Diplomacy&Trade 2024-02

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SEE INTERVIEW ON page 07

IN AN EXCLUSIVE INTERVIEW, SWISS CONFEDERATION PRESIDENT VIOLA AMHERD TELLS DIPLOMACY&TRADE ABOUT SWITZERLAND’S STANCE ON THE UKRAINE CONFLICT, ENERGY POLICY, MIGRATION, AND INTERNATIONAL RELATIONS.

Japan

With over 180 Japanese companies having established operations in Hungary and generating more than 30,000 jobs here, Japan is the 7th biggest foreign investor in Hungary. In an extensive interview with Diplomacy&Trade, Japanese Ambassador Hikariko Ono says she is honored to acknowledge Japan's long-standing economic partnership with Hungary and works on further strengthening bilateral ties and promoting mutual understanding.

An

One of Spain's, and the world's, most famous chefs, Dani García, will soon be adding two restaurants in Budapest to his international portfolio of 20 restaurants under 12 brands. The building, which also includes the Dorothea Hotel, operated by the Marriott Group's premium brand Autograph Collection, will be home to the local BiBo and Alelí Budapest, which opened on May 15.

letter from the publisher

"The road towards a comprehensive, just, and lasting peace will be long and difficult, and success is not guaranteed." This profound observation by Viola Amherd, President of the Swiss Confederation, encapsulates the immense challenge her nation faces in organizing a peace conference aimed at ending the conflict in Ukraine. During her recent visit to Hungary, President Amherd also addressed critical issues like energy security in Europe, which has been significantly impacted by Russia's invasion of Ukraine. Ensuring a secure energy supply remains her country's top priority. Furthermore, she emphasized the need for collective strategies to tackle the pressing migration problem.

In this issue, we shine a spotlight on the robust economic ties between Hungary and Japan. With around 180 Japanese companies employing over 30,000 people, Japan stands as Hungary's 7th largest investor community. Our special Focus section includes an insightful interview with Hikariko Ono, the new Japanese ambassador to Hungary, highlighting bilateral economic, scientific, and technological relations. Additionally, we feature the Japanese External Trade Organization (JETRO) and the Japanese-Hungarian Business Club, and explore cultural connections with insights from the Budapest office of the Japan Foundation.

Sustainability remains a key topic for Diplomacy&Trade. This edition features Sonja van Lieshout, President of the World Employment Confederation Europe, who discusses the crucial dialogues needed within the labor market to advance sustainability, skills development, training and social protection.

In our WittyLeaks column, the Colombian ambassador shares his experiences in Hungary, noting the commonalities between Hungary and Colombia, such as a passion for football, friendly people and a love for good food.

On our cultural page, we feature an interview with a talented Filipino singer known for performing in both male and female voices. In the gastronomy section, we celebrate the culinary genius of Dani Garcia, one of Spain's and the world's most renowned chefs, who has recently opened a new restaurant in Budapest.

Thank you for joining us in exploring these diverse and enriching topics. We hope you find this issue engaging and informative.

Peter Freed PUBLISHER

PUBLISHER: Peter Freed PHOTO EDITOR: Dávid Harangozó

SALES & MARKETING DIRECTOR: Tamás Varga ADMINISTRATION: Blanka Szalontai

CONTRIBUTORS: Edith Balázs, Sándor Laczkó, Tamás Magyarics, Ignacio Enrique Ruiz Perea

PHOTO CONTRIBUTORS: Dávid Harangozó (cover), Bence Hegedűs/4K Media Studio (cover), hungary.representation.ec.europa.eu, eudiversity2023.eu, sameday.hu, Budapest Airport/Róbert Baranyi, depositphotos.com, schaeffler.hu, BMW Group, zalazone.hu, Bridgestone, Budapest Automotive Summit, Honda, Spago by Wolfgang Puck Budapest, Liszt Fest, Hungarian Money Museum and Visitor Centre, Live Nation, Károly Horváth, BCSDH, Embassy of Colombia, Bence Hegedűs/4K Media Studio, Dreher Breweries, MTI Photos: Péter Lakatos, MTI/National Film Institute/Claire Lebeau, Tibor Illyés, Szilárd Koszticsák

cont en ts

03 ON THE RECORD 04-05 COMPANY BRIEFS

06 ANALYSIS

United Kingdom: after and before elections

07 DIPLOMACY

Swiss president visits Budapest 08-22 JAPANESE FOCUS

Interview with Ambassador Hikariko Ono; Hungarian-Japanese Economic Club; JETRO; Asahi Dreher; Bridgestone; Takenaka; The Japan Foundation; Toyota; Japanese Culinary Maestro in Budapest; Honda; HungaryJapan 2024

24 AUTOMOTIVE

Challenges for the Hungarian automotive industry and trade

26 SUSTAINABILITY

The need for cherishing talents and human-centric approach

28 CULTURE

Filipino singer Marcelito Pomoy

29 WITTYLEAKS by the Ambassador of Colombia

30 GASTRONOMY

Spanish chef Dani García

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

ITALAN FOCUS – COMING SOON

Diplomacy&Trade is to present a special focus on Italy, which is the second most important target of Hungarian exports after Germany. Bilateral trade was record high last year, exceeding EUR 8 billion. Italy is among the ten largest investors in Hungary. Cooperation has also been increasing lately in the defense industry with a growing number of joint investment projects. The development of energy cooperation could be widened with a possible natural gas supply corridor via Slovenia.

Those will be some of the topics discussed – in addition to various aspects of bilateral relations – in an extensive interview with the Italian ambassador to Hungary, Manuel Jacoangeli. We also present the activities of the Italian trade agency ICE and the Italian cultural institute here. Of course, the compilation will feature a number of companies of Italian origin present in Hungary.

A man of unique talent from the Philippines page 28
Reaching out to the relevant parties on the labor market page 26 A trend-turning year in automotive? page 24

EUROPEDAY CELEBRATESHUNGARY’S 20-YEAREUMEMBERSHIP

Free concerts, the traditional Europe Day running race, quizzes and civic programs attracted thousands of visitors this May to Budapest's downtown Szabadság Square, where the focus was on the 20th anniversary of Hungary's EU accession and the EP elections. The Europe Day events were organized by the European Commission Representation in Hungary and the European Parliament Liaison Office in Hungary.

It was recalled that following a referendum on accessing the European Union, held on April 12, 2003, Hungary –along with nine other countries – joined the EU twenty years ago, on May 1, 2004.

At the referendum, which had a turnout of 45.6%, 83.8% of the voters cast their ballots in favor of EU membership and polls still suggest that today, the majority of Hungarians are in favor of EU membership.

Prime Minister Péter Medgyessy announced the referendum result at a celebration on the banks of the Danube by saying that "allow me to officially announce that the Hungarian republic will be a member of the European Union". The European Commission welcomed the result as marking the end of Hungary's "tragic separation from the European family of democratic nations."

The official act of the ten countries (Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia) accessing the European Union was celebrated at the residence of the Irish President in Dublin as it took place during the Irish Presidency of the EU. Hungary submitted a membership application to the EU ten years before, on March 31, 1994 and negotiations on entry began in 1998. At a summit in Copenhagen in December 2002, Hungary was one of ten countries invited to join the EU in 2004.

MARCHOFTHELIVING HELDINBUDAPEST

The annual March of the Living event was held in Budapest on May 5. The procession set off to the sound of the shofar, led by almost a hundred Holocaust survivors travelling in electric vans. Participants in the 20th annual walk-in memory of the victims of the Holocaust marched from the Dohány Street Synagogue to the main entrance of Keleti Railway Station where a stage was set up for the speakers of the event.

In his speech, Israel's Ambassador to Budapest, Yaakov Hadassah-Handelsman, warned that Hamas's October 7 terrorist attack on Israel would add more meaning to this year's March of the Living. "It is now even more important to educate the young generations and inspire them to fight racism, discrimination and injustice," he added.

He thanked the Hungarian government for its support, stressing that Hungary is a role model in implementing a zero-tolerance policy against anti-Semitism.

Gábor Gordon, Chairman of the Board of Trustees of the March of the Living Foundation, said that the terrible horrors of the Holocaust, one of the greatest genocides of mankind, must

on the record

always be remembered, but also "in a way that celebrates the love of life and the will to live."

He especially welcomed the Holocaust survivors who took part in the commemoration, whom he described as the real VIP guests of the event, who, he said, had overcome death by their will to live.

At the beginning of the event, a plaque was unveiled on Herzl Tivadar Square in front of the Dohány Street Synagogue "in memory of the 440,000 Hungarian Jews deported and murdered between May 15 and July 9, 1944."

EUDIVERSITYMONTH MARKEDINHUNGARY

Every May, the EU Diversity Month aims to promote fair workplaces in order to create a society and economy based on equal opportunities as much as possible. As the exclusive representative of the EU Diversity Charter in Hungary, the Hungarian Business Leaders Forum (HBLF) participated, for the 7th time, in the largest joint EU project to date, in collaboration with high-level domestic companies and organizations.

Joining HBLF were companies and organizations such as Abacus Medicine Hungary, AMC Networks Central Europe Ltd., Budapest Festival Orchestra, Danone Ltd., E.ON Hungária Plc., ESAB Ltd., Hegymegi-Barakonyi and Fehérváry Baker & McKenzie Law Firm, Henkel Hungary, Jobsgarden Ltd., KPMG Hungary, Legrand Plc., Magyar Telekom, MVÜK Plc., Tesco Hungary, Women in Energy Association and Yettel Hungary.

Due to the acceleration of digitalization, automation, increased care needs, demographic changes, and geographically dispersed employees, the world of work is being transformed significantly, which can represent a serious threat, but can also be shaped into an opportunity. The 2024 European Diversity Month therefore focused on how organizations take advantage of the future of work and adapt to a constantly changing world.

Almost USD one billion were spent by international movie productions in Hungary last year, quadrupling the amount spent in 2018, it was revealed at a panel discussion at

the 77th Cannes International Film Festival. After the event held with the participation of producers Ildikó Kemény, Robert Lantos and Mike Goodridge on Friday on the challenges facing Hungary's fast-growing film industry, Csaba Káel, the government commissioner responsible for the development of the Hungarian national film industry, told MTI that after joining the European Union, Hungary was the first Central and Eastern European country 20 years ago to launch a tax refund system for film production. This also generates significant tax revenue for Hungary, as well as a very significant advertising and promotional impact for the country, as many star productions are returning, he added. In his opinion, the rapid growth is partly due to the fact that when the coronavirus epidemic stopped many shootings in Hollywood, Hungary developed a regulatory system that allowed certain film works to continue during the epidemic. This allowed the super-production ‘Dune’ to resume filming in Hungary at a time when it was not yet possible to film in the United States, and this led to the withdrawal of many big-budget films to Hungary.

The development of the Hungarian film laboratory has also started, which is important because there are hardly any places in Europe where film material is produced.

Hungary has also started to expand its capacity by increasing the number of productions, and as part of the economic development tenders after the coronavirus epidemic, studio development has begun: this year, four new studios will be completed in Fót, just northeast of Budapest, covering an area of 10,000 square meters. In total, studio capacity in Hungary will increase by 22%, he said.

BUDAPESTTOHOST2026UEFA CHAMPIONSLEAGUEFINAL

The 2026 UEFA Champions League final will be held in the Puskás Arena in the Hungarian capital, the European Football Association (UEFA) executive committee announced at its session in Dublin on May 22. Hungary will host club football's most prestigious match for

the first time in its history. In the past, the UEFA CL final venues included 32 stadiums in 28 cities in 15 countries. The Puskás Arena, inaugurated in 2019, will host the third European cup final after the 2020 Super Cup and last year's Europa League final. Sándor Csányi, President of the Hungarian Football Association (MLSZ), was of the view following the announcement that UEFA's decision was recognition of the Hungarian Football Association's previous work.

According to the President, the European body appreciated the fact that the Hungarian FA had demonstrated its ability in organizing events of increasing interest step by step in recent years.

"After the women's European League final, the European age-group championships, the Super Cup in 2020, the European Championship in 2021 and last year's Europa League final were all successful. The Puskás Arena and the support the government provides for UEFA events played a big role in this. By staging the most prestigious club football match in Budapest, MLSZ is achieving another of its strategic objectives. This is important because the hosting of the UEFA Champions League final will also contribute to the continued development of football in Hungary and to its popularity," he said.

company briefs

AIRPORT DEVELOPMENTS EXCEED HUF 130 BN IN BUDAPEST

Budapest Airport, the operator of Ferenc Liszt International Airport in the Hungarian capital, launched a major development program in spring 2019, and over the past five years, the value of airport developments has exceeded HUF 130 billion, the company says in a statement.

This spring, a new series of investments worth HUF 17 billion was launched, as part of which Terminal 1, which is under historical monument protection, will be refurbished and will also include several infrastructure, capacity and quality improvement investments related to Terminal 2. Budapest Airport aims to further improve the high quality of its services in the long term, achieved with steadily increasing passenger traffic.

The airport operator handled more than 3.4 million passengers in the first quarter of 2024, 10.2% more than in the record year before the pandemic. The steady upturn means that annual passenger traffic is expected this year to exceed the 16.2 million figure recorded in 2019 and could surpass 30 million by 2030. Budapest Airport says it has been continuously developing the quality of airport services and the passenger experience for years with May this year seeing the beginning of several large-scale construction works at the airport, facilitating expansion and the high-quality services of the continuously growing passenger traffic in the long term. The operator remains committed to developing the airport, as it has demonstrated in recent years, helping the airport to remain the best in the region and also become one of the best in Europe.

The next phase of the renewal of the baggage reclaim hall on the A side of Terminal 2 will soon be completed. In addition to the two

ROMANIAN COURIER SERVICE FURTHER EXPANDS IN HUNGARY

The Romanian-based Sameday courier service, which operates easybox parcel machines, may expand its home delivery infrastructure in Hungary by 60% with the acquisition of its Hungarian counterpart Sprinter, which operates Pick Pack Points. Following the regulatory approval of the acquisition, the number of pick-up points operated by the company could rise to 6,000 in its operating area in Romania, Bulgaria and Hungary. The price of the deal was not disclosed.

Sprinter's more than 450 domestic Pick Pack Points, which have been present on the market for more than 25 years, as well as the courier company's door-to-door delivery capacity, will also strengthen the new owner's operations, the statement said. Sprinter's employees and subcontractors will be able to continue their activities within the company, and customers will continue to benefit from the

new, significantly lengthened belts handed over in the previous phase, two new carousels, longer and more modern than the old ones are now being installed as long haul flights continue to return and exceed pre-pandemic levels.

SPAR'S SALES UP BY MORE THAN 15%

The retail company Spar Hungary achieved gross sales of HUF 1,023.2 billion in 2023, 15.8% more than in the previous year, while the volume of products sold declined by about 4% year-on-year last year, the company's President and CEO, Gabriella Heiszler has said at the company's annual press conference in Budapest.

She pointed out that Spar Hungary closed 2023 with a loss similar to the previous year.

The company paid almost HUF 30 billion in special tax last year. Without that tax, levied by the government on retail businesses, it would have closed the year with a profit, she added. Spar Hungary operated 641 stores at the end of 2023, 273 of which were franchises. The number of employees was around 14,000, with almost 4,000 more working in the franchise network's stores. Last year, HUF 22 billion was spent on investments, less than in the previous year, the CEO said.

The company opened five new stores and rebuilt four in 2023, with the number of renovated stores being the main reason for the low number, according to Gabriella Heiszler. The CEO said that tax legislation, especially the special tax, is forcing the company to rethink what it spends on.

The company's franchise network expanded by 25 stores in 2023, with a total turnover of HUF 134.5 billion. A range of

more than 16,000 products is available in Spar stores. Spar Hungary's own-brand sales rose by 19.3% last year compared to the previous year, while sales volume in this category also increased by 3.8%. Own-brand goods accounted for a third of Spar's total sales last year.

Regarding possible government legal action against Spar, reported in the press, the CEO said that they had not received any official notification but stressed that they were working to end the conflict. When asked about Spar's possible exit from Hungary, Gabriella Heiszler said it was up to the owner to decide, but she did not expect the company to leave the country.

services they were used to as well as the new services following the acquisition. Founded in 2007, Sameday has been present in Hungary since 2020 with almost 400 employees and partners. It operates more than 700 easybox parcel machines in Hungary and more than 5,000 in the region, making it the market leader in the region.

According to the information, by the end of the year, Sameday's network of collection points in Hungary will consist of around 2,200 easybox machines and traditional collection points, covering all major cities and regions.

Lucian Baltaru, CEO of Sameday Group, said in the statement that the company will continue its expansion by increasing the number of easyboxes and traditional points of business, as well as by introducing new shop-in-shop systems, thus supporting the further development of online commerce in the region.

With an investment of more than HUF 5 billion, Schaeffler Savaria Ltd., a manufacturer of automotive components, has upgraded its site with a logistics hall with a floor area of 6,200 square meters and an office building with a floor area of 2,200 square meters in Szombathely, W Hungary, the company told MTI. The new facility includes meeting rooms, dressing rooms and a conference center suitable for international events; the Schaeffler European Works Council recently held its meeting here with 60 participants from 15 countries, the company said in a statement. The logistics center is equipped with state-of-the-art technology, the warehouse system is easily accessible and the products stored there can be moved quickly.

Schaeffler Savaria Ltd. has two plants, two research and development centers and now they have handed over a strategically important logistics center and office building.

The first plant of Schaeffler's Szombathely site has been continuously developing since its foundation in 1997, and in 2019, they added a 3,000-square-meter hall building, including an arch spring production unit, classrooms and a measuring room, the company said in a statement.

Following a greenfield investment worth more than HUF 23.5 billion (including state subsidy of HUF 5 billion), Schaeffler completed by September 2021 its new 15,000-square-meter production hall in Szombathely to manufacture components for electromobility.

Schaeffler has two factories in Hungary – in Szombathely and Debrecen –, a sales center in Budapest and a research and development center also in Szombathely.

The company employs almost 5,000 people in Hungary, including more than 3,000 in Szombathely, making it the largest employer in the region.

According to publicly available data, Schaeffler Savaria Ltd. achieved net sales of HUF 333.944 billion in 2022, up from HUF 274.715 billion in the previous year.

company briefs

BMW ELECTRIC ROADSHOW IN HUNGARY

Nearly three hundred customers of the BMW Group Hungary has had the opportunity to get to know the Bavarian premium manufacturer's pure electric models during the 100% Charged - BMW Electric Tour. The nationwide roadshow, organized in cooperation with BMW dealerships, was led by professional instructors Csaba Walter and his team, and was attended by several BMW brand ambassadors this spring.

Ten Hungarian BMW dealerships organized a two-week test drive of BMW's pure electric models across the country for the Bavarian premium manufacturer's key customers. The BMW i5 M60, the BMW i5 eDrive40 and the BMW iX M60 were regular guests of the roadshow.

The roadshow participants in the various cities offered a complex program of activities for the guests. The customers of the Bavarian premium manufacturer started the day with a presentation by Péter Tóth, Electromobility Manager of BMW Group Hungary, followed by a test drive with the help of Csaba Walter and his instructors to get to know BMW's pure electric models. The list of models to be tested was extended by the individual dealerships, so that guests could also experience the driving experience offered by the BMW iX1, BMW iX3 and BMW i4 models at some of the roadshow stops.

There is no Europe – and there is no Hungary either – without industry, and Mol believes that it can only remain strong with a sovereign and competitive industry, the CEO of the petrochemical Mol Group, Zsolt Hernádi said at the inauguration of the Mol Polyol Complex in Tiszaújváros, NE Hungary this May.

He added that the completed project, which was realized with a total investment of EUR 1.3 billion, is the largest organic investment in the history of the group. The Hungarian government had supported the investment with a grant of around EUR 131 million and a corporate tax credit.

The CEO was of the view that the Mol Polyol Complex opens a new chapter in the chemical industry of the whole region, as a high-tech, automated group of plants, the Hungarian chemical industry has been "put on the world map of the chemical industry".

He stressed that the Mol Group would be the first company in the region to "hold the value chain of plastics production in one hand", from crude oil extraction to polyol production, thus strengthening the country's sovereignty and future security of supply. He added that Thyssenkrupp, the construction contractor, had brought real environmentally friendly, innovative technology to Tiszaújváros, and a modern research and development center had also been built in Százhalombatta.

He stressed that the company had "ambitious" plans for the development of the Hungarian economy and the EUR 1.3 billion Mol Polyol Complex was one of the "outstanding, shining stages of this great journey."

ZALAZONE WORKSHOP WING TO BE EXPANDED

Due to the increasing number of orders, the workshop wing at the ZalaZONE automotive test track (in Zalaegerszeg, SW Hungary), which is suitable for both cars and trucks, is being extended with new stands.

László Palkovics, chairman of the board of trustees of the Széchenyi István University Foundation, which had been handed the ownership of the track by the state towards the end of last year, and managing director of the Automotive Test Track Zala Ltd., said that the clients who come here

expect services that they can provide with their own engineers or with engineers ‘hired’ on site. To this end, the university will also provide the engineering and technical background needed for testing. He added that Austria's AVL was the first to build its own development base next to the test track, but that a similar facility for Bosch is nearing completion. It will employ 250 engineers and recruitment has already started. The existing 2,000-square-meter building in the workshop wing can service 16 cars and 6 trucks at the same time. Its extension has recently started and the construction is currently 40 percent complete.

Zoltán Hamar, Managing Director of AVL ZalaZONE Ltd., the operator of the test track, said that the building, which was opened in 2019, will be extended by 1,300 square meters by the end of the year to accommodate an additional 8 cars and 6 trucks. The occupancy rate is increasing, with two car manufacturers and two suppliers currently renting permanent space and other users of the test track taking up assembly stations for shorter or longer periods.

NEW GEBRÜDER WEISS LOGISTICS COMPLEX IN DUNAHARASZTI

The logistics complex of Gebrüder Weiss Ltd., built with an investment of HUF 10 billion, has been inaugurated in Dunaharaszti, north of Budapest. The facility operates with the most modern and innovative technologies.

The new complex covers 10,000 square meters, with transshipment warehouses, high-bay warehouses and associated offices and 100 docking bays. The development has increased the company's central logistics facility to 32,000 square meters, bringing the total area of its logistics network in Hungary to almost 100,000 square meters.

demand for transport and logistics services in the coming years. "Due to its central location, Hungary is a transhipment hub for goods between Western Europe and the Adriatic, Black Sea and Balkan regions," he added.

The new logistics center has a high level of automated systems, with intelligent technologies for storing and moving goods. One of these is an automated storage system supplied by AutoStore, which no longer uses shelves to store goods, but plastic crates stored in an aluminum frame system without aisles, using self-propelled robots.

According to Wolfgang Senger-Weiss, Chairman of the Board of Directors of Gebrüder Weiss (GW), the economy is reviving after the recession of recent years and that the growth in industrial production, especially in the automotive and electronics industries, is expected to lead to an increase in

GW operates sites in Győr, Zalaegerszeg, Pécs, Szeged and Polgár in Hungary, in addition to Dunaharaszti, and has 450 employees. Gebrüder Weiss Holding, based in Austria, is a global full-service logistics company with around 8,600 employees and 180 company-owned sites.

analysis

UK: A CHANGING POLITICAL LANDSCAPE

LABOUR AND TORY OUTLOOK AFTER (LOCAL) AND BEFORE (PARLIAMENTARY) ELECTIONS IN BRITAIN

The elections of some 2,600 councilors across England and Wales, plus 11 mayors and one MP (at a by-election in Blackpool South) took place on May 2, 2024, but almost all eyes were on the potential consequences for the parliamentary elections – elections that came to be called by PM Rishi Sunak in late May for July this year. Technically speaking, the very latest day for the election of the 650 Members of Parliament in the whole United Kingdom could have been January 28, 2025, but – in line with the general expectations – the Conservatives did not wait until that date. In fact, their prospects are not very bright for them. The political observers and pundits almost to a man believe the question is only the magnitude of Tory defeat – whether it will be as devastating as in 1997, or even worse, or a slightly less disastrous. The Labour Party is leading the Conservatives by some 20 points at the moment; even if the gap is closed to some extent, it is almost a foregone conclusion that the person who will ’kiss the hands of the Monarch’ after the parliamentary elections will be Keir Starmer.

Evaporating Tory gains

It is true that the local councils enjoy more than negligible political power: the issues they usually deal with include garbage collection, road maintenance and the like. However, it signifies a trend that the Tories lost about 500 seats and some of the mayoral contests. The defeat of Susan Hall by Sadiq Khan in ’red’ London did not come as a surprise (though Mr. Khan’s margin of victory was smaller than Labour had expected); but regaining a number of council seats in the ’Red Wall’ areas, that is, formerly solid Labour strongholds, which switched to the Tories in the past election, is a more serious warning sign for the Conservatives. Former Chancellor Kwasi Kwarteng ruefully remarked that ”there is no such thing really as a safe Tory seat anymore.” The gains made by the Tories in 2015 and, especially, in 2019, all but seem to be evaporating. The list of the causes is rather long. First, there is a predictable tiredness of the Conservatives, who are in power for almost one and a half decades (though they were governing in a coalition with the Liberal Democrats in the first five years). Second, the Tories are everything but unified. They have had three PMs since 2019, and party infighting spilling out into the open is one of the constants in contemporary political life. It is usually the right wing of the party, whose members constitute a large segment of the Committee of 1922, that has been a permanent threat to Boris Johnson, Liz Truss, and now Rishi Sunak, who all have had to balance between the moderates and the radicals within their party. Ironically, the weak local elections results may have solidified Rishi Sunak’s position: none of the potential challenges (Kemi Badenoch, Suella Braverman, Penny Mordaunt, and so on) feels motivated to take over the captaincy of a sinking ship. Third, the controversial consequences of Brexit. Again, it is true, the direst predictions by the bulk of the

economists have not been realized: the British economy has not collapsed, in fact, it has been growing modestly recently. Nevertheless, the promises of a ’paradise on Earth’ after leaving the EU have not been realized either; modesty is a nice virtue for man, but it is not something the voters expect from their government’s economic performance. Fourth, immigration is an unresolved issue too. The Ruanda plan (resettling illegals to the African country) has run into legal challenges, and cross-Channel illegal immigration continues to cause headaches for the authorities.

Centrist Labour program

The Labour leader is, rightfully, very confident and optimistic about the upcoming parliamentary elections. His party is enjoying a solid doubledigit lead over the Tories; regaining a number of lost ’Red Wall’ seats in the Midlands and the North seems all but certain; across the border, the Scottish National Party (SNP) is having leadership problems (John Swinney is the third leader since 2019), as well as other liabilities (including the drop of support for another independence referendum), and Labour seems to be (re)gaining ground against the SNP. Though

Keir Starmer is definitely on the left of the political spectrum, he is not such an unregenerated Marxist as his predecessor, Jeremy Corbyn is. His ’Change Britain’ program includes strict fiscal rules (that is, borrowing only to invest); cutting wait time within the NHS; ’stopping the boats’ by launching a new Border Security Council (but discarding the Ruanda plan); cheaper energy by establishing a publicly-owned firm to provide additional capacity; ’law and order’ by recruiting more neighborhood police; and, as one of the favorite issues for the Labour, hiring thousands of new teachers to improve educational standards. This centrist program is designed to avoid scaring away disillusioned voters from the Conservatives, who are under siege from the right as well: the Euroskeptic Reform UK may slice off voters from the right of the Conservatives. At the same time, Labour may have problems with its left, especially the radical Islamists in the light of the pro-Palestine/Hamas, at times violent demonstrations. Here, Keir Starmer has to walk a fine line: Jeremy Corbyn tolerated antiSemitic voices within the party. If Keir Starmer also wishes to curry favor with the Islamists, it may help him in the elections, but it may put him into hot water later internationally.

Tamás Magyarics is a foreign policy analyst

KEIR STARMER
RISHI SUNAK

Amid the turmoil of Russia's invasion of Ukraine, President Amherd underscores the complexity of achieving a lasting peace. "The road towards a comprehensive, just, and lasting peace will be long and difficult, and success is not guaranteed," she says. However, she emphasizes that inaction is not an option. Switzerland's role, she notes, is to provide a platform for high-level discussions, bringing together all world regions in pursuit of peace.

Hungarian Prime Minister Viktor Orbán has long been calling for immediate peace in Ukraine. While most nations around the world agree with this stance, Orbán’s critics stress that peace must meet a range of conditions or otherwise it would not constitute a lasting and just solution. Reflecting on Hungary’s advocacy for immediate peace, President Amherd highlights the importance of the upcoming Summit on Peace in Ukraine. "The aim is to consolidate a common understanding of the path to a just and lasting peace," she explains. By incorporating a wide range of perspectives and existing peace initiatives, the summit aspires to craft a holistic approach to resolving the conflict. “The participation of a wide range of states and their contributions to the discussion will be crucial to reach this goal. All possible views on a peace solution and all existing peace initiatives should be discussed at the Summit on Peace in Ukraine in June. We hope Hungary will also contribute its ideas,” President Amherd explains. The summit, which Switzerland hopes will pave the way for a peace process in Ukraine, has so far drawn delegations from more than 50 countries, including nations in South America, Africa and the Middle East. The neutral Swiss government sent out 160 invitations to nations around the globe but not to Russia. The aim is to persuade more countries from the so-called Global South as well as China to sign up.

Expectations for the peace summit

With anticipation building for the Peace Summit in Switzerland, President Amherd outlines the summit’s goals. She hopes it will inspire a future peace process and yield practical steps towards peace. Organizers’ key aspiration for the summit is to provide a platform for dialogue on achieving comprehensive, just, and lasting peace in Ukraine based on international law and the UN Charter. In addition, the event is expected to promote a common understanding of a potential peace framework and define a roadmap to involve both parties in a future peace process.

Energy policy and sustainability

Addressing Europe's energy challenges, further exacerbated by Russia’s invasion of Ukraine more than two years ago, President Amherd stresses that Switzerland’s main priority is to achieve security of supply. Her government’s approach to achieving this relies on national measures and increased international cooperation. Switzerland prioritizes expanding domestic renewable energy production, with a focus on hydropower, solar power, and wind power. "We are the first country in the world to have a carbon-neutral target by 2050 approved by the population," she proudly notes. However, Switzerland continues to import electricity from the EU during winter, maintaining strong integration into the European electricity grid with 41 interconnectors.

diplomac y

WORKING FOR A JUST AND LASTING PEACE IN UKRAINE

A CONVERSATION WITH SWISS PRESIDENT VIOLA AMHERD

In an exclusive interview with Diplomacy&Trade, President of the Swiss Confederation Viola Amherd discusses Switzerland’s stance on the Ukraine conflict, energy policy, migration, and international relations. Her insights reflect Switzerland's commitment to peace, sustainability, and global cooperation. From fostering peace in Ukraine to addressing energy sustainability and migration challenges, Switzerland is committed to playing a pivotal role on the international stage. As the world watches, Switzerland's efforts in diplomacy and cooperation continue to pave the way for a more peaceful and sustainable future.

Thanks to Switzerland’s hydropower plants, the country is a major provider of flexible power to her neighbors. Collaboration with Hungary, particularly on renewable energies like geothermal energy, is vital as Hungary prepares to assume the EU presidency. “Our two countries work together and exchange ideas on renewable energies, such as geothermal energy,” according to the President.

Migration in Europe

Migration remains a significant issue in Europe, and President Amherd emphasizes the need for collective strategies. She notes that most migration to Europe is legal, citing that in 2022, nearly 3.5 million third-country nationals migrated to the EU legally. “Within Europe, free movement has become an integral part of European identity. Around 114,000 EU and EFTA citizens migrated to Switzerland in 2022, while 16,000 Swiss citizens migrated to EU and EFTA countries,” President Amherd says. She underscores the importance of the recent political agreement on the EU pact on migration and asylum, calling it a crucial step towards managing irregular migration. “When it comes to irregular migration – which constitutes only a fraction of all migration movements – we will only be able to manage it effectively if we work together to find common solutions at a European level,” the President notes. EU member states recently approved five regulations comprising the New Pact on Migration and Asylum. This comprehensive overhaul introduces stricter screening rules, health and security checks, expedited procedures, and free counseling for applicants. A key feature of the pact is the introduction of "mandatory solidarity," which requires countries to either relocate a set number of asylum seekers, pay €20,000 per rejected applicant, or provide operational support. The initial target for this system is 30,000 relocations per year. Switzerland is ready to support the implementation process of the new EU migration pact and looks forward to collaborating with Hungary during its EU Council presidency, according to the President.

Evolving relations with China

On the topic of China, President Amherd describes bilateral relations as "very positive." High-level visits, including the recent one by Chinese Premier Li Qiang, have strengthened ties. She acknowledges China's multifaceted interest in European affairs and its willingness to contribute to global peace, evidenced by its 12-point peace plan for Ukraine. “In discussions with China, Switzerland understands that China looks carefully at European affairs from a range of angles: economic, financial, political as well as security. While China primarily considers and defends its interests towards Europe and the rest of the world, its ‘12-point peace plan for Ukraine’ also demonstrates its willingness to contribute to peace in Europe and worldwide,” Viola Amherd explains. The President expressed optimism about China’s potential participation in the upcoming Peace Summit in Switzerland, seeing it as beneficial for the future peace process. “Of course we are convinced it would be beneficial to the future peace process if China participated in this first Summit.”

CHERISHING A LONGSTANDING FRIENDSHIP

INTERVIEW WITH JAPANESE AMBASSADOR HIKARIKO ONO

The Ambassador of Japan to Hungary, Hikariko Ono presented her credentials to the Hungarian President in Budapest at the end of March this year. Regarding her first impressions, she tells Diplomacy&Trade that as she begins her tenure in this country, she is deeply humbled to be serving “in this distinguished European nation, renowned for its long-standing friendship with Japan and rich cultural heritage. The city of Budapest, a UNESCO World Heritage Site, captivates me daily with its unique blend of history, culture and natural beauty. Hungary is notable for its profound cultural and artistic foundation, which has nurtured renowned musicians such as Ferec Liszt, Béla Bartók or Zoltán Kodály.” She also finds fascinating, as another significant aspect, the country's diverse culinary landscape, featuring world-renowned delicacies like Tokaj wine and Goulash soup. “During my stay in Budapest, I have come to appreciate the integral role that music and arts play in the daily lives of the locals. The vibrant café culture and the rich history of gastronomy are cherished aspects of Hungarian society, which I am excited to explore further.”

Building on a long-standing friendship

When assuming duties in a new country, ambassadors are full of plans of what they would like to address and pursue during their tenure. “As Ambassador of Japan to Hungary, I am committed to building on the long-standing friendship between our nations, a relationship that dates back over 150 years. Japan's support for Hungary's reforms after the regime change some three and half decades ago and the early establishment of Japanese businesses

in Hungary have been significant factors in our economic cooperation. During my tenure, I will strive to strengthen economic ties between our countries,” Ambassador Ono highlights. Furthermore, she is to foster people-to-people and cultural exchanges across various fields to deepen the bonds of friendship between Japan and Hungary. To achieve this, she says she will utilize social media platforms effectively, making the Embassy's content engaging and accessible to the Hungarian public.

“For instance, I recently shared my experiences shopping at the renowned market hall Nagyvásárcsarnok and participating in a half marathon through our Facebook and Instagram accounts. By making the Embassy more approachable and relatable, I hope to promote greater understanding and mutual respect between our nations,” she adds.

High-level visits

Ambassador Ono points out that since the establishment of diplomatic relations in 1869, Japan and Hungary have maintained a strong partnership, cooperating in various fields such as trade, business, science, culture and sports. The year 2019 was particularly significant, marking the 150th anniversary of the Treaty of Amity and Commerce between Japan and the Austro-Hungarian Monarchy, with numerous highprofile visits and commemorative events. “This memorable year was marked by high-level visits such as that of Her Imperial Highness Princess Kako of Akishino, Prime Minister Viktor Orbán and Minister of Foreign Affairs and Trade Péter Szijjártó, and then President of Hungary János Áder, who attended the enthronement ceremony

of His Majesty Emperor Naruhito in the same year. Most recently, on May 21, 2024, Minister of Foreign Affairs and Trade Péter Szijjártó visited Japan and held meetings with the Japanese Foreign Minister, the Minister of Economy, Trade and Industry, and the Minister of Land, Infrastructure, Transport and Tourism,” she notes.

Promoting mutual understanding

Japan and Hungary are geographically distant and their economic and security situations also differ.

“Therefore, we may have different views on certain issues. However, I believe it is crucial to explain each other's positions and promote mutual understanding including such high-level exchanges. This is the essence of diplomacy,” she says.

On the occasion that Hungary will hold the EU Presidency in the second half of 2024, she asserts that she is committed to working with the Hungarian government to maintain and strengthen a free and open international order based on the rule of law.

“I also enthusiastically welcome Hungary's participation in Expo 2025 Osaka Kansai and the opening of a new consulate in Osaka this year, which will further deepen our partnership.”

Strengthening bilateral economic relations

The presence of Japanese investors in Hungary is a key contributor to the country’s economy. Suzuki, for instance, has been affectionately branded as “our car” in Hungary. As for where she sees the most room for further improvement in economic relations, Ambassador Ono says she is honored to acknowledge Japan's long-standing economic partnership with Hungary. To date, over 180 Japanese companies have established operations in Hungary, generating more than 30,000 jobs. This diverse range of companies, including those in the automotive, food, and IT sectors, she says, have recognized Hungary's favorable investment environment and the diligence of its people. She stresses that “the Embassy of Japan, in collaboration with the Hungarian government and business community, is dedicated to fostering an environment that supports the continued growth of Japanese companies in Hungary. In addition, we aim to enhance the presence of Hungarian companies in Japan by promoting direct investments in Japan. This will not only strengthen bilateral economic ties but also contribute to the development of both economies.” Furthermore, interest in Japanese food and culture

MYAKU-MYAKU WELCOMES YOU TO OSAKA EXPO

With its identity unknown, MYAKU-MYAKU is a mysterious creature born from the unification of cells (the red part that divides and increases) and water (the blue part, the ‘clean water’, which can be transformed to flow).

As another symbol of Expo 2025 Osaka, Kansai, Japan, the official character – held in the hand by Ambassador Ono – aims to be loved and familiar all over the world as it is utilized to publicize and foster the momentum of the Expo. It seems to be looking for itself to figure out who it wants to be, transforming itself into various shapes. MYAKU-MYAKU dreams that everyone knows about it even before the Expo’s opening and that it will meet many people at Expo 2025, Osaka, Kansai, Japan.

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is growing in Hungary and thus, the Embassy intends to actively promote lesser-known Japanese food products in this market. “Additionally, as Sake gains popularity globally, we hope that many Hungarians will have the opportunity to enjoy Sake in the near future. We are confident that bilateral economic relations will be further strengthened through both industrial products and high-quality Japanese food products,” she notes.

Investors’ interests and concerns

“We are aware that Japanese companies continue to be highly interested in investing in Central and Eastern Europe and the Balkan region, and we would like to support Japanese companies in deepening their understanding of Hungary so that they can include this country as a potential destination for their investment,” the Ambassador points out.

She also believes that it is important to maintain close communication with the Hungarian authorities so that companies can respond to any changes in the regulations. “For example, we have heard that some Japanese companies are having a hard time renewing visas of expatriates due to the changes in the immigration law that came into effect from this year. We would like to keep consulting with the Hungarian government to ensure that Japanese companies can continue their business successfully in Hungary. We recognize that securing labor force in Hungary is another major issue. In recent years, large-scale investment projects in the manufacturing industry have been underway and I understand that there has been some discussion regarding the need for foreign workers. In this regard, we would like to pay attention not only to future labor-intensive FDI but also to capital-intensive FDI in Hungary.”

Helping the victim of aggression

Japan has offered financial assistance to help Ukrainian refugees in Hungary. Speaking of the details of this support initiative, the Ambassador accentuates that the Russian aggression against Ukraine poses a significant challenge to the international order as it undermines the rule of law and endangers the prosperity of all nations. In response, Japan has provided emergency grant assistance through the United Nations High Commissioner for Refugees (UNHCR) and other international organizations since the outbreak of the Ukraine crisis. In Hungary, the Japanese government,

through the International Federation of Red Cross and Red Crescent Societies (IFRC), has been actively supporting the provision of basic necessities such as health and medical care, water and sanitation, and evacuation assistance to displaced individuals. Additionally, Japan has supported the International Organization for Migration (IOM) Hungary, which provides humanitarian assistance to vulnerable populations displaced from Ukraine, including housing, food, childcare and other essential services. Japan continues to collaborate with international partners to provide assistance to Ukraine, ensuring that the humanitarian needs of those affected by the crisis are addressed effectively, she stresses.

Promoting cultural relations

The Japanese Embassy in Budapest is involved in organizing several cultural events. This is because, as Ambassador Ono puts it, cultural exchange is a vital aspect of the Japan-Hungary relationship. In recent years, a diverse range of Japanese culture has gained popularity in Hungary, from traditional practices like Ikebana (flower arrangement), Tea Ceremony, Haiku (Japanese poems) and Martial Arts to modern trends such as Manga, Anime, Japanese cuisine and Sake. “The Japan Foundation, a leading institution dedicated to international cultural exchange, has maintained an office in Budapest since 1991, organizing numerous projects that foster active cultural exchanges between the two countries. For instance, a major online film festival was held for the entire Hungarian population in June. Upcoming events include outdoor film screenings

on Margaret Island in August, Japanese dance performances in October and Rakugo storytelling performances. Those interested can find further information on the websites/SNS accounts of the Embassy and Japan Foundation.”

The House of Music, located in the City Park of the Hungarian capital, was designed by Japanese architect Sousuke Fujimoto and opened in 2022.

“It symbolizes the close relationship between our nations and will serve as a platform for many Japanese artists. The Embassy also supports talented Japanese students studying at the Liszt Academy and the Hungarian Dance University as well as Japanese musicians and dancers pursuing their careers in Hungary. By encouraging and supporting these artists, I aim to promote cultural exchanges and further develop bilateral relations,” she adds.

Looking forward to exploring Hungary

Geographically, Japan and Hungary are situated quite far, some 9,000 kilometers, from each other. As to how it feels, on a personal level, to live so far from her home in such a distinctly different culture, the Ambassador explains that “as a diplomat, living in a foreign country can be both challenging and rewarding. I find it particularly valuable to experience the world from a different cultural perspective, which fosters a deeper understanding of the complexities and nuances of international relations. It is a great pleasure to contribute to promoting cooperation between Japan and Hungary.”

On a personal level, she says she has been pleasantly surprised by Hungary's rich cultural heritage, including its thriving hot spring culture, which is quite similar to her homeland. “I look forward to exploring and enjoying these hot springs during my tenure, which will be a relaxing and rejuvenating experience,” Ambassador Hikariko Ono concludes.

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A CLUB OF PERSONAL CONTACTS

ORGANIZATION VERY ACTIVE IN PREPARATION FOR THE OSAKA WORLD EXPO

The Hungarian-Japanese Economic Club (MJGK) was founded in 1971 to provide information, events and networking opportunities for companies and individuals interested in improving economic cooperation between the two countries. The current President of the Club, Dr. László Urbán, who assumed this position at the beginning of last year, summarizes to Diplomacy&Trade the current activities of this non-political organization where the members “all love Japan.”

“It's a bit of a strange club, because nowadays, in the world of the internet, in the world of online connections, the club-like operation seems a bit atavistic, a bit old-fashioned, but I think that in the world of social media, which is basically just an internet connection between people, we need to discuss things with personal presence. In the Club, we talk about the situations, cases, examples and the economic background of Hungarian-Japanese relations that people prefer to discuss with their friends. So, we are trying to preserve and develop this way of personal contact, which, I think is irreplaceable,” the President stresses. He adds that they try to get to know as much as possible about the background of the economic relations between the two countries. “Perhaps the most important part of this is business culture, and we can learn a lot from the Japanese in this area. Of course, despite globalization, business culture is very different in Japan and Hungary, but if we had to assess it, the yardstick of success would be more in favor of Japanese business people.”

“We all love Japan” Events organized by the Hungarian-Japanese Economic Club are very casual, taking place in a relaxed atmosphere. According to Dr. László Urbán, who has been a member of the club for twelve years, they pride themselves on trying to do a bit of amateur diplomacy around the white table, “which, I think, has been successful over the last ten-to-twelve years. “We do not, for example, reap economic benefits from the information we hear from ambassadors (that of Japan in Hungary or that of Hungary in Japan), which is obviously mainly of a confidential nature, but it enriches our knowledge and we are more successful as business people on the basis of this information and we are also richer in terms of the knowledge or the experience we have gained in

many cultural and other areas, which is important not only from a business point of view. In the club, we all love Japan. So, for us, any information that comes from Japan is a plus, and in this club, we learn a lot in the sessions from whoever we have as guests.”

The Hungarian-Japanese Economic Club supports the Hungarian-Japanese Friendship Association, which is at the forefront of promoting Japanese culture, and “we have a very good relationship with them. We are always present at cultural events, often helping to organize them and these events are supported many times financially by our partner organizations,” he adds.

Keeping the Club exclusive Dr. Urbán’s predecessor, Sándor Kiss, was at the helm of the organization for two decades.

“I talked to him many times and he was of

similar view about the white table discussions,” the current President notes. Talking about the leadership legacy of Sándor Kiss and of what he possibly inherited from him, Dr. Urbán remarks with a smile that “one thing I know for sure I have not inherited is his command of the Japanese language. Sándor had the unheard-of advantage of running the club because of his excellent Japanese. After stepping down as President, he has remained a member of the club, he is our Honorary President and continues to work very hard to strengthen the club's Japanese links. What I have inherited from him is definitely that this is not a club of hundreds of people, we want to keep the exclusivity of the club. Sándor dealt with each club member individually, so to speak, but also contacted us between two club events. Sándor is a master of personal contact, which I try to do myself.”

A ‘love affair’ with Japan

The Hungarian-Japanese Economic Club currently has 20 members. As to how these members can help the club and each other, the President highlights that “basically, we are trying to strengthen the Japanese ‘foot’ of the organization. This doesn't mean that we have more Japanese club members, but we are trying to attract the leading companies with Japanese interests in Hungary to join the club because they basically determine the movement of Japanese capital in Hungary.”

As far as László Urbán's ‘Japanese background’ is concerned, he used to travel to Japan quite a lot in the first half of the 1990s on behalf of the National Bank of Hungary, as he was involved in the rather intensive samurai bond issuance that was then being done by the national bank. "So, it's been a love affair with Japan for more than thirty years, but in terms of specific club membership, I first learned about the existence of this organization probably in 2007, and I joined the club in early 2008. I think I had been in Japan five times by that time.” He used to be the Deputy CEO of Magyar Suzuki Corp. Ltd. and is currently an advisor of the Board of Directors of that car manufacturing company.

Partners to work with

Regarding the nature and content of cooperation between the Hungarian-Japanese Economic Club and the Japanese Embassy in Budapest, Dr. László Urbán underlines that “basically, we invite the incoming and outgoing ambassador at least once. If he or she has time, it is possible that we can enjoy the ambassador’s company more than once. If that is not the case, we try to get the economic secretary of the embassy to participate in the club's events. All in all, I would like to build a little more regular relationship with the embassy. The other line is the institutional relationship. I have already contacted the Budapest office of the Japan External Trade Organization (JETRO) and we are in the process of contacting Shokokai, the Japanese Business Association of Hungary.”

He recalls that the Club has been very much affected by the recent pandemic, and earlier by the financial crisis of 2009-10, before which the club had over 30 members. “I have the list of those earlier members and I am trying to contact them. During the times of the new coronavirus epidemic, the level of personal contact was reduced. That did not help the running of the Club and is one of the reasons why our numbers have been reduced to an extremely low level.”

World Expo in Osaka

When talking about plans for the coming years, the primary issue the MJGK President mentions is the World Expo to be held in the Japanese city of Osaka next year because it requires the most immediate and very intensive work in the preparation for the participation in that event. “We are trying to move all the stones that are not part of the official state tasks. We are trying to encourage our club members, the Hungarian or mainly Hungarianowned enterprises, to bring their products, whether intellectual or physical, to the Osaka World Expo. If they have products that we consider worthy of the world exposition, we can provide contacts and perhaps other support for the Hungarian entrepreneurs who would like to exhibit there.”

photo by DÁVID HARANGOZÓ

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JAPAN’S BRIDGE TO BUSINESS IN HUNGARY

TRADE PROMOTION AGENCY ACTIVE IN POPULARIZING JAPANESE ITEMS

The Budapest office of the Japan External Trade Organization (JETRO) looks back at the history of over three decades now. The office’s General Director, Yasunari Miyauchi tells Diplomacy&Trade how the organization helps widening Japanese corporate presence in Hungary and promoting trade and investment between the two countries.

The Japan External Trade Organization is a government-related organization that works to promote mutual trade and investment between Japan and the rest of the world. Originally established in 1958 (headquartered in Tokyo and Osaka) to promote Japanese exports abroad, JETRO's core focus in the 21st century has shifted toward promoting foreign direct investment into Japan and helping small to medium size Japanese firms maximize their global export potential. JETRO has 75 overseas offices in 55 countries and 49 regional offices in Japan. The figure that probably tells the most about the successful activities of JETRO’s Hungarian office over these decades is that some 180 Japanese companies, mainly in the manufacturing sector, have invested in this country, employing more than 30,000 people since 2016. “When Japanese companies were considering direct investment in Hungary, our JETRO Budapest office provided them with support through various means like preparing a research report or sometimes briefings, holding seminars and arranging a tour for Japanese companies here,” the General Director highlights.

Comparing the costs

Regarding the inquiries by Japanese companies to JETRO Budapest, Yasunari Miyauchi says these firms sometimes wish to compare the costs here in Hungary with those in other countries in the region. “So, we are collecting information on labor costs or how much it costs if they purchase or rent space or land. If we look at the business sectors or the main business areas that Japanese firms are most interested in, it is the mainly the automotive industry. One great example is Magyar Suzuki that set up a factory here 30 years ago. That development attracted other investors to come here and establish themselves as suppliers of parts and components.”

New investors coming

He adds that recently, new companies have arrived to invest here, widening the Japanese corporate presence in Hungary. “They are mostly manufacturing underlying technology fundamental for electric vehicle (EV) batteries. One great example investing in the automotive sector, more precisely, in the electronic vehicles industry, is Nippon Paper Chemicals. They are manufacturing battery material for EVs, like thickeners for positive electrodes as they have the technology to manufacture those

kinds of components. And it is not just the newcomers. Some Japanese companies that have already invested here are expanding their facilities or shifting to the EV sector.” JETRO is currently writing a variety of research reports, including daily business briefs and industry analysis reports, but plans to focus more on the EV industry.

Working with Hungarian investment promotion

When managing bilateral business relations in the different fields, the most important Hungarian partner for JETRO’s Budapest office is the Hungarian Investment Promotion Agency (HIPA) that also aims at supporting Japanese companies investing here. JETRO has also signed a Memorandum of Understanding (MOU) with the predecessor of HIPA. “We have a good relationship with HIPA, sometimes co-hosting with them seminars for Japanese companies. We have organized 13 procurement exhibitions (so-called reverse exhibitions, when Japanese companies indicated their wish list of components/parts/services procured from local suppliers) together to connect local suppliers with the Japanese manufacturing companies to enhance the productivities of each party. These

events were very successful. When Japanese companies are interested in collecting information concerning investment opportunities, we sometimes introduce them to HIPA,” the General Director highlights.

Cross-border open innovation

JETRO also makes efforts to act in the other direction, that is, promoting inward investment to Japan and facilitating cooperation and collaboration. Hungarian startup companies with excellent technologies are introduced to Japanese companies in order to promote international collaborative partnerships. “We now have a business platform for the creation of cross-border open innovation to facilitate collaboration between Japanese and overseas companies – a platform we call ‘J Bridge’. It is for startups and other companies who are interested in expanding business not only domestically but internationally with Japanese companies; considering investment from Japanese companies; and/or utilizing the capabilities of Japanese companies in product development, manufacturing, sales, marketing, etc.,” he points out.

The focus of this business platform is mainly on the fields of digitalization and green economy.

“Now, I believe, we have 2,000 people registered from Japan, mainly from large scale companies and universities, while the number of mainly foreign startup companies registered on that platform is 800. It's kind of a matching style system. If Hungarian startup companies register, they can search for Japanese companies and if they would like to have a business meeting, we can arrange it. Of course, in terms of foreign direct investment, if Hungarian company would like to set up their business in Japan, we can support it,” Yasunari Miyauchi says.

Scallops and sake

Another important task of JETRO is promoting the export of Japanese goods, especially those of gastronomy to Hungary, making Hungarian businesses and the public aware of Japanese products. Mentioning recent examples of such gastronomy cooperation, the General Director describes a promotion event for Japanese scallops the JETRO office hosted during Valentine's Day week. “Each restaurant used Japanese scallop for the Valentine's Day menu. The event was very well received by the guests and chefs. Many of them commented that Japanese scallops were very tender and of wonderful texture. Out of the 11 restaurants participating, three of them ordered Japanese scallops and two of them will include these on their seasonal menus.”

Early March this year, JETRO’s Budapest office held another export promotion event. “We invited eight Japanese sake breweries to Budapest in cooperation with the Japan Sake and Shochu Makers Association. We organized business meetings and tasting events attended by some 70 people. It was very successful. Several business meetings are ongoing between Hungarian buyers and Japanese breweries, and we will continue to follow up on these meetings,” he stresses. Originally, JETRO was established as a support organization to bring Japanese products overseas. In that sense, they would like to continue to introduce excellent Japanese items to Hungary in a wide range of fields, including machinery and equipment, as well as food products.

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TRADITION AND INNOVATION HAND IN HAND

DEVELOPMENTS AT DREHER BREWERIES POINT TOWARDS MORE SUSTAINABLE PRODUCTION

Dreher Breweries Ltd., based in Budapest, celebrates the 170th anniversary of its establishment this year. As General Manager Gábor Békefi explains to Diplomacy&Trade, the anniversary celebrations this year will run concurrently with the construction and modernization projects, featuring special events at the brewery's iconic sites.

“The management remains dedicated to the enduring preservation of historic buildings and unique industrial assets, paralleling their commitment to preserving the Dreher museum's brewery relics. Building on this, we will mark the company’s 170th anniversary with a series of celebrations. We plan to organize very special guided tours of the premises, including the famous Dreher Museum, which celebrates its 45th year in 2024, as well as movie events, where visitors can watch both archive and new films about the company and participate in beer tasting,” the General Manager highlights. Dreher Breweries also plan to publish a special book about Antal Dreher Sr., the ‘Beer King’ and will host several stakeholder events at the brewery premises. In addition, “a special town-hall meeting will be organized for the Dreher colleagues, where we will celebrate our unique Dreher legacy focusing on intertwining innovation with the preservation

of Hungarian beer production traditions. Of course, the anniversary will also be visible in the stores so that our consumers can also be part of the celebrations,” he adds.

For a sustainable manufacturing chain

Last fall, it was announced that a ten-year, HUF 100 billion investment would be launched at Dreher Breweries by two of its owners, Asahi Group Holdings and Asahi Europe & International. As to what this largest investment in the history of the Hungarian beer industry mean in practice, Gábor Békefi says this development is about ensuring the competitiveness of Dreher and creating a sustainable manufacturing chain.

“Beer production traditionally involves six major steps: brewing, fermentation, conditioning, filtration, pasteurization and bottling. The investments made over the last two years, coupled with those recently announced, span several processes. Last year, as part of a HUF

4.6 billion modernization series, compressors and filtration equipment were replaced. Last spring, the efficiency of pasteurization and decanting increased with the installation of one of the most advanced aluminum can lines available, at a total cost of HUF 7 billion.”

Between 2023 to 2026, the company's experts focus on allocating a budget of around HUF 30 billion. One of the inaugural projects in this period is the construction of a part of the new energy center to serve all departments of the plant. This center will support not only capacity growth, but also the company's ambitious sustainability goals. During these years, the fermentation and conditioning stages in the cellars undergo a complete renewal, involving the replacement of tanks and the introduction of new technologies, which involves the continuous development of skills and knowledge among our employees.

Dreher – not just beer

Asahi Europe and International's group-wide corporate strategy until 2030 is built around four pillars – Planet, People, Portfolio and Profit – with strong emphasis on sustainability. Naturally, Dreher Breweries takes its share of the measures for the implementation of this strategy.

As the General Manager notes, “sustainability is a fundamental aspect of our entire company's operations, including our production processes. We continuously monitor and improve our environmental performance from raw materials to consumption. We pay particular attention to environmentally sound water management, reducing our specific energy consumption and carbon emissions, reusing and recycling packaging and responsible waste management. With Dreher, people don't just buy beer, they buy a slice of history, a way of thinking and a philosophy. Therefore, for us, sustainability is not only about its economic aspect and the conscious use of scarce resources, but also about taking into account the internal and external, immediate and wider environment and communities of the factory. Our long-term and responsible approach is illustrated by the fact that, for example, we have been running a program since 2009 to promote responsible alcohol consumption.”

He underscores that as a member company of Asahi Europe and International (AEI), Dreher Breweries believes that through its activities and by creating meaningful connections, it can contribute to solving the environmental and social challenges of our time. “Each of the four pillars AEI's corporate strategy to 2030, ‘Better Future’, is built around, is permeated by our purpose defined at Group level. This structure supports the monitoring of AEI's strategic objectives and the transparency of Dreher Breweries' activities.”

Challenges overcome with optimism

When talking about the current challenges faced by the industry and Dreher's answers to them, Gábor Békefi expresses his belief that the past four years have not been a fair cross-section of the Hungarian brewing industry because of the pandemic and also because of the accelerating inflation. “This is not what we had seen from the Hungarian beer industry for many years, because if we look back over a slightly longer period of time, we can see that from 2012 to 2019, the Hungarian beer industry developed very well, and the rising expectations of consumers for the products on the market were very clearly traceable, in the sense that consumers purchased

more and more premium and super-premium products. Interestingly, this trend has not been broken in the last four years, or even in the last two years, because the share of premium products in sales has not decreased, and in this respect, this crisis shows a different picture than the crisis we had between 2008 and 2012, because then, the sales of cheaper products increased, and now, this was not visible. At the same time, of course, last year the market unfortunately declined, and according to the Association of Hungarian Brewers’, the beer industry's turnover fell by 11%. Sales in trade were a little lower, sales in HoReCa were a little better, but that is, of course, understandable, because the effect of inflation is that consumers tend to start saving or postpone some of their consumption. That said, as I pointed out, the structure of the market has not changed. I think we will see a more dynamic development in the coming years. I very much believe that the Hungarian economic growth will return from 2024 onwards, we will see again a good positive momentum, employment data is still very positive, unemployment is low, you can see that the income outflow continues. I hope that the living standards of the Hungarian population will improve, and with it their ability to consume.” He adds that there are some trends that continue to be visible, one of which is the growth in sales of non-alcoholic products, including flavored products. Another trend shows the rise of products with lower alcohol content. “The innovations that we have launched in recent years have already pointed in this direction, as have done our competitors, and I think this trend will continue to grow in the future and that there will also be a layer of consumers with growing consciousness and concerned with packaging and environmental sustainability, so there will be new consumer choices. I think this is what will define the next few years in Hungary. But I'm optimistic about the prospects for 2024 as well,” the General Manager concludes.

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JAPANESE ROOTS, HUNGARIAN COMMITMENT

BRIDGESTONE

TATABÁNYA IN THE SERVICE OF SOCIETY

Bridgestone’s plant in Tatabánya – being an integral part of the global company group – is operating in line with the principles of its Japanese founder, Shojiro Ishibashi, and also operates with great flexibility to quickly adapt to the challenges posed by the ever-changing world. And in recent decades, the road of adapting always lead towards sustainability. Taking responsibility for society and the environment has been an integral and prioritized part of the company’s operations since its foundation 90 years ago, and it continued to be even more significant today.

“Serving society with superior quality”

– this mission has defined the operation of Bridgestone Tatabánya since its production started in 2007. This statement refers not only to the quality of its product and services, but also to its commitment for making the world around us even more livable.

Global approach, local implementation

Nowadays, organizational involvement in sustainability is even more important than ever before. Bridgestone is committed to these efforts: in 2022, it introduced the E8 Commitment with the values of Energy, Ecology, Economy, Efficiency, Extension, Ease, Empowerment and Emotion, supporting a sustainable society and mobility with direct actions, aligning its employees and partners.

“Following the principles of the company, sustainability efforts are manifested in various areas within Bridgestone Tatabánya – such as environmental protection, procurement sources, technological development, actions for our employees and also for the extended

society,” says Kota Fujiyama, Lead Advisor of the Bridgestone Tatabánya factory.

Being a frontrunner in environmental protection

The Tatabánya plant supports the global ambition of Bridgestone to halve its carbon footprint by 2030 and to cover its entire energy consumption from sustainable sources by 2050. The Hungarian unit has been covering 100% of its electricity needs from renewable energy sources for four years, three heat pumps have been installed at the factory and more solar panels are planned. In 2019, Bridgestone launched its sustainable global sourcing policy, undertaking to use only sustainably sourced raw materials during production from 2050 at the latest. The company also relies on their partners in this.

In line with the modern approach and innovative production technology of the Tatabánya factory, more than 60% of production processes use digital technologies. The transformation into a smart factory is also underway with artificial intelligence-based tire manufacturing equipment and solutions to reduce environmental impact.

Social responsibility as a crucial aspect

The road towards a sustainable future also includes the efforts to take care of our communities, our society. These endeavors are crucial to the company's objectives too. The Tatabánya plant pays special attention to community building, employee well-being and health promotion with its family friendly day-to-day operations, outstanding career development opportunities and trainings, and activities such as road safety related events for the employees, Health Weeks, community-building joint breakfast program, cancer disease preventing screenings and awareness programs – among many others.

Bridgestone Tatabánya is respectful and attentive to the customs of the Japanese parent company, which includes the adaptation of a corporate culture that is committed to the people living in its environment, thus making many activities supporting local communities. The company regularly supports the local hospital, the regional national park, many aid organizations and local disadvantaged families with financial and/or material support and donations. Also, many volunteer activities are organized by the colleagues in the plant throughout the years.

Recognition of continuous and hard work

The founder of Bridgestone, Shojiro Ishibashi believed that a company that does something good for society and the environment is able to prosper well – this is why acknowledging the contribution and efforts of the Tatabánya plant both environmental and social sustainability areas is significant.

“We can proudly say that our factory in Tatabánya received acknowledgement in various areas. In 2019, the global headquarters of the group recognized its environmental efforts with the Gold Leaf Prize. In 2022, the company won the ‘Factory of the Year’ award on the competition of GyártásTrend and in 2023, the company won first place in the JVSZ ‘Companies for the Future Award’ Best Technology Investment category. In addition to this, we received the title of FamilyFriendly Workplace from the Ministry of Human Resources both in 2019, 2020 and 2021,” adds Melinda Topolcsik, President, Managing Director of the Bridgestone Tatabánya factory.

japanese focus

As the General Manager of the Hungary branch, Hideki Tohyama points out to Diplomacy&Trade, “when we were founded in 1994, we were the first Japanese general contracting company in Hungary and our first project was the construction of the Japanese Embassy, which I think was a significant milestone in the beginning of our career in this country. We are proud to announce that we have completed the largest number of Japanese projects in Hungary, with nearly a million sqm in 120 projects, building close relationships with our clients. The fact that Bridgestone has chosen us as a partner four times in a row and Sanyo five times in a row confirms our customer satisfaction.” Takenaka’s thirty years of glory also includes the 2010 Construction Industry Award of Excellence for the Specsavers Szatmár Optika factory in Mátészalka, NE Hungary.

The General Manager also considers it a great merit that the initial staff of five has grown to one hundred in 30 years. “There are many Hungarian colleagues who have been with the team for decades, some for more than 20 years, and over the years, a generation has grown up who form the backbone of the Hungary Branch management and represent Japanese values in a worthy way.”

Extensive and complex knowledge

Takenaka coordinates construction projects in the fields of office and industrial buildings. At the core of the company’s business philosophy is the ambition to contribute to the development of society by creating the best possible functioning building for future generations. “The basis for achieving our goals is our extensive and complex knowledge of the Design & Build service, which allows us to accurately determine the investment costs and time required to complete projects. We implement Japanese quality standards in Hungary through our international knowledge and experience, and we also have methodologies with readymade case studies that minimize the business risks our clients face in their investments. I am pleased to say that we are providing our Design & Build service to an increasing number of FORTUNE 500 international companies operating in Hungary, the main objective of our business model being to maximize customer satisfaction,” Hideki Tohyama highlights. With its Japanese roots, Takenaka is unique in the European market for construction and engineering services. Its Integrated Design & Build business model is a special knowledge. “Our integrated service means that in our case, the client does business with a design and – at the same time – building company, where the building experience is integrated in a direct way into the design phase of the client's project. This is a process and knowledge that a design-only firm does not have, as it does not, and cannot, have direct and up-to-date feedback from the construction and operations professional sides, and therefore when design and construction are separated, there is a lack of coordination between design and construction, resulting in delays and project cost overruns for the client,” he explains.

The Japanese architectural, engineering and construction services giant Takenaka was established over five centuries ago while the Hungary branch of the European arm TAKENAKA EUROPE GmbH has been in existence for three decades.

THE MASTERS OF DESIGN & BUILD SERVICE

TAKENAKA CELEBRATES 30 YEARS OF SUCCESSFUL OPERATION IN HUNGARY

Contribution to society

Takenaka Europe is committed to providing sustainable solutions for buildings. Sustainable development and the use of environmentally friendly solutions are best demonstrated by Takenaka Corporation's management philosophy ‘Contribute to society by passing on the best works to future generations’. It believes that the way to maintain the long-term competitiveness of companies is to ensure continuous innovation and improvement by meeting the criteria of sustainability. As the General Manager puts it, in pursuit of their sustainability ambitions, they apply a range of architectural, engineering and energy efficiency solutions to their projects.

“Wherever possible, and according to the client's needs, we strive to create green spaces with design elements such as green roofs, internal gardens, atriums or building structures that blend into the environment and contribute to the preservation of the local ecosystem. It is fair to say that recently, more and more clients' long-term strategic goals are in line with Takenaka's, which is why we are jointly implementing our ambition to achieve carbon neutrality and increase the comfort of the buildings' use in the early stages of the project, which, I believe, is a very good direction for a more sustainable future and for meeting ever stricter environmental standards.”

Japanese R&D applied in Hungary Takenaka has the world’s largest state-of-theart Institute for Research and Development, established outside Tokyo in 1959. It is also the world's largest privately owned construction R&D center. “The activities of our research center ensure that we remain competitive as the Japanese construction market faces similar challenges to our own. In Japan, for example, there is a shortage of physical and skilled labor, and we also need to find construction technology and management processes that can respond to the continuous and increasing time/quality/price demands of our customers,” Hideki Tohyama notes.

It is a research center where a complete building can be constructed within the central laboratory, the structure of which can be tested for any earthquake situation up to the structural failure of the test building, or a bamboo mechanical/electrical/building automation solution can be tested and researched by combining architectural solutions. “For instance, in the acoustics research department of our R&D center, we designed and tested some of the world's best interior acoustics for the Tokyo Opera Concert Hall, or in the design of the 300-meter-high Abeno Harukas building in Osaka, we tested the effect of the city's wind conditions on the building and the building's impact on its surroundings in the air duct. How can the Hungarian Takenaka branch benefit from this theoretical and practical knowledge? If any building or structure in Hungary, which is different from the local design and construction practice and has the power of novelty, needs to be realized, TAK HU can use the professional knowledge of the parent company to realize the project in Hungary,” he adds.

Hungarian creativity

With almost a hundred employees in the Hungarian capital, the General Manager stresses that they rely on the common Japanese and Hungarian knowledge in everything they do, since, as he puts it, there is not only a considerable geographical distance between Hungary and Japan, but also numerous cultural and legal differences in planning, construction and management. “I could go on for days telling you interesting things about the differences, but our strength and success lies in combining the Japanese way of thinking and working culture with Hungarian creativity. I have to highlight the principle of reciprocity of knowledge and experience in our Hungarian-Japanese business combination, which is concentrated in the Takenaka Brand in Hungary.”

Looking forward to further challenges

Hideki Tohyama is proud that they deliver their projects on time, without any health and safety issues, thanks to the support of their clients and the perseverance of their colleagues who are dedicated and enjoy their work.

“We wish Hungary a continuously developing and growing construction market, where, as a Japanese company, we can set an example in the successful completion of projects to the full satisfaction of our clients. With the last 30 years exemplary in the Hungarian market, we look forward to the challenges of the future and go for the 50th anniversary,” he concludes.

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PROVIDING A TASTE OF JAPANESE CULTURE

THE JAPAN FOUNDATION OFFERS A NETWORK AND RELATIONSHIP OF TRUST

Established in 1972, The Japan Foundation aims to promote cultural co-operation between Japan and other countries. Its activities include exchange, research, study and art fellowships; support for Japanese language teaching institutions and support for the study on Japan.

“We are the only specialized organization in Japan that carries out comprehensive international cultural exchange projects in all regions of the world. Our aim is to create places that link Japan and the world through 'culture', 'language' and 'dialogue' and to foster empathy, trust and goodwill between people. We operate in three fields: 'cultural and artistic exchange', 'Japanese language education abroad' and 'Japanese studies and international dialogue',” the Director of the Budapest office of The Japan Foundation, Mami Fujii explains to Diplomacy&Trade.

Comprehensive support

She elaborates that in the field of cultural and artistic exchange, they organize film screenings, Japanese dance performances and concerts of traditional performing arts such as koto and shamisen, as well as support museums exhibiting Japanese art, music festivals and film festivals with grants.

The Foundation provides grants to universities, high schools, junior high schools, elementary schools and private language schools that offer Japanese language education, as well as support for teachers, such as teacher training by

Japanese language specialists and training opportunities in Japan. It also organizes the Japanese Language Proficiency Test (JLPT) in collaboration with local universities and offers Japanese language courses at its centers. In the area of Japanese studies and dialogue projects, fellowships are awarded to researchers conducting research on Japan to deepen their studies in Japan, and support is provided through grants for the holding of conferences and symposia.

2019, a diplomatic milestone

The Budapest office of the Foundation dates back to 1991. From these over three decades, the Director highlights the events of 2019 that marked the 150th anniversary of diplomatic relations between Japan and Hungary. “Over these one and half centuries, Japan and Hungary have developed close ties in a wide range of fields, including trade, business, academia, culture and sport, and 2019 was a very important milestone, confirming and deepening the ties between the two countries. The year was marked by visits by the President of Hungary, the Japanese Imperial Family and other key government officials to each other's countries,

as well as numerous cultural events in Hungary and Japan throughout the year, which showed how important the role of cultural exchange is in deepening the bilateral friendship between the two countries,” she says.

Important partners

Mami Fujii stresses that although they have budgetary constraints, they wish to support as much as possible Japanese cultural events here and Japanese-Hungarian exchange events. Important partners include local universities, museums and other cultural institutions, festivals, artists and professionals – as well as organizations like 'The Hungary-Japan Friendship Society' and EUNIC – with whom the Foundation has developed deep relationships over the past three decades.

She notes that in Hungary, there are many researchers with in-depth knowledge of Japan, and Hungarian specialists and artists who have acquired excellent skills in traditional Japanese culture, such as tea ceremony, ikebana, ceramics, shakuhachi, kimono, etc., and who are introducing them to the Hungarian people.

Another very important partner is the Embassy

JAPAN CULTURAL CENTER

of Japan in Hungary with which they have close cooperation. “The Embassy connects us with their contacts and networks.”

Not just Budapest, not just Hungary

Most of the events organized by The Japan Foundation, such as concerts and cinema screenings, are held in Budapest, but there are also opportunities for people to experience Japanese culture outside the capital. This March, a film screening was held in Kecskemét, and in April, a lecture by a professor specializing in sculpture invited from Japan was held at Pécs University. In June, online streaming of 23 Japanese films and two dramas with Hungarian subtitles are offered. The Foundation also supports local events such as Japan Day, film festivals and exhibitions through grants and the lending of cultural equipment.

The Budapest office is also in charge of cherishing Japanese cultural ties in a dozen other Central and Eastern European countries. Limited staff and budget do not allow for frequent business trips but collaboration with the Japanese embassies in those countries make it possible for several cultural events to be organized. “In the framework of such cooperation, we support cultural and educational institutions in the various countries with grants and fellowships,” the Director points out.

Impressed by Hungary, the Hungarians

She has been living in Budapest for three and a half years and says that “I am still impressed every time I see the city, the beautiful buildings, especially along the Danube River. I feel that –having grown up in such a beautiful city and having spent so much time surrounded by wonderful works of art –Hungarian people have an exceptional sensitivity to art and beauty. I would be more than happy if these Hungarians could experience Japanese culture and art and fall in love with it.”

She feels that Hungarians and Japanese have similarities in culture, such as the respect for courtesy and greetings. “Perhaps this is why I feel that many Hungarians are fond of Japanese culture, and I am very happy that so many people visit our events. I am also often surprised at the depth of their love and knowledge of Japanese culture, because once they fall in love with it, they love it to the hilt. When I hear that a young researcher whom The Japan Foundation has supported for many years is now the head of a department at a university, or that a Japanese language student has become a teacher and opened a Japanese language school, I feel that we have contributed to the development of human resources.”

The Japan Foundation Budapest, at a location of easy access in the Hungarian capital, has about 15,000 pieces of material about Japan, including books and magazines, as well as manga and audiovisual materials in Japanese. “In addition to hosting courses for learning Japanese, the Center organizes various events throughout the year to give people a taste of Japanese culture, such as film screenings, lectures, workshops and concerts. We also have various support programs, such as financial ones for organizing Japan-related events, support for teaching materials and salaries for educational institutions starting Japanese language courses, etc.,” the Director highlights.

According to a survey carried out every three years, there were 1,815 people studying Japanese in Hungary in 2021, not including self-study students or those learning privately and without institutional affiliation, so the actual number of people studying Japanese is likely to be much higher, she says. One way to support people interested in Japan and learning the language is to offer free learning courses online.

“We have a network and relationship of trust that we have nurtured over more than 30 years of activities, and we will continue to expand and deepen this network and relationship, and make efforts to deepen the friendly relations between our two countries in the future,” Mami Fujii concludes.

photo by DÁVID HARANGOZÓ

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AFFORDABLE, SUSTAINABLE MOBILITY SOLUTIONS

TOYOTA TAKES A DIVERSIFIED APPROACH TO CARBON NEUTRALITY

The Toyota Group, which incorporates the Toyota, Lexus, Daihatsu and Hino brands, sold 11,233,039 new cars worldwide last year, setting a new historic record not only for the number of cars sold by the Group but also for the number of cars sold by any single car manufacturer in a single year. The Toyota Group also maintained its market leadership in Hungary with record sales. Richárd László, Country Director at Toyota Central Europe Hungary Kft. tells Diplomacy&Trade about their secret of success, their diversified approach in terms of powertrains and how their mobility developments help the movement of Olympic and Paralympic athletes and officials.

“2023 was the second year in which Toyota was the market leader in the Hungarian new car market and the first year in which we won the passenger car market on our own. In total, that means 17,300 units sales and 13,5% in terms of market share. Both of those are historic records. In fact, we can say now, after the May figures, that we are maintaining our market leadership this year and have been able to further increase our unit sales, so, there is a good chance that we will have another record year in 2024,” the Country Director highlights.

The secret of success

The results achieved are mainly due to Toyota's very conscious model offensive. The Country Director points out that Toyota has not only moved up in sales ranking and share in Hungary over the last ten years, but also in Europe as a whole – so much so that it now ranks second in the overall European passenger car market. “In Hungary, as in the whole European market, the popularity of hybrid models is one of the driving forces. We are now selling the fifth-generation

hybrid powertrain, which is the backbone of our current passenger car range in terms of powertrain. 80% of our passenger cars sold in Hungary are now hybrid. In commercial vehicles, we obviously see more diesel orientation, but there, too, we now have electric powertrains. In recent years, we have seen new models in different variants of the popular SUV categories.”

Toyota has also made great strides in the corporate buyer market, where the willingness to buy is based on a very complex purchasing decision. He emphasizes that “Toyota has recognized – and we have made it absolutely important in our strategy in Hungary – the logic of total cost of ownership (TCO), which means that we have to position ourselves competitively not only in pricing, but also in services and maintenance costs, including fuel costs, where the hybrid gives us a huge advantage, and also in the residual value of the car. If you combine all these, a professional buyer can calculate that it is not necessarily just the purchase price that is important, or the discount achieved there, but the whole maintenance cost. Following this TCO logic, Toyota has been able to become the market leader in almost all segments.”

In Hungary, the company car market accounts for around 75% of new car sales. Toyota has two approaches to attracting corporate clients. “One is the range itself, which now fully covers the needs of fleet users, as we have a brand new and competitive range in every category from the smallest AygoX model through the Lexus brand to the most premium cars. In addition, our light commercial vehicle range is now complete. We have introduced a separate sub-brand, Toyota Professional, which will be expanded this year and perhaps complete our commercial vehicle range. In addition to the modern range, the business services offered are also important, which means that you need a sales service trained to the needs of business users, a background with consultants – we can provide all that. We now have business centers in dealerships that deal exclusively with business customers,” he stresses.

Diversified approach

Toyota has been selling hybrid cars in Europe for more than 25 years, since 1997. The company is confident that this technology is the most

sustainable, uncompromising electromobility solution available today. “We are also developing fully electric or plug-in cars, of course. The first mass-produced plug-in was our Prius model. Other alternative zero-emission solutions include the fuel cell hydrogen-powered model, the Toyota Mirai. It is available in Hungary, but so far, this country does not have a hydrogen filling station, only a test station. We hope – and we are working – to have such charging stations available as soon as possible, because for a certain user group, hydrogen cars will be a perfectly logical and perhaps the best, most rational choice. These vehicles are specifically designed for long distance journeys, they can be fully charged in a few minutes and can cover a range of practically 600 kilometers with zero emissions,” Richárd László highlights.

Multi-legged, the company’s diversified approach to carbon neutrality is a testament to Toyota's strength. “We are the only manufacturer to mass-produce the most popular powertrains: hybrid, plug-in hybrid and all-electric along with hydrogen technology. This multipath approach confirms a result of Toyota's global strength, as the underlying development work and the money to finance the costs are available here,” he adds.

Sustainable mobility solutions at the Olympics

Toyota has an Environmental Challenge 2050 global strategy, which summarizes the company's environmental ambitions. “Briefly, it means that we want to make both our production and emissions of our cars completely carbon neutral by 2050. Another promise of our social responsibility is to bring mobility closer to the customer, which means offering affordable, sustainable mobility solutions for everyone” the Country Director notes.

Sustainable mobility solutions will also play an important role in helping Toyota, which is a mobility partner not only for the Olympics but also for the Paralympics, to live up to this commitment even better and to give athletes and officials a chance to experience what mobility service means in Toyota's understanding of the Paris Games this year, as they did at the previous Olympics in Japan. In addition to the classic cars and minibuses, there are also self-driving vehicles that will move the various members of the Olympic movement around the city or the Olympic Park. Toyota also offers a range of zero-emission vehicles for short-distance mobility. “Electrically powered scooters are obviously a help to athletes in a crowded urban environment, as are the vehicles that my colleagues have developed specifically to support the mobility of Paralympic athletes,” he says. Among the beneficiaries are 28 Hungarian sportsmen and women. They can enjoy classic mobility services, i.e. private cars and their use. “These athletes have been selected in cooperation with the Hungarian Olympic Committee and the Hungarian Paralympic Committee, and their preparation is supported by the use of CHR cars, which is a great help for them, because they go to different trainings, training camps, with environmentally friendly, low-consumption hybrid Toyota CHRs, so their mobility is guaranteed in this respect. We now hope that they will reward this with very good results, including many gold medals,” Richárd László concludes.

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A JAPANESE CULINARY MAESTRO IN BUDAPEST

EXCELLENT SUSHI IS ALL ABOUT THE QUALITY OF THE FISH USED

In the spring of last year, the selection at Wolfgang Puck’s iconic restaurant, Spago, in Budapest was expanded with an authentic Japanese sushi menu. Entrusted with this great task was chef Tetsu Yahagi, Director of Culinary Development and Operations at the Wolfgang Puck Fine Dining Group.

Chef Yahagi, with more than 30 years of experience in the art of sushi making, points out to Diplomacy&Trade that “it was important to bring a creative approach with attention to detail and delicious flavor combinations to every dish. We wanted to create accessible yet authentic dishes for the Hungarian audience.”

He adds that at Spago, the original Japanese sushi is made with the freshest fish of the highest quality, but they stay within the Spago concept. Under the professional guidance of Wolfgang Puck, sushi is prepared in a more international and understandable way, while the ingredients and techniques follow the traditional line. The menu is divided into two parts as, in addition to the traditional sushi rolls, there are also unique and creative options on the menu under the heading of freshly marinated dishes.

The menu also features dishes that have been a hit at other Spago restaurants around the world, such as the scallop ceviche with pickled green beans and Thai chili and garlic sauce from Hawaii, or the California Roll with tarragon, masago and avocado, also from the island state.

Celebrating the beauty of imperfection

In Japanese culture, the tactile and material qualities of objects are just as important as their visual appeal. They try to appeal to the whole of people’s perception and to create harmony within

it. Tetsu Yahagi specifically requested that the sake cups be made of materials of different fineness, shape and thickness. It's a very different experience to drink from a thicker, closed, coarser stoneware cup than from an open, silky porcelain cup, he says. The aim is to allow the guest to experience these differences. Being close to nature was also an important consideration in the design of the tableware. One plate evokes the sight of a lake in the mountains, another of snow melting in the fields. These objects celebrate the beauty of imperfection, he explains.

“We worked with ceramicist Ádám Szabó for a year and a half. When serving sushi and its accompanying sake, it was very important that each object had a unique, different character. I believe that just as we are not all the same, our plates should also be different. We found common ground with the artist very quickly as he used a Japanese firing technique, high heat wood-fired ceramic firing, which we specifically asked him to do.”

No compromise

Sushi is probably the best-known dish of Japanese gastronomy. Explaining the secret of its popularity worldwide and the ‘tricks of trade’ of doing it well, chef Yahagi stresses that when it comes to sushi, it's all about the quality of the fish, you can never compromise on that.

“Fortunately, I have to say – and I am very much delighted about it – that it is surprisingly easy to get them here in Hungary. We manage to get fresh ingredients of quite high quality from France, Italy or even Japan.”

A career spanning continents

Tetsu Yahagi was born in Japan, but spent an early part of his life in the U.S. when his family moved to California. He decided to become a chef when he discovered the book ‘Adventures in the Kitchen with Wolfgang Puck’. “After reading the book, I asked my parents to take me to Spago, where Wolfgang personally signed it.”

The Yahagi family returned to Japan and in Tokyo, he enrolled in a French-Japanese based cooking course. “After the training, I had the privilege of traveling to France and learning about French high gastronomy in Lyon. My next stop was the three Michelin-star Restaurant Lameloise in Chagny, where I spent a year.

I went back home again, specifically to work in a French restaurant, and then came the news that I couldn't believe at first: it was 2004, and Wolfgang Puck was preparing for a new opening in Tokyo – that was about to make my dream come true,” he points out.

Tetsu Yahagi had a head start there because he already spoke good English. He was hired, made the starting team, but after a few years of hard work, he was looking for a new challenge. He wanted to work in Beverly Hills, in the world's first Spago restaurant, where he had been first touched by this profession. However, he didn't have a work visa and thus, he couldn't get paid legally for his work, and he spent three months commuting between the Spago kitchen and his hotel room. Then came the breakthrough: he was

offered a job, which meant he could settle down in the United States as a sous chef at Spago. Later, he became chef de cuisine before another huge opportunity came up as Spago closed in 2012 for a complete renovation and refurbishment. “I wanted to spend those few months by learning in Europe. Mr. Puck liked my idea, called some friends and soon, I found myself in Fat Duck in the UK, Arpège in Paris and Berasategui in the Basque Country. It was a great experience, as it was then returning with my renewed knowledge,” he recalls.

In constant contact with the chefs

As the culinary development director of the Wolfgang Puck Fine Dining Group, Tetsu Yahagi is in charge of the culinary concept and activities of 11 restaurants worldwide “from London to Istanbul to the Middle East, but we also have units in the US and Singapore. I'm practically always on the road, staying in a city for longer or shorter periods depending on the assignment I'm given.”

At the Wolfgang Puck Group, he checks and supervises the recipes and he is also in constant contact with the chefs. “I have very talented chefs around the world who don't need me physically in their kitchens. It's the same with István Szántó, who runs the Spago Budapest kitchen at Matild Palace in Budapest, I don't have to be here all year round. I see the chefs all the time and I call them from time to time and visit them at least quarterly. I go project by project, so I talk to each chef at least once a week. And when we have projects, like now here in Budapest, we're launching the lunch menu offer at Spago on weekdays, the business lunch, we're introducing Sunday Brunch on Sundays, then, of course, I have to come here and focus on that. If you ask me what the concept of Spago is, it's to make everyone happy and to give guests a great restaurant experience,” he highlights.

Creative wizard

Chef Yahagi is often described as a ‘creative wizard in the kitchen’. For him, all it means is that they make simple food, however, there is a lot of work behind simplicity. “With a little exaggeration, the only thing we don't do is catch the fish or butcher the cow. It might just be a plain mushroom pappardelle pasta, but it's going to be the best handmade pasta, prepared with the best flour you can find on the market. It's what sets Spago apart from the rest, and it's a big responsibility.”

And that’s not all. He underscores that they use the best ingredients and try to stick to locally sourced ones. “When we are at Spago Beverly Hills, we source the best local vegetables that California has to offer, or even small fowl like pigeon. We're known for salmon at Spago Beverly Hills, but if salmon isn't the best fish in Singapore or Turkey, we don't use it there. They have beautiful bluefish, big turbot, etc.,“ Tetsu Yahagi concludes.

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A STYLISH, SPORTING, DYNAMIC OPTION

Lining up between HR-V and CR-V, the ZR-V is aimed at young, image conscious buyers who seek a stylish, powerful and fun-to-drive vehicle that can seamlessly integrate into their life.

Punchy, responsive acceleration

Beneath the sleek, stylish exterior is Honda’s full hybrid technology that shares DNA with the multi-award winning all-new Civic e:HEV. Acclaimed for its dynamic attributes, the Civic has proven that full hybrid vehicles can be engaging and fun to drive and the ZR-V extends this logic to the SUV C-segment. Optimized for the ZR-V, the e:HEV’s efficient yet powerful 2.0-liter, fourcylinder direct injection Atkinson cycle engine works in conjunction with two motors to provide punchy, responsive acceleration.

Effortless yet rewarding steering

The bespoke, lightweight, rigid chassis has been inspired by concepts seen in both the Civic and CR-V platforms, and has been engineered to deliver the driving characteristics and high levels of agility usually associated with sports hatchbacks. Steering is effortless yet rewarding thanks to a refined feedback control logic and low-friction components, whilst the multi-link rear suspension and optimized bushes ensure a comfortable yet engaging drive that boosts confidence and comfort behind the wheel.

Strong road presence

With its purposeful stance, noiseless surfaces and a bold front face, the ZR-V gives a strong road presence that perfectly complements its dynamic performance. The slimline headlights and stylish gloss black grille create a sophisticated aesthetic, which is continued down the SUV’s noiseless flanks and into the bold rear bumper design, with sleek horizontal taillights that neatly integrate into the tailgate.

Functionality in design was a key focus for Honda engineers, with each panel and component optimized to aid visibility and enhance aerodynamic performance.

Load-carrying versatility

The ZR-V’s compact package provides exceptional space, practicality and comfort, delivering optimal functionality for ease of use and creating a versatile cabin that prioritizes usability and flexible stowage capacity. This is typified by a vast array of trays and pockets, alongside a rear cargo space that features a load partition, retractable parcel cover and under floor storage, boosting the ZR-V’s load-carrying versatility up to 1,291 liters.

Premium ambience

The SUV’s class-leading interior experience is further enhanced by impressive levels of comfort and convenience. High-quality soft-touch materials with detailed finishing combine with stylish lighting throughout the cabin to create a premium ambience. In addition, multiple charge points and the latest HMI technology keep the driver and passengers connected to the outside world via a large nine-inch touchscreen in the center of the upper dash panel, which stretches across the front of the cabin to enhance the sense of lateral space.

Supporting busy, active lifestyles

“The all-new Honda ZR-V has been designed and engineered to support busy, active lifestyles, and is a compelling addition to our SUV line-up,” according to Yutaka Kato, ZR-V Large Project Leader. He also highlighted that “combining day-to-day functionality, exceptional comfort levels and appealing design with sporty dynamics and our exceptional e:HEV hybrid powertrain, this is the perfect evolution of our European model range.”

The all-new SUV model Honda ZR-V bridges the gap between HR-V and CR-V, blending sporting looks, rewarding dynamics, high levels of practicality and a premium interior while also offering sophisticated styling and a purposeful driving experience, automotive experts say. Its tailored e:HEV hybrid powertrain delivers a dynamic yet highly efficient driving experience that offers outstanding real-world economy.

HONDA SUV LINE UP EXPANDED WITH ALL-NEW ZR-V MODEL

japanese focus

HUNGARY-JAPAN: MORE EVENTS IN 2024

BILATERAL TIES FURTHER STRENGTHENED

This year presents several anniversaries in Hungarian Japanese relations: the Hungarian cultural institute in Tokyo began operation five years ago, the Kecskemét-Aomori Friendship Circle was established 30 years ago while this June saw Japanese Days in Budapest.

Hungarian-Japanese bilateral ties are constantly improving and this year also holds important anniversaries and events.

Presenting Hungarian culture in Tokyo

The Hungarian Cultural Institute in the Japanese capital opened in December 2019 to mark the end of the year commemorating 150 years of the establishment of diplomatic relations between Hungary and Japan.

The institute, located in a central part of Tokyo, is open to the public and hosts Hungarianrelated exhibitions, performances and chamber concerts, propagating Hungarian culture to the local audience. Visitors can also try out, for example, a new Hungarian development, the TEREMTec virtual exhibition space. Since September 1, 2021, the new name of the

institution has been the Liszt Institute Hungarian Cultural Center Tokyo.

Twin town friendship

The Kecskemét-Aomori Hungarian-Japanese Friendship Circle is 30 years old. To mark the opening event of the anniversary year's series of events, a Sakura celebration was held in the local Aomori Park in Kecskemét, E Hungary, earlier this year.

It took place on April 21 as this is the time when the trees in Aomori, Kecskemét's twin town in Japan, are in blossom. Hungarians in the Circle recognize that the Sakura, which means cherry blossom, is a very interesting motif, as it is a symbol of spring, rebirth and life.

The celebration was attended by Ozaki Takeshi, Secretary General for Culture of the Embassy of

Japan in Hungary, who said that he hoped that such events would further deepen the relationship between the Japanese and Hungarian people and between the two countries.

Japanese Days in Budapest

Early June, the Museum of Ethnography in the Hungarian capital held Japanese Days opened by Ambassador Hikariko Ono of Japan. After the opening ceremony of this joint event by the museum and the Hungarian Japan Friendship Society, Japanese music and classical Japanese culture were featured, visitors were able to buy a variety of items, including Japanese teas, drinks,

sweets and ornaments, as well as attend lectures and other activities. They could learn about ancient Japanese musical instruments such as shakuhachi or koto; the world of Japanese kimonos; the secrets of success in Japanese martial arts; Japanese calligraphy; Zen Buddhism; breathing Japanese gardens; Japanese craftsmanship as a spiritual enterprise; the emergence of samurai culture in the Star Wars films; or the role of luck in Japanese culture.

Workshops included topics such as traditional Japanese wrapping cloth, furoshiki; dragon making for young and old; origami; and Japanese tea ceremony and tea tasting.

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automotive

A conference on the challenges, trends and current changes facing the automotive industry and trade in Hungary was held in Budapest this spring, with the participation of top executives from the Hungarian automotive industry and automotive trade. The event was the brainchild of automotive expert Zsolt Bujáki who highlights to Diplomacy&Trade the necessity of creating such an event, the overtly provocative title of the conference and the reassuring feedback urging him to continue with the project.

“I started thinking about the idea of the Budapest Automotive Summit last November and I noticed, having analyzed the Hungarian conference market quite thoroughly, that although there are a lot of automotive conferences, which are mainly looking at the manufacturer side, the supplier side, green innovation, technology and researching the topic, nobody has put the automotive industry and the car trade into focus. It was a blank spot that I tried to concentrate on from the beginning. I shared my ideas with very important people, whose opinions I respect, and they absolutely validated the concept – something that no one had ever done.

A 2035 EU law

The title of the conference 'Are we running into the wall or can we still swerve the steering wheel?' is overtly provocative. The organizer says the reason for that is that “It is widely recognized within the industry that the automotive sector has significantly changed its course since the diesel scandal nearly a decade ago. Previously, there was an organic development, driven by the market, the industry and technology. Then, the scandal caused a marked break in this development as regulators appeared, politics appeared, lobbying circles appeared, basically imposing themselves on the automotive industry and, in particular, forcing the German economy to change its approach, and within this, its pillar of rock-solidity, the automotive industry, which it might not have done organically.” Emphasizing electromobility, the regulators and the politicians quickly created a law in the European Union to phase out internal combustion fossil fuel engines (petrol, diesel) by 2035 – a law that is hanging over everyone's head: internal combustion engine can stay but only with synthetic fuels, which are not suitable for mass production according to current knowledge. “In the automotive industry, as it was also emphasized at the conference, the 11 years left until 2035 is not a lot of time. There needs to be an answer to whether this new regulation will stand or soften up. In this respect, I think that all players in the automotive ecosystem – manufacturers, dealers and customers – must be prepared for what is coming. The campaign for the EU parliamentary

A TREND-TURNING YEAR IN AUTOMOTIVE?

RUNNING HEADS AGAINST THE WALL – OR CAN STILL SWERVE THE WHEEL?

elections featured different political groups in different countries trying to lobby either for the 2035 deadline or against it, with a lot of political forces driving politics into the economy, including the automotive issue. So, I think that by the fall this year, will either have risen, revealing that this deadline will have to be postponed, softened, restructured, or it will remain as it is,” Zsolt Bujáki adds.

Honest and open talk

One of the aims of the conference was to dispel – or at least discuss – the many uncertainties concerning the automotive industry. As the organizer puts it, “it is very important that we finally talk and communicate without bullshit, and I have made a very strong request to all the

speakers and participants to talk honestly and openly about the problems, even if it hurts. And this has come back to me because I have received so many comments following the event that things have finally come out in the open, without any mumbo-jumbo about these otherwise quite gloomy, ominous forecasts and visions of the future. Anyway, it was not a soul-lifting, uplifting morning when these facts were stated by politicians, businesspeople, geopolitical and foreign policy analysts who said that politics is very much behind everything.”

Presenting the big picture

When talking about selecting the topics and the speakers, Zsolt Bujáki finds it important to mention his intellectual partner, Gábor Várkonyi,

an expert on the car market, “with whom I agreed on the themes from the very first moment. We came up with the idea that the first part of the conference would be about global content, so we could present the big picture. For this, we had a representative of the government, the Managing Director of the oil company MOL and a talented foreign policy analyst present for us. Moreover, we saw Mckinsey's presentation of a wonderful automotive study and a Chinese landscape presentation by a Hungarian journalist who took the trouble to go to China and write about his experiences and research there, basically describing the Chinese entry into the world and into Hungary.”

In the afternoon came a discussion of the problems affecting the domestic car trade, largely the result of global problems, and how businesses should respond to them. All this came up in abundance in two round-table discussions.

State objectives

The Hungarian government, in particular, has an important position on these regulatory issues. “It was Gergely Fábián, the State Secretary for Industrial Policy and Technology, who gave the opening speech, and he emphasized what we have known for months, and for a couple of years now, that the automotive industry is the absolute pillar of the Hungarian economy. So, the point is that the state is pushing this very hard and is very much looking forward to electric developments, battery factories and assembly plants as they wish to see Hungary among the top three car manufacturing regions in Europe. This is a national strategic goal – it has been stated so. Practically, it was the motivation for the conference that electromobility will be supported here to some extent; the charging infrastructure will be supported while state subsidies are already available for electric cars. I believe that this is a significant investment and subsidy from the state at a European level,” the summit organizer states.

A resounding success

Assessing what was said and what the resonance of the event was, Zsolt Bujáki gladly highlights that he is very much excited “because all my ideas and all my dreams for the conference have come true. On the one hand, the quality of the speakers and their preparation gave a very strong support, the program was well put together and the high level of interest that surrounded the conference was quite impressive – we had a full house. This means that at times, there were 240 of us in the room and it was a resounding success. On the other hand, the feedback could be felt very viscerally from the applause and from the in-person congratulations and e-mails I've been getting ever since. So, I'll filter that down to the fact that it probably worked. The conference is said to be a missing link and there is simply a lot of pressure on me to continue it, because there is an expectation that something of this level should be continued.”

MONEY MUSEUM IN THE HEART OF BUDAPEST WELCOME BOTH CHILDREN AND ADULTS. From the Panoramic Terrace of Money Museum’s the views of Buda can be admired.

OPENING HOURS From 1st of June

sustainability

HOW TO MAKE THE LABOR MARKET FUTURE PROOF?

EXPERT STRESSES THE NEED FOR CHERISHING TALENTS AND HUMAN-CENTRIC APPROACH

The theme of a recent business breakfast and forum by the Business Council for Sustainable Development in Hungary (BCSDH) in Budapest has been "Human values in the economy." The event’s guest speaker was Sonja van Lieshout, President of the World Employment Confederation Europe and Global Head of Public Affairs at Randstad.

Explaining the title of her presentation (‘How to make the labor market future proof?’) to Diplomacy&Trade, Sonja van Lieshout stresses the importance of making sure that people have access to social protection at all time, regardless of their type of employment contract. “Second is, of course, making sure that we unlock the pathways to skilling and vocational training and also that there are fair, balanced and appropriate regulatory frameworks in these digitalized times because this era is definitely here and not going to go away. They are posing both opportunities as well as challenges. In order to make sure that there's a level playing field, we need those balanced regulatory frameworks to ensure that we are using it in an ethical and responsible way.”

Multiple challenges for business leaders

She agrees that it is quite a challenge for corporate leaders to provide all these and keep the employees satisfied, “especially with the current talent shortages, which is also dominating the Hungarian labor market, of course. In order to attract the right talent, you need to have those packages what I would call primary and secondary labor conditions and terms that need to be attractive. So, I think it's a very big challenge for business leaders to make sure that you are able to attract the right talent, to retain them, and while doing that, also ensure that they have the right skills when it comes to digitalization and the greening of the economy. I think there are multiple challenges out there for business leaders to top their agenda.”

Cherishing talents

Regarding the title of the BCSDH forum – ‘Human Values in the Economy’ –, the guest speaker expresses her view that “everybody wants to feel that they have a purpose in life. They want to have that sense of belonging. So, when we are talking about talent in general, not only young, but also our current talents within the labor market, everybody is very much looking to connect and to feel part of a community. It has especially been so

when coming out of the pandemic situation where everybody was working individually at home. They are now very much looking forward to feel connected again to society, to be able to feel being part of a community, community being work itself in general. This is the situation at the labor market – the world of work, as we say –where people really have that connection. So, I think there is a lot that business leaders can do to drive this – and to support it as well.”

Health and well-being journey

Financial benefits, of course, constitute very important means of appreciation towards employees but Sonja van Lieshout also emphasizes the need for focusing on health and well-being. “We see more and more employees turning to their employers for help to support them in their health and well-being journey. So, we see sometimes business organizations

offering membership to a gym, for example, or they are creating groups of people to go running with their colleagues, or they can learn Spanish with their fellow staff members. It's things like that where they can support them in their health and well-being in order to thrive in life.”

Human-centric approach in Europe

When asked in her capacity as President of the World Employment Confederation in Europe whether companies on this continent are different from the rest of the world in handling employment issues, her answer is a definite ‘yes’.

“One thing that I'm super proud of here in Europe is that we are putting the human capital at the forefront of all discussions, meaning that we look at it from a very social aspect. In the ESG (Environmental, Social and Governance) framework used to assess an organization's business practices and performance, the ‘S’ is

definitely one of the big drivers when we are talking about this within Europe compared to other parts of the world and how we organize it to benefit society and business. Another thing I’m very much proud of is that within Europe, we are putting the human capital, the talent at the very forefront of the discussion: ‘what do they need in order to thrive in life?’; ‘how can we make sure that they have access to social protection?’; ‘how can we make sure that they have access to training possibilities?’ So, it's a very humancentric approach here.”

Taking sustainability seriously

At Randstad, one of the issues Sonja van Lieshout focuses on is sustainability, which is a frequent buzzword nowadays. The question is how seriously it is taken by employers because sustainable operation may come at an extra cost to businesses but, at the same time, is appreciated by customers and business partners. She underlines that “at Randstad, it's taken really seriously. It was back already in 2010-11 that we started with our sustainability reporting framework, which shows how serious we are about that as a company. With our new partner for talent strategy, as we call it, we really want to be an equitable and talent specialized company. This is only going to become more important because the new talents, as I said, want to have a purpose in life. They are very much focusing on sustainability to be part of the company they work at and on how they do their job. So, for us as a company, it's a super serious issue in order to be one of the frontrunners in that specific field.”

Reaching out to stakeholders

Another focus at her company is what they call strategic stakeholder engagement, which, she says, is part of their advocacy and lobbying activities, “making sure that we reach out to the relevant parties within the labor market in order to have discussions on sustainability, on skilling, on training and access to social protection. That's not an individual responsibility but a joint one. It means that we need to reach out to stakeholders like policy makers, politicians in the governments, and it also means that we need to have an open and constructive dialogue with our counterparts like the trade unions who represent the workers, for example. And only by bringing together all those parties can we have an informed and a constructive dialogue on where we feel that the world of work should be moving towards.”

Maintaining a level playing field

As President of the World Employment Confederation Europe, the main objective for Sonja van Lieshout is to contribute strategically to the development of the employment and recruitment industry both globally and in Europe. “One of the challenges that I'm definitely experiencing is that we see the growth in diverse forms of work and that politicians and policy makers are focusing up on the number of flexible contracts put in the labor market when, in fact, the number of temporary agency work contracts have remained the same over the past 15-20 years, whereas the amount of selfemployed contracts have increased significantly. So, how do we make sure that we maintain that level playing field that we have a discussion on? Yes, we need diverse forms of work, but also, we need people to have access to social protection. All these should definitely be part of the discussion,” she concludes.

culture

Filipino singer Marcelito Pomoy, known for his ability to sing in both baritone and mezzo-soprano, has recently performed in the Hungarian capital. Now, he tells Diplomacy&Trade about how he discovered his unique talent, how others discovered his unique talent, what it means to be promoted by a Hungarian agency and what he always dreamed about to amaze his audience.

A SINGER WITH TWO VOICES

FROM GUARDING CHICKENS TO PERFORMING ON STAGES WORLDWIDE

He recalls that “it all started when I was looking after the chickens at home and, imitating them, tried to sing in a male voice and then in a female voice.” It was then that he realized what a special voice, what a special talent he had. He also came to be aware that this voice had to be taken care of. Actually, he does this in a very simple way: he does not drink alcohol, he does not smoke, he gets enough rest, he sleeps a lot and he makes sure that he doesn't get too much pressure or stress.

An emerging talent

Marcelito Pomoy became known to the public as a participant of his country's TV talent show, the Philippines Got Talent competition, in Manila back in 2011. He explains that it was his own idea to apply to be able to show the television audience that he does not only have a great male voice for singing but a strikingly convincing female soprano voice as well. “I remember we had to perform late night – I had a lack of sleep due to singing at 2 o’clock in the morning. But it was worth it because I was selected – after the preliminary stage – for the actual TV show.”

There came the big opportunity

The singer also participated in a TV talent show of much wider audience – that of the United States. “That was a very big difference,” he remembers. As for the circumstances of being invited to the American television program, he says that “I really don't know because it is my wife who handles my social media sites. One time, she received a request from a staff member of the America's Got Talent show that ‘I would like to invite Marcelito Pomoy to join the competition America's Got Talent’. When she told me about it, I was shocked: could this be true? Because, you know, there are a lot of scams. Fortunately, the invitation turned out to be true and two days later, I received a plane ticket to the United States. All the expenses were covered. I realized it was a very big opportunity for me that time.”

A different audience

As for the difference between singing at home –in the Philippines – and performing in the United States, he notes that “actually, the biggest difference is between the American audience the Philippine audience. I was used to – and comfortable with – the audience in the Philippines, so, I did not feel nervous there. However, in the United States, it was not Filipinos watching me. Sometimes, I just explained that ‘I am so sorry guys, my English is not really good because I didn't have proper language education, I have been practicing to speak English because so many people are watching me tonight’, things like that. But they said it was okay, my introduction was fine.”

Promoted by a Hungarian agency

This March, Marcelito Pomoy signed a new agreement, a new contract with Roland Horváth, the owner of the Hungarian agency Koncertpromo and the founder of BRICS Entertainment Dubai-based promoter and management agency, which actually signed Marcelito to organize his concerts internationally. Speaking of the motivation factors for commissioning this agency for the job, he stresses that “first of all, I’m very thankful for this opportunity. I still can't really believe that I have a European, actually, a Hungarian person to manage my career. Roland has trust in me, in my voice and in my performance. Actually, he contacted me last year saying that I needed to get here and have a show in Europe. However, before we were to sign a contract, he needed to see me in person to see what impression I would make.”

The first outcome of the agreement between Koncertpromo and Marcelito Pomoy was a performance in Budapest this May, a performance that was not a simple concert but a show with a big orchestra. “That was a dream come true for me, something I had only dreamed about before. We need to amaze the audience –that’s what people want to see.”

photo by RICHÁRD

witty leaks

L E A K S

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

FEELING LIKE AT HOME IN HUNGARY

SIMILARITIES INCLUDE LOVE FOR FOOTBALL, PEOPLE’S FRIENDLINESS, TASTE FOR GOOD FOOD

THE AMBASSADOR OF COLOMBIA, IGNACIO ENRIQUE RUIZ PEREA

After almost two years in Hungary, and not only in Budapest because I have had the opportunity to discover the country, and after having spent two winters and facing the strong summer that will arrive soon, I can make an evaluation of my stay in Budapest and I reveal with great pleasure and joy that the result is flattering and the acceptance rate is high, even superior. Life in Hungary is very different from Latin America, but I can't deny that I have felt like at home.

A country with seasons

First, I have now fully accepted and understood what a country with seasons is. Colombia, located in the torrid zone, near the Earth's equator, lacks seasons: if you were born in a cold city (like Ipiales, Tunja or Sogamoso), you will have the same cold temperature all year. Now, if you were born in a region such as near the valley of Magdalena River or on the Caribbean coast (like Honda, Montería or Riohacha), you will live all year under a tremendous sun and a temperature of 30 to 35 degrees Celsius. It's like that. There are no seasons. You will only see snow in movies or when following the Winter Olympics on television. You will only read about the fall of leaves in the fall in a poem by Sándor Petőfi or Endre Ady, and the flowering of nature and the allergies of spring will be totally unknown to you. You will only find described with details the rigor of summer and the extreme heat in the vibrant pages of ‘100 Years of Solitude’ or ‘Love in the Time of Cholera’ by Gabriel García Márquez. A few years ago, Hungary was a country almost unknown to me, barely placed on a didactic map of Central Europe that I studied in geography class back in primary school, or perhaps imagined as the scene for those classic World War II films, with the constant and intense chase of spies in suspense movies.

Football put Hungary on the map

Because of football I did identify Hungary widely. The football encyclopedia referred to Puskás – the great Puskás, Kocsis, Czibor, Kubala, to the inexplicable world final that they lost in 1954, and later to that beautiful football that made such memorable names like Mészáros, Bálint, Csapó, Fazekas, the scorer Törőcsik or the brilliant Tibor Nyilasi of that Hungary that played in Argentina in 1978, at the first football World Cup that we were able to see in color transmission in Colombia. And football continues to be one of the topics that has strengthened ties between Hungary and Colombia. We remember how a group of Hungarian players, after the 1956 revolution, left Hungarian territory and ended up in some South American countries. In Colombia, led by the young figure of Imre Dankó, who had replaced Kubala

in the South American adventure, the Hungarians arrived in the hot Barranquilla and Santa Marta on the northern coast of Colombia, and founded two football clubs. This latter city even had as a representative in the nascent Colombian professionalism the Club ‘Deportivo Samarios’, where Creole players shared training with foreigners who spoke about Debrecen, Miskolc or Győr, all under the guidance of the brilliant Gyula Zsengellér. Today, world football has brought together

a Colombian and a Hungarian in the Premier League, and fans of the Liverpool team can enjoy watching Dominik Szoboszlai making a through pass that exploits Luis Diaz's run down the left side of the field.

Further connections and similarities

From football to politics and from there to religion, the similarities and coincidences between Hungary and Colombia emerge without any problem. We remember that the admired Cardinal József Mindszenty, after his notable actions in this country and in his historical journey through the American continent, he performed the last mass in South American territory precisely in Bogotá, in 1975. A commemorating plaque of the birth of the aforementioned Hungarian cardinal remains in the Colombian capital. Not far from there, we can find the

parish of Santa Isabel de Hungría and the school of the same name, and we have to mention several restaurants where you can eat a delicious Hungarian goulash, proudly displaying the name of this country, which every day is closer to Colombians. If I mention that I have felt like at home, I am not exaggerating. Budapest, walking through its streets in these almost two years, has taught me things that remind me of everyday life in Colombia: the friendliness of its people or the taste for good food. I also see things that remind me of the Colombian idiosyncrasy, such as the visual pollution of hundreds, thousands, of banners and political billboards in the imminence of the elections, the variety of its commercial premises and the ingenuity of those who manage them, the not very fortunate and useful bicycle routes full of home delivery drivers who go from pirouette to pirouette, from red light to red light, balancing to deliver on time. There is also the similarity in responding to requests for various services, something is deeply rooted in Hungarian and Colombian human beings: the way in which we persistently complain about so many things that do not work on everyday life.

Not as far as 9,848 kilometers But it has also helped me compare and contrast things on a daily basis, such as the smoothness of the traffic on the streets of Budapest with the hurried and disorganized driving in Bogotá or, also, the almost non-existence of motorcycles compared to the hordes that flood the Colombian streets. And something that I have liked since the first day I noticed it, and I have not seen it in another country: the flashing of the emergency lights as drivers thank another person for having given way. Comparisons, similarities and differences. It is inevitable to do so: we are foreigners and we live in a different environment – nice, but different. But seeing that Hungarian is not entirely distant from Spanish and that there are similar words, or feeling the attraction for literature and the Spanish language in Budapest, or seeing that Colombian coffee still has a showcase in Hungary, these are experiences that have made me feel good, that have allowed me to reflect: there are many more things that unite us than those that separate us, beyond the 9,848 kilometers which is the distance from Budapest from Bogotá.

gastronomy

AN ARTISAN OF FLAVOR

ANDALUSIAN STAR CHEF HAS UNIQUE IDENTITY REFLECTING CULINARY VISION

Dani García is one of Spain's and the world's most famous chefs, who will soon be adding two restaurants in Budapest to his international portfolio of 20 restaurants under 12 brands. The building, which also includes the Dorothea Hotel, operated by the Marriott Group's premium brand Autograph Collection, will be home to the local BiBo and Alelí Budapest, which opened on May 15. The first of the two Marbella brands only available in London and Doha.

Chef Garcia’s culinary journey has been nothing short of remarkable since the founding of his enterprise in 2014. With the opening of 20 restaurants under 12 distinctive brands and the attainment of high accolades, including prestigious Michelin stars, his impact on the culinary world is undeniable, being the driving force behind the creation of such a diverse portfolio of dining experiences. He has made sure that each restaurant maintains its unique identity while reflecting his culinary vision. As to how he is able to ensure consistency, quality and innovation across all his ventures while maintaining the essence of each unique dining experience, the chef tells Diplomacy&Trade that “embarking on new projects with my team is both enjoyable and challenging. It's common for companies to diversify their brand portfolios. I posed a question to my team:

‘would they prefer the routine of crafting an annual menu in a fine dining restaurant or the adventure of exploring different cuisines around the globe?’ Opting for the latter not only enriches our experiences but also opens up new ways for growth. Our approach to developing brands is marked by a commitment to uniqueness and innovation. This diversity in our brand offerings ensures flexibility and caters to a range of tastes and preferences. For instance, the decision to introduce Aleli at the Dorothea Hotel was driven by the demand for an Italian dining experience.”

Desire to expand horizons

Dani Garcia has navigated both fine dining and casual dining realms with finesse, evident in the diverse portfolio of restaurants he has established. Elaborating on his philosophy regarding the distinction between fine dining and casual dining, he explains his approach towards the creation of culinary experiences within each category and the factors that influence his decision-making process when conceptualizing new dining concepts.

“Fine dining remains a mystery to most. While it may seem linked to price, it transcends mere cost. Acquiring expensive ingredients for a dish is

straightforward, but true finesse lies in transforming humble elements like vegetables, such as a tomato, into extraordinary culinary experiences. Quality ingredients, chef expertise, culinary techniques, portion sizes, and ambiance all converge to define fine dining.” He adds that when he decided to close his 3-Michelin-Star restaurant, it wasn’t an easy decision. He adored the world of fine dining – it was exhilarating and took him to many corners of the globe. “However, over time, I got tired of its superficiality and monotony. I yearned for more depth in my experiences, a desire to expand my horizons beyond the confines of haute cuisine. This realization led me to explore other culinary avenues, to learn, to discover new things that fine dining would have never let me do.”

Fascination with culinary arts

The culinary master is a first-generation chef. He recalls what attracted him to this profession in the first place by noting that becoming a chef wasn't a childhood aspiration fulfilled. It was an unconventional choice in a family where traditional professions held sway. “Despite initial skepticism from my parents and peers, my fascination with culinary arts persisted. Fond memories of accompanying my father to markets and farms fueled my curiosity about the restaurant world.”

As for the most important steps of his career, so far, leading to the recognition of three Michelin stars, he highlights that his culinary journey began at a pioneering school on Spain’s Costa del Sol, where he trained under esteemed chefs. “Exposure to haute cuisine and subsequent stints in renowned establishments honed my skills and shaped my culinary philosophy. Achieving a Michelin star was a milestone in my journey, marking the culmination of years of hard work and dedication.”

Continuity and consistency

Managing a wide and diversified organization with multiple restaurants and brands undoubtedly presents numerous challenges. In light of this, regarding his top priorities as the leader of his culinary empire, Dani Garcia stresses that managing a large company requires delegation and trust in one's team. While physical presence at every location may not be feasible, regular communication and oversight are essential. “I emphasize the importance of continuity and consistency in operations. Feedback from

patrons, though valuable, represents only a fraction of our clientele, necessitating a balanced perspective on criticism.”

His decision to open two restaurants in Budapest stands out amidst his numerous global locations. In addition to attractive factors like Budapest's culinary landscape, cultural ambiance and partnership opportunity, his restaurants are likely to be contributing to and thriving within this vibrant city.

“The decision to open multiple restaurants reflects our commitment to growth and innovation. Location selection is influenced by various factors, including strategic partnerships and cultural fit. However, the human element remains paramount in our decision-making process. Aligning with a team and partners who share our values and vision is essential to our success,” he points out.

Authenticity and local flavors

As for the (Marbella) specialties of the BiBo and Alelí brands, what they will add to the restaurant scene in Budapest and what guests can expect in the new Budapest restaurants in this respect, Chef Garcia underlines that a restaurant's success hinges on its team and culinary vision. “I'm fortunate to work alongside talented individuals who bring passion and expertise to their craft. While labels like ‘fusion’ may be trendy, I prefer to celebrate authenticity and local flavors. Aleli, our upcoming venture, will showcase Italian cuisine with a Hungarian twist, reflecting our commitment to culinary diversity. You will find dishes such as the Lángos Montanara, Mangalica alla Carbonara, Fagottini duo di Ricotta or the Filetto alla Rossini.”

He adds that when he first opened BiBo ten years ago, he was very influenced by his time working in New York City. “I tried to bring everything that I learnt abroad to BiBo’s traveler cuisine, aiming to infuse the menu with creativity and bold flavors. Signature dishes such as our renowned Oxtail Brioche will undoubtedly captivate diners and set us apart in Budapest's vibrant culinary scene.”

LISZT FEST 2024

FROM OCTOBER 09, BUDAPEST

One-of-a-kind rarities and groundbreaking musicians announced for the 4th Liszt Fest International Cultural Festival that is to take place in the Hungarian capital.

Different facets of Ferenc Liszt’s art are featured by Martin Haselböck and the Orchester Wiener Akademie, Vasily Petrenko and the Royal Philharmonic Orchestra, the Cluj-Napoca Hungarian Opera, and Francesco Tristano. Detroit

DJ Jeff Mills will be in Budapest with the project he founded with Tony Allen, and the legendary Einstürzende Neubauten, who have created their own genre, will be performing songs from their latest album. Recirquel’s latest production will also see its Hungarian premiere at the festival. For the latter, it has become almost a tradition to premiere its latest production at Müpa Budapest’s festivals. lisztunnep.hu

BUDAPEST, PART OF THE 2024 BRYAN ADAMS TOUR

OCTOBER 14, MVM DOME, BUDAPEST

Canadian singer/songwriter Bryan Adams is back on the concert tour, performing in the USA and Europe again in 2024.

He has the reputation of being one the most exciting live musicians in the world. He has 17 studio albums including his latest album 'So Happy It Hurts', which was nominated for a Grammy. His Classic pt. I and pt. II, which feature new recordings of his greatest hits, released digitally and also available physically.

His song writing has garnered him numerous awards and accolades including three Academy Award nominations, five Golden Globe nominations and a Grammy Award.

He has a Star on the Hollywood Walk of Fame, and has sold upward of 80 million records, toured six continents and achieved #1 status in over 40 countries around the world. livenation.hu

LIFTING A GOLD BAR IN THE MONEY MUSEUM

JUNE, MONEY MUSEUM, BUDAPEST

Gold mining in Hungary has a rich history. In European gold production Hungary ranked first from the 13th century until the 14th century. The exhibition not only gives a glimpse into the past of gold mining, but at the end of the exhibition you can also touch a real gold bar. Here, visitors can learn that a gold bar is not nearly as light as it appears in the movies, where burglars usually throw them into sports bags with light movements. The bar can be lifted, but not easily, as it weighs 12.4 kg. penzmuzeum.hu

IL VOLO RETURNS TO BUDAPEST

OCTOBER 10, MVM DOME, BUDAPEST

The three singers with unique voices, Piero, Ignazio and Gianluca, have conquered almost the whole world, and their passionate performances and repertoire ranging from classic Italian melodies to modern pop-opera are extremely popular in Hungary. They recently performed with great success in the final of the Sanremo Song Festival and will be back in the Hungarian capital in October.

IL VOLO travels through the world's diverse music scene, starting from its Italian roots and crossing continents. They burst into the world of music as child prodigies and the experiences they have had so far have surpassed all their dreams. They've worked with Barbra Streisand, Eros Ramazzotti, performed twice for Pope Francis and are now regulars in major concert halls and stadiums.

The group represents the tradition of bel canto singing, putting perfect melodic shaping at the heart of the performance, and their repertoire is as wide-ranging as their musical taste.

"We're three dreamy guys, always thinking about big projects, big hits," the boys said earlier, adding that they try to match the tastes of the audience in each country at their concerts.

As Hungarian audiences like to spend an evening in Italy and they like to get a taste of the Italian way of life, IL VOLO’s next Budapest program will be designed accordingly. koncertpromo.hu

SUPER DRY TASTE

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