned factories in Hungary, she adds.

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FOCUS ON INNOVATION AND THE CUSTOMER

SOUDAL'S PRODUCT PORTFOLIO IS DEVELOPED TO MEET THE INCREASING DEMANDS OF THE CONSTRUCTION INDUSTRY

The Soudal Group is the largest independent European manufacturer of sealants, adhesives and polyurethane foams for professional and private users. The Belgian family business was founded by Vic Swerts in 1966, with its Hungarian branch set up 33 years later, in May 1999, in Budapest. As Country Manager János Oltyán explains to Diplomacy&Trade, “at that time, we rented a warehouse with offices in a suburb of Budapest. We started with the typical Belgian concept ‘step by step’ and so, the company was also built up like that in terms of personnel. For several years, we could count on customers who had been buying directly from the Belgian HQ. At that time, the competitors were raging on the market, and when we visited a customer, it looked like the market was already full and all cards had been played ahead. Of course, over the years, the Soudal team has proved that this is not the case. We have learned a lot and developed on the market. We focus a lot on product training for our own employees and especially for customers or professional end users. In recent years, we have put a lot of focus on online marketing and it has been proven that there is very good support for our promotion activities. We bought the current HQ building in the Budaörs Industrial Park, just outside Budapest, in 2005, which, in retrospect, was a very good decision for a long-term investment, which still serves us and will continue to do so in the future.”

Year of foundation Purchase of the HQ central building The company achieved a turnover of HUF 1 billion SAP B1: introduction of a professional corporate governance system Start up technical manager concept in the professional segment Organization of a central European consignment warehouse Introduction of CRM customer management system SAP R3: introduction of a professional corporate governance system Start up on SEE region the Marketing and Technical sales support. The company achieved a turnover of HUF 5.5 billion (competitor for second place is at HUF 2 billion)

Hungarian contribution to R&D

JÁNOS OLTYÁ N A ND VI C S W E RT S

Market leader Soudal is an international player and expert in chemical construction specialties and is the market leader in Hungary in this product segment. In 2021, with PU foams, they had over 50% market share and over 25% sealants – about 35% in total. “Our activity is highly dependent on the performance of the construction industry, so, in recent years we cannot complain because the government has made strong stimulating measures to make this industry the ‘main driver’ of the economy. We have developed our product portfolio in this direction in order to be able to meet the expectations dictated by the industry. The biggest part of the building industry has been the insulation in recent years and it will remain so in the future due to the energy crisis. Another strong segment is the window and door manufacturing and installation.

Soudal has a long-term vision for innovation with substantial investment in research and development and with adaptations to local market requirements. Soudal was the first on the Hungarian market to spread hybrid adhesives and sealants instead of selling products with containing solvents. Their FIX ALL range is very popular. In addition, with their EASY BOND foam adhesive, they were also the first to start trading and shaping the market. I am convinced that SOUDAL is one of the most innovative companies in the world, sensitive to trends and expectations of different markets, which is only possible by paying attention to employees and clients. “The GENIUS GUN, a one-handed foam, is a world patent, which also received an innovation award and we are very proud of the fact that there is a Hungarian aspect to this development, a Hungarian engineer also took part in the design process. It was a big and risky switch from traditional foam in 2015, but it exceeded all of our expectations,” he adds.

makes the work processes more efficient and smoother and without paper-based documentation. In this area, too, innovative solutions are constantly being developed.”

Top company – top team Soudal is one of the main sponsors of Belgian cyclists participating at the Giro d’Italia race that starts from Hungary this year. As for the values that are common both at Soudal and cycling, János Oltyán puts it simply with a smile: “a TOP company can only have a top team! I could list all the common values like perseverance, will, organization, commitment. This decision of sponsorship was also a hit, we never thought that there would be so many fans among our customers. We joined this sponsorship at a time when the popularity of cycling is increasing in Hungary. It's a very strong motivation for our sales team, it's a very good reason to be proud, after all, LOTTO SOUDAL is one of the best teams in this sport,” the Country Manager concludes.

Good reputation The Soudal Group is a pioneer in developing sustainable products that are safe for people and the environment. The Country Manager notes that “after having been active in Hungary for 22 years, I can say that we have a very good reputation. Through these years, we have built a strong trust with our customers. Even during the crises (2008-2011, 2020), they could count on us and stayed loyal. We were only able to achieve constant innovation through the innovative products as well as in our organization. That is the only way to maintain stability. Of course, you also need strong support from the parent company, as this is the only way you can take on and keep responsibility. Using continuously improved IT and ERP system offers many opportunities for digitization, which 2 0 2 2 / IV

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SOUDAL, ISTVÁN RUFF

When Soudal bought the building, the idea was that it would be very suitable for an East European distribution center. It works as a consignment warehouse from where they supply the ex-Yugoslav countries and Bulgaria. As the Country Manager points out, it is quite a complex task, but “together with the Belgian planning team, we're doing it quite well. Over time, we would also have to do enormous remodeling to increase capacity in 2007. In addition, part of the warehouse had to be rebuilt to be fireproof. That was an investment of EUR 233,000. There is now space for more than 1,500 pallets with four forklifts, seven warehouse workers and with three logistics crews. We can say that we work with high efficiency, the total incoming and outgoing goods quantity is over 17,000,000 pieces, in PU foams and silicones, which is about 10,200 tons a year. Since starting supplying this southern region, this area has been expanding with new customers year after year, which spurs us on to be more effective.”

1999 2005 2006 2009 2010 2012 2017 2018 2019 2021

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Regional center

SOUDAL HUNGARY MILESTONES:

Since the beginning, we have had a constant focus on this professional channel, and thus, Soudal has become a household name in this segment. Despite the war in Ukraine, an energy crisis, a shortage of raw materials and the still present epidemic, we are optimistic because our parent company has recently also come up with many innovative solutions for the end user who can save time and energy. There is also a strong trend for recycling products, a general trend in building material production. This could be a breakthrough in tackling raw material shortages, which have been a clear aspiration in recent months. We already have end products that are made from recycled materials and not just the packaging materials. That shows how quickly Soudal can adapt to a quick turnaround and it indicates that the focus on innovation is always there,” János Oltyán highights.

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„Dedicated to creating value for our clients throughout and beyond the development process.”

Weerts Logistics Parks is a developer of state-of-the -art logistics real estate for 3PL’s and end-users. Our expertise as a logistic operator allows us to develop projects designed to meet our clients’ expectations in the best available locations.

WLP has 1,000,000 sqm under development in : • Belgium • Netherlands • Germany • France • The United Kingdom • Hungary • Italy

www.weertslogisticsparks.com

Additionally, it has an extensive international land bank on strategic locations.

belgian focus

WEERTS: RIDING THE WAVE OF GROWTH DEVELOPING INDUSTRIAL PARKS THAT WORK WELL FROM AN END-USER’S POINT OF VIEW

The Weerts Group is a Belgian family-owned business headquartered in Liège with operations also in four other European countries, including Hungary where the Group first appeared in the year 2000.

Family involvement

High quality logistics buildings The Group entered the Hungarian market in 1996 at the request of one of its clients. “We were supplying logistics and warehousing services to Danone and they wanted to expand to Hungary, so they requested that we be their provider here as well. We built a small (5,000-sqm) warehouse for them in Budapest’s 17th district, which was sold as part of our transport business in 2008. Following a pause of a few years, we re-entered the Hungarian market in 2016 with a focus on developing smaller warehouses for SMEs. Since then, we have sold over 65,000 square meters of SME warehouse space to over 60 companies.

In recent years, we have built off our experience throughout Europe of developing logistics parks by adding big box logistics developments to our offerings here in Hungary. We now develop high quality logistics buildings for lease, as well as ready-to-build plots of land for developers. While there is plenty of land currently for sale throughout Hungary, we have found that many developers do not have the time (or want to take the risks) of rezoning and performing the necessary infrastructure developments to develop on what was previously farmland. It can be a bit time-consuming (compared to some countries) before you actually obtain the building permit. Because of this, we see a strong demand for properties that are ready to be built with a valid permit,” the CEO explains.

Reasons for growth in the logistics market The logistics sector has been a winner during the epidemic as the rise of e-commerce is creating additional warehousing needs. As to what extent the Group has managed to take advantage of this sudden situation, Pascal Weerts points out that “while the growth of the e-commerce business has certainly been a boon for the logistics sector, we see this

as only one contributing factor to the current growth in the market. Another change in the current business model is a move away from just-in-time (JIT) manufacturing. It worked well to reduce warehousing costs until the disruption in the supply chain, caused by the COVID-19 pandemic, resulted in factories shutting down. Companies became more aware of how much risk they accept by using a JIT model and are now moving more to a just-in-case model. Another major change is the re-consideration of where to store goods. As transport costs have gone up, companies are turning to re-shoring and becoming less reliant on Asia.”

Scaling up operations in Hungary As one of the Group’s latest investments in Hungary, in the summer of 2020, Weerts purchased a plot in Ecser, next to the M0 ring road and near the Ferenc Liszt International Airport to create a 120,000-sqm warehouse. “This was (at the time) our largest investment to date in Hungary. After much work to make sure that we met both our own needs for the plot as well as the concerns of the local municipality, we finally started construction of the first 40,000-sqm building at the end of 2021. Around that time, we sold the project as a ready-to-build plot

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Continuing growth As regards the European and Hungarian logistics markets in the years to come and the place of Weerts Group on these markets, the Group CEO is of the view that “there certainly are many challenges to the current market. Besides the pandemic in Europe, we see disruptions caused by the Ukraine war, the breakdown of global supply chains and China’s zero COVID-19 policy. Despite these challenges, the logistics market is still currently growing. We see this growth continuing in the coming years throughout Europe including Hungary. We believe that in Hungary, the growth will accelerate not just in the Budapest region, but especially in major industrial centers throughout the country. Weerts Group is in a good position to ride this wave of growth by having a strong local team backed by the expertise and experience of our team in Belgium.”

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STUDIO COSMO

as CEO, bringing with him a wealth of experience from his background in law. The Weerts Group now has over a million square meters of logistics warehouse space under development in seven countries throughout Europe. With Yves and Pascal Weerts being the sole owners of the group and both being involved in the day-to-day management, one of the strong points at Weerts Group is short decision lines. This, combined with a wealth of experience and an ever-stronger balance sheet, makes for a compelling proposition for its clients and partners.

The Weerts Group has major international operations but still, they have managed to preserve the family enterprise aspect of their business, according to Pascal Weerts. “We believe in the business model of family ownership with a strongly engaged shareholder with a long-term view. As stated earlier, our background is a family-run logistics company. Our chairman, Yves Weerts drove trucks himself in his early years after joining the family business. We feel that this history has given us a very valuable perspective in knowing exactly what it is like to be a tenant of a logistics building and this allows us to develop industrial parks that work well from an end-user’s point of view. In our experience, family involvement has been a strong motivator for our team.”

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The Weerts Group was established before 1945 as an agricultural transport company with one truck driven by Hubert Weerts operating in and around Teuven, a small village in the Voeren region of Belgium. After a short break during WW II, the company was restarted in 1945 by Hubert Weerts and his only son, Joseph Weerts (Sr.). From 1960 onwards, the company began to develop into a national and international transport firm (‘Transports Weerts & Fils’), primarily driven by Léa Kremers (Joseph’s spouse) and her sons Pierre and Lambert, the CEO of the Weerts Group, Pascal Weerts highlights the major stages of the history of the Group to Diplomacy & Trade. “The company originally was a pure road transport company, but in 1989, construction started of our first industrial warehouse in Hauts-Sarts in the Liège region in Belgium (54,000 sqm). This marked our transition from a pure logistics player to an integrated services provider. In 1994, at the age of 26, Yves Weerts (Pierre’s son) became the CEO after the unexpected and sudden death of his father. After this time, we continued our expansion as an integrated transport and logistics services provider throughout Europe including expanding into Hungary in 1996. In 2008, we sold our transport division to focus on real estate, warehousing and addedvalue logistics services,” he adds. Since 2008, the Group has continued to grow its real estate business with expansion outside of big box logistics to residential, office, and (in Hungary) SME warehouse development. The group has also expanded into motorsport in 2009. Its racing team WRT is generally considered to be one of the leading endurance racing outfits in the world. Pascal Weerts joined the management team in 2017

to CTP Hungary, a major real estate developer in this country, as part of a package deal that included a finalized 46,000-sqm development as well as another ready-to-build 15-hectare plot in nearby Nagytarcsa. We simultaneously used this opportunity to scale up our Hungary operation with the purchase of a 66-hectare plot in Vecsés, also in the area, that will have a total of 205,000 square meters of big box logistics as well as 36,000 square meters of smaller buildings for SME clients,” the CEO highlights.

belgian focus

A TOUCH OF BELGIAN HOSPITALITY

THE THREE CORNERS HOTELS IS ABOUT TO OPEN A FOUR-STAR HOTEL IN THE HEART OF BUDAPEST

It is already ten years that The Three Corners Hotels entered the Hungarian market, following previous 25 years of successful hotel operations at the Red Sea in Egypt. The acquisition of Hotel Art *** Superior, back in early 2013, was a milestone, and the company went steadily forward ever since. It is now operating three very successful boutique type hotels in Budapest, in the 3- and 4-star market, each with its own identity and character. All hotels have however one thing in common: a true Belgian Hospitality spirit! When asked about the secret of success, the CEO of The Three Corners Hotels & Resorts, Didier Lambrecht, smiles happily. He simply says it comes down to encouraging and empowering the staff to deliver The Three Corners Promises under the umbrella of ‘A Touch of Belgian Hospitality’. He continues explaining the core values of the Budapest based hotels by saying that “all our Budapest hotels offer excellent locations and diverse services and facilities. The boutique type city hotels, each with its own personality and characteristics, offer accommodation in the 3-star Superior and 4-star category. Besides that, our staff is well trained and passionate on delivering our Belgian Hospitality Spirit: from our ‘Sweet Dreams’ concept with ultra-comfortable beds, fine linen and choice of pillows, to the ‘Wake-Up-With–Us’ experience offering you a delight full breakfast to start your day.”

friends, work and family, be it from their room or our comfy lounge and lobby.”

Stay connected

Successfully coping with the challenges

The CEO adds that their ‘Surprise & Delight’ approach will enhance their guests’ perfect stay in Budapest, whilst enjoying the free coffee facilities, luggage services, friendly bar prices and much more. And last, but not least, Didier Lambrecht adds, “we focus on our technology promise ‘Stay Connected’, ensuring our customers’ personal entertainment and connectivity to their

In the previous Belgian Focus, published in the December 2019 issue of Diplomacy&Trade, Didier Lambrecht said “You must change in order to remain the same!“ As to how much The Three Corners lived up to this strategy since then, he stresses that “yes, we did change a lot. The worldwide pandemic taught us many lessons and I am very proud that we could secure our operations both

in Egypt and in Budapest. In the past two years, constant change and flexibility was something which helped us to remain the same, namely being successful. Furthermore, the strategies we developed during the pandemic have contributed to maintain our ‘pole position’ in the Budapest market. We equally developed and invested in new technologies and launched a completely new website. I am proud to say that we managed to keep most of our employees and when the time arrived, we were ready to welcome our guests with the brightest smile!”

The Three Corners believes in the Budapest market

Elaborating on this new hotel opening, Didier Lambrecht highlights that The Three Corners Downtown Edition Hotel**** enjoys a truly privileged location in the heart of the capital city of Hungary, hence its name. “We look at Budapest as the ‘Spice of Central Europe’: the city embraces unique architecture and this has been the main source of inspiration for our unique interior design,” the CEO continues. Besides the 70 guest rooms and four luxury suites, The Three Corners Downtown Edition Hotel offers a complete range of 4-star services and amenities, such as spacious lobby with bar, meeting rooms, complete wellness, outdoor facilities and on-site parking. “We are confident that this new hotspot in Budapest will please the most demanding traveller,” he adds.

With sustainability in mind In conclusion, the CEO of The Three Corners Hotels & Resorts emphasizes that “we will continue our sustainable growth! A 5th new hotel project is in the pipeline, with yet again a fabulous location, just off Andrássy boulevard, nestled in a historic building of the 19th century in the Hungarian capital. This future 4-star hotel is now in its development phase and we anticipate the opening in late 2023.” (X) FOR FURTHER INFORMATION on The Three Corners Hotels, visit www.threecorners.com

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THE THREE CORNERS HOTELS, ZSOLT VENCZEL PHOTOGRAPHY

As regards to the Budapest hotel market today and in the near future, the CEO confirms that the pandemic was not an easy time for the global tourism industry “but the worst is already behind us and customers are eager to travel again! Budapest is not an exception to this global trend and we can see increasing occupancies for the last couple of months.” During these past two years, the hotel chain focused on their strengths and development opportunities as they firmly believe in Budapest and its future tourism growth potential. “As a result of that, we are very happy to confirm that we will open in early summer of this year, a brand new 4-star hotel in the very heart of the city!”

Downtown Edition

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witty leaks WITTY

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

LE A K S AMBASSADOR AT THE FARMERS’ MARKET

A VIEW THROUGH THE EYES OF AN OUTSIDER WHOSE HUNGARIAN FRIENDS HAVE HELPED TO QUICKLY BECOME AN INSIDER BY THE AMBASSADOR OF BULGARIA TO HUNGARY, CHRISTO POLENDAKOV

Hungarian air, drinking the Hungarian water (…and wines) and eating the Hungarian bread (… which is uniquely diverse and delicious), I acquired even more friends who all made my life in Hungary so much more enjoyable, rewarding and with added new knowledge.

The memory of Bulgarian gardeners Furthermore, the Krisztina Square market experiences keep reminding me of the stories of the Bulgarian gardeners who have chosen Hungary as their place to work and live in the late 19th century. They have been both popular producers of vegetables through state-of-the-art methods of seeding and irrigation and retailers of their produce directly to the customers. They brought the seeds and their knowledge of when and how to plant them, when and how to water them, when and how to harvest them and when and how to bring them to the table of the Hungarian customers. I believe that this is the secret of the successful integration of the Bulgarian gardeners into the Hungarian society and this is why they were and still are so well accepted and respected by the Hungarians.

The cobblestone connection

As I was not so fortunate to get to learn the Hungarian language before my assignment, upon my arrival to Budapest, I had to sharpen all my senses and to employ all alternative means of communication in order to successfully interact and befriend Hungarians at all levels. Throughout my first year of breathing the

In this new chapter of my life most memorable is the first Saturday in Budapest when my friend Peter invited me to join him for buying groceries at the Krisztina téri termelői piac (‘Krisztina Square Farmers' Market’), as early as 07.30 in the morning. This unique temporary farmers’ market, which emerges only on Saturday mornings in the shadow of the Our Lady of the Snows Parish Church, immediately enchanted me with its yellow ceramic cobblestones, which are exactly the same as the ones which pave the central part of the Bulgarian capital Sofia. These yellow cobblestones are indeed completely identical with the iconic pavement of Sofia, which were brought from Hungary in the beginning of the 19th century via freight trains traveling on the ‘Orient Express’ line and to date beautify Sofia’s central part.

A market for all seasons I have now resided for one complete year here in Budapest and have gained true experience of the cycle of Nature through the seasonal products offered at the Krisztina Square market. Easter is approaching again and I look forward to visiting the market where I will be looking for the traditional Hungarian Easter ham and horseradish to go with a loaf of fresh potato bread… and accompanied by a Hungarian white or rosé wine, or by a Bulgarian red (sorry – I believe we do somewhat better in this wine segment)… Thank you, my dear Hungarian Friends!

A stage of sincere human interaction On that frosty but sunny pre-Easter early morning began my direct acquaintance with real Hungary. Everyone at the market knew each other and it seemed that they came together not only to buy and sell, but rather to meet and enjoyably participate in a time-honored ritual. I could observe a trustful exchange of not only goods for money, but also of smiles, handshakes, jokes and small gestures. The market was the stage of that sincere human interaction which our hectic daily routines and tight agendas have been surely and steadily depleting. As I like cooking and really care about the food and beverages to be offered to my family and friends and I also try to always shorten the distance from the farm to the fork, the Krisztina Square market became my new base. Here, I can find everything I need for the week. All products are 100% Hungarian – not only seasonal fruits and vegetables, but also farm milk and eggs, fresh and cured meats and variety of delicious cheeses and breads. Not to be missed are also the beautifully presented flowers, the spices, the pickles, the jams and the honeys. One interacts directly with the proud producers, there is no unnecessary packaging, no prefixed size or number – and all this gives me the pleasure of 2 0 2 2 / IV

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Making local friends Speaking of friends, I have to humbly admit that I am privileged to have made many throughout the places Destiny had taken me to. “Do like the locals do” is the first survival rule for any diplomat and key to quick adaptation and understanding of all processes that really matter at the new posting. If you are lucky, like me, to rely on age-old good Hungarian friends – and here I wish to particularly thank my dear and sincere friend Peter and his family – you can greatly benefit from drinking water directly from the well. Speaking of water-wells in Hungary, I am very proud to also mention the numerous water-fountains built by Bulgarians as per our tradition to pay tribute and to offer free access to the refreshing and cleansing powers of the running water (… but more about these I will share in another specially dedicated article).

partnering with responsible and sustainable farmers. This market regularly supplies me also with the real feeling of the country. Nothing here can be faked or counter-faked.

EMBASSY OF THE REPUBLIC OF BULGARIA, CHRISTO POLENDAKOV

Over a year ago, in the heat of the COVID-19 pandemic, I was designated as the next Bulgarian Ambassador to Hungary. At the time, there were not too many options to travel by air, so I decided to reach Budapest by car and this gave me the freedom to pick the date of my entry. In short, I began my new assignment on the memorable day – March 15, 2021 – as a first tribute to all my Hungarian friends.

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analysis

BALANCING WHILE SITTING ON THE FENCE

capital. So, India may have to reconsider its fairly intimate relations with Russia, if the latter will come under ever stricter economic and financial sanctions, and is cozying up to India’s regional rivals, China and Pakistan. Then New Delhi has to make a detached cost-benefit calculation, and the likely result will be that cooperation with the West (the U.S., the EU, and the Pacific democracies) is more valuable than to stick with the Russians through thick and thin.

INDIA IS IN A DELICATE SITUATION BETWEEN RUSSIA AND WESTERN DEMOCRACIES

The Russian invasion of Ukraine has forced a number of states to take sides – and, sometimes, to make difficult decisions. National interests clash with moral considerations; strategies with tactical steps; and, for the great powers, a careful (re)assessment of the balance of powers both regionally and globally. The most populous state in the world and the largest democracy in the world have opted for sitting on the fence – so far and publicly. Both abstained at the United Nations vote condemning the Russian aggression. They are not likely to get directly involved in the short-term solution of the Russian-Ukrainian conflict, but China and India are bound to play a significant role in shaping the post-conflict world order. At the same time, it is worth mentioning that Russian Foreign Minister Sergei Lavrov met with his Indian counterpart S. Jaishankar, and he was even received by Narendra Modi, though the Indian Prime Minister rarely meets officials of lower ranks.

Energy and arms India was traditionally quite close to the Soviet Union and is now to Russia. (It even recognized Russia’s ’legitimate interests’ in Ukraine in 2014.) New Delhi saw the Soviet Union in the past, and sees Russia nowadays as well, as a reliable partner. The two countries do not have any conflict of interests. Their bilateral trade is not of exceptional importance for either of them, the USD 8.1 billion trade volume between April 2020 and March 2021 was far behind the EU-India one of USD 68.5 billion. As for energy sources, Russia’s share in India’s oil imports amounts to some 2.1% of the total (eight other countries precede Russia in this field), and the recent agreement to buy additional six million barrels a month is also just a drop in the basket. However, India’s arsenal is predominantly Russian-made: estimates run between 60-85% of the total. Here, New Delhi has made efforts to somewhat diversify its arms purchases. In concluded, among

others, an arms sales contract worth USD 16 billion with the United States in 2008. Moreover, the two countries also signed a nuclear technology deal, ostensibly for civilian purposes, but given the fact that India’s archrival in the region, Pakistan, is cooperating with China in this field, the U.S.-Indian nuclear technology transfer agreement acquires special importance.

Forced to make a cost-benefit calculation On top of it, Russia and China are taking different positions regarding the Kashmir issue: while Moscow supports India’s claim over the territory diplomatically, China tends to side with Pakistan – which is also seen as an important link in the Chinese Belt and Road Initiative (BRI). Moreover, the Pakistanis have recently made friendly gestures towards Russia; Imran Khan was just visiting Moscow when the Russians launched their attack on Ukraine, and the Pakistani Prime Minister’s reaction was only talking about the ’exciting time’ he was spending in the Russian 2 0 2 2 / IV

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BY TAMÁS MAGYARICS

India seems to be hedging her bets regarding China as well. China has been pursuing a similar policy such as India with reference to the Russian-Ukrainian conflict so far, but each major power, including the U.S. and India, is watching very carefully what Beijing is doing, and what it is likely to do. India has had quite a rocky relationship with China since the early 1960s; the latest border clashes claimed lives of border guards on both sides in 2020. India joined the U.S., Japan, and Australia in the so-called Quad in the 2000s. Nominally, it is an informal group of democracies, but there is an unmistakable underlying security concern in this cooperation. Thus, for instance, common platforms are developed by the four members to improve interoperability in military matters too. It seems that India in the strategic triangle of the Indo-Pacific region (U.S.-China-India) tends to be drawing closer to America. This subtle shift may be motivated by the recent Chinese-Russian understanding which knows ’no limits’ – though in fact, seeing Beijing balancing act in the RussianUkrainian conflict, the Chinese commitment should not be taken verbatim. Nevertheless, this cautious shift should not be overvalued. India’s aspiration is to achieve strategic autonomy, which includes, among others, a pragmatic foreign and security policy which is not constrained by ideological considerations. Pragmatism, carried to extremes, may have its downside: President Joe Biden has already expressed frustration saying that, in contrast with Japan and Australia, India has responded somewhat ’shaky’ to the Russian aggression. The Indian government should also think carefully about the potential scenarios regarding another strategic triangle, that of China, India and Russia. The current Western policies may drive Russia closer to China. It seems that no matter what the outcome of the RussianUkrainian conflict will be, Moscow will get weakened and, in case the current ChineseRussian strategic cooperation remains, it will be the junior partner in this relationship. This potential setup may be unfavorable for India as Russia may be forced to tilt towards Beijing in case of a future conflict between the two Asian giants. In such a scenario New Delhi will not be able to count on Russian support in its territorial dispute with China or, for that matter, with Pakistan either. The (proxy) war in Ukraine is a huge challenge to the great powers which are not directly involved in it too. They may have to make decisions which are bound to restructure their international relations with peer rivals regionally and globally alike. India is one of them; sitting on the fence is not likely an option that can be sustained without end. Tamás Magyarics is a foreign policy analyst

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The Quad rather than Russia-China

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diversity

EU DIVERSITY MONTH 2022 BUILDING BRIDGES BETWEEN ORGANIZATIONS AND AREAS OF INCLUSION AND DIVERSITY POLICY Equality and diversity are a top priority for the European Commission. To fight discrimination and push for more equal societies, the Commission has adopted a proactive approach, with targeted action plans and measures. Diversity Charters encourage organizations (NGOs, public bodies and private companies) to develop and implement diversity and inclusion policies and practices. In order to raise awareness about the importance of diversity and inclusion in the workplace and across society, an annual EU Diversity Month is organized. In Hungary, the coordinative organizer of the local Diversity Month, which takes place in May, is the Hungarian Business Leaders Forum (HBLF). As Jobsgarden Managing Director Zsuzsa Gárdus, a HBLF board member in charge for the Hungarian Diversity Charter coordination, explains to Diplomacy&Trade, the European Commission has a long-standing commitment to promoting diversity and inclusion and combating discrimination through legislative action. These measures have helped to improve equality and have enabled millions of people to reach their full potential. “At the same time, we all need to work together to create an equal and inclusive environment, including public institutions, private businesses, nonprofit organizations and cities. Especially now, during the COVID-19 pandemic when diversity and inclusion are at risk.”

Diversity Charters Under the initiative of – and with funding from – the European Commission, the EU Platform of Diversity Charters was created in 2010, offering a place for existing European Diversity Charters (currently 26) to exchange and share experience and good practices more easily through Platform meetings, expert seminars and annual high-level forums. The HBLF board member highlights that Diversity Charters encourage organizations (NGOs, public bodies, private companies, etc.) to develop and implement diversity and inclusion policies. By signing a charter, the given organization voluntarily commits to promote diversity and equal opportunities in the workplace, regardless of, for example, age, disability, gender, race or ethnic origin, religion or sexual orientation. Becoming a signatory to a Diversity Charter provides, for example, access to vast peer network, publications and supporting tools for benchmarking, measuring and monitoring. Through the platform, promoters can meet regularly, to share their experience and develop common tools.

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TAMÁS VARGA

Promoting diversity in Hungary Project manager of the Diversity Month 2022 at HBLF, Mandy Fertetics points out that this initiative celebrates organizations’ efforts in promoting diversity and diverse teams in the workplace and in creating inclusive working environments. “The Hungarian Business Leaders Forum is driving the w w w . d t e u r o p e . c o m

MA N DY F E R T E T IC S A N D Z SU Z SA G Á R D U S

Charter in Hungary and is the coordinative organizer of the local Diversity Month. HBLF is encouraging organizations to organize virtual, hybrid or internal awareness-raising workshops for employees, round-table discussions with experts, share best practices for a commonly used toolkit, organize a social media campaign, collaborate with non-profit organizations or volunteers: be creative and make diversity visible within your organization, despite the pandemic. We want to spread awareness about the topic, good practices and encourage discussions and change.”

Building bridges This year's European Diversity Month focuses on 'building bridges'. “By building bridges between organizations and areas of inclusion and diversity policy (race, gender, age, etc.), we want to encourage any organization to build partnerships with NGOs, research and educational institutions, other business organizations, governmental institutions, other companies or civil society to work together to promote and improve diversity. We would also like you to build bridges between the different aspects of diversity and make sure that your policies and activities are more intersectional,” Zsuzsa Gárdus says. Mandy Fertetics notes that “when we think about the UN Sustainable development goals that articulate the 17 most important areas of global and local sustainability challenges, or we look on current business crisis, we immediately recognize that all these challenges cannot be managed by only one organization, one industry or any

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individual. Cooperation, partnership is a must to understand and tackle complex problems and challenges and to find effective solutions. For this reason, the idea of building bridges is not new for any company, neither in Hungary, or elsewhere in the world. Diversity and inclusion are among these challenges. Discrimination is mostly based on prejudices and stereotypes and habits and routines. By building bridges, we resolve these boundaries to create inclusivity for all.”

Diversity management at the workplace As the EU Commissioner for Equality, Helena Dalli says, diversity management at the workplace must be one of the main human resources priorities for any employer on Europe. As to how widespread diversity management at workplaces in Hungary is, Zsuzsa Gárdus is of the view that the level of maturity varies among companies in this country (and the world). “Although we still have a lot of firms that just state in a policy their anti-discrimination values, we have more and more companies that have already great trainings, recruitment processes, diversity and inclusion managers or working groups, annual awareness raising programs. It depends on the life cycle of the company, in which sector it is operating, whether diversity is already a business case (for example understanding the diverse portfolio of consumers), etc. and it is also influenced by the owner and their corporate culture. American culture has it already as an integrated element with almost monthly programs also in Hungary as, for example, at Black Rock company or BP,

IBM or Eaton. If the company has big call or tele centers, disabled people are likely to be employed at places like banks. Another good example is shared service centers of global companies, where also cultural diversity is common If a company finds its business case on diversity, it is much easier to create an inclusive culture and every day operation. Another important trigger could be a role model in management: if you have a CEO, an HR director or anybody in the leadership team who can integrate this and stand up for it, this will positively influence the whole company.” Mandy Fertetics agrees, bringing up Shell as a very good example of diversity among board members because the highest decisionmaking body is influencing everything directly and indirectly. “Among this year’s events in Hungary, we will also have a great round table discussion on May 23 about this diversity in decision-making bodies, company boards and similar committees. This diversity can mean much more than having female or external directors – much more. Still female leadership is crucial for our society and economy. We will have, for example, an event at the Dutch Embassy where we will discuss the real or mental existence of the glass ceiling in the business sector and diplomacy – a best practice sharing among women CEOs and ambassadors, or the Oscar-winning X Mentor program where successful women managers are mentoring great potential women towards becoming leaders.” Details and registration to the events: www.sokszinusegikarta.hu/esemenyek

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DISCONNECTING FROM RUSSIAN GAS

Union should be the answer for mitigating these. The expert agrees. “I think Europe should really maintain the liberalized gas and electricity markets. It would be a disaster for Europe if the so-called energy nationalism came back by which I mean that in case of failing to secure the supply – let's say, for some reason, the Russian pipes via Ukraine are cut –, some countries who have stored more gas would say, ‘hey, we don't want to maintain this liberalization anymore because we have the gas. If you don't have gas, that's your problem’.” He believes the best way to treat the situation would be to remain united, maintain this liberalization and maintain the free trade of energy within the region. “Because together, we can definitely cope much better with this situation than all these countries separately. Common funding by EU countries together would represent a serious buying power against Russia. I believe that that there is a significant risk that if the supply is cut, this energy nationalism could come back.” Regarding the high energy prices, his concept is that there will probably be a third energy price boom, which the world has already seen between 1974 and 1982 and also between 2000 and 2008. “This will be kind of a third round of commodity price boom since the 1960s, and which can last for the next 5-10 years. This means we will see even higher energy prices in the future for this period. This will, of course, push all the European nations to try to diversify, try to conserve energy and try to find new solutions in order to secure the supply and offer cheaper alternatives for the European customers.”

EXPERT SAYS EUROPE SHOULD MAINTAIN THE LIBERALIZED GAS AND ELECTRICITY MARKETS

private equity or private capital as the latter prefers longer time for such investments.”

Possible solutions for supply The expert is of the view that Europe can increase the supply by beefing up the infrastructure to acquire more liquid natural gas (LNG). Also, more can be done to increase the gas import through pipelines as the Mediterranean and the Black Sea basins are full of gas. There is plenty of gas, for example, next to the shores of Cyprus. “For that, I think we need a kind of a political agreement with the Cyprus community as well as Turkey and also convince the European oil and gas companies to exploit those gas fields over there. We also have a lot of gas in the Black Sea basin. For that, we should support Romania, for example, to drill in the Black Sea and produce natural gas.” Another example is that of Poland, which started a kind of decoupling from the Russian

What could Hungary do?

EU countries should act together

And that is true for Hungary also. As for the choices of this country for diversification, its dependence on Russian energy resources comes into the picture, the expert notes. “Basically, there are two areas where the vulnerability is high. First is the Russian gas supply. I believe we have to think about alternatives like enlarging the capacity of the energy terminal at Krk in nearby Croatia, pushing, for example, the Romanian offshore gas projects in order to buy more from that direction. And also, on the demand side, we should start a significant conservation program. According to my estimates, insulating Hungarian households in itself could save up to two billion cubic meters of natural gas per year, which is 20% of the Hungarian consumption. It's a lot. So, these are the things we have to do for the next ten years in order to stabilize our position.” The other thing Hungary must think about is the project of the enlargement of the Paks nuclear power station, which is actually financed and built by the Russians, a project that can expect a lot of obstacles in the future. “Just one example: Western energy companies like Siemens are cooperating with the Russians in this project, a cooperation that can no longer be expected to continue. I can't really imagine how this could go on. So, I think Hungary should really consider to start this project again with another partner, not a Russian one, as Russia and Rosatom are going to be unacceptable partners for the future,” Tamás Pletser concludes.

High energy prices have been around even before the Russian invasion. Some suggest that a firm united stand by the European

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DÁVID HARANGOZÓ

In a piece of analysis early this year, Tamás Pletser put the question whether Europe can disconnect from Russian gas. Now, under different circumstances due to the Russian invasion of Ukraine, he believes that Europe can completely cut the Russian gas supply if it wants. “However, unfortunately, it takes a lot of time, roughly ten years, and a lot of money because Europe should invest into new interconnectors, LNG terminals, compressors, and many other things, a hefty investment which we can calculate in EUR billions. Also, the big question is whether Europe should do this investment as while European gas demand is likely to increase for the next 10-15 years but afterwards, the demand is expected to fall rapidly due to the energy transition that Europe is getting through. I suppose if the continent decides to do that, it's most likely to be financed by European Union funds rather than

gas 7-10 years ago already. As Tamás Pletser highlights, “they did the homework what Europe should do now in order to disconnect from the Russian gas. First, they built up a significant LNG terminal capacity in the northern shores of the country. Second, they built out the Baltic Pipe, which will be ready by the end of this year and will bring enough Norwegian gas to completely satisfy the country’s demand. Similar projects are not really present in Europe. Germany, for example, was offered, around 2018-19, a lot of gas from the United States in form of LNG, but the German industrial lobby was very much pushing towards the Nord Stream 2 solution of buying cheaper Russian gas, thinking that Russia is a reliable supplier.” As a historical background, he notes that RussianGerman energy ties that are almost 100 years old. Even during the 1930s, Russia, and the Baku Oil, was the main source of energy for the German industrial movement. “Russia, with the invasion of Ukraine, stepped over a certain line, which should not be tolerated. Therefore, Russia is no longer a reliable supplier. Russia also sent some messages that ‘we will not necessarily supply Europe if Europe is very much negative to us or very much treats us like enemies’. So, I think this relationship now will deteriorate and therefore, in the future, we will buy less gas from Russia.”

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The possible cut of natural gas supply from Russia would have an especially negative impact on Germany and the countries of East Central Europe, including Hungary. What could be done, apart from learning the lesson from being so vulnerable to Russian supplies, in the short term to secure the necessary supply in Hungary and in Europe as a whole? Diplomacy&Trade has discussed these issues with Erste Group’s Oil&Gas Equity Analyst covering EMEA stock markets, Tamás Pletser.

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V.30, A MULTIFUNCTIONAL SPORTS AND EVENT CENTER UNIQUE AND INNOVATIVE EQUIPMENT AND TECHNOLOGY HELP PROVIDE QUALITY SERVICES The Hungarian capital has several sports centers – the latest is the most unique: a new hypermodern, multifunctional sports and event center has been created in the city center that satisfies all needs. It was designed by Miklós Ybl and the Kossuth Prize winning architect, György Skardelli, a regular member of the Hungarian Academy of Arts.

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ÁGNES CSONDOR, ZSOLT HLINKA, GYÖRGY PALKÓ

attached to the ground-floor community space. The unique wooden wall cladding of the sports hall can provide a unique venue for events with organic decoration, where up to 150 guests can be seated for a round-table gala dinner, leaving space for a stage and dance floor. The light coming in through the muscle fiber walls creates a special atmosphere but the room can be completely blacked out if required and the ceiling height of over six meters offers a grandiose decorative and hanging option compared to hotel function rooms in the area with a ceiling height of just over three meters. “In good weather, you can even enjoy a cocktail on the two-story sky terrace, which is also a medium-sized wedding venue, while enjoying the view of Basilica and the atmosphere of the rooftops of Pest. As Ildikó Buranits, the Managing Director of the facility that goes by the name Vadász 30 (or V.30) with reference to the street name and number, highlights to Diplomacy&Trade, the history of the project dates back to the turn of the millennium, when the nearby Molnár Street swimming pool closed down. “Then, in 2017, 5th district mayor Péter Szentgyörgyvölgyi announced that the municipality would start to create a sports complex to meet the needs of the local population. There are gyms in the area but this sports center is unique in the country with a swimming pool, a thermal spa, indoor and outdoor gyms, an innovative Prama room, a sports hall and a multifunctional event space. Visitors holding a registered permanent address from District 5 are given discounts and all new guests are offered promotions to experience V.30. Students from kindergartens and schools in the district come to this place in the mornings for daily physical education and compulsory swimming, and return in the afternoons for swimming lessons, volleyball, handball and children's yoga. In addition, employees from office buildings in the area drop in before work from 6 a.m. to swim and use our gym, which is equipped with top-of-the-line equipment and has multilingual personal trainers at hand. Embassy staff in the area are regulars in our wellness area with thermal pool, saunas, jacuzzi, steam and infrared cabins.”

Multifunctional center In the facility, guests can swim, recharge in our thermal pool, take a sauna, relax in the steam, or even work out and climb a wall, Ildikó Buranits explains the multifunctionality of the premises. “In our sports hall, teams of friends and companies, schoolchildren, associations can play team sports, teqball or badminton. When designing the sports concept, it was also important to w w w . d t e u r o p e . c o m

A sustainable facility

ensure that the equipment and technology were unique and innovative, in keeping with the architectural significance of the building, and capable of providing a high-quality service. When equipping the floorspace of 600 square meters, we also sought to optimize the use of space, taking sustainability into account. The marketleading Technogym Biocircuit high-tech circuit training system integrates digital solutions to make it a daily workout option for even the busiest of users, providing a full-body workout in 36 minutes. We had an American film shoot where the director dreamed up a NASA gym on Mars for Train & Go. For the first time in the country, we have the latest Kinesis Station training wall, among many others, and the largest selection of Eleiko equipment, which is officially Olympic certified. In good weather, our outdoor terrace can also be the training venue. And for warming up and stretching, we have a terrace in the sports hall,” she adds. The facility also has an event hall, a multifunctional event space, small auditoriums and even a roof terrace. The center can accommodate events for 30-150 people in its soundproofed, movable-wall function rooms

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As you would expect in the 21st century, sustainability has been a key consideration in the design of the V.30 sports and events center. “Mr. Skardelli's vision of a muscular fiber wall not only made the V.30 emblematic and recognizable in every image, but also made it more operationally efficient by providing natural lighting above ground level. Our power supply is optimized by solar panels, and the famous fiberglass wall allows sunlight to reach the pools on the second floor, as it is transmitted to the pool area by means of a metal trumpet, LED lighting and a mirror. The thermal water, extracted from 806 meters using our own thermal wells, is used to heat and keep the pools warm and to heat the entire facility. We are proud that even in the coldest winter months we have never had to turn on the gas boilers, because of our constantly controlled heat management,” the Managing Director points out.

Recognized by both experts and the public

The sports and events center opened last year. On the experience gained in the first few months of feedback from visitors, the Managing Director notes that the ultramodern façade of the building is very impressive from the outset, entering the design community space and being the second highest climbing wall in Budapest, attracting the eye up to five floors above the ground. As a dog-friendly establishment, the specialty café is also a great place to sit with a four-legged friend, and as a family-friendly venue, it is also well-equipped for those with children. “At the end of 2021, we were the first swimming pool on the Pest side of the capital to be awarded a five-star rating by the Hungarian Bathing Association, and since then, we have received three Marketing Diamond Awards for our green innovation solutions, the introduction of the innovative Prama sports hall and CSR activities. In order to give our guests an insight into the diversity of our services, we offer free guided tours. We opened last September and by February, we attracted over 30,000 visitors. We are an easily accessible venue for training courses, conferences and workshops. It is a multifunctional venue for regular training sessions and sports training. For simple, low-technical events held on a regular basis, the good location and quick adaptability of the venue during changes of function (from sport to event and back) can be advantageous. As a boutique event venue, the Event Hall is the perfect location for an occasion when the client wants to entertain 80-150 guests. With cabaret seating, guests can expect first class seating and good staging for everyone, in a pleasant and natural space thanks to the wooden cladding. The infrastructure of the hall is perfectly suited to the construction of a serious stage technology. Our catering partner has a recognized professional experience in both catering and protocol events,” Ildikó Buranits concludes.

wine With respect for each other's opinions and activities, the six wineries that make up the Neszmélyi BORvidékÉrt (‘For the Neszmély Wine Region’) Association have established a set of rules based on clearly defined principles to regulate the origin, cultivation and processing of grapes and the vinification and ageing of wines. The result is #Neszmély, a wine reflecting the diversity, lightness and depth of the wine region. The community wine will be marketed under a shared brand name and with the same image, but it will still bear the hallmarks of the individual winemakers’ philosophies. The first #Neszmély wine was made by five wineries - Szivek Cellar (Kesztölc), Petőcz Winery (Ászár), Bősze Winery (Ászár), Kősziklás Winery (Dunaszentmiklós) and the most famous name in the wine region, Hilltop Neszmély Winery.

A WINE STYLE THAT REFLECTS THE REGION

THE COMMUNITY WINE OF THE NESZMÉLY WINE REGION IS ABOUT TO MAKE ITS DEBUT UNDER THE NAME #NESZMÉLY

What #Neszmély embodies

BALÁZS SZMODITS / SZMODITS PHOTOGRAPHY

Following in the footsteps of the well-known community wines, the regional wine brand of the Neszmély wine region, located next to the River Danube, NE of Budapest, #Neszmély is ready to make its mark. This symbol of shared thinking and united commitment for the future of the wine region aims to be more than just a wine. Through #Neszmély, the participating wineries want to draw attention to the Neszmély wine region, with its proud history of more than 2,000 years, the cultural values of the region and its great potential for tourism.

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"This bottle of wine is Neszmély itself. It encapsulates all the characteristics of this extended northern wine region, the hills and valleys of Neszmély, the deep-warm loess soil, the cooler climate, the endlessly winding Danube. The exhilarating freshness, the crisp acidity, the rich, complex, intense aromas and fragrances, the wonderful harmony", Ákos Kamocsay says about #Neszmély. The co-owner and head winemaker of Hilltop Neszmély Winery and iconic figure of Hungarian winemaking has also added that by creating a community wine, the aim was not to produce a top-quality wine, but a wine style that reflects the region, the typical varieties grown there, year in, year out. According to Szabolcs Emmer, President of the Neszmélyi BORvidékÉRT Association, their aim is to make #Neszmély a blend that is easy to understand, lively, fruity and refreshing, where the individual character of the base varieties does not dominate the blend. “The wine should reflect the lightness and verve of the Neszmély wine region. This is why the basic varieties of Királyleányka, Olaszrizling, Riesling, Müller Thurgau, Chardonnay, Pinot Gris and the aromatic varieties of Irsai Olivér, Cserszegi Fűszeres, Muscat Blanc are the heart and soul of the blend." Szabolcs Emmer, the owner-winemaker of the Kősziklás Winery in Dunaszentmiklós, founded in 2008, was one of the masterminds behind the #Neszmély community wine and has also played a major role in its creation and implementation.

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GOURMET FESTIVAL HUNGARY

HEY, JUNE!

This year, after two years of "fasting", visitors will again be able to taste the most exciting culinary offerings of Hungary at the OTP Bank Gourmet Festival, including the best restaurants, wineries, pastry shops and more at the completely renovated Millenáris event center in Budapest. "In the spring of 2020, we were still enthusiastically preparing for the 10th anniversary festival, the theme of which was – unusually – heritage," the festival's chief organizer, Richárd Nemes says. "Unfortunately, we had to cancel it for the well-known reasons, just as we were unable to organize the 2021 festival. Gourmet will be celebrating the same anniversary this year, as this will be the 10th edition and the keyword will remain heritage. In this spirit, we are asking the chefs of the exhibiting restaurants to come up with personal recipes and dishes, spiced up with their own stories," the organizer added. The founder of Gourmet festival, Károly Gerendai highlighted that "the past two years have been a difficult time for the Hungarian gastronomy, with many restaurants closing down and many struggling to start again. The Festival was set up with the aim of bringing quality gastronomy to a wider national audience. The recent period, with a significant decline in tourism, has confirmed the importance of the domestic audience and the need for Hungarian visitors to keep the excellent gastronomy of Hungary alive."

After two years of online performances, this summer, fans will finally get to return to the Hey, June! concerts in person, bringing live applause back to the auditoriums along with the popular music as five Hungarian bands will take the stage to officially kick off the summer. Opening the series will be Hungary's number one dream pop band, the Mayberian Sanskülotts, who celebrated the tenth anniversary of their foundation last year. The band, which after starting out as a duo comprised of Zita Csordás and Gallusz Balogh has since expanded to six members, has been preparing for the concert for a long time. Péter Egyedi's first solo album, Mmamt – Mindennek megvan a maga története (‘Everything has its own story’) –, released in 2019, was immediately declared one of the best records of the year. Issued early last year, Mmamt II not only continues this, but raises the bar – if this were possible – to an even higher level, significantly expanding Egyedi's boundaries in several directions. The Hey, June audience will get to welcome Benedek Szabó and company like good friends, since they have already performed as part of the series, in 2016. Of course, many things have happened since then. For example, the name of the band changed to ‘Galaxisok’. Anna and the Barbies require no introduction for anyone, as they are one of the coolest and most colorful bands in Hungary, experimenting not only with the spectacle on stage, but also in fusing different branches of the arts. Mike Gotthard and Dániel Szebényi met during their university years, and in the decade that has passed since they have been involved in numerous projects both together and separately. As the final act in the series, the duo will give the audience a chance to dive deep into their diverse, cross-genre work.

JUNE 03-23, PALACE OF ARTS (MÜPA), BUDAPEST

MAY 27-29, 2022, MILLENÁRIS, BUDAPEST

gourmetfesztival.hu

mupa.hu

MÅNESKIN ‘LOUD KIDS’ WORLD TOUR

MAY 16, 2023, PAPP LÁSZLÓ BUDAPEST SPORTS ARENA, BUDAPEST

Måneskin has announced their first world tour, consisting of 48 concerts, across North America and Europe. The dates of the originally planned LOUD KIDS tour have been extended to include the band's first North American tour and, due to great demand, the rescheduled European dates have been extended to include a few more cities. The tour, which kicks off in Seattle on October 31, 2022, will see Måneskin play in 16 more North American cities – including venues in New York, San Francisco, Las Vegas, Washington, D.C.– and Canada before embarking on a rescheduled European tour in 2023. Due to overwhelming demand, Måneskin has moved his European shows to iconic venues such as London's O2 Arena, Paris' Accor Arena and Berlin's Mercedes Benz Arena, with new venues added to the tour from Spain, Denmark, Austria Latvia, Estonia and Italy. Following to the announcement, the Group added that "we're very excited to finally say that the LOUD KIDS tour has gotten sooooo louder, and not just in Europe!!! LOUD KIDS is getting louder and louder, and now in the US, too. We've increased the capacity of all of our rescheduled European shows due to the overwhelming interest + added a few more parties for those who missed out on ticket sales beforehand. Of course, it's very difficult to make show announcements while there is a terrible war going on in Ukraine and innocent people are suffering. We are devastated by the losses of the Ukrainian people and we stand in solidarity with them. Because of the decisions of the people in power, which affect the lives of so many innocent people, we will not be holding concerts in Russia. We must all stand together for peace, now and forever." livenation.hu

MYTH & HISTORY

SEPTEMBER 01, 2022 - JULY 25, 2023

photo by PIXELTASTER, LIVE NATION, SZILVIA CSIBI, DIA KOMROCZKI, DAVID BODNAR, MÜPA

HUNGARIAN STATE OPERA HOUSE, BUDAPEST The program of the OPERA’s 139th season features over 500 theatrical shows, including 53 repertoire pieces and 16 new productions with 10 feature shows among them. The 2022/2023 season of the OPERA was inspired by the interconnected layers of myths and history, with several of its premiering productions being based on dramatic historical events. Iván Madarász was commissioned by the OPERA to turn Zoltán Fábri’s screenplay into an opera titled ‘The Fifth Seal’, set at the time of the Arrow Cross Party’s terror and the Siege of Budapest, the premier of which is directed by János Szikora. The Hungarian premier of Prokofiev’s War & Peace is brought to the stage by Calixto Bieito in co-production with the Grand Théâtre de Genève, and the Opera House is also preparing a new premier of Tosca. There are two Mozart operas to return to the theater’s repertoire after a long hiatus: the audience had to wait over 40 years to see Idomeneo, King of Crete and over 30 years to see The Pretend Garden-Girl at the OPERA again. Both of them are directed by artistic director András Almási-Tóth, the latter for the stage of the Eiffel Art Studios, in co-production with Opera Neo in San Diego. The theme of the season naturally suggested several Baroque works rooted in Antique culture or set in the era of the Crusades to be premiered at the OPERA, and so Zita Szenteczki will adapt the 2016 direction of Gluck’s opera Orfeo & Euridice she did during her studies at the Liszt Academy for the stage of the Eiffel Art Studios, where Purcell’s Dido & Aeneas will also be played under the direction of Dóra Barta, as well as a production of Monteverdi madrigals by Tulassay Ádám titled Tancredi & Clorinda. For a special séance of Advent, pianist Tamás Érdi brings a story relevant to the Three Wise Men, György Selmeczi’s Artaban to the stage based on the concept of general director Szilveszter Ókovács, and after several seasons’ delay, Mária Harangi directs two one-act pieces of similar subjects by contemporary Italian composer Giampaolo Testoni, Fantasio & Fortunio. opera.hu

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gastronomy

HUNGARIAN DISHES AT THE OSCARS PARTY

INGREDIENTS FOR THE GALA RECEPTION

The most prestigious awards gala in the world of cinema had a Hungarian aspect this year. For the first time, a Hungarian chef cooked Hungarian dishes at the post-awards party. It was a great honor for Hungary that István Szántó, the head chef of Wolfgang Puck's Spago restaurant in Budapest, had the opportunity to present some iconic Hungarian dishes to Hollywood celebrities. The menu in Los Angeles included items like chicken paprikash, beef 'Vadas style', Somló dumplings and Eszterházy cake. The first portion of venison was served to none other than Samuel L. Jackson. Michelin-starred Hollywood celebrity chef Wolfgang Puck feeds the world's superstars like no one else, thanks to his renowned restaurants Spago and CUT in Beverly Hills, his international catering from Istanbul to London, and the fact that since 1995, he has been responsible for creating the menu for celebrities and VIP guests at the film industry's most famous post-awards ball. Every year, Wolfgang Puck has more than a hundred chefs working under him to ensure that everything is perfect for this very special event. This year's sensation was that for the first time, traditional Hungarian dishes were served at the post-awards party, alongside the usual Wolfgang Puck signature dishes.

biggest awards show in the film world is the most important social event on the West Coast, where food, fashion, culture, film and music come together. I am proud to have the head chef of my first Spago restaurant in Europe with me, as he will be able to showcase a special world, the Hungarian culture. When I tasted István's version of the wild game, I simply fell in love with it. And I'm sure the stars will do the same," the restaurant owner added prior to the party. The menu, of course, also included some of Wolfgang Puck Catering's previous favorites, such as the spicy tuna cones and the smoked salmon pizza. "We prepare the dough, cut it into the shape of the iconic statue and then put a little dill cream on top. We also have a shape for the salmon, we slice it very thin and put it on top," he described the legendary dish. And to complement the food, the party also featured a variety of drinks. In honor of the gala, Fleur de MIRAVAL – the only sparkling wine house that exclusively produces rosé champagne – poured champagne and two limited edition Francis Ford Coppola wines. And acclaimed mixologist Charles Joly once again created a Tequila Don Julio cocktail selection.

Four legendary Hungarian dishes at the post-gala reception "I am very happy that Wolfgang has given me the opportunity to present myself to the Los Angeles audience. I immediately thought of dishes that are emblematic of Hungarian cuisine. In the end, chicken paprikash, beef 'Vadas style', Eszterházy cake and Somló dumplings were the ones chosen. I knew that there were a lot of safety and logistical aspects to consider: must have ingredients for the dishes sourced locally; these dishes should be easy to eat, prepared in small portions, served aesthetically and in amazing quantities. We prepared 800 portions of the beef dish and 350 portions each of the other dishes. Although it is a catering service, the festivity and elegance

HOW WERE THE HUNGARIAN DISHES PREPARED?

The two chefs, Wolfgang and István, thought of fusion solutions. They sourced the ingredients from the famous local Santa Monica farmers' market, and István, of course, brought the real Hungarian paprika from home. Braised Beef Cheek 'Vadas style' – It is made from Wagyu beef and served with ricotta-filled dumpling and mustard sauce. With the dumpling, the dish included a traditional item from Wolfgang's native Austria. Chicken paprikash ‘Hortobágy style’ The chicken paprikash prepared in the traditional way was wrapped in dough for the Academy Awards guests. In terms of serving, the end result resembled a spring roll and it was topped with paprika sauce. Somlói dumplings Presented as a golden bonbon in the shape of a walnut. Eszterházy cake Made from a traditional recipe and presented in the most traditional way.

are essential for the awards ceremony," István Szántó said excitedly prior to the event. "This is Hollywood's biggest and most glamorous event. A huge building hosts both the gala itself and the reception. The event takes place on the fifth floor, and on the sixth floor the chefs and cooks work in a kitchen of about 800 sqm," the Hungarian executive chef of the Spago restaurant in Budapest highlighted. "The kitchen opens onto the event hall, where there is seating for 500 guests in addition to standing room. We're talking about an event for 1,500 people, so the quantities are really amazing: 100 different dishes prepared, 30 of them desserts. The organizers’ expectation is ten dishes per guest, so 15,000 dishes in total. After the awards ceremony, there is an hour and a half to two hours to prepare the dishes. That's why we need more than 100 chefs, because that's the only way everything can arrive in good rhythm," he explained.

Hungarian dishes as novelty "Every year, we strive to find a way to present something new, fresh and fun in the food menu," Wolfgang Puck said. "The party following the

HUNGARIAN WINNER AT THE 2022 ACADEMY AWARDS

Hungarian set designer Zsuzsanna Sipos has been awarded an Academy Award for production design, together with Canadian production designer Patrice Vermette, for the movie 'Dune', at the 94th ceremony held in Los Angeles. Dune, based on the Frank Herbert classic and directed by Denis Villeneuve, was partly made in Hungary and won six of its ten nominations at this year's Oscars, including the one for 'outstanding sound mixing' given to a team of which one member, American Mac Ruth has been living in Hungary for 25 years now. Zsuzsanna Sipos thanked the American Academy of Motion Picture Arts and Sciences for the award in Hungarian also. "Dune's success at the Oscars is also a recognition of the outstanding quality of the Hungarian film industry and the work of Hungarian film professionals. This super-production was made mainly in Hungary with the help of hundreds of Hungarian filmmakers, and with major professional accolades and a gross budget of nearly USD 400 million, it became one of the most successful films of last year. The Hungarian professionals who contributed to this global success deserve huge congratulations," the Director of the National Film Institute in Hungary, Csaba Káel said. 2 0 2 2 / IV

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HOLLYWOOD STARS WERE ENTHUSIASTIC WITH THE FOOD PREPARED BY A HUNGARIAN CHEF

PIXELTASTER, MATILD PALACE, MICHAEL YADA / A.M.P.A.S.

117 chefs 12 kg nishiki rice 1,080 eggs 10 whole yellowtail mackerel 136 kg smoked salmon 182 kg yidori chicken 7 kg caviar 3 kg truffles 100 lobsters 3 crates of Harry's strawberries 5 crates of local raspberries 28 kg yukon gold potatoes 30 kg miyazaki wagyu beef 10 kg local green peas 19 kg jackfruit 5 kg purple ninja radish 12 kg baby rainbow carrots 12 kg baby planet carrots 10 kg baby turnips 19 kg baby anise fennel 12 kg premium frisée 211 kg baby green romaine lettuce 19 kg black Tuscan cabbage 300 pieces baby Lolla Rossa lettuce 12 kg sugar peas 30 kg Heirloom Mix beetroot 23 kg local rainbow chard 4 crates of organic arugula 46 kg minced beef 14 kg Prime New York 55 kg Ahi tuna 12 kg Valbrasco feta 26 kg Jumbo Lump 23 kg mozzarella 14 kg fontina 14 kg parmesan 1600 pieces of homemade mini brioche buns 19 kg duck breast 95 l Alta Dena whole milk 2600 sesame miso cones

gastronomy

BE YOURSELF, DON'T FORGET YOUR IDENTITY! INTERVIEW WITH SLOVENIAN STAR CHEF ANA ROŠ, THE PRESIDENT OF THE 2022 EUROPEAN BOCUSE D’OR JURY

This year, the Hungarian capital hosted Bocuse d'Or Europe 2022, the European selecting event of the famous gastronomy competition. The jury was headed – as president of honor for the European selection – by acclaimed Slovenian chef Ana Roš. Diplomacy&Trade caught up with her during the two-day competition.

So, I believe that if we can make the client happy, we can also make the Michelin inspector happy. I think my message has always been very clear about that: regardless of the number of stars, our service is always the same. I'm not going to change that. If I need to lose a star because I'm stubborn and believe in something, I'm ready for it. I've seen so many chefs, friends very stressed or very often disappointed about their career. I think the career and the success need to be the result of good work,” she stresses.

Doing what she believes in Having conducted diplomatic studies in Italy, Ana Roš must have made a very difficult decision to abandon the road to Brussels. Instead, she stayed in her homeland and built up an amazing career in gastronomy. In reply to notes like “if you pursued a diplomatic career, you could perhaps be the President of Slovenia because you are so successful,” she simply says: “but I can be the President of Slovenia also as a chef, that is no problem. Elections are free…” She adds that she believed that the path that she chose was a natural continuation of her life. “A woman also has a heart to follow – that is what I did. Then, somehow my work, diplomacy, even my political opinion eventually met. So, today, already for three years, I am the Ambassador at the United Nations World Tourism Organization (UNWTO) for sustainable tourism and gastronomy. In this position, I am actually raising the awareness about the danger that gastronomy is heading towards – and also about the sustainability of what I believe in. On the other side, in the time of crisis, we all show our character somehow. And for me, it is the fight for this to be a strong sector, fight for the food. The pandemic times made me a hero in the country but also one hated by some in the political elite. But I never stepped aside. I always said what I thought was right. Therefore, I don't know if my life is so much different wearing a chef jacket and cooking from what it would be if I was working in Brussels and staying there.”

In her childhood – and even early adulthood – no one, not even herself, suspected that Ana Roš would once be heading a restaurant of two Michelin stars and become the ‘face’ of Slovenian gastronomy.

Runs in the family “Of course, growing up is always the learning part of our life with the family around you having the largest influence. My mother has always been amazing as has my grandmother – one was more traditional, the other more aristocratic in cooking. However, I never cooked with them. I was more into sports and into dance, so, I actually came home and I was eating. I always had these very well prepared, very healthy, very fresh, no shortcut food on the table. And I believe that what you're given as a child you never forget it. It is true in my case as well: it stayed with me,” the chef points out.

Making a restaurant great

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DÁVID HARANGOZÓ, SUZAN GABRIJAN

The year 2000 saw an important change in the life of Ana Roš. As she recalls, “my partner, Valter Kramar’s parents retired in 1999 and the following year, we took over their restaurant in Kobarid, northwestern Slovenia. However, at that time, the establishment called Hiša Franko wasn't a place with the concept of today. It was a kind of long stairway going step by step towards something. It was absolutely not ready for something great, but we were not ready for something great either. So, I believe that what Hiša Franko is in this moment, it is because we respected the slow process of transforming the restaurant to something great,” she explains.

Be yourself! Currently, there are two Slovenian ladies as great promoters of the country: Ana Roš and Olympic and world champion alpine skier Tina Maze. The latter made an amazing promotion for Slovenia and Slovenian tourism and Ana Roš did the same for Slovenian gastronomy with a very, very important message for the new generation on how to save global climate, how to save gastronomy. As to what her message is to the next generation of chefs some of whom were present at this year’s Bocuse d’Or 2022 European final in Budapest, the celebrated Slovenian chef points out that “well, it is very simple. It is be yourself, stay yourself. Be yourself, stay yourself, don't forget your identity! That's the most important!”

Guests more valuable than Michelin stars The restaurant has so far been awarded two Michelin stars but Ana Roš says these distinctions have not changed her life or approach in any way. “I feel I am the same person as before, I don't feel any more pressure. I don't feel any more responsibility. However, I do feel great responsibility towards our guests who need to travel a lot to get to Hiša Franko. And if that guest is happy, it means that my restaurant works well and it will be full. Without the guests, these stars don't mean anything, be it one star or two stars. w w w . d t e u r o p e . c o m

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Diplomacy&Trade 2022 April

Articles inside

WINE Community wine of the Neszmély wine region

DIVERSITY HBLF organizes EU Diversity Month 2022 in Hungary

COMPANY BRIEFS

BELGIAN FOCUS Interview with Ambassador Siegfried Peinen; Wallonia Export & Investment Agency; Borsodi; VPK; Flanders Investment & Trade; Soudal; Weerts Group, The Three Corners

ON THE RECORD

EXECUTIVE WORLD Balázs Németh, CEO, Porsche Hungaria Trading Co. Ltd.