Diplomacy&Trade 2023-05

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ESSCA SCHOOL OF MANAGEMENT BUDAPEST CAMPUS CELEBRATES 30TH ANNIVERSARY

Switzerland

In the Swiss Focus on Swiss-Hungarian bilateral relations, published to mark the 732nd anniversary of the Swiss Confederation, Ambassador JeanFrançois Paroz, spending his second term in Budapest, tells Diplomacy&Trade about the changing landscape both in Switzerland and Hungary, his country’s economic footprint in Hungary, the two government’s different stance on the war in Ukraine, cultural connections and the ambitious Swiss-Hungarian Cooperation Program.

see articles on pages 10-25

For a Sustainable Future

page 17

This year, the ‘For a Sustainable Future Award’, announced by the Business Council for Sustainable Development in Hungary (BCSDH) aims to recognize outstanding corporate and leadership performance in achieving the Sustainable Development Goals (SDGs) and systemic change. Managing Director Irén Márta explains what platforms on key sustainability issues BCSDH's activities are built around and how they assist companies to reach their sustainability targets.

see article on page 26

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letter from the publisher

The ESSCA school of management welcomes students from all over the world. Its Budapest Campus celebrates its 30th anniversary this year. Accredited by the three most prestigious accrediting bodies in the world, ESSCA is known to be a school of management where students gain theoretical and practical knowledge and trust the school for the transfer of its key values to the graduates.

In this issue we present a Swiss Focus on the occasion of Switzerland’s recent national day. The Swiss ambassador to Hungary, Jean-François Paroz, talks about the shifting political landscapes, economic partnerships, cultural connections, and the ambitious SwissHungarian Cooperation Program. Of course, we also include the Swiss-Hungarian Chamber of Commerce and a some of the Swiss companies active in this country.

The BRIC (later BRICS) grouping was established – according to the intentions of the leading members China and Russia – to make it into a geopolitical rival to the G7 bloc of leading advanced economies. At a summit at the end of August, the group announced accepting ten new members. However, as our international analyst suggests, lacking a coherent ideological basis and a commonly shared grand strategy, they are not likely to emerge as a peer competitor for the U.S. led global world order.

The ‘For a Sustainable Future Award’ aims to recognize outstanding corporate and leadership performance in achieving the Sustainable Development Goals (SDGs) and systemic change in Hungary. Our sustainability page reveals what the initiators expect from the candidates for the award.

WittyLeaks page is authored by the Austrian Ambassador who presents a pictorial tour of places he has been in Hungary on official and family trips.

Our culture section is dedicated to music and money as an experienced music promoter elaborates on the challenges of the concert market in this country. The members of the Italian vocal group he promotes talk about their career, while we also explore the educational exhibition areas of the Money Museum established in Budapest by the National Bank of Hungary.

September is a fantastic time to experience Hungary's culture, natural beauty and cuisine without the summer heat or the crowds that peak tourist season brings. Whether you're interested in exploring cities like Budapest or enjoying the tranquility of the Hungarian countryside, this month offers a wonderful blend of experiences. Enjoy!

cont en ts

26 SUSTAINABILITY

Awarding business leaders

Peter Freed PUBLISHER

Interview with Ambassador JeanFrançois Paroz; Swiss-Hungarian Chamber of Commerce; Eisberg; Givaudan; PMI; Novartis; Roche; Stadler; Ringier; Nestlé

28 WITTYLEAKS by the Ambassador of Austria

29 WHAT’S ON Concerts, festivals, events and exhibitions in and out of Budapest

30-31 CULTURE

Money Museum in Budapest; Koncertpromo

PUBLISHER: Peter Freed PHOTO EDITOR: Dávid Harangozó

SALES & MARKETING DIRECTOR: Tamás Varga ADMINISTRATION: Blanka Szalontai

CONTRIBUTORS: Edith Balázs, Sándor Laczkó, Tamás Magyarics, Alexander Grubmayr

PHOTO CONTRIBUTORS: marriott.com, elemiszerbank.hu, depositphotos.com, Volánbusz, Magyar Suzuki Corporation, Budapest Airport, molgroup.info, Gedeon Richter Plc., Prime Minister's Office India, Barnabás Borka, Givaudan, Shutterstock, Tamás Bende, Nestlé, Alexander Grubmayr, Marco Borggreve, Live Nation, James Marcus Haney, Vlad Lorenzo, Hungarian Money Museum and Visitor Centre, KoncertPromo, MTI photos: Tamás Vasvári, Péter Lakatos

TURKISH FOCUS – COMING SOON

Diplomacy&Trade – in cooperation with the Turkish Embassy in Budapest – presents a special Focus section on relations between Hungary and Turkey to mark the 100th anniversary of diplomatic ties between the two countries. Bilateral trade between Hungary and Turkey reached a record high in 2022, with Turkish companies employing nearly 2,200 people in this country. The Hungarian government provides substantial financial support for both Turkish investments in Hungary and Hungarian investments in Turkey (such as Şişecam’s in Hungary or that of the Hungarian firm Medicor in Turkey). Also, a TurkishHungarian Cultural Year is planned for 2024 and a Hungarian-Turkish Year of Science and Technology for 2025. The compilation includes an extensive interview with the Turkish Ambassador in Budapest, Cavidan Gülşen Karanis Ekşioğlu.

Event guide to the Hungarian capital

Money Museum on the past and present of money

Presenting international music stars in Hungary

on the record

EU APPROVES HUNGARIAN ‘GREEN DEAL’ STATE AID

The European Commission says it has approved a EUR 2.36 billion (approximately HUF 880 billion) Hungarian scheme for accelerated investments in strategic sectors to foster the transition towards a net-zero economy, in line with the Green Deal Industrial Plan.

The scheme was approved under the state aid Temporary Crisis and Transition Framework (TCTF), adopted by the Commission on March 9, 2023 to support measures in sectors which are key to accelerate the green transition and reduce fuel dependencies. In the framework of this scheme, the aid will take the form of direct grants and/or tax advantages.

US RESTRICTS VISA WAIVER PROGRAM FOR HUNGARIANS

Early August, the United States government announced the tightening of visa-free access for Hungarians to its territory amid security concerns stemming from the policies of the Hungarian government. Washington’s move came after several previous warnings that it will limit travel opportunities for Hungarian citizens.

Under the American Visa Waiver Program, citizens of participating countries can travel to the US for tourism or business for up to 90 days without a visa, by simply requesting a so-called Electronic System for Travel Authorization (ESTA). The ESTA validity for Hungarian passport holders is now reduced from two years to one, and an ESTA will only be valid for a single use. No other country participating states in the Visa Waiver Program faces similar restrictions.

The US says that the travel restrictions imposed on Hungarian citizens are due to the fact that the identities of nearly one million foreigners granted Hungarian passports over the past ten years without “stringent identity verification mechanisms in place.”

Lying at the root of the US policy change, according to the US Embassy in Budapest, are "security flaws" stemming from the massive naturalization policy put in place by the government of Prime Minister Viktor Orbán.

SZIGET FESTIVAL FOR THE 30TH TIME

One of Europe's biggest popular music festivals, the Sziget Festival – held for the 30th time –, kicked off in the Hungarian capital on August 10 with huge interest from visitors filling Óbuda Island, the festival's location, on the River Danube. This year's six-day festival featured more than fifty venues on the island, with artists from 62 countries (including almost 200 Hungarian participants) performing in various genres.

On the second day of the event, organizers welcomed the ten millionth visitor in the history of the Sziget Festival, a 32-yearold Hungarian woman who received a lifetime pass to the festival, a rainbow flag commemorating the exceptional event and a T-shirt.

It took three weeks to build the 76-hectare ‘Freedom Island’, which can accommodate 90,000 people a day, including festival workers and visitors, making it the 10th largest city in the country for these six days. Services were designed to accommodate visitors comfortably. There were, for example, around 100 catering outlets, with a varied menu, including an even wider range of international cuisine and a variety of vegetarian, vegan and free-from dishes, in addition to local flavors. To protect the soil of the island, about 25,000 m² of plastic and another 5,000 m² of aluminum roads were laid.

The measure will be open to companies producing relevant equipment, namely batteries, solar panels, wind turbines, heatpumps, electrolyzers, equipment for carbon capture usage and storage, as well as key components designed and primarily used as direct input for the production of such equipment or related critical raw materials necessary for their production.

The Commission found that the Hungarian scheme is in line with the conditions set out in the TCTF. In particular, the aid will incentivize the production of relevant equipment for the transition towards a net-zero economy; and will be granted no later than December 31, 2025.

RENEWED CHAIN BRIDGE INAUGURATED

The renovated Lánchíd (‘Chain Bridge’) was inaugurated on August 4, opening it to pedestrians. The renovation of the bridge was completed on time and within budget.

Budapest Mayor Gergely Karácsony stressed at the inauguration that the Chain Bridge is not just an artefact, a bridge, but a symbol of unity and togetherness. Decades before the unification of the city 150 years ago, the idea had already been born that "we must build bridges, literally and figuratively". It was the Chain Bridge that launched the birth of Budapest, the capital of the nation, he said.

Budapest is the capital of the nation, and that is why the Chain Bridge is a symbol of the unity not only of the people of Budapest, but also of Budapest and the country as a whole, he added. The bridge was reopened to public transport buses, taxis, motorbikes, bicycles and scooters 18 months after its closure. This way, buses will be able to cross the bridge more predictably and in a much shorter time, and cyclists will be able to cross more safely than before the renovation. In the evening of the inauguration, the bridge was illuminated to mark the special occasion.

UPCOMING NATIONAL DAYS

September 2 Vietnam National day

7 Brazil Independence day

8 North Macedonia Independence day

16 Mexico Independence day

18 Chile National day

21 Malta National day

21 Armenia National day

23 Saudi Arabia National day

October 1 Cyprus National day

1 China Independence day

1 Nigeria Independence day

3 Germany Independence day

3 Iraq National day

10 Taiwan National day

10 Cuba National day

12 Spain National day

18 Azerbaijan Independence day

23 Hungary National day

24 Zambia Independence day

26 Austria National day

28 Czech Republic Independence day

29 Turkey National day

FOOD BANK: 4,700 TONS OF FOOD FOR THE NEEDY

In the first half of this year, the Hungarian Food Bank Association saved and donated 4.7 million kilograms of near-expiry and faulty packaging to people in need. Since their formation in 2005, they have collected more than 100 million kilograms of surplus food from manufacturers and traders, so that "instead of landfills, they are better put on the tables of people in need."

In the first half of 2023, 248,000 people in need received food parcels, which the Hungarian Food Bank Association put together from food that has become surplus, is no longer on the market but is still perfectly suitable for consumption. This is a 24% increase compared to the same period last year.

According to the association's statement, "while more and more people are queuing up for the saved food parcels due to the rising food prices, the surplus that can be taken from traders has started to decrease noticeably. Shops have become more cautious with their orders, with fewer products left over at the end of the day, and are more likely to consider giving leftovers to food rescue or stocking up at the last minute by selling them at a fraction of the original price."

NEW HOTEL BRAND HAS BEEN LAUNCHED IN HUNGARY

QPR Properties opened its 151-room luxury hotel, the W Budapest Hotel, in the Drechsler Palace on Andrássy Avenue in Budapest in late July. The conversion of the landmark building, which once housed the State Ballet Institute, into a hotel was completed in two and a half years by DVM Group, an integrated architectural and construction services provider. The hotel is operated by W Hotels, a subsidiary of Marriott International. The Drechsler Palace was built between 1883 and 1886 in the French Renaissance and Neo-Gothic styles based on designs by Ödön Lechner and Gyula Pártos. A UNESCO World Heritage site, the protected monument has fulfilled a variety of roles over its 135-year history, from institutional and residential to hospitality and cultural. The palace had been completely abandoned for the past two decades.

The palace, which was in a very poor state of repair, was renovated by DVM Group, the general contractor for the project. The heritage conservation and restoration work was complemented by a major mechanical and electrical renewal, which involved all the rooms of the 16,000 m² property. The contractor also had to prepare the building to meet the technical requirements of a five-star hotel, they said.

company briefs

VOLÁNBUSZ COMPLETES GREEN BUS PROJECT

The environmentally friendly, electric-powered fleet of the nationwide bus company Volánbusz has been expanded significantly in the last year and a half, with the company putting 100 new electric buses into service.

The development of the bus fleet was implemented with the support of the Green Bus Program of the Hungarian Mobility Management Agency (HUMDA) in cooperation with Volánbusz, the MVM Group and Mobiliti Volánbusz Ltd. The HUF 17.8 billion development renewed a significant part of the local vehicle fleet in the metropolitan agglomeration and six county seats, thus reducing the air pollution of the affected areas.

HUMDA considers it of the utmost importance that Hungary becomes a net climate neutral country by 2050, in line with the government's targets, and the Green Bus Program coordinated by HUMDA makes a significant contribution to this. They explained that Volánbusz, which operates

ULTRA-FAST CHARGING STATIONS BY OMV PETROM

OMV Petrom, the largest integrated energy company in South-East Europe, has announced a project that will connect the region with a network of ultra-fast charging stations for electric cars along the Trans-European Transport Network (TEN-T).

The project, which has received approval for a European funding contract with the European Executive Agency for Climate, Infrastructure and the Environment (CINEA), will install more than 400 recharging points in Romania, Slovakia and Hungary by November 2025.

The total investment in this project is estimated at approximately EUR 40 million, of which, approximately EUR 15 million are provided from European funds, through the Connecting Europe Facility (CEF), almost EUR 5 million of the total amount represent bank credit from the Romanian Commercial Bank, the rest of the financing being provided from own sources.

OMV Petrom said that the project is part of its 2030 Strategy, which aims to actively contribute to the energy transition in Romania and in the region by developing low-emission and zerocarbon solutions.

Radu Căprău, member of the OMV Petrom Executive Board responsible for the Refining and Marketing activity, says that they are supporting our customers in the process of decarbonizing the transportation and “we want to offer them as many mobility options as possible, including by developing the necessary infrastructure for alternative mobility. In the last three years, we have installed recharging points largely through partnerships. Today, we have taken an important step in the development of our own network of electric recharging stations thus contributing to connect the Eastern Europe through the TEN-T corridor,”

The ultra-fast charging stations will have an installed power of 150 kW each and will allow charging electric cars in approximately 10-15 minutes, depending on the capacity of the vehicles, for an operating range of 200 kms. The project will benefit citizens and economic operators by providing a seamless and interconnected network for electric vehicles and will contribute to achieving European Green Deal objectives, according to Richard Ferrer, Head of Alternative Fuels at CINEA.

ALDI HAS BIG PLANS IN HUNGARY

Aldi made a big step in the ranking of Hungarian retail chains last year and managed to lure many customers away from other discounters besides hypermarkets and supermarkets, portfolio.hu financial portal reported.

The price freeze was a big loss for them as well, but they are continuing to develop their domestic operations and are also looking to expand. They would like to open stores in more cities, even next to the existing ones. The portal asked Bernhard Haider, national managing director of ALDI Hungary, about the company's plans.

Aldi's revenue grew at the fastest rate of all retail chains in the country, six percentage points higher in 2022 than last year's average food inflation of 26%.

Asked whether this growth rate is sustainable, the managing director said that "we were very pleased with this result, because ALDI had the highest growth not only among discounters but also among all the big chains, which is due to many factors. On the one hand, our network coverage is already relatively good nationwide, but we still have a lot of work to do, for example, we only opened our first store in Eger last year. On the other hand, we have spent a lot of time on our price image, so that customers do not only see our low prices in the store, but also that it is known that ALDI is cheaper or cheaper than what customers have in mind. Thirdly, we have a lot of new customers, and surveys show that we are even succeeding in attracting customers from discounters in addition to hypermarkets and supermarkets."

In 2022, nearly 20% more customers chose Aldi than a year earlier. "New shoppers who come to us for the first time often find that shopping with us is more convenient and faster, and as a result they stay with us for the long term. I am confident that if we can keep up this pace on the network development, sourcing and marketing side, we can grow above inflation again this year," the managing director added.

nationwide, has set a target to replace about half of its nearly 6,000-busstrong fleet with electric vehicles by 2030 in order to create sustainable public transport. In order to achieve these improvements, the transport company is seeking partnerships that will help it to realize its mediumand long-term vision.

It was recalled that Volánbusz and its consortium partner Mobiliti Volánbusz had submitted several successful tenders under the Green Bus Program for the purchase of 100 electric buses and related charging equipment. The transport company signed an agreement for the delivery of the first 40 vehicles on July 27, 2021, and for the purchase of 60 additional e-buses on April 1, 2022. The vehicles will improve the quality of passenger transport services in the metropolitan agglomeration and in the local transport areas of Székesfehérvár, Zalaegerszeg, Győr, Eger, Szolnok and Szeged, contributing to the creation of sustainable public transport. The improvements were implemented with an average non-reimbursable subsidy of 76% from the Green Bus Program.

SUZUKI TO INVEST ANOTHER HUF 9.3 BILLION IN HUNGARY

Suzuki is making a further investment of HUF 9.3 billion in Hungary, as part of which the Japanese company is expanding its production capacity and taking a major step towards the carbon neutral conversion of its Esztergom plant.

According to the Ministry of Foreign Affairs and Trade, an agreement has been reached with the automotive company on a new development that will help to safeguard Hungary's economic growth in the future, while reducing emissions in an environmentally friendly way.

Suzuki is also said to be implementing an investment at its Esztergom manufacturing base to expand its capacity, with very significant technological improvements in the areas of digitalization and automation. In parallel, they are taking another big step towards making the factory's operations carbon neutral.

The 9.3 billion HUF investment will expand the capacity of the bumper, painting and welding plants, acquire high-tech machinery and build a solar power plant. The Hungarian government will cover 20% of the investment as a subsidy.

Suzuki is traditionally the market leader in Hungary with a share of around 12.5% last year. Its Esztergom production base is the company's third largest.

Companies from Japan form the seventh largest investor community in Hungary.

company briefs

INCREASING TRAFFIC AT BUDAPEST'S MAIN AIRPORT

The first half of 2023 was a strong period for Budapest Airport, the management company of the Hungarian capital's Ferenc Liszt International Airport, in all respects: the series of developments worth more than HUF 100 billion over the past 4.5 years and the outstanding quality of the airport ecosystem have been confirmed by numerous awards based on passenger feedback and the assessment of

ZWACK: PRICE INCREASE AND LOWER SALES

products in sales this time, while in the comparison period this item was reported in other operating income.

the airport industry, according to a statement by Budapest Airport.

In 2023, June was the fourth month in a row in which airport traffic exceeded one million passengers, and between January and June the airport handled a total of 6,683,524 passengers, which is 26.6% more than the same period of 2022 and more than the whole of the year 2021. As a result, total passenger numbers for the first

half of this year were only 9.4% below the record year of 2019, exceeding previous expectations. After a temporary global slowdown at the beginning of the year, cargo started to grow again in the spring, and cargo volumes handled by Budapest Airport in the first half of the year was 91,452 tons, which means that the annual target of 200,000 tons seems to be within reach in the near future.

website of the Budapest Stock Exchange (BSE). Total revenue for the quarter was HUF 203.78 billion, up 5.6% year-on-year.

Inflation led to a drop in demand for spirits both at home and in Zwack Unicum's largest export markets, while raw material prices and personnel costs have skyrocketed, the company said in its quarterly report on the website of the Budapest Stock Exchange. The company's gross sales fell by 10.9% to HUF 8.9 billion on an annual basis, while net sales excluding the public health product tax fell by 6.2% to HUF 5.3 billion.

The comparison is somewhat distorted by the fact that the company reported the reimbursement of brand owners of distributed

Net sales of domestic products contracted by 7.1%, net sales of own-produced products in the domestic market by 8.6%, including premium products by 7.7%. In the premium segment, sales of Kalumba decreased the most. Among the quality products, Kalinka achieved sales at the same level as the base, while Hubertus sales fell by more than the average. According to the company, the overall decline in domestic sales is becoming increasingly noticeable as a result of high inflation. On average, retail channels saw a drop in volumes of almost 12%, while wholesale channels saw a 26% drop. The high base also played a significant role in the latter. Export markets were no remedy either, with sales falling by 13.3%. In Italy and Romania, turnover fell by 18% and 24% respectively. The bright spots, however, were sales in Germany, up 8%, duty free sales up 12% and services up 68.1%.

In the second quarter of this year, Gedeon Richter Plc. achieved a profit after tax of HUF 30.0 billion, 61.1% below the same period last year, in line with analysts' expectations, the pharmaceutical company announced on the

MOL GROUP REPORTS STABLE OPERATIONS

The Hungarian oil and gas company MOL Group announced its financial results for Q2 and H1 2023 on the website of the Budapest Stock Exchange. In the first six months of the year, the Group delivered USD 1,125 mn EBITDA while in Q2, the EBITDA reached USD 411 mn.

Both Downstream and Upstream results were hit by worsening macro conditions and upheld massive government levies, including extra taxes and extra mining royalty fees. Moreover,

2nd quarter results were also distorted by a new revenue-based extra tax in Hungary amounting to USD 315 mn for full-year 2023, recognized fully as a one-time expense in Q2.

The Consumer Services segment rebounded from last year’s lows and produced almost 43% of MOL Group’s total EBITDA, partly mitigating the effect of the adverse external environment.

MOL Group sets its EBITDA guidance for full-year 2023 to approximately USD 0.5 bn. Chairman-CEO Zsolt Hernádi commented on the

The company posted a profit after tax of HUF 69.04 billion in the first half of this year, down 40.0% year-on-year, with sales revenue of HUF 413.43 billion, an increase of 14.5%.

Gedeon Richter CEO, Gábor Orbán stressed that “in the first half of 2023 higher than expected Vraylar royalty revenues and solid demand across markets and business units boosted our sales figures. While underlying profitability remained solid as reflected also in cash generation, headline earnings numbers were hit by a number of one-off factors in this period. The sale of the wholesale and retail arm in Romania dented topline in Q2 but left operating profits unaffected. The proceeds of the sale were greater than book value and this, along with hedge operations, offset a big part of the revaluation losses coming from continued negative foreign currency trends. Recent additions to our WHC portfolio add up to significant future revenue and earnings potential and will contribute to securing a leading position in European Women’s Healthcare.“

results as saying that “the macro environment was not good enough to counterbalance the negative effects of governments’ interventions in the CEE region that have no doubt left their marks on our results in the first half of the year and especially in the 2nd quarter of 2023. The current level of governments’ takes – unless these extraordinary measures are phased out in the near future – will deteriorate MOL Group’s competitiveness and burden our cash flow generation needed for our investment plans.”

VÁCI UTCA 9. H-1052, BUDAPEST

LUXURY EYEWEAR AND OPTIC

RICHTER'S REVENUE INCREASED, PROFIT DECREASED

A SCHOOL CLOSE TO THE CORPORATE WORLD

This year is exceptional in the life of the ESSCA school of management as it celebrates not only the 30th anniversary of the Bu dapest Campus but also the same of the Paris Campus as well as the opening of the Malaga and the Luxembourg Campuses. In 2023, a wide range of program s are organized both on the global and the local level.

In Budapest, ESSCA started the anniversary year with a reception organized for ambassadors accredited to Hungary. “As the Budapest Campus of ESSCA welcomes students from all continents, we are convinced that we need to have a very good relationship with the embassies of the countries where our students are from. We wish to let them know that there are students at our institution from their countries and show them what the student learning experience is like,” Campus Director Professor Dr. Zsuzsa Deli-Gray tells Diplomacy&Trade.

In February and March, ESSCA organized an open day for the members of the International Women’s Club in order to showcase activities proposed to students to reduce stress and develop balance in their lives. “In our attempt to transform our Campus into a truly sustainable institution, we try to increase the awareness and attention of our students of the importance and meaning of sustainable development. Every month, we organize at least one CSR-related, optional program for them, which helps them understand the many different dimensions of sustainability,” she adds.

“This September, we organize the first event of a thought-provoking conference series on Artificial Intelligence titled ‘Leading the Way to Develop New Skills for Europe’s Digital Era’. This conference is a testimonial of the commitment and dedication of ESSCA to equip their students and colleagues with the skills which are needed to thrive in the new dynamic era. The graduation ceremony of our ‘Bachelor in international management’ students will also take place then in the presence of the members of ESSCA’s Board of Directors. A cocktail reception is organized at the National Museum in Budapest at the end of September for the different partners of ESSCA in order to celebrate together the constant development and internationalization of the School,” the Campus Director highlights.

A ‘Triple Crown’ school

ESSCA's institution and its training courses are accredited by the three most prestigious accrediting bodies in the world, the American AACSB, the British AMBA and the European EQUIS. There are just over 110 business schools in the world that have received recognition from all three bodies, i.e. that have been awarded the ‘Triple Crown’. These accreditations make all stakeholders of the School proud of belonging to ESSCA as well as of their respective contribution to the high quality of work, which is appreciated by the

accreditation bodies, Dr. Zsuzsa Deli-Gray says.

“This recognition encourages colleagues and students to go further and be deeply involved in the value creation processes at ESSCA. They also represent a guarantee of the quality that the School represents and creates. They serve as a distinguishing fact in the education market, helping future students and their parents select schools where quality and value systems align most with their expectations. In addition, these accreditations represent more and more the basis of inter-institutional collaborations. For example, all our students have to spend at least one semester abroad, and thus, it is of the utmost importance to propose them international partners, which are of the same quality as ESSCA. All in all, these accreditations help to create and develop trust towards the school through the rigor and credibility of the accreditation process.”

Dating back over 110 years

ESSCA is very proud of its history as well as of all the experiences it gained during the last 114 years.

“In 1909, the School was built on very strong and stable values, which make ESSCA solid and precious. The respect of the original values is

coupled, however, with the constant wish of the School to integrate new principles, practices, methods and challenges into all of its activities and to be a trend-setter in developing the educational field. ESSCA continuously works on elaborating more and more creative and innovative ways of teaching, tutoring, team working, etc. and trains all of its professors on how to apply them in their various activities. It pays increased attention to bringing new technologies such as the diverse dimensions of artificial intelligence into the classroom, helping the students to understand their impact as well as their application from an economic, social, legal and technological point of view,” the Campus Director points out. In response to the new, rapidly changing environment, ESSCA works on new principles and more integrative solutions. The intent of the School to reorganize its Campuses and processes according to the requirements of sustainable development is a very good example of these efforts, which are nicely reflected in the mission of ESSCA: “The ESSCA School of Management creates knowledge and develops responsible managers and entrepreneurs, while fully considering the human, ethical and economic dimensions of

organizations in a multicultural environment driven by technology and social innovations.”

Fairness and opportunities

In addition to guiding students' academic paths toward achieving excellence in pursuit of managerial careers, ESSCA is known to be a school of management that develops future managers who work in a human, responsible and ethical manner. The overall organization of the School as well as the whole curriculum is based on this principle. “We do not only integrate a class on ethics or on humanistic methods into the course structure but we build these philosophies into all of the classes. We organize several extra curriculum activities around these values and work on many different professional projects together with the students.

A closed loop evaluation system ensures fairness and proposes opportunities to discover, analyze and correct any misfunctioning at all levels. ESSCA has always been famous for its transparency, for its correctness in dealing fairly and immediately with all situations. Students, professors and staff members of the School all appreciate ESSCA’s commitment to these values and principles and are proud to belong to an Institution that creates a safe and reliable teaching and learning environment for them.

Close to the corporate world

A high proportion of ESSCA students have started their careers at firms where they secured internship positions, and nearly 80% of them have signed employment contracts before they even graduated. “These numbers clearly show that there is a significant demand for our students in the labor market. Companies appreciate the competencies our students develop during their studies, find their theoretical and practical knowledge solid and trust ESSCA for the transfer of its key values to the graduates. The enterprises are also well integrated into the activities of the School: they have seats on the Board of Trustees, on the exam panels, in the development of the curricula, etc.,” Dr. Zsuzsa Deli-Gray notes. This closeness to the corporate world demonstrates ESSCA’s efforts to ensure that students receive the most up-to-date, relevant trainings, specializations, courses and skills. No matter which specialization the students opt for at the School, they gain the experience through both professional and personal development, which enables them to find their ‘dream’ job in the home market or in the international one.

ESSCA BUDAPEST CAMPUS CELEBRATES THREE DECADES WITH A SERIES OF EVENTS

MORE SMOKE THAN FIRE?

BY TAMÁS MAGYARICS

When BRIC was established by Brazil, Russia, India and China in 2009, and when South Africa joined them a year later changing the acronym to BRICS, contemporary observers started to visualize the end of a Western dominated world. The informal association was dormant for all intents and purposes for some time; true, the members established the New Development Bank in 2015 – but not much more in terms of joint action.

What do they have in common?

In fact, to start with, the grouping’s grand strategy is more than fuzzy. Two of the five members, China and Russia seem to be intent on creating a new world order; a ’multipolar one’, with President Xi Jinping’s favorite phrase to redistribute power, first regionally, then globally. Vladimir Putin does not make a secret about his intentions along these lines; there was all in his speech at the Munich Security Conference in 2007. However, two other members are not so sure whether a world in which China and Russia were to play a more dominant role, is in their best interest. Brazil and India still see the U. S. (Western) global order as offering them the relatively best opportunities for economic catch-up – for instance, India’s largest trading partner is still the U.S. As for New Delhi’s security policy, the major threat to India is China: they have border conflicts, disputed territories, India’s major challenger in the region is Pakistan with strong Chinese links, and so on. It is not surprising at all that India is part of the so-called

Quad, and informal security cooperation forum of the U.S., Japan, Australia and India. It seems that South Africa is a member only on account of a gesture towards Africa; the country is not in the same league with the others in any sense, economic, political, or strategic for that matter.

New, conflicting members in sight

The grouping’s potential is considerable at first sight. The member countries account for 26% of the global GDP, and its increasing; by putting it into context, the G7 generate 43% of the global GDP, but their share is decreasing. The share of the BRICS+ will definitely grow. One of the major, or, arguably the single most important decisions at the Johannesburg Summit in late August was the expansion of the grouping. Previously, some 60 countries indicated that they were contemplating membership; ultimately 22 of them formally applied, and finally the following six countries have been offered membership effective January 1, 2024: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE). The candidate countries form an interesting mix; it seems that it is not economic performance that has been the most important criterium in inviting them. Again, Africa is the ’poor relative’ here; Ethiopia and Egypt are not likely to be the driving force in BRICS+ – and neither is Argentina. With Buenos Aires in, the grouping may be importing another regional rivalry; this time with Brasilia. At the same time, Argentina is a more vocal critic of the U.S.-led world, and especially the role played by Washington in South America. The economic heavyweight of sorts among the new members is undoubtedly Saudi Arabia with its key role in global energy policies.

Moreover, the U.S.-Saudi relations have been spectacularly deteriorating recently over energy policies and the Russo-Ukrainian war; namely, the Saudis reluctance of following U.S. lead in sanctions against Moscow. Mention should also be made of the weakening U.S.-Egyptian cooperation: the letdown of longtime ally, Hosni Mubarak in 2011 by the Obama administration during the ’Arab Spring’ caused a number of Egyptian politicians and military to think hard about the value of American support in case of emergency. The anti-U.S./West ’fire-eater’ is unquestionably Iran; Tehran is bound to attack vigorously the current global order and to demand its restructuring.

A push by Beijing and Moscow

The expansion of BRICS was supported by each member, but China and Russia were especially determined to bring in new members – largely to strengthen their own positions in the global arena. At the moment, Vladimir Putin was perhaps the most avid advocate of inviting new countries into the organization. The Russians can claim that there are still a large number of countries that are dissatisfied with the distribution of power in the broadest sense in the world; more specifically, Moscow is able to demonstrate that despite the concerted efforts by the U.S. and its allies both in the Atlantic and the Pacific regions, it is not isolated at all in the world because of the war. Russia may also think that more members may balance China’s predominance, and may give a larger elbow room for her in case Beijing wished to pursue policies not quite to the liking of Moscow. China has been making a virtue out of necessity for a long time

by claiming that alliance-building is 19th or, at best, 20th century (bad) practice; China does not need formal military, political, economic allies like the U.S. Xi Jinping may have realized that history has returned (in fact, it has never left), and good old-fashioned alliances may, after all, be beneficial for realizing his (over)ambitious goals by, say, 2049. The global success of the U.S. in the past decades is a proof that one ’cannot go it alone’; global power/hegemony/ imperial power does need allies who are willing to support the hegemon in return for benefits offered to them by the hegemonic power.

Not a coherent group

Given the current, and especially the potential future membership of BRICS+, it is absolutely justified to talk about it as a sort of ’Global South’, or ’the Rest’ in the ’West and the Rest’ (pace Niall Ferguson) relationship. It is clear that American (Western) economic, political, and even cultural hold over the bulk of the nations in the world is not what it used to be. The dispersion of power is a hard fact that countries large and small should understand. The BRICS+ is endeavoring to give this tendency a quasiorganizational framework. However, lacking a coherent ideological basis, a commonly shared grand strategy, and being based on sometimes transitory real or perceived interests are not historically speaking a very good recipe for a strong and lasting alliance/organization. BRICS+ has to work hard to emerge as a peer competitor for the U.S.-led global world order.

Tamás Magyarics is a foreign policy analyst

THE BRICS SUMMIT IN JOHANNESBURG

STRENGTHENING BONDS AND NAVIGATING CHALLENGES

Swiss Ambassador Jean-François Paroz's tenure epitomizes the intricate dance of diplomacy – adapting to shifting currents while upholding core principles, fostering economic prosperity while addressing challenges, and celebrating cultural ties that transcend borders. In an interview with Diplomacy&Trade, the Ambassador explored the nuances of his second term in Hungary, delving into the shifting political landscapes, economic partnerships, cultural connections, and the ambitious Swiss-Hungarian Cooperation Program.

BY EDITH BALÁZS

Ambassador Paroz's second term is marked by his resolute determination to evolve his approach, reflecting the changing dynamics of Hungary and Switzerland, as well as his own growth. "When I started my second term here in Hungary, I was determined not to repeat my previous mandate," Paroz reveals. “Hungary has changed, Switzerland has changed and I have changed.” The landscape has indeed transformed since his first term,

with Hungary showing newfound confidence and successes, while Switzerland's relationship with the European Union evolved, accompanied by tensions and resolutions.

Paroz candidly acknowledges Hungary's isolation due to its official narrative about the war in Ukraine, which is hardly understandable for many European and NATO partners. "This narrative has created negative impressions and reactions in Switzerland as well," he says, emphasizing Switzerland's clear stance against Russia's intervention in Ukraine. He underscores

the importance of maintaining peace without compromising principles, while highlighting the increasingly strained relations between Hungary and the EU. Although this does not directly impact Hungarian-Swiss relations, Switzerland keeps a keen eye on these developments as it seeks to safeguard Swiss interests. “The increase of the nationalistic character of Hungary’s economic policy against the backdrop of high inflation and the freeze of EU funds is a bothersome development for Switzerland and Swiss investors,” Paroz notes.

INTERVIEW WITH SWISS AMBASSADOR JEAN-FRANÇOIS PAROZ

Strategic goals for a positive future

In the face of challenges, Paroz charts a course to strengthen the Swiss-Hungarian relationship and advocate for collaboration. "Because of the war in Ukraine, the image of Hungary has become somewhat negative in Switzerland." This, he believes, affects his role as an Ambassador. “When there is negative media coverage about governance and transparency issue, I find myself on the defensive in my work as Ambassador and I have to present more expressions of concern to our Hungarian partners,” the Ambassador says. One of his prime objectives is to enhance Switzerland's visibility and communicate its positive contributions across Hungary, extending beyond Budapest.

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A centerpiece of his strategy is the second SwissHungarian Cooperation Program, initiated in late 2022. This 10-year program, focused on research and development, small- and medium-sized enterprises, energy efficiency, healthcare, and more, seeks to tangibly reduce social and economic disparities. Paroz asserts that the program isn't a political endeavor but a practical means to create lasting change on the ground. “Switzerland is providing 85% of the funds for all the projects included in the program. My country has committed roughly 90 million Swiss francs to the program whose main goal is to reduce social and economic inequalities and to better manage migration in Europe,” Ambassador Paroz notes.

Building prosperity

Switzerland's economic footprint in Hungary is substantial, with Swiss companies employing over 31,000 Hungarians. Paroz commends the ongoing success stories, spotlighting Nestlé's expansion of its pet food production facility in Bükk, MSC's logistics hub in Gönyű, and Stadler's capacity growth. “MSC, the shipping company, is building a multi-model logistics center in Gönyű. The center will be a hub on the Danube connecting ships and the railway. This is a project of outstanding importance, as the war in Ukraine has proven that alternative means and routes for transportation are vital,” notes the Ambassador. This economic relationship isn't just about job

creation, Paroz stresses, but about fostering prosperity throughout Europe. He acknowledges that there is continued interest on the part of Swiss investors in Hungary and notes that there is a shift towards investing in innovative sectors with higher value added, such as medtech.

Addressing challenges

However, Paroz stresses that the Embassy and Swiss authorities have challenges in Hungary that they need to address. "In terms of values and mutual trust, things are not always going in a good direction. Some measures taken by the Hungarian government are having a direct negative impact on Swiss companies," he states. Paroz brings up the example of special taxes having been levied on construction companies in 2021 and government officials going on record saying that Hungary must take advantage of the war in Ukraine to expel foreign investors from the construction industry. “As a partner with Swiss interests in the Hungarian construction industry, we cannot accept this. And when government measures are taken that essentially force foreign investors to sell their company in Hungary and make them unprofitable, you are entering into a practice that is not acceptable between friends. We have an ongoing dialogue about the issue but this is a critical moment,” the Ambassador notes.

Cultural bridges and exchange

Beyond the political and economic spheres, cultural exchanges remain a vital bridge between Switzerland and Hungary. Paroz shares that while these interactions are primarily driven by institutions, performances by Swiss artists have enriched Hungary's cultural landscape. He highlights the performance of the Orchestre de la Suisse Romande at the Palace of Culture in Budapest, of Swiss conductor Charles Dutoit collaborating with the MÁV Symphony Orchestra, and Swiss jazz musicians taking the stage at the Opus Jazz Club in Budapest. The Embassy will continue to organize Swiss Days in various Hungarian cities, engaging in dialogue with economic partners and nurturing cultural ties. We have had Swiss artists taking the stage in Veszprém as part of the European Capital of Culture programs there and the upcoming International Book Festival will also provide a platform for intellectual exchanges.

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A COHESIVE AND RELIABLE COMMUNITY

SWISS CHAMBER ORGANIZES MORE EVENTS WITH SUSTAINABILITY IN FOCUS

The Swiss-Hungarian Chamber of Commerce (Swisscham Hungary) has more than a quarter of a century of history. It is described as a cohesive, reliable, quality community. The organization’s President, Dr. István Béres, and its Director, Júlia Lipovecz, tell Diplomacy&Trade how these characteristics are reflected in the chamber's daily activities and the events held.

“Whenever we come up with a new plan, event or series of programs, we can always count on this close-knit, reliable community of members,” the President points out. It is so much so that after the new coronavirus epidemic, “there was a kind of revival and a need for greater collaboration. “We already have a full list if ideas for this year coming from our members,” the Director adds.

István Béres emphasizes that “the cohesive community is a huge advantage, but it also gives us a task to do: our stable membership has got to know each other very well over the years. So, to do something new in networking, we need to push the boundaries. Thus, the aim is to have more popular events. We plan events with other chambers in topics that we know our members are interested in but we have not had recently. On such occasions, we inevitably meet members of German, French, Austrian, Dutch, Swedish chambers. We are killing two birds with one stone: these are varied programs and provide new networking opportunities again and again.”

Events

In 2023, Swisscham held a number of interesting events. The 'Lake Balaton – Lake Geneva Symposium on Sustainability and Harm Reduction', which was co-organized with the Embassy of Switzerland in Hungary on the occasion of the 55th Blue Ribbon Grand Prix yacht

race on Lake Balaton was a professional day involving corporate, governmental and academic sectors. The aim was to engage stakeholders in a knowledge-based dialogue on sustainability efforts and the latest scientific and mitigation approaches. The title of the event was inspired by the fact that the global headquarters of the companies invited to the panel discussion are all located in Switzerland, on the shores of Lake Geneva. "The program was a further confirmation of our chamber's commitment to a more sustainable future, as well as an exemplary combination of a professional event and of one of private interest as we could be watching the yacht race up close," the President explains.

Júlia Lipovecz brings up a bit more social event, a backstage tour of the renovated Hungarian Opera House in Budapest. “Most people don't have the opportunity such as we have had there, and that's another direction that we've been emphasizing at the Chamber: engaging in the cultural, artistic world, where we also see that there are already close links with the economy at many points and thus, there should be links built up there too.”

Continuing with the list of important events, István Béres mentions their most traditional one, the General Assembly. "We always try to invite some good speakers. This year, our guest was Mihály Patai, the vice-president of the National Bank. He spoke in a clear and focused way about macroeconomic processes that affect our daily

lives. It was not a complicated economic speech but a very concrete one about the impact of price freezes and the causes of inflation. It is rare to find a source more illustrative than that, because in the National Bank, all the data converge, all the financial data are interconnected.”

Working with embassies

Swisscham organizes events together with the Swiss Embassy in Budapest and Ambassador Jean-François Paroz frequently appears at Swisscham events as are people from the Hungarian Embassy in Bern. “We are in daily contact with both embassies. Obviously, with the one in Bern mostly by phone or e-mail, but often, they attend in person. Because of the proximity, of course, we have more effective cooperation with the Swiss Embassy in Budapest. Ambassador Paroz is already on his second mission here, so, he knows Hungarian conditions very well. We know him, we know that he is creative, full of ideas and energy. He has got diplomacy up his sleeve, knows the diplomatic boundaries, but within those, he is very active,” the President highlights.

Switzerland in Your City

One of the Swiss Embassy's aims is to make Switzerland better known outside Budapest to institutions, municipalities, local businesses and even schools. One great way to do this is the

‘Switzerland in Your City’ program, which took place in Debrecen in 2022 and will be held in Pécs this year. Swisscham is linked to this, and in partnership with the embassy, they organize the business programs at these venues around the country. As István Béres puts it, “it's very good for us, because in Hungary, even if not everything, but a lot of things are concentrated in Budapest. When there is an ambassadorial initiative like that, we can activate the members in the given region and organize a forum for them. The event in Debrecen was a success, and this year, we are working hard on the one to take place in Pécs at the beginning of October, while next year, we are planning an event in Western Hungary. It has been suggested that it could be held in the millennial abbey in Pannonhalma. I think this is something new in the life of a chamber of commerce, but the thousandyear-old tradition, the openness, the culture and the location in the middle of the area between Győr, Sopron, Szombathely, Lake Balaton and Sopron are all favorable features.”

Júlia Lipovecz adds that Swisscham used to organize a Swiss Business Day every year in previous years, but even before the new coronavirus epidemic, the idea was already there to transform this event. “We were able to integrate the economic part into the ‘Switzerland in Your City’ series of events – now not only in Budapest. What was previously in the capital was more of an exhibition, now we are bringing Swiss content to other cities. Of course, we are making sure that there is a focus on Budapest and that there will be a stop here as well.

Focusing on sustainability

Swiss voters have backed a new law that seeks to accelerate the country's shift from fossil fuels to renewable energies and reach zero emissions by 2050. As to how sustainability appears in the activities of Swisscham, itself, the Director’s prompt reply is: “very much so. In addition to the Blue Ribbon race mentioned, sustainability will also be the theme of the Swiss Economic Day in Pécs. Swisscham, as a responsible organization, is specifically working on this at project level, from tree planting to the inauguration of an insect hotel, which took place last year. We try to focus on this theme from all sides. Obviously, also because it is an important issue for our member companies – they have achieved or would like to achieve a lot. So, we are following this, and where we can, we get involved, or we organize a lot of events ourselves.”

István Béres adds that “as it happens in Switzerland: they pass a law and then they start to implement it diligently. It's also obvious that they start with the biggest economic actors. We can help achieve this goal by passing on the very good experience that has already been accumulated in these companies. At the Balatonfüred event we mentioned, for example, we heard some interesting correlations and data on how much it costs in terms of money and emissions to transport something a certain distance by trucks, or the same thing by train or boat. Everyone listened with great interest to this information and data, so that they could use it in their own area of business.”

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HEALTHY PRODUCTS FOR HEALTHY LIFESTYLE

several times, for instance, last year, on the occasion of the company's 30th anniversary. When a health day was organized at the Swiss Embassy, I gave a presentation about my own hospital history and warned everybody to go to colonoscopy test not later than at the age of 40, or even earlier. Of course, there was no shortage of salads either. The latest embassy event with our participation was in August this year for the World Athletics Championships. So, we have a very strong relationship with both the embassy and the chamber, we support all their initiatives, and where they are, there is always salad.”

Keeping the company profitable

The vegetable processing firm Eisberg Hungary, located in Gyál, just southeast of Budapest, is renowned for great working culture, inclusion and innovation. The company, part of the Swiss Bell Food Group, has been maintaining its market leader position for over three decades. The challenges brought on by the new coronavirus epidemic and the Russian invasion of Ukraine have affected the company, just like many other firms, but, as Managing Director Zoltán Gazsi tells Diplomacy&Trade, they have not given up propagating healthy lifestyle and producing foodstuff that help achieve that goal.

This May, Eisberg Hungary participated in the International Salad Month for the second year in a row. “30 years ago, there was no serious consumption of ready-toeat salads in this country. That's when we started to take every opportunity to see how we can incorporate it more and more into our food culture. It's not an easy process because you have to practically change the eating habits of a country. It's not just about salads, it's also about getting people to go for health screening tests, for example,” the Managing Director points out. He adds that there is no traditional culture of salad consumption in this country, but the situation is changing – fortunately in a positive direction. “At Eisberg, we have taken a lot of opportunities over the past three decades to get people to try eating salad, we have 350-380 events annually, including sponsorship and CSR activities, with people tasting our products and most of them finding out from their own experience that salad with a delicious dressing is cool and tasty. In addition, as most Hungarians are wallet-sensitive, we have introduced one-portion salads and despite the enormous inflation, only a small part of the extra cost has been built in the price to encourage food conscious Hungarians continue eating our healthy, convenience salads”, he says.

Good quality food important

With further regards to healthy lifestyle, Zoltán Gazsi notes that those who go to the gym, the athletic urban class, the educated class who are mindful and conscious, they have already been Eisberg customers. The question here is how to get more people on board. “For the average Hungarian housewife, Sunday lunch is usually meat soup, fried meat and French fries. How to get her to add some salad, not just pickles, but fresh produce? Access to good quality food is the result of conscious thought, but in an environment of 50% food inflation, people don't have the money to always choose healthy food at the grocery store. We urge everyone that it is not good quality food that they should spend less money on.”

Eisberg’s packaged fresh salad mixes are entitled to bear the logo of the GREEN BRANDS trademark. It ensures that the certified brand is truly environmentally friendly and sustainable, thus contributing to the protection of the environment, nature and climate, as well as the preservation of valuable natural resources. The company has been committed to these values for many years and the new trademark is an acknowledgment of this effort.

Eisberg wants to set an example by not only showing the outside world how to eat healthier, but also by helping its own employees. As the Managing Director puts it, “just because they work at Eisberg, it doesn't mean that everyone is fit and doing sports etc. On the one hand, this year, we have a nutrition program to help employees change to a healthier lifestyle, and on the other, we have a physiotherapist and a dietician to help people who want to lose weight. A most recent six-month program was successful in starting an internal awareness that ‘yes, you are in charge of your own destiny’. Don't trust that if something goes wrong, the government or medicines, etc. will save you. Whatever you can save on medicines, spend that money on good quality food and be more conscious of what you eat!”

Strong embassy and chamber ties

Being a Swiss-owned company, Eisberg Hungary has very close relationships with the Swiss Embassy and the Swiss-Hungarian Chamber of Commerce (Swisscham) with the company providing all the support they can for the cooperation, Zoltán Gazsi, who is also member of the Swisscham board, stresses. "Ambassador Paroz has been to our plant

As for business in the first half of this year, with Hungarian inflation at an unprecedented high level in Europe, consumers have started to make different choices. “It's always very difficult when there is a fear in the system, when people don't know how much their gas and electricity bill will be, whether they will get a pay rise or not. There was a big scare in our company when the store chains had a drop in sales, often 15-25%. We did not lose many consumers, but they became more cautious and more careful about their purchases. We were keen and successful acquiring new clients, which was needed to keep our production efficiency, and also looked at the biggest cost items over and over again, still being able to find improvement areas. As workforce availability in Hungary is still a continuous challenge, we have balanced our team with Indonesian workers: the integration went well, productivity went up. Global warming uncertainties adversely affect vegetable growing and we do not expect climate conditions to get much better in the near future, so, prices will continue to increase. The Eisberg management learned that the only way to stay afloat in this market was to be very careful with price increases, so we kept convenience salad inflation far below average food inflation. The extra tax on retail chains have increased the pressure on the whole food industry sector, and as a result of all above, the profitability of Eisberg has clearly declined, we expect around only 1-2% this year,” the Managing Director explains.

Believing in a growing market:

convenience will not go out of fashion

“From November, we will be launching a new type of product line based on dietician recommendations: bowls of ready-to-eat, colorful and convenience salad, which will give us a very strong share of that market segment. All in all, we are building further awareness of how to target people who could actually be persuaded to eat salads and eat healthier.”

In another important development for future growth, Eisberg bought a plot of land next to the processing plant in Gyál, because we strongly believe that the market will grow. “Eisberg has a large Austrian plant in Marchtrenk, near Linz. It has four large halls where they produce a wide range of products, and we are considering to supply them with raw produce and certain semi-finished products made here in Hungary. The company is investing in the Hungarian market because it believes that this country can play an important role in supplying neighboring countries as there is a future for this product range in the whole region,” Zoltán Gazsi concludes.

“WHATEVER YOU CAN SAVE ON MEDICINES, SPEND THAT MONEY ON GOOD QUALITY FOOD”

Changing the practice of medicine

At Novartis, we harness the innovation power of science to address some of society’s most challenging healthcare issues. We are passionate about discovering new ways to improve and extend people’s lives.

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A DECADE OF CONSTANT GROWTH

GIVAUDAN PRODUCTION FACILITY IN MAKÓ CELEBRATES 10TH ANNIVERSARY

Givaudan, the leading manufacturer of flavors and fragrances, recently celebrated the 10th anniversary of its Makó manufacturing site, in southeast Hungary. The event included a special ceremony attended by employees, senior company executives and experts. The celebration marked a significant milestone for the company site, recognizing a decade of innovation and development that has helped support regional and global business growth in a highly dynamic industry. According to the Head of Operations and Company Manager at the Makó plant, Mihály Karkas, much of the success of the facility is due to the hard work and dedication of the staff and their commitment to continuous improvement.

With over ten years of operation, Givaudan’s Makó facility, which is part of the Givaudan Taste & Wellbeing division, employs close to 600 people, most of whom were present at the anniversary celebration.

It was in August 2010 that Givaudan – following a long selection process involving many possible sites in several countries – announced that it would create a plant in Makó with an investment of CHF 170 million, which was the largest investment sum in the company’s history at that time. The next milestone was on December 6, 2012, when the first commercial shipment was loaded on a truck to leave the plant. Today, the Makó factory ranks 5th in Csongrád-Csanád County in terms of sales revenue and was the county’s largest exporter in 2021.

Manufacturing excellence

During the past decade, Givaudan has grown from a company with revenues of CHF 4.4 billion to revenues of CHF 7 billion, while expanding its offering from flavor and taste to health and nutrition ingredients, preservation and texture solutions, and natural colors. By leveraging

automation and maximizing capacity, the team in Makó has delivered an incredible standard of excellence in its production and for its customers, bringing the Makó site to life and making it a model for Givaudan and the industry as a whole. The real value of the Makó facility is not only its

great technology and tools, but also its people. During the past ten years, many who started as students have become experts and have shared their knowledge and expertise to help drive the business forward and to continually better understand the market needs.

Sustainability

In addition to its manufacturing excellence, Makó has achieved several sustainability targets, including a reduction in its annual water consumption ratio by 13.6%, electricity consumption ratio by 25.7% and the natural gas consumption ration by 13.1%.

The volunteer-based team, known as the ‘Green Team’ promotes and stimulates energy consumption reduction efforts across the site. The factory also consumes 100% green electricity, and with small improvement ideas (kaizens), the site has been able to eliminate unjustified energy consumption and waste. The company also launched last year the ‘-20% energy reduction program’ to which the Makó factory contributes significantly. The latest success story in Makó is the installation of two heat pumps which are beginning to deliver over 600 tons of CO₂ emission reduction for the site.

Social responsibility

The Givaudan Foundation, a non-profit organization, was established by the company ten years ago to reinforce its commitment to the communities in which it operates.

In Hungary, in 2020-21, the Givaudan Foundation joined forces with the Red Cross to help families and individuals who are in a difficult position. The Foundation provided voluntary donations and financial support so that the Red Cross could organize training for schoolchildren. Givaudan believes it is important to raise a generation who are conscious about themselves, their surroundings, and their peers.

In 2022-23, Givaudan organized a ‘Dental screening program for Makó’, involving four screening days. Dentists screened 551 children and provided over 1,000 dental packs (toothpaste, toothbrush, mouthwash, and plastic glass).

The Hungarian Red Cross awarded Givaudan Hungary the title of ‘Supporter of the Year’ in 2022, for the second time since 2017. This came in recognition not only of the financial support the company provided but also of its employees’ commitments to the community, including collecting supplies and participating in companyorganized blood donations.

Continuous improvement

Mihály Karkas stresses that over the next few years, the fundamentally continuous improvement is the biggest driving force behind the factory, and this is exercised in terms of efficiency, productivity, quality improvement, and improving the factory’s safety record. With these key areas of focus, the factory's performance continues to strengthen and improve year-on-year.

This involves increasing capacity at certain points and for certain technologies at certain times. For example, the Makó teams are already working on plans to introduce more new technologies to implement as the market situation may require. With this approach, the Makó factory is perfectly equipped to continue answering customers' needs and market demands with maximum quality and efficiency.

photo by BARNABÁS BORKA, GIVAUDAN

MIHÁLY KARKAS (ON THE LEFT) WITH THE HEAD OF T&W OPERATIONS EUROPE, GIOVANNI FUNEL

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TRANSFORMING THE TOBACCO INDUSTRY:

A PATH TO HARM REDUCTION AND SUSTAINABILITY THROUGH INNOVATION

In the face of mounting evidence regarding the harmful effects of traditional cigarettes, the tobacco industry is undergoing a remarkable transformation driven by sustainability and harm reduction. As the dangers of cigarette smoke become increasingly apparent, the need for innovative solutions that reduce harmful emissions while satisfying consumer demands has become paramount. Therefore, sustainability has gained a pivotal role in reshaping the tobacco industry and its potential to create a future where smokers cause less harm to themselves and the world around them.

The toxic legacy of cigarette smoke

Cigarette smoke contains a staggering array of toxic chemicals, including arsenic, formaldehyde, cyanide, lead, nicotine, and carbon monoxide. Many of these substances have been irrefutably linked to the development of various diseases. From lung cancer to cardiovascular issues, these toxic compounds have cast a dark shadow over the allure of smoking. Nonetheless, currently, an estimated one billion smokers worldwide are still at risk of premature death due to smoking-related diseases. Despite concerted efforts by health authorities and governments to curb smoking rates, this number remains substantial, and it's projected to persist due to population growth.

Innovation and harm reduction transform tobacco industry

Faced with this global issue, the tobacco industry recognized the need for a comprehensive solution, combining prevention, cessation, and harm reduction. It started to actively respond to consumer demands for less harmful alternatives. The advent of e-cigarettes, heat-not-burn devices, and nicotine pouches are testament to this shift. These alternatives offer smokers a chance to satisfy their nicotine cravings without the harmful combustion processes that generate toxic byproducts in traditional cigarettes. There have been many studies on the use of smokeless tobacco products, and the technologies themselves have been subjected to extensive testing by various independent organisations and authorities as well for the past decade. These have shown, among other things, that smokers who switch to smokeless alternatives have a 94% reduction in exposure to harmful substances.

A sustainable vision for the future

The pursuit of harm reduction through innovation and sustainability holds the promise of transforming the tobacco industry's trajectory. Their success in reducing harm brings us closer to a sustainable future, where smokers have access to viable, safer tobacco alternatives. However, the challenge is complex, given the persistence of smoking rates despite the undeniable health risks.

This article is a public service advertisement financed by Philip Morris Magyarország Kft.

A SMOKE-FREE FUTURE IS OUR COMMON INTEREST

Many people know that smoking can cause several different illnesses; fewer people know that the main culprit isn’t nicotine, but the harmful and potentially harmful chemicals in cigarette smoke. Still, it must also be made clear that nicotine can cause serious dependence and increase the heart rate and blood pressure. Smoking is also bad for the environment, as the smoke and thrown away cigarette butts pollute the soil and our waters. It is very important to always make sure that cigarette butts end up in a waste bin.

The best is if one never starts smoking, but if somebody is already a smoker, they should try to quit. However, some adult smokers don’t wish to give up this habit in spite of the health risks. They should seek for credible information on smoke-free alternatives, which provide nicotine intake without burning and smoke.

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ADDRESSING UNMET PATIENT NEEDS

NOVARTIS HUNGARY TO COORDINATE CLINICAL OPERATIONS ACROSS A CLUSTER

OF COUNTRIES

The Novartis Group has been present in Hungary for more than 25 years. Country President Matt Zeller, the head of its local subsidiary, Novartis Hungary Ltd. elaborates to Diplomacy&Trade on the company’s activities on the Hungarian market with special regard to medical research and development (R&D), an area where the Group is a leading global force.

Research collaborations in Hungary cover the full Novartis therapeutic spectrum. Each year, the company coordinates and oversees around a hundred clinical development programs, offering the most modern therapies for more than a thousand patients in Hungary every year. “We focus on five therapeutic areas: cardiovascular diseases, oncology, hematology, neurology and immunology. Our work is powered by a toolkit of five R&D approaches – two established platforms (chemistry and biotherapeutics) plus three advanced platforms (xRNA, radioligand therapy and gene and cell therapy) that will play an increasingly important role in making new medicines. We are looking for innovative solutions to problems that have a significant public health impact. One example is cardiovascular diseases which are the leading causes of death in Hungary,” the Country President highlights.

He adds that they also seek to unlock their potential to treat rare diseases that affect a small number of people but can change the entire lives of the families involved, such as children diagnosed with SMA, or spinal muscular atrophy, and gene therapies for patients with inherited retinal disease, a condition that threatens blindness.

Coordination center

In May of this year, the news came that Novartis was expanding its presence in Hungary by coordinating clinical operations across a cluster of countries. As Matt Zeller explains, the Group organizes its research & development activities worldwide into regional centers. The region to be overseen from Budapest will be a diverse group of approximately a dozen countries. “Hungary is an excellent location geographically and, more importantly for drug development, it is one of those places where we can collaborate with the best minds. We have a lot to build on: 8-12% of new trials are initiated in Hungary that has reached more than 10,000 patients in the last decade, with 65 clinical trials currently underway in the country. This was the main reason why we decided that Hungary was the best place for the coordination center. Our company's investments in the forthcoming period, in addition to strengthening international innovation, will help Hungarian patients gain access to state-of-the-

art treatments and provide professional development for doctors, thus contributing to improving the functioning of the healthcare system. As a coordination center, we will also have access to earlier phases of research elsewhere, which will strengthen the research pipeline.” Novartis Hungary will not only overview, but also participate in the research it manages. This role will therefore provide the home country's professional community with more tasks and access to new ideas, methods and markets. Not only can this help doctors' professional development, but it also gives Hungarian patients faster access to a wider range of new therapies.

Addressing unmet patient needs Personalization and digitalization are major trends in medical research globally. As a drug development company, Novartis – with its very comprehensive R&D portfolio – is looking for solutions for a wide range of diseases and disease groups. “Our current portfolio of therapies

Novartis Hungary Ltd. has signed a cooperation agreement last year with Semmelweis University (SU) and the Ministry of Innovation and Technology to promote innovation in Hungarian public health through their unique public-private partnership. The three pillars it is built on are summarized by the Country President:

Gene therapy is one of the most exciting areas of global science today, and one part of our agreement is to ensure pathway to Hungarian leadership in cell and gene therapies. Semmelweis University became a certified ophthalmology gene therapy center of excellence, one of the few leading centers in the world that can successfully use gene therapies to treat both spinal muscular atrophy (SMA) and inherited retinal diseases (IRDs). SU is also the largest laboratory involved in genetic researches. SU as an IRD center has focused intensively on building broad genetic testing/ screening tools and architecture within Hungary to ensure that identified IRD patients have access to the most appropriate therapies available.

reaches 800 million people worldwide. Thus, we have to ask ourselves what impact we want to achieve with our products in the future. We are looking at the unmet patient needs that are present and will be present in the future, and how

Building on the success of the program above, Novartis has also created a framework agreement with SU to enable execution of broad genetic testing services. The scope includes the most detailed Whole Exome Sequencing techniques as well. We have jointly launched a genetic testing program for children suffering from Acute Infectious Diseases (AIDs) to support patients and caregivers in getting a diagnosis faster than ever before.

The other is to accelerate scientific-clinical research by better harnessing artificial intelligence and machine learning-based methods. Our aim is to strengthen collaboration between the signatories to increase access to new innovation with SU as a key regional site and to accelerate innovation in research through new technologies like trial digitization, new patient recruitment, new digital interfaces, etc. For example, Semmelweis University has a uniquely rich and nationally representative CVD data on set to draw on. Based on this, AI can potentially be used to determine the extent of the problem and then to estimate who is likely to develop cardiovascular disease, the aim is to find the most effective intervention in the treatment.

we can address them with specific therapeutic solutions. One example is gene therapy, which is one of the most prominent areas of science and innovation in Hungary and around the world,” the Country President notes.

The third is to prevent and treat cardiovascular disease (CVD) at an early stage by developing new types of collaborations. CVDs affect one in five people in Hungary and kill about 60,000 people each year – one in two deaths in the country, compared with one in three in the EU average. Novartis, in the framework of this collaboration, set out to determine which interventions would have the greatest impact on reducing CVD among patients in Hungary. We are approaching CVDs in a completely new way: using the latest research and innovative data analytics, artificial intelligence and machine learning-based solutions, as well as by educating patients and healthcare workers. The program aims to reach 50,000 patients in its first three years and find new ways to prevent and treat CVD on a national scale. After only six months, we are already seeing the first results of regional mapping of the population's lipid levels, and an experimental, first-of-its-kind lipid management center has been established at Semmelweis University to treat selected patients. We are proud to be part of this unique 'cardiovascular intervention' partnership, which clearly demonstrates Hungary's commitment to testing new public and private models to improve the health of its citizens.

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FOR PERSONALIZED AND SUSTAINABLE HEALTHCARE

“We have made good progress over this period, increasing the number of institutions and disease areas with direct experience with the tool –ophthalmology, diabetes, lung diseases and stroke aftercare. We are constantly collecting inputs for further development and the creation of new functions. The learnings generated in one area will help to make the implementation even more effective and wider,” the General Manager notes. This is completely in line with the current strategic directions of the sector, integrated care, integrated patient pathways and close collaboration on different levels of healthcare. The collaboration between Roche and the government continues and is focused on integrating the system in the EESZT (the National eHealth Infrastructure, the official application for the production and query of health documents in Hungary) in order to make it available to all citizens.

Focus on society, environment and economy

Sustainability seems to be a key word at Roche. In fact, as Raffaella Bondi points out, sustainability, in its broader sense, inspires everything they do. “Our three focus areas are society, environment and economy. We are committed to adding value to the country's economy constantly. In 2022, we created 746 new jobs and we reinvested two-thirds of our annual revenue in Hungary. We do not have manufacturing activities here in this country, but we focus on how to make our logistics low scale in terms of emission.”

The Swiss multinational healthcare company Roche, one of the largest pharmaceutical companies in the world by revenue and the leading provider of cancer treatments globally, has diversified activities in Hungary: the pharmaceutical, diagnostics and diabetes divisions and the Roche Service&Solution Center employ over 2,000 people altogether.

General Manager Raffaella Claudia Bondi, who has been at the helm at Roche Hungary for almost two years now, highlights to Diplomacy&Trade that this period has been a time of important learnings for her and for the organization. “Together, we have faced significant challenges, such as new waves of the coronavirus epidemic, the outbreak of the war in Ukraine or the economic crisis, which all contributed to an unprecedented level of unpredictability in the market.”

She adds that their focus has been – and will always be – patient outcomes. “We are very proud of having been able to ensure business continuity, which, in

our case, means making it possible for healthcare professionals and patients to continue having access to the treatments they need and enabling the Roche employees to work in a safe and supporting environment.”

Personalized and sustainable healthcare

At Roche, the uptake of personalized therapies is essential for value-based and sustainable healthcare. As the General Manager puts it, personalized healthcare means being able to identify the most appropriate treatment for a specific patient and deliver it in a timely manner. “It’s not only about the innovation that we pursue both in terms of advanced diagnostics and treatment solutions, but it’s also about addressing the barriers which might locally prevent patients from benefiting from those innovations. To achieve such an ambitious goal, we believe in public private partnerships and multistakeholder collaborations.”

That is why, in Hungary, Roche established a Personalized Health Care Advisory Board where key players of the health sector define specific goals and inspire action plans to bring to life Personalized Healthcare in this country. The common aim is to enable rapid and data driven decisions, which allow the identification of the most appropriate treatment regimen for each patient.

Directions of research

Roche is the highest research and development (R&D) spender in the industry. Its research is

focused on developing innovations which can transform patients’ outcomes across a variety of diseases, from oncology to neuroscience, including severe rare diseases and hematology malignancies. An example mentioned by Raffaella Bondi is the progress achieved in oncology: “in the 1970s, if you had breast cancer you had only 48% chance to live ten more years. Now it is 78%! Data show that for an increasing number of patients, cancer can be cured or life can be significantly extended while maintaining good quality living. Roche solutions have significantly contributed to this progress.” Another area of high unmet need Roche efforts are directed at (and where the company has already achieved important results) is ophthalmology. One of the main causes for blindness is connected to diabetes, which is an increasingly widespread disease. WHO estimates that the global prevalence of diabetes will grow from 177 million (in 2000) to 300 million by 2025. Diabetes can cause the loss of one’s sight, thousands are suffering from that. She stresses that “in 2010, the direct costs of vision loss worldwide were USD 2.3 trillion. Can you imagine how big a change it would be to change these numbers with simple and effective treatments?”

Digital patient pathway management

It has been more than a year and half that Roche –as part of a strategic partnership agreement with the Hungarian government – donated to the Hungarian healthcare system a digital patient pathway management application (BetMen).

She adds that on a society level, they are committed to great working conditions, support for education and healthcare, with many initiatives directed at their large number of employees.

The importance of prevention and screening

One of the accentuated goals for Roche, as a systemic partner in healthcare, is to create even more added value for society. As to how Hungarian society will able to experience the tangible results of these efforts, the General Manager emphasizes that in 2022, they decided that they want to raise awareness about one of their most important topics, which is Women’s Health. “As mentioned before, cancer care has been changing a lot and becoming much more curable, still 2,200 women die of breast cancer and 500 die of cervical cancer in Hungary yearly. Many deaths would have been preventable with constant screening. Roche in Hungary is providing an extra day off for all of its 2,300 employees who are going for annual breast and HPV screening as a reward for their self-care. We encourage other companies to join us and do the same for their colleagues!”

Besides, Roche Hungary has just finished a social media campaign where they reached four million Hungarians, conveying to them the important message of prevention and screening. “I believe that we can influence each other in the right direction, so, I ask all of you here to go for screening and tell the same to your loved ones,” Raffaella Bondi concludes.

ROCHE HUNGARY GENERAL MANAGER STRESSES THE IMPORTANCE OF HEALTH SCREENINGS

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STADLER NUMBERS BOOSTED IN HUNGARY

Stadler Rail, the Swiss manufacturer of railway rolling stock, with an emphasis on regional train multiple units and trams, has seen several important developments this year such as the completion of a change in corporate format of the main Hungarian subsidiary, selling its 2,500th FLIRT trains, its Szolnok factory producing the 5,000th car body or the announcement of capacity increase at this Szolnok plant.

region. It is since the start of the operation that Stadler Szolnok has produced a total of 5,000 aluminum car bodies. As Dr. Homolya explains, from this many components, it would be possible to compose 1,250 four-car FLIRT trains, which is an extraordinary figure. The trains with car bodies from Szolnok are operating in 14 different countries, including the USA, Great Britain, Italy, Germany or the Netherlands. This achievement demonstrates strongly the weight and importance of the Hungarian factory in the performance of the group.

2,500 FLIRTs completed

Therefore, the Szolnok facility also played an important role in another major achievement by Stadler this year: the contract for four FLIRT electric multiple units for the Italian region of Valle d’Aosta this summer marked the sale of the 2,500th multiple unit from the successful FLIRT family. FLIRT (the German acronym stands in English for “fast, light, innovative intercity and regional train”) has become one of the most popular and successful platforms for modern rail vehicles. Dr. Homolya proudly points out that Stadler's plant in Szolnok was involved in the production of more than 900 of these 2,500 vehicles. Today, the FLIRT is in service in 21 countries – from the Arctic Circle through Hungary to North Africa. The model has become an international bestseller, thanks to its innovative design, performance and quality. FLIRTs have been in operation in Hungary since 2007, with a total of 143 motorized trains carrying passengers in several regions of the country.

Stadler in Hungary

Budapest center changing corporate format

As of July 1, this year, the Budapest subsidiary operating as the main representative body of Stadler in Hungary changed its corporate format into a private company limited by shares. Stadler Trains Magyarország Zrt. is managed by a three-person board of directors in accordance with the owner's decision.

Dr. Róbert Homolya, who joined Stadler's domestic team in October of last year, holds the position of chairman of the company and is responsible for planning and implementing the company's domestic strategy. The operative work in the capacity of CEO is managed by Csaba Kiss, who has held various functions at the company group in the past 15 years, while the owner’s interests are represented by Peter Spuhler, the President of the Stadler Group. This completes the transformation program launched and announced in September 2022.

The Budapest center will continue to be responsible for the company's sales and communication activities, and in the future, it will also take on a significantly larger role in overseeing the implementation of projects in Hungary. In addition to the core activities, the strategic tasks of the new management will also include identifying and developing strategic partnership opportunities with domestic partners in order to strengthen the local added value in railway vehicle production.

A PROVIDER OF MOBILITY SOLUTIONS

Stadler has been building trains for over 80 years. The provider of mobility solutions in rail vehicle construction, service and signaling technology has its headquarters in Bussnang, eastern Switzerland. It has a workforce of around 13,500 based in various production and engineering locations as well as more than 70 service locations. The company is conscious of its social responsibility for sustainable mobility and therefore stands for innovative, sustainable and durable quality products. The product range in the field of mainline railways and city transport includes high-speed trains, intercity trains, regional and suburban trains, metros, tramways and trams. Stadler also manufactures main-line locomotives, shunting locomotives and passenger carriages. It is the world’s leading manufacturer in the rack-and-pinion rail vehicle industry.

Increasing manufacturing capacity

Stadler’s manufacturing facility in the eastern Hungarian town of Szolnok celebrated a major milestone this September as it produced the 5,000th car body. This gave a special occasion to the announcement to further expand the Szolnok factory’s rail car body manufacturing capacity. Due to the development, to be also supported by state subsidies, Stadler will increase its manufacturing capacity by almost 20% and will also become capable of producing double-deck car bodies.

As Dr. Róbert Homolya highlights to Diplomacy&Trade, the Szolnok factory has been responsible for the welding, painting and pre-assembly of aluminum car bodies for electric, diesel and hybrid single deck trains, but thanks to the current investment, the location will also be able to produce complete double-deck car bodies too for KISS type trains, which are very well known and liked in Hungary too.

The annual manufacturing capacity will increase with around a hundred car bodies to a total of 750 bodyshells per year, while the employment will grow with 150 people to 750 employees. With this, the total workforce in Hungary, including other locations, is expected to reach 900. The Hungarian state – through the Hungarian Investment Promotion Agency (HIPA) – is providing state subsidy for the development. The capacity increase reinforces Stadler’s leading position in the field of production capabilities of rolling stock manufacturers in Hungary, the Chairman adds.

Importance of the Szolnok facility

The factory in Szolnok has been operating since 2009 and the extension of the facility was opened ten years ago. Over the years, it has grown to be the largest production site of car bodies within the Stadler group, and one of the most state-of-the art factories in the CEE

Stadler is present in Hungary not only as an employer but also with its state-of-the art vehicles. MÁV Hungarian State Railways and the regional service provider GYSEV operate altogether 143 FLIRT trains, 40 KISS units and 12 Citylink tram-trains in the country. It is the FLIRT trains that give about the quarter of MÁV's total mileage, with an exceptionally high availability of 94% on average. The group’s international development is unbroken, according to the recently published half year results, order intake reached CHF 4.7 billion in the first half of 2023 on account of the persistent, extremely dynamic demand, while the order backlog rose even further to a record high of CHF 25.4 billion.

THE PRESIDENT OF THE STADLER GROUP, PETER SPUHLER (ON THE LEFT) WITH THE HUNGARIAN MINISTER FOR FOREIGN AFFAIRS AND TRADE, PÉTER SZIJJÁRTÓ

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INFORM, ENTERTAIN AND CONNECT

RINGIER HUNGARY IS PROUD TO OPERATE INDEPENDENTLY ON THE HUNGARIAN MEDIA SCENE

The Swiss publishing company Ringier entered the Hungarian market 30 years ago, in 1993, with the establishment of a subsidiary. Its presence in Hungary has since been determined by a few external and internal structural changes.

“Ringier’s Hungarian media portfolio has changed over the years and the market experienced a complete transformation but two main pillars have remained unchanged throughout. The first one, a reliable professional staff of the country's leading media specialists; the second is our mission, which is as valid today as it was in 1993. We inform, we entertain, and we connect. We empower people in making decisions in their daily lives. We reach a significant part of the Hungarian population, our publications – such as Blikk, GLAMOUR, Kiskegyed, Sportal.hu, EgészségKalauz.hu, Noizz.hu, Tvr-hét, GEO and AutoBild magazines, crosswords newspapers – are present in hundreds of thousands of households. We operate independently, and this is guaranteed not only by the local management and the sense of mission of the whole organization but also by our Swiss mother company, the Ringier Group,” Chief Executive Officer at Ringier Hungary, Tibor Kovács tells Diplomacy&Trade.

Withstanding the challenges

He adds that Ringier Hungary provides predictability, guaranteed reach and plannability in a media market that is considered complex, even at the European level. “Although we operate under difficult conditions and without a tailwind compared to some of our competitors, we can withstand the challenges and are more successful than them in many respects. Why? Because we are authentic, we do not work with showcase products set up in a few weeks but with a portfolio consciously built up over decades. We don't serve external needs. We serve our readers every day. And, of course, we develop and invest in our products unwaveringly.”

Digitalization

The key to development is complete digital transformation, which fundamentally defines the company's past years and future. New digital products are launched, internal processes are simplified and digitized for the sake of efficiency, and employees are equipped with new knowledge to understand and prevail in the complex world of Business 4.0. “We are making rapid strides towards becoming a leading digital media company in Hungary, and nothing proves this better than the fact that the share of our digital revenues has increased tenfold in recent years. But the work is far from over. I am grateful that all members of our company take their part in the change and contribute to the success. I also thank them for their perseverance and determination! Fortune favors the bold,” Tibor Kovács stresses.

A creative ecosystem

The company has a portfolio of print and digital products, but the CEO says this heterogeneity no longer appears in their operating model. “We are a content factory – a creative ecosystem. We try to provide as diverse range of content as possible. In addition to traditional written content, we are increasingly focusing on video formats and podcasts. To support this, we have built our video studio in 2022, which even competes with the professional level of TV studios.

The future is digital but that doesn't mean we turn our backs on our printed product line. One had predicted the end of the print press ten or twenty years ago, but it has not yet happened, just as linear television has not been replaced by video-on-demand and streaming platforms. If we look at the level of advertising spendings in the domestic print media segment, we can see that it has not changed substantially in the last ten years. Regardless, it is indisputable that, almost

without exception, the number of copies of all printed products is decreasing globally.” At the same time, he says they also find that “the trend of reading in print, breaking away from the digital space, is an increasingly important value, luxury in our rushing digital world. We continue to satisfy this demand. GLAMOUR Hungary is the fashion magazine with the most copies sold, dealing with social and public issues in the same way as with fashion, art, and lifestyle. Our GEO or Auto Bild brands and many bookazine publications that combine the advantages of books and magazines also represent quality and professionalism. Preserving decades of experience and knowledge accumulated in our editorial offices – this is our mission. There are no coincidences. Our traditional women’s weekly, Kiskegyed is still the product with the most copies sold at newsstands. At the same time, its newly launched online magazine, kiskegyed.hu, performs stably among the most popular

women's online sites, more than once as the market leader. Blikk is still the largest Hungarian daily newspaper, and blikk.hu is the most popular news site and the most visited domestic website.”

Increasing gender equality

In March this year, Ringier Hungary announced that, with its portfolio, it would join the international EqualVoice initiative, which aims to reduce the qualitative and quantitative asymmetry that can be observed at the global level in terms of the expert voices of men and women in the media. According to the Global Media Monitoring Project`s analysis in 2021, 82% of media appearances worldwide are about men. To make the phenomenon measurable, the Ringier Group developed a software solution based on a semantic algorithm in-house, which can analyze the quantitative and qualitative mentions of women and men in online and print media – an EqualVoice Factor indicator. “First, we appointed a cross-organizational project manager to lead the initiative. Second, we held sensitizing workshops with the participation of our editors-in-chief. Third, we put the artificial intelligence-based software into operation on four of our online sites. We appointed team leads for each editorial office, who prepared a strategy for increasing gender equality tailored to the specific brand and target group. We have made a contact list of one hundred domestic female experts representing various disciplines and fields of expertise. Any of our editors and journalists can contact them if they need a statement or an interviewee on a given topic,” Tibor Kovács highlights some of the steps they made to achieve real change.

“The next milestone of the project, planned for the fall of 2023, will be to start the EqualVoice measurement of our video content. In the case of blikk.hu, we have already achieved a 10% improvement in gender equality and the base also performed well above the international average,” he adds.

Foundations for another 30 years

Ringier Hungary has made significant investments like the launch of new digital portals on sports and women's issues or that its own video studio already mentioned. “While others responded to the economic challenges of recent years with downsizing and product discontinuation, we made significant investments, launched new products and, in the case of several of our organizational units, even increased the number of employees. All of it was made possible by our conscious management and thorough strategic planning, as well as the commitment of our owner, Ringier AG, to the Hungarian market,” the CEO points out.

In conclusion, he notes that they are facing exciting years as many processes running in the background come into effect. “It will further increase our competitiveness and resilience. On our 30th anniversary, we spend this year in the spirit of celebration, but at the same time, we do not forget that we are currently laying the foundations on which we can build 30 more years of success.”

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of the current improvements will increase the capacity of the plant by more than 100,000 tons per year. This will have a positive impact not only on employment but also on the region as a whole through indirect job creation.

Caring for the environment

In recent years, Nestlé's name has often been in the news for sustainability projects. The company will halve its carbon emissions by 2030 to achieve its net zero emissions commitment by 2050. At Nestlé, ‘net zero’ means that the company will minimize greenhouse gas emissions along the value chain from raw material production to consumption. In order to reduce greenhouse gas emissions from agriculture, Nestlé is working with its suppliers to transform food production by replacing intensive farming methods with regenerative farming practices that benefit nature. The company is also paying particular attention to preserving soil health and sourcing cocoa and coffee from responsible sources.

CONTINUOUS BUT SUSTAINABLE DEVELOPMENT

The Swiss multinational food and drink processing conglomerate corporation Nestlé has been present in the world for more than 150 years – and for more than three decades in Hungary.

The secret of continuous development at Nestlé is that innovative, forwardlooking food developments have been constant features throughout the company's history. The company was founded to provide a solution to one of the most pressing problems of the time: Nestlé's founder, the German-born pharmacist Henri Nestlé, launched the ‘farine lactée’ (milk flour) in Vevey, Switzerland, in 1867. He developed the product, made from cow's milk, wheat flour and sugar, to feed babies who could not access breast milk, thus reducing the high infant mortality rate of the time. The fact that innovation is still at the heart of Nestlé's operations today is demonstrated by its leadership in the development of plant-based products. Garden Gourmet meat alternatives, for example, fit perfectly into a health-conscious, balanced diet and support the company’s fight for sustainable food systems.

Three factories in Hungary

The Swiss company is operating in Hungary with over 2,500 employees in three factories (in Szerencs, Diósgyőr and Bük) and at its headquarters in Budapest to create a better quality of life and a healthier future.

The factory in Szerencs, which is celebrating its 100th anniversary this year, became, in the last

30 years, Nestlé's regional coffee and cocoa drink powder production and filling plant in Central Europe, where nearly 40,000 tons of coffee and cocoa powder are produced annually and exported to 30 countries. The Diósgyőr factory, which celebrated its 60th anniversary last year, is Nestlé's only factory in the world specializing exclusively in the production of hollow figures, from where the company exports its products to more than 20 countries. The Group's Central and Eastern European pet food production hub, the PURINA factory in Bük, celebrates its 25th anniversary this year, with products exported to more than 50 countries worldwide.

In Hungary, Nestlé Hungária distributes such inescapable brands as Purina, Nestlé Beba, Maggi, Nesquik, Nescafé, Nescafé Dolce Gusto, Ricoré, Nespresso, Starbucks at Home, Boci, Balaton, After Eight, Smarties, KitKat, L'Atelier, Nestlé breakfast cereals and Garden Gourmet. Nestlé Health Science provides nutritional therapy solutions for specific nutritional needs, while Nestlé Professional offers high quality gastronomy and beverage solutions for the HoReCa sector and public institutions.

It was announced in January 2023 that an ultra-modern automated warehouse and a wet pet food production plant will be built in Bük as part of an investment of nearly HUF 140 billion.

The investment, involving the construction of an ultra-modern, self-service, computer-controlled storage and retrieval system (ASRS) warehouse and a new wet pet food plant, is progressing according to plan.

In 2022, Nestlé's PURINA factory in Bük produced 215,000 tons of product. The planned deliveries this year will increase the production volume compared to the 2022 results, and the completion

As part of the Net Zero plan, Nestlé has re-thought its manufacturing processes: by 2025, the company plans to have all 800 of its manufacturing units around the world using electricity from 100% renewable sources. The good news is that the company has only been using electricity from renewable sources in all three of its factories in Hungary since 2017. At Nestlé, the goal is to ensure that none of its packaging goes to landfill or – worse – into the environment, but to keep all its packaging materials in circulation. The company is developing its packaging to have a lower environmental impact, including using as much recycled content as possible, eliminating some difficult or non-recyclable materials by simplifying its packaging, using paper-based packaging and reducing the amount of plastic used. However, it is not only the packaging materials that Nestlé is constantly improving to create a waste-free future and circularity. The company supports the development of waste management infrastructure, appropriate separate collection, sorting and recycling capacities and solutions in the country, and emphasis is placed on improving the related knowledge of consumers and staff.

And that is not all. Nespresso operates a capsule collection system in 70 countries worldwide, which allows the company to fully recycle both aluminum and coffee grounds in partnership with consumers. In Hungary, every consumer has access to some form of recycling, which is also available for hotels, restaurants and office buildings. And recycling is working: by 2023, the domestic capsule recycling rate will exceed 50%. This means that one in two capsules will remain in circulation.

Feed your Mind

Nestlé Hungária has been promoting a balanced diet through educational initiatives for almost 20 years. In 2018, ‘Nestlé for Healthier Kids’ was launched, focusing all Nestlé's efforts on creating a healthier future for children. The company places strong emphasis on local value creation initiatives to give back to the communities where it operates. For example, this year, Bük, the town that is home to the 25-year-old factory, was the first to launch the ‘Etesd az Eszed’ [‘Feed your Mind’] health education program for schoolchildren, which has since expanded nationally. It is just one of the activities supporting children in the area around the factory.

INNOVATION HAS ALWAYS BEEN AT THE HEART OF NESTLÉ'S OPERATIONS

AWARDING BUSINESS LEADERS FOR SUSTAINABILITY

CANDIDATES EXPECTED TO GO WELL BEYOND THE SCOPE OF THEIR JOB TO SOLVE A SUSTAINABILITY PROBLEM

Founded in 2007, the Business Council for Sustainable Development in Hungary (BCSDH) announces a major sustainability award every year. This year, the ‘For a Sustainable Future Award’ aims to recognize outstanding corporate and leadership performance in achieving the Sustainable Development Goals (SDGs) and systemic change. The Managing Director of the organization (that is part of the World Business Council for Sustainable Development – WBCSD), Irén Márta highlights to Diplomacy&Trade why they have chosen this particular theme for the 2023 award, what platforms on key sustainability issues BCSDH's professional activities are built around and how they assist companies to reach their sustainability targets.

She explains that the overuse of natural resources, climate change and the dramatic consequences of biodiversity loss are serious economic, environmental and social problems. There is a great need today for leaders and companies who understand the systemic interconnections, get to the root of the problems and lead the way in transforming them to become more sustainable. That is why the achievement of sustainable development goals are in the focus of this year’s award.

Looking for innovative, effective solutions

As far as the sub-categories of the award and ‘expectations’ for the future awardees are concerned, the Managing Director points out that “in addition to recommending leaders who are spearheading change as well as women leaders, this year, for the first time, we are inviting applications from companies that have achieved the greatest corporate transformation. In the field of business solutions, we are definitely expecting candidates who have proved themselves with achievements in the field of the ‘Circular economy’, ‘Climate protection and adaptation’ and ‘Conservation and restoration of biodiversity’. We are looking for innovative and effective solutions, ideally implemented in partnership, with the potential for scalability and applicability to others. Candidates in the ‘Change leaders’ and ‘Women leaders’ categories are expected to go well beyond the scope of their job to solve a sustainability problem or transform an entire industry.”

Prominent jury

The winners of main and sub-categories of the ‘For a Sustainable Future Award’ will be selected by a jury of prominent members. They include the Secretary of the National Council for Sustainable Development, Dr. Gábor Bartus; media specialist Szilvia Krizsó; BCSDH’s Honorary President, István Salgó; Professor at the Central European University, Dr. Diána Ürge-Vorsatz, who is also the Vice Chair of the Intergovernmental Panel on Climate Change (IPCC) Working Group III (a Nobel Peace Prize laureate); and Irén Márta, herself. The latter highlights that “in the selection process, it is very important that the objectives and results of the program are in line with the company's strategy, the UN Sustainable Development Goals and the national Sustainable Development Strategy. The results should be measurable and well supported. It is an advantage if it is innovative and implemented in partnership.”

Sustainability platforms

BCSDH's professional activities are built around platforms on key sustainability issues (e.g. Circular Economy Platform). The Managing Director believes that the way to solve more complex problems is through the cooperation of different stakeholders. “This is also the case for increasing the circularity of the Hungarian economy. In this context, we have tried to involve a number of organizations, companies, research

institutes and regulators in the joint work. We have also established the Net Zero Advisory Board with a focus on climate adaptation and climate protection, which this year we have complemented with biodiversity protection and restoration.”

Corporate Sustainability Reporting Directive

The Business Council for Sustainable Development in Hungary runs various working groups on environmental, social and governance (ESG), helping companies to assess sustainability.

Irén Márta stresses the importance of the European Union’s Corporate Sustainability Reporting Directive (CSRD) is a law that prescribes requirements for organizations to report sustainability disclosures across several topics pertaining to environmental and social issues, and improve non-financial reporting. She notes that “this EU regulation will directly affect at least a thousand domestic companies in Hungary from the beginning of next year, reaching domestic SMEs through their supply chains in no time. We are trying to prepare BCSDH’s 135 member companies for this in the first instance through workshops and training. In addition to learning about the relevant regulations, we will also focus on embedding into strategy, materiality analysis, metrics, integration into company operations, credibility, automation of data collection and corporate best practices. In addition to the topics mentioned above (climate

change, biodiversity), we will also address the areas of social impact, awareness raising and credible communication. I am very proud that well over 300 leaders have already graduated from our 'Leaders of the Future' talent program.”

Busy for the rest of the year

The BCSDH calendar is full of conferences and other events. As regards the highlights for the rest of the year, the Managing Director emphasizes that “a recap of our annual professional work and the presentation of the Sustainable Future Awards will take place on October 12 at the BCSDH Business Lunch where the main speaker of the event will be Dr. György Tilesch, an expert in artificial intelligence (A.I.), senior executive and consultant, working primarily in the transatlantic space across sectors and industries, specializing in AI Strategy, Ethics, Impact, Policy, and Governance. He will analyze the links between artificial intelligence and sustainability. On November 8, we will celebrate the 10th anniversary of our ‘Future Leaders’ talent program with alumni and mentors as well as with Rodney Irwin, COO of the WBCSD and also the head of the World Council of Leaders program, as our guest of honor. On November 23, the ‘Circular Economy Summit’ will bring together a range of international experts and companies to share their experiences and best practices,” she concludes.

witty leaks

L E A K S

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

A PICTORIAL TOUR OF HUNGARY

AUSTRIAN AMBASSADOR TRAVELS EXTENSIVELY IN HUNGARY WITH HIS CAMERA IN HAND

BY

In our free time, my wife and I take the opportunity to get to know different regions of Hungary. Both the exceptional landscapes we have been discovering since we arrived in Hungary and the city tours offer a special opportunity to take pictures. As photography is my other hobby, I try not to miss any opportunity for a good photo shoot.

Appreciating people’s willingness

During summer, we like to visit Lake Balaton where we took a long and inspiring biking tour. On one of these occasions, we went for a bike ride along the southern shore of the lake. Suddenly, my wife discovered that she had little air in her front tyre. When she asked for a pump in a restaurant, one of the guests heard this and immediately showed spontaneous willingness to help. He fetched his pump and pumped up my wife's bike again, for which we thanked him warmly. It was and is a pleasure to experience the great willingness of Hungarians to help, which we were also able to experience in many other contexts.

Hiking near the capital

My wife and I are enthusiastic mountain hikers. Despite being mainly flat, Hungary boasts a wide variety of mountain hikes, which we enjoy in all seasons. The weather never discourages us from discovering the beauty of nature. It is therefore

a wonderful experience for us that in Budapest, there are hills like Prédikálószék and Pilis, practically right on our doorstep in a northwesterly direction near the Danube Bend. We have climbed both of these many times. The first, Prédikálószék in particular has steep slopes

and is comparable to mountains in my home country, Austria. A hike on the Vörös-kő, combined with the beauty of Szentendre, represents an easily accessible destination at the weekend and make it possible to let your mind wander.

Cultural beauty

But we were also very impressed by the historical and cultural beauty of several cities we visited, including Győr, Esztergom, Visegrád, Szeged, Pécs and, of course, Veszprém, which

is currently the European Capital of Culture. My wife and I enjoyed an interesting visit to Győr where we had the chance to admire the old town and its cultural and historic heritage.

Eastern Hungary

We have also been discovering places to see in the northeast and the southeast. Together with my wife and my daughter, we visited the palace of Gödöllő where we had a marvellous tour through the palace. We had a particularly beautiful experience in the world-renowned Tokaj wine region. We got to see – as part of a cycling tour – the countryside surrounding the town of Tokaj with its numerous vineyards. In the southeast, we had a wonderful visit to the city of Szeged, a place of centuries-old university traditions and historic buildings. Let me end this pictorial tour of Hungary with a photo of the mayor’s office displaying the Austrian flag on the occasion that I had a meeting with the mayor there.

DR. ALEXANDER GRUBMAYR, AMBASSADOR OF AUSTRIA

AMBASSADOR AND WIFE IN GYŐR

VISEGRÁD AS SEEN FROM PRÉDIKÁLÓSZÉK

LAKE BALATON

SZEGED MAYOR’S OFFICE DISPLAYING THE AUSTRIAN FLAG

CULTURAL DOLCE VITA

SEPTEMBER 22-27, 2023, MÜPA PALACE OF ARTS, BUDAPEST

Müpa and the Budapest Festival Orchestra launched a joint thematic festival in 2013 that focuses on Rome, the Eternal City, or Italian culture in a broader sense this year. The event, which runs from September 22 to 27, will once again feature classical and world music, literary evenings and unmissable films. No question: all roads lead to the Bridges of Europe!

The event will open with a concert by Antonio Castrignanò, one of the most prominent exponents of Salento music, who always brilliantly combines the traditional with the new. Also performing at the festival will be the Italian jazz star Roberta Gambarini, known for her distinctive, caressing alto voice. Co-organizer of the festival, the Budapest Festival Orchestra conducted by Iván Fischer, is preparing an unusual collaboration as part of the series of events. In the first part, Liszt's Piano Concerto No. 2 in A major and his best-known Hungarian Rhapsody, while in the second, one of Bartók's most beloved works, The Miraculous Mandarin, will be co-performed by the Éva Duda Ensemble. In addition to the legendary Italian cinema, Hollywood productions starring the city on seven hills will offer unforgettable moments: a range of Rome-related films will be screened or re-watched (or re-watched for the umpteenth time) by all those who want to see their favorites on screen, from Fellini to Woody Allen, from Sorrentino to Wyler. mupa hu

COLDPLAY: MUSIC OF

JUNE 16, 18 AND 19, 2024, PUSKÁS ARENA, BUDAPEST

Following a sold-out stadium tour in 2023, Coldplay have announced a third round of European dates for JuneJuly-August 2024, including their first shows in Greece, Romania and Finland, as well as their first show in Rome since 2003 and their first in Budapest since 2008.

Since the first show of the Music Of The Spheres world tour in March 2022, Coldplay have sold more than 7.5 million tickets – more than any tour in the last two years. The show has received rave reviews from fans and critics alike, and has garnered accolades such as Favorite Touring Artist and Tour of the Year.

Recently, the Massachusetts Institute of Technology Institute released a report revealing that Coldplay's current tour has so far produced 47% less CO₂ emissions than their previous stadium tour in 2016/17 (on a per-concert basis) and that five million trees have been planted around the world (one for every audience member). Coldplay have also confirmed that they will be releasing a limited number of Infinity tickets for their concerts at a later date. Infinity tickets will be available for all Coldplay shows to make the Music Of The Spheres tour accessible to all fans. livenation.hu

50 CENT: THE FINAL LAP TOUR 2023

OCTOBER 18, 2023, BUDAPEST ARENA

Due to fan demand, Curtis "50 cent" Jackson adds further European dates to global "The final lap tour 2023," including a performance in the European capital.

In May, EMMY® and GRAMMY® award-winning multi hyphenate, Curtis "50 Cent" Jackson, announced The Final Lap Tour, a global tour in celebration of the 20th Anniversary of his game-changing debut album, Get Rich or Die Tryin’. Thanks to overwhelming fan demand, with close to 700,000 tickets sold, the rapper is announcing more dates across Europe, adding stops in new markets such as Stavanger, Norway and Budapest, Hungary plus a second date in previously announced city Birmingham, UK. The Final Lap Tour will feature the rap icon performing dozens of fan-favorite and chart-topping hits along with select tracks that have not been performed live in decades. Plus, the tour will feature support from special guest and longtime friend, Busta Rhymes, across all American and European dates. The Final Lap tour kicked off on July 21 in Salt Lake City, the American leg ends in Toronto in September, and already continues in Europe a few days later. One of the most anticipated tours of the year will stop at Budapest Arena on October 18. livenation.hu

CIRQUE DU SOLEIL - OVO

FEBRUARY 8-9-10-11, 2024, MVM DOME, BUDAPEST

Cirque du Soleil is thrilled to announce its return to Budapest with its newly revisited high-energy and high-acrobatic production OVO, which promises to be a colorful and energetic show for people of all ages.

An exciting Cirque du Soleil experience, OVO is a colorful intrusion into a new day in the life of insects; a non-stop riot of energy and movement. Through show-stopping acrobatics highlighting the unique personalities and abilities of selected insect species, OVO explores the beauty of biodiversity in all its contrasts and vibrancy. For its relaunch in 2022, three new acts and new characters were incorporated to the joyful OVO colony to delight audiences of all ages.

From mighty crickets bouncing off trampolines to a hypnotic spider contorting inside her web, OVO exudes extraordinary showmanship to tickle the imagination. Funny and chaotic, yet adorable and wonderful, OVO charms our inner child with its sweet exuberance. Comprised of 100 people from 25 different countries, including 52 artists, OVO (‘egg’ in Portuguese) brings to the stage high-level acrobatic acts redefining the limits of the human body. Since its opening in Montreal in 2009, OVO has thrilled more than seven million people in over 160 cities and close to 30 different countries. livenation.hu

THE SPHERES

PRESENTING THE PAST AND PRESENT OF MONEY

THE MONEY MUSEUM IN BUDAPEST HAS BEEN A SUCCESS EVER SINCE ITS OPENING LAST YEAR

The Hungarian Money Museum and Visitor Center, established by the Central Bank of Hungary (MNB), opened its gates in the newly renovated Postapalota (‘Postal Palace’) in the spring of 2022. The museum has one of the most unique educational exhibition areas in Europe, exploring the five basic functions of money – storage of value, circulation, payment, world money and treasure – in an entertaining way.

The interactive exhibition on the history of money and the operation and future of money management is equipped with state-of-the-art museum educational and digital technologies. The 2,400-square-meter exhibition features more than 200 displays and projectors, 54 unique installations, hundreds of square meters of physical graphics and 133 short films to introduce the world of money to all age groups, with a special focus on 12-18-year-olds. Visitors can learn about the reasons for – and forms of – money, try out what it would be like if there was no money, and see the most precious items in the MNB's coin collection, from the Lancea regis denarius of the country’s first king, St. Stephen, to paper money.

A stock exchange simulator, a world money wall and a machine simulating online shopping give people insight into the world of money and the world financial market. The exhibition also shows what the money of the future could look like, and then, in addition to the treasure-building function, it presents intellectual assets, great Hungarian innovations and achievements as well. The institution also functions as an experience and education center, as the MNB's tasks include developing financial culture and financial awareness.

Promoting financial culture

Speaking of the objectives the management of the Central Bank of Hungary had in mind when founding the institution, the Managing Director of the Money Museum, Eszter Hergár explains to Diplomacy&Trade that the Central Bank’s mission is to promote financial culture, financial education and financial awareness. “By setting up the museum, the central bank wanted to make financial literacy accessible to children and adults alike. It is important, however, that this is not

done in a textbook manner, but in an interactive and experiential way. To help us achieve this, visitors can try out 11 types of playful activities on a total of 118 interactive surfaces in the exhibition halls. The most popular attractions include printing banknotes with your own face, printing on gold bullions, opening a safe, playing the stock exchange and installing a banknote post.”

Of European standard

There are many money museums around the world, from Lisbon to Chicago to Manila. Eszter Hergár points out that “before we started to design the money museum, we visited the world's leading money museums and, of course, we learned about their good practices and interesting examples. Today, however, I am happy to say that we are now considered a model institution. This July, for example, a delegation from the Croatian National Bank visited our Money Museum. Their visit was aimed at gaining ideas and experience for their own visitor center of a similar theme. The situation is similar with the Bank of Italy. It is an honor for us to have them visit the Money Museum in Budapest, because it shows that our institution also stands its ground on a European level.”

A unique showcase

The former Postal Palace, which is now the home of the Money Museum, had undergone a complete renovation for several years before the Money Museum was created. As to what this more than 2,400 square meters of floor space comprises, Eszter Hergár highlights that the permanent exhibition ‘The path of money’, which is free to visit after booking, is organized around the five functions of money. “The Money Museum is not just a spectacular display of old coins that showcase the history of money, the experience is much more comprehensive and multi-faceted. Visitors are taken on a carefully constructed journey of discovery around the world of money, accompanied by interactive games and spectacular visual displays. The different tools, platforms and events are all built around a common message. The Money Museum will thus be both a center for public education on finance in the country and a unique showcase for the international museum world.”

Financial awareness

One of the objectives at the Money Museum is to promote financial awareness. As the Managing Director puts it, the mission of the Money Museum is to break down taboos about money and the way the economy works. “We have created one of Europe's most innovative central bank experience spaces where visitors can learn about domestic and international economic processes through interactive, 21st century tools that enhance the museum experience. This way, they themselves get involved – this is perhaps the best way to stimulate interest.

Educating youngsters

The Money Museum is quite popular with one of its target groups: students/young people. Regarding the kind of educational programs offered to reach out to these youngsters, the institution’s museum education sessions are available from pre-school age with the aim to introduce children to the world of money in a playful way. “Our museum education courses, games and educational apps are available for all ages, and our financial awareness programs and national quizzes are aimed at school-age children,” Eszter Hergár adds.

Positive feedback

The Money Museum has been welcoming visitors for more than a year and feedback received by the institution has been quite positive. “The best feedback is that many people are curious about us: the museum has registered its 100,000th visitor in the 15th month after opening, and we are constantly full. The opening of the Money Museum's Panorama Terrace, in the second half of July this year, is proof that interest has not waned, with 10,000 visitors in the first month of operation. On our one-year anniversary – or even at the Night of Museums in late June – the line stretched as far as the nearby Széll Kálmán Square, so many people wanted to get into the museum,” she recalls.

The Money Museum has already received professional recognition as well. “Last year, we were named one of the best museums in Hungary, while this year, Best of Budapest & Hungary recognized the institution as one of the best community spaces. In May, the Center for Museum Education and Methodology presented the Money Museum with a Community Museum Award for actively involving local residents and civil communities in its work, and for listening to their opinions when designing its museum education sessions. All this confirms that we are on the right track,” the Managing Director concludes.

PRESENTING INTERNATIONAL MUSIC STARS IN HUNGARY

EXPERIENCED PROMOTER ON THE CHALLENGES OF THE CONCERT MARKET IN THIS COUNTRY

Concerts by the Italian trio Il Volo or the musical theater performance ‘PIAF! The Show’ are just two of the events coming up in the Hungarian capital later this year and next year organized and promoted by the Budapest based agency Koncertpromo. hu. Its founder and managing director Roland Horváth spoke to Diplomacy&Trade about how his company weathered the health and economic challenges faced by the industry as well as how he sees the near future of the concert promotion market.

The new coronavirus epidemic had a very serious impact on the operations of concert promoters. The entire industry virtually came to a standstill in the spring of 2020. As for the company’s strategy to get through these tough times, Roland Horváth highlights that this period was extremely testing at Koncertpromo.hu. “We had to reschedule two major events, ‘Il Divo’ and ‘The Illusionists’, several times, while we were in constant consultation with ticket buyers and had to develop new ways of ticketing. We were forced to create a completely new system, such as making online ticket sales exclusive, so that we could respond quickly and efficiently to any problems and notify ticket buyers. The market is slowly starting to recover and the bigger names are touring again, thus, the market is quite saturated. We expect to see more smaller names touring next year. It has not been an easy period, but I feel that we have now left the COVID-19 times behind us.”

Announcing new events

As he mentioned, nowadays, promoters are announcing events for the coming months with stars of bigger or smaller fame and they need to come up with tailor-made strategies to attract audiences. As for Koncertpromo.hu, the manager pointed out that selecting performers and international names for people in the Hungarian capital is an exciting task. “We are currently selling two Il Volo concerts (one of them to be held in Prague), one Piaf! The Show at the Erkel Theater and a show for Filipino singer Marcelito Pomoy.”

Success in the crossover genre

As to what types of concerts and shows are the most popular, Roland Horváth admitted it was hard to say “because we don't really keep track of the competition. However, I think the big international names, especially in the pop-rock line, are the most popular. We have had huge success in the crossover genre with sold-out shows for Il Divo, 2CELLOS, HAUSER, Vanessa Mae,

David Garrett, The Piano

Guys and others.”

Not passing on all expenses

The costs of organization, travel and transport have increased significantly and managing these challenges has not been easy at Koncertpromo.hu, either. “Unfortunately, concert organizing in Hungary is facing several problems. VAT is 27%, the highest in the whole European Union. We have already lost many international stars because of the high VAT, because they are interested in the net revenue, and we are obliged to charge the high VAT rate to the ticket buyers. On top of that, we have to pay music royalties, ticketing commission and business tax, and we often have to share the remaining profit with the management of the international act. Concert ancillary costs have increased by 25-30%... We cannot pass these on to ticket buyers in full, so, we prefer to make do with less profit to avoid having to significantly increase the price,” the company’s manager stressed.

A budget for the Hungarian market

Another problem arising in this respect is the price sensitivity of the Hungarian market. “Frankly speaking, we simply cannot do much about it,” Roland Horváth said. “Either the numbers work out in the Excel spreadsheet and there is a way to organize a concert with an acceptable risk to make a profit, or it is simply not worth the investment. We always try to present the star's management with a budget that is acceptable to them, and that sets the ticket prices,” he added.

Seeing the market from both sides

With the new coronavirus epidemic over, Roland Horváth, who has an experience of over a decade in artist management, is optimistic about the near future of the concert promotions market – and not just in one capacity. “I work as a promoter, manager and producer, so, I see the market from both sides. I also work as a booking agent, so, I sell international shows to different promoters all over the world. This is one of the most exciting parts of my job, as I often meet people I would never think I would meet, until the booking is actually realized. Thus, I have had the pleasure of meeting and having dinner with the likes of Matthew McConaughey, Hans Zimmer, will.i.am, Andrea Bocelli and many other stars of similar caliber,” he concluded.

80 LEVELS OF STATE-OF-THE ART TECHNOLOGY AND COMFORT

ALTOGETHER 40 DOUBLE-DECK TRAINS FROM STADLER, ON THE BUSIEST RAILWAY LINES OF HUNGARY