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GDP drop may delay debt rating upgrade Analysts were caught off guard when Hungary’s GDP contracted in Q1, the first such dip in four years. While some are now projecting recession, the government sees hope in new construction orders. 3

BUSINESS

Promoting women is good for buisness The first woman CEO to lead her firm’s CEE office says that PwC takes advantage of a diverse workplace. In an exclusive interview, she discusses ways to benefit from women in leadership roles. 8

SPECIAL REPORT

Developers build green commutes

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Janos Ungar of the Hungarian Electromobility Association says this country can’t boost e-car traffic without more charging stations. 12 SPECIAL REPORT

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SPECIAL REPORT

With environmental certification considered a basic for class ‘A’ office space here, builders in Budapest like to locate near transit hubs. The trend tends to favor the Váci Corridor and South Buda. 15

SOCIALITE

Hungarians help make a cleaner plane

Cycling to work makes sense in this city

Seeking fine wine under the Mátra hills

A battery-powered aircraft developed in Kesckemét may not have the juice to undertake long flights, but it has proven ideal for pilot training. Siemens partnered with a local firm to help produce the unique plane. 16

What’s good for the environment is also good for workers: With congestion in the middle of Budapest building up, and development of cycle paths increasing, commuters have a much easier time of it if they hop on a bicycle. 14

Our wine writer Rob Smyth climbs down into a cellar in the Hungarian countryside to uncover the source of some of excellent Olaszrizling. What he finds is fruity, flavorful and fabulously affordable. 22

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Referendum is ‘much ado about nothingʼ As the U.K. electorate plays Hamlet, deciding whether “to be or not to be” in the European Union, Hungary is planning its own referendum on the validity of the decisions being made by European leaders in Brussels. But unlike in the U.K., where the relative costs and benefits of membership may be open to debate, it would be madness to question whether Hungary might be better off outside the Union. When it was announced in mid-May that Hungary’s GDP growth dipped for the first time in four years, Economics Minister Mihály Varga put his finger on the problem right away: There is much less money being funneled into the economy because Hungary burned through most of its available EU funding last year. Without money from Brussels, the economy flags, and the government knows this well. Government economists are already saying that we need the next round of EU funding to help buoy the GDP. But just days after Varga spoke of the importance of EU funds, the government was unveiling its latest advertising campaign against Brussels. Billboards going up around the country suggest that Hungary does not want to be forced by EU leaders to share in the burden of refugees who are streaming into Europe. The billboards remind us that Hungarians will have the chance to state their opinion on the matter in a referendum set for this fall. The referendum would ask Hungarians to decide: “Do you want the European Union to prescribe the settlement of nonHungarian citizens into Hungary without the approval of the Hungarian Parliament?” The question is obviously worded in a leading way, meant to make a “yes” seem like the sensible decision, and to make people who would probably vote “no” want to stay home. A bigger problem with the referendum is that it has no legal logic; it is simply a PR exercise.

A country can vote to leave the Union, but there is no precedent or logic behind voting to selectively ignore some European Commission decisions while still staying in the Union. Even Hungarian government officials, who speak as if the national referendum on refugees is vital, do not seem to have a clear idea about legal steps to take after the vote. One thing we can be sure will happen if the vote goes as the government plans: officials will make a lot of noise about the result. The real reason for the referendum, after all, is to showcase the government’s stand against refugees, a populist issue that the ruling Fidesz party would like to keep discussing right up through the elections, due in early 2018. As with past ad campaigns against Brussels and refugees, this effort is obviously meant to distract from real challenges at home. Both our education system and our health system are broke – and broken – and now GDP is also heading in a bad direction. These are not problems that are easy to solve, but they are the issues that the government should be addressing, instead of finding fault with foreigners and criticizing EU leadership. We would argue that the U.K. is better off in the EU, because the Union provides that country with direct access to a bigger market and a better chance to impact international policy – while also helping ensure peace in Europe. From a selfish point of view, Hungary and other European countries also benefit from the additional wealth and power that the U.K. brings to the Union, so we hope they do not leave. As for Hungary, no sane person would insist that this country should leave the EU. While the “method in the madness” of Brussels bashing may be that it distracts from problems at home, a true effort to address those problems would be preferred.

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Weak GDP figures may further delay upgrade The drop in GDP surprised analysts, although poor construction and production figures should have provided them with a clue. ZSÓFIA CZIFRA

The GDP figure released on May 13 was a huge surprise: While analysts’ consensus was growth of around 2%, first quarter data from the Central Statistical Office showed a 0.8% setback from the previous three months at the end of last year, and only a 0.5% increase from the same period of last year, based on seasonal and calendaradjusted data. The unadjusted 12-month index, supported by the leap day, shows an output growth of 0.9%. The consensus at portfolio.hu was 2%, while Reuters and Bloomberg had even more optimistic expectations. The first estimate data therefore caused quite a surprise. The new data has some analysts wondering whether Hungary is headed for a recession, while others say the highly anticipated upgrade of the country’s sovereign debt rating may be delayed yet again this year. “Hungary’s economy unexpectedly had its first quarterly contraction in four years after a plunge in European Union funding,” Bloomberg said in reaction to the numbers. Only a day before Hungary’s Q1 GDP data came out, Bloomberg published its own survey of economic performance in the Eastern European region, including, in addition to Hungary, Czech Republic, Poland, Romania, and Slovakia. The news agency predicted a sluggish first quarter for the Czech, Hungarian, Polish and Slovak economies, and noted that Romanian fiscal easing boosted growth in the first quarter. As for Hungary in particular, Bloomberg expected it would post the slowest growth rate, which it thought likely to come in at 2.4%. But the slow down shouldn’t have come as a surprise: Both the latest industrial and construction data were very poor. Hungary’s construction output, published on the very same day as the GDP figure, plunged by one-third in March: 6.3% month-on-month, and a massive, 33.9% year-on-year decline in March, and 27.6% year-on-year decline in the first three months of the year. This is also disappointing, especially as February’s construction data seemed to have brought the sector back to life. The main reason for the slow-down is still the diminishing EU funds. The outlook for

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Volume change of GDP compared to previous quarter – calendar and seasonal adjusted data. (Source: Central Statistical Office)

“The slowdown in GDP growth in Central and South Eastern Europe in Q1 supports our view that the very rapid rates of expansion seen at the end of last year weren’t likely to last.” the sector, however, improved a bit, as the volume of new contracts was 47.3% higher than the low base in the previous year. Hungary’s industrial production also contracted for the fifth consecutive month in March. The volume of industrial production fell 4.6% year-onyear, according to raw data, to which the previous year’s high base also contributed.

Some see possible recession “The slowdown in GDP growth in Central and South Eastern Europe in Q1 supports our view that the very rapid rates of expansion seen at the end of last year weren’t likely to last,” William Jackson at London-based Capital Economics said, adding that at a country level, the data confirmed that Hungary had made a very weak start to the year, while Romania was the region’s outperformer. Jackson also mentioned the poorly performing construction industry, but

noted that domestic consumption held up well, and then concluded that growth in the region should continue to average around 3% on a year-on-year basis this year. Also from London, Peter Attard Montalto at Nomura stresses that “this is the lowest yearly growth since 2013 and the largest quarterly drop at -0.8% since the highest of the eurozone crisis in 2012.” Nomura’s forecast was 2.2%. “We think it now opens up the very real possibility of a recession with another contraction in Q2, albeit smaller in size. Like Poland we suspect there was a much more sudden stop in investment activity on the EU structural fund story. However, more than that we think this GDP print illustrates central bank action with the Funding for Growth scheme and other facilities that are keeping the economy inflated,” Montalto said in a note. He also thinks that, in light of the latest data, the MNB will be forced to carry on with its rate cuts (he projects two more base rate cuts to 0.75%), and also believes that currency weakening will be more aggressive in this new lower growth context. Montalto added that Nomura had downgraded its GDP growth forecast for this year, from the previous 2.6% to 1.5%, while it also cut back expectations for 2017 to 2.5% from 2.8%. “Digesting such large surprises without a breakdown is difficult (hence why we usually wait), so further forecast revisions

may well be likely in such a volatile growth environment. Wage growth picking up and fiscal loosening could provide some support, however,” Montalto said.

In the construction industry we trust Hungary’s Economy Ministry projected GDP growth of 1.7% for the first quarter, and the much weaker figure was clearly a disappointment for the economy minister. Mihály Varga told public television M1 that growth was only temporarily low, and mentioned, as an example, that the stock of orders has already been rising in construction and was 60% higher y.o.y. in March. “Modest growth at the beginning of the year has been the consequence of the cyclicality of EU fund inflows and lower output at motor vehicle manufacturers. In the entire year, GDP growth is expected to pick up substantially, thanks to economic fundamentals and government measures. The soaring number of building permits also signals a positive trend,” Varga said. Altogether, downside risks to projections that Hungary’s GDP will exceed 2% this year have significantly grown with this weak quarterly data. Hungary’s debt ratio also started to rise in the first quarter again, but then it always does at the beginning of the year. Still the bad news made analysts uncertain about the outcome of the Fitch Ratings’ review scheduled for May 20; it is still a question when Hungary may see an upgrade back to investment grade.

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NEWS IN BRIEF Hungarian government could completely take over schools

Lázár: State to keep farmland nationalized by communists

The Hungarian government could assume more authority over schools and become responsible for the maintenance and operations of institutions in the country under a bill submitted to the Hungarian Parliament on May 17, according to reports. The solution, which apparently calls for greater centralization, seems to go against the demands of teachers, who said they want more local control as they held demonstrations and strikes during the past school year. Mixed administration of public schools did not meet expectations, according to a consensus of the roundtable meeting regarding Hungarian education, the undersecretary responsible for education said on May 17, according to reports. The round-table meetings were boycotted by several of the groups representing teachers, but included government officials. The undersecretary said that placing all schools under state control is expected to eliminate problems present in Hungarian education, according to reports. In response to the demands of Hungarian teachers, the government said earlier that it would dismantle Klebelsberg Institution Maintenance Center (KLIK), which teachers criticized for its overly centralized administration of education in the country. According to reports, the new system the government is planning to establish will work on three levels, with KLIK being on the top, school district authorities across Hungary in the middle and schools on the bottom. Currently 55% of Hungarian schools are controlled by local authorities and 45% directly by the Hungarian state, reports said.

The Hungarian state will take ownership of farmland that was set aside to compensate people who lost property to the old communist regime, under a plan posted on Parliament’s website on May 18. Cabinet Chief János Lázár, who heads the Prime Minister’s Office, reportedly said the government wants to wrap up the land compensation program, and as a first step it will settle the legal situation surrounding land registered in the program. Farmland earlier owned by communist cooperatives will no longer be on sale for compensation tickets - the units of currency given to people who suffered unjust losses of land before. The compensation of farmers for land nationalized by the state in various periods of history started in the early 1990s, after the transition to democracy in Hungary.

Bill Clinton blasts ‘Putin-like leadership’ in Hungary, Poland Speaking at a campaign event for his wife Hillary Clinton, former U.S. President Bill Clinton criticized Hungary and Poland for their “authoritarian” and “Putinlike leadership”. In a speech recorded in New Jersey on May 13, Clinton says that, without the help of the United States during the Cold War, Poland and Hungary would not be free. However, he added, both countries “have now decided this democracy is too much trouble; they want Putin-like leadership: Just give me an authoritarian dictatorship and keep the foreigners out.” According to reports, Clinton drew a parallel between candidate

Donald Trump’s policies and the two countries, and offered his wife as a solution. “You have got to have somebody from the beginning who knows how to keep big bad things from happening,” he said. In reaction to Clinton’s words Hungary’s Minister of Foreign Affairs and Trade Péter Szijjártó said on May 17 that nobody, not even former U.S. President Bill Clinton can “take liberties with Hungarians by insulting them”. In reaction to this, Szijjártó said in a statement sent to Hungarian news agency MTI that Hungary’s freedom, “has been fought for by Hungarian people; tens of thousands of Hungarian gave their lives for the freedom of the country”. Szijjártó added that “such disdain for the freedom fight of the Hungarian nation is unacceptable”, according to the statement sent to MTI. Szijjártó said that Bill Clinton “might obviously know” that Hungarian people “decided on the future of Hungary through democratic parliamentary elections”. “Bill Clinton may not favor the decision of the Hungarian people, but this is not enough of a reason to insult them as he has,” Szijjártó added, according to the statement.

Hungarian legislation enables encrypted communication Despite earlier expectations, legislation passed by Parliament on May 11 to fight the spread of terrorism, does not ban the use of communication that uses end-toend encryption, according to reports. Originally, the draft proposal outlined that people using communication with end-to-end encryption could receive jail time, while developers of such software would be required to offer a backdoor to authorities in the fight against terrorism. After opposition parties expressed strong objection to criminalizing users of endto-end encryption based applications, it has been dropped from the legislation, in addition to the clause in which the government would have been eligible to ask service providers to decode encrypted messages if suspicion of terrorist activities arose among users. According to industry experts, this would have been impossible to achieve, as not even the developers of encryption software are able to decode encrypted messages. According to a report by 444.hu, the adopted law shows that Hungarian intelligence services have admitted that in the fight against terrorism messages do not carry as much

relevant information as metadata, which contains the time of communication, the parties and their location. Under such legislation, service providers would be required to store metadata and provide it to intelligence authorities if suspicion arises, according to 444.hu. Service providers originally collected such data for billing purposes, 444.hu added. Endto-end encryption involves the transfer of messages without the use of servers. Messages are encrypted on the sender’s device and decoded on the receiver’s device and cannot be opened by a third party.

PwC: Nuclear energy still dominates Hungary’s energy sector As nuclear energy still receives strong political support in Hungary, with a big investment recently going into the upgrade of the country’s sole nuclear plant in Paks, nuclear energy is expected to continue to dominate the country’s energy market, PwC said in a report issued on May 13. At the same time, EU regulations are pressuring Hungary to increase its investment in renewable energy – something that might prove challenging, as there still appears to be a low willingness among customers to invest in renewables, the report added. According to PwC, politics have a strong influence on pricing in Hungary, with the government cutting the energy bills of households by a cumulative 25% in recent years. PwC named the political environment, the infrastructural landscape and consumer attitudes as market conditions counteracting the transformation of the energy market. A key factor of the market is a customer’s mindset, where sensitivity to high prices prevails in Hungary, according to PwC. Since the regional standard of living is below that of Western European countries, affordability is key in both government decisions and meeting the needs of customers, according to the report.

Russian, Hungarian foreign ministers to meet in Budapest Russia’s foreign minister Sergei Lavrov is scheduled to visit Hungary on May 25 on the invitation of Hungary’s Minister of Foreign Affairs and Trade Péter Szijjártó, according to Hungarian daily Magyar Idők. The two ministers are

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expected to negotiate on the bilateral relationship between the two countries, as well as discuss Russia’s relationship with the European Union, according to the daily. The daily added that the two officials may discuss the approaching UN head secretary election as well as the cooperation of the EU and the Eurasian Economic Union. According to Hungarian online daily index.hu, the two officials could discuss sanctions imposed on Russia by the EU due to the EasternUkrainian and Crimean crises, as Szijjártó has recently been vocal in his criticisms of the sanctions.

Szijjártó calls EU proposal ‘blackmail’ Hungary’s Minister of Foreign Affairs and Trade Péter Szijjártó called the European Union’s proposal to fine EU members who refuse to accept refugees under the quota plan “blackmail”, in an interview published in Hungarian daily Magyar Nemzet on May 13. “The proposal goes against common sense, European regulations, and also the interests of Europe,” the foreign minister said commenting on the EUʼs plans to make members pay HUF 78 million for each rejected refugee, according to Magyar Nemzet. “It is senseless and unacceptable that the EU is working on bringing more and more illegal immigrants into Europe,” the minister added. Asking to comment on the remarks of the Minister for Foreign Affairs in Luxemburg, Jean Asselborn that the EU could die if questions related to the EU are handled through referendums, Szijjártó reportedly said: “If the EU dies of anything it would be hypocrisy.” Szijjártó maintained that Western politicians insist on democracy, but “when a government asks for the opinions of the people in an important question, then the most democratic tool, the referendum is being questioned.” Szijjártó deemed the EUʼs practice a “double standard, hypocritical and two-faced”, according to Magyar Nemzet.

Budapest to host next big EBRD conference Budapest will host the next major conference of the European Bank for Reconstruction and Development (EBRD) in the second half of the year, the National Economy Ministry said, Hungarian news agency MTI reported on May 12. EBRD chairman Sir Suma Chakrabarti announced the conference on boosting growth potential in new European Union Member States, as well as its host, at the opening of the EBRDʼs annual meeting in London on May 11. “We consider it an honor to be able to host the meeting, and will gladly share the Hungarian experience gained in the area of economic development,” said National Economy Minister Mihály Varga. The statement noted that Hungary had supported the re-election of Sir Chakrabarti to a second four-year term as EBRD chairman at the meeting. Since 1991, the EBRD has contributed €2.7 billion in financing for the support of 171 development programs in Hungary.

Hungary opens LSE to mark listing of yuan bond Hungary’s National Economy Minister Mihály Varga ceremoniously opened the

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Government launches another billboard campaign on refugee issue A cyclist in Debrecen rides past a government-sponsored billboard on May 18. The Hungarian government has launched another billboard campaign to promote its referendum against the European Commission’s plan to require every EU country to take a quota of refugees. Government officials say the new billboards are meant to inform Hungarian citizens about the issue, while opposition critics say the messages are ‘propaganda’. The government has used such campaigns in the past, to voice its opposition to refugees. The newest billboards read: ‘Let’s send a message to Brussels, so that they can understand it as well’. On the top of the billboard the text says: ‘Referendum 2016 against forced settlement’. The Hungarian government has planned a referendum through which Hungarian citizens can voice their opposition to the EC’s plan to require all European Union countries to resettle a certain quota of refugees. The referendum question reads: ‘Do you want the European Union to prescribe the settlement of nonHungarian citizens into Hungary without the approval of the Hungarian Parliament?’ (Photo: MTI/Zsolt Czeglédi)

market on the London Stock Exchange on May 12, marking the listing of a RMB 1 billion yuan bond recently issued by Hungary, state news agency MTI reported. The issue has “ symbolic significance”, and although it is not a very large bond, it sends the important message that China is a force to be reckoned with in the longterm, Varga told MTI after the ceremony. Hungary issued the three-year dim sum bond in mid-April.

Bill would lay legal foundation for Budapest Olympics bid

Law would ban e-cigarettes from workplaces in Hungary The Hungarian government is planning legislation to restrict the use of electronic cigarettes, banning them from workplaces and playgrounds, Hungary’s Cabinet Chief János Lázár said on May 12, according to reports. The regulation could come into effect as early as May 20, and further e-cigarette restrictions are being

considered, the cabinet chief said. The government is taking these steps following the European Court of Justice’s ruling in early May regarding a European Union directive on tobacco products. The EU directive mandates the standardization of packaging, a future EU-wide prohibition on menthol cigarettes and special rules for e-cigarettes, Hungarian news agency MTI noted. The government is also planning to introduce plain packaging for cigarettes.

Hungary’s government submitted a bill to Parliament on May 17 that would establish the legal framework to support Budapest’s bid to host the 2024 Olympic Games, Hungarian news agency MTI reported. The bill “acknowledges the necessity of establishing guarantees” required by the International Olympic Committee (IOC) from cities applying to host the games and aims to “legislate procedural rules supporting the quick and efficient establishment of these guarantees”, according to the justification of the proposal. The goal of the bill is to show “Hungary is capable... of ensuring the fast, efficient and successful preparation and organization of the secure and peaceful celebration of the Olympic and Paralympic Games”. Budapest is competing against Los Angeles, Paris and Rome in its bid to host the 2024 games.

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COMPANY NEWS

Conti-Tech Fluid completes €12 mln investment in Hungary ContiTech Fluid Automotive Hungária, a Hungarian subsidiary of German automotive supplier Continental, finished an expansion valued at nearly €12 million at its Hungarian base in Makó on May 13. The firm expects the investment to boost capacity at the base by 30%, managing director Mihály Nagy said at the opening ceremony, according to Hungarian news agency MTI. Half of the investment was covered with a state subsidy, awarded on condition that the company creates 216 jobs, and this number is likely to be exceeded, the manager said, according to MTI. The company employs more than 3,400 people in Hungary at its bases in Makó and Vác. The expansion included a 4,000 sqm production space, a communal space, office building and lorry park, as well as a 5,000 sqm warehouse. The manager noted that heating and cooling hoses manufactured at the plant are used in every fifth car produced in Europe.

Digi and Vodafone bid at tender for 3,400-3,800 MHz spectrum

Telco Digi Távközlési and mobile company Vodafone Magyarország have submitted bids at a tender for licenses in the 3,4003,800 MHz frequency band, Hungary’s National Media and Infocommunications Authority (NMHH) said on May 12, according to Hungarian news agency MTI. Both bids met formal requirements, the authority said, adding that the result could be announced within a few weeks. The licenses are valid until 2034. Fifteenyear licenses for the frequencies in the lower half of the band expire at the end of June, the NMHH said when it published the tender on April 12, noting demand for unused frequencies in the top half of the band. The frequencies may be used for broadband mobile data services.

Hungarian government, BT sign cooperation agreement

The Hungarian government and BT, the U.K.-based multinational telecom, signed a “strategic cooperation partnership”, to further strengthen the cooperation between the government and BT’s service center in the country, according to a press release issued on May 13. BT said at the ceremony that the company has doubled its staff in Hungary in the past two years to the

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current 2,000. This expansion was needed to accommodate new tasks at the center, as well as expand functions within the company, BT added. The center provides services for the multinational clients of BT Global Services. The agreement was signed by Hungary’s Minister of Foreign Affairs and Trade Péter Szijjártó on behalf of the Hungarian government, and BT’s Regional Services Center CEO Zoltán Szabó on behalf of the British multinational.

Refreshed Civil Code text to clarify cases

Rolls-Royce looks to supply Paks nuke plant upgrade Rolls-Royce showcased its nuclear instrumentation and controls business, joining companies who hope to become potential suppliers for the upgrade of Hungary’s sole nuclear power plant in Paks (pictured), according to reports. Rolls-Royce attended an event organized for professionals at the Budapest University of Technology and Economics (BME) on May 11. Rolls-Royce instrumentation and controls are in some 200 nuclear power reactors, of all types, in more than 20 countries, the company said in a statement, according to Hungarian news agency MTI.

As the text of Hungary’s current Civil Code is not exact enough and allows for ambiguities, a new and more straightforward Civil Code has been drafted and would be passed shortly, deputy state secretary Bodzási Balázs said on May 5 during a professional business breakfast organized by Hungarian law firm Schönherr Attorneys at Law. Leading partner Kinga Hetényi questioned whether it was necessary to propose changes to the text of the code, in relation to the dispositive characteristic regarding legal persons. Hetényi also noted that there is a large grey area in the field of dispositive and cogent regulations, and it is possible to get different answers to the question of whether a regulation qualifies as cogent or dispositive, following the Civil Code. The state secretary said the changes to the code were inevitable as the current text makes it possible that in some cases judges can rule in an “absurd” way. According to the state secretary, the changed code is expected to clear up these matters. The state secretary noted that the new code states as a main principle that the legal person is to be made responsible, while in the case of intentionally causing damages the universal responsibility stays in place.

Invitel said it considers the award an important milestone in the company’s history of network development. “It is a big success that we acquired this international certificate as the first company among the Hungarian service providers, which is a recognition of Invitelʼs unique Carrier Ethernet network development platform,” said Áron Javorniczky of Invitel. “Thanks to the certificate our company is able to offer this solution in 140 settlements in the country for tens of thousands of clients.” Metro Ethernet Forum (MEF), an international organization that sets down the criteria for installing Carrier Ethernet technologies, and requires audited parameters for the operation of CE networks, awarded the certificate. MEF has more than 220 members, including AT&T, China Telekom, Cisco, Ericsson and Fujitsu.

Invitel receives MEF CE 2.0 certificate

BMW, Mini sales lift Wallis Motor Pest performance

Hungarian telco Invitel recently became the first company in the country to be awarded an MEF CE 2.0 international certificate, which means the company can perform certain complex network operations, according to a press release issued on May 10. As a result of receiving the certificate, Invitel can now offer its corporate and governmental clients certified services, such as real-time performance monitoring and thorough failure analysis, the press release said.

Last year car dealership Wallis Motor Pest Kft. saw a record number of sales, chiefly lifted by BMW and Mini sales, according to a press release issued on May 10. The company is planning to add another branch in Hungary through an investment of HUF 3 billion. BMW vehicles sold by the company covered more than one-third of the total sales of the brand in the country, Wallis Motor said in the press release. Last year the company sold almost 500 BMW cars, 150 BMW motorcycles and more

than 80 Mini cars. This year, chiefly due to the addition of the new branch, the company expects to further improve its performance in the Hungarian market. Commercial and marketing director András Kele added that the majority of sales were corporate in nature, and the dominance of men making car purchases is on the decline as the number of women buying cars grows. The company expects to double its sales of Maseratis in the short-term, managing director Péter Antal told Hungarian news agency MTI. Last year, Wallis Pest sold 19 of the Italian supercars, up from 13 in 2014, Antal said. Currently 150-170 Maseratis are on the roads in Hungary. The dealer had a profit of HUF 236 million on revenue of HUF 15 bln last year, MTI added.

Hungarian sales lift AAA Auto’s performance in Jan-Apr

Sales at AAA Auto were up 13.2% in the period of January-April as compared to the same period a year earlier, boosted by the firm’s performance in Hungary, where sales were up 38.76% during the period, according to a press release issued on May 11. Globally, the firm sold 22,354 vehicles in the first four months of the year, up from last year’s 19,747 in the same period, while in Hungary that figure grew to 1,407 from last year’s 1,014. April’s sales were the most significant with the Hungarian branch, performing 45.39% better than in the same month a year earlier, and contributing to a global lift in sales of 19.3%. According to AAA Auto’s market monitoring, some

2016. 05. 18. 20:48

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Budapest Business Journal | May 20 – June 2, 2016

64,030 used cars were advertised in Hungary in April, with an average price of HUF 1,538,453, while the average age of used cars advertised for sale was 12.3 years with an average mileage of approximately 182,031 km.

MBI enters Hungarian market International franchisor MBI launched its first international franchise system in the Hungarian financial industry, simultaneously with Slovakia, Czech Republic and Romania, according to a press release issued on May 11. A total of 33 units will be opened in each country, the press release added. The company’s franchise model envisages a tenfold increase of invested capital within five years, while it also offers career opportunities in the countries in which it is present, the company said in the statement. MBI is an independent broker with approximately one million clients in the region. The company offers products in the field of investments and capital assets, as well as private banking, which have been developed by MBI together with partners, such as MasterCard, Raiffeisen Bank International and C-Quadrat. Franchisees joining MBI can get access to a loyalty card system called MBI Passport, which has a MasterCard payment function. The card can also provide discounts for such purchases as tickets to the Sziget and Balaton Sound music festivals. “MBI is taking a new path with the franchise concept and enables ambitious managers to build their own

successful company. With this [concept], we are pioneers in the financial industry,” says Alexander Schaufler, Founder and CEO of MBI.

TV2 Group plans to launch ten new channels

TV2, Hungary’s second largest commercial TV station, which was recently acquired by government Film Commissioner and former Hollywood film producer Andrew G. Vajna, is planning to launch ten new TV channels soon, a move that professionals say would completely reshape the Hungarian media market, Hungarian online daily index.hu reported on May 10. Each new channel is to offer thematic entertainment, in areas such as gastronomy and Hungarian cuisine, movies, music, lifestyle and even cartoons for children, index.hu added. At Media Hungary 2016, a major conference for players in the media market held in Siófok, representatives of TV2 group said the channels run by the group have been lagging behind in viewership. With the recent change in ownership, the group is making long-term plans, according to reports. The new channels are due to be launched in the coming months. According to reports, Vajna’s purchase of the media group was supported by a loan provided by Hungarian stateowned Eximbank. Despite this loan, and his position in government, Vajna has rejected speculation that TV2 would air government friendly news after the change in the ownership.

WHO'S NEWS

Do you know someone on the move? Send information to news@bbj.hu

CE Land welcomes new professional

the real estate market,” CE Land CEO Csaba Széll said. “Ferencʼs experience and his social network fits into the work of our firm perfectly,” he added. At the beginning of his career, Trexler worked with DTZ Hungary. Later he joined Valad Hungary. He came to CE Land by way of Colliers Hungary, where he worked as associate director - head of landlord representation.

Hungarian drugmakersʼ association welcomes new chairman Ferenc Trexler was appointed head of Capital Markets and Agency Service at real estate firm CE Land Hungary as of the beginning of April. Following the latest market trends, CE Land decided to strengthen its “Capital Markets and Agency” field, and added Trexler, a professional with 15 years experience, to its team. “I am happy that our company has seen another serious addition to its team, which provides the opportunity to serve another segment of

The Hungarian National Association of Drugmakers (Magyosz) elected István Hodász, the CEO of pharma company Egis, as its chairman at a general meeting on May 13, the association said. Hodász replaces Erik Bogsch, the CEO of Gedeon Richter, who held the post for ten years. Hungaryʼs pharmaceutical industry spends an annual HUF 68 billion on investments and HUF 76 bln on R&D, and also employs more than 15,000 people, Hodász noted in the statement.

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For over 200 years, we have made it our job to help companies, institutions and public entities around the world achieve and grow. We look forward to keeping this spirit of enterprise going strong in Hungary, where we have helped Hungarian businesses thrive for over three decades.

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Budapest Business Journal | May 20 – June 2, 2016

CEE economy benefits from w The CEO of PwC for Central and Eastern Europe, Olga Grygier-Siddons, spoke to the Budapest Business Journal about the role of women in corporate hierarchies and how being open to change and innovative ways of thinking can help businesses gain a competitive edge. ANIKO FENYVESI

Women make up one half of the potential corporate leadership, and represent a huge management resource that is going woefully underused, both worldwide and in Hungary. Clearly, firms that have the foresight to tap into this resource can gain a competitive advantage. One company that is taking advantage of the potential of women leaders is PwC, which in 2014 elected a woman to lead its Central and Eastern European regional practice. Olga Grygier-Siddons is the first woman ever to be elected to the position of CEO for the region. Since then, she’s been instrumental in helping push women into leadership roles within her organization and in trying to decode what holds women back from pursuing such ambitions. Born in Poland, Grygier-Siddons moved to England in the 1981 where she completed her studies. She joined PwC’s corporate finance department in the early 1990s and eventually returned to Poland with her family to take on the role of advisory leader. She was struck by the dramatic changes in her homeland and has been closely monitoring the evolving hierarchies within the corporate sector in the region. She is driven by a passion for her work and tries to instill that ethic in her colleagues, particularly the women with whom she works.

After having worked in the corporate sector for a number of years what is your perception of gender equality or inequality? A: What I’ve seen is that women at the top tend to operate in businesses they started or family business where they grew into that role. When it comes to businesses where positions are appointed, there are much fewer women. In companies where they have formalized the process for the promotion and appointment of senior roles, women do much better. When you have an all-male boardroom you tend to forget that there are no

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The firm’s first CEO for the region: Olga Grygier-Siddons speaking for PwC. women there but when you have one woman in that boardroom you do notice very quickly that there’s only one. I’m very conscious in situations where there are only men and I make this clear to my colleagues.

“For me the first step is disclosure. The more pressure we have, especially on the public sector and listed companies, to disclose their statistics on diversity, the better.”

What is the advantage of having women in leadership Given the resistance to change, more pressure we have, especially on roles? what are you doing to make this the public sector and listed companies, to disclose their statistics on diversity, happen? A: PwC has a diversity and inclusion focus. We believe that a diverse work A: The career progression from manager the better. environment produces much better to partner is about five years, and from Before we put any hard measures in results and that’s the main reason for partner to a leadership role, it takes place, such as quotas, we need to show fostering such an environment. Not only quite some time. Our job is to provide that these inequalities exists; the same is it good for the business but many of our the right environment and to encourage goes for inequality in pay. clients have come to expect it, because women to have a go. We try to ensure they know that it has a positive impact that each role has a really good role What are some of the biggest on the value they are getting. But until specification and that we carry out obstacles you face in the gender equality in the workplace comes assessments in a formal way. We also process? naturally, we need to ensure that there have strict procedures regarding ratings A: Even when you identify women as top is appropriate support for groups that and promotions. This helps us see how candidates for a particular role, there is a startling difference between female traditionally have not been supported in many women are suitable for the job. our business. PwC was also one of the first and male candidates. You say to a man We want more women in leadership organizations to join the UN initiative that you would like to consider him for roles because it adds value and makes “HeForShe” in which men in senior roles a job and his reaction is: “Fantastic! I’m sense for our economies. Right now we in our region coach women and help perfect for this role!” You say this to a woman and her reaction is: “I’m not are in the transition from cost to value them progress with their careers. competitiveness and this is exactly what Until the process becomes automatic, sure, I can’t do that, I have children and this economy and what our businesses it’s important to be forced into the habit family commitments.” It’s the classic need. They need leaders and managers of monitoring these tendencies. reaction. You need to work with women who have the full range of skills and to convince them that they are suitable. there are plenty of women out there who How can the corporate sector Women have a tendency to want to as a whole correct this age-old be perfect and they often compare can help our business and economies problem? themselves to perfection and focus move forward and be more competitive. I’m not speaking from a place of A: When you shine a light on these on the things that separate them from entitlement. I just believe that it makes issues you tend to get better behaviors. perfection, whereas men tend to focus For me the first step is disclosure. The on what they have. perfect business sense.

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Budapest Business Journal | May 20 – June 2, 2016

m women in leadership

Olga Grygier-Siddons takes her seat: ‘If women are given the opportunity, and if they want to, there is plenty of scope for them in CEE to be at the top table.’

potential and consumers who wanted How has the role of women in to consume western goods…. But very leadership positions evolved in quickly we looked at what was on offer the region? A: It’s more or less 50/50 up to middle and thought we can do it just as well if management but that drops substantially not better, at a much better price. And when you get to the partner level, not just we started developing our own economy. in Hungary but also in Poland, and even The focus was on leveraging the cost But what if someone is dips below 10% in some CEE countries. advantage and I think that got Central simply content with a middle But we’re working on changing those and Eastern European countries through management position or numbers. PwC represents what you the early stages. doesn’t want the burden of responsibility would traditionally see in a boardroom But now, our economies have the of something more? in CEE: Women are represented in the added challenge of continuing to be price A: Much of this is a matter of perception. communism was that women went to low 20 percentile, and very rarely do you competitive but also providing more value Middle management is actually the work, and this dramatically increased see women CEOs. for money. We can no longer compete hardest because you have pressures from the number of women in the workforce, In listed companies the percentages with Asia and Latin America. But it is above and below. Once you push through which is great. What is not so great is are even lower. In privately owned, this challenge that is changing the way middle management and the higher up that not enough of these women reach unlisted businesses there are usually companies are run. Typically, companies you are, the easier life becomes because top positions. more women at the top. used to be run in a very hierarchical way but when you need to innovate and you have a lot more help and you have Changing times, the different ways come up with new products and services a lot more control. I think many women of working and the need for EQ skills In addition to leveling out or change your business model because get put off in middle management make women very suitable and valuable the playing field how can of technology, you have to change very companies in CEE stay because it’s so hard. And that time tends in how companies adapt to change. quickly. So we are seeing increasingly to coincide with the time you’re raising Traditionally women are good at working competitive in face of more developed that businesses are becoming flatter a family. in a collaborative way, motivating people, Western nations? listening, understanding needs – all A: When countries in the region first structurally, looking for a more diverse What advantages do women common traits of a successful person. If embarked on the road to a market workforce and providing opportunities from CEE have in becoming women are given the opportunity, and if economy, whilst it was a very painful for people to innovate and change. So leaders? they want to, there is plenty of scope for transition, we had some advantages. We the style of leadership also has to change. A: Communism left us with some bad them in CEE to be at the top table, right were very attractive to foreign investors And this is precisely where women can legacies but one of the advantages of through the management ranks. because we had a market with huge make a significant contribution. Innovation is an important aspect of all business and when you think about it, innovation is really about trial and error. For us women, it’s important that we allow ourselves to fail. It’s fine to fail, so long as you learn from the experience.

“Traditionally women are good at working in a collaborative way, motivating people, listening, understanding needs – all common traits of a successful person. “

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EXPERT OPINION

Budget ready to take off after a year here Hasan Kurt Managing Director BUDGET CAR RENTAL

After taking over American car rental brand Budget Car Rental in Hungary a year ago in April, Turkey-based Otokoc Hungary is optimistic about the brand’s future in the country and eyes gradual development and expansion. Managing Director Hasan Kurt discusses progress made so far and provisions in the market.

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

BBJ STAFF

How did you decide to launch a business in Hungary? We have a good relationship with Avis Budget group around the world, and hav represented them in seven countries, so they believe in us and they recommended the country. We investigated the Hungarian market, considered its potential and decided to come here. We believe in the Hungarian economy and the market. If you needed to list certain facets that make Hungary an attractive place, what would you mention? The location is very good and the population is large. Another great advantage of the country is the stable economy. What challenges do you meet on a foreign market on a daily basis? My team consists of only Hungarian staff, I am the only foreigner here, and we communicate in English. Working with people of another culture who speak another language is challenging for me and the staff at the same time. I needed to change my working style and my approach towards my staff. How big is your business in the country? We have two sales offices in the country, one at the airport and one in the heart of Budapest, and we have the headquarters. We have just ordered new cars, and fleet exceeds 500 cars in the country. Who are your customers? What can you tell us about them? More than 80% of our clients are foreigners. Car rentals are closely linked to airline transportation, so

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globally, our main locations at airports. But in Hungary, you only have one major airport. How fierce is the competition in the Hungarian market? What is the key for success? It is very competitive here. Foreigners arriving in Hungary are very pricesensitive, and they also demand excellent services. The first and most essential step, therefore, is that we try to make our services better than the other companies in the market. Sensible pricing is also very important. I believe the staff and services we offer are the main facets that differentiate us from other players in the market. How do you see your Hungarian staff and the local labor market? I believe in Hungarian workers. They are very trustworthy and are very honest. If they like your business they will stay for long, if they do not, they will leave. I like this. Happy workers stay with us and they make customers happy. We share our vision with the staff and if they believe in us, they will share our vision and this way they become part of our success. It has been a bit more than a year since you came to the country. What has happened in the past year? Our first step was learning about the Hungarian market. We invested in our business both technically and in human resources. I would say the plane is waiting at the end of the runaway now, waiting for taking off. We are ready. What are your short-term and longterm visions? In the car rental market there are six multinational companies as major players. Currently we are fifth or sixth among these companies, and we are aiming to be in the top three. The other big market in the country is the operational leasing market, and we are aiming to be a significant player in that area as well. Are you planning more expansion in the country? We expect to grow, but as for physical expansion, maybe we will issue sub-licenses, probably in Balaton, Debrecen, Győr or Miskolc. Is there anything you would like to add? Hungary is a very good market to invest in, especially because of Hungarian workers. The younger generation is very talented in Hungary, however the population is getting older, which is an important factor to watch, regarding the future. Another problem is brain drain, which government officials need to deal with in the future.

REAL ESTATE NEWS BNP Paribas Real Estate Hungary wins property management tender

TriGranit announces strong Q1, says it plans more development

In the first quarter of this year, real estate developer TriGranit signed new lease agreements for 25,777 sqm GLA; the average occupancy rate was above 95% in the company’s managed assets, and the company had 20,000 sqm GLA office development in progress, according to an earnings report issued on May 12. TriGranit announced in a press release that the firmʼs most active asset was Millennium Towers in Budapest, with altogether 19,010.7 sqm GLA in renewals and new leases, including agreements with Morgan Stanley and Oracle. With these agreements, the occupancy level of the Millennium Office Towers reached 99%, the company added. The Váci Greens office building. “The good performance of our assets also reflects the trend: the CEE real BNP Paribas Real Estate Hungary won estate market’s recovery is still on the a property management instruction in go – slower, but still above the Western a tender process for Váci Greens office European level. There is continuously building “B”, one of the latest office growing demand from multinational developments in the Budapest pipeline companies for ‘near-shoring’ – Central completed in March, according to a Europe has become a ‘traditional’ European destination for the BPO press release issued on May 13. The scheme has a total area of 25,000 sector, especially Polish secondary sqm GLA and is the third building in the cities like Krakow, Wroclaw and Lodz Atenor portfolio under the management due to the large pool of cheaper, but of BNP Paribas Real Estate Hungary, effective and well-educated labor with strong language skills, in addition to the statement said. “The strategic objective of the developed infrastructure.” said Árpád Property Management Department at Török, CEO of TriGranit. BNP Paribas Real Estate Hungary is to Due to the strong performance of the improve the performance of real estate BPO sector in the region, the company assets,” said Henrik Favari, CEO, BNP plans further office developments in the Paribas Real Estate Hungary. “We are near future in each of its core countries: extremely pleased that Atenor entrusted Poland, Hungary and Slovakia, the us with the management of yet another press release said. property, thus expressing their satisfaction with the results achieved so Investment fund acquires Zala Park far,” he added. Váci Greens, at the center of the Váci shopping center thoroughfare, consists of six office Magyar Posta Savings Real Estate properties with a total development Investment Fund has acquired the Zala area of 130,000 sqm. The office complex Park shopping center in Zalaegerszeg, has a favorable location, modern western Hungary, from a unit of the “bad bank”, architecture and high quality technical government-established the Hungarian Reorganization and standards, the statement said. Váci Greens was the first office Receivables Management Company building in Budapest to obtain a (MARK), the seller said May 10, according BREEAM “Excellent” rating. to Hungarian news agency MTI. The total project investment was slightly less than €25 million and GLL Real Estate presents new plans for receipts from land sales reduced this Roosevelt building in Budapest amount to €20 million net, according to In light of upcoming tenancy changes information provided by ConvergenCE in the fourth quarter of this year, Hungary, the developer of the project. Munich-based real estate fund manager The property was sold by Resideal, GLL Real Estate Partners unveiled which manages a property portfolio design plans to rejuvenate Budapest’s with a book value of more than HUF 10 Roosevelt office building, according to a billion, MTI reported. press release issued on May 13. Magyar Posta Savings Real Estate The redesign includes the creation Investment Fund has assets of more of a new reception area, as well as a than HUF 100 bln, and the fund is new lobby and upgraded offices, the managed by Diofa Fund Manager, which has a real estate portfolio with statement said. The architectural concept behind the almost 137,000 sqm of rentable area transformation is to turn the multi- worth some HUF 58 bln, MTI said. tenant reception area into the new focal The shopping centerʼs operator point of the building. went bankrupt in the spring of 2012, In their commitment to using top according to MTI. quality materials, GLL is planning to MARK was established by the introduce new office standards in their National Bank of Hungary (MNB) to Danube bank building that will feature buy bad commercial real estate loans both cellular and open space work areas, and properties from banks, for almost the statement said. HUF 3 bln.

2016. 05. 18. 20:48

3Special Report BBJ

Green transportation

E-cars ready, but charging stations aren’t

 12

Developers planning greener commutes

 15

Go green or don’t go

Environmentally friendly transportation is better for the planet, required by new regulations and more cost-effective. We look at Hungary’s efforts to move toward cleaner motion.

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2016. 05. 18. 20:50

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Budapest Business Journal | May 20 – June 2, 2016

E-cars set to mount a charge o Electric-powered cars are catching on here, but the biggest stumbling block is the lack of places where drivers can plug in their vehicles. Spurred by EU incentives, the government is working to increase the number of charging stations. LEVENTE HÖRÖMPÖLI-TÓTH

Now that Tesla has unveiled its longawaited Model 3 electric car, e-mobility could get the major push it needs at a global level. A price tag starting at $35,000 is bound to bring Elon Musk’s latest baby within reach of consumers on something nearing a mass scale, as is indicated by the 325,000 pre-orders placed by early April. It remains to be seen how soon the Model 3 will hit the road in this country. The question of whether Hungary can catch up with its trend-setting European counterparts essentially comes down to development of proper charging infrastructure and incentive-focused regulation: Until there are more places to charge e-cars, the number of such vehicles will likely remain low in Hungary. Catching up will take Hungary some time, as Western Europe has six-toseven years of market experience already. But relevant European Union directives leave this country no choice other than to drive down the e-path at top speed. Stringent rules expect Member States to radically curb CO2 emissions and cut energy dependency.

Minister of State for Environmental Affairs of the Ministry of Rural Development Zoltán Illés charges an e-car at a charging station, which was set up in Budapest in March 2014 with the support of the government’s Jedlik Ányos Plan. (Photo: kormany.hu)

track of them. “I am confident, though, that the number of charging stations will multiply,” Vígh said. Different kinds of charging stations will be set up offering varying speeds of battery recharge. Installation costs can run up to HUF 10 million per station. Calculate double that price for the go on an e-ride in the Budapest area now, first adopter markets were regulated and kind that can serve two cars at a time. you have more than 50 public purpose developed, the Hungarian Electromobility However, the cost burden is not the only charging stations to rely on. They are Association has established a partnership bottleneck in the project, as experts say typically located in busy spots in the with professional, regulatory and that obtaining the necessary permits can other parties from ten countries along take half a year. downtown districts. “It is hard to provide exact figures as no the Danube Region,” said János In spite of the problems around official records are kept. We are relying Ungar, a member of the board of the infrastructure, a set of incentives on the data provided by our members, but Association. “Our aim is to support the could help to speed up progress toward they are not being updated fast enough different stakeholders (e.g. regulators, e-mobility tremendously. There are and the relevant online search sites also municipalities, companies) with practical already some in force, such as an E-rides subject to infrastructure normally lag behind,” Zoltán Vígh, public and useful guides and international exemption of a registration tax and of duty The Hungarian government seems ready affairs executive of the Jedlik Ányos expertise in setting their strategies and for bringing e-vehicles into circulation. And in 12 out of 19 major Hungarian to take action, as outlined in the Jedlik Cluster, one of the organizations behind carrying out their plans.” cities, there are no parking fees charged Ányos Plan, known as JÁT. Announced JÁT, told the Budapest Business Journal. in March 2014 and elaborated over the Given the legal complexities of selling Getting past the bottlenecks for them, either. course of a year, the plan sets out the small amounts of electricity, the stateBut according to the Jedlik Ányos blueprint for turning Hungary into an owned ELMŰ-ÉMÁSZ utility is not able The current locations of charging stations Cluster, more such helpful measures are e-car hub. Ambitions are set high; the to charge money for people using the reflected the needs at the time, with desperately needed. State-subsidized plan calls for the number of e-vehicles to stations, and they are currently treating their installation mostly initiated by loans for buying e-vehicles and tax reach 63,000 by 2020. This will require a them as marketing for the planned municipalities. Under a new set of rules, breaks should be introduced. More dramatic increase from the April 29 figure operation of charging stations around the however, municipalities are now obliged importantly, from the point of view of of the Central Office of Administrative city, according to reports. Unfortunately by law to place further public purpose overall numbers, e-vehicle fleets should and Electronic Public Services (KEKKH), that seems to mean that it is hard to drive charging stations on public parking lots. also be eligible for funding. Allowing which put the number of e-vehicles operation of the stations through a simple Private sector players such as shopping these vehicles to use the bus lane is on registered in Hungary at that date at only profit motive. This situation should malls, office buildings and parking the agenda too. 666. The effort does seem to be gaining change as the laws are adapted and the houses will face the same obligation, Vígh The government certainly has an some traction, however, as the rate of number of charging stations grows. incentive to do more toward promoting explained. new weekly registrations has hit 50 to 60 The Hungarian Electromobility “Non-public purpose charging points e-vehicles in Hungary, as billions on average. Association is doing what it can will gain ground too, once corporate of euros in EU funding is available One key precondition for meaningful to surmount the various legal and e-car fleets appear in big numbers. In for initiatives that encourage greener growth in e-vehicle ownership is the infrastructural obstacles to a greater turn, the government will be in charge transport, including through e-cars. construction of a sufficient number of proliferation of charging stations in of countrywide development, in order to Furthermore, it could silence critics who charging stations. According to experts, Hungary, and the region. ensure that e-vehicles can cross Hungary say the proposed enlargement of the at least 5,000 charging stations would “Recognizing the regional problem, after comfortably,” Vígh noted. Since charging Hungary’s Paks nuclear power plant will be required nationwide. The first phase spending almost two years developing point installation efforts have tended to produce too much unwanted electricity. A of large-scale installations is under way a global network in electromobility and be made by different stakeholders under lot of e-cars could presumably soak up at and it is badly needed. Should you wish to getting a better understanding how the PPP schemes, it is hard to keep exact least some of that extra supply.

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“Non-public purpose charging points will gain ground too, once corporate e-car fleets appear in big numbers. ... The government will be in charge of countrywide development.”

2016. 05. 18. 20:50

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Budapest Business Journal | May 20 – June 2, 2016

e on Hungary

EXPERT OPINION

FILLING STATIONS FUEL ENGINES WITH GREENER GAS AROUND THE COUNTRY BBJ STAFF

Car type

KIA

Number Distance range sold (km)

Soul EV

Peugeot

iOn

Peugeot

508 RXH HYbrid4

Engine (LE/kW)

List price min. (HUF)

212

81.4 kW

150

64/49

8,470,000

1,522 (mixed operation)

37/27

12,115,000

200

11,880,000

BMW

43,568,000

BMW

X5 40e

230/313

19,775,000

BMW

225xe Active Tourer

11,270,000

BMW

330e

12,360,000

Audi

A3 Sportback e-tron

75/102

Audi

Q7 e-tron

94/127

23,616,920

e-up!

160

82/60

8,183,880 (stock sale)

e-Golf

190

115/85

11,395,710

Golf GTI

50 (electric), 939 (mixed)

102/75

11,871,960

Passat Limousine GTE

50 (electric), 1,140 1070 (mixed)

115/85

13,318,490

Passat Variant GTE

50 (electric), 1,114 1050 (mixed)

115/85

13,558,520

BMW

9,899,000

Source: Information provided by car importers.

Budapest locations for charging an e-car Address

Car spaces

1134 Budapest, 56-osok tere

1051 Budapest, Akadémia utca 1.

1054 Budapest, Alkotmány utca 1.

1124 Budapest, Apor Vilmos tér 11-12.

1065 Budapest, Bajcsy-Zsilinszky út 15.

1114 Budapest, Bartók Béla út 1.

1036 Budapest, Bécsi út 56.

1043 Budapest, Berda József utca 15.

1068 Budapest, Dózsa György út 84.

1115 Budapest, Etele tér 3-4.

1035 Budapest, Flórián tér 8.

1013 Budapest, Fő utca 44-55.

1076 Budapest, Garay utca 6-14.

1021 Budapest, Hűvösvölgy út (P+R parkoló)

1125 Budapest, Istenhegyi út 1-3.

1137 Budapest, Jászai Mari tér 6.

1142 Budapest, Kacsóh Pongrác út (Mexikói út)

1013 Budapest, Lánchíd utca 5.

1138 Budapest, Margitsziget

1027 Budapest, Medve utca 17.

1061 Budapest, Oktogon 2.

1103 Budapest, Regina köz 2. (KÖKI Terminál)

1115 Budapest, Sárbogárdi út 24.

1138 Budapest, Váci út 178. (Duna Pláza)

1133 Budapest, Váci út 72-74.

1031 Budapest, Záhony utca 7.

1051 Budapest, Erzsébet tér 7. (Hotel Kempinski Corvinus)

1024 Budapest, Lövőház utca 2.-6. (Mamut II garage)

1125 Budapest, Istenhegyi út 55.

1062 Budapest, Váci út 1-3. (WestEnd City Center)

Source: http://www.holtoltsek.hu/hu/szolgaltatasok/toltoallomasok/11-magyarorszag

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The Hungarian Gas Transport Cluster Association (MGKKE) has a PANNONLNG project to develop filling stations and related infrastructure for liquified natural gas. Henrik Domanovszky, President of the MGKKE, explains more in this interview. Q: The plan calls for construction of five LNG filling stations. How much of a demand is there for this kind of gas now? A: We see increasing demand on the market. Regional public transportation companies and also Henrik Domanovszky. big logistic companies have shown A: We already see increasing demand interest in LNG. on the market. Mostly taxi drivers Q: Do you think the existence of recognized the cost saving side of these filling stations, and others CNG, so we see more and more like them, will encourage greater CNG cabs month to month. We also receive questions from privte use of LNG? A: Absolutely. We are already in citizens who plan to purchase CNG negotiations with municipalities, cars. We estimate the number of regional public transport companies CNG cars registered and used in and international logistic companies, Hungary at between 5,000 and 7,000. who are really interested in switching Now we have 9 points in the country their fleets to LNG/CNG fuel vehicles. where CNG is available for private They see and understand the customers, but this coverage will economic and also environmental improve with big steps in the next 1-3 years. benefits of LNG technology. Q: How far are we from reaching “critical mass”, where it makes sense for many vehicles to switch to LNG fuel? A: When we reach the nationwide coverage for LNG (which means 5 filling stations + 20-30 places where we can deploy LNG for logistic and regional public transportation vehicles), from that point LNG will absolutely be an attractive option. Q: Can you say something about the environmental benefits of LNG? A: In the world of transport fuels available today, it is proven that the most favorable is biomethane. First, the organic material used as raw material comes from a natural cycle; and energy input required to produce it is environmentally friendly, and can actually be achieved with CO2-free fuel benefits. Second, biomethane used in engines results in the cleanest internal combustion: a sulfur-free, nonparticulate, low NOx and hydrocarbon emissions. It has only one tenth of the environmental impact and the social cost of diesel at the level of technology available in today’s heavy vehicles. Due to these properties, bio fuel powered vehicles have been shown to result in a cleaner fuel than either one of today’s electric vehicles. Q: What about CNG? What are CNG’s benefits? Will the network you are working on help to encourage that fuel too?

Q: What stage is the project in and how is it going? A: We are closing the first phase of the project as all the studies are ready; now we are turning to the LNG coverage improvement phase. Q: Is there anything else you would like to add? A: The CNG bus fleets are really booming in Hungary. After Kaposvár, we just handed over a 75 buses fleet to Miskolc. And recently, Nyíregyháza decided to change their bus fleet to a CNG fuel fleet. We have a very recent test with tremendous results: Measurements showed that the Miskolc gas buses emit dramatically lower emissions than diesel ones. The new gas buses released 99.2% less nitrogen dioxide into the air. The Miskolc bus fleet with 75 units, CNG fueled bus was renewed this year, which is a milestone in Hungarian gaspowered transport. The Hungarian Gas Transport Cluster Association (MGKKE) incorporates several prestigious organizations, including the Institute for Transport Sciences, to work with as part of the PAN LNG Project, the creation of a gas-transport future. Thanks to this cooperation opportunity, our country for the first time, became a place where researchers measure emissions under real conditions. The so-called PEMS gauge measurements carried out have shown reason to be optimistic about gas operations here.

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

E-cars sold in Hungary as of May 1 Car make

2016. 05. 18. 20:50

www.bbj.hu

Budapest Business Journal | May 20 – June 2, 2016

Two wheels are better than four

Photos: Magyar Kerékpárosklub - Krisztián Bódis

With the extension of the capital’s bicycle path network and the adoption of infrastructure from more bicycle-friendly cities across Europe, Budapest could soon reap the economic rewards of opening the door wide open to two-wheeled transport. ANIKO FENYVESI

Rush-hour traffic in Budapest is becoming increasingly unbearable, and in the absence of a complex and costly urban transport network, the only real and immediate solution is to adopt a more bicycle-friendly approach to urban commuting, a trend that appears to be on the rise in Budapest. Growth in the number of cyclist commuters has a huge impact on all aspects of city life from ease of transport and mobility, to fostering local businesses and boosting tourism, as well as lowering energy dependence. Most importantly, if more people use bicycles as a means of transport, the lessening impact on the environment can generate huge cost savings. Measures to reduce traffic in the core of Budapest and create public space and sustainable public transport have resulted in economic and environmental revitalization, according to a report by the Hungarian Bicycle Club (HCC) submitted to the mayor’s office earlier this year. The report goes on to say that increasing the number of public spaces and replacing cars with bikes could have a positive impact on the value of real estate while reducing congestion on inner city streets. The HCC is the largest civil organization of its kind in Hungary and is instrumental in collecting data on urban cycling habits and lobbying for change with the relevant municipal bodies. Making the leap from driving a car to riding a bike is substantial for most, particularly if there are a disproportionate number of cars on the roads, as is the case in Budapest. The growing network of bicycle paths certainly helps the situation but when these paths integrate with sections of road crowded with drivers that lack the necessary skills or patience to handle the presence of cyclists, conflicts frequently arise. The city’s many bridges, most of which are difficult and dangerous to cross, complicate this says the HCC. Bike sharing schemes such as the MOL Bubi system have helped people become more acquainted with bicycle culture, although the Bubi system is not without its flaws. From the complexity of navigating the interface to the sheer weight and cumbersome nature of the

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It seems everyone is getting on a bike in Budapest these days.

bikes, investing in your own bike may prove a better option. Statistics compiled by the Budapest Transport Authority (BKK) and the HCC are compelling in revealing that the city is moving towards very positive change. Data collected over 20 years at 31 measuring stations across the city reveal that there are 11 times more cyclist on Budapest’s roads than 20 years ago, and cyclists currently make up approximately 12% of all commuters. A complementary survey conducted by BKK and HCC revealed that while the number of cyclists in Budapest is on the rise, cycling conditions and safety are improving and the number of accidents are on the decline. “With the help and recommendations of the Hungarian Cyclists Club, the city has adopted solutions in the past few years that work well elsewhere. The overall aim of such initiatives is to make bicycle commuting more desirable and more commonplace,” Halász Áron, the spokesperson for the HCC told the Budapest Business Journal.

Biking is better In its 2013 report, the European Cyclist Federation explicitly outlined the economic benefits of cycling. In addition to the obvious health benefits and reduced fatalities commonly associated with car travel, easing of congestion, fuel savings, reduced C02 emissions and reduced air and noise pollution were estimated to generate as much as €155 billion in savings during the 2010-2011 period across the EU, while cycling generated €44 bln for the tourism industry and €18 bln for the bicycle industry in terms of manufacturing, maintenance, rentals etc. A closer look at one of Europe’s most bike-friendly cities, Copenhagen, reveals some interesting findings that support an argument for not only choosing to bike but also for the adoption of an infrastructure that supports greener commutes. According to a database compiled by the city of Copenhagen since the 1990s entitled Copenhagen Bicycle Account, of all commutes taking place in the Danish capital, 45% are carried out by bike, which is remarkable given the city’s very northern longitude. Data also revealed that for every one kilometer pedaled by bike during rush hour, there is a socioeconomic gain of €0.20 while the same trip by car results in a loss of €0.70.

2016. 05. 18. 20:50

www.bbj.hu

Budapest Business Journal | May 20 – June 2, 2016

Office developers build green commutes Metro access and bike parking are considerations among those planning new offices in Budapest, as environmental concerns gain in importance. GARY J. MORRELL

As residential – and to some extent retail – development in Budapest shows a tendency toward urban sprawl, most office developers these days are trying to ensure that green commutes are built in to their properties. The conventional wisdom among developers is that successful office complexes need to be in locations that provide direct access to public transport links, perhaps most importantly metro stations, in addition to major road network access. This could be seen as a maturing of the market with the current necessity for owners to meet sustainability requirements that require less carbon emissions and shorter journey times through a public transport option. Further, tenants now require the provision of secure parking for bikes in addition to The new Metro 4 line has put South Buda on line for greener commutes. Shown is the stop at Bikás Park. changing rooms and shower facilities, reflecting the changing life-styles of staff and the direct access of many office Skanska is set to complete the twoAlso in Buda, Futureal plans to develop centers to bicycle lanes on road routes. phased 26,200 sqm Nordic Light on Váci the Budapest One business park adjacent Another issue increasingly important út in May and September of this year to the terminus of the Metro 4 line and in the coming years is expected to be respectively. The project has Leadership the redeveloped Kelenföld railway station, the demand for the inclusion of battery in Energy and Environmental Design located on the western edge of Budapest. charging points and parking facilities (LEED) “Gold” accreditation (the second The 45,000 sqm BREEAM-accredited for electric cars. The commercial interest highest of four categories), and according project is being promoted as part of the of developers in attracting tenants is to András Schmidt, green business redevelopment of a road, metro and rail coinciding with the requirement to meet manager at Skanska Property Hungary, transport hub. The development will international sustainability regulations it achieved some of the highest points in provide bicycle racks and changing room and gain accreditation in order to provide the ranking due to direct access to metro facilities. According to Futureal, the a possible exit strategy with a sale lines and other forms of public transport project will have the required criteria to investors. Gone are the days when and the provision of bike storage, for BREEAM and LEED sustainability ratings, as well as those of DGNB, the developers launched office projects with changing rooms and shower facilities. ample parking provision in out-of-city rated in five categories. “This category The U.S.-based LEED’s “Location and most commonly used system in Germanlocations. encourages better access to sustainable Transportation” category of credits is speaking countries. “The provision of 50-100 bicycle means of transport for building users,” based on location, connectivity to public Futureal is also constructing the parking spaces is now a standard feature the organization said. “Issues in this transport and accommodation made for 25,000 sqm Nokia Tower at Corvin for class ‘A’ office buildings,” said János category focus on the accessibility of those using alternative transportation Promenade. The BREEAM-accredited Seifert, head of property management public transport and alternative transport methods. project will provide Nokia with an IT and at Cushman & Wakefield. “This is due solutions that support reductions in Under the LEED rules, green telecommunications R&D center. The to a combination of tenant demand due car journeys and, therefore, congestion certification credits are given to buildings tower is located adjacent to the 15,000 to the growing popularity of cycling and CO2 emissions over the life of the that provide secure parking and shower sqm Corvin Technology & Science Park, as part of a healthy life-style and the building. It also addresses the provision facilities for cyclists, as well as parking which will form the fifth office phase of the need for buildings to meet sustainability of transport and movement infrastructure for green vehicles and other alternative Promenade development. The 22-hectare standards. Developers now provide to encourage the use of sustainable fuel hybrid vehicles. urban rehabilitation project provides separate premises for cyclists to shower modes of transport.” retail, leisure, office and residential space and change. Older office center owners Of the immediate office pipeline, Váci út, South Buda benefit from metro at a road, metro and tram transportation are also upgrading their buildings to meet 135,000 sqm Váci Greens by Atenor hub with direct access to the city center. this demand. The development of office Group, which has BREEAM “Excellent” Most analysts agree that one of the main In the neighboring ninth district, centers close to, or with direct access to accreditation (the second highest of five drivers of the booming office development Wing is preparing the groundwork levels), is located adjacent to a metro on Váci út is the good public transport for the 57,000 sqm Magyar Telekom the metro, is also a dominant trend.” station and on final completion will links; the other area currently popular headquarters. Again, the complex is provide around 580 bicycle parking lots with developers is southern Buda, where located at a metro, tram and road network Access matters in green rating with access to a cycle lane on Váci út. the Metro 4 line has been completed. hub. The U.K.-based Building Research Also in the Váci corridor, Wing is due In the latter area, the Hungarian GRT The first phase of the CEU Campus Establishment Environmental Assess to complete its 12,000 sqm V17 office Group is planning the third, 18,000 sqm Redevelopment Project in the historical Methodology (BREEAM) for example, center in summer. The BREEAM “Very phase of Office Gardens, due to complete fifth district received a 100% BREEAM which is the most used sustainability Good” (third highest) accredited project in the fourth quarter of next year. The transportation rating for providing as rating system in Hungary, lists access by will provide 95 cycle places with shower profile of the project has arguably been many as 200 bicycle racks and shower sustainable means of transport as one of facilities and a direct link to metro, trolley upgraded due to the completion of Metro facilities and no car parking facilities, the key evaluation strategies in the design, bus, tram links adjacent to the Nyugati 4. The project also provides secure bicycle apart from a limited number of service construction and operation of a building railway station. parking with direct access to cycle lanes. spaces.

“Developers now provide separate premises for cyclists to shower and change. Older office center owners are also upgrading their buildings to meet this demand. “

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2016. 05. 18. 20:50

www.bbj.hu

Budapest Business Journal | May 20 – June 2, 2016

Hungarian firm is behind electric plane While it may not be capable of extended flights, the eFusion, developed in Kecskemét, is ideal for pilots to conduct soon-to-be compulsory emergency landing practice. LEVENTE HÖRÖMPÖLI-TÓTH

A remarkable aircraft developed here in Hungary flies on battery power alone. While it may not be ready for long distance flight, it is ideal for training, and the electric vehicle seems to have plugged into a special niche market. Magnus Aircraft in Kecskemét teamed up with tech giant Siemens about a year ago in order to develop the electric airplane, christened eFusion. The effort garnered the group the Aero 2016 innovation prize at a major aviation show in Friedrichshafen, and it should translate into revenue, as the group expects to begin selling the vehicle next year. “The real hurdle for developers lies in the inadequate advancement of battery technology. Therefore, we targeted the area of education, more specifically upset recovery training where sessions normally top 30 minutes. That time span can be confidently covered by a single charging,” Domonkos Andréka, spokesperson of Magnus Aircraft told the Budapest Business Journal. A fortunate turn of events, namely a regulatory change, is bound to give a further push to the project. As of January 1, commercial pilots will be required to complete 40 hours of such training every two years, during which they top up their skills in landing a plane in an emergency without using any electronics. Right now, eFusion is the only airplane on the market designed to fulfill the needs of this specific niche. “Interest is abundant for our invention. By investing a bit more when buying the aircraft customers will be able to realize

huge savings in the long run. During a single training flight, up to 100 liters of kerosene may be burnt, whereas our solution is based on a zero fuel scheme supported by a rechargeable battery pack replaceable within three minutes,” Andréka said. Accordingly, pre-orders have been streaming in from China, India and the Benelux countries, among others, where zero emission traffic is a hot issue. Competition is fierce out there, no doubt; however, rival players seem to be struggling with the same obstacles. “The primary goal of the industry is to use hybrid engines for big jets that could use electric drive at ascent and descent. For small planes like ours, the immediate target is to reach one and a half hours The Magnus and Siemens team with their battery-powered plane. of safe flight. Staying up there for four straight hours won’t happen anytime soon,” Andréka said. There’s still a lot do in terms of recently been extended to the Hungarian development, however, before serial flagship institution, the Technical production of the e-plane, scheduled for University of Budapest. Dual training scores again early 2018, can be launched. Success “We are recruiting heavily, employing Magnus Aircraft can further build on its is dependent on the cooperation with some 30-40 people in the short-term,” already solid reputation as a manufacturer. Siemens, which provides immense Andréka noted. Signs hint that demand Fusion, the piston-engine version of the knowledge power and the full-scale tool is likely to keep soaring. China alone newly developed electric prototype is kit of a top multinational corporation. wants to train some 70,000 commercial a widely popular model. It is uniquely Magnus Aircraft’s location in Kecskemét pilots annually from next year on. Right made of composite materials only, which ensures that the technical expertise will now the yearly number amounts to merely substantially cuts fuel consumption. remain available for a long time to come. 2,000. So stay tuned for more good news This cutting-edge, ultra-light building Just like Mercedes, Siemens intends to about Magnus Aircraft, which has every technology allows the electric version to capitalize on the dual training program reason to hope that it can dominate the offered by the local college, which has global e-plane landscape. score exceptionally well at efficiency.

Chinese green vehicle maker moves to BP CHRISTIAN KESZTHELYI

cover every aspect of urban transport, Gu Yifeng, the president of CRRC CRRC Industrial Investment Co. Ltd., Urban Traffic Co. Ltd., said at the press a Chinese firm that specializes in the conference. He added that the company production of green vehicles, opened an believes Budapest is the best location for office in Budapest on May 5, establishing the fastest expansion of the firm in Europe. the firmʼs first official presence in Europe. According to Jie, the firm will be “We trust that in the whole European working to interest governments in large Union and in Hungary, tendencies will infrastructure projects, and they are turn towards changing diesel vehicles to expecting that these projects will also electronic ones,” Pei Jie, director of the involve some EU funding. European Region at CRRC Urban Traffic “Our company is currently in its Co. Ltd., told the Budapest Business initial first phase and we are gathering Journal. “We believe that EU members information and trying to learn about and Hungary will introduce plans soon the mechanisms here,” Jie said. “We do to regulate the market.” not know yet whether our aims and plans The company offers energy-efficient will meet with governmental intentions, An image of one of the electric buses that CRRC Industrial Investment Co. makes. urban public transport solutions that but we are very optimistic.”

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2016. 05. 18. 20:50

www.bbj.hu

Budapest Business Journal | May 20 – June 2, 2016

EXPERT OPINION

Continental tires roll cleaner, cheaper

Thanks to efforts to improve performance – and to replace rubber plantations with dandelion fields – the tire company is helping businesses save money, and the environment.

As one of the world leading automotive suppliers, Continental considers sustainable development a priority target in the rubber industry, and in the cargo hauling sector as well. The German-based company provides several innovations for using less fuel, which is a key way to improve performance in goods traffic. ContiPressureCheck can be considered a state of the art development, because it helps to reduce the usage of fuel and the rate of harmful emissions. Continental tires have also proven themselves in an international fuelefficiency competition. The tires made from dandelion plants represent a future innovation, which can create greener tire production. Today, Continental is working for the future of our children. CONTIPRESSURECHECK In long distance hauling, reducing fuel costs has become a key consideration. Using less fuel also helps to reduce harmful emissions, and also plays key role in decreasing the greenhouse effect. That is why Continental provides a tire pressure monitoring system for trucks and buses that helps drive down overall operating costs. The new ContiPressureCheck system continuously measures the pressure and temperature of all tires on your vehicle - even when you are driving. This helps save fuel and increase mileage. It also significantly reduces the risk of tire failure, while maintaining the value of the casing, and thus the tire’s retreadability. Driving with the correct air pressure can make any vehicle fleet more economical, and because it lowers fuel consumption, it reduces tire wear, decreases CO2 emissions and consequently protects the environment. The ContiPressureCheck contains tire sensors, which are mounted on the tire inner liner inside a rubber housing (tire sensor container) and continuously measure the tire pressure and temperature. An additional receiver can be used to receive sensor signals in challenging radio frequency conditions. ContiPressureCheck also contains a Central Control Unit (CCC): this device receives tire sensor signals directly or via the additional receiver, evaluates the data and provides the status of all

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currently the reigning champion of the competition, with its driver Johannes Jeub saving 3.85 liters of fuel over 100 kilometers – on Continental tires. In second place is driver Thomas Moser, from the transport company Gotthold The system covers almost all Haller Spedition, who achieved fuel combinations of wheel fitment, from savings of 2.30 liters. The third-placed single-axle trailer to six-axle vehicle driver, Thomas Stohrer, also comes configurations, with a maximum of 24 from Haller. He achieved fuel savings tires. It is suitable for tractors, trailers, of 2.16 liters over 100 kilometers. tractor/trailer combinations, as well as buses and coaches. Thanks to the The winner in the Czech Republic and new ContiPressureCheck system, it is Slovakia is Petr Němeček, a driver possible to reduce operating costs by for the Czech transport company up to €1,500 per vehicle a year while Zlíntrans, who saved 2.55 liters of fuel improving driver and vehicle safety. over 100 kilometers using Continental tires. Closely behind Němeček is BEAT THE BEST second-placed Zdenek Lousek from Premium tires from Continental the Czech transport company Roline, not only deliver high mileage and who saved 2.42 liters of fuel. In third reliable braking characteristics – place is Jozef Molobicky, a driver they are also genuine fuel-savers. from the Slovak transport company This was demonstrated by the Comextrans, who saved 2.30 liters of recently concluded “Beat the Best” fuel over 100 kilometers. competition, in which participants were able to test the economic At 2.55 and 3.85 liters of diesel saved efficiency of third-generation per vehicle over 100 kilometers, given Continental tires in comparison an annual distance covered of 120,000 with other premium brands. A total kilometers, the winning transport of 40 transport companies from companies achieved savings of around three European countries took the €3,000 to €5,000 per truck trailer. The opportunity to test the fuel efficiency basis for this calculation is the diesel of Continental’s premium tires in their price of approximately €0.92 per liter of own fleets. The aim of the biannual fuel in the Czech Republic and €1.10 in “Beat the Best” competition is to Germany applicable at the time of the achieve the greatest possible fuel- competition. saving potential using Continental tires from the new generation. The results GREEN TIRES FROM DANDELION speak for themselves: over a period The Fraunhofer Institute for Molecular of six months, the winning tires from Biology and Applied Ecology, the Germany saved 3.85 liters of fuel for Institute for Plant Biology and every 100 kilometers. In the same time Biotechnology of the University period, the first-place winner from of Münster, and the Tire Division Czech Republic achieved fuel savings of Continental in Hanover are of 2.55 liters per 100 kilometers. successfully collaborating on a project entitled RUBIN (Industrial Emergence In Germany, the transport company of Natural Rubber from Dandelion). Franz-Peter Vendel GmbH & Co. KG is The objective of this joint project is to tires to a display and perhaps also to telematic systems. Fixed inside the driver’s cab, the display shows the tire pressures and temperatures, and warns the driver in the event of pressure loss.

develop a procedure for the industrial use of dandelion as a source of rubber. In agricultural terms, dandelion is an undemanding plant, even in the northern hemisphere, and it can be cultivated on land not suitable for food production. This means that rubber production is conceivable near our tire factories, for instance, and the significantly shorter transport routes can also reduce CO2-emissions. Continental calls these special tries Taraxagum, which is derived from the botanical name for dandelion (taraxacum). The natural rubber in the treads of the test tires was completely replaced with dandelion. Tires made from dandelion rubber show an equivalent property profile compared with tires made from conventional natural rubber from the rubber tree (Hevea brasiliensis). The first test tires have already been tested under both summer and winter conditions at the Contidrom proving grounds near Hanover, Germany, as well as in Arvidsjaur, Sweden. The first test tires were introduced during the International Motor Show (IAA) in 2014, in Hanover. The project’s long-term goal is to find an ecologically, economically and socially viable solution for increasing natural rubber demand. Russian dandelion can be cultivated on previously unused acreage in temperate regions throughout Europe, including areas with Continental’s tire plants. This shortens transport routes and reduces the environmental impact. In May 2014, the dandelion rubber project was awarded the prestigious environmental and economic prize “GreenTec Award“ in the Automobilty category. Continental intends to launch series production of tires made from dandelion rubber in five-to-ten years.

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

BBJ STAFF

2016. 05. 18. 20:50

www.bbj.hu

Budapest Business Journal | May 20 – June 2, 2016

Expert sees green transport arriving in a decade Interviewed at a Budapest conference on climate change, a Siemens expert on urban development says big improvements are already underway.

LED technology installed in traffic lights leads to 80-90% in energy savings, as well as offering a longer working life and brighter lights. Also the intelligent traffic light control center Siemens SITRAFFIC Scala, installed in Budapest in 2013 in the framework of Euro-regional EasyWay Project Phase II, offers a continuous online connection and much better performance, leading to less congestion on roads. Siemens has also cooperated in Hungary’s railway and underground network, with SIMIS IS interlocking in the case of the former and the ComputerBased Train Control (CBTC) driverless system for the latter. A Siemens system is operating the carriages of the Metro 4 line in Budapest, making it the first driverless subway in Central Eastern Europe.

CHRISTIAN KESZTHELYI

The Hungarian headquarters of Siemens recently hosted the Action 2020 professional forum, which was organized by the Business Council for Sustainable Development in Hungary. The conference addressed the challenges of climate change. During the conference, Martin Powell, head of urban development at Siemens AG in London spoke with the Budapest Business Journal about the latest developments in green transport.

What tools or incentives could governments apply to motivate businesses to adopt green thinking? A: I think a lot of businesses are adopting green thinking now. Siemens has made a huge commitment to a zero carbon footprint as a business in a very tight time frame. And we are a big industrial giant, very energy-intensive, so this was a big commitment. Around digitization, the whole technology landscape is changing very quickly, and our role is to keep governments and city leaders informed about our solutions. We have developed tools to facilitate these kinds of discussions. I cannot speak for other businesses, but in general I think that a lot of people are focusing on being greener in terms of consuming less energy and less CO2, but also generating less pollution in terms of emissions.

What are the latest trends in green transportation? A: I think the air is getting cleaner and the efforts to reduce tailpipe emissions have become much more effective than they used to be. Also, the consciousness of the regular citizen in terms of health impacts is obviously driving action in cities: Citizens are becoming more responsible. In terms of mass transit, I believe huge gains could be made in driverless systems, because the basic infrastructure cost is 80-90% and for an additional 10% or maybe 20% you can automate and digitalize existing infrastructure. Automizing impacts performance hugely, as driverless systems save lots of energy. In addition to that, they add capacity, they are safer, and they even create lots of jobs. Also, smoothing traffic flow and using traffic management systems again not only keeps the city moving, but also improves air quality. This way you can have better traffic flows and you impact air quality significantly. Some of the tools like congestion charging and low emission zones are also fantastic to incentivize people to change their behavior, and they also create big revenues for the city that you can invest in new and cleaner buses and transport solutions.

Q Martin Powell, head of urban development at Siemens AG in London.

“Making public transportation more accessible, safer and easier to use for people is a good way forward. I am very impressed with what I have seen in Budapest.”

further in these concepts. Making public transportation more accessible, safer and easier to use for people is a good way forward. I am very impressed with what I have seen in Budapest. The one thing I observed is a lack of parking, so maybe finding ways to improve parking would be one of my comments, which I also made in Moscow, where nearly 30% of congestion is caused by people looking for parking spaces. We have technology solutions that can enable you to find parking spaces right away.

How fast are these trends developing? When will we be able to say that green transport took over? A: Well, starting now. The imperative is not just reduction in energy but it is the impacts of rapid urbanization, Can you tell us about some particularly in Asia or India. But, in after which investment in longer-term of the projects that Siemens has carried out in Budapest? general, GDP growth – even in European solutions will need to be found. A: Absolutely. Combino trams in cities – has resulted in wealthier people Hungary have been manufactured in wanting more cars and vehicles, so we How do you see Hungary, an environmentally friendly design. have reached a point where we need especially Budapest, in this The braking energy generated by the to optimize the transport systems that trend? we have in place today, but think hard A: I like a lot of what I have seen in a vehicles is stored in the network and about investing in the future as well. limited time. They’re making the metro can be used by other trams, resulting This process has definitely begun and driverless; they’re upgrading and in approximately 20% of energy being in the next five-to-ten years I think renewing trams. This is very visible. saved. A computer aided braking system the optimization of existing transport All of these things are steps towards also means the braking machinery will systems will be the primary focus, making the city smart and moving last longer.

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The municipality of Budapest has been thinking about introducing congestion charges in the downtown area; do you think this could be an effective form of incentivization? A: It is one way. From having experience of it in London, I understand it is a highly political and a difficult decision to make. But congestion charging is effective where it has been deployed. Other things Budapest could do is introduce low emission zones, which are less politically challenging. This also creates revenue for the city to invest in public transport. I think if the city also focuses much more on connections through the transport network, which every city could focus on more, then this would be very effective. Congestion charging could work, but I understand that in a local context there are many challenges in making it happen. I cannot say whether it would be a good or a bad thing for Budapest; it was a good thing for London, though.

Is there anything you would like to add? A: Digital technology and the ability to reach out to citizens has opened up many areas of opportunity for businesses to improve urban life, and as long as governments ensure that these good ideas maximize the environmental benefits, then I feel very positive about what cities are capable of doing.

2016. 05. 18. 20:50

www.bbj.hu

Budapest Business Journal | May 20 – June 2, 2016

BP climate conferees: Cities already smarter

CEU BUSINESS SCHOOL

Car sharing scheme could help keep Budapest air clean Anita Kovács Alumnus CEU BUSINESS SCHOOL

Martin Powell, head of urban development at Siemens AG in London, giving his presentation.

Businesses will play a vital role in helping smart cities adapt to the urgent need to generate less CO2 pollution. CHRISTIAN KESZTHELYI

Smart cities are not a future dream – they are already here, according to participants of Action 2020, a professional forum organized by Business Council for Sustainable Development in Hungary (BCSDH) on May 11. The BCSDH seeks to promote greener business, and its conference, held at the Hungarian headquarters of Siemens here in Budapest, focused on climate change and ways to combat it. Members of the conference said that BCSDH President Attila Chikán Jr. the concept of smart cities is no longer a future vision, but rather an ongoing the changes needed are longer-term process. They agreed that it is a path that than political cycles, the business and many cities have already started to follow. civilian fields should be the engines of “By 2025 cities are required to show sustainability and be the scene for the a commitment to reduce their CO2 most innovative solutions being born,” emissions by 50%, and they are left with Bartus added. less than ten years to do that,” Martin The role of business is vital, it was Powell, head of urban development at stressed. “New solutions, models and Siemens AG in London, said during his sometimes radical changes are needed to implement aims related to climate presentation at the event. As the trend of urbanization change, and the role of the business continues to draw more people from sector has become undisputed, and the countryside, and for more people increasing its positive impact is our to own cars and other vehicles, the mutual responsibility,” BCSDH President need to reduce CO2 emissions in order Attila Chikán Jr. said. to lower air pollution has never been Yet the changes required are not higher. Fortunately, changes are not only universal, and while technological required, but are already happening, solutions can be similar and in many BCSDH said in a press statement. cases are already available, all cities need “It is not a question anymore of to implement these customized to their whether we step on the road paved by own needs. “Cities are unique and behave greener trends: We have already set off in different ways, therefore infrastructure on that road,” Gábor Bartus, secretary needs to be changed in a way to match the of the National Council for Sustainable uniqueness of the cities,” Siemens’ Powell Development (NCSD) said at the event. commented. “Cities are responsible for He stressed that there are many factors the lives and dreams of their dwellers, that need to be tackled, such as the and they need to develop and grow in a projection that the world will have way that nature will not be harmed and exploited 30% of all its so-called natural citizens will benefit from living an urban capital (natural resources) by 2030. “As life,” he added.

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The capital could benefit from wider use of free-floating car sharing systems, an environmentally friendly sharing economy scheme.

target audience, they happily renounce to use their own car. They share the cars because car sharing combined with other elements of public transport makes car ownership, or at the very least the second car, unnecessary and in an indirect way it thus reduces congestion, noise and air pollution in cities. BMW introduced DriveNow, a freefloating car sharing system in 2011, initially in a handful of German cities. Now it is operating in six countries. Mercedes followed with car2go, which is similar to DriveNow. Audi introduced its own concept some years ago, called AudiUnite, but there are other providers like Zipcar, Flinkster, Autolib and many others too. In Hungary you might have heard of Avalon, a pioneering firm that pitched itself at people familiar with car sharing schemes when it launched its CarSharing Community Car service in 2011. It has considerably fewer cars compared to successful international players like DriveNow and car2go, and operates a fixfloating system with lower-middle class cars. Well, these all make a difference, right? One thing is sure: the market for car sharing is booming worldwide. According to a BCG report, North America, Europe and Pacific-Asia all together account for 85,000 vehicles, 5.8 million users, 2.5 billion booked minutes per year and €650 million in revenues in the car sharing business in 2015. If we Hungarians want to enjoy this driving experience, we have to change the way we think about owning cars, and realize the many advantages of sharing. Furthermore, our society needs to be culturally mature enough to take care of shared items, to ensure a pleasant experience for the next user as well. Thirdly, our community should be a little bit more open-minded when it comes to experiencing new methods of transportation: the most recent example is the Hungarian taxi driver’s resistance to Uber. Obviously, there are some genuine economic reasons behind this rebellion – like the small size of the Hungarian market and the largely untaxed income that is generated by the Uber drivers – but still, a free-floating car-sharing concept could change Budapest‘s transportation life. Not to mention how green this concept could be if it encouraged development of an infrastructure for electric cars. The only question is which service provider will take the time and money to dig deeper and prepare proper market research to see whether Budapest is ready for this modern mobility concept.

Transportation is known to be major contributor to global climate change. Air pollution and greenhouse gas emissions from vehicles clearly have a negative effect on our planet and our everyday lives. Even if we are thankful to Mr. Benz for our modern automobiles, the increasing number of vehicles on the streets, and the gases they produce, are a major problem in many cities from LA to Singapore – and of course in Budapest, too. According to the European Environment Agency, “the air quality in Hungary generally corresponds to the EU average, [….] but there are significant differences between rural parts and larger cities”. Based on UNEP research, one of the key transport-related challenges for Hungary is the high ownership of cars. The “Environmental stage report for Budapest” prepared in 2013 explains that Budapest’s air load level exceeds the prescribed level. One means of allowing for urban mobility transport is the so-called free-floating car sharing system. In the world of Uber and Airbnb, the concept of the sharing economy does not have to be introduced, but this is slightly different from those models. A free-floating car sharing system is an urban car rental concept in which you are offered one or more types of cars that are parked in the city center and can be located and reserved via smartphone or PC. If you are a registered customer of the service, you have a magic card that opens up the car for you. You jump in, start the engine with the start button and use the car as long as you want. You park the vehicle anywhere in the designated area on official parking lots and close the rental period at the end of your journey. You pay for the exact time period you used the vehicle. This article was compiled by Anita There are no commitments, no fuel costs, Kovács, COO of REKONTIR Group, no insurance, no car taxes or parking and was produced by Kovács and her tickets – all are included in the one-time colleagues as a team presentation delivered service registration fee and usage rate. in a Central European University Business So how can placing cars all over town School class. This column is part of a help to reduce pollution? The trick lies in continuing series of opinion columns from the resource utilization and in the changing experts at the Central European University transportation habits of urban people. If a Business School in Budapest. The opinions service provider can offer the right number stated here do not necessarily reflect those of cars and attractive car brands for the of the Budapest Business Journal.

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WHAT’S

ON BUDAPEST FOLK FEST May 18-22, various venues An essential addition to the city’s vibrant folk music scene, this event opens the summer season with a lyrical bang. Everyone in the world of Hungarian folk and world music worth a listen will be there from the old guard, to aspiring up-andcomers. This year’s selection includes: Shantel & Bukovina Club Orchestar, Vlatko Stefanovski’s Macedonian trio, Muzsikás and Amadinda in a joint concert, Roby Lakatos and his band, and the Téka Ensemble celebrating 40 years. Also check out some of the city’s best dance house tunes provided by Hungarian string bands, Moldavian and Gypsy players. The weekend program also features wine tastings and family-friendly events. fono.hu FALK ART FORUM May 21, Falk Miksa utca The city’s antique quarter comes alive for this biannual festival that fills the street with the wares of the neighboring galleries and shops and also features a

Fun things to d o in Budapest for the nex t t wo weeks.

charity auction. Browse rare finds from paintings, to jewelry, to furniture and other collectibles. Live music and edible treats are also on offer. Participating galleries include: Missionart, Prestige, Haas, and Biksády. Antiques will be on display from the following sellers: Artcore (French art deco), Moró (Japanese sculpture) and Wladis (old musical instruments). Outside of the festival, Falk Miksa is a popular destination for collectors year round. falkart.hu FESTIVAL OF MUSEUMS May 21-22, garden of Hungarian National Museum Running for over 20 years, the Festival of Museums is held every May during which over 120 Hungarian museums and galleries present a portion of their exhibits in the charming garden of the Hungarian National Museum. Visitors can take a virtual tour of each exhibitor without actually visiting their spaces. Live music, theater and dance performance as well as programs for kids are also part of the program. Take part in Hungarian

Black Sabbath. arts and crafts, ceramics, painting and photography workshops over the course of the two-day festival, which is free to enter. muzeumokmajalisa.hu ÓBUDA CRAFT BEER FESTIVAL May 21-22, Óbuda Fő tér Over 30 craft breweries and 200 varieties of beer will be on offer at this two-day festival held in the historic town center of Óbuda just north of the city center. Most breweries are from Hungary with only a handful from neighboring countries. The selection features veteran craft beer manufacturers as well as newcomers to the craft beer scene. To make the brews go down easier, there will be plenty of edible treats and live music from Hungarian to Irish folk, to jazz, to rock. GIDON KREMER, MIKHAIL PLETNEV AND THE RUSSIAN NATIONAL ORCHESTRA May 24, Palace of Arts It is rare for two soloists to appear at one concert, but on this evening audiences

will have the opportunity to hear a pair of global superstars. Latvian-born Gidon Kremer has been one of the worldʼs finest violinists for half a century. Throughout his career, he has focus on the lesserknown pieces from the violin repertoire as well as commissioned works. This program is dedicated to the works of Schumann and his rarely heard violin concerto. Conductor and pianist Mikhail Pletnev began his career a decade later than Kremer and went on to win a Grammy Award for Best Chamber Music Performance. In 1990 he formed the Russian National Orchestra, the first non state-supported symphony orchestra in Russia since 1917, which he has overseen as artistic director ever since. mupa.hu BEA PALYA AND MAYRA ANDRADE May 26, Palace of Arts Hungarian songstress, Bea Palya will perform with another singer who has heavily inspired her work. Each will sing songs separately and as a duet. Born in Cuba to parents from Cape Verde, Mayra Andrade grew up in Senegal, Angola and Germany as her family followed her diplomat stepfather from posting to posting. Although she returned to Santiago at age 14, she left three years later for Paris, where she settled permanently. The dominant influence in her career was the late Orlando Pantera who inspired her to seek out something out of the ordinary. Her sound ranges from Cape Verdean melodies to bossa nova and pop, to chansons and jazz. mupa.hu DE BEREN GIEREN May 26, Budapest Music Center

De Beren Gieren.

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Flemish acoustic-electronic piano trio De Beren Gieren (The Bear Vultures) are known for their unique energetic sound, cheerful melodies, complex structures and quirky song titles. Their polyrhythmic soundscapes, singalongs and elitist twists reveal an ability to change the mood abruptly in a way that keeps the audience on their toes. Following collaborations with Joachim Badenhorst, Jan Klare, Marc Ribot and Louis Sclavis and the much

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Budapest Business Journal | May 20 – June 2, 2016

Tom Harrell blows into Budapest.

Jazz master Tom Harrell visits Budapest On May 29. Tom Harrell, the American trumpet and flugelhorn jazz genius, will perform at the Budapest Music Center as a guest of Hungary’s Modern Art Orchestra.

Shantel & Bukovina Club Orchestar. appreciated live album “The Detour Fish” with trumpeter Susana Santos Silva, De Beren Gieren are now touring Europe with their third trio release “One Mirrors Many” that features self-made electronics alongside their characteristic acoustic sound of piano, bass and drums. bmc.hu

A master of the idiom and one of the most creative and dynamic jazz instrumentalists and composers of our time, Harrell was invited by one of the great Hungarian jazz musicians. “I was performing with my chamber ensemble in California and MAO trumpeter and director Kornél Fekete-Kovács played on a couple of songs. He’s a fantastic player,” Harrell says. “We kept in touch and I listened to some recordings of the MAO. The impact of the group is so beautiful. They play with both feeling and precision. I’m looking forward to hearing them interpret my music. There’s a special spirit to big band music. The sound of a large orchestra brings another dimension to the harmony and the musical colors are inspiring.”

PATARA IN TATA May 27-29, Tata, Old Lake The historic Turkish-Hungarian battle of 1597 will be reenacted in all its historic glory with authentically reproduced costumes, weapons and choreography to depict what the actual battle might have been like. Travel back in time to the 16th and 17th centuries in a celebration of the period with crafting and cooking workshops as well as exhibits reminiscent of an old fair complete with fire jugglers, horse shows and all manner of dances from authentic Turkish belly dances to a huge Hungarian folk dance event. Anachronists will be arriving from as far as Italy and Finland and a handful of neighboring countries to perform at the event. tataipatara.hu RYAN MCGARVEY May 29, A38 Already by the age of 28, Ryan McGarvey had won countless awards and toured internationally as a well respected, original blues-rock singersongwriter and guitarist. In 2010 Ryan was picked from over 4,000 artists to play at Eric Claptonʼs Crossroads Guitar Festival in Chicago. His two critically acclaimed studio albums have earned him admiration from fans and peers

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Gidon Kremer. alike. Ryan continues to grow as an artist, expanding his already established name in music. A38.hu BLACK SABBATH June 1, Papp László Budapest Sportaréna Could this be the end? Legendary heavy rockers Black Sabbath have announced that the aptly titled “The End” tour will in fact be their last. After making music and stirring fans and critics the world over for nearly five decades, the band are capping off their illustrious career with an 11-month tour that spans nearly two dozen countries. Often referred to as the first heavy metal band in the world, Black Sabbath will perform in Hungary with three quarters of the original lineup, including Ozzy of course. This show promises to be their most

monumental ever with a sophisticated light show and fireballs, as tradition dictates. livenation.hu BUDAVÁR BEER FESTIVAL June 2-5, Buda Castle Spanning more that 4,000 sqm on the grounds of the Buda Castle, this is by far the country’s largest beer festival and this year will be its last as the city embarks on an ambitious renovation project that will see the transformation of the city’s Castle District. The festival will feature over 200 beers from Hungary and abroad as well as a handful of craft beers and plenty of street food. Live music and beer related activities will complete the picture. Cider fans will also find their needs satiated. sorfesztival.hu

A Stanford University music composition graduate, Harrell has played with everyone from Dizzie Gillespie to Charlie Haden and composed and arranged for acts such as Carlos Santana, Vince Guaraldi and the Vanguard Jazz Orchestra. He frequently tops critics and readers polls in the magazines Down Beat and Jazz Times and is also a Grammy nominee. Budapest jazz aficionados are in for a rare treat, especially if they’re new to the remarkable playing of Harrell. More information is available online at the website of the Budapest Music Center (bmc.hu). –David Holzer

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Budapest Business Journal | May 20 – June 2, 2016

Wine: Lesser known names make their mark A journey to the Mátra hills unearths a source of some fine, fruity Olaszrizling. ROB SMYTH

After being positively surprised by the high quality and low price of the Molnár és Fiai Olaszrizling 2015 from Mátra, tasted earlier this year in Budapest, I positively jumped at the opportunity to visit his cellar and vineyards last month to find the source of this tasty stuff. The wine in question comes from young vines of four years of age on the beautifully situated Sár-hegy that overlooks the village of Abasár in the Mátra. Not only does this scenic and steep vineyard have an ideal south-facing exposure, it is also blessed with complex volcanic soils that keep acidity nicely and retain water, even in a hot vintage such as 2015. The main barrier to making Olaszrizling that is both vibrant and concentrated is that the acidity often drops off sharply as the grapes reach the stage of ripeness required to make serious wine. However, Molnár és

Fiai’s 2015 has everything in balance and in the right place. Made only in tanks with no ageing in oak, this wine has complex floral aromas of orange blossom alongside green apple, lime, a hint of apple cider, orange peel and a hint of a vegetal note – the latter being typical of Olaszrizling. The palate has good body and finishes with a refreshing twist of lime and lime zest on the finish. The 4 g/ltr of residual sugar provides a soft landing but it just stops short of heading in a sweet direction thanks to the refreshing acidity. This is excellent value at just HUF 1,000 per bottle from the cellar and more precisely comes from the Sár-hegy Jóvilág and Falukuti vineyards – the former being just the

Rózsavölgyi Salon Arts & Café – King Solomon

Rózsavölgyi Szalon has recently celebrated its 4th anniversary, and on June 9, will have its last premiere of this season. King Solomon was written in 1979 by Romain Gary, who also gained worldwide popularity as Émile Ajar.

as a toilet attendant in a basement. Feeling a sense of general humanism, Jean takes Madame Cora dancing and eventually to bed, leading to humiliating moments and self-sacrificing compromises, only for everything to end well… Cast: Tamás Jordán, Judit Hernádi, Tamás Mohai, Vera Sipos.

second vintage and the latter the virgin vintage. It remains to be seen whether the winemaker can repeat this success from these vineyards in forthcoming vintages, especially as the so-called virgin vintages usually bear wines that are bursting with youthful energy – usually falling back a couple of notches until the vines gain some age. However, the attention to detail that winemaker Gábor Molnár pays in his cellar suggests that he could be a great source of Olaszrizling, and other wines, in coming years. Incidentally, he happily reported that neither his nor the area’s vineyards were hit by the freeze in April that devastated many vineyards in Hungary, killing fledgling buds in vineyards up and down the land. Could it have had something to do with the proximity of the Mátra power station, I wonder? Molnár describes the process of making white wine as akin to converting peach juice to apple juice and goes about it with aplomb. He says he’s looking for fruitiness and tasting his wines reveals that he certainly gets it. Accordingly, he carries out quick processing and settling, and is very careful to avoid oxidation that kills the fresh aromas when processing the grapes, and found the 38ºC temperatures of 2015 on the harvest day of August 21 for the earlyripening Irsai Olivér a real challenge. However, the wine came out pretty well, capturing the muscaty aromas nicely without heading in a soapy or flabby direction. Molnár’s modesty is also appealing, as he describes his wines not as 90-pointers

but ‘Best Buys’ – and he is bang on the money in that assessment. However, he travelled comfortably past his station with his Olaszrizling 2013, if the 2014 edition of the Borkiválóságok Könyve (Wine Excellence Book) is anything to go by. This particular Olaszrizling, which comes from 40-year-old vines of the Bikahalom vineyard, was fermented in the tank and then spent eight months in 500-liter barrels, and was the only wine from the north eastern Hungarian regions of Mátrajla, Eger and Bűkkalja to scoop four stars. Older vines typically yield lower quantities of premium and concentrated juice. The resulting wine is rich, round and fullbodied and creamy with mango and melon on the finish but also with some fresher citrus character. While a really good wine and an absolute steal at HUF 1,300 a bottle, I found it harder to find the Olaszrizling character (compared to the aforementioned reductively made 2015) as it was masked behind the fairly prominent oak. There will be a 2015 version of the barrel-aged wine coming out later. Molnár’s day job is as winemaker for the northern wing of Danubiana, which is one of Hungary’s largest producers and exporters. Although producing on something of an industrial scale, the quality bar is set relatively high at Danubiana, as witnessed in a solid portfolio of wines. The quality of the Grüner Veltliner (Zöldveltelini) is good enough to be sold in the grape’s native Austria where it is shifted by the bucket load. While it might be sold at just €2.50 a bottle, it is nevertheless quite a feat to take “Grüve”, as it is sometimes called, to its homeland. Meanwhile, Molnár’s own label Rosé 2015 is a ripe crowd pleaser and oozes ripe red fruit.

Szekszárd wine impresses in City Park From Szekszárd, the less well known Prantner cellar made a relatively rare excursion to exhibit its wares in the capital at this year’s edition of Rosalia, which pulled in a lively crowd from May 8-6 at its new venue in City Park. Pranter rosé 2015, a blend of Kékfrankos and Merlot, is on the lighter and airier

The title character happens to be a Parisbased 85 year-old retired garment industry Directed by Dániel Dicső. king, Solomon Rubinstein, who is financing a gift delivery and an emotional support Premiere: June 9, 2016 service from his earnings. On sleepless Further performances: 17, 29, 30 June • nights, he sits by the phone himself to ease 4, 5, 6 July his fear of death and to deny its inevitability. He finds a soulmate in 25 year-old Jean, who is in a desperate battle against the laws Rózsavölgyi Salon Arts of nature, fighting for all animals and humans & Café 1052 Budapest, Szervita threatened by extinction or death. Madame Cora Lamenaire is one of the endangered, a tér 5. • Tel.: +36 1 65 year-old chanson singer who replaced 486 33 38 • Ticket Information: +36 30 Mr. Rubinstein for a good-looking Gestapo 463 88 22 • szalon@rozsavolgyi.hu • officer during World War 2 and managed to www.szalon.rozsavolgyi.hu • facebook. have fallen out of grace by the 70s, working com/rozsavolgyiszalon

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Above are the Molnár wines. Above right is vintner Gábor Molnár. At right are his wine tanks. On the facing page is his vineyard in Mátra. side with raspberry essence, grapefruit, strawberry, and peach aromas. It’s crispy, light, refreshing and very elegant. Also impressive at Rosalia (which was not only about rosé) was Prantner’s Kadarka 2015. This wine nails the tricky grape’s qualities to a tee with a delightful lightness of touch, ethereal quality and rose hip, raspberry notes. It deservedly won a gold medal at Szekszárd’s recent local wine competition. Ferenc Prantner’s stepson Tibor Juhász also makes killer rosé and his 2015 is made from 100% Kékfrankos. It has a lovely salmon color, great balance and exudes juicy wild strawberry on the nose and palate. Júhasz’s reds are coming on nicely now too, given that he has eradicated an animal note that I used to pick up, thanks to making his ageing cellar at his garage winery absolutely spotless and free of mould. His Birtok Cuvée 2012 is a delightfully fruity and spicy red blend with lighter body.

Also, down in the same region, Schieber is showing that less can be more when it comes to red wines – certainly in terms of price to quality ratio. This large cellar harvests at fairly high yields compared to some producers who pile as much concentration as they can in the glass. This “everything but the kitchen sink” approach can result in wines that are overpowering and hard to drink. Szekszárd’s fruitiness comes across nicely in some of Schieber’s range of bargain reds. Schieber’s Solutio (Cabernet sauvignon) 2013 is impressive for its varietal character and recently scooped a gold medal in Szekszárd’s local wine competition. It is one of Schieber’s more expensive wines at HUF 3,480. The top red honors were taken by the ultra concentrated Primarius Merlot 2012 by Takler, which is far from an everyday “quaffer” with its power and intensity and shelf price of HUF 12,900.

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