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BUSINESS JOURNAL BUDAPEST

VOL. 25. NUMBER 4

FEBRUARY 24 – MARCH 9, 2017

.hu

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Budapest Business

Journal | february

24 – March

9, 2017

ial Reofptheort Year Spec BBJ Expat CEO Third Time nce for the Expat Excelle Recognizing st The Budape l Business JournaExpat its handed out Year CEO of the third award for the ry time on Februa g the 10, honorin tial most influen 2016. of expat chief rian The Hunga Promotion Investment , which Agency (HIPA)the BBJ ed has partner of since the launch also gala, the annual own presented its ship Local Partner ly for award, similar the third time.

CHRISTIAN

KESZTHELYI

Hungary CEO of GE the Jörg Bauer, BBJ’s Expat CEO of held Kft., won thethe celebratory gala Year title at Hotel Budapest. in the Corinthia CFO of MercedesPhilipp, Ekkehard ing Hungary Local Benz Manufactur up the HIPA Kft., picked accolade.

Partnership the BBJ and backed HIPA, Founded by event partner by official expat CEO honor the the most the awards as making the who was seen n to contributio society. important economy and Hungarian

,” l discussions professiona heated but board he added. though, the Eventually ly decided of GE of judges unanimous e the chief be to acknowledg honored to “I am very ed group Hungary. a distinguish part of such

for the Best Tight Race tion CEO Recogni

its was reaching of the n As the evening the presentatio climax with last year’s awardee Lammers CEO award, CEO Jost in finding Budapest Airport the difficulty highlighted on the shortlist who the one chief prize above all the deserved the an extremely difficult was the others. “It as each of the decision process, really deserve would had a lot of candidates said. “We title,” Lammers

I believe anybody Bauer of nominees, here,” said I “When could be standing the prize. in accepting Hungary I would not to I would be came here thought that addressing have ever he said . “This standing here,” in Hungarian the crowd

for all great motivation for award is a solutions that work of of us to find and the country our companies he added.

Hungary well,” to the accolade, a for As an addition test drive received a to mark Bauer also latest model week of BMW’slaunch of the all new the worldwide provided by BMW BMW 5 series, Group Hungary.

Roll of Honor

Year CEO of the BBJ Expat Bauer, CEO of GE 2017 - Joerg Hungary Kft.Lammers, CEO of 2016 - Jost Budapest Airport González Pareja, 2015 - JavierBosch Magyarország then CEO of Award Partnership CFO of HIPA Local Philipp, ng 2017 - Ekkehard enz Manufacturi Mercedes-B Hungary Kft. Takeuchi, then 2016 - Naoyuki Suzuki CEO of Magyar Bachmann, CEO of 2015 - Kersten Systems Hungary TAKATA Safety Kft.

SPECIAL REPORT

BBJ EXPAT CEO SPECIAL REPORT

Recognizing Expat Excellence The BBJ handed out its Expat CEO of the Year award for the third time on February 10, honoring the most influential expat chief of 2016 from a strong shortlist of five candidates.14 SPECIAL REPORT

‘All, or Nothing at All…’ Ekkehard Philipp, of MercedesBenz Manufacturing Hungary Kft., based in Kecskemét, talks about what winning the HIPA Local Partnership Award means, successes and challenges in doing business in Hungary, and what the future may hold. 19

Commitment to Common Growth

L RE SPECIA

PORT

GE Hungary’s Jörg Bauer, winner of the 2017 BBJ BUSINESS Expat CEO of the Year award, enjoys life in Futureal Group Hands Hungary, and says he sees positive changes here. He shares why he thinks GE is a good place to Over Skypark Building SOCIALITE work and how Hungary could be Developer Futureal Group has handed over the successful in the digital Hungarian Photography 25,000 sqm Skypark industrial economy.

Past, Present & Future NEWS office building, the latest development at 18 Visiting Mai Manó House in

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the Corvin Promenade.12

central Budapest, also known as the Hungarian House of Photography, is a must for anyone curious about the history of photography.21

Better Yet Still to Come

Hungary’s economic growth came to just 1.8% for the past year, the poorest performance since 2012. Growth is expected to speed up this year and next, with some even suggesting a more than 4% increase in 2018.3

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Budapest Business Journal | february 24 – March 9, 2017

THE EDITOR SAYS

EDITOR-IN-CHIEF: Robin Marshall NEWS EDITOR: Christian Keszthelyi EDITORIAL STAFF: Zsófia Czifra, David Holzer,

Levente Hörömpöli-Tóth, Gary J. Morrell, Claudia Patricolo, Rob Smyth, Sarah Sunday, Ágnes Vinkovits.

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PROGRESS BEING MADE, but Answers are Still Needed

T

here are many indicators to a country’s economic health. GDP is the most obvious, but jobless/in work figures, inflation, budget deficits and the status given by ratings agencies are all important too. The good news for Hungary is that all these criteria appear to be heading in the right direction. You could quibble about the level of growth, especially on the back of disappointing Q4 figures, as outlined in our Macroscope piece on the page opposite, but all analysts seem agreed this year, and in particular next year, will see much stronger figures.

But there is one area of concern, and I suspect this will become a recurring theme whenever chambers of commerce and industry meet throughout the year, with each other or government officials; the availability of skilled labor.

That Hungary faces serious challenges in this regard is beyond doubt. It was referenced by Ekkehard Philipp of Mercedes-Benz Manufacturing Hungary in accepting the Hungarian Investment Promotion Agency’s Local Partnership Award at the BBJ’s Expat CEO of the Year Gala on February 10.

It is also discussed at some length in an excellent column from Jason Weedon, director for strategic partnership at the Central European University’s Development Office, on page 17.

In the interests of balance, it is important to stress that companies continue to come to Hungary, or reinvest here, in part because of its highly skilled and valued workforce. There has not, as far as I know, been an investment lost based of fears of a shortage (if I am wrong, I’d love to hear the details). But for all that, the problem is real and growing and multi-layered.

It touches on education, both in terms of how much is spent on it (again, as Weedon points out, Hungary’s international

comparative PISA scores for education are moving in the wrong direction) and the quality of students turned out, or more specifically their suitability for work.

It is also impacted by the traditionally low mobility of Hungarians: those without work and in areas of low job availability, most typically in the east of the country, have often been unwilling to move or commute longer distances to where there are jobs.

Efforts are being made on both fronts. Many multinationals, but most especially those based in Germany, are investing heavily in the type of dual training education program that has proved so successful back home. HIPA, as a point of contact for foreign investors with the government, has been working hard to get subsidies in place to help with mobility, and to draw investors further east.

Then there are other issues to consider. The need to at least offer young mothers the opportunities to return to work if they wish to, for example. Or making greater use of the experience tied up in the older population, who tend to be overrepresented among the jobless. Then there is the balancing act of allowing young talents to experience work abroad, but encouraging them to come back and put the lessons learned to use here, rather than being lost as part of the brain drain. And, as ever, solving the seemingly intractable problem of Roma integration so that members of Hungary largest minority, too, can enjoy the benefits of a successful society and play a full part in it.

None of this is easy, indeed, some of it is fiendishly difficult to solve, but if Hungary is to make the most of the potential it so clearly has, real life workable answers must be found.

MTI / Zsolt Szigetváry

BBJ

THEN & NOW

BBJ-PARTNERS

The black and white picture at left, taken in 1934, shows the building that used to be the headquarters of Hungarian Radio (Magyar Rádió) in Bródy Sándor utca. The building is currently undergoing reconstruction due to be completed at the end of this year. The color photo of the atrium of the building, above, shows piles of now obsolete tech equipment, once used for broadcasting purposes.

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Better Yet Still to Come 5

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At the same time, KSH also released Hungary’s inflation indicator for January.

The consumer price index was up by 2.3% on a yearly basis, with the highest price rises being observed among motor fuels and other goods, as well as alcoholic beverages and tobacco. This figure also surprised analysts who expected an approximately 2% rise in the annual inflation rate. According to the European Commission, domestic demand is projected to push inflation up significantly in 2017, to 2.4%. In 2018, inflation is expected to reach and possibly even overshoot the 3% target of the National Bank of Hungary (MNB).

Nomura analyst Peter Attard Montalto, who has long said that the MNB’s true target is 4%, which is the top end of the band, agrees with this assessment.

“We think this view will remain the case but we look for a shift in communications to sustain such loose monetary policy.

Our overriding view is that the MNB wants very negative real rates”, Montalto

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it is also worth taking a look at the GDP figures of the neighboring countries.

The EU’s statistical body Eurostat made preliminary GDP data available for 20 EU Member States out of the 28 on February 14, the same day that KSH published its Hungarian GDP figures. Collectively, these reveal that in that comparison, Hungary’s quarterly performance was below the EU average (whether looking at it on a quarterly basis and yearly). This is especially true when compared to the regional neighbors: Romania, Bulgaria, Poland, and Slovakia all produced higher growth at the end of 2016 than Hungary.

Romania actually made it to the top of the EU list with its 4.8% increase in Q4 from the same period of 2015.

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Analysts are also optimistic. “ING expects a more favorable growth rate this year, further driven by a rise in consumption and supported by growth in investments,” said ING analyst Péter Virovácz in a note.

Takarékbank analyst Gergely Suppan said this year’s output could grow by 3.6%, lifted by base effects and a further increase in household consumption supported by wage increases. He put next year’s growth rate at around 4%.

The European Commission, in its 2017 winter report, updated its economic forecast for Hungary, signaling high private consumption and rebounding investment for this year. According to EC projections, Hungary’s GDP growth is expected to reach 3.5% in 2017 and 3.2% in 2018. It is worth noting, however, that the EC report was released a day before the KSH published its Q4 GDP data.

The government noted that the raw figures growth rate for the full year of 2% is above the EU average, and claims that Hungary has continued to narrow the economic gap with the EU, however,

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year’s growth was slower than that of 2015, said that the decline could be attributed to the cyclical nature of the absorption of European Union funding. It emphasized that Hungary’s external and internal balances continued to improve in 2016, as there was a record EUR 10 billion trade surplus, and the budget deficit was well under the threshold of 3% of GDP. “The recently concluded six-year wage agreement is expected to result in faster economic growth through boosting competitiveness and demand,” the NGM wrote on its website. The ministry maintains its earlier forecast for GDP growth at 4.1% this year and 4.3% in 2018.

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in investment in the first three-quarters of the year, and this also hindered growth.

Domestic consumption, however, was a driving force behind the economic performance.

The Ministry for National Economy (NGM), while acknowledging that last

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ollowing poor full-year data for the Hungarian industrial sector, the Central Statistical Office (KSH) shed light on the whole country’s economic performance. With industry having advanced by the not exactly titanic amount of 0.9% in 2016, the full year GDP growth came to an unadjusted 2%, a little below expectations, while the calendar and working day-adjusted figure came to 1.8%.

Hungary’s economic growth slowed to an annual 1.6% in the fourth quarter of 2016, down from 2.2% year-on-year in Q3, the preliminary unadjusted data revealed, while analysts’ expectation was 2.1% for the period. Compared to the previous quarter, Hungarian economy grew by just 0.4% in Q4 2016.

Last year’s performance was. Therefore, the worst in the past four years: Calendaradjusted growth was only 1.8% for the full year, following 3.1% and 3.9% in 2015 and 2014, respectively. Considering its poor performance in 2016, industry couldn’t contribute noticeably to the GDP. Even worse, the construction sector declined by 18.8% last year from 2015, throwing back growth quite significantly. Although services and agriculture contributed positively to economic performance, these two sectors weren’t able to compensate for the underperformances elsewhere. A slower inflow of European Union funds also curbed growth. Due to this, there was a

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Source: KSH

Hungary’s economic growth came to a calendar and working day-adjusted figure of just 1.8% for the past year, the poorest performance since 2012. Growth is expected to speed up this year and next, with some even suggesting a more than 4% increase in 2018.

GDP (volume change, compared to the same quarter of previous year, seasonally and calendar-adjusted)

said in a note. “We think the MNB will start communicating a lot more about the stability of long-run inflation below 4% and indeed around the center of target as a key anchor for policy. We also expect it to stress that short-term policy adjustments would do nothing for short-run inflation. It may also start to focus more on core rather than headline [figures].”

Numbers to watch in the coming weeks Following a period of exciting macro figures, the upcoming weeks will be somewhat quieter.

The very same day this issue of the Budapest Business Journal comes out, KSH will reveal the number of construction permits in 2016, which hopefully will project a rosier outlook for the construction sector. Employment and unemployment figures for the November-January period will be published on February 27, followed by the much-awaited data for investment in the fourth quarter of 2016. Another exciting figure will be out on March 7, when we will find out how industry performed in the first month of the year. The second estimate of GDP growth for Q4 and the full figures for 2016 will also come out on March 7, promising no big surprise. February inflation data will be published on the next day. But before all of the above, international ratings agencies will start their reviews planned for this year. First up will be Standard & Poor’s, which will publish its results on February 24.

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Budapest Business Journal | february 24 – March 9, 2017

News Hungary consumed 12% less energy in 2015 than in 2005 Energy consumption in Hungary as a whole has dropped almost 12% over ten years, data recently published by the European Union statistics office Eurostat reveals. Eurostat data related to the 20052015 period shows that while energy consumption was 27.6 million tonnes of oil equivalent (toe) in 2005, ten years later only 24.2 mln toe was used in a year, according to reports. In the same period, the share of fossil fuels in Hungary’s energy mix also dropped, from 81% to 70%, while the share of imports within fossil fuels dropped from 76% in 2005 to 74% in 2015.

Farm minister orders NÉBIH to probe identically branded products In another turn in the “lower-quality” products scandal, Hungary’s Minister of

Agriculture Sándor Fazekas has reportedly ordered the National Food Chain Safety Office (NÉBIH) to conduct an inspection comparing the quality of identically branded products available at domestic and foreign retail stores to reveal if there are any differences. The inspection will involve 100 products from all sectors of the food industry and include a comparison of ingredients and sensory impressions, Róbert Zsigó, state secretary for supermarket oversight at the Ministry of Agriculture, said on February 20, according to Hungarian news agency MTI. The first results of the inspection could be made public by the middle of March, Zsigó added. The development comes shortly after a report

by NÉBIH, published in governmentfriendly daily Magyar Idők, suggesting that multinationals offer “lower-quality” products in Hungary. Following the report, Cabinet Chief János Lázár urged the government to launch a probe of identically branded products in Hungary and Austria, although a trade association rejected the report as “subjective”.

Hungary’s National Association of Food

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Anti-Olympic campaign gathers twice as many signatures as needed Processors (ÉFOSZ) announced it will contact NÉBIH, concerned that it learned about a food quality probe only the media, according to a press statement sent to the Budapest Business Journal on February 17.

Serialization to entail big spending for Hungary’s pharmas Hungary’s pharmaceutical industry, like other European markets, will soon be facing “tremendous investment pressure” due to mandatory controls across all EU countries from 2019, according to a press statement sent to the Budapest Business Journal by serialization automation supplier Servicepoint Oy. Pharmaceutical serialization is the tracking and tracing of the passage of prescription drugs through the supply chain from manufacture to dispensing. Finlandʼs Servicepoint, the leading serialization automation supplier in the Nordic countries, believes immediate action is required in order to make sure that the production of pharmaceuticals can continue without interruption. The company notes that the spread of fake pharmaceuticals is a globally significant and escalating problem, as the fake drug market cuts into the business of pharmaceutical companies and can cause tragic results for people who use illicit medication.

Hungary due to get electronic healthcare system this year

REGIONAL STRATEGIC CONFERENCE STARRING: CLARINET

ALEjANDO VELA’S PIANO CONCERT 10th March 7 p.m.

MTI / Noémi Bruzák

///in brief

A new electronic healthcare service (EESZT) could be launched by November in Hungary, according to reports. The system has been under development for years, Hungarian online daily index.hu reported. Government-friendly daily newspaper Magyar Idők added that the system is currently being tested in a limited institutional circle. The system could electronically store information about patients, making it easier for doctors working in different institutions to access the same data. Documents related to all the treatments a patient has ever received would be added to the system, building up a complete patient case history. In order to protect such sensitive data, individuals will be able to grant and restrict access by others through their so-called “government

András Fekete-Győr, president of youth movement and fledgling political party Momentum Mozgalom, submits 266,151 signatures, almost twice as many as the required minimum valid 138,526+1, to call for a referendum in Budapest on the capital’s bid for the 2024 Summer Olympics. The Hungarian government, which previously appeared to be a strong promoter and supporter of the Olympic bid, has since appeared less certain, some voices even raising the possibility of the capital withdrawing from the bid, although no official stance has been taken by the government at the time of going to print. Some reports suggested that governing party Fidesz would rather drop the bid than hold a referendum and risk an embarrassing defeat just a year before the parliamentary elections in 2018. gateway”, a Hungarian electronic system for official documentation. The system is reported to have undergone serious security auditing, and any access is registered with date stamps, index.hu added. As EESZT would be integrated into existing systems, hospitals and pharmacies would not need to update their IT capabilities to use the new program, according to reports.

Hungarian kids worried about their future, says poll

Some 69.5% of Hungarian children are worried about their future, according to a poll conducted by children’s rights civil organization SOS Gyermekfalvak with the involvement of 1,000 secondary school students around the whole country, Hungarian online news portal 444.hu reported. While every third child claiming to be from a “rich family” had concerns about their future, the ratio grew to 81% in the case of children claiming to live in a “poor family”, the study found. In the case of children coming from what were described as average families, 73% said they had concerns about their future. The three most important factors children defined in relation to their future lives were having a good job (74.7%), a healthy relationship/ marriage (60.8%), and being happy (40.3%).

Every tenth child participating in the poll said they were planning their future abroad.

Children who said having a big house or car is important were in the minority, the organization added. Half of the respondents said they were very afraid of failing to gain admission to university, while every

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Budapest Business Journal | february 24 – March 9, 2017

third child was very afraid of failing at school. Some 46% were afraid of becoming unemployed, while 40% were afraid of not having a family, the study’s findings revealed.

Hungary’s veggie prices skyrocket with extreme cold

The prices of vegetables sold in Hungary have risen sharply, in some cases threefold, due to the extreme cold weather, compared to the same period a year earlier, according to reports. The main reason for the price hike is the extreme weather, Hungarian online daily index.hu reported. In the southern parts of Europe, the majority of crops froze and only half the usual amount of vegetables arrived in Hungary. The case is further worsened by the fact that 90-95% of vegetables in Hungary are imported, index.hu adds. In addition to high prices, the vegetable market currently carries products with limited stock. It is expected that the unusually high prices will persist until Easter.

Szijjártó opens Hungarian embassy in New Zealand Hungary’s Minister of Foreign Affairs and Trade Péter Szijjártó officially opened the Hungarian Embassy in Wellington, the capital of New Zealand, on February 17, the minister told Hungarian news agency MTI over the phone. The embassy will help enhance Hungary’s presence in the Pacific region, promote trade relations and effectively enforce economic policy objectives, Szijjártó said. Hungary is the eighth European Union country to open an embassy in New Zealand, and the second Central European country after Poland, he added. Szijjártó noted the potential for cooperation with New Zealand in car and machinery manufacturing, water management and water technology, and thermal waterrelated infrastructure developments. He added that Eximbank has opened a USD 720 million credit line to help Hungarian companies enter the New Zealand market. Hungary’s exports to that country increased by 12% last year compared to 2015, exceeding USD 50 mln, Szijjártó said. He added that he also held talks with his New Zealand counterpart Murray

McCully and Attorney-General Chris Finlayson, and spoke about several potential bilateral agreements, including one on avoiding double taxation. Szijjártó also opened a Hungary-New Zealand business forum in Auckland.

ECHR rules journalists cannot be barred from parliaments

In connection to a case involving Macedonian journalists, the European Court of Human Rights has ruled that journalists cannot be barred from parliaments, according to reports. The decision is likely to have implications for Hungary, as many Hungarian journalists have been banned from entering its National Assembly. “The European Court has handed down a significant judgment condemning the forcible removal of journalists from the Parliament of Macedonia in a case brought with the support of MLDI [Media Legal Defense Initiative] and its partner the Media Development Center,” an MLDI statement said. “This is a significant decision from the European Court recognizing that it is unacceptable for authorities to remove journalists from areas where public interest events are unfolding, unless there is some real threat to their or the public’s safety,” it added. The MLDI is an NGO established in 2008 to provide legal assistance to journalists. It has been an almost regular occurrence in recent years that Hungarian journalists, in the majority of cases from media outlets critical of the present government, have been barred from entry to the Hungarian Parliament, online news portal index.hu notes. While for many journalists the ban has been temporary — including staff of news portal 24.hu, the now defunct daily Népszabadság, HVG, index.hu and RTL Klub — the entire staff of 444.hu is still banned from entering the assembly.

House Speaker László Kövér, wellknown for his strict and traditionalist attitude, generally banned journalists, claiming they asked questions in parts of the building where they are not entitled to do so, which he said is against the rules. However, Hungarian journalists have often argued that it is almost impossible to talk to politicians as the corridor where they are entitled to ask

questions is so short that politicians can rush through it in seconds, ignoring questions if they do not feel inclined to answer them.

Trump-Orbán meeting being planned, ambassador says

U.S. President Donald J. Trump has a “very positive” opinion of Hungary’s Prime Minister Viktor Orbán and negotiations about a possible meeting of the two leaders are already under way, Réka Szemerkényi, Hungary’s Ambassador to the United States, told weekly business and political title Figyelő, according to online daily index.hu.

Szemerkényi, who says she has met three times with Trump and his staff, noted that personal relationships in American politics have always been important, and this is even stronger with the Trump administration. The ambassador added that she has already met with almost half of the U.S. government, and the relationship has been so good that other embassies in the United States have asked her for advice and contacts.

Szemerkényi was appointed Hungary’s ambassador to the United States in the summer of 2014, with President Barack Obama finally accepting her credentials on February 23, 2015.

Growing traffic triggers development at Budapest airport

As passenger numbers and cargo traffic trends both appear to be growing this year at Ferenc Liszt International Airport, operator Budapest Airport has made “growth” a keyword and is eyeing further developments, according to a press statement sent to the Budapest Business Journal.

“Budapest Airport continues to attract new airlines, and existing partners are adding new destinations, increasing their frequencies or capacity, and expanding their networks in 2017. After the launch of easyJet’s new BudapestAmsterdam service, we expect further airline announcements in the coming weeks,” said Jost Lammers, CEO of Budapest Airport. “We must answer this demand both in terms of capacity and service level; this is why we launched

our EUR 160 million BUD 2020 airport development program a year ago. This year there are construction cranes all over the airport,” he added. The building of a 10,000 sqm passenger pier has just started on the apron in front of Terminal 2B. The construction of a new hotel begun last year is in “full swing”, just a two-minute walk from Terminal 2B, Budapest Airport says. The hotel will have 145 rooms and ample conference facilities, and will be operated under the brand name of ibis Styles Budapest Airport Hotel. This year alone Budapest Airport will add approximately 1,000 new spaces to existing car parks, bringing the total number of available parking spaces to more than 4,600. The construction of ten additional check-in desks for the convenience of passengers is already underway at 2B.

CEPOL holds conference in Budapest on EU security

The European Union Agency for Law Enforcement Training (CEPOL) hosted a conference in Hungary on February 14, involving officials from 33 countries, in order to look at the achievements of the agency in 2016, whilst also looking ahead to challenges for EU security.

Prof. Ferenc Bánfi explained how CEPOL contributed to a safer Europe through training, with a special emphasis on tackling pressing security issues such as terrorism, illegal migration, cyber crime and drug trafficking. CEPOL has worked closely with EU member states (mainly via dedicated CEPOL national units), countries in Eastern and SouthEast Europe, Middle East and North Africa, justice and home affairs agencies and international organizations such as Interpol, OSCE and UNODC to create a portfolio of activities that support EU political priorities in terms of security, according to the press statement. This demonstrated the growing importance of external relations within CEPOL’s new legal mandate, and the high level of CEPOL’s appreciation at a global level, the organization says. In 2016, CEPOL reached new records in terms of participation: more than 18,000 officials from 39 countries were trained during 87 residential activities, 492 exchanges, 87 webinars and other e-learning tools.

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Audi agrees to raise wages, union says The management of Audi Hungaria, the German car manufacturer’s Hungarian subsidiary, has managed to reach agreement with the Audi Hungaria Independent Trade Union (AHFSZ) on wage increases for the year, according to reports. Under the agreement, the base salary at Audi Hungaria’s local plant in Győr will be raised by HUF 30,000, backdated to the start of this year, while an additional 3% of variable pay will be built into the base salary. As of next year, the base salary will be increased by a further HUF 30,000, topped up with another 3% of variable pay. Annual HUF 600,000 non-wage compensation from this year will grow to HUF 620,000 next year. About 1,500 of the 11,500 workers at the plant in Győr held a two-hour strike following failed wage negotiations on January 26. Péter Lőre, director of communications at Audi Hungaria, said that the strike had resulted in a drop in production, but would not affect deliveries to customers. The plant puts out 8,000 engines on a daily basis.

Competition Authority GVH blocks RTL’s Central Media acquisition The Hungarian Competition Authority (GVH) has blocked the planned acquisition of Central Digital Media, the online portfolio of Central ADVERTISEMENT

Médiacsoport, by Magyar RTL Televízió, the biggest commercial television broadcaster in Hungary, according to reports. The competition office blocked the acquisition, acting on an earlier opinion of the Media Council of the National Media and Infocommunications Authority (NMHH) refusing the merger in January, arguing that it would intensify the concentration of ownership on the television and digital markets to a degree that would endanger citizens’ rights to diverse sources of information. Under Hungary’s media law, the GVH is compelled to request an authoritative standpoint from the Media Council, and is obliged to prohibit a merger if the latter refuses to grant its approval of the transaction. Magyar RTL submitted its application to acquire a 30% stake and management rights in Central Digital Media to the NMHH in October 2016, Hungarian wire service MTI noted.

RTL Klub, the most prominent channel of the RTL Group, is the chief competitor of commercial television channel TV2, which was recently purchased by Hungarian-American film producer Andrew G. Vajna, the government commissioner for the Hungarian film industry. While RTL has carried news critical of the current government, having clashed with the regime over advertising taxes in the recent past that hit RTL Klub particularly hard and also attracted the attention of the European Commission, TV2 has recently carried pro-government news and a greater number of government announcements. Central Digital Media

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Wizz Air announces opening 28th base at London Luton Hungarian low-cost airline Wizz Air has announced it will be opening its 28th base at London Luton Airport on June 18, adding a new Airbus A320 aircraft. London Luton, from where Wizz Air has operated flights for more than 12 years, will be the airline’s first U.K. airport with base operations. The establishment of the base represents an investment in the airport and the local region by creating 36 direct jobs with the airline. “Today’s announcement once again underlines Wizz Air’s commitment to the U.K. Our first Wizz Air flight from the United Kingdom took off from London Luton in 2004, and since then we have carried more than 35 million passengers on our low-fare U.K. routes,” said József Váradi, CEO of Wizz Air. is present on the online content and advertising market, MTI noted. It operates six internet portals, which include general news portals as well as specialized sites for women, health and motorists, the wire service added.

Apollo to launch Hungarian tire production soon

With construction on schedule, Apollo Tyres’ manufacturing plant in Gyöngyöshalász expects to start production early this year, according to a statement sent to the Budapest Business Journal. Apollo Tyres says it now employs 400 highly qualified engineers, technicians and tire manufacturers in Hungary. The company added that, in relation to its recruitment process, it has faced no exceptional challenges. Earlier news reports suggested that the country’s now well-known labor shortage might make hiring difficult for the company.

The first two batches of technicians have already finished their training, with the third round ongoing, the company said. The employees have all participated in a specialized, 10-week practical training scheme in Apollo’s Indian and Dutch facilities.

The program is aimed at enabling the technicians to install and then start the production lines at the EUR 475 million factory at Gyöngyöshalász (about 80 km northeast of Budapest), which will be equipped with the latest state-of-theart technology. Once production at the Hungarian plant starts, the company expects to employ a staff of several hundred in its facility.

F. Segura to double Hungarian unit area, capacity

F. Segura Hungária, the local subsidiary of the Spain-based car parts manufacturer, has announced plans

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to expand its Hungarian unit through an investment of HUF 5.3 billion, supported with a HUF 680 million grant from the Hungarian government, Minister of Foreign Affairs and Trade Péter Szijjártó announced on February 20, according to reports. After almost doubling the local plant’s area to 25,000 sqm, the company expects it will have created approximately 100 jobs, raising staff numbers to 285. Additionally, the company also expects to double its annual turnover in Hungary after scheduled completion in 2018. The Segura Group has invested a combined EUR 65 mln in Hungary in the past ten years, noted Francisco Segura Hervás, president of the group. The company manufactures automotive parts for brands such as Audi, Mercedes, BMW and Porsche.

The Hungarian subsidiary had net profit of EUR 3.9 mln on revenue of EUR 28 mln in 2015, Hungarian news agency MTI reported.

Telenor Hungary confirms layoff plans Telenor Hungary is laying off 100-120 employees due to restructuring, the telecommunications firm confirmed to Hungarian wire service MTI on February 20, addressing local media reports. According to the Hungarian subsidiary of the multinational, cutting jobs is seen as a way of boosting efficiency while keeping the company competitive. Hungarian media reported that Telenor would be laying off one in ten of its somewhat more than 1,000 staff in Hungary, working in support positions, such as finance, marketing and IT. Telenor said that it supports voluntary redundancies, as well as offering higher compensation than set by related laws, according to Hungarian online daily index.hu. The telco reportedly informed staff about the redundancies on March 14 of last year.

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World’s Best Business Class Seat qatarairways.com

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Budapest Business Journal | february 24 – March 9, 2017

Charity Event Raises HUF 600,000 for Bátor Tábor The Italian Budapestbased consultancy firm ITL Group and Buddha-Bar Budapest jointly organized a charity networking night for Bátor Tábor, a foundation providing entertainment to chronically ill children.

The core of the night in the five-star Buddha-Bar Hotel (in the restored Klotild Palace) was the art auction of pictures by painter Holly Z. Ivady, enriched by other items offered by ITL Group and Buddha-Bar Budapest: 100% of the paintings and gifts hammer price was directly donated to

Bátor Tábor.

Comming together for a good cause.

Organisers and supporters of the charity event.

for Bátor Tábor’s cause. This allows us to buy half-a-year’s medication supply, which is essential for the safety of the children in the camp”.

For more than 15 years, Bátor Tábor has been offering free-of-charge recreational camps where severely ill children can overcome the limitations of their conditions by living out some unique experiences. The camps are also shown to be beneficial for children in the long-term.

BBJ STAFF

“It was great to see so many people interested in and touched by Bátor Tábor’s work,” Nóra Börcsök, the foundation’s community program organizer, told the Budapest Business Journal. “Our excitement was the same regarding the charity auction, and I am ecstatic to announce that the event collected a more than

HUF 600,000 DONATION

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Beyond Expectations Alessandro Farina, owner of ITL Group, turns auctioneer and finds high interest for a piece by Hungarian painter Holli Z. Ivady.

Organizer Alessandro Farina, owner of ITL Group commented: “The night went well beyond our expectations, both in term of participation and of donations. I’m personally very happy for this cooperation that allowed us to make a charity night which was enjoyable and pleasant, other than a good occasion for networking. The relationship we have with Bátor Tábor is long-term: they are doing a fantastic job for a marvelous cause; I’m glad and proud that our guests felt motivated to get involved.”

The artworks offered by Hungarian painter Holli Z. Ivady are part of a series portraying eyes. “I chose those representing two of my most important sources of inspiration: the icy blue eye of Frank Sinatra and the extraordinary purple pupil of Elizabeth Taylor.”

Tamás Fazekas, general manager of Buddha-Bar Hotel Budapest, added: “It was our pleasure that we could host this prestigious charity event at BuddhaBar Budapest. We are always open to support good causes and happy to help our community, and we are very proud that this time we could contribute to fundraising for Bátor Tábor.”

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

Magyar Telekom welcomes new IT chief Magyar Telekom, the Hungarian subsidiary of German giant Deutsche Telekom, has appointed Dr. Kim Kyllesbech Larsen as chief technology and IT officer (CTIO), taking effect from April 1. Larsen will also become a member of Magyar Telekom’s management committee.

Larsen, 52, joins the company from Deutsche Telekom, where he most recently served as senior vice president for Technology Economics & Transformation, as well as Technology Architecture & Innovation. Prior to this, he acted as director of the Network Technology Office and CTIO of Ooredoo Group (formerly Qtel) in Myanmar. From 1999 to 2012, Larsen held a number of senior management positions within the Deutsche Telekom Group, including executive vice president - head of technology office of T-Mobile International and head of technology economics & services of

Deutsche Telekom. During this time, he was responsible for the takeover of the technology segment of Orange Netherlands, the most successful merger and integration project within Deutsche Telekom to date. Larsen joined Deutsche Telekom following nearly a decade of academic experience in Denmark, the Netherlands, Belgium, and Italy. He has a masterʼs degree in physics and mathematics, and a doctorate in physics from Aarhus University, Denmark.

Nexon names director of sales Tamás Gál has been appointed director for sales and business development and marketing at Nexon Hungary.

Gál’s role is to help current and future partners gather information and make decisions. “Our common development is the key to success.

Before joining Nexon in 2017, I spent

more than ten years dealing with sales and development of flexible benefits, and professionally supporting enterprise level key account managers,” Gál said. He spends his free time with his children, hiking, cycling and playing floorball (indoor hockey). He also assists various sporting associations in organizing competitions.

Shell Hungary picks head of executive board Andrea Bujdosó has been appointed head of the board of directors at Shell Hungary, taking effect from February 1.

She joined Shell in 2009, and has since held various local and international leading positions in the corporate segment, chiefly working on improving euroShell card offers for B2B clients. With experience in sales, Bujdosó will retain her position as leader of the sales excellence

program for the Shell retail cards business in Europe, the Middle East and Africa.

IBM Hungary appoints country leader Peter Rehus has been appointed country leader for IBM Hungary, transitioning from his previous position of SaaS commercial leader for IBM Cognitive Engagement Europe. In his new role, Rehus is responsible for all client-facing activities in Hungary, covering IBMʼs entire portfolio of products and services.

During his 26-year career at IBM, Rehus has held a number of management positions in software and services businesses at IBM Hungary and in the region. He earned his master of science in transportation engineering from the Technical University of Budapest (now Budapest University of Technology and Economics). He holds a degree in business administration from Henley Business School in the U.K.

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Futureal Group Hands Over Skypark Office Building

“With the 22-hectare Corvin Promenade urban development project, we managed to revive a prominent section of Józsefváros; not solely from an architectural point of view, but also from a cultural and economic viewpoint.”

Hungarian and regional developer Futureal Group has handed over the 25,000 sqm Skypark office building, the latest development at the Corvin Promenade office, retail, residential and leisure project.

Skypark has been designed to meet the needs of technology and R&D reflecting the prelease that has been concluded.

Tower that will deliver 11,000 sqm of BREEAM accredited space, designed by Mérték architects studio.

Annual Absorption The Skypark tower block at Carvin Promenade.

GARY J. MORRELL

The BREEAM accredited development, designed by Zoboki-Demeter & Associates, will provide Nokia with an IT and telecommunications R&D center.

This is regarded as one of the largest deals in the post-economic crisis period and, as with Wing’s latest projects, is essentially a built-to-suit office deal.

The complex includes restaurants, cafés, kindergarten and a conference center in addition to parking for 170 vehicles. As reflects the demand for sustainable development the “Very Good” certified development provides automated shading technology, which controls sunshine exposure, an electric car charger, a green roof, bicycle storage, changing rooms and showers,

as well as energy-efficient mechanical systems.

The tower block is located adjacent to the speculative

15,000 sqm CORVIN TECHNOLOGY & SCIENCE PARK,

which will form the latest office phase of the Corvin Promenade project. “With the 22-hectare Corvin Promenade urban development project, we managed to revive a prominent section of Józsefváros; not solely from an architectural point of view, but also from a cultural and economic viewpoint,” said Gábor Futó, founder of Futureal Group.

“Skypark marks a further milestone of this rehabilitation that is transforming the

Corvin Quarter into a knowledge quarter.

According to our plans, the rehabilitation of the Corvin Promenade will be finished in the next three years, so it will show its final form soon,” he added.

With regard to further pipeline, Futureal plans to develop the Budapest One business park adjacent to the terminus of the Metro 4 line.

This 45,000 sqm project is seen also seen as part of the redevelopment of a road, metro and rail transport hub.

The first phase is planned to consist of around 23,000 sqm of office space, but a substantial pre-lease needs to be concluded for construction to commence, according to Futureal.

On Váci út, Futureal is also developing the speculative Advance

There are currently six further Budapest office projects due to deliver this year that will easily meet annual absorption figures of around 150,000 sqm, despite some fears of oversupply that have been expressed.

According to the Budapest Research Forum (comprising CBRE, Colliers International, Cushman & Wakefield, Eston International, JLL and Robertson Hungary), vacancy in the Budapest office market currently stands at 9.5% in a stock of around 3.3 million sqm, a record low.

A lack of development has brought the supply and demand curve more in line, which should support rental growth and investor interest. Most of the office assets currently under construction are expected to be substantially pre-leased before completion.

Consultants and the Letting Process

Although a growing number of online commercial property portals are springing up, this is not going to make property consultants unemployed. At the same time, letting agents are using more sophisticated IT systems to enhance the service they provide, concluded the latest Tea & Talk discussion, organized by RICS Hungary and tenant representative consultancy Cresa Hungary.

GARY J. MORRELL

“I think online services will continue to play a larger role, but I do not see a time when advisers will be out of work.

So our jobs will remain, but we will have to get used to online services becoming more popular, especially among younger people,” said Valter Kalaus, managing partner at Cresa Hungary.

According to Gergely Koó, senior leasing managing at Immofinanz Hungary, 95% of lettings at their offices are concluded through a letting agent.

“It is mainly small-sized tenants with below 100-150 sqm requirements that exclusively use real estate portals. The

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difficulties of small transactions are not significantly lower than for a much bigger deal, while the potential agent fee is much lower. Therefore it is not worthwhile for consultancies to deal with small tenants.

Also, the majority of building landlords are not able to provide such small units and the necessary administration is the same as for a larger letting. Therefore, from the perspective of landlords, management companies and letting agencies, small tenants are not profitable,” commented Adorján Salamon, CEO of Eston International.

He further argued that consultants and planners are needed to give advice

“You need to see a building, get a feel for a building as this could be a major financial commitment for five years that could affect the everyday lives of 25, 30 or 100 people and it is not possible to do this online.” on changes in the working environment.

Today the workstation is getting smaller, while the proportion of shared areas is increasing with chat rooms and bigger dining areas. “We advise clients on how to achieve more efficient office space in terms of space planning, space usage and the working environment,” he added.

Match the Building to the Client’s Needs From the tenant representation perspective, Kalaus said that it is hard to say what percentage of the market is conducted online or with a broker. “An increasing number of tenants feel more comfortable checking, for example, the

availability in buildings before consulting with an advisor,” he noted.

“You need to see a building, get a feel for a building, as this could be a major financial commitment for five years that could affect the everyday lives of 25, 30 or 100 people and it is not possible to do this online,” he said.

“It is possible to see a picture of a building and then, when you visit, it looks completely different. The opposite is also possible, as a building can have a bad reputation and when you visit it has been refurbished and is completely different to what is was a couple of years ago,” Kalaus explained.

“Every tenant has a different requirement and every building is different so, for example, when a software company comes to us they could be looking for a lively coworking type environment, and this is completely different to the requirements of a law firm looking for a traditional office type environment. We need to ensure that the building we are offering a client will be in line with their specific requirements and they do not waste their time looking at 20-30 different offices. Our job is to present them with the prescreened top five or ten alternatives,” he added.

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Prague to Host Leaders in Hospitality CEE & CIS Summit Prague was chosen as the destination for the fifth annual Leaders in Hospitality CEE & CIS Summit, a flagship hospitality event that focuses on promoting and advancing the regional hospitality sector internationally.

The summit will take place on June 5-6.

Organized by the Prague-based International Business Council, the summit has established itself as the only industry platform that gathers the most prominent international hospitality sector decision makers and senior industry professionals from across the 30 countries of the CEE & CIS region. It provides a unique opportunity for the leaders to set their business agendas for the upcoming year, while addressing the challenges and opportunities the region faces.

Over the years, the event has been hosted in Poland, Austria, and Hungary, and for its fifth anniversary it returns to Prague, Czech Republic where it was originally launched. Recognizing the importance that the Leaders in Hospitality CEE & CIS Summit plays, not only in the regional hospitality industry, but also the positive impact its bring to tourism, trade and economy, the summit has been endorsed by the Ministry of Regional Development of Czech Republic and the Minister of Regional Development Ing. Karla Slechtova, as well as by the Czech Chamber of Commerce.

Moreover, the summit has received the endorsement from Czech Tourism, Czech Bartenders Association, Czech Furniture Manufactures Association and the Association of Czech Chefs and Confectioneries (a member of World Association of Chefs Societies) just to name a few.

“We take great pride in the fact that in only five years, the Leaders in Hospitality CEE & CIS Summit has reached not only regional but global recognition as well as becoming THE meeting point for the regional hospitality industry and for anyone who is keen in venturing into the

A platform that gathers the most prominent international hospitality sector decision makers.

CEE & CIS Market,” said Elena Jassim, CEO of International Business Council, organizer of the event.

“Getting endorsements and support from the leading regional governments and industry organizations highlights the key role the summit plays, not only in addressing the challenges and opportunities the industry has to offer, but also the impact it brings, together with the hospitality industry, on regional development and promotion,” she added.

Over the course of two days, the attendees will be able to participate in multiple interactive educational panel discussions lead by the high-profile industry experts, as well as networking with other hoteliers from the region and source services and products during one-to-one meetings with hospitality solution providers that exhibit at the event. Among these are leading global brands like Honeywell, Phillips, Aksel, Atlas Concorde and Ideal Standard International.

“It is with pleasure that we are sponsoring Leaders in Hospitality CEECIS at this year’s summit,” said Franck Racapé, sales director Professional Display Solutions EMEA, at Philips. “We are excited to be part of this platform that supports, educates and inspires the hospitality industry, where so many key influencers gather, especially with this being the fifth anniversary. For Philips, Professional Display Solutions, the CEE-CIS region is a market full of opportunities and we look forward to sharing our innovative solutions at the summit,” In additional to the educational and business opportunities that will be presented during the two-day event, all the participants will take part in the fifth anniversary celebrations that will take part throughout the event and during the Leaders in Hospitality Gala Dinner on June 5.

A unique opportunity for leaders to set their business agendas for the year.

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For more information and registration, please visit www.hotelcee.com or email to info@intlbc.com or call +420246093256.

About International Business Council International Business Council is a global organization committed to advancing global economies by fostering business and leadership development opportunities amongst governments and businesses worldwide through delivering highly specialized and integrated concepts of high – level summits, meetings, digital collaboration, publications, professional development programs, market intelligence and expertise.

Keeping the pulse on and by carefully analyzing global, industry and regional agendas, we engage with political, business, academic and society leaders to develop platforms that address pressing problems as well as highlight, reinforce and explore unprecedented opportunities for global business growth that is crucial for economic prosperity.

International Business Council strives to promote international business opportunities, professional development and entrepreneurship by facilitating networking and open dialogue amongst global and regional leaders through a series of high – level events and professional development programs that drive innovation and set international business agendas. www.intlbc.com

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Budapest Business Journal | february 24 – March 9, 2017

Special Report BBJ Expat CEO of the Year Recognizing Expat Excellence for the Third Time

The Budapest Business Journal handed out its Expat CEO of the Year award for the third time on February 10, honoring the most influential expat chief of 2016.

The Hungarian Investment Promotion Agency (HIPA), which has partnered the BBJ since the launch of the annual gala, also presented its own Local Partnership award, similarly for the third time.

CHRISTIAN KESZTHELYI

Jörg Bauer, CEO of GE Hungary Kft., won the BBJ’s Expat CEO of the Year title at the celebratory gala held in the Corinthia Hotel Budapest.

Ekkehard Philipp, CFO of MercedesBenz Manufacturing Hungary Kft., picked up the HIPA Local Partnership accolade.

Founded by the BBJ and backed by official event partner HIPA, the awards honor the expat CEO who was seen as making the most important contribution to the Hungarian economy and society.

Tight Race for the Best CEO Recognition As the evening was reaching its climax with the presentation of the CEO award, last year’s awardee Budapest Airport CEO Jost Lammers highlighted the difficulty in finding the one chief on the shortlist who deserved the prize above all the others. “It was an extremely difficult decision process, as each of the candidates would really deserve the title,” Lammers said. “We had a lot of

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heated but professional discussions,” he added.

Eventually though, the board of judges unanimously decided to acknowledge the chief of GE Hungary. “I am very honored to be part of such a distinguished group

of nominees, I believe anybody could be standing here,” said Bauer in accepting the prize. “When I came here to Hungary I would not have ever thought that I would be standing here,” he said addressing the crowd in Hungarian. “This

award is a great motivation for all of us to find solutions that work for our companies and the country of Hungary well,” he added.

As an addition to the accolade, Bauer also received a test drive for a week of BMW’s latest model to mark the worldwide launch of the all new BMW 5 series, provided by BMW Group Hungary.

Roll of Honor BBJ Expat CEO of the Year 2017 - Joerg Bauer, CEO of GE Hungary 2016 - Jost Lammers, CEO of Budapest Airport 2015 - Javier González Pareja, then CEO of Bosch Magyarország HIPA Local Partnership Award 2017 - Ekkehard Philipp, CFO of Mercedes-Benz Manufacturing Hungary 2016 - Naoyuki Takeuchi, then CEO of Magyar Suzuki 2015 - Kersten Bachmann, CEO of TAKATA Safety Systems Hungary

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Some of the 170 attendees.

AmCham CEO Íris Lippai-Nagy, with her husband, and GE’s Jörg Bauer and wife.

GE Hungary had a busy and productive year in 2016. In October the company inaugurated its Global Digital Development Center in Budapest through a HUF 8 billion investment, creating almost 1,500 jobs in the country. GE Steam Power Systems is also said to be among a number of companies in the running to supply the turbines for the upgrade of Hungaryʼs sole nuclear power plant in Paks.

HIPA Award Surprises Recipient Giving an introduction to the whole evening, HIPA President Róbert Ésik said that his institution has a “beautifully complex product” to sell, which is Hungary itself. “We try to position and sell [Hungary] worldwide as a location for investment and doing business,” the president said. He noted that his organization is committed to providing reliable advice, tries to provide funds where it can, and seeks to ensure that the voice of companies is heard by the Hungarian government.

When receiving his Local Partnership Award accolade from Ésik, Ekkehard Philipp said he was surprised by the agency’s decision to choose him. “It was a really big surprise and I was not prepared for this.… I am very grateful and deeply touched and almost speechless,

Runners up This year’s runners up for the 2017 BBJ Expat CEO of the Year award were: Marc de Bastos Eckstein, executive director of ThyssenKrupp Presta Hungary Kft.; Rick P. Enders, general manager of Budapest Marriott Hotel & Marriott Executive Apartments; Jesper Hassellund Mikkelsen, senior vice president of European Moulding and DUPLO, head of LEGO Moulding Denmark, and general manager of LEGO Manufacturing Hungary; and Stephan Interthal, general manager of the Kempinski Hotel Corvinus Budapest.

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BBJ Expat CEO of the Year Jury The tricky task of picking the winner goes to our regular jury, which, since the launch, has been comprised of Dr. László Szabó, Deputy Ministry of Foreign Affairs and Trade; Írisz Lippai-Nagy, CEO of the American Chamber of Commerce in Hungary; Dale A. Martin, President of the GermanHungarian Chamber of Industry and Commerce, and President and CEO of Siemens Hungary; and Balázs Román, the CEO of Absolut Media Zrt., publisher of the Budapest Business Journal.

By tradition, the fifth seat on the jury is taken by the previous year’s winner, meaning Jost Ernst Lammers, CEO of Budapest Airport Zrt., got to see the process from the other side. which is unusual for me,” he added.

“Mercedes-Benz and Hungary belong together. We are here to stay.”

HIPA worked with MercedesBenz Hungary last year as the auto manufacturer made another significant

György Habsburg.

investment in the country. At the end of July, the Hungarian subsidiary announced it would be doubling the capacity of its Hungarian plant in Kecskemét through an investment of EUR 1 billion. By the end of the decade, the company expects to launch production and create 2,500 new workplaces.

While maintaining that the investment is a “very positive message” for the country, Phillip also warned that there is room for Hungary to improve in certain areas, such as the lack of manpower, the education system, as well as the implementation of the public administration.

“As a first time invitee, I felt honored and curious to see what would be in store for me at this gala event. The organization was perfect, as well as the location, with a friendly and light atmosphere, but at the same time an elegant program. I met a company of great expat CEOs and even found some business opportunities and potential partnerships for our company. How great that in Hungary businesses can be recognized in this form too! Thank you again to the BBJ, HIPA and all the supporters of this award for the invitation and the successful evening!”

Yongping Chen, Managing Director, BYD Electric Bus & Truck Hungary Kft.

BMW’s ‘invisible factory’ BMW Group Hungary offered a special prize of a test drive of its all new BMW 5 series model to the Expat CEO of Year, and another to a member of the audience drawn from a bowl. The 5 series only received its worldwide launch the following day, on February 11. “It is a special pleasure to offer to the winner a unique test drive with the new BMW 5 series, on the worldwide launch of the model,” Baudouin Denis, managing director of BMW Group Hungary.

He stressed that the new car is 100 kg less, is more dynamic and “more fun to drive”.

Denis also talked about investments and doing business in Hungary. “The first time I met a gentlemen called Viktor Orbán, he asked me when BMW would be coming to Hungary, because the country needs our factory,” Denis told the audience. “I told him, you are absolutely right, but we already have a factory in Hungary, but you can’t see it …. we have more than 65 partners in Hungary who are working for BMW day and night.

They employ more than 10,000 people and they are delivering to all the factories BMW has worldwide, every single day. Those companies are key elements of the company, officially we spend EUR 1 billion in the country through these companies every single year.”

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Special Report

www.bbj.hu

Budapest Business Journal | february 24 – March 9, 2017

Expat CEO Gala

BMW Magyarország CEO Baudouin Denis, the BBJ’s Robin Marshall, GE Hungary President Jörg Bauer, and last year’s Expat CEO of the Year Jost Lammers.

Rick P. Enders, GM of Budapest Marriott Hotel, and BBJ publisher Tamás Botka.

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CEU COLUMN

Investing in Education to Promote Talent, the Economy and Social Well-being Jason Weedon Director for Strategic Partnership CEU DEVELOPMENT OFFICE

Hungary is widely recognized for its contributions and innovation in the sciences and mathematics, with disproportionately high numbers of Nobel laureates and inventors relative to its population. We have Hungarian innovators to thank for many of the positive aspects of our daily lives: from color television to Vitamin C to ballpoint pens. Yet like many countries in our rapidly developing world, Hungary is experiencing a skills-gap.

HIPA President Róbert Ésik.

BBJ editor-in-chief and MC for the evening Robin Marshall.

British Ambassador Iain Lindsay.

In October 2016, the Manpower Group reported a near crisis in terms of the labor shortage in Hungary. A record

57%

OF COMPANIES

reported difficulties finding workers for open positions, a 10 percentage-point increase from 2015 and well above the average of 40% among the 42 countries surveyed. Positions with the highest vacancy rates included engineers, doctors, information technology experts and accountants, leaving companies like Samsung to source labor from neighboring countries.

The reasons for the shortage are multifold and include emigration and low wages, among other factors. It also is clear that, for many, the skills gap has roots in the primary and secondary education system.

The 2015 PISA survey, a world-wide study of 15-year old students’ scholastic performance, found that Hungarian students performed below the OECD average in reading, mathematics and science, and in general scores in these subjects have been declining since 2006.

Moreover, according to the World Bank, Hungary’s students show a gap in digital literacy and problem-solving skills, as well as large income-based disparities in achievement.

Central European University’s own research on the skills gap in Hungary and

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across the European Union has confirmed these trends, yet it has also underscored the incredible potential of the Hungarian labor force. Data shows that Hungarian youth who have completed higher education in high-demand subjects have greater opportunities to find employment and can realize significantly higher wages.

However, for those with lower levels of education and training, employment is more difficult to obtain despite the growing number of open positions.

As detailed on these pages, Jörg Bauer, CEO of GE Hungary Kft. won the Budapest Business Journal’s Expat CEO of the Year Award. The honor is welldeserved, given Bauer’s leadership and GE’s growing investment in Hungary. The company has more than 10,000 employees, a new Global Digital Development Center in Budapest, and an increasing number of job opportunities that are both highlyskilled and highly-paid. These are the kinds of jobs that Hungary (or any nation, for that matter) endeavors to attract, as they provide pathways to long-term economic and career success.

And GE’s investment in Hungary extends beyond job creation. As part of its broader skills development strategy, GE’s philanthropic arm, the GE Foundation, has invested an estimated USD 1.2 million in Hungary, including a scholar-leaders program to support Hungarian secondary and higher education scholarships with the goal of creating a network of future leaders. This is part of the GE Foundation’s larger global strategy to play a critical role in helping students develop skill sets that better prepare them for higher education and careers in a 21st century digital world.

Beyond GE, companies like Apollo Tyres, Audi Hungaria, Coca-Cola Hellenic Bottling Company, Erste Bank, Morgan Stanley, MSCI, Nokia, OTP, Siemens, and Velux are also making significant investments in education and training in communities throughout Hungary. Additionally, several private foundations founded and supported by successful Hungarian business leaders are working to ensure that deserving students, regardless of socio-economic background, have opportunities for a high-quality education.

As companies relocate and expand in Budapest and in Hungary, each should consider making deeper, strategic investments in education at all levels to help the leaders of tomorrow develop the skill sets they need for success in the labor market. This will not only prepare our students for the rapidly changing world economy, but it will help create talent pipelines for companies that require skilled employees. In time, these emerging philanthropic partnerships between the corporate and educational sectors will impact Hungary’s economic growth and social development for the benefit of future generations.

This column is part of a continuing series of opinion pieces from experts at the CEU Business School in Budapest. The opinions stated here do not necessarily reflect those of the Budapest Business Journal.

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A Commitment to Common Growth

GE Hungary’s Jörg Bauer, the winner of the 2017 Budapest Business Journal Expat CEO of the Year award, enjoys life in Hungary. Having known this country for two decades, he says he sees positive changes. In our interview, he shares why he thinks that GE is a good place to work and how Hungary could be successful as a digital industrial country. ÁGNES VINKOVITS

From a strong shortlist, you were chosen as the most influential foreign CEO in Hungary this year. What are you the most proud of, and why do you think you won?

It is a great honor to receive this prestigious award, particularly following the first two outstanding CEOs [Bosch chief Javier González Pareja and Budapest Airport’s Jost Lammers] in the previous years. I do believe GE Hungary has earned influential recognition for its continuous investments to strengthen GE’s digital industrial footprint in the country, and its commitment to common growth in partnership with Hungary.

What does responsible company management mean to you, be it strategy or daily work?

We believe in the value of diversity and equal opportunities and strive to create an environment where, as one example, no mother or father has to decide between family and children and working at his or her best in the company. As a large company, we believe that we have a large responsibility for our employees and their families, our suppliers and partners.

In your thank you speech, you briefly switched to Hungarian. This language must be a challenge for foreigners. Do you use Hungarian in your daily work, too?

Hungarian is a language that requires a substantial investment before one is able to freely formulate sentences. English, in contrast, starts easy and gets more challenging as the learner progresses. I have had two months at some point that I could fully dedicate to learn the language, which helped a lot. Unfortunately, I do not speak Hungarian regularly, but there are situations where I use Hungarian for meetings or in a few cases for presentations.

Twenty years ago, you had already spent a year in Hungary as a student, and since then you have lived here several on several separate occasions. Do you like living here?

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When I first came here, Budapest was a city of dark buildings; the Parliament, the Bazilika and Mátyás Templom were all almost black – but still it had a very special charm and atmosphere, which I very much liked. Budapest and a lot of other cities, like Győr, Debrecen and Balatonfüred, just to name a few, have seen tremendous improvements in infrastructure and renovation.

Today, Hungary is not by chance a very attractive location for tourists.

I believe Hungary is an amazing, very livable country with lots of opportunities.

Being German, but living in Hungary for 20 years, it feels like my chosen second home.

What do you see as the most significant changes in Hungary between 1997 and 2017 either in a professional and a personal way?

When I first came here, Budapest was a city of dark buildings; the Parliament, the Bazilika and Mátyás Templom were all

almost black – but still it had a very special charm and atmosphere, which I very much liked. Budapest and a lot of other cities, like Győr, Debrecen and Balatonfüred, just to name a few, have seen tremendous improvements in infrastructure and renovation. Today, Hungary is not by chance a very attractive location for tourists.

GE Hungary signed a strategic partnership agreement with the Hungarian government in 2012. Are you content with the compliance of the agreement? I mean especially the governmental promise on rearranging the training aid system and GE’s commitment to increase the number of its Hungarian suppliers up to 2,000.

The strategic partnership is a mutual commitment on partnering to jointly develop Hungary. It is publicly available and does not contain very specific details; however, we take it very seriously and act according to our commitment. We work very closely with public and private partners to support our local suppliers getting access to global markets via GE’s global network and providing insight into today’s and future needs of the industry.

GE is one of Hungary’s biggest employers with more than 10,000 employees, 12 factories, five R&D centers, three business headquarters and present in 13 cities. How do you find the local workforce? Do you experience any major difficulties or regional differences when recruiting new labor?

Born and raised in Germany, Jörg Bauer left his mother country at the age of 23 and has mostly lived in the CEE region since then.

He studied in Bonn, Cologne, Oxford and Budapest, and is an economist. Prior to becoming the CEO of GE Hungary, he had been responsible for several fields from finance to IT. In his free time, he focuses on his family, reads historic novels, listens to classical music and regularly works out in a gym.

When it comes to role models, he says he is inspired by JFK. We experience that the labor market has changed in the recent years and became more candidate-friendly. The quality of Hungarian professionals is widely acknowledged, companies need to compete more actively to attract and retain talents, who are key accelerators of GE’s digital transformation. We are proud of our company culture, which enables us to become an employer of choice in the country and in the broader Central and Eastern European region.

How do you consider the Hungarian regulatory environment regarding predictability and investor friendliness?

Hungary is an attractive place for GE to invest. The business environment and the cooperation with the government have been supportive of our efforts and operations. Due to the central, globally competitive location and the great IT talent base, GE has opened one of its six global digital hubs in Budapest, which is considered one of the main digital industrial bases for the company in Europe. With this investment, GE in Hungary has now arrived at the core of GE’s future strategy to be the world’s premier digital industrial company. We believe, based on its strong supply chain base and its competitive IT sector, that Hungary could be one of the world’s premier digital industrial countries.

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‘All, or Nothing at All…’ The Budapest Business Journal spoke with Ekkehard Philipp, CFO of MercedesBenz Manufacturing Hungary Kft., and one of the managing directors at the auto manufacturer’s Kecskemét factory, about what winning the HIPA Local Partnership Award means, successes and challenges in doing business in Hungary, and what the future may hold.

ROBIN MARSHALL

How has the way Mercedes-Benz works with its Hungarian suppliers changed in the years since the Kecskemét plant opened? How has the number of Hungarian suppliers you use grown, and what plans do you have for further expanding their?

The plant cooperates with a number of European suppliers, of which more than 30 are registered in Hungary. They operate in the territory of the plant, at Kecskemét, and also in other parts of the country.

At the opening of the plant in 2012, the number of Hungarian-based suppliers was fewer than 20. The number increased due to the start of production of the fourdoor compact CLA Coupé in 2013, and most recently it has grown to more than 30 with the introduction of the CLA Shooting Brake in 2015. Both of these models are produced exclusively in Kecskemét for customers around the world.

Localization is very much linked to the

Localization is very much linked to the ongoing expansion of Mercedes-Benz’ manufacturing operations in growth regions. It plays an important role to meet the demands of local customers and regulations. Our goal is to increase localization in our global production plants with every new model. We always choose our suppliers based on the three criteria of innovation, supplier quality and partnership.

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HIPA President Róbert Ésik and winner Ekkehard Philipp. Below, Ekkehard and his wife, to whom, along with his colleagues, he dedicated the award.

ongoing expansion of Mercedes-Benz’ manufacturing operations in growth regions. It plays an important role to meet the demands of local customers and regulations. Our goal is to increase localization in our global production plants with every new model.

We always choose our suppliers based on the three criteria of innovation, supplier quality and partnership. Our traditional suppliers and others still have every opportunity to win contracts from us.

Geographical proximity does, of course, play an important role to ensure today’s just-in-time/just-in-sequence production.

With respect to the production materials for the successor generation to the current compact cars, we are looking for suppliers who can supply both production sites in our production compound, that is Rastatt in Germany and Kecskemét in Hungary.

This opens the door for our suppliers in Western Europe, either directly or as tier-n suppliers.

What sort of message does the success of Mercedes-Benz send to Hungary?

That you can be really proud. Two Mercedes-Benz passenger cars with this particular quality – the CLA and the CLA shooting brake – are produced exclusively in Hungary for customers all around the world. This is a real success story. Hungary is looking forward to a future within a common and strong Europe.

What are the biggest challenges facing the Hungarian economy, from your standpoint?

To my way of thinking, it is significant to make further developments of the dual education system, which was founded

by Mercedes-Benz in Hungary. As the positive results show, it is also important to cooperate with further partner institutions, such as companies and schools.

The implementation of lean processes between public administration and companies is also an important factor.

Another success factor will become more important for Hungary: The relationship between companies and trade unions. To achieve sustainable solutions we have to

work closely together as trustful partners in all topics.

You mentioned at the gala that you would be leaving Mercedes-Benz soon, but not Hungary. Could you tell us about your plans for the future?

This is correct. My wife and I have been living in Hungary since August 2012 and we fell immediately in love with this country and its people. Hungary has become our second home. So we decided to stay here. After the expiration of my expatcontract with Mercedes-Benz, I will leave the company, but not the brand. I will keep on driving a Mercedes-Benz! We are happy to stay in Hungary and thankful to have this great opportunity. I am very much looking forward to this big new challenge.

What does winning the award mean for you and for Mercedes-Benz Manufacturing?

I was deeply touched and proud at the same time. To receive this award, was indeed a very emotional experience I will never forget. This award is dedicated to my wife. She was and is my personal coach and supporter during my whole business life. She is my personal success factor and

biggest friend, and the best thing that could have happened to me.

For me this award is like a milestone.

After more than 31 years working in the management of Daimler, thereof almost five years in Hungary, this award is an obligation as well. I am really glad to work in this country and its people and to support and reinforce the positive development in Hungary also in the years to come.

This award is also dedicated to my colleagues at Mercedes-Benz in Hungary, and especially to those at Mercedes-Benz Manufacturing Hungary Kft. The award means that we are on the right path with the flexibility, the spirit of innovation and the speed of implementation at MercedesBenz in Kecskemét. That makes the difference. The success of Mercedes-Benz in Hungary proves us right: MercedesBenz decided to invest in a second plant next to our first site in Kecskemét.

But we also have to acknowledge that nothing can be taken for granted. “Who stops improving, will stop being good.”

To remain successful in the future is a permanent challenge: “The best or nothing – A legjobbat vagy semmit”; not without reason is that the motto of Mercedes-Benz.

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Time for a change!

Automated tax solutions www.pwc.com/hu/smarttax

Š 2017 PricewaterhouseCoopers Hungary Ltd. All rights reserved.

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Past, Present and Future

V isiting Mai Manó House in central Budapest, also known as the Hungarian House of Photography, is a must for anyone curious about the history of photography. Or, indeed, in the mood for a somewhat surreal experience.

DAVID HOLZER

We visited on a bitterly cold but gloriously sunny day in January. Perfect conditions in which to view the house, it turned out.

The eight-story Mai Manó House was built for Imperial and Royal Court Photographer Mai Manó (1855-1917) in the years 1893-94. Unlike Hungarian photographers such as László MoholyNagy, Brassaï, and André Kertész (all featured in this column in the last issue), Mai Manó appears to have been neither avant-garde nor interested in chronicling lowlife. Unless he had a secret photographic life that we don’t know about, that is.

A specialist in child portrait photography, and the founder and editor of a periodical launched in 1906 called A Fény (The Light), Mai Manó was determined to give a certain gravitas to what was then far from being regarded as an art form. Façade paintings on the third floor of the house show the “six muses of photography” and the frescoes in the sunlight-studio are clearly intended to conjure up associations with the Renaissance.

Painted to serve as backdrops to the photographs, the frescoes were apparently discovered hiding behind white wallpaper and had been covered for decades. Thank the gods of photography they weren’t painted over.

A Magical Inner Sanctum When we stepped into the sunlight-studio, it immediately became clear why it is so-called. On the day we visited, the room was flooded with light, which, along with the charming frescoes and ancient cameras, added to the sense we were stepping into a magical inner sanctum.

Mai Manó passed away in 1917 but his purpose-built studio remained in use until 1931. After this it became the Arizona bar – which may well be the most inappropriately American-themed bar name I’ve ever heard. The Arizona closed in 1944, and the house was divided into offices and apartments, although its essential character was thankfully preserved.

The building was declared a national heritage site in 1996, and two years later became the Hungarian House of

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Photography. Renovation, sponsored by the state and managed by Szántó and Mikó Architects is still ongoing, but is apparently close to being completed.

This makes it feel like you’re wandering through a work in progress, another reason why a visit to Mai Manó House is oddly satisfying.

Hanging on the walls of the tiny bookshop at Mai Manó House is a selection of photographs by contemporary Hungarian photojournalist László Végh, called “In the shadow of the Russian-Ukrainian conflict”.

Perhaps because I still had one foot in the past, I was mightily struck by the power of Végh’s photos. This, in turn, led me to wonder about the contemporary Hungarian photography scene.

Contemporary Hungarian Photography I started with Hungarian photographer Tomas Opitz who, together with Bea Puskás, runs the TOBE Gallery in Budapest. The gallery opened in 2013, aiming to show Hungarian and Ibero-American artists who combine experimentation with a dedication to high quality artistic expression and produce collectable work.

I asked Opitz if he thought Hungarian photography had a special character.

“Yes,” he said. “It’s to do with the joy of discovering the world, a pleasure in experimenting and love of interaction. This was actually developed by Hungarians overseas like Capa, Brassaï, Kertész and Moholy-Nagy. Within Hungary, that spirit was kind of forgotten for years.”

How would he describe Hungarian contemporary photography? “It’s a field that’s growing,” he told me. “There are plenty of photographers doing interesting work. But the scene needs more networking space. It would also be good if there were stronger ties between Hungarian and foreign photographers and galleries.”

What other challenges do Hungarian photographers face, apart from being better known abroad? “It isn’t enough that the profession – the szakma – knows about Hungarian contemporary photographers.

We need to be known by the Hungarian people, and in their homes. Galleries like ours are a great way to bring people into contact with contemporary photography, without the sometimes intimidating rigor of the museum. We’re working to create a space where the photography becomes part of you.”

And what of the future of Hungarian photography? “It’s clear to those of us that travel abroad that there’s big interest in Hungarian photography. Building a more close-knit community here comes down to how much we want it to happen. Investors with deep pockets who really believe in Hungarian photography would obviously also help.”

Szilvia Mucsy and the Budapest Photo Festival Like Opitz, Hungarian photographer Szilvia Mucsy is also very much concerned with the future of photography in this country.

Mucsy is one of the driving forces behind the Budapest Photo Festival, taking place between February 23 and April 30.

She’s an award-winning photographer and exhibiting artist based in Budapest. Her work has been shown solo and in groups in Athens, New York, Rome and other artistic centers worldwide as well as in Hungary. She also teaches photography and is chair of the RANDOM Association of Contemporary Photographers.

The Budapest Photo Festival is the first of its kind in Hungary. It was created by Mucsy and her art-historian/curator friend Rita Somosi. Renowned photo-historian Klára Szarka is now also part of the team.

The festival, which involves the largest galleries, museums and international cultural institutions in Budapest will be

“an annual city-wide exhibition series representing the classical and contemporary values of Hungarian and international photography.” It has the patronage of the deputy mayor of Budapest and is part of the Photo European Network (PHEN).

Over two months there will be almost 30 exhibitions, starting with “Suffering from Light”, a show of work by MAGNUM photographer Alex Webb at the Kunstahale (Műcsarnok). The festival program also includes lectures, workshops, educational events, a portfolio review and something intriguing called a photo marathon.

For Mucsy, the Budapest Photo Festival is an opportunity to honor and showcase the unique Hungarian sense of “creativity, courage and ingenuity of our country’s photographers. We have produced so many pioneers who experimented with light and composition to reveal profound truths about the artist and their environment. Today our mission is to help contemporary Hungarian photographers promote themselves, exhibit and gain access to scholarships. But most of all we want to make the art of photography more accessible to the public.”

Let’s hope this happens. Because Hungarian photography has a unique and inspiring heritage, both for photographers and the people who appreciate their work.

The excellent work being done by so many contemporary Hungarian photographers deserves to be far more widely known.

You can find out more about Mai Manó House at www.maimano.hu.

Details of the Budapest Photo Festival are at www.budapestphotofestival.hu.

The TOBE Gallery is open to the public between 2 and 6 p.m., Tuesday to Friday or by appointment – go to www.tobegallery.hu.

Photographers worth checking out I’m grateful to Tomas Opitz for this short list of contemporary Hungarian photographers doing interesting work.

In Hungary: Anikó Robitz – http://anikorobitz.photo Szilvia Bolla – http://szilviabolla.tumblr.com Ákos Major – www.akosmajor.com Gáspár Riskó – www.gasparrisko.com Gábor Arion Kudász – www. arionkudasz.com Lilla Scász – www.szaszlilla.hu László Végh – www.laszlovegh.com Abroad: Ádám Magyar – www.magyaradam.com Márton Perlaki – www. martonperlaki.com Péter Puklus – www.peterpuklus.com

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A Fine Pair of Good Value Reds

While Hungary offers plenty of bang for the buck when it comes to white wine, the production of which the climate and other factors generally favor, it is much more of a challenge to find delicious, easydrinking reds – the likes of which are so ubiquitous from more southern European climes.

ROB SMYTH

Hungarian red wine is often over-priced due to factors such as the popularity of red wine and its relative lack of supply vis-à-vis white wine in Hungary: local production is roughly two-thirds white to one-third red. There are also a lot of red wines in Hungary still made in the spirit of throwing as much of everything into the pot as possible. Not only do grapes continue to be harvested as late as possible in order to achieve the maximum concentration, which leads to jaminess, a lack of varietal character or a sense of place in the wine, there can also be too much tannin, alcohol and oak involved in the heady and overly expensive mix. Finally, a growing band of producers are understanding that less can be more, focusing more on finesse and elegance over power and intensity. Sometimes the most ADVERTISEMENT

enjoyable wines can be those that are especially light, fruity and airy, and are not made to be cellared but are rather to be enjoyed in their youthful prime – when the primary fruit and freshness are at their peak.

Here are two excellent value reds currently on the market that pack lots of juicy fruit and zest into the bottle at a severely underrepresented price point.

HEIMANN SXRD CUVÉE 2015 (SZEKSZÁRD) The aim with this wine was to make a “juicy, easy-drinking Szekszárd wine”, according to Zoltán Heimann, Jr. It is a blend of approximately one-third each of Kékfrankos, Cabernet Franc and Merlot.

Heimann, who makes the wine in tandem with his mother Ágnes, said that while “no fancy grapes”’ went into SXRD 2015, they were fresh, from a good quality crop and with lower alcohol levels. The grapes come partly from the family’s own

young vineyards (Merlot and Cabernet Franc) and partly from bought in grapes from the cooler area of Báta.

It also contains around 7% of the Heimanns’ own Sagrantino, the über tannic Umbrian grape that makes Sagrantino de Montefalco, which was used to bring some tartness, especially to the aftertaste, as well as to ramp up the tannin structure that might otherwise have turned out a tad too thin. Incidentally, the Heimanns planted Sagrantino in Szekszárd on the recommendation of the late, great Tibor Gál, who served as chief winemaker at Tenuta dell’Ornellaia in Bolgheri and consulted in other parts of Italy.

SXRD was aged in large, used casks to preserve the fruit and to minimize the influence of oak. “The name is intended to be approachable and something that people are willing to drink on an average Thursday night, somewhat young and hipster, but still undeniably Heimann, as well as a way to help foreigners to pronounce Szekszárd,” says Heimann. Regarding the latter point, foreigners will no doubt appreciate the help but may still struggle due to the lack of a vowel.

The vibrant acidity and red fruit of the Kékfrankos is nicely built on by more red fruit from the Merlot and black fruit from the Cabernet Franc and Sagrantino. It also has delicious peppery quality that spices the fruit up and enough tannin to give it some grip and mouthfeel without spoiling its lightness of touch.

HUF 2,200 from Bortársaság (bortarsasag.hu/en) BUJDOSÓ KATAMARÁN 2013 (BALATONBOGLÁR) A 50-50 blend of Cabernet Sauvignon and Cabernet Franc harvested from the end of the September to the beginning of October from the warm but not hot western-facing Kokas vineyard on the southern side of Lake Balaton. Cabernet Sauvignon is a tricky grape to ripen in Hungary – and indeed in Bordeaux – which is why it often blended with other

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grapes like Merlot and Cabernet Franc.

There isn’t any hint of under-ripeness in this wine, with none of those stalky green tannins but pure juicy fruit and delightfully soft tannins that are almost

WINE PRODUCTION IN HUNGARY

2/3 white 1/3 red

New World in texture. I doubt if it’s a case of the Franc, which ripens earlier than the Sauvignon, carrying the more famous Cabernet, having been impressed in the past with how soft and juicy this winery’s Sauvignon can be.

This wine also stops well short of being overripe and jammy.

The Cabernet Sauvignon and Cabernet Franc grapes were vinified separately, aged in used 225-liter barrels for 24 months, and later blended. While it may sound like a long time to be aged in oak for a lighter wine, the wood is very well integrated and doesn’t mask any of the pungent and juicy fruit of the forest-cumblackberry notes. This wine weighs in as medium to medium plus bodied, and is very balanced with the alcohol at 13.5%. This is a real go-to wine for when you’ve been invited somewhere for dinner and don’t need to show how much you’ve spent but want something that you and your hosts will happily sip.

HUF 2,000 from In Vino Veritas (Dohány u. 58).

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WHAT’S HÁRY ESTÉLY – A NIGHT FOR GUARDIANS AND ARTISTS February 25, Hungarian State Opera Andrássy utca 22, 1061 Budapest Every year, a number of influential businesspeople and artists show up at the Hungarian State Opera to celebrate together at one of the city’s most stylish Farsang (Carnival) galas. In 2017, the theme of the event embraces the Hungarian folk opera “Háry János, by renowned Magyar composer Zoltán Kodály, while Italian bass-baritone Ildebrando D’Arcangelo and Latvian tenor Aleksandr Antonenko perform as special guest stars.

LINDSEY STIRLING CONCERT February 27 Papp László Budapest SportArena Stefánia út 2, 1143 Budapest In only four years – since the release of her 2012 eponymous album – American violin virtuoso, dancer, and performance artist Lindsey Stirling has become one of the 21st century’s most innovative

impresarios by pursuing her dream of popularizing cinematic violin-driven electronic music. At the moment she tours around the world with her third full-length album, “Brave Enough”.

Tickets available from www.jegy.hu.

BUDAPEST ARCHITECTURE FILM DAYS March 2-5 Toldi Cinema Bajcsy-Zsilinszky út 36-38, 1054 Budapest Organized annually by the Hungarian Contemporary Architecture Center, this motion-picture event presents and examines the correlation between the movie industry and architecture. This year’s program aims to highlight the metamorphosis of Budapest and the changes in the city’s construction practices.

For more information: filmnapok.kek.org. hu/en PUBLIC HOLIDAY – OBSERVANCE OF THE 1848 HUNGARIAN REVOLUTION, HONORED NATIONALLY March 15

Hungarian folk dancers from Káposvar commemorating March 15.

Budapest and Nationwide Several historic sites welcome the public countrywide to commemorate Hungary’s 1848 Revolution against the oppressive Austrian Empire, with political speeches, military processions, and free programs. The main venues of the event in Budapest include Kossuth Lajos tér,

the Hungarian National Museum, and the Buda Castle. Check out the official government program (in Hungarian only) at marcius15.kormany.hu Text provided courtesy of WeLoveBudapest.com

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