Diplomacy&Trade 2023-01

SEE ANALYSIS ON page 08

MANY LOSERS AND FEW WINNERS

A LOOK BACK AT THE MAIN DEVELOPMENTS OF THE YEAR 2022

Austria

Austria is Hungary's second most important trading partner in terms of trade volume and the third largest investor in Hungary. As the Austrian Ambassador to Hungary, Alexander Grubmayr highlights to Diplomacy&Trade, bilateral political relations mainly focus on European and cross-border cooperation. He also talks about neutrality as a fundamental element in Austria's foreign policy ever since it was declared in 1955.

see articles on pages 10-21

Ricse – Hollywood – Ricse

Those familiar with the world of movies are aware that Paramount Pictures is one of the ‘Big Six’ studios in US filmmaking. However, what most people don’t know is that Paramount Pictures, one of the world’s first film studios, would not exist today without the revolutionary ideas of its Hungarian founder, Adolph Zukor who was born in Ricse in northeast Hungary 150 years ago. see article on page 24

letter from the publisher

Our international analyst did not have a difficult task when picking the development that had the greatest impact on the world last year. “The year 2022 was dominated by the Russo-Ukrainian war initiated by Russian aggression.” This naked violence of international law, as he rightly put it, has resulted in many losers – primarily the people suffering in Ukraine.

Austria, the second largest trading partner of and the third largest investor in Hungary is in focus in this issue. The Focus features an interview with Ambassador Alexander Grubmayr on the various aspects of bilateral relations in the current challenging international environment.

We also cover the activities of ADVANTAGE AUSTRIA, the country's largest provider of foreign trade services, the Austrian Cultural Forum and other organizations. Of course, we also feature several Austrian companies active in Hungary.

Hungary’s economic competitiveness to a very large extent hinges on the government’s ability to ensure energy security for the country, according to the German Chamber of Commerce. Our business page reports on the Year Opening Evening of the Chamber and some of the statements made there by the President of the Chamber and the country's new energy minister.

WittyLeaks is authored by the Israeli Ambassador who confesses that “diplomacy to me is not only my work but also the way of life, my hobby and passion.” Part of that is taking trips in the host country and he tells our readers about the famous places he has visited over the three years he has been in Hungary.

There have been numerous figures of Hungarian descent contributing to the success of Hollywood. Our culture page takes you to the northeastern Hungarian village of Ricse, where one of them, Adolph Zukor, the founder of Paramount Pictures, one of the world’s first film studios, was remembered on the 150th anniversary of his birth.

Chefs representing Hungary have achieved a historic success by making it to the podium of the worId’s most prestigious culinary competition, the Bocuse d’Or. In the gastronomy section, you read about the details, including the menu they presented to the international jury.

On the wine page, you can read about new vintage of the northeastern Hungarian Disznókő Estate’s top aszú debuting in Paris and Budapest.

I think it’s safe to say that we are all looking forward to the end of winter where we can cut back on the consumption of gas heating and the shocking gas prices. Inflation is still running here at the highest rate in Europe, 25% according to Eurostat for December 2022, with no reasonable explanation. What’s next???

Peter Freed PUBLISHER

cont en ts

23 WITTYLEAKS by the Ambassador of Israel

24 CULTURE

Adolph Zukor celebrated in Ricse

AUSTRIA; SPAR Magyarország; Österreichisches Kulturforum; Rail Cargo Hungaria; Porsche Hungaria ITC; Österreich Werbung; Napelem Szerelő Kft.

22 BUSINESS

German-Hungarian Chamber of Industry and Commerce

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

26 WINE

Disznókő Estate in Tokaj

27 GASTRONOMY

Hungary wins bronze at Bocuse d’Or 2023

PUBLISHER: Peter Freed PHOTO EDITOR: Dávid Harangozó

SALES & MARKETING DIRECTOR: Tamás Varga ADMINISTRATION: Blanka Szalontai

CONTRIBUTORS: Edith Balázs, Sándor Laczkó, Tamás Magyarics, Yacov-David Hadas Handelsman, Gabriella Bokor

PHOTO CONTRIBUTORS: depositphotos.com (cover), Courtesy of Balázs Bokor (cover), World Chess Hall of Fame, Budapest Airport/Róbert Baranyi, depositphotos.com, PKN ORLEN, BMW Group, Khell Food, Ipoteka Bank, Hydro, David Payr, SPAR, Christian Autengruber/Austrian Cultural Forum, Grossglockner Bergbahnen Touristik GmbH/ Peter Maier, Österreich Werbung/thecreatingclick.com, Solar Panel Installer Ltd., András Mayer, Sofia Wittert, Róbert László Bácsi, Live Nation, Anton Corbijn, Courtesy of Balázs Bokor, Furmint Photo, Disznókő Estate, White Mirror, Julien Bouvier Studio, Zoltán Balogh/MTI

HUNGARIAN FOCUS - COMING SOON

In line with the regular country focus compilations on mainly economic relations between Hungary and other states in connection with the national day of the given country, Diplomacy&Trade will present – for the third time – a Hungarian Focus this spring on the occasion of the national day of March 15 (that commemorates the 1848 Hungarian revolution). In recent years, the penetration of Hungarian-owned companies in Hungary has been increasing and they have a more and more important role in export revenues. As a result of the Russian war in Ukraine, businesses are facing many challenges and not only well-known brands but also emerging family businesses have a big role to play in keeping the economy running – we plan to showcase these economic actors in the Hungarian Focus.

Event guide to the Hungarian capital

German Chamber 30th anniversary page

From Balaton Wine Weeks to Kalocsa Peppers page 23

EU COUNCIL SUSPENDS EUR 6.3 BILLION TO HUNGARY

The Committee of Permanent Representatives to the EU has found the required qualified majority to impose measures for the protection of the Union budget against the consequences of breaches of the principles of the rule of law in Hungary, concerning public procurement, the effectiveness of prosecutorial action and the fight against corruption in the country. The budgetary impact of this suspension amounts to approximately EUR 6.3 billion in budgetary commitments, the Council of the European Union announced in the middle of December.

In the course of the procedure, Hungary has committed to adopt a number of remedial measures considered by the Commission as capable to address the concerns raised, if taken together and correctly and effectively implemented. Given the remedial measures so far adopted by Hungary are affected by significant weaknesses which seriously compromise their adequacy to address the breaches of the principles of the rule of law identified by the Commission in its proposal, the Council considers that the ensuing risk for the budget of the Union remains high. However, in light of the number and significance of remedial measures that have been satisfactorily implemented by Hungary and given the degree of cooperation it would be a “reasonable approximation” to establish the remaining risk for the budget at 55% of the commitments of the programs concerned, according to a statement by the European Council.

on the record

government would immediately scrap the HUF 480 per liter price, the Minister heading the Prime Minister's Office, Gergely Gulyás announced at an extraordinary press briefing.

Mol CEO Zsolt Hernádi said at the press briefing that “the last few days have seen an unprecedented crisis in the country, such queues in front of wells were last seen in this country in the 1970s and 1980s. In the past few days, there have been panic attacks, empty petrol stations, in one word: chaos,” he said. There was no petrol at the pumps, there was a total drain at many gas stations – press reports suggested that every fourth station was out of fuel.

LANGUAGE EXAM NO LONGER REQUIRED FOR HIGHER EDUCATION DEGREE

UPCOMING NATIONAL DAYS

February 6 New Zealand National Day

15 Serbia National Day

16 Lithuania National Day

23 Japan National Day

24 Estonia National Day

25 Kuwait National Day

28 Egypt Independence Day

March 1 Bosnia&Hercegovina National Day

3 Bulgaria National Day

6 Ghana Independence Day

15 Hungary National Day

17 Ireland Independence Day

20 Tunisia Independence Day

21 Namibia Independence Day

25 Greece National Day

He also reported that annual drought damage averaged around HUF 400 billion, major flood damage averaged around 50 billion forints a year, and inland flood damage averaged between 20-30 billion forints a year. He added that in 2021, ‘another leg’ of the protection was built, namely drought damage management, which had to be applied in 2022, as additional pumping had to be ordered in many places to meet water needs.

The director of the Central Tisza Region Water Management Directorate (Kötivizig), Attila Lovas, stressed that "about 48 kilometers of sections are being upgraded, some of which will improve the strength and load-bearing capacity of the flood protection embankment.”

JUDIT POLGÁR INDUCTED INTO THE WORLD CHESS HALL OF FAME

The governing majority of Hungarian Parliament adopted a law on the reform of higher education requirements that, among other things, abolished the language exam requirement for issuing university degrees. According to the new regulation, universities will be able to decide for themselves what language skills they expect their students to have, and the state will also entrust the organization of the related training to the institutions. This means that the foreign language requirements may vary from university to university. Universities will now also have to ensure that they "provide the necessary foreign language teaching and appropriate assessment of foreign language skills for the exercise of the qualification." The new rules will be introduced in a progressive system, but students who have not obtained a diploma due to the lack of a language exam will also be exempted from this requirement.

INCREASING FLOOD SAFETY IN THE TISZA VALLEY

A project for the development of water infrastructure in the Tisza Valley has started with HUF 5.6 billion nonrefundable funding from the European Union and the Hungarian state; the project, expected to be completed by the end of November 2023, will contribute to increasing flood safety in the region.

HUNGARIAN GOVERNMENT SCRAPS CAPPED FUEL PRICES

Following long lines at Hungarian gas stations due to the shortage of supply of capped priced fuel in the past few days, the Hungarian government announced late evening on December 6 that the capped prices introduced in November 2021 are scrapped as of 23.00 hours local time.

The Hungarian oil and gas company Mol, the only company supplying Hungarian gas stations since the introduction of the capped prices as the artificially subdued prices would result in financial loss for foreign companies, informed the government that it cannot supply the country with fuel any more. Thus, the

István Láng, Director-General of the National Water Management Directorate (OVF), said at the announcement that records had been broken in flood levels and drought in the last twenty to twenty-five years. It is estimated that the drought damage in 2022 to the national economy was between HUF 1,300 billion and 1,600 billion, “but water needs have been met,” he noted.

Hungary’s Judit Polgár, the best female chess player of all time, has been inducted into the World Chess Hall of Fame. The ceremony took place during the 6th Annual Strategy Across the Board Gala hosted by the Saint Louis Chess Club and the World Chess Hall of Fame this past December in Saint Louis, Missouri in the United States.

According to the World Chess Hall of Fame (WCHOF), Judit Polgár is universally recognized as the strongest female player of all time. She was first rated in the top 100 players in the world at age 12 and three years later, broke Bobby Fischer’s record as the youngest grandmaster.

She is the only woman to have ever reached the candidates stage of the world championship cycle, to have been ranked in the top ten players in the world, and to have been rated over 2,700 Élő points, reaching a peak of 2,735 in 2005. During her career, she defeated 11 current or former world champions in rapid or classical chess. Judit Polgár was a member of the 2014 silver medal winning Hungarian Olympiad team and won seven other medals in Olympiads.

ARTPORT –A CONTEMPORARY ART EXHIBITION

Budapest Airport, the managing company of the Hungarian capital’s Ferenc Liszt International Airport, in partnership with the Kovács Gábor Art Foundation (KOGART), invites travelers from Budapest on a fascinating artistic adventure in Pier B of the airport. The eight works of art featured in the exhibition will transport visitors into the world of fine art, creating a unique and inimitable atmosphere within the walls of the pier. The eight-painting exhibition consists of five individual works and one three-part work, each of which can be interpreted individually. The exhibition includes paintings in abstract style, the multifaceted use of the forest motif and impressionist paintings.

company briefs

MOL CAMPUS INAUGURATED

Mol Campus, the Hungarian oil and gas company's new headquarters in Budapest was opened in early December. 2,500 people will work in the building to grow the company, as it is necessary to secure Hungary's energy supply, the CEO of the Mol Group, Zsolt Hernádi said at the opening ceremony.

He added that the building was designed by Foster + Partners and its Hungarian partner, FintaStudio. The interior design solutions were developed by Kinzo and Minusplus design and

POLAND'S ORLEN ENTERS HUNGARIAN GAS STATION MARKET

Following the finalization of their contract with the Hungarian oil and gas company Mol, the Polish Orlen Group has entered the Hungarian fuel market and will operate a total of 143 domestic service stations, the company said in a statement.

79 of the stations are already owned by Orlen, but for the time being, they are still operating under the Lukoil brand, gas stations Mol had earlier acquired. By March 2023, they will undergo a rebranding and will be given a Polish red and white design. The other 64 service stations will be gradually bought and renamed by mid-2024.

COMMERZBANK HUNGARY CLIENTS HAVE JOINED ERSTE BANK

Erste Bank Hungary has successfully integrated the clients and activities of Commerzbank's Hungarian subsidiary into its corporate business. With the technical closing of the acquisition, Erste Bank became Hungary's fifth largest corporate lender, with a market share exceeding 10 percent.

The customers of Commerzbank's Hungarian subsidiary, Commerzbank Plc., joined Erste Bank Hungary Plc. smoothly, according to a statement released by Erste Bank in the middle of December. Commerzbank Plc. carried out its last

Once the Mol transaction is completed, the Orlen Group will operate more than 660 service stations in the Czech Republic, Slovakia and Hungary. The company is the market leader in the Czech Republic with 430 service stations.

The Group will increase the number of stations in Slovakia to 91 and in Hungary to 143, making it one of the four largest players in both markets. Altogether, Orlen operates nearly 3,000 service stations in six European countries – Poland, Germany, the Czech Republic, Lithuania, Slovakia and now Hungary.

planning office while construction work was carried out by Market Építő Plc. According to Mol Group's managing director for consumer services, Péter Ratatics, the Campus is 143 meters high and has a net floor area of 86,000 square meters.

In response to a question from the state news agency MTI, he said that Mol financed the construction of the new headquarters from its own resources, but did not disclose the value of the investment due to commercial confidentiality. However, he noted that the Campus represents a value roughly 20% higher than office buildings built in Hungary.

BMW DEALER DONATES CAR TO EMERGENCY SERVICES

The emergency service in Budaörs, just southwest of Budapest, has received a very special donation: a BMW 530d model to support the emergency services, courtesy of local dealer BMW Rack Auto.

The 24-hour emergency service has been available in the Budaörs and Törökbálint area since 2001, providing ambulance and emergency services and assisting GPs 24 hours a day. The 22-strong emergency crew in Budaörs earlier performed the above tasks with a single car.

The Managing Director of Rack Autó Ltd., Ádám Rédei, handed over to them the keys of a new ambulance and emergency service car. Budaörs mayor Tamás Wittinghoff and Törökbálint mayor Sándor Elek were also present at the handover ceremony. "When we were approached by the Budaörs ambulance station about their need for an ambulance vehicle, there was no question that we, as a local dealer, would come to their aid. They really need a strong, fast and safe car. Therefore, we are proud to support the noble cause of saving lives and believe that this car can make the hard work of the Budaörs ambulance service even more successful," Ádám Rédei said.

The equipment requirements of an emergency car are similar to those of an ambulance – it comes with the same life-saving equipment, instruments and medicines to patients in need of urgent care. When alerted to a critically ill patient, the ambulance with its blue distinctive markings is able to help the patient in need as quickly and efficiently as possible in the Budaörs and Törökbálint area. A BMW 530d perfectly meets the requirements of an ambulance: fast, precise and above all reliable, according to a statement by the company.

transactions on November 30. After that, Erste Bank took over the clients, current accounts, deposits and loans of Commerzbank Plc.

Clients joined Erste Bank's corporate business and were able to use the Erste Bank cards, previously sent to them, from December 2nd, while their new Erste Bank accounts were fully accessible on December 5th. From December customers can use Erste Bank's branches instead of Commerzbank's former branches in Hungary. With the technical closing of the transaction, Erste Bank's corporate loan portfolio reached HUF 1,200 billion, making the financial institution the fifth largest corporate lender in Hungary and its market share exceeds 10%.

Erste Bank Hungary, which turned 25 in 2022, has now completed its 10th successful acquisition by integrating Commerzbank. “We are proud of the fact that we not only gained new clients through the transactions but also know-how with the employees who joined us that helped to increase the quality of our services,” the CEO of Erste Bank, Radován Jelasity said.

company briefs

FOREIGN COMPANY TO TAKE OVER HUNGARY'S KHELL-FOOD

One of Hungary's biggest sandwich makers, Khell-Food is to be acquired by Orkla Foods of Norway. Khell-Food was founded in 1992 and sells sandwiches under this brand throughout Hungary. The share purchase agreement is expected to become effective in the first quarter of 2023, subject to the approval of the Hungarian authorities.

There will be no change at the helm of KhellFood, which will continue to be led by Zoltán Kelényi, the current owner-CEO. The company has done well in recent years, with revenue growth of 11% between 2017 and 2021. Orkla is expanding at a rapid pace: it recently acquired 74% of the shares in the Polish pizza chain Da Grasso.

OTP BANK TO BUY UZBEKH FINANCIAL INSTITUTION

Hungary’s OTP Bank signed a purchase and sale contract on the privatization of Ipoteka Bank in Uzbekistan in the middle of December.

According to the contract, OTP Bank will purchase 100% of the shares held by the Ministry of Finance of the Republic of Uzbekistan (nearly 97% shareholding) in two steps: 75% of the shares now and the remaining 25% three years after the financial closure of the first leg of the transaction. At the same time, OTP Bank and the International Finance Corporation (IFC) have agreed to cooperate on Ipoteka Bank in the future. IFC has been providing financing and transformation

support to Ipoteka Bank for several years and IFC confirmed it is committed to continuing its support and cooperating with OTP Bank, the new majority shareholder.

The transaction is the first step in the privatization process of the local, predominantly state-owned banking sector. Ipoteka Bank is the 5th largest bank in Uzbekistan with a total asset-based market share of 8.5% and it is the market leader in mortgage lending with around 30% market share. The financial closure of the transaction is subject to regulatory approvals and expected in the first half of 2023.

HYDRO DEVELOPS CAPACITY OF ITS SZÉKESFEHÉRVÁR PLANT

DANOVA PROJECT COMPLETED AT BUDAPEST'S MAIN AIRPORT

With the completion of the DANOVA project, Ferenc Liszt International Airport has become the first European airport to provide an independent indoor navigation application for blind and visually impaired passengers. Thanks to the development, implemented with EU funding, unaccompanied orientation and navigation at Budapest's main airport has become easier for users than ever before.

According to a statement by the management company Budapest Airport, it has also installed tactile walking surface indicators along 1,100

meters of passenger areas, at a cost of EUR 31,000 from its own budget.

There are more than 30 million blind and partially sighted people in Europe alone, yet more than 96% of European transport systems are still not fully accessible for visually impaired people, especially in the Danube region. Many blind and partially sighted passengers find it very difficult, and in some cases even impossible to travel by air, rail or urban public transport. ‘DANOVAInnovative transport services for blind and partially sighted passengers in the Danube Region,’ funded by the European Union’s Interreg Danube research and development framework program, aims to make air, water and land public transport fully and independently accessible to blind and partially sighted passengers.

Budapest Airport has joined the transnational initiative and the international consortium of 14 partners, together with the Center for Budapest Transport (BKK). Budapest Airport and BKK also involved the Hungarian Federation of the Blind and Partially Sighted and the Central Hungarian Regional Association for the Blind and Visually Impaired in the planning of the project, to ensure that the development should be fully adapted to the needs of the blind and partially sighted.

Hydro Extrusion Hungary Ltd. is continuing its automotive investments in Hungary and is increasing the extrusion capacity of its Székesfehérvár plant, SW of Budapest, with a EUR 35.7 million (HUF 14.6 billion) development. The company said the development will ensure its future growth potential and create 40 new jobs. In addition to the construction of the aluminum recycling plant announced a year ago, this will be the seventh aluminum extrusion line at the Székesfehérvár site, and is expected to start operations in 2025. The new press will be located in an existing building and will use aluminum billets from the new recycling plant. With this investment, Hydro's Székesfehérvár plant will reinforce its special role as a supplier to the premium brand market, especially in the electric car segment. The automotive components produced in Székesfehérvár include energy absorption systems such as bumpers and crumple zones, as well as a number of structural components for the car body and battery frames. The Norwegian aluminum company's plant in Székesfehérvár, which employs around 1,600 people, is the largest extrusion plant of its kind in Europe, and is also a leading player in Hydro Extrusions' automotive strategy. According to publicly available company data, Hydro Extrusion Hungary Ltd. achieved a profit of HUF 1 billion on sales of HUF 112 billion in the 2020 financial year, while last year it closed with a profit after tax of HUF 10.5 billion on sales of HUF 147 billion.

Diplomacy-n-Trade.ai 1 2017. 02. 27. 11:22:30

BY TAMÁS MAGYARICS

’Eternal peace’ seems to be as far from its realization as at the time when the German philosopher Immanuel Kant in Königsberg was writing about it in the latter half of the 18th century. In fact, the year 2022 was dominated by the Russo-Ukrainian war initiated by Russian aggression, and a number of dire predictions that the conflict might ultimately degenerate into either a nuclear war or a war between the U.S. and Russia – or both.

Naked violence of international law

Vladimir Putin seems to have fatally miscalculated both the strength and the resolve of the Ukrainians and the determination of the West of not letting such a naked violence of international law and the sovereignty of a nation go unpunished. The two sides seem to be determined to go to great lengths, and the outlines of a potential armistice, let alone peace were absolutely obscure at the end of 2022. As in each war, this one is not only about the parties, which are actually fighting each other, there are a number of other outside actors who are trying to take advantage of the situation. Foremost among them is Washington, which seems to be bent on weakening one of its strategic peer competitors, Russia; however, it is an unresolved question whether this endeavor might not push Moscow too close to Beijing.

Despite the fact that Russia has been able to weather the various sanctions imposed on her by a number of countries so far, foremost among them the U.S., the members of the EU, Japan, Australia, and New Zealand (that is, the ’West’ in a broader sense), she is bound to be one of the losers of this conflict in the final analysis.

MANY LOSERS AND FEW WINNERS

The EU also suffers

Another loser of the Russo-Ukrainian war, and the various sanctions regimes was (and is) the European Union, at least surprisingly at first sight. The Community has to pay now for the decade-long poor leadership not only in Brussels, but also in the capitals of its major member states. Thus, among others, the erratic energy policies of the recent German governments have resulted in serious energy shortages and crises at home. The competitiveness of the German economy, the ’locomotive’ of the European economy, has been rather seriously hurt by the short-sighted decision of terminating nuclear energy first, then the equally shortsighted green dogmatism of the better part of the German political elite. On top of all, the exchange of relatively cheap Russian energy for relatively expensive other (including American LNG) energy sources tends to undermine the position of the EU at large in comparison with the power centers of Washington and Beijing in a broader sense. The Russo-Ukrainian conflict has demonstrated again (after the Balkans’ crises in the 1990s) that the EU as a political actor is losing its pouvoir in the world quite fast.

EU vis-á-vis the U.S.

The United States was a sort of winner politically and strategically in 2022. Russia maneuvered itself into a situation from which it would be next to impossible to emerge as a winner. One of the implications is that Moscow is not likely to be able to pursue the ’soft balancing’ of the U.S. it has been engaged in in the past few years. Second, the EU has become even more dependent on the U.S. than before; it is not only military security that the EU is dependent on Washington,

but it is also energy supply/security that weakens the EU’s positions vis-á-vis the U.S. Of course, they are the closest allies of each other, but in the real world where the states are ’ice cold monsters’ (Friedrich Nietsche), raw interests do play a role in economic, political, and strategic questions – and the interests of the EU and the U.S. do not overlap every time and everywhere.

Headaches for the Biden administration

As for the U.S. itself, the Biden administration was a winner and a loser at the same time in the single most important domestic event, the congressional (or midterm) elections. The Republicans were not able to retake the House and the Senate as well; in reality, they even lost a seat to the Democrats in the latter. However, no matter how slim the Republican majority is in the House (222-212), they are bound to give a lot of headaches for the administration both in their role as legislators and in the role of the U.S. Congress as an oversight body. The Biden administration’s ’honeymoon’ in 2022 came to an end on November 8; the ambitious and large-scale omnibus bill of USD 1.7 trillion in late December was most likely the last one of its kind for some time to come.

Chinese ambitions

The fourth largest center of power, China was tied up for the preparations of the 20th National Congress of the Chinese Communist Party (CCP) in mid-October 2022 for the better part of the year. President Xi Jinping was able to stabilize his hold on the Party (and the country), and carved out a good position for himself to embark upon an ambitious program of catching up with the U.S. in the military and economic fields as well.

He was making belligerent statements during the year with regard to Taiwan, and the People’s Liberation Army (PLA) stepped up its activity around the island to demonstrate the seriousness of the commitment to unify the People’s Republic and the Republic of China in the foreseeable future. The belligerence of President Xi was serving domestic political purposes to some extent without any doubt. Otherwise, China was playing it safe in the major international conflict: it did not join the sanctions regimes against Russia, it was taking advantage of the reoriented Russian energy exports but, overall, it was sitting on the fence watching very carefully how far the U.S. was willing to go in protecting a country, which is seen by some as a ’pivotal’ one for Washington.

2023 may not be better

Beyond the critical issues in world politics, the man-in-the-street almost everywhere encountered difficulties from higher energy prices to inflation and rising costs-of-living especially in the industrial countries, outright challenges to survive in a number of poor countries in Asia and Africa because of the disruptions in supply chains and shortages of staples as well as the resurgence of COVID-19 (for instance, in China), some dire consequences of climate change (draughts in large areas), just to name a few of the outstanding problems. Presidents and prime ministers in their New Year’s addresses invariably strike a positive note, but not this time. The speeches were full of warnings and hints that things will not be better than in 2022. We can only hope that they are mistaken – as they were so many times in the past year.

Tamás Magyarics is a foreign policy analyst

INTERNATIONAL ANALYST LOOKS AT THE MAIN DEVELOPMENTS OF THE YEAR 2022

STAY AHEAD

BY SÁNDOR LACZKÓ

In October 2022, Ambassador Grubmayr began his speech at the national day reception held at his residence in Budapest by mentioning two great shocks people in this part of the world have been – and are – subject to: the COVID-19 pandemic and the Russian war of aggression against Ukraine. As to how much – and in what way – these two occurrences have impacted relations between Austria and Hungary, the Ambassador states that “first the coronavirus pandemic and now the Russian war of aggression against Ukraine presented not just us but the whole world with a huge challenge. During the pandemic, the cooperation between the authorities of our countries was excellent. Especially at the very beginning, in 2020, we could rely on Hungary´s help with the evacuation of Austrian citizens worldwide. In this same year, Foreign Minister Schallenberg launched the so-called ‘Central 5’ initiative to foster central European cooperation in the fight against the consequences of the pandemic. Since then, this

format has become an institution that contributes to enhance common Austrian-Hungarian efforts in other areas as well.”

He adds that bilateral cooperation between the two countries – especially between the border police on both sides of the border – proved very useful and helpful to ease the burden for commuters during the pandemic. “Furthermore, in spite of the difficulties due to the pandemic, trade relations between Austria and Hungary not only regained full momentum last year but also strengthened. When it comes to the Russian war of aggression against Ukraine, both our countries support the Ukrainian people in this very difficult situation. In mid-December, there were over 88.000 registered Ukrainians in Austria.”

Austrian ‘55’ and Hungarian ‘56’

In that speech, Ambassador Grubmayr also referred to Austria’s permanent neutrality. The question arises whether there was a connection between the events of 1955 in Austria and the Hungarian Revolution of 1956. Many historians

share the view that there would have been no ‘56’ without the Austrian ‘55’.

government. The treaty re-established a free, sovereign and democratic Austria. On October 26, 1955, the Austrian Parliament declared and adopted perpetual neutrality in the form of a constitutional law. Neutrality has been a fundamental element in Austria's foreign policy ever since. It should be stressed, however, that it is a military neutrality,

HUNGARY AUSTRIA AREA 93,028 sq km 83,871 sq km country comparison to the world 110 114 POPULATION 9,699,577 (2022 est.) 8,913,088 (2022 est.) country comparison to the world 93 99 POPULATION GROWTH RATE -0.3% (2022 est.) 0.32% (2022 est.) country comparison to the world 216 166 BIRTH RATE 8.65 births/1,000 population (2022 est.) 9.45 births/1,000 population (2022 est.) country comparison to the world 211 193 LIFE EXPECTANCY AT BIRTH 77.2years 82.27 years country comparison to the world 92 25 GDP - PER CAPITA (PPP) USD 31,000 (2020 est.) USD 51,900 (2020 est.) country comparison to the world 63 25 UNEMPLOYMENT RATE 3.45% (2019 est.) 7.35% (2019 est.) country comparison to the world 48 117 TELEPHONES - MOBILE/CELLULAR 10,332,660 (2020) 10,717,445 (2020 est.) country comparison to the world 88 85 AIRPORTS 41 (2013) 50 (2021) country comparison to the world 103 90 Source: World Factbook

but not an ideological neutrality. On October 23, 1956 the first weapons were brandished against the communist dictatorship in Hungary and the news also reached Vienna. Austria maintained the security of its territory, its sovereignty and remained militarily neutral but the members of the Austrian federal government expressed their sympathy with the uprising in Hungary. Ambassador Grubmayr reminds that “Austria saw its humanitarian mission in helping the injured of the Hungarian Revolution and in proclaiming and securing the right of asylum. The neutral Austria could provide a secure refuge for numerous Hungarians fleeing their homeland. Our country accepted over 180,000 Hungarian refugees. Several thousands of them found a new home and built a new life here and became integrated members of the Austrian society.” Austria regained its independence just one year before the Hungarian revolution. The question as to whether the developments in Austria were a positive historical example for the Hungarian people and the issue of interconnectedness of these developments with the Hungarian Revolution is for historians to decide, the Ambassador points out.

Successful management

He arrived in September 2020 to take up the ambassadorial position in Budapest. When asked what sort of challenges he – and the embassy staff – have had to cope with over these past two years, the first thing that comes to his mind is that he arrived in Hungary in the middle of the new coronavirus epidemic. “Due to the COVID-19 pandemic regulations, we were managing meetings, projects basically online without meeting each other and held online events. We can tell that we were able to manage the bilateral relations successfully in this difficult period.”

European and regional cooperation

When it comes to Austrian-Hungarian political relations in general and the two countries’ cooperation on the international scene, Ambassador Grubmayr stresses that a very important area of foreign policy cooperation between Austria and Hungary is currently the enlargement of the European Union. In this context, the security of the Balkans, more specifically of the Western Balkans is a fundamental issue for both our countries. “We agree on the need to give the countries the perspective of joining the EU, which is at the same time the key for future security of Europe.” Another challenging issue is the migration topic. Austria was – both in 2021 and 2022 – the country with the second highest per capita number of asylum requests in Europe. “Serbian President Aleksandar Vucic, Hungarian prime minister Viktor Orbán and Austrian chancellor Karl Nehammer have recently signed a Memorandum of Understanding to strengthen cooperation in order to effectively combat illegal migration and human trafficking.

After the first Tripartite Summit on October 3 in Budapest, they met again in Belgrade on November 16. The aim is to reinforce controls at the border between Serbia and North Macedonia in addition to what is being done at the border between Hungary and Serbia. As I already mentioned, regarding the Russian aggression against Ukraine, Hungary

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and Austria have both been very active in the humanitarian field, trying to ease the fate of those who left Ukraine but also by helping the population in Ukraine through financial and other means of support,” the Ambassador highlights.

Multi-faceted cross-border cooperation

Being good neighbors, taking advantage of crossborder opportunities is very important between Austria and Hungary. Ambassador Grubmayr explains that regarding bilateral relations, economic relations and tourism play an important role. Hungary is Austria's most important export partner in Central and Eastern Europe. Austria is Hungary's second most important trading partner in terms of trade volume and the third largest investor in Hungary. About 1,400 Austrian companies employ approximately 70,000 workers and about 45,000 workers commute to Austria every day. “As a good example, we should mention the cross-border cooperation program between Burgenland and Hungary in the framework of the Interreg program. This special cooperation covered not only economic fields such as the support of small and medium sized businesses that want to operate in both countries, but also cross-border education initiatives. The current focus is on environmental issues, national parks, the cultural heritage and the important issue of mobility, the connection of the railway to the Trans European Network (TEN). Besides this, there is also a bilateral cross-border rescue service agreement in the making that will further improve the coordination in the field of medical care. This is an important step forward that will directly benefit the people in the region,” Ambassador Alexander Grubmayr concludes.

PRIORITIES OF THE AUSTRIAN-HUNGARIAN INTERREGIONAL COOPERATION ('INTERREG V-A AUSTRIA-HUNGARY PROGRAM') THAT SUPPORTS PROJECTS ACROSS THE BORDER REGION OF AUSTRIA AND HUNGARY.

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A PLATFORM FOR COOPERATION IN THE REGION

AGENCY OFFERS INFORMATION AND SERVICES TO POTENTIAL

AUSTRIAN EXPORTERS AND INVESTORS

ADVANTAGE AUSTRIA is the Austrian Federal Economic Chamber's external trade agency in charge of trade development and Austria's largest provider of foreign trade services. The new head of the organization’s office in the Hungarian capital, Philipp Schramel tells Diplomacy&Trade about the tasks performed – and services provided – by the Budapest office.

“We have three pillars of what we do here as a service for Austrian companies and for the local market. The first pillar is information. Basically, we compile relevant information on the Hungarian market and make it available to Austrian companies – it can be market information, business intelligence data or new laws and regulations. The second pillar is a service component. We help Austrian companies to find the right business partners, ranging from investors to clients or corporation partners, for example, for joint production or outsourcing. Finally, the third pillar is our events. We organize a wide range of formats from classical networking events here for Austrian subsidiaries to targeted B2B events for Austrian companies interested in the Hungarian market,” the Commercial Counsellor explains.

As for specific services, he adds that “we also provide credit and background checks if needed, as well as initial legal advice. As we are not lawyers, our services are not legal binding advice. If needed, we can connect clients to lawyers specialized in the field where the company needs it. We also support Austrian companies.

Although Hungarian is a beautiful language and there are many Austrians with Hungarian origin speaking this language, sometimes Austrian companies need help in translating, which is another service that we provide.”

Green tech and Zalazone

Austria is the second largest trading partner of – and third largest investor in – Hungary. Also, for Austria, Hungary is the fifth biggest export partner. “Even in times of economic and political challenges, Austrian exports to Hungary increased by 40% in the first half of this year compared to the same period in 2021,” Philipp Schramel notes. In terms of further improvement of bilateral economic relations, he mentions that “Austria has a lot to offer in the green tech area, for example. Waste management and green buildings are fields where Austria is a world leader and drives innovation in this field.” The automotive sector is an important area of business in Hungary and Austria has already multiple suppliers to the big car manufacturers here. The new developments in this area are e-mobility and autonomous driving for which ZalaZone in SW Hungary is the biggest testing center in Europe. There,

the main commercial partner is Austria’s AVL List that is testing cars worldwide and helps commercialize testing for this Hungarian venue.

Events

The Commercial Counsellor highlights four main areas in various sectors where ADVANTAGE AUSTRIA organizes events. “In food and beverages, we invite Hungarian partners to come to Austria to the exhibition ‘Marketplace Food’. This November, there was a big machinery forum in Austria where we had Hungarian companies traveling there to meet potential cooperation partners of Austria. Another area is the green building sector and we organize a big conference on mobility of the future in Vienna.” In pandemic times, ADVANTAGE AUSTRIA organized multiple webinars to inform Austrian companies on the newest developments in the Hungarian market. “Since the easing of the COVID-19 restrictions, we once again participate in the major trade fairs in Budapest – for example at the Hungexpo site. At the HVG job fair, we were present with seven Austrian companies that recruit for the local subsidiaries. Then, we have the automotive fair where we are always present, the Construma construction fair where we always have group stands for ADVANTAGE AUSTRIA, the Educatio study fair, etc.,” he says. The agency also looks into some smaller but sector-targeted events where they can promote Austrian know-how. “For example, I'm thinking about a road show next year for green technologies from Austria. And we have events for the Austrian-Hungarian business community here together with the AustrianHungarian Business Council and the Embassy where we provide information about the business climate here. We also try to bring together the community with social gatherings like at the traditional annual puntsch event in December with mulled wine from Austria – a nice gettogether for the end of the year,” he adds.

Challenges for Austrian firms

Philipp Schramel arrived to Hungary this summer “in addition to the daily business, I focused on meeting as many companies as I can – I am still in the process because we have over 1,400 subsidiaries here. Hungary is an important market for Austrian companies. They want to be here and they want to service the Hungarian

market with their products and also as a reliable employer for their Hungarian workforce. In these challenging times, in addition to the rising energy prices, companies need to take care of their employees’ needs, raise wages so that people can somehow cover the rising costs of living. With rising costs for energy, raw material and the inflation, this is one of the major challenges they face. One of pain point companies face is to find skilled labor. We have companies that could recruit, for example, 30 truck drivers tomorrow and they are not able to find enough of them. Another major challenge is plannability and the uncertainty of the business climate: everybody – from suppliers to clients – is waiting for the ‘what will be next?’ For example, some big construction projects are on hold because of the uncertain supply and future prices of construction material. In some sectors, insecurity persists about the legal framework changes with crisis laws or new taxes that are introduced – sometimes overnight – in Hungary. Our job is to try to reduce this uncertainty and inform Austrian companies on new developments and provide clarification, together with our partners in the Hungarian Ministries.” He stresses that “from the Hungarian side, the ministries are important partners for us. We work closely with the Ministry of Economy, Ministry of Innovation and the Ministry of Finance, just to name a few. They are very helpful when it comes to clarifying what Austrian companies need to pay as taxes or if there is a change in regulation. We have also very close contact with the chambers of commerce here, regional ones

and the national ones. We discuss investment issues with the national agency HIPA as we get quite a few investment requests from Austrian companies: what the legal framework is or what kind of grants they can get. And we have lawyers and tax advisors that help as well.”

International background

ADVANTAGE AUSTRIA has a network of over a hundred centers in more than 70 countries. Philipp Schramel believes one of the main assets of this organization is its worldwide network as Austrian companies are strongly export-oriented and are not limiting their activities to a single market. “For example, if a company from Austria is planning to export to Central Europe, they will look at the Hungarian, the Czech, the Slovak market and so on. We have offices in all these countries and can offer a comprehensive overview of the market opportunities and possible challenges. Bases on this information, the company can then decide which market they want to focus on or if they want to tackle all the markets simultaneously. This applies to the export of goods and services, investments or outsourcing decisions. We organize joint events as well with offices from other countries. We bring together corporation partners and buyers from the various markets either in Austria or to trade fairs in the regions. to meet Austrian companies. The idea is to offer platforms for cooperation in the region, and especially with the neighboring markets. This is one of the mayor assets we have in the region and works very well.”

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SPAR HUNGARY: STRIVING TO CURB INFLATION ONE STEP AT A TIME

THE SUPERMARKET CHAIN SEEKS TO INCREASE ITS NATIONAL PRESENCE IN HUNGARY

As Hungarian shoppers tighten their belts to stave off the impact of incessantly increasing prices, retailers are also feeling the pinch. Spar Hungary, one of the country’s leading supermarket chains, is taking small, adaptive steps to shield their business and help consumers.

Hungary is experiencing the biggest increases in food costs in the European Union. Food prices are surging at an annual rate surpassing 40%, more than double the EU average. This is taking a toll on consumption as evidenced by weak retail sales, especially at food retailers. With an overall bleak consumption picture and inflation forecast to climb higher, households are widely expected to further cut spending. This leaves retailers in a particularly tight spot. “In such a turbulent environment, when so much happens to us every day, we have to take a lot of small, adaptive steps,” says Gabriella Heiszler, CEO of SPAR Magyarország, one of the key supermarket chains in Hungary.

Fighting to dampen the impact of inflation

SPAR, which has been present on the Hungarian market for over three decades, has become a household name in Hungary. They have a nationwide presence and their brand recognition is outstanding. The company is working hard to make sure it protects customers from negative market effects as much as possible. “We only accept price increases from our suppliers after serious and long negotiations. Perhaps this is the most important thing we can do in order

to try to curb the huge inflation present in our country with our own means, or even slow it down a little,” Gabriella Heiszler notes.

In addition to trying to keep a lid on prices, SPAR has embarked on a significant cost saving program. It pays close attention to energy consumption as utility costs are soaring at an even higher rate than food prices. With various solutions, SPAR managed to achieve a quantitative reduction of more than 10% in electricity consumption in the second half of last year. They also experiment with various marketing models to facilitate a switchover to digital channels. In Budapest, for instance, paper-based leaflets have become shorter while the online forms have undergone a significant expansion. The executive says that this is part of a campaign to gauge customer willingness to consume advertising in digital form. In order to cut back personnel costs, the company has reviewed its policy of employing external workers and has taken appropriate reduction measures.

Increasing the national footprint

Despite the challenging economic backdrop, expansion is of strategic importance to SPAR

as they seek to increase their customer base. Hungarian regulations, however, render new store openings extremely complicated, according to the CEO. “The so-called Plaza Act makes it very difficult to release or develop completely new properties. We are happy if we manage to open 3-5 such stores a year. Our goal remains to be able to open a store in every location where we manage to obtain a shopping mall exemption,” Heiszler says.

The franchise channel is an area of success in terms of national expansion. SPAR celebrated the tenth anniversary of its franchise program last year. As of September 2022, 237 Spar shops operated as franchises in Hungary in 114 settlements. “The franchise channel works very well, as we bring Hungarian retail partners under the SPAR brand by converting existing premises. We have built a very good brand for our franchise partners, our marketing activity is effective, and we can provide them with excellent logistics services,” the executive stresses. SPAR generates more than 10% of its sales through this channel, which clearly shows that this strategic direction is one worthwhile pursuing.

Think local, buy local

The supermarket chain purchases more than 90% of its food produce locally in Hungary.

The drive to stock shop shelves with uniquely Hungarian products manufactured by smaller producers is being hampered by the difficult economic situation. “Unfortunately, in a difficult demand situation burdened with high inflation, the place of origin of the product is a secondary consideration. In such a situation, the price is everything,” Heiszler says. Even though customers say that they prefer Hungarian products, this is true only as long as they find the price-value ratio is right for them.

Nevertheless, SPAR is working together with many local small and medium-sized enterprises, and they hope that a number of them can become bigger partners in the long term. They are purchasing innovative products specifically developed for either local or national Hungarian tastes and they hope that offering these products will help distinguishes them from the competition. In addition, the company is keeping a close eye on the market to see whether there is demand for new services. They operate their own bakery, coffee roasting, and winery in Austria and are looking for opportunities to develop these services in Hungary as well.

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CULTURAL DIALOGUE WITH HUNGARY

AUSTRIA’S CULTURAL INSTITUTION IN THE HUNGARIAN CAPITAL BUILDS ON CLOSE COOPERATION WITH LOCAL PARTNERS

The Austrian Cultural Forum Budapest (Österreichisches Kulturforum Budapest – ÖKF), one of 30 Cultural Forums worldwide by Austria's Federal Ministry for European and International Affairs, looks back at a history of 45 years. The Director of the institute, Christian Autengruber tells Diplomacy&Trade about the tasks they performed and the services they provide in Hungary.

Regarding the scope of the Cultural Forum’s activities in the Hungarian capital, Christian Autengruber highlights that “in our team of seven, we organize programs in all art forms, film, literature, visual arts, conferences, lectures, dance, theater and performance art but our tasks also include cooperation in the fields of education and science. However, our focal points differ from year to year: for 2023, we are working on a strong cooperation with the European Capital of Culture Veszprém/ Balaton. This European project is also important to us because we are particularly interested in enlarging our activities beyond Budapest.”

Emphasis on contemporary music

The ÖKF organizes a long list of events from literature through cinema to classical music concerts. As to which ones he would point out as the most popular, he says he considers their cooperation in the field of music to be particularly successful. “We work with a number of Hungarian music institutions, such as the Budapest Music Center, the Musicology Institute at Budapest Castle, the A38 ship and most recently with the House of Music Hungary in Városliget [City Park]. With all these partner institutions, we are constantly working on programs, whereby we place a great deal of emphasis on contemporary music-making, including the examination of Hungarian musical heritage when we have Austrian musicians as guests. At the moment, we are very much looking forward to the 100th anniversary of the birth of the Hungarian-Austrian composer of contemporary classical music, György Ligeti in 2023, who spent the last years of his life in Vienna.”

Dialogue with Hungary

The Austrian Cultural Forum Budapest is working in close partnership with Hungarian artists and with Hungarian cultural institutions. Speaking about the considerations when entering into such partnerships, the Director stresses that “partnerships are more or less the heart of our work. All our projects are about dialogue with Hungary. Our target group is the Hungarian society and we always work

with artistic means in dialogue. On the one hand, this is reflected in the partnerships with Hungarian institutions with which we develop our program. On the other hand, Austria and Hungary have a lot in common historically, which we build on in our work. In September 2022, for example, we had a very special cooperation with the Hungarian National Film Archive for the first time, where we paid tribute to filmmaking between Budapest, Vienna and later Hollywood as part of the "Budapest Classics Film Marathon". It is little known that Budapest and Vienna were film metropolises until National Socialism, and that there was a lively exchange of actors, directors, film music composers, film technicians and many more between them.”

Common history

As Christian Autengruber already mentioned, Austria has had a long period of common history with Hungary. As to how that appears in the activities of the ÖKF, he states that basically, Austrian foreign cultural diplomacy focuses on contemporary cultural creation. “Here in Hungary, we have a little different situation, because we must also strive for the close historical connections. As an example, I am thinking of the close cooperation of the state archives, which still brings to light unknown treasures – recently, for example, on minutes of the Council of Ministers from the time of the Austro-Hungarian Monarchy, in which the political processes between the Hungarian and the so-called Cisleithanian halves of the empire to negotiate the ‘Ausgleich’ [Equalization] become clear.”

Libraries

Four “Österreich-Bibliotheken” (Austrian Libraries) in Hungary, with the exception of the one at Andrássy University Budapest, celebrate their 30th anniversary in 2022 and 2023. As the ÖKF Director explains, they are all integrated into university libraries and have a wide variety of book holdings related to Austria and German-language literature, which are also constantly being expanded. “We are currently organizing literary encounters in these libraries together with the seven Austrian lecturers at Hungarian universities in the runup to the Austria focus at the Leipzig Book Fair 2023. They are, therefore, not only places where literary works from Austria – or related to Austria – can be borrowed throughout the country, but also venues for literary events. Furthermore, German as a foreign language is a great priority for us together with many actors, like the German and Swiss Embassies, the Goethe Institute and the Austrian Institute as part of the Cultural Forum being responsible for teaching German with an Austrian touch.”

Topical issues

ÖKF Budapest is not only about showcasing Austria's culture but getting into dialogue on topics that people face all together in Europe or worldwide. “One of our latest programs is called ‘Fixing the Future’, where we try to deal with social and ecological challenges of our time – always in connection with people from Hungarian and Austrian civil society. We mainly link protagonists, for example, between NGOs on urban development in Budapest and Vienna,

on issues of the ecology of the Danube, etc. Women issues are also core to our work, as well as all aspects of pluralistic and democratic societies,” Christian Autengruber points out. As regards the composition of the audience attending the events of the Austrian Cultural Forum Budapest and the feedback the institution receives from them, “our Hungarian visitors are as diverse as our program. The pandemic has meant big cuts for our work, but we are happy that after many online programs, our in-person events are now always well attended again,” the ÖKF Director concludes.

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ÖBB Rail Cargo Group and its Hungarian subsidiary, Rail Cargo Hungaria transported more than 1 million metric tons of grain from Ukraine last year, the multiple of the amount of the previous year. The company stands ready to continue helping Ukrainian people and expects the freight volume between the two countries to continue increasing this year.

Rail Cargo Hungaria (RCH), a member of Austria’s ÖBB Rail Cargo Group, saw its transport of goods from Ukraine skyrocket in 2022. Since the outbreak of the war, the company group has put the transport of food consignments from Ukraine into focus and increased the throughput of transported goods to 1 million metric tons, which places the company amongst the leading railway companies providing assistance. The group prioritizes the transportation of food shipments from Ukraine, mainly corn, sunflower seeds, wheat, soy, barley, and vegetable oil. Half of the incoming goods are iron ore, but the second largest items are grain and oilseeds. Two-thirds of the grain, which arrived in Hungary from Ukraine was transported to Hungarian customers, the remaining part was forwarded to grain depots in Italy and Austria.

“Together with its Hungarian subsidiaries, ÖBB Rail Cargo Group considers it a priority task to provide support to the Ukrainian people and economy with its services. We expect the freight volume between Hungary and Ukraine to continue to increase this year. We are ready to continue to fulfill the increasing transport demands expressed by the Ukrainian side,” said Imre Kovács, Member of the Board of Directors of Rail Cargo Austria and Chairman of the Board of Directors of RCH. The year 2022 was laden with challenges for the rail freight industry and RCH was no exception. The 300% increase in the price of traction energy significantly worsened the competitiveness of rail transport versus road transport. Rampant inflation led a rise in all types of operational costs. RCH is implementing strict measures in personnel management, work organization and vehicle management to counterbalance the difficult operating environment and has been successful in obtaining additional orders to compensate for lost traffic.

A story of success

RCH’s privatization took place in 2008 when its predecessor, MÁV Cargo Árufuvarozási Zrt. was acquired by ÖBB’s freight transport subsidiary, Rail Cargo Austria. The privatization of MÁV Cargo was a story of success: the Hungarian state received nearly HUF 103 billion in revenue, and Rail Cargo Austria expanded its services to the economies and industrial zones of Southeastern Europe by using the capabilities, assets and network of connections of the market-leading Hungarian rail freight company. The new owner upgraded the company’s equipment, set up RCH’s independent traction capability, including its own locomotive fleet, and established the foundations for the automation of the goods handling processes. “RCH played

ÖBB RAIL CARGO GROUP: CONNECTING UKRAINE WITH EUROPE

an incremental role in turning the Group into Europe's second largest rail freight carrier in the past decade and a half, providing quality rail logistics services in 16 other countries on the continent in addition to its two domestic markets – Hungary and Austria,” noted Imre Kovács. Expanding RCH’s traction capacity and increasing the proportion of its traction services are considered as a strategic interest for the company. With this objective in mind, RCH commissioned the subsidiary of the world's largest railway vehicle manufacturing company, the Chinese CRRC ZELC, to develop electric hybrid locomotives specifically optimized for the company’s needs. The equipment,

which is currently being tested, represents a unique technology and RCH will be the first rail freight company in Europe to use this technology. Using electric-hybrid locomotives allows RCH to operate in areas with no electric overhead lines or during times of repair and maintenance of such lines. Rail tracks used for industrial sidings typically do not have such power source, so highly polluting diesel locomotives still have to be used on these lines.

Focus on sustainability

Environmental awareness is a core strategic value at RCH as well as at the whole company group. As freight transport providers, the

company unburdens the environment from several hundred thousand tons of carbon dioxide. “We pay great attention to reducing environmental pollution and noise pollution to a minimum level,” stressed Imre Kovács. The vast majority of the company’s modern and energy-saving locomotives feed the electrical energy generated during braking back into the electrical network. RCH is investing more than HUF 1.5 billion to replace the traditional braking devices of its wagons with the so-called silent brakes that operate with composite brake pads required by the European Union. By the end of last year, the company equipped 75% of its fleet of 8,000 units with these devices.

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A TRAINING CENTER FOR THE FUTURE

PORSCHE HUNGARIA FACILITY TACKLES THE CHALLENGES OF CONSTANT AUTOMOTIVE INNOVATION

Hungary’s largest motor vehicles importer, Porsche Hungaria opened an Innovation and Training Center (ITC), located just outside Budapest, last October. With a huge automotive training and transfer capacity, the center – considered by experts to be an outstanding educational facility on an international level – welcomes technical and sales professionals from all over the country (and beyond) to provide them with truly modern and complex 21st century skills.

As the Technical and Customer Service Director at Porsche Hungaria, László Markos tells Diplomacy&Trade, when they were given the opportunity to build this HUF 2 billion facility, financed by the company with the company’s own resources, they tried to look at the best practices in this field in Europe. “It was in Austria and Belgium where we found similar newly established educational facilities. Taking into account the best experience there and the factory guidelines, we designed the premises for theoretical and practical training. Necessities during the COVID-19 pandemic period showed us the usefulness of online education in certain areas, so we have integrated this in the design of the building. Thus, we have an online studio and a hybrid conference room to be able to conduct both face-to-face and online learning in this facility.”

Constantly updated skills

The center welcomes technical and sales professionals of the Porsche Hungaria network from all over the country. The Director highlights that “our cars are renewed almost every year and thus, we need to be able to ensure that the professionals update their knowledge year after year, whether it's our sales colleagues, service advisors or the service technicians themselves who actually touch these tools and if there's a problem, they can solve it. There are around 600 service technicians working in the Porsche Hungaria network, and another 300 office colleagues (sales people and service advisers),

and they need to know every single functional element of the car too, even if they do not necessarily have to touch the components.”

Premium level of service

Regarding the specific subjects taught in the facility, László Markos stresses that “on one hand, we should expect a premium level of service from the dealer network. This obviously requires a premium level of knowledge on the side of the staff in the car showrooms and garages. This is definitely a priority requirement. Obviously, specific knowledge is needed to repair SEAT, SKODA, CUPRA, Audi or Volkswagen cars. These, of course, differ somewhat from the products of other manufacturers, but we are not afraid to try out the products of our competitors, to test them and learn about their strengths and possible disadvantages, because we can only give our customers correct information if we can show them in which areas we are better or where we can make up for lost ground. It is therefore a good facility to do comparative test drives and to get to know, at least at a user level, competing models, but obviously the main focus is on our own products.”

Not just for Hungarians

The facility welcomes professionals not only from Hungary, but also from several countries of the region. “Actually, the international aspect of our facility is more of a thing of the future, because we have only opened a few months ago and we would like to be able to present ourselves to our neighbors when we have polished everything up

and everything is running smoothly. As for possible language challenges of training, all of our teachers have obtained their trainer certification at the car factory in Germany. Consequently, they are quite fluent in the language,” the Director points out. He adds that they have already delivered 1,500 training days in these few months. This is the number of participants since a course for ten people counts as ten training days. “

Providing a base of innovation

As László Markos emphasizes, the word ‘Innovation’ in the name of the facility very much appears in the day-to-day operation as well – and it also did in the construction of the building. “Automotive engineering is about constant innovation. We have to learn about new technologies and how to implement them at an operative level almost every month. This building, itself is also a state-of-the-art piece of architecture. For example, we do not heat with gas, but with a heat pump system. We are developing an energy storage add-on for our 115kW solar system, by reviving the tired batteries in our cars that may have run out, giving them a second life. This will be the biggest innovation this year, but we are open to participate in any factory development experiments or work where on-road driving plays an important role, or where the user experience is something the factory wants to build on.” He finds it important to note that the Center is located at the apex of the Győr (site of the Audi factory), the Zalazone test track and Budaörs triangle. It is very close to the meeting point of the M1 and the M7 highways, both of which are planned as a smart road while road No. 76 connecting the two ends will also be converted into a smart test road in the coming years. “Test cars using this road system will be able to turn around at the roundabout in front of our building. We have offered both to the development organizations and the universities as well as obviously to the Audi factory that we will be a fulcrum here, whether it's just charging an electric car, reading trouble codes, solving any practical issue, or just in terms of a nice coffee for the drivers – we want to be an important base and be involved in innovation in that way. The daily service practice also works as a serious feedback loop with quality improvement, as the positive and negative experiences our customers

have on the road are fed back directly to the manufacturer and are fed back into the development as soon as possible,” the Director stresses.

An event venue

The Center is situated in a spacious building making it suitable for large-scale events. “In the largest room, we can accommodate up to 130 people. We have a large projection screen where we can provide the appropriate audiovisual technology. Last fall, we held a service technology conference for 130 people of our own network. This January, we had the annual opening meeting of the Austrian-Hungarian Business Council here attended by numerous managers of companies with an Austrian interest based in Hungary, who are obviously also involved in the automotive industry, either as users or even suppliers. We were able to easily provide them with a smaller, 40-seat meeting room with all the necessary infrastructure,” László Markos notes.

Preparing for better times

The automotive industry has recently been plagued by a number of well-known problems, such as supply chain bottlenecks and chip shortages. However, the creation of this training center is a sign of optimism on the part of the company. “I believe that in economically challenging years, such as last year and, I expect, this year, our service network and our dealer network can be well prepared to take a very strong bracket after a recovery. To do this, it is imperative that we are equipped with stateof-the-art techniques, knowledge of our cars, the methods, software and tools needed to sell vehicles and serve our customers. But perhaps most importantly, we need the personal human skills and abilities to be able to deal with our customers' expectations,” the Director concludes.

Your Hungarian Solar Panel Specialist in Austria!

HUNGARIAN ELECTRICAL CONTRACTOR EXPERIENCED IN RENEWABLE ENERGY CONSTRUCTION UNDERTAKES WORK IN AUSTRIA – AT HUNGARIAN-LEVEL PRICES.

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DEVELOPING THE BRAND ‘HOLIDAYS IN AUSTRIA’

OVER 65% OF THE AUSTRIA’S TOURISM REVENUE IS GENERATED DURING THE ‘SNOW SEASON’ Österreich Werbung (ÖW), the Austrian National Tourist Office, is Austria's national tourism marketing organization supported by the country's Federal Ministry of Labor and Economics and the Austrian Chamber of Commerce.

The figures available from 2021 (still a pandemic year) show that Austria welcomed 22.1 million guests (including 12.7 million international tourists), who spent 79.6 million overnights in the country – with extrapolation for 2022 showing better figures.

As Oskar Hinteregger, Head of Markets Hungary; Romania, Slovakia, Slovenia, Croatia, Ukraine, Russia at Österreich Werbung points out to Diplomacy&Trade, “the overall results for 2022 are very pleasing indeed, as they are showing a strong recovery after two years severely affected by the pandemic. The Austrian tourism sector generated 39.79 million arrivals and 136.93 million overnight stays. This is a 75% increase in comparison to the year before and 10.3% less than the all-time high.

Hungarian guests contributed 490,000 arrivals and 1.68 million overnight stays, thus remaining one of our Top 10 source markets. The figures for the current winter season are also very pleasing: November and December data demonstrate that Austria has almost reached 2019 levels. The current exceptional snow conditions will guarantee a skiing season until the end of April.”

Adapting to customer trends

He adds that in economic terms, winter (or the ‘snow season’) is a very important source of revenue. “More than 65% of our annual tourism revenue is generated during this period. At the same time, we are noticing over the recent years a considerable increase in demand for holidays during the spring, summer and fall periods. The chief reasons for this are a growing interest in outdoor activities – especially walking, trekking and cycling –, a hugely attractive offering of our cities as well as a generally changing consumer trend, to divide their holiday periods into more trips/breaks of shorter duration.” Austria manages to benefit from these developments also as far as Hungarian visitors are concerned. For them,

Austria and its attractions and events are within easy reach. Hungarians feel especially attracted by music or culinary festivals, city breaks and new alpine outdoor experiences such as cycling, mountain biking or hiking, he explains.

Decline and recovery

In general, tourism is an important economic pillar for Austria, accounting (in the pre-pandemic year of 2019) for 7.5% of the country's GDP. However, the

recent hard times have adversely affected it as well.

“With tourism partly at a standstill, the contribution to the country’s GDP dropped to below 5% during the pandemic and is currently on the way to recover to former levels. Owing to various government measures and subsidies that were immediately made available, the sector has utilized this period for notable quality upgrades and extensions of its offering. The overall number of accommodation establishments and beds available has respectively increased by over 2% in all sectors (camping inclusive) by comparison to 2019. The largest increase of room capacity has been added in our capital city Vienna with growth figures showing an impressive 17.8%,” Oskar Hinteregger notes.

Climate change and sustainability

It is not just the pandemic but some of the impacts of global warming (like less snow in traditional ski resorts) adversely affect incoming tourism as well. As to how Austrian tourism copes with such challenges and what measures are taken to alleviate the problems, he states that it is not a question of less snow, but more of varying and rapidly changing weather conditions, like temperature rise. “In some parts of Europe, we have experienced he driest summer and now, in January, the most rainfall in Hungary in well over 100 years. Adapting to volatile situations and managing resources, developing and implementing action plans for a more sustainably remains an ongoing challenge,” he admits. “Just to put it into perspective – the Austrian tourism sector accounts for not more than 1.55% of the annual total energy consumption of the country. 54% of the tourism industries consumption is already generated from renewable resources. The electricity required per overnight stay has, in the last 15 years, been more than halved from 18.1 kWh to 8.4 kWh. In short, the sector is fully aware that our habitat and stunning alpine landscapes are amongst our most unique assets that require our utmost attention as their sustainable use is concerned. Figures demonstrate that further actions need to be taken. To that regard, as far as the National Tourism Organization is concerned, we have therefore added ‘sustainability’ to the core pillars of our organizations strategy, and we are currently working with the industry on structures and ways to highlight (also to the guests, of course) the ecologic footprint of any activity undertaken whilst in our country. At the same time, we are very much aware, that by far the biggest individual (pollution) challenge is the amount of CO₂ generated by travelling to and from any holiday destination. Our resorts and regions, together with the transport providers, are working on providing convenient alternative travel options to the car. The continuous development of attractive and convenient rail travel options is very much a current focus. When in the resort or in one of our alpine valleys, there are already sufficient options available, in order for the car to enjoy a holiday as well.”

Developing the ‘Holidays in Austria’ brand

Regarding the efforts at the Budapest office of Österreich Werbung to attract more Hungarians to visit Austria, Oskar Hinteregger highlights that their principal aim is to develop the brand ‘Holidays in Austria’ in order to raise awareness and develop the profile of the country as being one of the most desirable holiday destinations. “Thus, we offer assistance to the Hungarian travel trade in sourcing and promoting relevant offers, provide the Hungarian media with ideas and information about new products and initiatives to establish close contacts with relevant authorities, associations and stakeholders in the sector as well as various online information and communication channels directly to the Hungarian public in order to inform or give advice about entry regulations, tourism infrastructure, accommodation providers, attractions and events.”

Choosing a holiday destination nearby

As for the outlook for the year 2023 concerning incoming tourism in Austria, Oskar Hinteregger is quite optimistic that the recovery of the tourism sector after the COVID-19 pandemic will continue at pace, despite the economic and political challenges the world is currently facing. “After all, the visitors from Asia, and China specifically, are no longer affected by travel bans and keen to restart their travel activities. Research by all the major international travel organizations and associations underline that the people – despite having less disposable income – will not abstain from taking holidays. This seems also be the case as far as our main European source markets, which account for well over 80% of our annual turnover, are concerned. Choosing a holiday destination in the vicinity remains a priority for the consumers in rather uncertain times.”

photo by DÁVID HARANGOZÓ

photo by GROSSGLOCKNER BERGBAHNEN TOURISTIK GMBH/PETER MAIER

photo by ÖSTERREICH WERBUNG/THECREATINGCLICK.COM

austrian focus

REDUCE YOUR COSTS WITH GREEN ENERGY!

HUNGARIAN SOLAR PANEL INSTALLATION SPECIALIST USING AUSTRIAN PRODUCTS

Since its foundation in late 2017, Napelem Szerelő Kft. [Solar Panel Installer Ltd.] of Szeged in SE Hungary has been helping to supply the Hungarian market with green energy with a steadily increasing performance, managing numerous subcontractors. The company, as Managing Director Rudolf Mészáros tells Diplomacy&Trade, is now expanding to Austria, where it will continue to offer the same high quality but at the more affordable Hungarian prices. At the same time, the firm is also looking to open up to other neighboring countries with products from Austrian manufacturers.

"We are electricians, we have been installing smart homes, industrial parks and household-sized solar systems for a long time. We have a long-term contract with the Austrian solar panel factory KIOTO SOLAR and with Energy 3000, a company that distributes renewable energy products, and within the framework of these contracts, we are installing household and industrial solar systems in Hungary and Austria. Now, we would like to develop a new profile and offer a market plan for privately owned shopping centers in Austria, showing how we can reduce their electricity consumption. Also, we want to work on the supply of solar panels to households," the managing director describes his company's activities briefly. He adds that a 50-kilowatt solar system can be installed, for example, on the roof of a shopping center in about a week, once the necessary permits have been obtained. "This is the construction itself, but we can be involved in the design and subsequent operation as well. All this also applies to private individuals in Austria, therefore, we not only build solar systems for industrial players, but also on a smaller scale – at the more favorable prices customary in Hungary." He also mentions that they are not only dealing with solar panels, but also with the installation of other products obtained from the aforementioned Austrian factory, such as systems that help to use the hot water produced by solar panels for domestic heating – all over Europe. "We would also like to see such complex solar heating systems installed primarily in Austria," he adds.

Overcoming difficulties in supply

In Hungary, the availability of solar panels and inverters, and the planning deadlines are currently a problem, but Rudolf Mészáros sees no such challenge in Austria. "We receive the solar panels to be installed from the two well-established companies I mentioned and install them with a guarantee.”

Solar power plants in the desired size

The managing director explains what the solar panel systems of different capacities that have been installed can provide enough energy for. "A 100-kilowatt solar power plant can supply, for example, the shopping center in Parndorf in north-western Austria, which is often visited by Hungarians, with enough electricity to power its daily operations during the summer months, with very little needed to buy from the grid. This is a very good performance for a system of that capacity. We believe that shopping centers should make better use of these positive ways of reducing overheads."

Another example is that of detached houses occupied by several generations and each room possibly heated separately by gas. "In such a case, if we install a solar system, for a house of 100 square meters with at least three rooms, a 20-kilowatt solar system can optimally offset the gas consumption completely, it can definitely save a lot of energy. We'll be able to replace the existing gas boiler with a heat pump, and the hot

water supply in the home will continue in the same way, but everything will run on electricity from then on, and it will cost, say, a third or half as much as it used to cost to heat it with gas," he adds.

It pays off

One of the most important factors in solar projects is the return on investment. Rudolf Mészáros explains that when calculating this, "we are not looking backward, but actually forward because the current outlook is that energy prices in the European Union will increase. I don't want to analyze the reasons for this but we can see that the forecasts are pointing in that direction. So, whatever figure I would give you now for the return, I will certainly have to give you a lower one next month, because prices will also increase from next month. Although, the Austrian government has granted support to the public to pay their utility bills, this will not be the case indefinitely. We hope that things will eventually return to normal, but there is no doubt that families will face increased utility bills – and we are offering a solution to reduce them and prevent emergency situations."

Increasing efficiency

Concerning solar panels, one can see news all the time that their efficiency has again improved. "There's steady progress in this field, just like in the case of mobile phones: the EU is producing better and better, more powerful and more durable devices. Countries, like Austria, where there are solar cell companies, are able to keep producing more and more powerful solar cells with new

chips, new cells. Not long ago, they were producing solar panels of 550 watts. We've hardly installed anything less than 400 watts lately, but now 555watt solar panels are being made, where the foil separating the top and bottom of the solar panel is transparent rather than black or white. This means that the cells can receive light energy from both sides and convert more of it into electricity. This increases the amount of electricity that can be generated from almost the same square meter of surface area," the Managing Director explains.

Own solar farm

Solar Panel Installer Ltd. not only designs and implements various solar projects, but also operates a solar park of its own in Tápé, a village near Szeged, where a 1-MW solar park is located next to the company's warehouse. Another 1-MW solar park is under construction at the same location and is expected to be inaugurated in the first quarter of 2023. "As electricity can be freely traded by owners throughout the European Union, we are also looking for plants in Austria that might want to get electricity cheaper than the local going price. My company also offers solutions for other private solar parks in Hungary that want to sell their electricity abroad, within the EU. This can be a great opportunity for factories that use a relatively large amount of electricity, such as steel mills, fertilizer factories, etc. So, we would like to offer a solution for them, and we’re looking for EU partners who want to buy electricity cheaper than the local price – especially in the long term!" Rudolf Mészáros concludes.

ENERGY SECURITY BIGGEST CHALLENGE FOR HUNGARY’S ECONOMIC OUTLOOK

GERMAN CHAMBER CALLS FOR THE EUROPEAN ECONOMY TO REMAIN COMPETITIVE

Hungary’s economic competitiveness to a very large extent hinges on the government’s ability to ensure energy security for the country, according to the German-Hungarian Chamber of Industry and Commerce. In addition to energy costs, the security of supply is also for crucial businesses operating in Hungary.

German foreign direct investment is a key engine of Hungary’s economy. German businesses make up the largest investor community in Hungary, accounting for 21% of the total foreign direct investment inflow, according to data published by the National Bank of Hungary. The German-Hungarian Chamber of Industry and Commerce (DUIHK), the body representing German investors in Hungary, celebrated the 30th anniversary of its founding in January. The number of founders underwent spectacular growth, jumping to 925 from 35 three decades ago. The bilateral exchange of goods reached a value of around EUR 66 billion euros last year - around 10% more than in 2021 and an impressive 15 times as much as in the year the Chamber was founded, according to the Chamber's estimates.

Energy: the main challenge

The Chamber sees the issue of energy as the greatest current challenge for the economy and one of the decisive factors for the long-term competitiveness of German and Hungarian companies. "It's not just about the cost of energy, but also about security of supply. The latter is crucial for the country's energy sovereignty and is in both the common European and national interest,” András Sávos, president of DUIHK said at an event celebrating the Chamber’s anniversary.

Hungary relies heavily on Russian oil and gas imports and the government has been scrambling recently to diversify its energy sources, striking deals with Azerbaijan and Turkey, among others. Hungary receives more than 80% of its gas supply and 65% of its oil supply from Russia. Under a 15-year deal signed last year, before the start of the war in neighboring Ukraine, Hungary receives 4.5 billion cubic metres (bcm) of gas per year via Bulgaria and Serbia under a long-term deal with Russia.

Recently appointed Energy Minister Csaba Lantos stressed that Hungary's energy bill has risen from EUR 7 billion to EUR 17 billion in the wake of the current crisis. This amount corresponds to almost 10% of Hungary's total economic output, according to Lantos. "The era of cheap energy is over," the minister said at the event. "The European Union's responses to the war, which we believe were wrong, have made the energy supply insecure and caused energy prices to rise at an unprecedented rate," Lantos added.

His remarks echo the official government stance that blames the European Union for mishandling the crisis by imposing sanctions on Russia.

Lantos noted that the energy market has changed completely and the question is no longer just at what price countries can get energy, but whether they have enough energy at all.

Lantos confirmed that the government will remain committed to nuclear energy. In addition to extending the service life of the existing Paks nuclear power plant, it is a key question to also build Paks II so that the base load of electricity can be generated domestically in a climate-neutral manner.

Multiple threats

The President of the Chamber emphasized that energy is not the only risk for companies. Existing tensions have not eased: the vulnerability of international supply chains, the shortage of skilled workers and regulatory requirements in connection with climate policy goals continue to represent enormous burdens. It is therefore particularly important that economic players can rely on a predictable, stable and growth-friendly economic policy and regulatory environment, warned Sávos.

DUIHK welcomes the HUF 700 billion "re-industrialization loan program" just announced by the government, which will help boost private investment in times of rising costs and high interest rates.

The President noted that the Chamber supports all government measures aimed at facilitate an agreement with the EU to ensure that EU funds are extended to Hungary.

"We are convinced that regardless of different perspectives on the world and current events, our common aspiration and interest must be that the European economy, including Hungary and Germany, remains competitive in the long term, and that the fruits of economic prosperity benefit society as a whole."

L E A K S

witty leaks

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

FROMBALATONWINEWEEKS TOKALOCSAPEPPERS

ISRAELI DIPLOMAT RECALLS VISITING SOME FAVORITE PLACES IN HUNGARY

BY THE AMBASSADOR

Becoming a diplomat has been my dream since my early youth. Learning about other countries, cultures, and peoples, communicating with them in their languages and serving my country at the same time have always attracted me very much. Diplomacy to me is not only my work but also the way of life, my hobby and passion. One of the most important pillars of diplomacy is the continuous building of relationships. In essence, knowledge of the country will decide the quality of the time spent there. After handing over my credentials, I thought it was important to get to know the more famous places all over Hungary. Tourism has been seriously hit by COVID-19, although the numbers are still relatively low in proportion to the population. It is the tourism industry that has particularly been suffering from the negative impacts of the pandemic, the sector that gives about 7% of the country’s GDP.

Balatonfüred and Debrecen

There are many beautiful cities around Lake Balaton, and I visited

Balatonfüred. According to the locals, swimming and hiking at Tamás Hill are the most common programs, although I had a hard time believing this because the streets are completely empty. My wife and I enjoyed the sunshine while walking along the beautiful Tagore Promenade. The latter is very popular because every year in August, the Wine Weeks are held here, where the best wineries are represented. The Synagogue of Balatonfüred is one of the oldest buildings in the town, it was a Catholic church in the 13th century, then a Reformed one in the 18th century. In the middle of the nineteenth century, the building was purchased by the then growing Jewish community. The second most populous settlement in Hungary, Debrecen was my second

destination, where spectacular fountains and sunbathing benches adorn the terrain. The impact of the pandemic was also noticeable here, as there were few people in the main square and the otherwise bustling restaurants were empty.

Kalocsa peppers and the town of waters

An extremely interesting place for us was Kalocsa, where, in addition to the Archbishop's Palace, embroidery and local peppers attract attention. Tata is considered the town of waters, which is also one of Hungary's most romantic places. The fabulous lake here and the promenade next to it already look delightful in themselves, but the nearby water castle, the mills and the Eszterházy Castle also add a lot.

A country popular with Israeli tourists

It is quite amazing (that a country with such a smaller area) can have so much natural resources. Frankly, it was extremely difficult to arrive in a country where life seemed almost to cease, however, in my heart a new life waited to be alive here in Hungary. Today, pandemic hopefully is over or at least it was pushed to the margins

of our daily life. There are other crises now that all of Europe are undergoing, but at least it seems that the crisis in the tourist industry is almost over. From an Israeli point of view, Hebrew is frequently heard all over Budapest symbolizing the scores of Israeli tourists, who started to renew their visits to this lovely and exciting place. Five-to-seven daily flights hardly have a free seat available.

OF ISRAEL, YACOV-DAVID HADAS HANDELSMAN TATA

BALATONFÜRED

Anyone who knows anything about film knows that Paramount Pictures is one of the ‘Big Six’ studios in US filmmaking. But what most don’t know is that Paramount Pictures, one of the world’s first film studios, wouldn’t exist today without the revolutionary ideas of its Hungarian founder, Adolph Zukor.

FROM RICSE TO HOLLYWOOD AND BACK

Born on January 7, 1873 in the small town of Ricse in NE Hungary, Adolph Zukor’s is a real rags-to-riches story of the American dream. At the age of 7, he moved to the nearby city of Mátészalka, where he spent his formative years and finished his studies before emigrating to the U.S. at 15 with, legend says, only USD 25 cash in his pocket. Adolph Zukor first worked as a cleaner, then apprenticed at a furrier. In time, he became co-owner of the Novelty Fur Company. Throughout the years, he invested in various theaters and he eventually began to work with famous actors to produce feature films. He then founded Paramount Pictures in 1912 with two of his partners.

‘Father of the feature film’

Adolph Zukor has tangible signs of his success in the country he adopted as his new home. Having played a major part in Hollywood film history, he has a star on the Hollywood Walk of Fame. Often called the ‘father of the feature film in America,” he also received an Honorary Award in 1949 from the Academy Awards for ”his services to the industry over a period of forty years.”

Adolph

Zukor Memorial House

The Hungarian-American film pioneer never forgot his roots. In the 1920s, he regularly sent care packages and money back to Hungary to those who asked for his help in handwritten letters. He supported the development and urban planning of his hometown by financing the building of a school and a well, the renovation of a church and several other important public buildings among the many projects he has done to better his birthplace. Not surprisingly, Zukor’s memory is highly cherished in his hometown, where he has a cult following of people taking pride in the fact that he hails from their town. To further conserve his legacy, the Municipality of Ricse and the Hungarian Hollywood Council celebrated the 150th anniversary of Zukor’s birth with the inauguration of the Adolph Zukor Memorial House of Ricse on January 7, 2023. The Memorial House is located in the building where Zukor was born. The President and CEO of Paramount Pictures, Brian Robbins, sent an official greeting to the participants. The President of the Hungarian Hollywood Council, Balázs Bokor expressed his conviction that Zukor – at last – received proper recognition in Hungary with a world-class memorial house Ricse and the whole country can be proud of.

PICTURED FROM LEFT TO RIGHT ARE THE PRESIDENT OF THE HUNGARIAN HOLLYWOOD COUNCIL, BALÁZS BOKOR; THE CEO OF ORIGO FILM GROUP PLC., MÁRTA HORVÁTHNÉ DR. FEKSZI; RICSE MAYOR ISTVÁN VÉCSI AND

A MEMBER OF THE HUNGARIAN HOLLYWOOD COUNCIL, GYÖRGY MÁTSIK.

HUNGARIAN “FATHER OF FEATURE FILM” TO CELEBRATE 150 TH ANNIVERSARY

BARTÓK SPRING

MARCH 31 – APRIL 16, MÜPA PALACE OF ARTS, BUDAPEST

Launched in the spring of 2021, on the 140th anniversary of the birth of the world famous Hungarian composer, Béla Bartók, the Bartók Spring International Arts Weeks is a unique event series dedicated to the arts. While offering insights into his fascinating oeuvre, the festival does not restrict itself to the work of the composer, and seeks instead to represent Bartók’s spirit, creativity and outlook in countless genres, from contemporary classical music through world music, jazz and dance to visual art and pop music – the creations of the best international and Hungarian artists. The event series seeks, in cooperation with Hungarian and European partner institutions, to make Hungary an even more attractive destination for cultural tourism in the coming years. Presented by Müpa Budapest, the Bartók Spring is hoped to gradually grow into a national, even regional, event series, which engages other major institutions of culture and cities to offer a program that is as rich and colorful as possible.

One spectacular event promises to be by one of the most passionate flamenco dancers of our time, Sara Baras who will pit up a blood-pumping performance, the organizers say. With her sumptuous costumes, the pulsating rhythms of flamenco and the overwhelming power of live music, Alma (Soul) invites audiences to a thrilling encounter with the 'Queen of Flamenco'. mupa.hu

MÜPA 2023: RETURNING WORLD STARS

JANUARY-FEBRUARY

MÜPA PALACE OF ARTS, BUDAPEST

The great lady of fado, Mariza, and the grand master of Balkan virtuosity, Goran Bregović, will return to Müpa in the first months of 2023, but Zoli Beck and Krisztián Grecsó will also present their new albums here, as will László Kollár-Klemencz, while Hungarian jazz legend Attila László will celebrate his round jubilee with the audience. One of the outstanding performers is László Kollár-Klemencz, who works consciously in the fields of literature and music, founded a chamber orchestra to highlight his more melancholic side, with three further albums also recorded. Folyó [‘River’] is the Kollár-Klemencz Chamber Orchestra's fifth album, and is a conscious continuation of their work, with each record going to new depths in every sense. For this presentation of the new album, the audience will see a mature group - both in modern and classical music - taking to the stage: classical music, folk music and world music performers that over the years have become fully adapted to the constant alterations of the band leader, who is forever seeking out new paths. mupa.hu

$UICIDEBOY$

MARCH 23, MVM DOME, BUDAPEST New Orleans rap duo $uicideboy$ announced last year that their highly-successful Grey Day Tour would be coming to Europe to play 15 dates across nine countries in 2023. G59 Records artists Germ, Shakewell, Chetta and US Grey Day Tour opener Ski Mask The Slump God will be on the line-up as support acts. $uicideboy$ were reported to have a stellar 2022 as the 27th most-streamed artist of the year across all genres, according to HITS MAGAZINE, beating other rappers on the list including Jack Harlow, Tyler the Creator and Travis Scott. Additionally, their 2022 single ‘Matte Black’ was at the top spot of Spotify’s US Top Groups of 2022 playlist, a collection of the most-streamed artists on the platform this year. The tour announcement came alongside a final release of their three-part collaborative EP with Germ DIRTIESTNASTIEST$UICIDE, a seven-song collection of all new music produced entirely by $uicideboy$ member $crim. livenation.hu

DEPECHE MODE

JULY 28, BUDAPEST ARENA

Rock & Roll Hall of Fame Class of 2020 inductees Depeche Mode announced that they will be releasing a new album and embarking on a world tour in 2023. The Memento Mori Tour will support the band’s forthcoming 15th studio album, Memento Mori, due out in Spring 2023.

In a break from tradition, the tour will begin with a special, limited series of North American arena dates starting March 23rd, before the band heads to Europe for their summer stadium tour from May 16th. The Memento Mori Tour will be Depeche Mode’s 19th tour and their first in over five years. The band’s most recent outing, the 2017-2018 Global Spirit Tour was its longest to date and was one of the year’s highest grossing tours, with the band playing to more than 3 million fans over the course of 130 shows across Europe and North America. Having sold more than 100 million records and played to more than 35 million fans worldwide, Depeche Mode remains an ever-evolving and singularly influential musical force, which continues to forge ahead, with the Memento Mori album and tour representing the opening of the newest chapter of a peerless and ongoing legacy. livenation.hu

A WINE FOR SPECIAL CELEBRATIONS

NEW VINTAGE OF DISZNÓKŐ’S TOP ASZÚ DEBUTS IN PARIS AND BUDAPEST

In 2022, Disznókő Estate in the Tokaj wine region in northeastern Hungary celebrated its 30th anniversary. To commemorate the dream brought to life by Axa Millésimes and the winery's achievements to date, they have created a wine that best showcases the unparalleled potential of this exceptional site, while also being the perfect expression of the quality and style of the winery, characterized by a strong mineral character and dazzling freshness.

The one from 2017 is the fifth vintage of ‘Disznókő Kapi Vineyard Tokaji 6 Puttonyos Aszú’, a wine made only in exceptional years and released in limited quantities. The ‘Kapi Vineyard’ is a premier grand cru vineyard located in the upper third of the southern-facing Kapi vineyard of Disznókő, at an altitude of 150-180 meters above sea level with great potential to produce exquisite aszú grapes. The wines coming from this vineyard are characterized by a lively palate, moderate sugar levels, relatively high acidity, and a spicy, mineral finish.

For special celebrations

The Disznókő Kapi Vineyard 6 Puttonyos Tokaji Aszú is made only in vintages when the quality of the grapes is outstanding, and the shriveled berries harvested in this vineyard produce an exceptionally clean, structured, fresh, long aszú. No wonder that Kapi is widely

considered as a wine for special celebrations. Made exclusively from the finest Furmint aszú grapes and base must, this wine is characterized by a telltale golden color and a nose reminiscent of white flowers, acacia and tropical fruits. The palate is vibrant and rich, at once lively and silky, concentrated and airy. It is a creamy and full-bodied wine, with a great structure and an exciting, spicy finish.

International debut in Paris

The international debut of the Disznókő Kapi Vineyard 6 Puttonyos Tokaji Aszú 2017 took place at the end of 2022 at the Michelinstarred restaurant Divellec in Paris, as part of a wine tasting lunch. The domestic launch took place in the Queen Elisabeth Ballroom of the Gundel Palace, where not only the ‘Disznókő Kapi Vineyard 6 Puttonyos Tokaji Aszú 2017’ was presented, but also the VPTS 2017, the successor to the discontinued Aszú Eszencia.

gastronomy

BOCUSE D'OR WORLD BRONZE FOR HUNGARY

THE HUNGARIAN TEAM MADE IT TO THE PODIUM FOR THE FIRST TIME

Hungary has finished third at the world's most prestigious chef championship, the biannual Bocuse d'Or (Concours mondial de la cuisine) in Lyon, France, behind winners Denmark and runners-up Norway. The 24 members of the Jury gave their verdict after five and a half hours of tests, rewarding technique, product presentation and non-waste.

A milestone in Hungarian gastronomy

The Hungarian team has competed in the world finals several times before, but this is the first time they have made it to the podium. Hungary qualified for the world final of 24 teams when they won a silver medal at the European finals of the Bocuse D'Or competition in Budapest in March last year.

"This is a huge milestone not only in the history of the Hungarian Bocuse d'Or competition, but in the history of Hungarian gastronomy as a whole. Many, many years of experience, a lot of work, sacrifice and cooperation are behind this result. This bronze statue is further proof that Hungary has its place on the world gastronomic map," the President of the Hungarian Bocuse d'Or Academy, Zoltán Hamvas, said in his evaluation of the result.

Appreciated children’s menu

All the candidates had to highlight monkfish for the platter test, and sublimate squash during the new ‘Feed the Kids’ test, aimed at promoting education on eating well among the younger generations. After the serving and the first bites, the jury members were satisfied with the Hungarian dishes. The children's menu dishes were particularly appreciated for the creativity and playfulness that Bence Dalnoki and Patrik Nyikos had put into the dishes.

“It's a great happiness, I can't find the words. We really wanted to be on the podium, we worked so hard for it, it's an incredible pleasure to hold the bronze statue in our hands, it's going to take some getting used to!" Bence Dalnoki said.

Inspiring future generations

It was after two days of high-level competition that the victory of Denmark, represented by Brian Mark Hansen and his commis Elisabeth Madsen, closed the 19th Grand Final of the Bocuse d’Or, thus succeeding the Bocuse d’Or 2021 winner French Davy Tissot. The team from Norway, composed of the chef Filip August Bendi and his commis Leon Haarberg Nilsen came second and won the Bocuse d’Argent, while Bence Dalnoki and his commis Patrik Nyikos from Hungary completed the podium. As for the special prizes, the one for social commitment went to the Mexican team, Norway won the best commis (assistant) prize, Sweden was awarded for the best fish bowl, the best plate theme went to the French team while Japan was the favorite of the children's jury. Bocuse d'Or – held in the framework of the international hotel catering & food trade exhibition SIRHA – is not only the world's most prestigious cooking competition but also an international gastronomic meeting. The previous competition was blighted by the new coronavirus pandemic but this year, the Lyon event was back to its former glory. Hungary has been participating in the competition since 1987. Before this year's event, the country's greatest success was achieved in 2016-17 when Tamás Széll won the European final in Budapest and finished fourth in Lyon.

“An innovative and inspiring edition for future generations!” Bocuse d’Or President Jérôme Bocuse attested. “The ‘Feed the Kids’ test is the perfect expression of the importance of introducing young people to eating well and thus carrying the values of tomorrow’s chefs,” he added.

“I came here in all humility, to be inspired by those chefs,” the Honorary President of this year’s edition of the Bocuse d’Or, Dominique Crenn explained. “I loved that there were so many countries, so many different cultures, and they all told us their story, not the one of others. The children who watched the Bocuse d’Or can now say to themselves, I can also be there, I also have a story to tell.”

DISHES PREPARED BY THE HUNGARIAN TEAM

‘Feed the Kids’ theme

• Cold squash soup, crunchy cucumber stuffed with squash and parsley.

• Oat cream & green peas marinated in barbecue oil.

Crispy squash ‘Halloween’

• Pan fried egg flan with mushrooms and onions, pickled squash, lemon thyme & creamy egg yolk.

• Matured softly smoked Hungarian cheese sauce with squash & squash seed oil.

An apple a day keeps the doctor away!

• Vanilla yoghurt mousse filled with squash, apple, raspberry and squash sponge cake.

• Crunchy ‘earth’ with exploding candy, chocolate, hazelnuts & lemon verbena.

Monkfish, St. James clams & black mussels

• Devilfish ‘Budapest’ with softly smoked St. James clams, black seaweed, lemon & leavened bread croutons.

• Pickled root vegetable ‘roses’, mashed potatoes, bear's weed, fresh herbs & aged cheese.

• Salt roasted beets stuffed with slow roasted onions, Tokaji must vinegar jelly, black pepper & thyme.

• Crispy Jerusalem artichoke chips.

‘Hungarian feast’

• Seasonal Hungarian vegetables from the forest and fields.

• Black mussel tortellini with beechwood-smoked paprika.

• Black mussel sauce, tender horseradish & turmeric.

• Sauce: monkfish sauce fried in browned butter & Tokaj champagne and Tokaj must vinegar with ‘caviar’.