ON THE RECORD

FRENCH PRESIDENT MEETS V4 PREMIERS IN BUDAPEST

French President Emmanuel Macron paid a one-day visit to Budapest on December 13 to attend a meeting of the Visegrád Four (V4) Group prime ministers (Andrej Babis of the Czech Republic, Viktor Orbán of Hungary, Mateusz Morawiecki of Poland and Eduard Heger of Slovakia). According to the Hungarian PM, "we have spoken extensively and exhaustively on the issue of migration. We have talked in depth, exhaustively and passionately about the rule of law. We talked about the Western Balkans. We talked about energy, we talked specifically about nuclear energy." Speaking at a press conference, Emmanuel Macron, for his part, described the matter of the rule of law and anti-gay discrimination as a sensitive and vital issues, and said that a solution must be found to break the deadlock between the Hungarian government and the European Union. Following the Presdient’s talks with four Hungarian opposition leaders, Péter Márky-Zay, the joint opposition candidate to face Viktor Orbán at the parliamentary elections in the spring of 2022, pointed out that they share Emmanuel Macron's values of a stronger, safer, more democratic and freer Europe and they can get political support from the French community in this.

RECORD BUDGET DEFICIT ON PRE-ELECTION SPENDING

Hungary’s November government deficit broke an all-time record, boosted by a government spending spree to win re-election next spring. Economists fear that the upcoming general election will put the much-needed fiscal consolidation on hold. Hungary recorded an unprecedented monthly budget shortfall of HUF 1,009 billion in November, according to preliminary information published by the Ministry of Finance in December. By the end of November, the country’s budget deficit ballooned to over HUF 3,900 billion, which is close to the annual target that was doubled during the year. Prime Minister Viktor Orbán gave Hungarians generous financial handouts, including an income tax rebate for families worth USD two billion, as his government faces a closely fought election next year. These handouts have triggered a surge in the nation’s budget deficit, forcing the cabinet to amend its annual deficit target. Hungary borrowed heavily in global markets in 2021 to finance the swelling deficit and bridge a delay in access to EU pandemic recovery funds over a row with Brussels on democratic standards.

BUDAPEST STOCK EXCHANGE INDEX UP, FORINT WEAKENS IN 2021

The stock index of the Budapest Stock Exchange (BSE), the BUX, closed the year at 50,720.71 points, up 8,613 points, or 20%, in 2021. The annual turnover of the BSE is estimated by the state news agency MTI to have exceeded HUF 3,360 billion in the year, compared to a turnover of under HUF 3,300 billion in 2020.

Leading stocks gained significantly in 2021, with OTP the biggest gainer. The bank's stock was worth HUF 16,600 on the last trading day of the year, while it closed 2020 at 13,360, up 3,240 or 24.25%. OTP reached its annual and historic high on November 5 at 19,590. The Hungarian currency, the forint (HUF) weakened in 2021: by 1.3% against the euro (EUR), 9.3% against the American dollar (USD) and 6.0% against the Swiss franc (CHF). On December 31, the forint ended the year at 368.87 forints against the euro and 324.48 forints against the American dollar, while the Swiss franc stood at 355.55 forints. In 2021, the forint reached its weakest exchange rate against the euro at 372.13 forints on November 23. It was at its strongest against the euro, at 344.91 forints, on June 10.

NEW HUNGARIAN ART AUCTION RECORD

Surpassing all previous Hungarian auction records, Tivadar Csontváry Kosztka's painting ‘Mysterious Island’ sold for HUF 460 million at the Judit Virág Gallery's auction in Budapest, starting from the highest starting price in the history of Hungarian auctions, HUF 160 million. The Mysterious Island, painted in 1903, is one of Csontváry's most mysterious works, the meaning of the title has still not been deciphered by art historians. In the painting, dream figures evoke the past and the future on an imaginary island. The possibility of passage between the tiny piece of land and the outside world is hinted at by the motif of a tiny sailboat. The symbolically rich artwork is characterized by intense, warm colors and a brilliant light effect. The previous record was also held by a work by Csontváry, ‘Trau Landscape at Sunset’. That painting was auctioned at the gallery in 2012 for HUF 240 million. Just over a dozen of Csontváry's hundred or so works are in private collections, Mysterious Island was the seventh Csontváry work to be auctioned in 30 years, and only four have appeared at auctions since 2000.

UPCOMING NATIONAL DAYS January 1 Cuba National Day

February 26 Australia

National Day 6 New Zealand National Day 15 Serbia National Day 16 Lithuania National Day 23 Japan National Day 24 Estonia National Day 25 Kuwait National Day 28 Egypt Independence Day

HUNGARIAN WIN AT THE WORLD ICE CREAM CHAMPIONSHIP

Pistachio Fruit (Frutta di Pistacchio), a creation by Hungarian confectioner Ádám Fazekas, has fetched gold for best ice cream at an international competition held in Bologna, the organizers said. As the Hungarian state news agency MTI reported, Fazekas “blew away” the 11-member jury of experts with the taste and his video presentation, the organizers of the Italian city’s World Ice Cream Championship (Gelato Festival World Masters) highlighted. The silver went to Carlo Guerriero from Spain’s Cadiz for his creation Creamy Oloroso Wine (Cremoso al Vino Oloroso) and the bronze to Marco Venturino from Italy’s Varazze for his Rose Mouth (Bocca di Rosa) ice cream. Ádám Fazekas won the competition from among 32 international ice cream makers (gelato artisans). The hosts said they had spent four years attending hundreds of events around the world to select from among 3,500 candidates the finalists to compete for the title 'World Master' in Bologna.

OMEGA ROCK BAND FRONTMAN JÁNOS KÓBOR DIES AT 78

János Kóbor, the Kossuth and Liszt Ferenc Prize winning singer of the Hungarian rock band Omega, passed away on December 6 at the age of 78. The musician was hospitalized on November 9 with new coronavirus infection and was under care there with his condition long thought to be serious. Born and raised in Budapest, Kóbor founded his first band in high school, and after a couple of small formations, was one of the Omega founders in 1960. In the beginning, their repertoire consisted mainly of Western songs. He also had a degree in architecture from the Technical University of Budapest, but claims never to have worked for a minute as an architect. Kóbor – known by his nickname 'Mecky' – eventually switched to singing full-time and was involved in the making of all 17 of Omega's albums. He was one of the few successful Hungarian performers who spent his entire career as a member of a single band, with only occasional guest appearances here and there. Besides performing, he worked as a music director, managed a record label and founded a sound equipment rental company.