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Teachers, officials at loggerheads Teachers have begun demonstrating, and they say they are ready to strike, if officials do not grant their demands for a dismantling of the centralized body that administers education. 7

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Analysts amazed by trade surplus Big export growth, and a reduction in the cost of imports like oil, helped drive Hungary’s trade surplus to roughly €8 billion for the year that just ended. The forint has been performing well as a result. 3

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Cabinet Chief János Lázár promises a leaner, more efficient government and a more competitive economy after cuts beginning this year start to reduce the size of the state’s payroll, which now features one million workers. 6

In her 16 years of running the Budapest office of the Weil law firm, Anita Mónus has experienced the death of faxes and the advent of a greater workload, facilitated by the digital revolution. 15

Two experts from the Central European University Business School argue that the CSOK program to help families invest in new homes provides a rare opportunity to improve the country’s stock of housing. 12

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Time to listen to our teachers This is one of those times when it is a good idea to listen to what our teachers tell us. Educators around the country are sounding the alarm about the deteriorating state of our country’s schools, and the problem is bigger than poor pay. While they note the need for more funds, the teachers and their union say they are more concerned about the system of centralized administration that has been put in place since 2010. Given the growing concern among local businesses about the shrinking pool of well-trained workers in Hungary, this is a problem worthy of our attention. The future of our children is at stake, and so is the country’s ability to remain competitive. The problem with funding is obvious enough: According to a 2015 report from the Organization for Economic Co-operation and Development: “Annual expenditure per student by education institution in Hungary, from primary to tertiary level, is one of the lowest of all OECD counties: $5,564 compared to an average $10,220.” The report also notes that spending on education in Hungary has dropped steadily since 2008. Teachers say that the lack of funding means they go without printer cartridges in their offices, and they have to buy their own chalk. Because they are so poorly compensated – with teachers earning less than half the pay of a typical worker with similar qualifications – we are losing many of the most capable educators to other lines of work. As low as their pay may be, teachers seem even more upset about the problems with centralization. In 2010, the newly elected Fidesz government used its two-thirds majority in Parliament to pass dramatic reforms to the way education is administered. Given the declining performance of Hungarian students on international standardized tests, reform was definitely needed. Unfortunately, the solution may have made things worse. The changes in education were handled like many changes ushered in under the current government: Through centralization and the establishment of a “top-

down” system. Critics of the government would say that this tendency to take control of everything from education to energy is a plain abuse of power by the leadership. Government officials generally argue that they are taking more control because they need professional leadership and tighter reins to fix broken systems. Whatever the real reason, giving a few people too much power over education increases the risk that they misuse that power and ignore the vital input of professional educators in the field. This seems to be one of the main complaints from teachers, who say they do not have enough freedom to develop a good curriculum. Educators maintain that the long list of required, standardized lessons forces teachers and students to waste a lot of time on unnecessary subjects. They also complain that the curriculum emphasizes memorization over critical thinking. When it comes to the textbooks, it would certainly appear that the critics who see an abuse of power have a point: In 2014, the publishing industry was in an uproar over the plan to let central authorities choose a limited group of textbooks that schools were allowed to use. The charges that the lucky publishers of those books were chosen on the basis of patronage gained credence when the books came out at the beginning of the school year and were found to be full of errors, inaccuracies and – in some cases – bizarre subjective information passed off as objective fact. The government has said it will seek to improve teachers’ pay, slightly. But the teachers have made it clear that the problems with education cannot be bought off cheaply. It is time we listen to what our teachers are saying: Professional educators on the local level need to be allowed to make more of the decisions about schooling, and the government and citizens need to be ready to spend more on education. If we cannot make that investment, we will cheat our children, and deprive our businesses of the capable labor they need.

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Above is a costume party in Szentendre in 1985, to celebrate Farsang, the Hungarian version of the Lenten carnival season, in a 1985 photo from fortepan.hu. At left is a Farsang celebration of a nursery school on February 10 in Nyíregyháza, in a photo from MTI. As with the carnival season in other cultures, Farsang season in Hungary starts on Epiphany and ends on Ash Wednesday.

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Foreign trade surplus hits historic high Strong export performance foretells an impressive start to the year and boosts confidence in the forint. ZSÓFIA CZIFRA

In the past few days, Hungary posted very favorable foreign trade data and a significant current account surplus. Both figures can give a strong foothold to the Hungarian forint, which has performed surprisingly well since the beginning of the year, compared to other emerging market currencies. The figures of the December foreign trade balance came as a massive surprise to analysts: According to preliminary data released by the Central Statistical Office, the trade surplus grew to €643 million from €246 mln from a year ago, while economists earlier forecast a surplus of €340 mln. The rise was driven by strong export growth: Exports rose 7.3% from the same period of the previous year, while imports increased only 1%. Three-quarters of the exports went to EU countries, and 76% of the imports came from the region. Data was exceptional for the entire year, too. For the full year of 2015, the trade surplus was €8.1 billion, up from €6.3 bln in 2014. Exports increased 7.4%, while imports rose 5.6%. “Although no details are available yet, we assume that the growth rate of the imports fell back only temporarily,” Gergely Ürmössy of Erste Bank commented on the figures. “Also, as a result of this moderate data, the January imports growth rate will probably be higher than usual, as domestic consumption and investments are strongly linked to imports. As for the full year, we expect that the foreign trade surplus will come in at around €8 bln, similar to last year’s figure,” Ürmössy added. The massive surplus of the foreign trade account correlates with a high current account surplus. As data released on February 9 shows, the central state budget posted a surplus of HUF 17.6 bln, social security funds had a surplus of HUF 41.2 bln and extra budget funds reported a HUF 33.4 bln surplus in January. The HUF 92.2 bln budget surplus is outstanding compared to previous years. The only time the starting balance has been better was in 2012, the National Economy Ministry commented on the figures. According to Ürmössy, the surplus could protect the Hungarian currency from negative international stock market and investor sentiment.

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Hungary’s balance of external trade in goods at current prices in billions of euros.

10 8 6 4 2 0

2012

2013

2014

2015 SOURCE: Cental Statistical Office

Oil prices cut import costs

Gergely Suppan, an analyst with Takarékbank confirmed that last year’s foreign trade surplus of €8.1 bln is an all-time high figure, but also said that import figures were way under analysts’ expectations. According to him, the low figure was mainly caused by plummeting oil prices. In 2015, Hungary’s foreign trade surplus grew by €1.82 bln, towards which the last quarter of the year contributed €700 mln, which shows that net exports could have significantly added to GDP growth. “This shores up our expectations regarding the Q4 GDP data that comes out on February 12, and which is likely to show substantive acceleration again,” Suppan explained. According to Suppan, the recordhigh foreign trade surplus supports the country’s external financing capability, which means that the net external debt might disappear in the coming years, and Hungary could even become a net external lender by the end of the decade. As a result, external vulnerability will massively decrease, leading to financial stability, and, at the end of the day, further improvements in Hungary’s credit rating. As for this year, Suppan mentioned the risk of a slowing Chinese economy – and those of other emerging countries – however, he added that this could be outweighed by the improving economic

Numbers to watch for in the coming weeks January’s consumer price index will be released by the KSH on February 11. Consumer prices were up 0.9% year-on-year in December 2015 and the pace is likely to have picked up. London-based analysts wrote in advance that they expected January inflation to reach – or even exceed – 1%. Preliminary GDP data for the fourth quarter of 2015 is due out on February 12. Construction data for December 2015 and also for the entire year last year will also be released on February 12, along with the second estimate of industry figures for last December. Agricultural producer prices for last December are scheduled to be out on February 15, followed by a second estimate of retail trade figures on February 23.

conditions in European countries that are more relevant for Hungary as a trade partner. When it comes to the Hungarian currency, it is worth noting that the forint has performed surprisingly well since the beginning of 2016, compared to other emerging market currencies. The question is how long can this good period last for the Hungarian currency? Optimistic analysts say that the EUR/ HUF exchange rate may reach 300 soon, as several things could support the forint in the upcoming months, such as the current account surplus, the expected sovereign rating updates, and the small deficit of the 2015 budget. Others, however, are less optimistic,

forecasting that the forint could ease to 320 versus the euro within two months. Tatha Ghose, at Commerzbank, said that Hungary runs a significant currentaccount surplus, which has widened in recent years, meaning that the forint is “not a strong candidate for continuous depreciation in the longer-term. Nevertheless, the currency is forecast to depreciate over the coming year, as we forecast further rate cuts in 2016, with the official three-month deposit rate being lowered from 1.35% to 1% during H1 2016, and the central bank also expanding its substantial quantitative easing program in the form of cheap lending schemes for SME’s,” Ghose explained.

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NEWS IN BRIEF VAT decrease on pork causes panic in poultry sector

EC approves €95 mln in funding for road upgrade in Hungary

Hungary’s poultry producers are in a panic as the cut to the VAT rate on pork from 27% to 5% as of January 1 has led to a significant drop in demand for poultry meat, and other food sectors are lobbying for similar VAT decreases, Hungarian economic daily Világgazdaság reported on February 1. Attila Csorbai, head of the Poultry Products Council, called the favorable tax on pork meat discriminatory, and told the paper that its negative impact can already be felt in the industry. He said that the industry is open to a similar VAT cut, the paper reported, adding that the council head is scheduled to meet György Czerván, state secretary for agriculture, to discuss the possibilities. Csorbai declined to give figures for the time being, although he noted that data will be evaluated as of the beginning of January, and exact figures will be published at a later date, the paper said. The fishing and dairy industries have already expressed openness to a similar VAT decrease, according to reports.

The European Commission on February 8 approved the allocation of €95 million from the European Union Cohesion Fund to upgrade a 27 km section of road near Lake Balaton. The section of main road number 8 connects the cities of Székesfehérvár and Veszprém, in the northwest of the country, Hungarian news agency MTI reported on February 9. The road is part of the TEN-T network, which aims to close the gap between member states’ transport networks. “This project, forming part of the TEN-T network, will have a concrete and positive impact on industry, tourism and the quality of life of the people living in the wider east Balaton area. It will contribute to removing traffic bottlenecks, improving road safety and reducing noise and air pollution,” said Corina Cretu, EU commissioner for regional policy.

Hungary huddles with Visegrad partners over U.K.ʼs benefit ban plan

The Visegrad Group countries were hoping to take a joint stance during a meeting on February 15 regarding the U.K.’s recent idea to restrict the benefits accessible to its migrant workforce, Hungarian Minister of Foreign Affairs and Trade Peter Szijjártó told Reuters on February 4. U.K. Prime Minister David Cameron’s plan for reform of the European Union, announced earlier this week, included restricting benefits for other EU nationals working in the U.K., and this was reportedly a key point of contention for Szijjártó, according to Reuters. The foreign minister said he hopes that the Visegrad summit will help the group reach a joint and fortified position on the mattter, Reuters reported. The Visegrad Four countries – Czech Republic, Hungary, Poland and Slovakia – are the largest suppliers of migrant labor to the U.K. Hungarian Prime Minister Viktor Orbán and British Prime Minister David Cameron debated the subject during Cameron’s visit in early January, when Cameron discussed the benefit ban at a joint press conference and Orbán responded: “Hungarians are not parasites.” This measure could lead to other EU nations applying similar restrictions, Szijjártó told Reuters. President of the European Council Donald Tusk also recently put forward a proposal to suspend some of the benefits previously offered migrant workers from other EU countries for four years, Reuters reported.

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Hungary eyes new national carrier with Russian partner Hungary’s National Development Ministry (NFM) has been in negotiations with Russian aircraft manufacturer Sukhoi to launch a new national carrier made up of six aircraft, state-owned news service hirado.hu reported on February 9. The Russian company would provide Hungary with six new Sukhoi Superjet 100 aircraft, as well as financial support, to launch a new national carrier, according to the report. Hungary has been without a national carrier since MALÉV Hungarian Airlines went bust in 2012. The parties began negotiations in October, and according to their estimates, Hungary’s GDP could be boosted by an additional €110 million a year if a national carrier was launched, hirado.hu reported. Evgeny Andrachnikov, the deputy CEO of Sukhoi’s civilian aircraft production, told hirado.hu that a Hungarian national carrier would provide a great opportunity for Sukhoiʼs Superjet 100 aircraft to show its worth. State secretary László Tasó said that Hungary supports any project that is in the interest of Hungary and its citizens.

Official: Some 850,000 benefit from workplace protection program in 2015

Nearly 850,000 Hungarians benefited from the government’s workplace protection program last year, according to data revealed on February 9 by National Economy Ministry state secretary Péter Cseresnyés, Hungarian news agency MTI reported. Approximately 326,000 people over the age of 55, 160,000 looking for their first job, 30,000 long-

Polish PM visits

Polish Prime Minister Beata Szydlo lays flowers at a memorial for Polish victims of Hungary’s 1956 Uprising in Lot 301 of the Új köztemető in Budapest, the place where the Soviets secretly buried the bodies of the leaders of the uprising. During her February 8 official state visit, Szydlo and her Hungarian counterpart, Prime Minister Viktor Orbán, announced agreements to build a dual-lane highway between the eastern industrial regions of Hungary and Poland and to strengthen existing railway connections. The two parties are also committed to launching direct flights between Hungary and Poland, to depart from either Warsaw or Katowice, Orbán said. (Photo: MTI/Zoltán Máthé)

term unemployed, 40,000 mothers with young children, and 290,000 people with low-level education benefitted from the program last year, Cseresnyés said. The program reduced participating employers’ payroll costs by HUF 135 billion, he added. The government provides tax cuts for employers and grants vocational training if they commit to establishing jobs for disadvantaged workers.

Hungary’s tax office recruits drones to crack down on cigarette smugglers

Hungary’s National Tax and Customs Authority (NAV) acquired drones through HUF 20 million in European Union funding to crack down on cigarette smugglers, Hungarian daily Magyar Idők reported on February 8. NAV is planning to employ heat cameras, night goggles, recording devices and also hovercrafts in the near future to detect smuggling activities, according to the daily. NAV spokesperson Alexandra Sárközi said the office needs to keep up with the technological developments, adding that with the application of drones the office will be able to track smugglers without them realizing it. The spokesperson noted that NAV seized more than 43 million contraband cigarettes with a market value of about HUF 1.7 billion last year, along with almost 70 tons of loose leaf tobacco.

Paks nuclear power plant output edges up to 15,834 GWh Hungary’s Paks nuclear power plant generated 15,834 GWh of electricity last year, 1.2% more than a year earlier, CEO

István Hamvas said in Budapest on February 5, according to Hungarian news agency MTI. The power plant met 36.2% of domestic demand for electricity and generated 52.7% of the national output. The plant’s revenue edged down 0.5% to HUF 172 billion. The plant’s four blocks operated at 90.4% of capacity. In January, the plant began switching its operational cycle from 11 months to 14 months, lowering downtime for maintenance. The cost of the modification will be HUF 2 bln, but the move will raise revenue by HUF 3 bln. A HUF 600 mln turbine modification this year should boost efficiency, raising output by 30 MW, Hamvas said.

Orbán: Schengen ‘a dying institution’; migration is top security issue

Hungarian Prime Minister Viktor Orbán called the Schengen zone “a dying institution”, and also said that migration is the number one public security issue in the EU, during a press conference in the Bulgarian capital on January 29. Following talks with Bulgarian Prime Minister Boyko Borissov in Sofia, Orbán said in a press conference that the “migration crisis” has so far been addressed as an economic and cultural issue, but that it must now be addressed as a security issue, according to the government’s web site, kormany.hu. Orbán was quoted as saying that the threat of terrorism is increasing while public security is deteriorating. Orbán singled out women and “the more vulnerable” as those most at risk and said that it is the duty of elected politicians to protect the citizen’s of their respective countries, kormany. hu reported. Orbán also highlighted what

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he perceives as a double standard in the treatment of Bulgaria, which is being excluded from the Schengen zone despite its exemplary performance throughout the “migrant crisis” in protecting its borders, kormany.hu reported. The question, Orbán added, is whether Bulgaria would even accept such an offer from “a dying institution”. At the same press conference, the Bulgarian prime minister said that real progress is only possible if the borders are closed until the current migrant crisis is resolved and that Europe must work together to establish rules and procedures, kormany.hu added.

Hungary. On the recording presented by Hadházy, someone explains that, typically, an applicant promises to win a tender for a municipality, so long as the applicant is later hired for realization of the project, nol.hu reported. “This is how applications take place today in Hungary,” the person on the recording says, according to nol. hu. “They come here and say we will get it done completely – we win it for you, and we bring everything here. If you say no, I’ll go to the next city. Because I have a quota I can share, and if not here, I go to the next city. That is unfortunately what happens behind closed doors.”

LMP: Recording details corrupt practices in handling EU funds

Orbán objects after Obama highlights U.S. opposition to statue of anti-Semite

Opposition green party LMP published a recording that it claims contains the voice of the current mayor of Szekszárd explaining to colleagues about the corruption involved in applying for European Union funding in this country, Hungarian online daily nol.hu reported on January 29. LMP spokesperson Ákos Hadházy said that the recording contains the voice of Rezső Ács, a member of the ruling Fidesz party and mayor of Szekszárd, and his current advisor Péter Máté, a former Fidesz MP, having a conversation at a party faction meeting in 2012, nol.hu reported. Hadházy, who has since switched parties, was also present at the meeting as a Fidesz MP at that time, Hungarian online daily index.hu reported. Nol.hu reported that the officials heard in the recording discuss how to handle applications for European Union funds in

After U.S. President Barack Obama made a speech highlighting American pressure to stop Hungary from erecting a statue of an anti-Semite, Prime Minister Viktor Orbán’s office issued a statement on January 28 saying that the prime minister “strongly objected” to America’s “ill-advised” interference in the issue. In a first address to the Israeli Embassy by an American president, given on International Holocaust Memorial Day on January 27, Obama said that, in opposing the statue of Bálint Hóman, the U.S. made it clear that erecting the statue would seriously impact bilateral relations, according to a report by the Jewish Telegraphic Agency. “When a statue of an anti-Semitic leader from World War II was planned in Hungary, we led the charge to convince their government to reverse course,” Obama told a gathering

Mohács burns anew A costumed reveler on February 9 looms in front of the traditional bonfire lit in the Busó carnival celebrations, which take place every year on the last day before Lent in the southern Hungarian town of Mohács. The centuriesold tradition with pagan roots was brought by Serbian immigrants, and now coincides with the Catholic calendar, but it was originally a way to herald the end of winter. Marchers wear demon costumes to scare away the spirits of winter and the coffin of winter is burned in the bonfire. (Photo: MTI/Tamás Sóki) at the embassy in Washington D.C., according to the JTA’s report. “This was not a side note to our relations with Hungary, this was central to maintaining a good relationship with the United States, and we let them know.” In a response posted on the Hungarian government’s web site, Orbán’s press office conceded that there had been U.S. opposition to a statue of Hóman, who made anti-Jewish laws in

Hungary in the World War II era, “but Prime Minister Viktor Orbán strongly objected to this behavior. In general, he said, pressure coming from abroad only hinders progress towards solutions to problems, and this was also exactly what happened in relation to the Hóman statue. The Prime Minister’s position is that an attempt of this nature by the American government was ill-advised.”

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State cuts to begin with 6,000 layoffs Cabinet Chief János Lázár has promised to reduce staff and rationalize administration. CHRISTIAN KESZTHELYI

Noting that roughly one million people are employed by the Hungarian state, Cabinet Chief János Lázár announced on February 4 that the government planned to lay off 6,000 of them by the end of this year. Lázár said layoffs at district and local government offices will be conducted in two phases, by July 1 of this year and January 1, 2016. The cuts, amounting to 15% of the 36,000 workers in district offices, are part of a rationalizing effort of government offices, according to Lázár, who said in late January that the government is planning the Cabinet Chief János Lázár during his reorganization or phasing out of more interview with MTI about the layoffs. than 70 state-supported institutions (Photo: MTI/János Marjai) and centrally financed agencies in “the spirit of reducing bureaucracy”. For example, Lázár has said that the new institution of the “Government “Reducing bureaucracy is aimed Window”, a one-stop office where citizens can deal with a broad range of at increasing the country’s paperwork, means that the 6,000 layoffs can be achieved in district offices without competitiveness.” a serious impact. According to Attila Juhász, a senior analyst at the Political Capital Institute, Austria or Germany, MTI reported. the changes that Lázár is talking about He said that because the 3.3 million may not mean a huge number of layoffs working in the private sector have to pay for the roughly one million working – but rather a rearranging of employees. “In the case of state institutions that for the state, it seriously reduces might be terminated, it is expected that Hungary’s competitive position. The employees will be moved to some other goal of these cuts is to ensure more state-employed position,” Juhász told efficient governance, if not huge budget the Budapest Business Journal. “The reductions according to Lázár, who operations of the public sector will hardly reportedly said that money saved through layoffs will be spent on raising go through any significant changes.” Juhász also suggested that the the salaries of those retained by 50%. layoffs being planned are more about As for those who will be laid off in improving the government’s image than the first round of 6,000 cuts, Lázár said anything. “Experience shows that cuts that with such low unemployment rates in bureaucracy are sometimes used by people could easily quit their jobs in governments in an effort to show that the public sector and find employment they are interested in saving public in the private sector. He said the money,” he said. “This has already government will give assistance to happened in the past in similar actions.” those who are leaving, such as programs for those voluntarily quitting their jobs or incentives to employers providing Only the beginning jobs for former public sector employees, But Lázár insists that he is serious, and MTI reported. that these cuts are only the beginning. In an interview with state-owned Next up are background institutions Kossuth radio, the cabinet chief said that serve ministries and state-owned that cutting the number of bureaucrats was not enough. Administration corporations, he said. “Reducing bureaucracy is aimed at costs must also be cut, and laws and increasing the country’s competitiveness,” regulations pertaining to the sector must he said in an interview with state news be simplified, according to reports. He mentioned construction and taxation as agency MTI. During an interview with state-owned areas where regulations are too complex, all-news channel M1, Lázár said that, and said that the legal environment while the public sector accounted for should be shaped so that easier access some 20% of all jobs in Hungary, that to European Union funds is provided, ratio was 13% in Slovakia, and 10% in according to MTI.

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Teachers, ministry at odds over administration Teachers insist that KLIK, the centralized body in charge of schools, must be dismantled, but the government appears adamant about maintaining the current administrative structure. CHRISTIAN KESZTHELYI

seems ready to give some ground. But according to the PSZ spokesperson, the demonstration is about a host of problems and a simple pay raise alone would not be enough. “If the demonstration we are planning to use as a tool of pressure does not have any result, then it is possible that we will go on strike,” she said.

UNICEO® organized its first Leaders Meeting in Budapest

BBJ_2403_news.indd 7

Monika Mantuano, commercial marketing manager at HP and Vice President of UNICEO Hungary. to greatly professionalize and improve its Members events and give a better visibility to our roles with regards to top management and the industry in Hungary.“ Debora Piovesan, Vice President for UNICEO International, noted the value that Hungary brings to the Network. “Hungary is an important area for UNICEO development in central Europe as Budapest is step by step climbing to the top of the best European cities to organize corporate events,” she said. “We strongly believe in the success of an Hungarian based UNICEO Network.”

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

Nationwide demonstrations were expected on February 13, as the teachers’ association demanded an end to the centralized education system and the ruling Fidesz party, which created the Teachers demonstrate in Budapest, above, and in Miskolc, right, on February 4. system, refused to scrap it. Although talks between the teachers’ association and the minister for human minister and his cabinet. A big part of Hungary from primary to tertiary level capacities were set for February 12, teachers’ complaints about KLIK is is one of the lowest of all OECD counties: neither side was expected to budge from that the body forces students to learn $5,564 compared to an average $10,220,” subjects that many educators consider the report noted, adding that spending on their main demands. “The teachers’ strike committee had unimportant. The increased number of education dropped from 13% to 11% from three professional negotiations with required classes are said to put a huge the 2008-10 period to the 2010-12 period. the representatives of the Ministry of burden on teachers and students alike, While they are mostly upset about Human Capacities in January, and had and academics say that more emphasis KLIK, the teachers are also looking for an informal discussion with Minister is put on memorization instead of pay raises, an area where the government of Human Capacities Zoltán Balog,” a analytical thinking. spokesperson for the Union of Teachers The new body has also limited the (PSZ) told the Budapest Business Journal. number of textbooks that students EXPERT OPINION “It has become clear that the government can use – a move that many frustrated is not willing to make changes to the textbook publishers said was designed education system. Therefore, the strike to ensure that a select group of committee called for a demonstration on government-friendly publishers got all the contracts. That criticism intensified February 13.” For its part, the government has said when the new textbooks came out, that it is willing to negotiate many issues replete with spelling errors and sections with teachers, but not the centralized containing what seemed to be politically structure of education. Prime Minister inspired interpretations of history and Viktor Orbán said on February 5 that modern society. With a January 21 event at the the education system had been a failure A study published in early February by Kempinski Corvinus Hotel UNICEO® in both financial and professional terms the Hungarian Institute for Educational before the government began its reforms Research and Development, which works (United Networks of International in 2010. He said the new system was for the Ministry of Human Resources, Corporate Event Organizers) the designed to reverse a trend of lower found that, in the long run, KLIK is an international association bringing student test scores and improve their obstacle for the education system. The together senior decision-makers in study said that KLIK unnecessarily academic results. charge of corporate events representing prevents institutions from making blue chip companies launched the decisions for themselves, that the level Populist fervor opening of its network in Hungary. of education centralization in Hungary The populist fervor behind the teachers’ is unprecedented in Europe, and that frustration with what they say is unneeded the system seems to have no advantages, As part of the development strategy, political interference in their work is according to the report. There is a the association leaded by Monika threatening to grow into the kind of anti- great deal of secrecy inside KLIK, its Mantuano, will organize several Fidesz sentiment not seen since the party operations are chaotic and the growing events in the country, most of them in first floated the idea of an internet tax amount of required documentation from Budapest. – and then backed away – in 2014. The teachers takes their time away from difference here is that the organization students, the study said. responsible for the centralized education Centralization is not the only problem. The first event, at the Kempinski system, KLIK, is already in place, and Lack of funding is also a big concern: Corvinus Hotel on January 21, brought officials seem loathe to completely abolish Along with opposing centralization, together more than 30 Hungarian teachers have also criticized the lack of the body. companies. The system built around KLIK was necessary school supplies, according to initiated by the government in 2010, at reports. Monika Mantuano, commercial marketing a time when the ruling Fidesz party According to the “Education at manager at HP and Vice President of was using its two-thirds majority in a Glance 2015: OECD Indicators” Parliament to rewrite the constitution report on Hungary published by the UNICEO Hungary said: ”This first event and pass a host of new laws that Organization for Economic Cooperation brought together Hungarian companies, strengthened the power of the central and Development in November, Hungary Members and future Members of government. As the party had done in spends considerably less on education UNICEO. It was the first of its kind in other areas of administration, Fidesz than most other OECD countries and our country and the kickoff meeting sought to establish a top-down structure expenditure levels have in fact declined for UNICEO development. We are for the education system, giving more since 2012. “Annual expenditure per convinced that UNICEO will contribute direct control over schools to the prime student by education institution in

2016. 02. 10. 19:40

2Business BBJ

WHO'S NEWS

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

Schoenherr Hetényi Budapest welcomes new attorney at law

EY Hungary welcomes new communications chief

Gábor Kordoványi has been appointed attorney at law at the Schoenherr law firm in Buda pest after spending nearly ten years with Réti, Antall & Partners PricewaterhouseCoopers Legal, according to a press announcement. Kordoványi, who graduated in 2006 and completed his MBA in 2015 in Germany, specializes in corporate law, mergers and acquisitions and financing related securities. “Schoenherr is a powerhouse in the CEE and Hungarian M&A markets. I was drawn by the opportunity to be part of this dynamic team and work on exciting regional and international projects,” said Kordoványi. Kinga Hetényi, the firm’s managing partner believes Gábor will be a valuable asset to a strong team and will help in tackling the continuously increasing and broadening workload.

Stefanie Orsolya Ludvig has been appointed communication chief of EY Hungary, responsible for brand communication and the planning and controlling of the firm’s PR and marketing activities, according to a press release issued on February 8. Ludvigʼs duties will focus on the marketing and communication support of the various branches of EY Hungary, with plans to increase the reach of EY’s brand across the country. With 20 years of experience in the PR field, Ludvig worked for Siemens Hungary and prior to that as the director of her own communications and marketing agency. She has been a presidential member of the Business Council for Sustainable Development in Hungary (BCSDH) since 2013.

Jeantet Budapest expands M&A team

Weil Budapest welcomes new counsel

The Budapest office of Jeantet law firm has expanded its team with the addition of attorney Kornél Szabó to help augment its M&A and competition practices. Szabó has more than ten years’ experience working at magic circle law firms, in the fields of M&A, competition and state aid, including JEREMIE venture capital investments, Jeantet said. “Kornél’s expertise and position on the Hungarian market enables our office to reinforce itself in the fields of competition law and state aid but also to further develop our Hungarian client base,” said François d’Ornano, head of Central European activities at Jeantet. French law firm Jeantet opened its Budapest office in November 2015, and currently operates with a team of 12 covering corporate transactions and M&A, real estate transactions, restructuring, competition and state aid, labor law, data protection, e-trade, litigation, finance and banking, and insurance law.

Andrékó Kinstellar Law Firm expands advisory team Andrékó Kinstellar Law Firm has expanded its advisory team with the addition of locally recognized senior

BBJ_2403_biz.indd 8

Zuhair Awad, left, and Sameer Hamdan onsite at the Párizsi Udvar.

Mellow Mood CEOs named among most influential people in Hungarian tourism

Tourism Ltd. has ranked the owners and CEOs of Mellow Mood Group, Sameer Hamdan and Zuhair Awad, among the 50 most influential persons in the Hungarian tourism industry for the third year in a row, according to a press release issued on February 4. The list was compiled by a jury from Tourism Ltd. and 20 members of professional organizations who voted for the most influential persons in the domestic tourism sector, based on their professional work, the press release said. During the selection process, not only the size and revenues of the companies were taken into consideration, but also their influence on the tourism sector and their foreign and domestic reputation. The results were published at the 24th Season Opening Tourism Gala and Award Ceremony by Tourism Ltd. Hamdan and Awad, whose firm runs the Buddha Bar Hotel in Budapest, arrived in Hungary more than 20 years ago, as students, and soon after opened their own hostel. They now operate a large group of accommodation businesses in the city. The past few years for Mellow Mood Group were not only about growth and stabilization, but also about planning and preparing for new developments, the press release said. The owners and CEOs of Mellow Mood Group said they believe that their success is due to their hard work – and the work of their employees. The hotel group is currently involved in overseeing restoration of another important historic building in the capital. Construction on the Párizsi Udvar is underway to transform this landmark into a luxury hotel with conference facilities, a lavish penthouse suite, a bar on the top floor with panoramic views of Buda, as well as cafés, restaurants and shops on the ground and first floors.

lawyers to its real estate practice, in response to the expansion of the local real estate market. Team leader Dr. Mónika Frank joined as managing associate formerly of Dentons/White & Case, while the practice is further enhanced by senior associate Dr. Gábor Gömöri, who previously worked as legal counsel for the TriGránit Group, and as a lawyer at Baker & McKenzie,

according to a press release. To further expand Andrékó Kinstellarʼs M&A and private equity focused practice, Dr. Ákos Mátés-Lányi, formerly of Dentons/ White & Case, has joined the corporate practice group as managing associate. Dr. Ferenc Dávid also joined Andrékó Kinstellar as an associate, with a focus on acquisitions, as well as corporate and employment matters.

László Nanyista.

Pál Szabó.

The Budapest office of law firm Weil, Gotshal and Manges LLP carried out two promotions at the beginning of this year, welcoming László Nanyista and Pál Szabó to counsel, according to a press statement. Nanyista, was promoted to counsel as of January 1. He has been practicing for more than 18 years and is currently in the complex commercial litigation and international arbitration practices. Szabó was also promoted to counsel at Weil as of January 1. He is in the mergers and acquisitions practice and covers all types of corporate and commercial transactions with significant cross-border and domestic M&A and joint ventures experience. With more than 12 years of experience, Szabó leads the employment practice of the Budapest office and has advised clients on collective redundancies, benefits and incentive programs, share incentive schemes, as well as both domestic and cross-border labor-law related transactions.

2016. 02. 10. 19:40

www.bbj.hu

2 Business

Budapest Business Journal | Feb 12 – Feb 25, 2016

COMPANY NEWS Richter expects 5% decline in revenue

Hungarian drugmaker Gedeon Richter foresees a 5% drop in its revenue this year, calculated in euros, CEO Erik Bogsch said on February 9 at a press conference during which the company presented its Q4 earnings report. According to Bogsch, the company projects a decline in sales in Ukraine and other CIS countries, as well as in Eastern Europe and the United States, however, he expects higher turnover in Western Europe, China and Latin America, according to Hungarian news agency MTI. Calculated in rubles, Richter’s revenue in Russia could edge up, despite the weakening of the currency, which is expected to have a significant impact on Richter’s results, Bogsch said. He added that last year’s results were excellent, helped by higher turnover, lower costs, narrower financial losses and a low base.

IKEA sales up 14.6% in Hungary in 2015 Sales at the Hungarian unit of Swedish furniture giant IKEA were up 14.6% in its financial year ending August 31, as compared to the previous period, IKEA Lakberendezési managing director Marek Feltl said on February 4, according to Hungarian news agency MTI. During the period IKEA had revenue of HUF 47 billion, Feltl said, adding that sales grew at approximately the same pace as in the preceding period. IKEA is targeting growth exceeding 10% in the following period, he added. The managing director noted that IKEA is building its third store in the country, through an investment of HUF 16.8 bln. The 34,000 sqm store in the south of the capital is expected to open in the spring of 2017, MTI said.

Zwack profit slips on health tax, base effect

After-tax profit of Zwack Unicum, Hungary’s best known spirits maker, fell 12% to HUF 2 billion in Q1-Q3 of its business year ending March 31, an earnings report released on February 3 shows. Profits fell year-on-year following the introduction of a public health product tax and a decline in revenue. Gross sales dropped 6% to HUF 18.3 bln, but Zwack noted that sales spiked in the base period as trading partners rushed to stock inventories before the introduction of the public health product tax. The last quarter of the 2015/2016 business year “promises to be better than the same period last year”, Zwack said in the report. Zwack paid a little more than HUF 1 bln on the public health product tax in Q1-Q3. Sales net of taxes dropped almost 8% to HUF 10.7 bln. Material cost of goods dropped 11% to HUF 4.5 bln. The gross margin came to HUF 6.2 bln, down 5%. Zwack said domestic sales fell almost 8% to HUF 9.6

BBJ_2403_biz.indd 9

bln. Export sales dropped 7% to HUF 1.1 bln. Zwack had total assets of HUF 11.9 bln at the end of 2015, down 16% from a year earlier. Non-current liabilities came to just under HUF 400 million.

European Commission OKs Hungarian state aid for Audi Following an in-depth investigation, the European Commission said on February 1 that €133 million in support from the Hungarian government for Audi Hungaria Motor Kft. to expand its plant in Győr was in line with European Union rules, Hungarian news agency MTI reported. The EC said that Audi Hungaria invested a total of €1.2 billion in a fully integrated production plant for passenger cars at its existing facility, and this expansion is expected to create 2,100 new jobs at the plant, which is located in a disadvantaged region of Hungary where the GDP per capita is far below the EU average, MTI reported. The EC determined that the area is entitled to benefit from aid to encourage investments under the Hungarian regional aid map applicable at the time of granting the aid, MTI said. According to the commission’s decision, the state aid was necessary for the project in Győr to proceed, as the aid merely compensated the company for additional investment costs incurred from the project, MTI reported. “The positive effects of the project on regional development clearly outweigh any distortion of competition created by the aid,” the EC said.

25% with the purchase, according to the statement. After receiving all supervisory approval, the company expects the takeover to be wound up by the end of the year, MTI reported. OTP did not disclose the purchase price in the statement. Retail-focused AXA Bank has been present in Hungary since 2009, MTI said.

Fairfax Financial Holdings unit takes over QBE branch in Hungary

MOL to focus on assets not acquisitions in light of oil slump

Colonnade Insurance, a member of Canada’s Fairfax Financial Holdings, has opened a branch in Hungary and taken over the local business of QBE Insurance, Hungarian news agency MTI reported on February 3. QBE’s local branch said late in 2014 that its Australian owners had signed an agreement to sell the business to Fairfax. QBE entered the Hungarian market in 1998, when it acquired travel insurer Atlasz. Colonnade sells asset and accident insurance, reinsurance and investment products at branches in Czech Republic, Slovakia and Ukraine, in addition to Hungary.

OTP inks purchase of AXA’s Hungarian unit

Hungarian OTP Bank said on the official website of the Budapest Stock Exchange that it had signed an agreement with AXA Bank Europe SA to purchase the business unit of AXA Bank Hungary, Hungarian news agency MTI reported on February 3. Under the agreement, the Hungarian bank will take over the corporate portfolio of the bank, as well as employees, credits and savings, MTI reported. OTP expects its mortgage portfolio to increase by approximately

State funds Bosch expansion

Minister of Foreign Affairs and Trade Péter Szijjártó, right, shakes hands with Javier González Pareja, CEO of Bosch Group’s Hungarian unit, on February 10. The two were at a press conference in Budapest to announce that Germanowned automotive industry supplier Bosch Group is expected to invest HUF 19 billion at its Hungarian plant in Hatvan, eastern Hungary, with a HUF 4.7 bln nonrefundable grant from the state. Szijjártó said that the investment is expected to create about 600 workplaces and that it will allow Bosch in Hungary to launch the production of high-tech products, such as central control units for newgeneration electric and hybrid cars, new types of mid- and long-range radar and different types of sensors. (Photo: MTI/Tamás Kovács)

Hungarian oil and gas company MOL Nyrt. will reduce investments abroad and instead focus on assets closer to home in order to ride out the significant drop in oil prices, Berislav Gaso, the head of the upstream division at MOL told Bloomberg in an interview on February 3. In light of the drop in oil prices, MOL is remaining conservative and leaning towards assets and lowering spending in Hungary and Croatia, which account for 80% of the group’s portfolio, Gaso told Bloomberg. “Our priorities for this year are focusing on what we have, extracting value from the assets,” Bloomberg quoted Gaso as saying, adding: “I like barrels but I like dollars even more and in a $30 environment it is all about dollars when you operate in upstream.” In the past two years, MOL, which is present in 40 countries, has expanded its operations into low risk areas such as the U.K.’s North Sea basin and in Norway where it won four new licenses last month, in addition to operations in Pakistan and Iraq. Details on MOL’s output and investment targets including details of the write-down on its North Sea and Kurdistan assets will be published in its financial report to be released on February 24. Oil prices are at

their lowest in more than a decade and this slump is forcing many industry players to rethink their global investment strategies.

Two ibis Styles hotels to open in Hungary

The Orbis Hotel Group, which has taken over the AccorHotels brand in Central and Eastern Europe, including 17 hotels in Hungary, is set to open two ibis Styles hotels in Budapest in April, according to a press release issued by the company on February 4. Mercure Budapest Metropol will be completely renovated to become ibis Styles Budapest Center, with 130 rooms featuring retro computer games, street art and contemporary installations, according to the release. The Mercure Budapest Duna Hotel will also be renovated and transformed into ibis Styles Budapest City, centered around a bike theme, the statement said. “Hungary is a very promising market with great potential, one of the key markets in the region and an important element of our development strategy. With the arrival in Hungary of ibis Styles, a dynamic and well-known international hotel brand, we are aiming to bring innovation and a new hotel experience to guests, offering a unique design and atmosphere, relaxed, friendly service and welcome, where guests can feel the conviviality and the local touch of the city,” said Gilles Clavie, president and CEO of Orbis Hotel Group. The ibis Styles hotels are being marketed as an affordable brand with all-inclusive packages. The hotels are located in city centers around the region, and each has its own design. The brand’s network boasts 283 hotels in 25 countries.

2016. 02. 10. 19:40

REAL ESTATE NEWS

2 Business

New office space in the pipeline in Budapest Property

Váci Greens B

Nordic Light Phase 1

Nordic Light Phase 2

V17

Corvin IV

Váci1

Graphisoft Office Park - SAP bldg Garden III

GLA (sqm)

25,604

6,600

19,600

13,000

25,000

5,700

8,000

18,510

Delivery year

2016

2017

Delivery quarter Q1

Current status

U/C

Developer

Atenor

Skanska

WING

Futureal

DVM

Graphisoft

GRT

Source: CBRE

Analysis served sunny-side-up at CBRE’s annual breakfast

In its annual review of the commercial market, the real estate firm saw improvements in all sectors.

Where the Hungarian real estate investments came from in 2014-15

GARY J. MORELL

The Hungarian commercial property market closed a successful year in 2015 as investors completed almost €750 million in acquisitions, surpassing last year’s investment volume by 60%, Lóránt Varga, managing director of CBRE Hungary told the annual CBRE breakfast on January 27 at the firm’s Budapest headquarters in the Eiffel Palace. The volume of office market pre-leases increased to 121,000 sqm – a level not seen since 2009, while at the same time there are few vacant offices in Budapest. More industrial properties are being built in the regions, notably in major industrial centers where there is virtually no empty space. As retail turnover increases, demand for retail space is increasing significantly, and 98 new stores opened in 2015 on a total of 35,200 sqm within the 620,000 sqm of modern retail space monitored by CBRE in Budapest. Offices were the most popular investment area last year, the segment accounting for 50% of turnover, but industrial properties also represented a robust proportion of deals. The composition of investors has changed significantly since the crisis: While the U.K. and Germany/Austria were the largest investors in 2006-07, U.S. investors were the most significant players in 2014-15, along with Hungarian investors who have now moved into second place. The German open-ended real estate funds that were active before the crisis remained absent in 2015. Low development activity has also reduced the potential range of investment products and therefore more investors are turning to older buildings with value-add potential. “The high interest is sustainable and we expect further growth in investment volume this year: We could get close to the €1 billion mark,” said Gábor Borbély, head of research and valuation at CBRE Hungary. “An increasing pool of investors are making arguments in favor of acquisitions in Budapest with reference to strong occupational fundamentals. On the other hand, the low development pipeline is making some investors nervous with regard to whether they are able to enter the market.”

BBJ_2403_biz.indd 10

www.bbj.hu

Budapest Business Journal | Feb 12 – Feb 25, 2016

C&W says it remains market leader as Budapest gets busier Following the merger of Cushman & Wakefield and DTZ in 2015, C&W was able to retain its market leading position in the Hungarian office market sector for the fourth consecutive year, the company said on February 3. Last year the company successfully closed 117 transactions, a record of 89,000 sqm in lease transactions, C&W said in a press release. According to C&W, the Budapest office market continued the momentum created in 2014 into 2015, with another record year for take-up. Tenants committed to nearly 538,000 sqm of office space, reflecting a strong, 16% gain on 2014, which was the previous record year for take-up, the company said. This increase in demand, and the lack of new supply being delivered to the market further reduced the vacancy rate to a pre-recession low of 12.1%, creating lower vacancy rates in Budapest than in Prague or Warsaw, C&W said. “There is no doubt that 2015 surpassed everyone’s expectations in terms of take-up,” David M. Johnston, partner, head of office agency said. “We expect to see the market’s positive momentum continue into 2016, as occupational activity remains relatively robust, supported by very little new speculative supply being released to the market.”

Immofinanz finalizes portfolio sale to Blackstone

Source: CBRE

Shrinking vacancy rates

Growing office market demand and low development volume in recent years has resulted in a fall in vacant space to levels not seen since the beginning of 2008; in this regard, Budapest “overtook” its regional competitors Warsaw and Prague, where current oversupply undermines any further decrease in vacancy. The almost 100,000 sqm of new supply scheduled for this year will not influence the declining vacancy rate, as 57% of the space being built has already been preleased. The vacancy rate has declined in the past three years across all of the 20 office submarkets surveyed by CBRE. The current Budapest average is 12.1%, 4.1 percentage points lower than a year earlier. In the post 2014 period, industrial development in eastern Hungary dominated the regions. According to CBRE research, in addition to Budapest, with a supply of two million sqm of industrial space, there is 530,000 sqm in Tatabanya, 480,000 sqm in Győr, 415,000 sqm in Székesfehérvár, 310,000 sqm in Nyíregyháza and 210,000 in Kecskemét. The vacant stock ratio is marginal in most of the pan-regional cities – such as Tatabanya, Győr and Székesfehérvár – and usually it is only a major company

leaving that causes vacancy. In the greater Budapest area, the vacancy rate sank by 11 percentage points over the past two years, due to strong tenant demand and a complete lack of new speculative developments – and now stands at 10.6% according to Gergely Baka, head of industrial agency at CBRE. The robust growth of household consumption – by Hungarian standards – that occurred in recent years also resulted in strong demand and supply growth in the retail sector, according to Anita Csörgő head of retail at CBRE Hungary. The new stores that opened in 2015 would fill-up a mid-sized shopping center, as CBRE registered nearly 100 new store openings by 79 individual brands, of which 14 were new entrants to the Hungarian market. Nearly half of the new stores were opened by fashion brands, followed by furniture and sporting goods stores. With the exception of electronic stores, all other sectors increased their retail footprint. Retailer activity has also increased in the prime high-street locations in downtown Budapest, where CBRE registered 12 new store openings on a total area of 4,300 sqm.

Immofinanz successfully finalized the sale of its logistics portfolio, including five properties in Hungary, to Blackstone, which is integrating all its assets into its European logistics platform Logicor, according to a press release issued on February 2. Blackstone bought the portfolio, which was valued at €536 million, less €28 mln for the cost of realizing three projects valued at €305 mln, after the repayment of relevant loans. Some €245 mln was transferred immediately, while the remainder of the purchase price will be transferred in October. Blackstone acquired all 36 of Immofinanz’s logistics investments through the purchase: approximately one million sqm, in Germany (24), Hungary (five), Romania (three), Poland (2), Slovakia (one) and Russia (one).

Prologis inks leases for a total of 98,000 sqm in Hungary Global industrial real estate developer Prologis signed six lease agreements amounting to 98,000 sqm in five of its parks in Hungary, a sign of rising demand the company said on February 1. The firm said recent transactions include a lease renewal with Geodis for 27,800 sqm in Prologis Park Budapest-Budaörs; a renewal with Schneider Electric for 24,800 sqm in Prologis Park BudapestSziget; a new lease with a global leader in design, manufacturing, distribution and aftermarket services for 16,000 sqm in Prologis Park Budapest M1; a renewal with a global healthcare leader for 12,300 sqm in Prologis Park Budapest-Harbor; a renewal with LGI Logistics Group International GmbH for 10,700 sqm in Prologis Park Budapest M1; and an expansion with a logistics provider of 6,000 sqm in Prologis Park Budapest-Batta, where the customer now leases 28,600 sqm in total.

2016. 02. 10. 19:40

GRUPPO T.F.M. KFT. 1068 Budapest, Király u. 102.

1ST DISTRICT

3RD DISTRICT

7TH DISTRICT

5TH DISTRICT

12TH DISTRICT

15TH DISTRICT

86 SQM – 3 ROOMS + HALL, ATTILA STREET

105 SQM – SHOP, INNER-ÓBUDA

64 SQM – 3 ROOMS, SAS STREET

141 SQM – 3 ROOMS, RÁKÓCZI STREET

220 SQM – 6 ROOMS, MÁTYÁS KIRÁLY STREET

180 SQM – 6 ROOMS, PESTÚJHELY

At the foot of the Buda Castle, nice view over the Vérmező Park, this very spacious and bright apartment that needs renovation has separate rooms and 2 balconies.

This very spacious, well divided shop has entrance from the street , 2 main rooms, private gas heating and it is located on a busy street.

This apartment with separate rooms is located on a high ﬂoor of an elegant, renovated building, near Deák Square and St. Stephen’s Basilica.

This very spacious and bright, street facing apartment has 2 separate bedrooms, living room, ample dining room and balcony. It is located close to the Erzsébet Circuit.

On the Sváb Hill, next to forest, this duplex part of a house has panorama from the balcony over the Buda Hills, 2 bathrooms, private garden and garage.

This two storey family house built on 540 sqm of lot, beneﬁts of two bathrooms, terrace, two car garage and a well kept front garden, it is located in a quiet side street.

36.800.000 HUF

45.000.000 HUF

95.000.000 HUF

39.500.000 HUF

39.990.000 HUF

+36.1.201.0403

2ND DISTRICT

7.900.000 HUF

+36.1.430.1403

3RD DISTRICT

+36.70.3156.116

5TH DISTRICT

+36.1.351.0446

9TH DISTRICT

+36.1.789.2846

12TH DISTRICT

+36.70.398.8754

15TH DISTRICT

61 SQM – 3 ROOMS, SZÁSZ KÁROLY STREET

1412 SQM – LOT, CSILLAGHEGY

78 SQM – 3 ROOMS, BALATON STREET

112 SQM – 3 ROOMS, RÁDAY STREET

240 SQM – 5 ROOMS, MÁTYÁS KIRÁLY STREET

163 SQM – 9 ROOMS, RÁKOSPALOTA

This completely renovated, loft style apartment has garden facing balcony, 2 bathrooms, and it is located in a quiet street.

This lot has beautiful panorama and possibility to build a 4 apartment condominium. Electricity and water on it, gas is in the street. It is located in a very quiet, green area.

This renovated, sunny apartment beneﬁts of a fully ﬁtted kitchen, 2 bathrooms, sauna, air conditioning system, complete furniture and balcony. It has been renovated by an interior designer.

In a nice pedestrian street, this completely renovated, spacious apartment has separate rooms, 2 bathrooms, balcony and it is situated in a period building with elevator.

Beautiful panorama from the 30 sqm of terrace, this duplex part of a house has 2 separate entrances, separate bedrooms, 2 bathrooms, private garden and garage.

This completely renovated, two storey family house built on 420 sqm of lot, beneﬁts of solar heating system, spacious kitchen, 2 bathrooms, well kept garden and two car garage.

29.999.000 HUF

71.900.000 HUF

48.990.000 HUF

115.000.000 HUF

46.000.000 HUF

35.800.000 HUF

+36.1.201.0403

2ND DISTRICT

+36.1.430.1403

3RD DISTRICT

+36.70.3156 087

6TH DISTRICT

+36.1.720.2433

10TH DISTRICT

+36.1.789.2846

13TH DISTRICT

+36.70.398.8754

DUNAKESZI

82 SQM – 3 ROOMS, KAPY STREET

294 SQM – 7 ROOMS, MÁTYÁSHEGY

76 SQM – 3 ROOMS, RÓZSA STREET

49 SQM – 2 ROOMS, HARMAT STREET

38 SQM – 2 ROOMS, REITTER FERENC STREET

32 SQM – 2 ROOMS, DUNAKESZI

This top ﬂoor, very sunny and well divided apartment beneﬁts of big windows, separate rooms, balcony, garage and it is situated in a well maintained building.

Nice panorama over the city, this three storey family house beneﬁts of 2 bathrooms, big terrace, nice garden with swimming pool and garage.

This renovated apartment has 2 separate bedrooms, living room, fully ﬁtted kitchen, 2 bathrooms, balcony and it is situated in a nice period building, next to Andrássy Boulevard.

This renovated, well divided, street facing, high ﬂoor apartment is located a few steps from the very green Óhegy Park.

In a new building with elevator and playground in the courtyard, this street facing, bright apartment has living room with open kitchen, separate bedroom and bathroom.

This park facing, very bright apartment in good condition has private gas heating and it is situated in a well maintained building, in Pest county, 20 minutes drive from Budapest.

49.900.000 HUF

165.000.000 HUF

34.800.000 HUF

14.900.000 HUF

18.300.000 HUF

10.900.000 HUF

+36.1.376.6080

2ND DISTRICT

+36.1.430.1403

4TH DISTRICT

+36.1.351.0446

6TH DISTRICT

+36.70.646.6818

10TH DISTRICT

+36.70.701.2348

13TH DISTRICT

+36.27.642.429

DUNAKESZI

108 SQM – 5 ROOMS, ÜRÖMI STREET

60 SQM – 2 ROOMS + HALL, LAKKOZÓ STREET

108 SQM – 4 ROOMS, LÁZÁR STREET

132 SQM – 7 ROOMS, ÁLLOMÁS STREET

63 SQM – 2 ROOMS, VISEGRÁDI STREET

47 SQM – 2 ROOMS, DUNAKESZI ALAG

This two storey family house has 70 sqm of beautiful garden, very sunny living room with open kitchen and two separate bedrooms. Good connection to public transport.

This very sunny, street facing apartment in good condition has separate rooms and it is situated in a well maintained building, in a quiet area.

Next to the Opera! This apartment is in good condition and it is situated within a period building, only a few steps from the St. Stephen’s Basilica.

This completely renovated, duplex apartment beneﬁts of 2 kitchens, 2 bathrooms, private gas heating, air conditioning system and alarm system.

This high ﬂoor apartment beneﬁts of separate rooms, private gas heating and it is situated in a nice period building with elevator.

In a new building with elevator, this sunny apartment has open kitchen, balcony, geothermal heating system, air conditioning system and a parking lot in the garage.

49.900.000 HUF

16.900.000 HUF

53.700.000 HUF

39.900.000 HUF

23.990.000 HUF

27.800.000 HUF

+36.1.336.1706

2ND DISTRICT

+36.1.782.7275

4TH DISTRICT

+36.70.3156 087

7TH DISTRICT

+36.70.646.6818

44 SQM – 2 ROOMS, ÚJPEST CENTRE

46 SQM – 2 ROOMS, KIRÁLY STREET

61 SQM – 3 ROOMS, IRINYI JÓZSEF STREET

This completely renovated, very spacious and sunny, top ﬂoor apartment has terrace, private garden and it is situated in a small condominium, next to forest.

In a new building with elevator, this street facing apartment has fully ﬁtted open kitchen and terrace. It is located in the heart of the district.

This sunny apartment faces into the newly renovated Gozsdu courtyard with all the amenities of the area (bars, restaurants, terraces).

This street facing, high ﬂoor apartment beneﬁts of separate rooms, balcony and it is situated in a building with elevator. Close to the Budapest University of Technology and Economics.

62.500.000 HUF

19.900.000 HUF

2ND DISTRICT

+36.1.782.7275

5TH DISTRICT

24.900.000 HUF

+36.70.3156 087

7TH DISTRICT

22.800.000 HUF

11TH DISTRICT

57 SQM – 3 ROOMS, BALATON STREET

106 SQM – 3 ROOMS, JÓSIKA STREET

97 SQM – 3 ROOMS, TÓTH ÁGOSTON STREET

Beautiful panorama over the Buda Hills, this top ﬂoor apartment beneﬁts of 2 bathrooms with windows, 2 big terraces and it is situated in a building with well kept common garden.

We offer a completely renovated, furnished apartment with a little balcony in a beautiful, renovated building, near Jászai Mari Square and Margaret Island.

Next to Szenes Hanna Park, this very spacious, street facing apartment has separate rooms, 2 bathrooms and it is situated in a period building with renovated inner facade.

This family house that needs renovation built on 510 sqm of lot, has private gas heating, terrace, garage and it is located in a family house area.

84.990.000 HUF

31.900.000 HUF

34.900.000 HUF

37.900.000 HUF

+36.70.3156.116

+36.1.351.0446

WELCOME

+36.1.720.2433

121 SQM – 4 ROOMS, DETREKŐ STREET

+36.1.336.1706

+36.27.642.429

11TH DISTRICT

97 SQM – 3 ROOMS, KURUCLESI ÚT

+36.1.376.6080

+36.70.701.2348

+36.1.720.2433

ARE YOU SEARCHING FOR APARTMENT?

WWW.TECNOCASA.HU CONTACT US: INFO@TECNOCASA.HU

EACH AGENCY INDEPENDENTLY OWNED AND OPERATED. • THESE OFFERS ARE VALID, TILL THE APARTMENTS ARE SOLD. • THESE INFORMATION DO NOT CONSTITUTE A CONTRACTUAL ELEMENT.

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2016. 02. 10. 19:40

REAL ESTATE NEWS

2 Business

www.bbj.hu

Budapest Business Journal | Feb 12 – Feb 25, 2016

CEU BUSINESS SCHOOL

CSOK housing support could help build energy efficiency

The government’s plan to support the development of new housing should include measures to encourage the construction of energy-efficient homes. The unprecedented drive to reduce utility bills for household consumers in Hungary resulted in a price drop of 25%. The aftermath of the “war on private utilities” leaves the Hungarian government dealing more closely with consumers, through the establishment of the First Public Utilities Company (ENKSZ), which took over the task of selling gas to households in Hungary from the private utilities. Now the Hungarian state needs to move from acting as a supplier of household energy services to a manger of households’ energy demand. The establishment of the Family Housing Allowance scheme (CSOK) in Hungary provides an opportunity to

Michael LaBelle CEU

Sergi Moles Grueso build a sustainable energy system for future generations – if modern energyefficient building practices are made a condition of qualifying for housing support under the program. The introduction of the European Union’s new energy efficiency standards (NZeB) offers the potential to significantly reduce homeowners’ energy bills. Implementation of these standards is scheduled for the end of 2018 for public buildings and 2020 for other buildings, including residential. Failure to institute modern EU energy efficiency requirements in the projected building wave of family homes under the CSOK program will keep energy

NOT KNOWING LAB WORKSHOP 03.03. 2016. Design Terminal, Budapest

The Art of Turning Uncertainty into Opportunity Join us for a highly interactive and experiential one-day workshop with Steven D’Souza, co-author of the award winning book “Not Knowing”! We will focus on how to lead yourself and others effectively in volatility, uncertainty, complexity and ambiguity. The workshop is suitable for both individuals and teams. It is a must for all those going through change and it is also suitable for specialists who are moving into a role that requires them to go beyond their area of expertise, and all who want to approach or help their clients approach the unknown as a place of opportunity.

The Hungarian energy system has never been financially sustainable. Even under communism, lignite-coal-fired power plants were money losers. bills high and repeat the shortcomings of the “panel house” program of low-cost, high-rise housing from the communist era. Cheaper gas and electricity are hard to maintain under the Hungarian energy system. It is better to accelerate EU energy-efficient building standards for new homes qualifying for CSOK money and VAT rebates. The Paks nuclear power plant heralded an era of subsidized Soviet technology, and “cheap” Soviet gas was once shipped here in exchange for Hungary building the gas supply pipeline. In 1994, MOL lost HUF 1.4 billion on Hungary’s gas import bill. In 2004, when E.ON purchased the country’s gas supply assets, the company took over HUF 150 bln in debt. In 2013, when the Hungarian state – through MVM and the Hungarian Development Bank – “bought” back the assets and debt, they held a negative net worth of as much as HUF 355 bln. Now the decommissioning fund for Paks will likely be tapped to subsidize electricity consumption. New EU building standards and EU funded retrofit programs hold the potential to truly reduce Hungary’s future gas bills.

Office market already going green

The Hungarian office market exemplifies the long-term solution for high energy bills. According to Colliers International, 26-27% of Budapest office stock is green accredited. Previous savings in energy costs amounting to 10-20% are projected to have increased to 30% in 2015. Office buildings with green accreditation, such as BREEAM, LEED and DGNB, deliver an average rental price of 6% more than

non-accredited buildings, along with higher occupancy rates and 16% higher sales prices. More notable is the impact buildings have on national energy consumption. In Hungary, according to the Ministry of National Development, buildings represent 40% of the primary energy consumption, with residential buildings accounting for 60% of this wedge. Private office owners are saving both money and energy; homeowners should also be able to realize these savings. The Hungarian government has already committed to the EU to renovate 700,000 residential buildings and 2,400 public buildings by 2020. Conditional lending on energy efficiency standards for the CSOK program and the VAT rebate for new dwellings will speed up energy efficiency as a main component of Hungary’s energy strategy. Improved standards will also reduce the country’s energy imbalance – which is significant. Improving energy efficiency in the Hungarian building sector requires both government action and private initiatives. The Budapest office market represents a “green star” and shows the financial benefit of reducing energy consumption. Qualification for both CSOK and the VAT rebate should be dependent on higher energy efficiency standards. Instead of saddling the children who will grow up in CSOK houses with more energy debt, the government should begin to build them a sustainable low-cost energy system. Michael LaBelle is an Assistant Professor at the Central European University (CEU) Business School and the Department of Environmental Sciences and Policy. Sergi Moles Grueso is a PhD Candidate in the Department of Environmental Sciences and Policy. This column is part of a continuing series of opinion columns from experts at the CEU Business School in Budapest. The opinions stated here do not necessarily reflect those of the Budapest Business Journal.

Steven D’Souza international executive educator, coach, advisor, speaker and bestselling author

Further information and registration on Eventbrite:

https://notknowingbudapest.eventbrite.com

Organized by: od partner

BBJ_2403_biz.indd 12

2016. 02. 10. 19:40

3Special Report BBJ

Office equipment Smart offices

ď€´ 14

Office design, more than the bottom line ď€´ 16

Offices that run themselves

Office automation is about more than just desktops, as computers take over every aspect of the work space. We review the challenges of running an office in Hungary.

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2016. 02. 10. 19:51

www.bbj.hu

Budapest Business Journal | Feb 12 – Feb 25, 2016

Smart managers get help from smart offices New technologies make it possible to provide more comfortable working environments while improving efficiency. Local providers explain the benefits of making a workplace more intelligent. ANIKO FENYVESI

The typical office is in use at least eight hours a day, and often much longer, so it makes sense that it be adapted to take advantage of existing technologies for controlling its environment. Smart offices facilitate the working processes by helping to create a habitat that is not only comfortable for those functioning within it, but is also energy efficient. In fact, cost is the main motivating factor for installing a smart system, either at home or at the office, according to László Kovács, CEO of Smart Home Magyarország. Although his company name suggests that he focuses on homes, Kovács says that about 10% of his clients are now approaching him in search of smart office solutions. While the concept of smart homes has existed in Hungary for more than ten years, in varying degrees of sophistication, the idea of smart offices only caught on in the last couple of years. The difference between the two systems is apparently negligible. “A 12-story office building is no more complicated to outfit than a family home,” says András Schmidt, owner of smart system engineering company Verdom. “If you write a program for a given office you can easily copy and paste that system into all other office interfaces.” There is a common misconception, however, that if you can control it with your smartphone or tablet then any device you install in your office is part of the smart system, whether it is the printer that notifies you when ink is running low, or the coffee maker that you can control remotely. But these are merely island systems; although smart in their own right, they cannot be fully integrated into your smart system, and nor do they need to be. “What makes a building smart is when all the systems work together: when my thermostat that controls the temperature can also control my blinds, and the sensors that control my lights also control my heating. It’s important that these components be completely integrated into the smart system,” explains Schmidt, who is also the creator of the Etalon system, which measures environmental data, such as temperature, humidity and air quality, including CO2 levels. A truly smart configuration is a system that is enhanced through the presence of other components. For

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The popular brand Loxone tries out its applications at the company’s ‘basecamp’ in Kollerschlag, Upper Austria. example, during a hot summer’s day it’s essential that the blinds be drawn on your large office window, otherwise the air-conditioning system will kick in unnecessarily. Conversely, in the winter, the blinds should be up, to allow the sun to heat the space. “Motion sensors can also activate, to determine what areas of an office need to be heated based on the occupancy and use of those areas. Where there is no movement, the heating operates at a lower level,” explains Kovács. Additionally, lighting sensors can assess the level of ambient light coming from outside and based on that information, adjust the lumen levels of the interior lights accordingly, while an open window can signal that the airconditioning or heating system should stop overproducing hot, or cold air. An integrated smart system can make these executive decisions for you, assuming it’s equipped and programmed in the right way. As a user, you can rely on a technician to create all these configurations for you and the only thing to limit the construction is the budget. What’s important to keep in mind, particularly when you’re building a new office, is that you build a system that can be expanded upon, which in the case of one of the more popular brands, Loxone, operates as extendable modules that run off a miniserver in bus formation: Each port has its own address that communicates with the interface, in this case the custom-made program on your tablet or smartphone that replaces wall switches and thermostats, explains Schmidt.

András Schmidt of Verdom holds one of the miniservers that make his company’s smart home and office systems work. In the inset is László Kovács, CEO of Smart Home.

systems can do the job, assuming The future of smart offices your office is not too big. “If your office Monitoring space usage through sensors spans three floors for example, the radio can also help companies build better frequency system won’t work since offices in the future, and the technologies it’s not very effective in transmitting for carrying out such data collection – through floors,” says Kovács, who adds and to some extent analysis of that data that amplifiers run in the range of HUF – are already in place. Such analysis 50,000 if you choose to go the wireless would be most applicable in the case of a route in a larger single floor office. workforce that is both present in the office Additionally, since wireless systems are and operating remotely. It would help that modular, you can buy each component office decide how best to share tasks or one piece at a time, as your budget allows, work collaboratively through contentexplains Schmidt. sharing tools, for example. Another way to determine what The outsourcing of IT departments functions you might need most is to carry is also becoming more commonplace Working within your budget out a detailed assessment of the usage in the modern offices, as cumbersome Although the idea of installing a fully patterns of your office. “If a client comes servers are replaced with cloud-based integrated smart system may sound like to me and would like this kind of system, technologies. Although these are not part a costly endeavor, there are more cost- I would first suggest that we measure the of the traditional smart offices of today, effective ways to go about it. A wired various energy expenditures, such as they are certainly a consideration for the system is of course the most reliable electricity, gas and water, to see how we smart offices of the future, as executives but if a business is looking for a cheaper can improve on energy efficiency in the and office managers seek to integrate that and more portable alternative, wireless long-term,” says Schmidt. data into smart office developments.

2016. 02. 10. 19:51

www.bbj.hu

Budapest Business Journal | Feb 12 – Feb 25, 2016

The digital evolution of office management Anita Mónus has been the office manager at the Budapest office of Weil law firm for 16 years. She is responsible for the areas of finance, administration, facilities management and human resources at the firm. Here she tells the Budapest Business Journal about her experience in running an office, and how things have changed over the years.

“I don’t even remember the last time I sent or received a fax. Junior secretaries nowadays don’t even know how a fax machine works!” addition, law firm professionals must put more emphasis on proper storage and safekeeping of electronic files, as opposed to old-fashioned physical files. New technological solutions also helped free up office space. This change was particularly welcome when we carried out a major office expansion and refurbishment due to the growth of our Budapest office, and we no longer needed to allocate space for a server room on site.

Have these changes increased expectations for how much you can do? A: The expectation is not necessarily on how much, but rather how quickly and efficiently we manage to get the job done and respond to our clients’ needs.

BBJ STAFF

What are the challenges of running a law office with roughly 25 attorneys? A: Weil Budapest is a highly integrated part of a top-tier international organization, and the same standards apply throughout the firm regardless of size. As for the management of the office, we need to ensure that our talented administrative professionals are experts in multiple areas, that they are capable of using different and often complex software, and that they complete all tasks that are required in every Weil office. Our assets are our people, and recruiting, training and retaining the most talented legal and support staff professionals has always been a challenge. Weil has various programs and initiatives in place, we provide training to ensure continuous professional development and also invest significant amounts in state-ofthe-art technology. We also endeavor to create an ideal office environment, to allow employees to be as effective as possible in order to be successful while at the same time, achieve the optimal work/life balance that’s realistic in a fast paced and demanding international law firm environment. We also provide flextime/part-time schedules and home working arrangements for our employees, to support their family obligations in different stages of their lives. I am proud of the fact that our office has one of the lowest turnover rates among the members of both the legal and support staff, and we have managed to achieve overall high employee satisfaction over the years.

How have these challenges changed over the years? A: In recent years, increased client expectations for efficiency and cost-effectiveness, fueled by technological advances are adding to the challenges law firms in general have to address. Some clients are ahead of lawyers in implementing the latest

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Have you seen a reduction in support staff – or changes in job descriptions – due to the ability to do more electronically? A: Again, support staff members from IS to legal secretaries are expected to keep up with the technological changes and complete their tasks more efficiently. Speaking of efficiency, in order to maintain a historically low secretary-to-attorney ratio, these days legal secretaries must learn to use more applications than ever before and become proficient users of various complex programs. For example, more court filings, etc. are done electronically now. Skilled and experienced legal secretaries, who can wear many hats, have language skills and who are always eager to learn new ways of doing their job are highly valuable assets in any law firm.

Anita Mónus, office manager at Weil.

technology and they also have easier then more comments, changes ... etc. for access to legal information nowadays weeks or even months during the course (via the internet, for example). Although of a typical transaction. Secretarial staff the nature of legal issues has remained spent hours safeguarding the proper the same, it is the way in which lawyers transmittance of such lengthy faxes are expected to deliver their work (often late at night), standing by the fax products and advice that has changed machines (and away from their desks significantly. In the competitive world where they could have been working on of legal services, in this new age of other projects), which resulted in lots of technology and information, law firms overtime costs in addition to the gigantic that keep up and invest considerable telecom bills each month and ultimately amounts of time and funds in – in burnout. A lot has happened since. implementing the best new tools and I don’t even remember the last time I solutions will achieve higher client sent or received a fax. Junior secretaries satisfaction. nowadays don’t even know how a fax machine works! They have become What are the technological completely obsolete. Faxing was replaced changes you have seen by sending documents via e-mail many since you began running years ago, saving a lot of time, secretarial the office? capacity and money – not to mention What about overall A: There are many. It’s been quite paper. During the past ten years, both efficiency in a field like fascinating to witness the changes in the hardware and the software essential legal work? In other our legal industry and the effects of for electronic document transmitting and industries, paper can be replaced, these changes, from the way we operate viewing have undergone groundbreaking but isn’t the legal profession lagging behind in this respect? to meet various client demands to the evolutions. rapid evolution of office technology, A: Yes, it is true. Law firms will be among all supporting a continuous quest to Have these changes made the last to give up the use of paper, but achieve higher levels of efficiency and your job easier? Have some that’s the nature of our business. As profitability. A good example of the actually increased your long as executed original copies are evolution of office technology only responsibilities? required by various authorities to requires a short trip down memory lane: A: Yes, in a lot of ways they have complete and register transactions, it After decades of law firms doing things definitely made all of our jobs easier. is out of our control. What we did many relatively the same way all over the world, Communicating has never been so years ago, however, was to implement a the 1980s technological revolution – from easy, fast and cost-effective as it is now. firm-wide policy to use recycled paper, the spread of computerized technology Today, the ways professionals can access recycled toners and to print documents to sophisticated duplicating devices – a document immediately after it’s been double-sided, considerably cutting back finally knocked down the door. When sent are nearly limitless, regardless of on paper consumption and cost. Many of fellow “Generation-X” professionals their physical location, provided there is our attorneys strive to minimize printing started working in the late ’90s, it was an internet connection. These changes out documents by reviewing them on customary for international law firms to have substantially impacted support the screen instead (using two monitors); send 200-plus-page faxes several times staff workloads and duties, requiring however, it is not always feasible. a day back and forth to the client/other continuous professional development This remains an area for continued party, with comments and mark ups and to keep up with the changes. In improvement in the legal profession.

2016. 02. 10. 19:51

www.bbj.hu

Budapest Business Journal | Feb 12 – Feb 25, 2016

Investing in better office design c Creating a good work space can maximize efficiency by keeping employees happy and productive. The Budapest Business Journal spoke with four of the top firms in the field of office planning and design to learn more about what they can bring to a place of business. ANIKO FENYVESI

Because a happy employee is usually an efficient one, local designers and office planners say, truly cost-effective design must take into consideration the comfort, health and well-being of employees. That is why the price-tag of office design is only one consideration, according to experts interviewed by the Budapest Business Journal. They note that a carefully designed workspace can impact the workers who inhabit that space – improving their efficiency and the operations of a company in the long-term. These decisions require office planners to determine the company’s Tearing down walls: A relaxation area designed by Office Line uses open spaces. strategy and its priorities; the working style of employees (collaborative or solitary); past issues and concerns; the information they need to devise a office that works best for the needs of the how agile the workforce is; how often workplace concept. But this concept may company,” says Tiberius Soltész, country employees work out of the office; the not always be met with open arms. manager of Kinnarps Hungary. But the need for collaborative spaces; the size “We are often drawn to the way things biggest challenge remains managing and number of boardrooms; and so have always been, one desk, one chair, that change. “A client may start off on. Designers say they make these one large and two smaller boardrooms, a open minded but as the time to make a detailed assessments through workshops, kitchen. What we need to do is avoid the decision nears, they gravitate towards old audits, or workplace shadowing to get superfluous spaces and try to create an habits and back to their comfort zone.”

Towards an open concept One way to cater to the needs of the modern workforce is through an open concept office. Although this setup is not ideal acoustically speaking, it is actually the best use of space, according to Ferenc Masznik, the executive director

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2016. 02. 10. 19:51

www.bbj.hu

Budapest Business Journal | Feb 12 – Feb 25, 2016

n can pay back of Office Line. The open office facilitates different working styles, especially collaborative ones, and since employees are encouraged to move away from their computer screens every hour, it’s usually a good time to take advantage of the communal spaces. “Many in upper- and mid-management have a theoretical knowledge of how collaborative spaces work but that’s not actually what happens in practice. They need to be educated about the nature of collaborative practices including spontaneous meetings of all sizes and lengths for which most large meeting rooms are not even required,” says Károly Kis, managing partner of Blue Business Interior. Break-out or communal spaces can also contain areas for play where employees can bond with each other through positive and fun activities, says Masznik. These spaces can also reduce the need for external team building activities that have long been a popular way of getting employees to solve complex problems in playful and creative ways, while also getting to know one another’s work habits.

The science of ergonomics

The broad category of ergonomics is an essential component in any office, particularly a well-designed one. Common knowledge of ergonomics is usually limited to a well designed chair, and this certainly is a key component. “Some 85% of sick leave can be attributed to a bad office chair,” says Ottó Feuertag, the owner of Europa Design. But the size of the desk, lighting, air circulation and humidity are also vital parts of this complex science. Soltész, of Swedish company Kinnarps, says ergonomics have been a hot topic in Sweden for the past 10-15 years. “I’m happy to see that ergonomic work spaces are becoming important to an increasing number of our clients in Hungary.” Feuertag explains: “Unfortunately, the Hungarian market reacts slower to changes than surrounding markets and is less open to new ways of working. It is

“Many in upper- and midmanagement ... need to be educated about the nature of collaborative practices including spontaneous meetings of all sizes and lengths for which most large meeting rooms are not even required.” more conservative.” Soltész doesn’t see conservatism as a concern, but rather as evidence that Hungarians are perhaps more deeply connected to tradition. The market is changing, however, and multinationals are helping foster that change, bringing their corporate culture into an environment that could do with some fresh blood. “The sitting-standing desk which can easily be adjusted electronically is starting to make an appearance in Hungary,” says Soltész, adding, “It is good for circulation, for your spine and your general well-being.” Technological considerations are also a big part of new trends, with everything from smart offices to wired and wireless consoles that can accommodate all manner of gadgets. Green offices are another hot topic, and this also belongs in part to the category of smart offices, where energy efficiency is maximized by automatically switching off lights when they are not required, or significantly reducing unnecessary heating. Environmental considerations extend not only to the use of recycled materials, but also to sustainable materials. Many furniture manufacturers take it a step further by using waste to fuel industrial machinery or by introducing zero emissions programs. “There is also a great deal of used furniture on the market, as well as the option to rent furniture, which is not only an environmentally friendly option, but can also provide big savings,” says Masznik.

The color-coded lobby of the GM shared services center in Budapest.

Case study: Colors and ergonomics for GM The head of Europa Design talks about the thinking behind the firm’s design for a shared services center. The first thing visitors see when entering General Motors’ shared service center office in Budapest is the striking and smoothly contoured reception desk in stark, glossy white, set against a deep-blue backdrop that holds the company logo. Here we are introduced to a linear color scheme and the concepts that each color represents, including “future”, “revolution”, “emotion”, “innovation”, and “creation”, among others. These lines of color literally tie the space together, like a kind of subway map that runs through the entire length of the office on both horizontal and vertical surfaces. General Motors opened its SSC in Budapest’s Váci Corners building in May, with a design created by Ottó Feuertag and his team at Europa Design. This 1,200 sqm space provides a vibrant and innovative work place for 101 GM employees, and is quite unlike its previous base in Budaörs, in southern Budapest. Feuertag says that the most challenging part of planning the space was not selling bold concepts to satisfy the customer, but rather figuring out the possibilities, given the space he had to work with. Although the SSC was new, GM has been in Hungary since the early 1990s, when it began producing Opel cars at its plant in Szentgotthárd. The winning design concept for its Váci út offices was the fourth in a series presented to the firm. GM approached Europa Design to do the job on the basis of the firm’s work for Avis Budget Group. According to Feuertag, the client came to the table with some very specific goals in mind. GM wanted the space to be modern and open to encourage collaborative working relationships between colleagues, a common trend in modern offices even in Hungary, says Feuertag.

Emphasis on ergonomics Given that the open concept often creates unwanted noise, the acoustics were also an important consideration, and noise was reduced through the use of acoustic buffers on the ceiling, sealed private phone booths and specially designed furniture that could wrap around its user. But sound is only one of the many ergonomic factors in an office environment. This branch of science, which examines a person’s efficiency in a given work environment also takes into consideration lighting, air quality, humidity levels and, above all, seating. The break out areas at GM apply the principles of ergonomics that Feuertag is constantly emphasizing when he discusses design: Seating arrangements come in various shapes and sizes from unusually delicate stools, to rocking chairs, to couches, to beanbag chairs, offering the user options, and also taking into account good posture. The color scheme begun in the lobby also plays a significant role here, and patches of color help differentiate the different zones within the collaborative areas. “We created islands on the carpeting, each with its own color scheme to represent the different phases in the historical development of General Motors’ more than 100-year history,” says Feuertag. The blocks of color also extend into the various spaces of the office, sometimes running in thin lines along the floor coverings and up onto the walls of the work areas.

Work stations by Kinnarps Hungary: Avoiding superflous spaces.

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“An interesting visual element is the parallel between the history of General Motors and the technical and scientific discoveries in Hungary over the past 100 years. This gives Hungarians and out-of-country guests an overview of both of these histories,” explains Feuertag, who notes that the project came in on budget, –Aniko Fenyvesi and was finished in one-and-a-half years.

2016. 02. 10. 19:51

www.bbj.hu

Budapest Business Journal | Feb 12 – Feb 25, 2016

Locally developed solutions boost productivity Sabeeapp and MiniCRM are two Hungarian firms pushing the digital envelope of office management with new applicaitons. LEVENTE HÖRÖMPÖLI-TÓTH

There is a lot more to office management automation than handling documents or prioritizing tasks electronically. Two Hungarian companies, Sabeeapp and MiniCRM, have come up with specific IT tools designed to boost productivity – one in the area of booking accommodations and the other in the area of client management. “On most hotel websites there is no such thing as real time booking. Asking for quotes and exchanging e-mails, that’s what’s going on. The other day I went to a beautiful Hungarian fourstar wellness place. The receptionist didn’t check my data on her computer, but instead she crossed me off by pen from a pre-printed list. It was an odd feeling to be crossed off. Apparently the records of our online reservation had been entered manually into their offline system,” says Szabolcs Herman, founder and CEO of Sabeeapp. Herman says he has encountered similar situations all over the world, and they have solidified his belief that hotel administration has a thing or two to learn about automation. So he set up a firm to develop software in order to simplify paperwork for accommodation providers and to offer them a cuttingedge set of office management solutions. As a result, Sabeeapp users can now keep their availability and rates in sync on online travel agencies (OTAs) and their own website. A payment gate is also included in the package. On top of classic property management system (PMS) functions such as invoicing and sales estimate generation, extra features like arranging housekeeping data or running web chats with customers sweeten the deal for subscribers.

Customer satisfaction “Boosting customer satisfaction is key. One of our new tools to be launched in March is a smartphone optimized guest engagement app, which will make communication between the client and the hotel a lot more interactive. As a result, guests will leave happier since they feel they are being taken care of more,” Herman explains. Hotel managers seem to be convinced by this argument as well. During the one-and-a-half years the cloud-based software has been on sale, more than 300 hotels have signed up on sabeeapp.com in 65 countries. The word has spread fastest in Hungary, Turkey and Thailand. The fact that Sabeeapp was granted the status “Preferred IT Provider of Booking. com” is bound to give an extra push to its global appeal. But it’s not only highly professional hotels that can benefit. The

BBJ_2403_spec_report.indd 18

The crew at Sabeeapp.

“Easy-to-use and to-the-point products can stand out from the crowd. While in markets in the United States and Western Europe artificial intelligence and big data are gaining traction, CEE is lagging behind due to the large investment-intensity of the newest technology.” number of Airbnb clients is growing by the day too. “By now we can meet any of their special demands. The two-way synch with Airbnb is a great example of that, not to mention the fact that you can manage the booking of apartments located at different addresses smoothly as well,” Herman says. No need to worry about integrating “conventional” office management tools into Sabeeapp, either. Many are included in the first place such as e-mailing, invoicing or check-in form management. And development won’t slow down. “Integration is about to be finalized in February with restaurant POS software FruitSys, the market leader in its segment in Budapest. Our plans and opportunities are endless,” Herman insists.

Updates duly taken care of Client management is another area where automation can make or break a business. The trends are clear to Norbert Leskó, CEO of MiniCRM, a hot

young company that stepped into the limelight in 2014 when it won Magyar Telekom’s regional business app contest. “Cloud technology is on the rise on a regional level. Subscription models diminish entry barriers for customers, whereas long-term, high quality service motivates service providers. Easy-to-use and to-thepoint products can stand out from the crowd. While in markets in the United States and Western Europe artificial intelligence and big data are gaining traction, CEE is lagging behind due to the large investment-intensity of the newest technology,” Leskó says. MiniCRM offers a service package aimed at boosting sales and marketing productivity. The ultimate edge is offering integration without becoming technologically outdated. “Users can always access the latest version of every service, while the functioning of the integrations is ensured by the providers,” Leskó says. “Conventional software faces the problem of the constant need to update. MiniCRM

offers ready-to-go integration with the most-used business software packages like Gmail for Work, Microsoft 365, virtual call center Minervatel or Google AdWords, to name but a few.”

Regional targets on the radar The MiniCRM concept has found fertile ground. Although hundreds of Englishlanguage customer relationship management (CRM) products are available, in Eastern Europe even large corporations may not use CRM at all. “Many of our new clients don’t switch from CRM to MiniCRM, but they migrate from the e-mail-calendartable management trio to a structured operation with CRM support,” Leskó says. Little wonder, then, that the core of the growth strategy concerns regional expansion with Romania, Croatia, Czech Republic and Slovakia on the radar. Revenues soared by 40% from 2014 to 2015 and growth is expected to intensify. Customers seem to be embracing the potential inherent in targeted campaigns based on up-todate customer databases. But Leskó is keen to develop the MiniCRM business in general. “We invest a lot into making enterprises more efficient by providing free-of-charge training and workshops, advisor teams for continuous support of our customers’ development, and integration with local services.”

2016. 02. 10. 19:51

www.bbj.hu

Budapest Business Journal | Feb 12 – Feb 25, 2016

Office equipment manufacturers' branch offices Ranked by total net revenue

Canon HungaRy kFt.

www.hp.com

www.canon.hu

koniCa minolta HungaRy business solutions kFt.

26,176(1)

10,400

7,883

✓

–

✓

–

✓

–

✓

Ÿ ✓

✓

–

✓

otHeR

Samsung

–

HewlettPackard

Process management, photo / video

www.xerox.com/index/ huhu.html

RiCoH HungaRy kFt. www.ricoh.hu

global union kFt.

oki systems (HungaRy) kFt.

http://kyocera.hu

✓

2,600(2)

✓

–

✓

–

www.okihu.hu

kvint-R kFt. www.kvint-r.hu

bRotHeR inteRnational HungaRy kFt.

–

✓

–

✓

–

✓

–

720

✓

–

✓

–

✓

491(2)

✓

–

✓

–

✓

–

✓

www.brother.hu

epson euRope b.v. HungaRian bRanCH NR oFFiCe

✓

–

✓

–

1,576(2)

✓

–

✓

Ricoh

✓

–

✓

–

✓

–

✓

–

✓

Xerox

7,600

✓

–

Managed printing services

2,100

Konica Minolta, Develop, KIP

✓

–

www.konicaminolta.hu

xeRox HungaRy kFt.

Canon

aCCessoRies

✓

sCanneRs

visual teCHnology

multiFunCtional maCHines ✓

Home deliveRy

–

Consulting

–

sHReddeRs

Fax maCHines

digital CopieRs

optiCal image CopieRs –

–

✓

Accessories, toners

–

Kyocera

OKI

Dascom, Lexmark, Professional Canon LFP, and Brother, 3D productive Systems, HP, 3D printers Ricoh, Mirabilis, Microplex, Printronix, Utax

Labelling equipment

–

Brother

Epson

–

✓

oWneRsHip (%) HungaRian non-HungaRian

HeWlett-paCkaRd inFoRmatikai kFt.

–

yeaR establisHed no. oF Full-time employees on jan. 1, 2016

www.samsung.com

✓

Smart phones, tablets, cameras, data carriers

Rental

704,593 (2014)

bRands CaRRied

paRts supply

samsung eleCtRoniCs magyaR ZRt.

laseR pRinteRs

Company Website

seRviCes

RepaiR

total net Revenue in 2015 (HuF mln)

Rank

pRoduCts

top loCal exeCutive CFo maRketing diReCtoR

addRess pHone Fax email

1989 1,780

– Samsung Electronics Corporation Ltd. (100)

joseph (jeongwoo) kim Kim Ki-sup Mónika Nagy Törökné

1138 Budapest, Dunavirág utca 2. (1) 453-1100 (1) 453-1103 –

2008 234

– Hewlett-Packard Central Eastern European Holding GmbH (100)

bálint bartl, gábor gonda Bálint Bartl –

1117 Budapest, Alíz utca 1. (1) 229-9999 (1) 229-9000 info@hp.com

1994 158

– Canon Europa N.V. (100)

Győző Kroó – –

1031 Budapest, Záhony utca 7. (1) 237-5900 (1) 237-5901 info@ca–.hu

1990 158

– Konica Minolta Business Solutions Europe GmbH (100)

Dániel Székely Imre Arató Attila Kószás

1117 Budapest, Galvani utca 4. (40) 200-423 (1) 464-9091 ugyfel@konicaminolta.hu

Veronika Brazdilova Emőke Vass Gábor Udvardi

1138 Budapest, Madarász Viktor utca 47-49. (1) 436-8800 (1) 436-8801 info@xerox.hu

majoR Clients in 2015

✓

Telekom, K&H, GE, MÁV, NAV

1992 210

– XEROX Ltd. (100)

✓

1995 59

– Ricoh Europe Holdings Plc. (100)

Ferenc kustos Péter Eperjesi Rita Tápai

2040 Budaörs, Puskás Tivadar út 14. (23) 806-800 (23) 806-801 info@ricoh.hu

✓

Lufthansa Systems, TV2, KnorrBremse Hungária, Volvo Hungária

1991 20

László Juhász (90), Anikó Szabó (10) –

László Juhász Tamás Bukuli Dorottya Juhász

1172 Budapest, Rétifarkas utca 16. (1) 273-0100 (1) 273-0060 global@globalunion.hu

✓

MOL, Richter Gedeon, NAV, Magyar Posta, OTP Bank, Orex

1992 5

– OKI Europe Ltd (100)

loránd tamás Loránd Tamás Andrea Újlaki

1133 Budapest, Váci út 76. (1) 814-8000 (1) 814-8009 askoki@okihu.hu

✓

1991 29

Zoltán Schneider (33.30), László Kasnya-Kovács (33.30), Károly Molnár (33.30) –

Zoltán schneider, László KasnyaKovács József Merth László Kasnya-Kovács

1089 Budapest, Delej utca 41. (1) 477-4050 (1) 477-4060 posta@kvint-r.hu

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

1994 9

– Brother Holding (Europe) Ltd (100)

Daisuke Hirota, Takashi Tomonaga – –

1117 Budapest, Budafoki út 209. (1) 382-7450 (1) 382-7455 info@brother.hu

– Epson B.V (100)

Hideki Kitamura, Lena Saw Seang Giak, Michelle Elizabeth Mecklenburgh – –

1117 Budapest, Infopark sétány 1. (1) 382-7680 (1) 382-7689 info@epson.hu 1095 Budapest, Lechner Ödön fasor 8. Millenium Tower III. (1) 501-7200 (1) 501-7311 threcbud@lexmark.com 1117 Budapest, Infopark sétány 1. I/6 (1) 815-2500 (1) 815-2501 eniko.laczko@sharp.eu

✓

–

✓

–

✓

–

✓

–

✓

–

✓

–

✓

–

www.epson.hu

lexmaRk NR magyaRoRsZág kFt.

www.lexmark.hu

sHaRp eleCtRoniCs (euRope) gmbH NR HungaRian bRanCH oFFiCe

✓

–

✓

–

✓

–

✓

Software solutions

–

Interactive blackboard

www.sharp.hu

Lexmark

Sharp

✓

2008 8

2001 1

– (100)

sinan emon Kristóf Ferenczi –

2008 11

– Sharp Electronics (Europe) GmbH (100)

Zsolt Szabó Maciej Skupinski Adam Bieniewski

NOtes: (1) Data of business year Nov. 1, 2013-Oct. 31, 2014. (2) Data of business year Apr. 1, 2014-March 31, 2015.

Ÿ= would not disclose, NR = not ranked, NA = not applicable

BBJ_2403_spec_report.indd 19

This list was compiled from responses to questionnaires received by Feb. 8, 2016 and publicly available data. To the best of the Budapest Business Journal’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Additions or corrections to the list should be sent on letterhead to the research department, Budapest Business Journal, 1075 Budapest, Madách Imre út 13–14., or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu

2016. 02. 10. 19:51

20 3

www.bbj.hu

Budapest Business Journal | Feb 12 – Feb 25, 2016

Digital hardware producers Ranked by total net revenue

yeaR establisHed

oWneRsHip (%) HungaRian non-HungaRian

top loCal exeCutive CFo maRketing diReCtoR

addRess pHone Fax email

Samsung

1989

– Samsung Electronics Corporation Ltd. (100)

Joseph (Jeongwoo) kim Kim Ki-sup Mónika Nagy Törökné

1138 Budapest, Dunavirág utca 2. (1) 453-1100 (1) 453-1103 –

2007

– Foxteq International (100)

péter tálos – –

2900 Komárom, Bánki Donát utca 1. (34) 886-069 (34) 886-101 komarom@emea.foxconn.com

Roh youngnam Daemin Hwang Krisztián Szili

1097 Budapest, Könyves Kálmán körút 3/A (1) 455-6060 (1) 455-6066 –

seRveR

bRands RepResented tablet

total net Revenue in 2014 (HuF mln) laptop

Company Website

Rank

pRoduCed ComputeR types

samsung eleCtRoniCs magyaR ZRt.

704,593

–

✓

pCe paRagon solutions kFt

303,556

✓

–

✓

lg eleCtRoniCs magyaR kFt.

84,948

–

✓

–

1992

– LG Electronics Europe Holding B.V. (99.99)LG Electronics Inc. (0.01)

HuaWei teCHnologies HungaRy kFt.

36,910

✓

Huawei

2005

– Huawei Technologies Cooperatief U.A. (100)

Hui Chun, lu yong, Wang shengli – –

1138 Budapest, Népfürdő utca 22. (1) 555-2300 (1) 555-8989 –

ibm data stoRage systems kFt.

30,851

–

✓

IBM

2006

– IBM Ireland Product Distribution Ltd. (100)

péter mohácsi Tamás Káldi –

2600 Vác, Deákvári fasor 16–18. (27) 500-400 (27) 517-026 –

HeWlett-paCkaRd inFoRmatikai kFt.

2008

– Hewlett-Packard Central Eastern European Holding GmbH (100)

bálint bartl, gábor gonda Bálint Bartl –

1117 Budapest, Alíz utca 1. (1) 229-9999 (1) 229-9000 info@hp.com

péter szalay, péter benedek Árpád Koncz Svetlana Stavreva

1117 Budapest, Neumann János utca 1. (1) 382-5500 (1) 382-5501 info@hu.ibm.com

www.samsung.com

www.foxconn.hu

www.lg.hu

www.huawei.hu

www.ibm.com/hu

www.hp.com

26,176

✓

1936

– IBM Ireland Product Distribution Limited (99.93), IBM World Trade Corp. (0.07)

1993

– (100)

Csaba Reményi – –

1095 Budapest, Lechner Ödön fasor 7. (1) 224-1700 (1) 214-0070 –

1999

– Fujitsu Technology Solutions (Holding) B. V. (100)

krisztina batári Krisztina Batári Tímea Bozóki

1143 Budapest, Gizella út 51–57. (1) 471-2111 (1) 471-2110 info@fujitsu.hu

tivadar dienes-oehm – –

1023 Budapest, Árpád fejedelem útja 26–28. (1) 888-0550 (1) 800-0501 –

ibm HungaRy kFt.

18,730

–

✓

Pure Systems, Power Systems (AIX, IBM i, Linux), z Systems (Mainframe), Storage Systems, Flash System, Tape Systems, Storage Area Networks

oRaCle HungaRy kFt.

16,407

–

✓

Oracle

FuJitsu teCHnology solutions kFt.

www.ibm.com/hu

www.oracle.com

www.fujitsu.com

dell magyaRoRsZág teCHniCal solutions kFt.

3,859

✓

Fujitsu

524

✓

Dell

2007

– Dell Global Holdings II B.V. (100)

265

✓

Asus

2007

– ASUS Technology Holland B.V. (100)

Zoltán gyöngyösi – –

1075 Budapest, Wesselényi utca 16. (1) 505-4561 (1) 505-4563 ugyfelszolgalat@asus.com

tamás József borhi – –

1023 Budapest, Árpád fejedelem útja 26–28. (1) 336-3300 (1) 336-3309 infohu@acer-euro.com

www.dell.hu

asus magyaRoRsZág kFt. www.asus.hu

aCeR slovakia s. R. o. CommeRCial RepResentative oFFiCe HungaRy

✓

Acer

2006

– ACER Slovakia s.r.o (100)

✓

Lenovo

2005

– Lenovo Technology B.V. (100)

anita lukács – –

1037 Budapest, Montevideo utca 16/A (1) 211-1402 – info@lenovo.hu

–

✓

–

Panasonic

2010

– Panasonic Marketing Europe GmbH (100)

ireneusz piotr smaga – –

1117 Budapest, Neumann János utca 1. (1) 382-6060 (1) 382-6066 –

–

✓

–

Sony

2002

– Sony Europe Ltd. (100)

takahito uesugi, Zdzislaw adam bychawski – –

1023 Budapest, Árpád Fejedelem útja 26–28. (1) 777-9151 (1) 346-8225 support.hu@eu.sony.com

2012

– Toshiba Global Commerce Solutions (Germany) GmbH (100)

yuichi nozawa – –

1077 Budapest, Wesselényi utca 16. – – –

www.acer.hu

lenovo teCHnology b.v. HungaRian bRanCH oFFiCe www.lenovo.com/hu/hu

panasoniC maRketing euRope gmbH soutHeast euRope bRanCH oFFiCe www.panasonic.com

sony euRope limited HungaRian bRanCH oFFiCe www.sony.hu

tosHiba global CommeRCe solutions (geRmany) gmbH HungaRian bRanCH oFFiCe www.toshiba.hu

BBJ_2403_spec_report.indd 20

✓

Toshiba

2016. 02. 10. 19:51

4 Socialite BBJ

WHAT’S

ON BORJOUR MAGNUM February 12-13, MOM Sport Center Two hundred Hungarian winemakers will be showing their wares at this year’s Borjour, which is being touted as the largest wine tasting festival of the year, featuring over 600 wines. The festival will also include stands with Hungarian culinary specialties. Entry to the event is HUF 10,000 and includes unlimited tasting and your own tasting glass. borjour.hu LEAR February 13, Hungarian State Opera House Contemporary composer Aribert Reimannʼs reworking of the tale of “King Lear”, which is considered Shakespeareʼs darkest tragedy, is being brought to the stage by Ferenc Anger, based on the legendary production by director JeanPierre Ponnelle. This opera in two acts is presented in German with Hungarian and English subtitles. opera.hu CHRISTIAN GERHAHER AND THE FREIBURGER BAROCKORCHESTER February 18, Liszt Academy Concert Center In 1987 final-year students of the Freiburg College of Music established the Freiburg Baroque Orchestra in order to play 17th and 18th century music on period instruments in a historically informed manner. Today the ensemble is one of the best-known early music orchestras in the world. They frequently perform under the baton of famous conductors such as Hungarian Ádám Fischer, although they are most commonly directed by their concertmaster, Gottfried von der Goltz. In addition to orchestral works by Mozart, this program will feature several opera and concert arias with performances by German baritone Christian Gerhaher and Italian clarinetist Lorenzo Coppola. zeneakademia.hu

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

used by the official Soviet press in the 1980s. The band first appeared in St. Petersburg in 1987 as an absurdist-ironic answer to the overwhelming number of “rock” bands in post-soviet Russia. N.O.M. takes the many musical clichés and mixes it with satirical theatrics to produce a strong emotional effect with their unusual combination of traditional Russian melodies, rock, progressive rock and opera. The show will open with Hungarian absurdist art punk band Tudósok. a38.hu TON KOOPMAN February 19, Palace of Arts Dutch-born Ton Koopman is widely considered one of the greatest performers of Baroque keyboard music and Dutch Baroque organ music in particular has been a perennial feature of his career. Renowned as an organist, harpsichordist and conductor, he is also the founder of the Amsterdam Baroque Orchestra and an outstanding interpreter of the works of Johann Sebastian Bach. More recently, Koopman has dedicated special attention to lesser-known Dutch masters, as well as the classic works of French harpsichord, which will also feature in this evening’s performance. mupa.hu HUNGARIAN VIRTUOSI CHAMBER ORCHESTRA February 20, Mathias Church The Hungarian Virtuosi Chamber Orchestra was originally formed in 1988 by students of the Liszt Music Academy. This string orchestra works from an impressive repertoire with an emphasis on composers from the Romantic era. In the past decade the orchestra has performed more than 500 concerts all over the world working with some of the most renowned international soloists and conductors. This performance will be held at the recently renovated Mathias Church on Castle Hill. matyas-templom.hu

N.O.M. February 18, A38

MÁV SYMPHONY ORCHESTRA February 22, Palace of Arts

N.O.M. is an acronym for the Russian “Informal Youth Organization” (Neformalnoe Obyedinenie Molodezhi),

Schubertʼs “Unfinished” Symphony is a popular, yet enigmatic work that will be performed by renowned Hungarian

BBJ_2403_socialite.indd 21

King Lear endures family troubles at the Opera House. ensemble, the MÁV Symphony Orchestra under conductor Zoltán Kocsis. Smetanaʼs “The Moldau” is a musical journey along the Czech Republicʼs main river and will be presented along with Rachmaninoff’s lesser known “Symphony No. 2”, which the composer wrote in his early 30s. mupa.hu ANNE SOFIE VON OTTER AND LES MUSICIENS DU LOUVRE GRENOBLE February 24, Liszt Academy Concert Center Leading soprano Anne Sofie von Otter has the gift of extraordinary musicality, sensitivity and a sense of drama, coupled with outstanding vocal abilities and a strong stage presence. Otter is considered a master of Baroque music and for this performance she will present works by Telemann and Händel. Coming from a distinguished family with Polish, American and Hungarian ancestry, Otter founded Les Musiciens du Louvre in 1982 in order to revive French Baroque operas. The ensemble has operated with the official support of the city of Grenoble since 1996. zeneakademia.hu MAÄK QUINTET February 26, BMC This Belgian avant-garde jazz collective supports a wide range of international collaborations but the Maäk Quintet is its core project. Their style is largely unclassifiable and the diverse backgrounds of each performer contributes to the free-form nature of the group. Their tendency is to play acoustic performances while encouraging interaction with their audience. bmc.hu

Soprano Anne Sofie von Otter. STORYROOM February 26, Jurányi Inkubátorház Bilingual theatre company Scallabouche, led by Briton Alexis Latham and composed of a mix of foreigners and Hungarians, offers a rare occurrence of English-language theater in Budapest. On February 26, the group will present a one-off production of “Storyroom”, a night of improvisation that relies on audience participation to construct its narratives. Three actors will engage audiences for 75 minutes with nothing but a handful of words and objects provided for them by the audience at the beginning of the show. scallabouche.com

2016. 02. 10. 19:51

4 Socialite

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Budapest Business Journal | Feb 12 – Feb 25, 2016

Wine: Furmint frenzy goes on unabated February has become the top time to celebrate a great grape, and the new offerings provided at this annual tasting give cause to cheer. ROB SMYTH

The main tasting of Furmint February has become so hotly anticipated and vast that it accurately reflects the continuing surge in popularity of Hungary’s flagship grape. With 90 odd producers pouring their wares, it was only possible to scratch the surface before the searing acidity and alcohol dulled the nerves of straining palates. Nevertheless, the fact that so many visitors (hey they can’t all be from the trade/press on freebies, can they?) piled in to the established venue of the Hungarian Agricultural Museum on February 4, paying a pretty price to taste the mainly dry offerings, shows the future continues to be bright for Hungary’s most talked about grape variety. There are continuing signs that Furmint is also catching on internationally. For example, Királyudvar’s Sec 2012 (85% Furmint and 15% Hárslevelű) last year made Jancis Robinson MW’s Wine of the Week for being so “utterly autumnal” and for its “combination of nerve, density and strong quince flavor”. The 2013 version of this wine, from the town of Tarcal in the Tokaj region, looked like it may even surpass the 2012 with its combination of tongue tingling acidity, body and complex fusion of (already) fruity and savory notes. For the grape to cause a serious international stir, there needs to be more wines showing the kind of pedigree and elegance associated with legendary Hungarian racehorse Kincsem, whose skeleton is a permanent resident at the Hungarian Agricultural Museum. There also needs to be more evidence of dry Furmints ageing with the kind

Often something sticks out with dry Furmint, whether it is the razor sharp acidity, the use of oak, or the excessive bitterness often characteristic of the grape or the alcohol. This was one wine in which everything was in the right place. of grace that their sweeter equivalents can. Indeed, Furmint usually forms the backbone of Tokaji Aszú, the best of which can age beautifully for decades. Like the great Riesling grape of Germany and Alsace, Furmint is able to produce the whole gamut of wine styles from bone dry to sumptuously sweet, yet we have so little experience with Furmint as a quality dry wine as it’s only been around in anything like Sampling the flagship grape at the Furmint February event in the Agriculture Museum. sufficient quantity for barely a decade. Indeed, quite a few – but by no means all – of the older dry Furmints I’ve tried robust performer that performs well the less noble Olaszrizling as the most have been overly oily and lacking in in all vintages and always produces planted white grape. It was actually fruit. While they won’t shout about it, high quality wines. Hárslevelű is more nice to see Olaszrizling and Furmint many winemakers will agree. Some erratic but perhaps even more exciting hit it off in blends by the Szent Donát have even found that the less-lorded for Bott. However, the most complex winery from Csopak. The exciting Szent and less-fancied Hárslevelű grape, white wine of all he feels is from a blend Donát also does pure Furmints from when picked early enough, can keep its of his most noble grape varieties. Not different soils. Its Márga Furmint 2013 only content in putting Furmint and from marl soils was particularly pleasant freshness and fruitiness for years. Hárslevelű together in his premium with vibrant acidity and pear and quince blend, Super Granum, he also adds on the nose and palate. From Eger, the Fine Furmint across the border Frigyes Bott, an ethnic Hungarian who Juhfark, and the results are spectacular Nimród Kovács Winery continues to makes wines just across the Slovakian with deeper color and concentration, as impress with stony and focused Furmint border in Muzsla, impressed with his well as more layers of fruit and spice from the pure limestone of Nagy Eged Furmint 2013, which was one of the than in the straight Furmint. hegy. Meanwhile, the second vintage of more elegant Furmints on show at the Another ethnic Hungarian winery, St. Andrea’s Mária from 2013 shows that big tasting. Often something sticks out Nagy Sagmeister, from Szeremség the winery has found pure elegance on with dry Furmint, whether it is the razor (Srem) in northern Serbia, impressed the same hill by blending the grape on a sharp acidity, the use of oak, or the with a very ripe and fuller-bodied 50/50 basis with Chardonnay. excessive bitterness often characteristic Furmint from 2013, with apricot and When Furmint is good it can be very of the grape or the alcohol. This was candied fruit notes. Here the grape good indeed. It possesses distinctive one wine in which everything was in is called Szigeti, which was the old characteristics that are a big plus in the the right place. The oak was just about established name for Furmint in many a world of wine. While it won’t necessarily tangible but didn’t impede on the pure Hungarian region before the grape was bowl you over with an aroma orgy, good and juicy fruit whatsoever. The reason wiped out by Phylloxera in the late-19th examples can exude pure quince on the oak was so subtle was that this wine century. Incidentally, Furmint is being the nose, which is an appealing flavor was aged in six-year-old barrels. Bott replanted at breakneck speed across not regularly encountered elsewhere. describes Furmint as an excellent and Hungary and is threatening to overtake The fact that it is not that opulent on

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Why can’t they replicate this success with dry wine? Gizella’s Szil-völgy HárslevelűFurmint Cuvée 2013 (60% Furmint and 40% Hárslevelű), which comes from a gorgeous spot near Tarcal on the slopes of Tokaj Hill, suggests they can. Renowned wine writer László Alkonyi, who is now making wine as a partner in the fledgling Kalaka Pince, sure knows a thing or two about Tokaj and it is notable that both he and Tokaj maestro István Szepsy have invested their energies into the village of Tállya. Its wines resemble those of Mád somewhat and have rich historical pedigree. the nose actually counts in its favor This is the new El Dorado of Tokaj and for some winemakers. Judit Bodó, Kaláka Pinces Tökösmál 2015, which was winemaker at Bott Pince, a renowned made from grapes picked on five different boutique operation in Tokaj, loves harvest dates, stood out for its beautiful working with Furmint as she feels it balance between raw energy and elegance. allows the winemaker to reveal the Getting the oak right in Furmint is difference between individual vineyard critical and Tokaj producers Oremus, plots, due to it being relatively discreet Dobogó and Sauska have now really on the nose and palate. Bott and mastered the art of getting oak to enhance many other winemakers agree that Plenty of Furmint to go around. the structure without stripping away the Furmint is also an excellent conveyer fruit. An emerging trend is to dispense of the differences between vintages. A with wood altogether in order to capture vertical examination going back over A veritable volcano of Furmint, Hárslevelű and Kabar (a fruity as much pure juiciness as possible. The the vintages of Bott’s single-vineyard For the ultimate in volcanic explosiveness and aromatic crossing of Hárslevelű and experienced Tokaj winemaking siblings Csontos, whose volcanic rhyolite soil is at the Furmint February tasting, the Mád Bouvier that is permitted in Tokaj). It has István and Edit Bai, run the fledgling planted with old vines, ably proves the room was full of powerful and edgy wines, vibrant but not pointed acidity with great Carpinus winery and showed two exciting point. That very neutrality of Furmint which reflect the predominantly volcanic purity of fruit and zesty freshness. While bottlings. They managed to differentiate makes it an ideal candidate for making soil they come from more than the grape, a few percent of Hárslevelű is present between their fresh and zesty estate traditional sparkling wine, whereby although Holdvölgy for one manages to in many Furmints, I’d personally like to bottling from 2015, which was made by much of the complexity is gained from temper that vigor nicely. Holdvölgy’s Vision see the two grapes blended more on an controlled fermentation, and all about juicy its secondary fermentation on the lees in 2013 made the headlines last year when it equal footing, as Hárs can often take the fruit, from the single vineyard Lapis 2015, the bottle. A nice debut effort came the was the only Hungarian wine to win a gold harshness (pardon the pun!) out of Furmint. which was allowed to ferment via its own Pálffy Pince, which hails from Köveskál medal at the Decanter Asia Wine Awards The two grapes do combine to world-class yeast naturally occurring in the vineyard in the Káli Basin with its Methode (DAWA). What is especially interesting effect in Tokaji Aszú – one of the best, if and in the cellar – to more complex effect. Traditionelle Extra Brut 2013. about this wine is that it’s actually a blend not the best, of the world’s sweet wines. Both saw no oak!

Another ethnic Hungarian winery, Nagy Sagmeister, from Szeremség (Srem) in northern Serbia, impressed with a very ripe and fuller-bodied Furmint from 2013, with apricot and candied fruit notes.

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