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Hungary Strengthens Position as Auto Hub

As the global automotive industry undergoes one of its most profound transformations, driven by electrification, digitalization, and sustainability, Hungary’s strategic location, skilled workforce, and investor-friendly environment continue to make it an automotive destination of choice.  12

Polymer Innovation Drives Automotive Dialogue in Budapest

Italian innovation in the automotive industry took center stage in Budapest as the “Polymers and Compounds” conference brought together leading experts, manufacturers, and policymakers at the Hungexpo Center.  13

From L.A. Art Competitions to Budapest Gallery

Budapest’s Golden Duck Gallery showcases the third artBIAS exhibition until July 12, featuring the winners of a Teravarna international art competition. Niladri Sarker, founder and CEO of Teravarna, tells us what his organization offers artists.  21

The Prescription for Private Healthcare

For Hungary’s private healthcare sector to really develop to the benefit of businesses, staff and patients, the type of reform that Türkiye went through in 2005 needs to be implemented, according to Ahmet E. Usta, the Hungary country director for Istanbul-based MLP Care, who runs one of the biggest private hospitals in Budapest.  9

Inflation Up but Industry Shows Some Vital Signs, BUSINESS

The volume of industrial production continued to decrease in April, yearover-year, albeit at a slower pace than in recent months. However, it expanded significantly by 1.5% on a monthly basis. That said, it is too early to talk about a trend reversal. Inflation, meanwhile, increased again in May.  3

AmCham: Staying Ahead in the Age of Digitalization

AmCham Hungary hosted its first Digital Impact Day on May 28, bringing together professionals and policymakers from various fields to discuss the future of AI and digitalization in business.  7

EDITOR-IN-CHIEF: Robin Marshall

EDITORIAL CONTRIBUTORS: Luca Albert, Balázs Barabás, Éva Bodor, Zsófia Czifra, Kester Eddy, Bence Gaál, Gergely Herpai, David Holzer, Gary J. Morrell, Nicholas Pongratz.

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For more information visit budapestbusinessjournal.com

THE EDITOR SAYS

PLANNING FOR THE HÚSLEVES PEAK LOAD

Spare a thought for our CEOs. I may have said this before, but there was a point in time when “all” they had to do was interpret the data before them and steer their company accordingly. That might have been more challenging, or at the very least more constrained, in a recession than in times of economic plenty, but the variables were relatively easy to understand. And, if you needed to access a loan, whether for capital expenditure or, in effect, to buy your way out of trouble, well, at least the money was cheap. Everyone, it seemed, had a plan.

But as the former undisputed world heavyweight champion turned troubled sports star turned cannabis entrepreneur Mike Tyson famously said, “Everyone has a plan until someone hits them in the mouth.” The “Baddest Man on the Planet” also apparently warned, “You can’t be surprised by anything. Expect everything.” He had a point because, since 2020, we have endured COVID19 and its subsequent post-pandemic supply chain breakdowns, a major European war, an energy crisis and high inflation. CEOs have had to learn new skills, and agility has trumped all.

At our latest CEO Boardroom Meeting roundtable on Tuesday of this week, graced by Barbara Wassen, Hungary’s Ambassador-at-large for Climate and Tamás Lőcsei, PwC’s former country managing partner, one of the topics we discussed was how difficult it has become for businesses to plan given the on-off nature of the Trump Tariffs. Lőcsei argued that CEOs have a more difficult job today than ever before because there are so many more

unknowable variables being thrown up at a time when planning for the digital transition, and the impact of AI alone would be more than enough. He also agreed that the likely accession of Bulgaria to the euro at the end of next year puts more pressure on Hungary to join the common currency. However, he again insisted that Hungary should only join when its economy is strong, a view he has long held and shared at Boardroom Meetings.

If those were some of the economic takeaways from the latest roundtable, the phrase that stuck with me came from the energy side of the conversation when Wassen said the reality of the transition away from carbon-based fuels is that “Green will not be cheaper, but Brown will become more expensive.” She also warned that decarbonization alone will not be enough. Electrification will require plenty of technological innovation, especially around battery storage. The grid must be overhauled to improve connectivity, and the energy sources of today and tomorrow will need to be multiple: nuclear, wind, solar, hydrogen, biogas, geothermal and pumped hydro (storing water at height for when energy demands soar and then releasing it to generate power). She also revealed that the peak energy requirement leading up to Sunday lunch is known, to Hungarian planners at least, as the húsleves (meat soup) peak load. Governments and grid operators mess with that at their peril!

Robin Marshall Editor-in-chief

THEN & NOW

In the black and white photo from the Fortepan public archive, taken on June 8, 1957, at what was then the Népstadion (People’s Stadium) in Budapest’s District XIV, MTK’s Sándor Károly takes a shot on goal during a dramatic 3–2 league match against Vasas, with György Sárosi, Pál Berendi, and the legendary Nándor Hidegkuti watching closely from behind. In the modern image from June 10, 2025, Dominik Szoboszlai scores past Azerbaijani defender Jalal Hüseynov during a friendly match between Azerbaijan and Hungary at the Dalga Arena in Baku.

Photo by Zsolt Czeglédi / MTI

Photo by György Faragó / Fortepan

1News

• macroscope

Industry Shows Some Vital Signs, Inflation Causes Negative Surprise

The volume of industrial production continued to decrease in April, year-over-year, albeit at a slower pace than in recent months. However, it expanded significantly by 1.5% on a monthly basis. That said, it is too early to talk about a trend reversal. Inflation, meanwhile, increased again in May.

Inflation in Hungary, 1991-2025 (January-May)

Consumer prices; change compared to the same period of the previous year (%)

Source:

In April, the volume of industrial production in Hungary exceeded the March level by 1.5%, the Central Statistical Office (KSH) reported. The jump in the sector, which was previously in recession, is good news, but it is too early to talk about a reversal in the trend. Industry showed minimal growth of 0.1% in March, with the April data marking two consecutive months of expansion. Slim pickings though these may be, we last saw such an increase in mid-2022.

The production volume in the vast majority of manufacturing subsectors decreased compared to the same month of the previous year. Among the most important subsectors, there was a decline in vehicle manufacturing, electrical equipment manufacturing, and food, beverage and tobacco manufacturing. The output of computers, electronics, and optical products all expanded, however.

Industry’s April performance is still 2.3% lower than a year earlier, and overall production in the first four months was

lower

than in the same period in 2024.

There was also mixed news from the industry’s most important foreign market, Germany, in April, according to Dániel Molnár, senior economist at economic think-tank GFÜ. He notes that the volume of industrial production decreased by 1.8% on

an annual basis and by 1.4% on a monthly basis after the outstanding expansion in March, which thus fell short of preliminary expectations.

Industrial orders in Germany, on the other hand, caused a positive surprise; compared to the expected 1.5% decline, the volume of orders increased by 0.6% on a monthly basis, resulting in a level that exceeded the previous year by 4.8%.

Stockpiling Effect

This may have contributed to the fact that German confidence indices have also improved recently; for example, the Ifo Institute for Economic Research’s manufacturing confidence index rose in May to a level not seen since July of last year. However, it is questionable how durable this turnaround will be and how significant a role the stockpiling effect played, with American companies seeking to replenish their inventories before reciprocity tariffs take effect.

As for the outlook for the performance of the Hungarian industry, there is still considerable uncertainty, Molnár says. No agreement has yet been reached between the United States and the EU on U.S. tariffs. Not only is the deadline approaching, but it is also crucial for companies to have clarity as soon as possible.

Industrial performance is, therefore, expected to fluctuate around its current level in the coming months, with a more positive turnaround towards the

end of the year if trade tensions ease and global prospects improve, which could be further boosted by largescale investments (BYD, CATL, BMW) coming online.

According to Erste Bank analyst János Nagy, the outlook for the Hungarian industry is quite mixed: while the most significant export partner, Germany, started the year well, optimism seems to have waned sharply since the escalation of the tariff war.

China’s export restrictions on rare earth metals are already causing significant disruptions in European production chains. At the same time, the development of German manufacturing orders indicates a gradual improvement in the cyclical position; the question is how much Hungarian players can benefit from this.

Widespread Uncertainty

In March and April, German orders increased by more than 4% overall. In the same period, the level of Hungarian production increased by just over 1.5%, Nagy notes. The global trade conflict and the complex nature of tariffs are causing widespread uncertainty, resulting in a “wait-and-see” approach that may dominate the behavior of players. This will lead to the withdrawal of capital and the postponement of investments and development projects. As things stand, the positive growth effect of capacity expansions may not appear until 2026.

KSH also published its May inflation data. Consumer prices were 4.4% higher on average in May 2025 than a year earlier. Compared to April, prices went up by 0.2% on average. Analysts had expected inflation to remain at the 4.2% level seen in April.

The government has introduced margin caps in several sectors through which it expected to moderate inflation. The fact is that while the margin caps reduced overall food prices by 1.3% in April, they went up by 0.6% in May on a monthly basis. In a year-overyear comparison, food prices rose 5.9% in May (up from 5.4% in April). In other words, food prices rose again despite the margin cap being in place.

After the peak of 5.6% in February, the rate of inflation decreased in March and April, making May’s data a negative surprise. One piece of good news is that core inflation, which is free of one-off effects and therefore better describes inflation processes, has decreased, reaching 4.8% in May. While welcome, this still indicates strong price pressurein the Hungarian economy.

The latest inflation data also suggests that the central bank will likely have no room to maneuver for a possible interest rate easing. That means the current 6.5% base rate, in effect since September 2024, will remain in place for a while.

ZSÓFIA CZIFRA

in Brief News

Ministry Confirms EC Suspends Excessive Deficit Procedure

The European Commission has suspended its excessive deficit procedure (EDP) against Hungary, the Ministry for National Economy said on June 11. The ministry noted that Hungary’s 2025 budget remains on a stable and sustainable track, reaffirming the government’s commitment to fiscal discipline and reducing both the deficit and public debt. It said the EC’s decision was recognition of the country’s fiscal stability and aligned with the activation of an escape clause. The budget deficit is projected to narrow to 4.1% of GDP this year from 4.9% in 2024, with a further decline to 3.7% targeted in the 2026 budget bill. The general government deficit reached 58.6% of the HUF 4.774 trillion full-year target in January–May, the ministry added, noting that debt servicing costs were the sole factor pushing the balance into negative territory.

Hungarian-Chinese Business Center Opens in Cegléd

The Hungarian-Chinese Business Development and Incubation Center was inaugurated on June 11 in Cegléd (70 km southeast of Budapest), according to a statement issued yesterday. Center head Előd Tasnády stated that the facility aims to strengthen and expand Chinese-Hungarian business

relations, offering meeting rooms, office space, headquarters services, and warehousing facilities. István Szabó, president of the Pest County Assembly, called cooperation with China a “rock-solid pillar” in a turbulent world and said deeper ties could help southern Pest County close the gap with Budapest and its surroundings. Zhao Ruying, deputy head of the Jiaxing Municipal Committee, noted that Cegléd and Jiaxing had maintained relations since 2015, and the new center would act as a bridge between the Chinese city and Hungary. He added that the facility could invigorate the market, bolster SME growth, and contribute to the economic development of both Cegléd and Hungary.

Fiscal Council: 2026 Growth Target Achievable, Risks Persist

Despite global economic uncertainty, the government’s growth target for 2026 remains attainable, the Fiscal Council said in a statement issued on June 11 in connection with the draft central budget bill for next year. The council warned that ongoing geopolitical tensions and rising trade conflicts pose downside risks, although planned fiscal stimulus in several European Union countries, including Germany, may support Hungary’s prospects. The 2026 budget bill forecasts 4.1% economic growth, but the council noted that current conditions could negatively impact performance in the 2025 base year. It emphasized the importance

of reducing the general government sector deficit to below 3% to move toward a budget balance. While acknowledging the 3.7% of GDP accrual-based deficit target for 2026, the council cautioned that if economic growth underperforms, tax revenues could also fall short, recommending a significantly higher reserve than the currently planned HUF 50 bln for extraordinary measures. The council stated that the government’s debt ratio target of 72.3% of GDP could be met under assumptions of 4.1% real GDP growth, a 4.4% of GDP cash flow-based deficit, and a 3.7% of GDP ESA deficit but warned that weaker economic performance could complicate meeting these goals.

Windfall Taxes

Enshrined in Law

Parliament voted on June 11 to enshrine windfall profit taxes initially introduced under state-of-emergency regulations into law, with 127 votes in favor, 46 against, and seven abstentions. According to a statement issued yesterday, the legislation makes permanent the special taxes imposed on banks, oil companies, and retailers. It also codifies an increase in the VAT exemption threshold, raising it from an annual revenue of HUF 12 million to HUF 18 mln starting Jan. 1, and boosts the tax allowance for companies engaged in joint research and development projects with universities.

Morgan Stanley Launches 1st Charity Competition in Hungary

Morgan Stanley has launched its first civil competition for Hungarian charities, aiming to support innovative initiatives that improve the health, mental well-being, and educational

opportunities of children and youth, according to a press release. The global financial services firm, which employs 3,000 professionals in Budapest, will award winning projects with a GBP 100,000 grant, professional mentoring, and opportunities to build international networks. Applications are open until July 7. Since opening its Budapest office (one of the company’s largest global IT and analytics hubs) in 2006, Morgan Stanley has partnered with Hungarian NGOs on various initiatives.

Polish President Calls

Hungary Key Partner, Pledges to Rebuild V4 Ties

Hungary is a key partner for Poland, newly elected Polish President Karol Nawrocki said in his first foreign interview, published by Hungarian magazine Mandiner. Nawrocki emphasized his commitment to revitalizing cooperation within the Visegrád Group, which includes the Czech Republic, Hungary, Poland, and Slovakia. The bloc has seen diminished prominence since Poland’s liberal coalition led by Prime Minister Donald Tusk replaced the nationalist Law and Justice (PiS) party in 2023, a party known for its close ties with Hungarian Prime Minister Viktor Orbán. “Hungary is a very important partner for Poland […] We face major tasks, such as rebuilding the Visegrád Group, which will be a key platform for me, strengthening NATO’s eastern flank, and reinforcing the Bucharest Nine,” Nawrocki said. He added, “I certainly want to meet Prime Minister Viktor Orbán, who is a very effective politician, as evidenced by his repeated election victories in Hungary. I look forward to good cooperation with him and with other countries in the interest of our region.”

Hungary Sets 2025 Deficit Target at 4.1% of GDP

The Hungarian government aims to reduce the general government deficit to 4.1% of GDP in 2025 and further to 3.7% in 2026, according to a statement issued on the Ministry for National Economy’s website.

State Secretary Kornél Kisgergely said at a press conference on June 10 that the improving economic environment supports the implementation of a strict fiscal policy and ongoing deficit reduction.

He noted that Hungary’s state debt levels are expected to decline further as the primary deficit, which excludes debt servicing costs, remains close to zero. Kisgergely added that credit rating agencies have recognized Hungary’s progress, and the European Commission has confirmed that the country has met its commitments.

He also acknowledged a slight budget deviation due

to macroeconomic trends, with GDP growth now forecast to be under 2.5%, down from the earlier estimate of 3.4%.

In separate but related news, Hungary’s government posted a HUF 129.5 billion surplus in May, bolstered by a HUF 213.5 bln dividend payment from state-owned energy company MVM, according to a statement issued on the Ministry for National Economy’s website. From January to May, the deficit totaled HUF 2.8 trillion.

The central budget gap stood at HUF 2.75 tln, while social insurance funds posted a HUF 99 bln shortfall; separate state funds recorded a HUF 45.3 bln surplus. Interest expenditures amounted to HUF 2.22 tln, an increase of HUF 457.1 bln compared to the same period last year. Revenue from taxes and contributions rose 7.8%, driven by an almost 12% rise in consumption tax revenue.

Hungary and Ukraine Continue to Trade Allegations Over ‘Interference’ Roundup Crisis

Ukrainian President Volodymyr Zelenskyy has claimed in an interview with a Hungarian news outlet published on June 10, that Kyiv previously thwarted several attempts by Hungary to interfere in his country’s internal affairs prior to the “spy scandal” that erupted last month.

“Let’s put it this way: Budapest has tried to interfere in Ukrainian internal affairs in dozens of different ways. You could not have heard about these. […] Most of the cases were dealt with quietly, among ourselves,” Zelensky told Válasz Online.

Although those attempts had been handled discreetly, the Ukrainian Security Service (SBU) made an unprecedented announcement on May 9 that it had detained two agents working on behalf of Hungarian military intelligence. Later that day, both countries expelled a pair of the other country’s diplomats, having accused them of espionage.

“Why did we make the current case public?” Zelensky asked rhetorically. His response suggests that the evidence collected raised questions that he felt needed to be addressed publicly. “I don’t want to threaten anyone, but we do have everything in our possession. […] We have everything documented,” he said.

Ukraine’s president alleged that these details include photos and videos of various meetings organized by the Hungarian Military National Security Service (KNBSz) on Hungarian

territory, as well as information on how the KNBSz paid its agents and a list of questions the agents were tasked with finding answers to and canvassing from the local population in Transcarpathia.

Military-related Activities

According to Zelensky, the Hungarian military intelligence network had been operating in Ukraine since 2021 and started engaging in military-related activities in 2024-25, with the last data transfer occurring on March 25.

“Why was it necessary to look for our vulnerabilities in the UkrainianHungarian border region? Why did the Hungarians want information about where we had deployed the S-300 air defense missile system there?” Zelensky asked. “That’s what they were interested in,” he pointed out. “And where our various military units are stationed.”

While not directly accusing Budapest, Zelensky wondered why Hungarian authorities felt compelled to collect this information, especially after asking NATO officials, who denied having requested that Hungary do so on their behalf.

“I am the president of a country at war; how would you have reacted if you were in my place?” Zelensky

stated. “I don’t blame Viktor [Orbán]; I blame the KNBSz,” he concluded.

Responding to the interview, Minister of Foreign Affairs and Trade Péter Szijjártó said a “puppet government sending Hungarians’ money, weapons, and Hungarian soldiers to Ukraine” would be in Ukraine’s interest.

‘Puppet

Government’

Prime Minister Viktor Orbán had earlier suggested that Brussels and Ukraine were collaborating to assemble a puppet government, with the intention of altering Hungary’s policy on Ukraine after the elections, in an interview with Kossuth Rádió on June 6.

“We should have no doubt that we are facing another political concept and strategy, another future for Hungary.

A pro-Brussels puppet government would mean that the government is pro-Ukraine and the defense minister is pro-war,” the PM said. Emphasizing that “even Hungarian parties do little to disguise that,” Orbán claimed that “Tisza and the [Democratic Coalition] are essentially openly pro-Ukraine political organizations.”

Regarding an upcoming European Union summit, Orbán said the “only topic in Brussels is Ukraine’s EU accession. […] They think in Brussels that Europe is at war, that Ukraine is

its vanguard fighting our war.” Fidesz MEP Csaba Dömötör told Hungarian journalists in Brussels on June 4 that the European Commission plans to fast-track Ukraine’s accession to the EU by 2029, using all available means.

“I am the president of a country at war; how would you have reacted if you were in my place? I don’t blame Viktor [Orbán]; I blame the KNBSz.”

According to a recent survey by government-supported think tank Századvég, public opinion in 11 of the EU’s 27 member states is against fast-tracking Ukraine’s accession to the bloc. The survey cited Hungary, Slovakia, the Czech Republic, Germany, and France as countries where the majority of respondents opposed granting Ukraine preferential entry. While general support for Ukraine’s EU membership was higher in 16 countries, respondents in only 10 countries explicitly backed an accelerated accession process.

NICHOLAS PONGRATZ

Photo

File photo of Ukrainian President Volodymyr Zelenskyy speaking on Feb. 23, 2025.

Indotek Appoints Austrian Finance Strategist Group CFO

Pan-European property investment conglomerate Indotek Group announced the appointment of Austrian corporate finance expert Florian Nowotny as group chief financial officer (CFO) as of March 3, 2025.

Nowotny has extensive experience in real estate finance, capital markets, and corporate management. He previously held senior roles in investment banking at UniCredit and Citi, specializing in M&A and capital markets transactions. He later served as CFO and executive board member of the Vienna-listed commercial property company CA Immobilien Anlagen AG (CA Immo), where he managed financing, accounting, controlling, and investor relations.

His most recent roles include CEO of DDM Holding AG, a Swiss-based investment firm specializing in nonperforming loans and distressed assets across CEE, and senior advisor at global professional services firm Alvarez & Marsal, focusing on the real estate sector. Since 2017, he has served as a non-executive director on the board of Malta International Airport.

In his new role, Nowotny oversees Indotek Group’s financial operations, including international financing, risk management, accounting, taxation, and controlling. He also manages relationships with investors and financial service providers, working closely with Bence Nádasdy, who will continue as Hungarian CFO.

“Florian’s deep expertise in international real estate finance and corporate transactions will be instrumental as we accelerate our expansion across Europe,” said Dániel Jellinek, founder-CEO of Indotek. “His leadership will enhance our financial strategies and strengthen our investor relations, both of which are crucial to achieving our long-term objectives.”

Nowotny added: “I am honored to join Indotek Group at this exciting stage of its international development. I look forward to working with the team to drive value creation and support the company’s ambitious growth strategy across key European markets.”

Marta Zawadzka Back at TriGranit as Head of Leasing and Asset Management

Marta Zawadzka has rejoined TriGranit after nearly a decade as head of leasing and asset management. She will oversee leasing activities while also supervising leasing strategies across TriGranit’s portfolio in CEE.

With more than 20 years of experience in the Polish and European real estate markets, Zawadzka has extensive expertise in leasing, asset management, and commercial strategy.

“I am thrilled to rejoin TriGranit after nearly a decade,” said Zawadzka. “It’s an exciting opportunity to contribute to the growth and development of the group’s assets. I’m also delighted to be back in the Warsaw and Kraków office markets, reconnecting with my agent colleagues and industry peers with whom I have collaborated for so many years.”

Tomasz Lisiecki, CEO of TriGranit, commented, “We are delighted to welcome Marta back to TriGranit. Her return strengthens our leadership team at a pivotal time as we continue to scale our activities in Poland and across the region. Marta’s deep knowledge of the CEE real estate market and her strategic mindset will be invaluable in driving the leasing success of our flagship projects like Signum and B4B.”

LIXA, and the retail component at Soho by Yareal. Before that, she held leadership roles at Avestus Real Estate, Neinver, Kulczyk Silverstein Properties, GTC, and TriGranit itself.

Promotions, Partner Appointment at PortfoLion

Alongside several colleague promotions, PortfoLion Capital Partners, the venture and private equity fund manager belonging to the OTP Group, announced the appointment of  Zsolt Mihály  as a partner.

The newly appointed partner has participated in several transactions over the past eight years, including acquisitions related to the Szallas Group, the minority stake purchase in Poland’s 4FIZJO at the end of last year, and the EUR 8.5 million investment round of Coding Giants.

Mihály began his investment career eight years ago as an analyst at PortfoLion, later becoming an investment manager and then principal. He gained significant experience in the private and growth equity fields. His focus is often on companies that already have a large market share locally and aim for international expansion.

He currently works with portfolio companies such as Pepita, a major player in the Hungarian e-commerce market; Codecool from the edtech sector; Poland’s Coding Giants; Finshape, a developer of banking software; and 4FIZJO, a regional e-commerce platform aiming for market leadership.

András Molnár, CEO of PortfoLion, said, “We are particularly pleased about the appointment of Zsolt Mihály as a partner, as over the past years, he has carried out every task entrusted to him at a level characteristic of partners. Thus, this step is more of a formality, a natural acknowledgment that Zsolt is a key player in the regional private equity market and in shaping PortfoLion’s future.”

hand, itis a gratifying feeling when recognition comes from those who have the greatest insight into my work.”

Alongside Mihály, four investment professionals also hold new titles starting this year: Richárd Rusznák as senior investment associate, Balázs Branauer and Péter Máthé as investment managers, and Dániel Kiss-Király as principal.

Zoltán Gazsi Departs Eisberg After Nearly 2 Decades

Zoltán Gazsi stepped down from his role at Eisberg in June after nearly two decades. Gyula Pál, the company’s former head of operations and purchasing, who has also been with the company for 20 years, succeeds Gazsi, having taken over as managing director in July 2024. Gazsi took over the leadership of Eisberg Hungary in 2007, bringing his sales and marketing experience from domestic and international companies. His name has been linked to several social initiatives, educational programs, and awards; he is known as an ambassador for the KórházSuli program, a board member of BCSDH, and a recipient of the “Manager of the Year for Society” award.

Under his leadership, Eisberg became the market leader in the packaged salad category in Hungary and, as part of the Bell Food Group, a key player in the CEE region over the past decade. Pál, meanwhile, spent many years overseeing procurement and later supported the company’s domestic and regional development as operations manager.

“Zoli is the best friend and mentor. I have learned a lot from him over the past years. The values he introduced have become and will remain the cornerstones of Eisberg in the future. We wish him all the best on his new journey on behalf of the company and colleagues,” said Pál. “I am proud of what we have built together at Eisberg over the past 20 years. The team, the brand, and the values we represent will remain important to me, and I will try to continue promoting them every day as I meet new people and build something new,” Gazsi said in his farewell message. WHO’S

office investment in Warsaw,

Mihály commented on his appointment: “On one hand, it is an honor, and on the other

Zawadzka most recently served as leasing and asset management director at Yareal, where she was responsible for leasing office and retail spaces, including the developer’s flagship

Florian Nowotny

Marta Zawadzka

Zsolt Mihály

Zoltán Gazsi

2 Business

AmCham Digital Impact Day: Staying Ahead in the Age of Digitalization

The American Chamber of Commerce in Hungary hosted its first Digital Impact Day on May 28 at the Telekom Campus. It brought together leading professionals and key policymakers from various fields to discuss the future of AI and digitalization in business, and how they are shaping the critical areas of healthcare cybersecurity, and the workforce.

LUCA ALBERT

“AI and digitization is no longer just a trend,” remarked Ákos Janza, president of AmCham Hungary, kicking off the event. The central theme was “what it takes for businesses to stay ahead in the digital race,” as leaders from various fields presented their opinions, predictions and advice on the future of digitalization in business.

The keynote speech was made by Krisztián Orbán, a public intellectual, who discussed the future of warfare and its threats to globalization and international trust. He discussed anticipated shifts in global political power frameworks, stressing that with today’s evolving world order, although digitalization is a strategic tool in competition, it can also be an evolved weapon.

In the context of warfare, Orbán said, “Freedom is no longer the keyword; It’s security,” pointing out that digital technologies are becoming fundamental to domestic statecraft.

On the topic of security, Orbán noted that digitalization is part of a larger exposure to digital challenges. He explained that, with the evolution of digital threats, security now hinges on technological processing speed and power rather than old-fashioned intelligence.

Future developments in digitalization are anticipated to shift the focus to more B2B solutions, although B2C innovations are not expected to cease anytime soon.

Orbán further commented that, despite the benefits of modern technology, including increased efficiency, faster workflow, and enhanced digital proficiency, there is also recent concern surrounding the decline in the wellbeing of children and young adults.

The National Strategy

Next, László Palkovics, Government Commissioner for AI, provided an in-depth analysis of Hungary’s AI strategy, detailing recent and upcoming plans for funding, the challenges the country faces in the field, and focus areas for using artificial intelligence in business.

Private and public investments from large tech companies into the advancement of AI have reached more

János Horváth-Varga, head of AI at Magyar Telekom, Levente Juhász, public policy manager at Google, and Patrik Tovarys, public policy manager for Central and Eastern Europe at Meta.

The Drone Threat

The event continued with an informative presentation on drone detection and security by Andrea Simpkins, a specialist in uncrewed aircraft at T-Systems International.

She emphasized several key reasons why drone detection is increasingly relevant in the age of digitalization, not least that the number of drones worldwide is expected to grow significantly between now and 2030, and the general misuse of drones is also on the rise.

Simpkins warned that critical infrastructure is especially vulnerable to drone attacks and stated that radio frequency drone detection is currently the most effective form of anti-drone security due to its high reliability, precise localization of both the drone and its pilot, and wide area coverage.

“Freedom is no longer the keyword; It’s security.”

The technical field testing of this method has been carried out through two trials, the first in downtown Berlin and the second at Frankfurt Airport. The RF drone detection method proved so successful it was employed during the 2024 UEFA European Football Championships in Germany.

than “USD 200 billion since 2020,” with leading states in the EU also investing billions of dollars into developmental programs, according to Palkovics.

He also highlighted the role of the European Digital Innovation Center (EDIH), with its targeted training and mentoring programs, financial incentives for AI development and its efforts to standardize and simplify the use of AI tools.

He listed the three national focus areas in AI for business solutions as “AI optimized manufacturing processes, SME transformation projects and AI-based logistics for more efficient supply for chains.”

Palkovics also noted three principal challenges in the global evolution of AI, namely its development and application in defense-related areas, its integration into the labor market, and the use of real infrastructure and data instead of models.

Following Palkovics’s detailed summary of Hungary’s AI strategy, Imre Somogyi, CEO of Attrecto and the leader of AmCham’s newly established Digital Working Group, moderated an engaging roundtable discussion on digital transformations in business solutions and how to navigate AI-driven digitalization.

The roundtable comprised domestic and global tech leaders, with the speakers being Commissioner Palkovics,

After the individual presentations and the keynote roundtable discussion, three breakout groups concluded AmCham’s Digital Impact Day.

The first of these was a roundtable discussion titled “The Future of Work.” Panelists examined the effects of AI and digitalization on various areas within HR, as well as the importance of cultivating human values and implementing “forward-looking strategies” in the workforce.

The second breakout session, with the theme “Cybersecurity and Data Privacy,” featured national cybersecurity professionals discussing the most effective defense systems against the most significant threats in the digital age. Panelists analyzed the potential future adverse effects of the misuse of AI and quantum technology, emphasizing the importance of educating both employers and employees about the protective measures they can take to mitigate these risks.

The third breakout discussion centered on “Digital Health,” discussing how “high-quality health data can lead to a more efficient and patient-centered healthcare ecosystem.” Healthcare professionals shared their views on the handling and standards of healthcare data, as well as the necessity for “close collaboration between public and private healthcare stakeholders” in conjunction with progressive government practices.

From left, László Palkovics, Government Commissioner for AI; Patrik Tovarys, public policy manager for Central and Eastern Europe at Meta; János Horváth-Varga, head of AI at Magyar Telekom; Levente Juhász, public policy manager at Google, and Imre Somogyi, CEO of Attrecto (moderator).

Hungarian Wine Turns from ‘Prestige and

Power’ to ‘Enjoyable Drinking’

Bence Csizmadia, head of wine at Bortársaság, Hungary’s largest dedicated wine retailer, describes changes in the domestic market over the past decade and offers thoughts on the sector’s future.

Entering Bortársaság’s flagship shop, a minute’s walk from Budapest’s Clark Ádám tér, a glance to the right reveals an imposing wall of domestic wines. It contains the largest segment of the chain’s 600 different wines currently available, with the domestic offering ranging from some bargain-basement selections at HUF 2,200 to the likes of Oremus’ Petrács Furmint Magnum for HUF 91,500.

“I think we’ve reached a manageable portfolio; maybe it’s even a bit bigger than it should be. The biggest part is whites and, of course, reds, sparkling, rosés. A little part is sweet wines, mainly Tokaj,” Csizmadia tells the Budapest Business Journal in an interview.

Naturally, the selection includes imports, dominated by French, Italian and Spanish wares, as well as a sprinkling from the likes of Germany, Chile and New Zealand.

It’s an intriguing list, but so are the changes in tastes, fashion and winemaking that have brought it to what it is today.

The 31-year-old head of wine points to the emergence of high-quality, domestic sparkling wine, pioneered by József Kreinbacher, based in Somló, western Hungary, as a “turning point” in the country’s more recent viniculture history.

Launching a New Era

“In 2014, Kreinbacher introduced their first méthode traditionnelle [the process used in Champagne] sparkling wines. This was a new era, in which enjoyment became the most important thing in wine because, before that, it was more the prestige and power [of the wine brand],” he argues.

Indeed, prior to this, the domestic sparkling wine market had been mainly dominated by sweet, low-cost, tankfermented products used for toasting at family gatherings once or twice a year.

The arrival of the new wave pezsgő has changed that profile, as illustrated by sales.

“Before 2014 at Bortársaság, sparkling sales were marginal. Today, roughly

every 10th bottle we sell is bubbly,” Csizmadia says, although he senses the boom “topped out” around 202122. The trend towards enjoyable drinking, away from what he terms “power and prestige” wines, has also affected other categories.

“I think we are tending to move towards enjoyment, the easier drinking wines. Rather than pushing everything into a bottle, we are trying to put a very fine, detailed and elegant wine inside, and not something like a hammer,” he says. He notes a shift away from heavier reds, which have seen a 10% decline in sales over the past decade, towards whites, which have seen a 10% increase.

(However, somewhat out of kilter with this theory, Csizmadia admits that rosés, which are also typically easy-drinking wines, have also seen a 10% drop off.)

What, though, of the future? Will Hungarian palates, eager for new experiences, become a little less patriotic and turn more to foreign wines?

(According to the Central Statistical Office, in 2023, the most recent available data, the country imported 7.5 million liters of wine or just 4% of total domestic consumption of 188 million liters.)

In truth, Bortársaság can claim to have “done its bit” for international vintners, with more than 100 foreign winemakers represented in its portfolio.

Classical Showcase

“Our idea has been to showcase the classic wine regions of the world and, next to those, some of our favorites. There are a few categories, such as Primitivo and New Zealand Sauvignon Blanc, where there was an obvious demand, and we sourced wines like those. However, while we work with a lot of foreign wineries, still, 94% of our sales by volume is Hungarian wine,” Csizmadia admits. He adds that there are no plans to introduce wines, for example, from Macedonia, Georgia or Greece.

Then there is the issue of the new generations and an increased focus on good health and rejection of alcohol consumption. While this is naturally a threat to all alcoholic beverages, the Bortársaság leadership believes wine is in a good position to manage this, being “closer to nature” than most competitors.

“If you decide to only drink occasionally, when you drink, you’d like to have a story behind it; you’d like to know the guy who made it and the place it’s from, [so] you’d most likely go towards wine,” Csizmadia reasons.

As a result, the wine purchasing team works continually with vintners to maximize the potential of their vineyards and local grape varieties, thereby personalizing their products.

“If I look at wines where we’ve been most successful, if we introduce a Kéknyelű or a Kadarka [both local grapes], even if it’s only tiny quantities, if the wine is good and the story is authentic, we can be very successful with it,” he says.

Even for many otherwise informed imbibers, the wines of Greece are largely unknown, and for good reason. As Grigoris Michailos, founding partner and development manager of Great Greek Wines, admitted in Budapest in May, “Greece has more than 300 varieties. I don’t think even we are sure about how many we have […] it is very complicated.”

Michailos was in town to present 10 of his country’s best wines at a tasting for Hungarian traders, journalists, hoteliers and restaurateurs. However,

with 96% of total wine consumption comprising domestic production, introducing foreign-country wines in Hungary is an uphill battle.

Yet Michailos had a fellow crusader for Hellenic wines in his audience and one with hands-on experience.

Levente Habány has been marketing and selling fine Greek wines on a part-time basis in Hungary for four years, building sales from 400-plus bottles in 2021 to some 2,200 last year.

“In Hungary, what you’ll see in the shops is usually bottom-shelf Greek wines […] People think that

Greece has two products, Retsina and Mavrodaphne […], but there are so many beautiful Greek wines,” he tells the Budapest Business Journal

Value for Money

Moreover, such wines are “really good value for money,” Habány argues, pointing to the Kir-Yianni Ramnista, “a sophisticated wine” from northern Greece that costs one-third of a typical French competitor of the same quality.

(Budaizöld.hu, Habány’s website, offers 34 Greek wines, with prices ranging from HUF 3,500 to HUF 17,800, the latter a temptingly dark ruby Alpha Estate “Barba Yiannis.”)

Outside his day job in banking, Habány puts in a shift marketing at fairs and hosting tastings, though, for all his enthusiasm, he admits, “The market is very patriotic, penetration is slow. This is a hobby for me, more than a business. Maybe it will always remain so […] but I don’t mind.”

Michailos, too, is under no illusions, telling the BBJ it is “very unlikely” his country’s wines will ever become mainstream in Hungary. But, as he puts it: “Selecting a bottle of Greek wine is an act that advocates vinodiversity, nurturing an exciting, pluralistic, multicultural global vineyard, rather than leaning towards worldwide homogeneity.”

Greek Wine: Flying the Blue and White Flag in Budapest

Bence Csizmadia, head of wine at Bortársaság.

Radical Reform the Prescription for Private Healthcare to Flourish

For Hungary’s private healthcare sector to really develop to the benefit of businesses, staff and patients, the type of reform that Türkiye went through in 2005 needs to be implemented, according to the boss of one of the biggest private hospitals in Budapest.

Ahmet E. Usta is the Hungary country director for Istanbul-based healthcare provider MLP Care. One of its two hospital brands, Liv Hospitals, acquired the Duna Medical Center in 2023, and he moved to Budapest to run its operations a few months later. He must be doing something right: the clinic now sees 50,000 patients a year.

“We took it over in October ’23. I came in February ’24, and in that last year, patient revenue has almost doubled.”

That is based partly on adding more doctors and extending opening hours so more patients can be seen at their convenience. When asked how many staff he has, the answer is immediate: 210. And how many is he aiming at?

“Over 300, if we were at full potential, but by the end of the year, I think it will be 222225. I want to grow, and we are growing.”

The next area of expansion might seem surprising, given Hungary’s reputation for dentistry and the relatively common phenomenon of dental tourism here, but the fact remains that, until now, Liv Duna has not been able to serve that market.

“Seeing a huge opportunity for growth, we are starting our dental unit next month, and we are also planning to launch a state-of-the-art neurology, dementia and Alzheimer’s center. We are hopeful that it will be a primary driver in our revenues,” Usta says. It is not the only area of expansion at the facility.

“In orthopedics, we made a robotic device investment, and that is giving us good results. So far, we’ve done about 100 robotic cases, and now we are starting trauma and other services in that area,” he explains.

Improving Brand Recognition

“While maternity numbers are not growing in the country (indeed, the population is shrinking), we will add gynecological oncology to enhance

the service. Overall, our plan is to add new units and improve the brand reputation.”

The latter point is interesting. Since MLP took over an existing clinic rather than building one from scratch, potential staff and patients may already have a preconceived notion about the facility on the Pest shore of the Danube.

“Everybody has opinions based on what was there before. It takes time for people to change their minds and adopt new ideas. It’s quite challenging to move the status quo. So, part of the approach is also adding new quality doctors, and then, by word-of-mouth, spreading it to the people.”

He adds that another target for this year is to increase international medical tourism. However, finding the quantity of quality staff required to ramp up services has proved unexpectedly challenging.

“That’s a huge problem,” Usta admits. Much of it is due to a lack of labor mobility. The country manager says he has interesting work to offer in a good environment and with a competitive salary, but still, he struggles.

“I would say 80-90% of it would be that they don’t want to move. They’re happy enough where they are. [.…] It’s also a cultural thing, I guess.”

Is there a danger that not being able to source enough quality staff will hinder Liv Duna’s ability to grow?

“Yes, to grow, definitely. I need at least one or two full-time physicians in every department. Let’s say I have

Usta says specific fields, such as chemotherapy and IVF treatment, are not possible in a private setting because the state won’t license them. Invasive cardiology or cardiovascular surgery is theoretically possible, but in reality, the system mitigates against it.

This is precisely the situation Usta says Turkey was in 20 years ago. A similarly radical change in Hungary is his prescription for freeing up the market and providing much better care for all.

He says that allowing complex private medical care, especially if a co-payment system were adopted (meaning that “public” patients could use private facilities at a fraction of the cost), would enable private healthcare to flourish. That would, in turn, force the public system to raise its game. The biggest beneficiaries, he argues, would be the patients, regardless of where they received their care.

an international patient from Bosnia requesting a consultation, a second opinion. Where’s the doctor? I’m trying to reach the doctor, and he answers the next day. By then, that patient has already found another doctor somewhere else,” the country director says.

The attitude, he admits, has somewhat surprised him; the Turkish approach is very different.

Fight for the Patient

“You should fight for the patient. I grew up like that. The most difficult thing was convincing people to walk into the hospital. Once they are in, they cannot go anywhere else. We have to fix all their problems, but you can only do it if you have the professionals, the doctors, and many of them are reluctant to move out of the public system. They don’t want to move.”

MLP’s background is in the provision of complex hospital care. It runs hospitals as one-stop shops where patients can address all their medical needs. Under the current medical regime in Hungary, that’s not possible.

MLP Care, the parent company of Liv Duna Medical Center, is an internationally recognized healthcare provider with more than 31 years of experience in delivering advanced, multidisciplinary medical services. MLP Care

“Let’s put it this way: unless there is a system change, having double-digit EBITDA is a dream for a complex care environment like this. I think that explains everything. Double-digit EBITDA for outpatient centers is very possible, but for complex hospital care? I would like to be the first guy to do it here!”

“Let’s put it this way: unless there is a system change, having doubledigit EBITDA is a dream for a complex care environment like this. I think that explains everything. Doubledigit EBITDA for outpatient centers is very possible, but for complex hospital care? I would like to be the first guy to do it here!”

Usta studied at Virginia Tech in the United States and worked for 20 years in Türkiye. Is there anything Hungary could teach the world?

“The work-life balance is much better here. And we Turks are very ‘bendable.’ Here, it’s very structured and has a logic of its own. If you understand and accept the logic, it makes sense. We could learn from that. In Türkiye, maybe sometimes we move too fast. Maybe we could be a little more structured, in a systematic way. And maybe Hungarians could be a little more flexible.”

manages a global network that spans Azerbaijan, Dubai, Hungary, London, and Kosova, as well as Türkiye. The group says its 36 hospitals have a combined bed capacity of 6,500-plus, treating nearly 7.5 million cases annually.

ROBIN MARSHALL

Ahmet E. Usta

Role Models and Good Practices: BCSDH Driving Systemic Change

The Hungarian Business Council for Sustainable Development launched the 2025 application period for its “For a Sustainable Future” Award at its inaugural Sustainable Future Inspirational Breakfast at the Budapest office of regional law firm Kinstellar on May 27. The prize recognizes individuals and companies that not only talk about sustainability but deliver measurable, systemic change.

Opening the event, Balázs Sepsey, managing partner of Kinstellar’s Budapest office, set the tone by emphasizing the importance of creating spaces for genuine dialogue on sustainability. His remarks underscored the role of legal and corporate professionals in facilitating the necessary transitions to a greener economy.

This sentiment was echoed by Attila Chikán Jr., the president of BCSDH, who, in his welcome speech, highlighted the urgent need for decisive action as climate change intensifies and affects the daily operations of businesses worldwide.

“As we face growing challenges to sustainability, and as the impacts of climate change are increasingly felt in day-to-day business operations, swift action is more important than ever to make our systems more sustainable and resilient,” Chikán said. He emphasized that the award and the breakfast event were designed to inspire companies and leaders to integrate sustainability into every aspect of their decision-making and to go beyond traditional approaches.

The BCSDH’s goal is to create a platform that celebrates authentic leadership and encourages participants to embrace sustainability not as a mere compliance exercise but as a core strategic driver. The event also demonstrates how these practices can be scaled across entire industries, bringing about real and lasting impact and ultimately accelerating systemic change.

Irén Márta, BCSDH director and moderator of the event spoke passionately about the importance of sharing success stories. She underscored that achieving true sustainability at the corporate level requires leaders who are not just credible but also deeply committed. Márta emphasized that the path to sustainability is neither simple nor straightforward; it involves constant learning, adaptation, and, above all, the courage to challenge established norms.

Roundtable Highlight

A highlight of the event was the CEO roundtable, moderated by István Salgó, honorary president of BCSDH. The discussion brought together top executives who are setting new standards for sustainability within their companies.

The panel featured Zoltán Dapsy, managing director of Continental Automotive Hungary Kft.; Anikó Körmendi, CEO of Arriva Hungary Kft.; Zsuzsa Nagy, managing director of E.ON Energy Solutions Ltd.; and Károly Nyári, vice president and head of group finance at Grundfos A/S. They shared candid reflections on their personal journeys, the motivations driving their dedication to sustainability, and the obstacles they have overcome along the way.

The executives spoke openly about the cultural changes they had to champion within their companies to prioritize sustainability, acknowledging that real progress requires a collective mindset shift across all organizational levels.

The event also showcased four outstanding initiatives that won the

“For a Sustainable Future” Award, offering practical examples of how sustainability can be integrated into business strategies. K&H Bank’s

Agricultural CO₂ Calculator, presented by Zoltán Demeter, was developed to support farmers in accurately measuring and reducing their carbon footprints. The project highlights the financial sector’s critical role in driving agricultural sustainability and helping the broader economy transition to low-carbon practices.

László Karafa, head of mining and sustainability at Saint-Gobain, introduced the company’s biodiversity program, which focuses on ecological restoration in areas impacted by mining activities, demonstrating how industrial operations can be reconciled with nature conservation.

Gábor Farkas, managing director of SolServices, shared his firm’s professional guide for nextgeneration solar parks, a resource that promotes biodiversity-friendly solar developments and demonstrates how renewable energy can coexist with ecological stewardship.

Tesco’s “Fighting Period Poverty” program, described by Nóra Hevesi, head of communications, tackled social equity. The initiative addresses menstrual health and hygiene challenges in underserved communities, reinforcing the idea that sustainability is as much about social progress as it is about environmental conservation.

Transformation and Innovation

This year, the “For a Sustainable Future Award” categories remain focused on recognizing leadership, transformation, and innovation in sustainability. The four categories are: Change Leader, honoring individuals for exceptional sustainability leadership; Leading Woman, celebrating outstanding female

leaders; Corporate Transformation, recognizing significant strides toward integrating sustainability across a company’s operations; and Business Model / Business Solution, highlighting innovative approaches in critical areas such as the circular economy, climate adaptation, biodiversity preservation, and human value.

The 2025 awards are open to applications until July 18.

The categories are designed to capture not only the tangible outcomes of sustainability efforts but also the processes, partnerships, and creative problem-solving that underpin them.

Throughout the breakfast event, one consistent theme emerged: the idea that role models and good practices have the power to spark systemic change. By sharing what works and learning from each other, companies can collectively raise the bar for sustainability in Hungary and beyond.

The BCSDH says this spirit of shared responsibility and mutual support is at the heart of its mission.

Several speakers emphasized the importance of cross-sector partnerships and open dialogue, highlighting that genuine progress hinges on collaboration among companies, industries, and public institutions. They noted that while climate change and social inequalities may seem overwhelming, collective action is the key to unlocking solutions that work for everyone.

For those considering applying for the 2025 awards, the message was clear: now is the time to act boldly and lead by example. BCSDH’s initiative is more than just an awards program; it is a call to build a more sustainable and equitable future for all.

GERGELY HERPAI

CEO roundtable discussion, moderated by István Salgó, honorary president of BCSDH (far left) and featuring Anikó Körmendi, CEO of Arriva Hungary Kft.; Zoltán Dapsy, managing director of Continental Automotive Hungary Kft.; Zsuzsa Nagy, managing director of E.ON Energy Solutions Ltd.; and Károly Nyári, vice president and head of group finance at Grundfos A/S.

Waberer’s Q1 EBIT up 29.3%, Pre-tax Profit More Than Doubles

Waberer’s International Nyrt. has reported a marked improvement in its profitability indicators during the first quarter of 2025. According to the company’s recently published flash report, EBIT increased by 29.3%, while pre-tax profit more than doubled.

The group, which is listed in the Premium category of the Budapest Stock Exchange, also experienced a considerable rise in both revenue and profitability in its insurance division, bolstered by its acquisition of the Posta Insurance companies.

Although the group’s revenue experienced a marginal decrease, effectively stagnating compared to previous periods, Waberer’s nonetheless reported significantly improved profitability in Q1. The firm’s management says the results stem from the company’s ongoing structural evolution and strategic diversification efforts.

Waberer’s total Q1 revenue amounted to EUR 194.4 mln, a 1.2% decline when measured against the EUR 196.7 mln posted in the same period of 2024. But with the company’s operating profit a year-on-year increase of 29.3%,

pre-tax earnings grew sharply by 193.3%, climbing to EUR 10.1 mln.

Net profit saw particularly notable growth, rising to EUR 7.5 mln compared to just EUR 1.1 mln recorded in the same period last year. This surge equates to a remarkable 585% increase in bottom-line performance. In addition, the EBIT margin, a key profitability metric, improved from 4.3% to 5.7% over the same period.

“The Waberer’s Group has significantly expanded and diversified its activities over the past two years, which aligns with our published strategy. We have expanded in the

area of rail logistics, entered the Serbian distribution market, launched major warehouse development projects, and begun to build a portfolio of sea and air freight services,” says Zsolt Barna, chairman and CEO of Waberer’s International Nyrt.

Expanding Presence

“In the insurance segment, the acquisition of the Posta Insurance companies has allowed us to expand our non-life insurance offerings further, and we have also entered the life insurance segment, which performed particularly well during the past quarter,” Barna notes.

“Thanks to these projects, Waberer’s was able to increase its EBITgenerating capacity by nearly 30% in the first quarter, despite the fact that our core warehousing, distribution, and freight transport activities were faced with stagnating or even declining volumes in some areas due to Hungarian and European macroeconomic trends,” he adds.

Waberer’s has also taken significant steps to simplify its corporate structure further and enhance transparency across its business segments. While the group previously operated within three distinct areas (international transportation,

and Hungarian macroeconomic conditions, and declining domestic logistics volumes all contributed to the reduced operating profit.

Strong Performance

By contrast, the insurance division achieved a particularly strong performance in the same period. This success was driven primarily by including the Posta Insurance companies’ results, which were integrated into Waberer’s financials for the first time during Q1 2025.

As a result, revenue within the insurance segment rose by 87% yearon-year, reaching EUR 39 mln. At the same time, the insurance business EBIT surged by 62%, totaling EUR 9.6 mln.

Although the performance of Gránit Biztosító showed a slight decline compared to the base period, primarily due to reduced investment income following the acquisition, this was effectively counterbalanced by a successful sales campaign conducted by Posta Életbiztosító. That led to increased sales of single-premium combined life insurance products.

“The insurance segment has now reached a scale where its revenue and profit are comparable to our logistics operations. In the medium term, we are actively considering a potential stock exchange listing of our insurance division, which would further improve transparency around its true value.”

contract logistics (RCL), and insurance), going forward, it will be organized into two principal business segments: logistics and insurance.

Within the logistics segment, revenue during the first quarter of 2025 declined by 10%, dropping to EUR 156 mln compared to

Q1 2024.

This contraction can be attributed to a range of factors, including a strategic reduction in fleet size within Link, the company’s Polish-based international transport subsidiary, due to revised business strategies. In addition, the customer portfolio in the in-house logistics segment underwent structural changes.

While these developments resulted in decreased performance in some areas, part of the loss in revenue was offset by increased activity in waste transportation and growth in so-called third-party warehouse development services. Nonetheless, EBIT in the logistics segment amounted to EUR 1.4 mln, representing a EUR 1.2 mln decline from the previous year.

The lost contribution from in-house logistics, persistently low price levels in international freight transport, stagnation in European

“The insurance segment has now reached a scale where its revenue and profit are comparable to our logistics operations. In the medium term, we are actively considering a potential stock exchange listing of our insurance division, which would further improve transparency around its true value,” Barna adds.

Looking toward the future, the company has reaffirmed its primary strategic ambition: transforming Waberer’s into a market-leading integrated logistics provider within the Central and Eastern European region. That will require substantial investments, and the group plans to allocate at least

EUR

400 mln to capital expenditures between 2025 and 2030.

These funds will support the expansion of Waberer’s national warehouse development network and its broader efforts toward regional growth and territorial expansion. According to the group’s strategic roadmap, by 2031, annual revenues may reach as high as EUR 1.7 billion, while EBIT is projected to surpass EUR 100 mln.

Photo by Gergely Herpai

Zsolt Barna, chairman and CEO of Waberer’s International Nyrt.

3 Special Report

Automotive

Hungary Strengthens Position as Automotive Hub in Europe

Hungary is solidifying its status as a key automotive hub in Europe, attracting significant investments and innovation projects from both Western and Asian manufacturers. As the global automotive industry undergoes one of its most profound transformations, driven by electrification, digitalization, and sustainability, Hungary’s strategic location, skilled workforce, and investorfriendly environment continue to make it a destination of choice for automotive companies.

to establish its European business and R&D headquarters in Budapest, marking a significant milestone in the country’s industrial ambitions.

“The first step is to secure production capacities and then to advance towards the highest possible value-added activities,” Hipa said. “The ultimate goal is to secure Hungary’s position as a manufacturing base and as a regional center for business services and innovation.”

In parallel, Western OEMs are also expanding their footprint. MercedesBenz recently completed construction of its second factory in Kecskemét, which will manufacture the company’s premium electric vehicles. Once operational, the site will represent the country’s largest vehicle manufacturing capacity.

Hipa recently revamped its investment incentive schemes to attract R&D centers, test facilities, and engineering hubs. These measures aim to keep Hungary competitive in the increasingly innovation-driven automotive sector.

“Outside of Germany and China, Hungary is the only country in the world where all three major German premium automakers, Audi, BMW, and MercedesBenz, maintain a significant presence,” the agency says with evident pride.

Automotive in Hungary

Automotive Legacy 120 years

are also influencing investment strategies. Automakers must navigate an increasingly complex compliance landscape while continuing to innovate and maintain profitability.

At the 11th Hipa Automotive Conference on May 13, co-hosted by the German-Hungarian Chamber of Commerce and Industry, executives from all the major OEMs based in Hungary voiced their support for the government’s approach. Despite global headwinds, they agreed that Hungary’s automotive sector remains resilient, adaptable, and well-positioned to manage the transition to electrification.

With a 120-year legacy in vehicle production, Hungary offers distinct advantages over many other Central and Eastern European countries. According to the Hungarian Investment Promotion Agency, the country boasts a robust industrial base, a deep talent pool, an expanding R&D ecosystem, and advanced infrastructure. These are bolstered by some of Europe’s most competitive tax incentives and a government committed to supporting the sector. Since its inception in 2014, Hipa has supported 244 large-scale automotive investment projects. The agency’s strategy aims not only to secure manufacturing operations but also to elevate Hungary’s position in the value chain by attracting business service centers and innovation hubs.

A landmark development unveiled in December 2023 was Chinese EV giant BYD’s announcement that it will build its first European production plant in the university city of Szeged (some 175 km southeast of Budapest by road). The company expanded on that ambition this year when it revealed in mid-May plans

Meanwhile, BMW is finalizing its new plant in Debrecen. Series production is expected to begin this fall, further boosting Hungary’s capacity in premium vehicle production.

Continental Connectivity

These investments reflect a larger economic development policy centered on what Hipa describes as “Eastern Opening and connectivity.” While this includes attracting Asian capital and know-how, it also emphasizes Hungary’s role as a bridge between East and West.

This collaboration is evident in the supply chain dynamics: German carmakers operating in Hungary source key components, such as batteries, from Chinese manufacturers with a growing presence in the country. For instance, Chinese battery giant CATL will supply batteries to Mercedes-Benz’s Kecskemét plant from its nearby facility in Debrecen.

Hungary’s well-established automotive ecosystem plays a key role in this success. Opel (now part of Stellantis) and Suzuki have been operating in the country for more than three decades, helping to establish a stable supply chain and a skilled labor force. This foundation has paved the way for nextgeneration mobility investments.

German Premium Automakers 3 (Audi, BMW, Mercedes-Benz)

Major battery manufacturers 5

Source: Hipa

The country also took early steps in embracing electrification. Today, Hungary is home to one of Europe’s most comprehensive EV supply ecosystems, with five major battery manufacturers and numerous e-mobility suppliers. Many of the new players come from China, South Korea, and Japan, reshaping Hungary’s automotive landscape as it transitions to electric vehicles.

While these developments are promising, they also present challenges. EVs typically require fewer mechanical components than internal combustion engine vehicles, posing a risk to traditional suppliers. Companies must adapt to new technologies and prepare for greater competition from global players.

Compliance and Innovation

Regulatory changes in the European Union, such as stricter emissions targets and mandates for green mobility,

“We are navigating challenging times, which makes us even more grateful for the trust that the world’s leading car manufacturers place in Hungary,” Hipa CEO István Joó emphasized at the conference.

The event also highlighted widespread concerns about rising trade tensions and tariff disputes. Industry leaders emphasized the need for constructive dialogue and stable trade relations to support long-term planning and investment.

Despite these challenges, Hungary’s automotive strategy appears wellaligned with the sector’s global trajectory. Through proactive policymaking, targeted investment incentives, and a commitment to fostering innovation, the country is positioning itself not only as a manufacturing base but also as a center of high-tech automotive development.

“Cooperation should be the priority, and the automotive industry is a prime example of the inevitability of global collaboration,” Minister of Foreign Affairs and Trade Péter Szijjártó said at the conference.

As new production lines come online and global brands deepen their ties to the Hungarian economy, Hipa says that its focus remains on ensuring that the country remains competitive in the next era of mobility.

BENCE GAÁL

Italian Polymer Innovation Drives Automotive Dialogue in Budapest

Italian innovation in the automotive industry took center stage in Budapest on May 14, as the “Polymers and Compounds for the Automotive Industry of the Future” conference brought together leading experts, manufacturers, and policymakers at the Hungexpo Budapest Congress and Exhibition Center.

Held under the umbrella of the Automotive Hungary trade fair, the event was organized by Confindustria Ungheria and brought together Italian companies and Hungarian stakeholders to explore the growing role of polymer technology in driving the future of mobility.

The one-day conference highlighted Italy’s increasingly strategic position in sustainable automotive manufacturing. Coordinated by Silvia Merighi, founder of MSP Group and head of the plastics sector at Confindustria Ungheria, the event served as both a technological exhibition and a business networking forum.

It featured institutional support from several branches of Confindustria, Italy’s leading employers’ federation, as well as corporate presentations from leading Italian firms, including Lati, Aquafil, and Cossa Polimeri.

The conference was opened by Roberto Massucco, president of Confindustria Ungheria, and Patrizio Dei Tos, president of Confindustria Est Europa. They emphasized the importance of expanding Italy’s industrial presence in Central and Eastern Europe through strategic alliances, innovation partnerships, and supply chain integration.

“The aim is to create sustainable and long-term collaboration between Italian industry and regional partners in Central Europe,” said Massucco. Dei Tos added that Confindustria Est Europa “firmly supports initiatives that strengthen the Italian industrial presence in the region and promote new connections between companies, regions, and supply chains.”

The keynote from Stefano Sassone, technical director of Confindustria Cisambiente, focused on how circular economy principles and innovation in material recycling are becoming indispensable in meeting both climate goals and upcoming regulatory challenges in the automotive sector.

Innovation, Sustainability, and Excellence

“As Cisambiente Confindustria, the primary voice of Italian companies in the circular economy and environmental services, our patronage of this conference underscores our alignment with key themes: innovation, sustainability, and Italian industrial excellence,” said Sassone.

GERGELY HERPAI

Photo by Gergely Herpai

Patrizio Dei Tos (left) of Confindustria Est Europa and Roberto Massucco from Confindustria Ungheria.

Balance and Timing in Taxation Key to Success in Automotive

Dr. Gellért Menczel-Kiss Partner, Senior tax advisor

LeitnerLeitner

The automotive industry is one of the cornerstones of the Hungarian economy; the technologies that will drive the future of mobility are being created here. The presence of manufacturers such as Audi, BMW, BYD, Mercedes, Opel and Suzuki is not only a matter of national prestige; it also has significant tax and fiscal implications.

For years, Hungary has relied on the combined appeal of a favorable tax environment and targeted state subsidies to attract manufacturing capacity. With a corporate tax rate of just 9%, the lowest in the EU, Hungary is an appealing destination for industrial players seeking longterm returns. In practice, the actual tax burden can be even lower, particularly for large corporations, thanks to tax incentives related to investment, development and R&D. The goal of these incentives is clear: to build new, export-oriented industries while maintaining a competitive edge in global tax competition.

However, due to their size, most Hungarian small- and mid-sized automotive suppliers lack access to the same incentives and can rarely benefit from R&D tax advantages. For these businesses, the key concern is how predictable, plannable, and administratively manageable the tax system is. Without resources for in-house tax experts or innovation departments, minor simplification and stable regulation are more important than attractive theoretical incentives. Nevertheless, it is worth conducting a tax health check, even though volumes are lower, to identify potential tax savings or available government or non-government support.

Although the nominal tax rate is low, increasing the value added has become a key issue. It makes a significant difference whether incoming companies are only engaged in assembly or if they also bring genuine research and development activities. Whether it is electric powertrain

development or vehicle software engineering, R&D is valuable not only technologically but also in tax terms.

A Ladder to Success

Higher value-added jobs, such as engineers, developers, or technologists, lead to higher wages, which in turn mean more income taxes, more social security contributions, and, indirectly, more consumption and VAT revenue. Although R&D activity itself can reduce the corporate tax base, in practice, usually, it is only the larger firms that can fully capitalize on this. Nevertheless, knowledge-intensive operations create a more stable and sustainable economic foundation than simple assembly ever could, regardless of the company size. A vehicle today is not just manufactured; it can be remotely updated and digitally maintained. This creates new types of revenues, often realized in a different jurisdiction from where the car was physically produced. Taxation, therefore, is no longer just a local matter but part of the global mobility value chain where income generated connected to a car might be taxed in various states, even sharpening the tax competition between them.

As we see, taxation in the automotive industry is not a technical footnote; it is one of the pillars of competitiveness. A well-designed tax system not only attracts investment but also encourages long-term, qualitative development, resulting in higher value creation, better wages, and more sustainable tax bases. Companies of any size should be able to exploit the advantages and mitigate the disadvantages. The pace of economic and technological change means that success increasingly hinges on adaptability. Those who make the right decisions at the right time, whether technological or fiscal, gain a crucial advantage. That is why taxation needs to be viewed not just in hindsight but with foresight, where involving experts might help utilize all possible tax credits and benefits to achieve a tax-optimized operation. In modern industry, just as in a vehicle, balance and timing go hand in hand.

LeitnerLeitner’s tax experts have extensive experience in providing highquality, comprehensive consulting services (including tax, accounting, payroll, audit and legal services) to clients in Central Europe. In recent years, we have established a strong track record of successful collaborations in advising on tax incentives, R&D benefits, tax planning, international taxation, and transfer pricing.

Continued from page 13 ›››

“Supporting advanced polymeric supply chains and promoting plastic recycling is crucial for decarbonization and compliance with European directives like the ELV [end of life vehicles],” he added.

The technical heart of the conference was built around presentations from three major Italian material producers who are actively driving forward innovation in the automotive sector.

Lati SpA, a specialist in highperformance engineering thermoplastics since 1945, presented its advanced portfolio tailored for automotive applications.

Ben Hargreaves, Lati’s United Kingdom and Ireland sales manager, outlined the company’s latest compound developments. Its solutions address a wide range of complex demands, from thermal and electrical conductivity to electromagnetic shielding, self-lubrication, and flame retardancy.

The rise of electric and hybrid vehicles has opened new application areas for Lati’s compounds. The company now focuses on providing safe, flame-retardant materials suitable for managing high voltages and currents in battery systems. The firm is investing in sustainability, offering materials made with recycled raw inputs and publishing full data on its carbon footprint reduction. It is IATF 16949-certified and positions itself as a development partner for OEMs and Tier 1 suppliers operating in high-tech segments.

Aquafil SpA, represented by product manager Nicole Soligo, introduced Econyl, a chemically regenerated Polyamide 6 material made entirely from waste sources, including discarded fishing nets, carpets, and textile scraps. The innovation aligns with the End-of-Life Vehicles Directive, allowing OEMs to integrate highperformance, circular-economy materials into their supply chains.

“Econyl performs on par with virgin polyamides but offers a significantly reduced environmental impact,” Soligo noted. “It’s a proven solution for automakers looking to decarbonize and comply with future EU standards.”

Tailored Compounds

Cossa Polimeri Srl, another key participant, presented its range of polypropylene and other compounds, many of which include recycled content and exhibit properties such as flame retardancy, antistatic behavior, and suitability for interior and lighting applications. Luca Ferrari, the company’s senior sales manager, emphasized Cossa’s ability to deliver tailored compounds for lightweight, functional automotive components that meet regulatory and performance demands.

Alongside material demonstrations, the conference also served as a platform to promote business

and technology transfer between Italian manufacturers and Central European automotive suppliers. The final session featured a presentation from OMS Besser Group, a Milan-based manufacturer of injection molds and plastic parts with operations in Hungary, Romania, and Poland. Representing the company, engineer Giuseppe Comi emphasized its commitment to expanding partnerships in the region.

“With more than 50 years of experience and nine industrial facilities across Europe, we are eager to collaborate with companies seeking innovation in thermoplastic injection molding and finishing processes,” Comi said.

“The

aim is to create sustainable and longterm collaboration between Italian industry and regional partners in Central Europe.”

UniCredit was a corporate sponsor, represented by Alessandro Paoli, head of UniCredit International Center Italy. He spoke about the financial sector’s role in supporting industrial transformation through targeted lending, innovation financing, and cross-border market entry strategies.

Held in Pavilion A of the Hungexpo venue, the event was widely seen as a strong signal of Italy’s industrial momentum in Central and Eastern Europe, particularly in automotive materials innovation. While Italy has long been associated with automotive design and mechanical engineering, this event showed that it is also taking a leadership role in supplying high-performance materials that meet the industry’s increasing demands for lightweight and sustainable electrification.

At a time when the automotive industry is undergoing a structural transformation driven by electrification, digitalization, and climate mandates, advanced polymers are more than just materials; they are enablers of a more agile, sustainable, and competitive mobility ecosystem. Events like this one serve to accelerate that shift by connecting innovation with implementation.

The conference highlighted not just the technical capabilities of Italian firms but also their commitment to aligning with evolving European standards on decarbonization, end-oflife material management, and lifecycle sustainability. It also underlined Hungary’s importance as a regional hub for automotive manufacturing and R&D, a point emphasized by the presence of Italian companies already operating production facilities in the country.

in Brief News

Used Auto Imports up 14% in May, Topping 51,000

Used car imports to Hungary rose 13.8% year-on-year to 51,532 in the first five months of the year, listings site joautok.hu said on June 4, citing data from DataHouse. In May alone, imports totaled 10,527 vehicles, marking a 15% increase compared to the same month last year. Website hasznaltauto.hu, this time citing data compiled by Carinfo, came up

New Chinese Brands to Enter the Hungarian Market

Emil Frey to Launch China’s Leapmotor EVs in Hungary

Swiss-owned Emil Frey Hungary will introduce China’s Leapmotor vehicle brand to the Hungarian market, managing director György Balkányi said in a press release on June 10. Emil Frey Hungary has signed an exclusive agreement with Leapmotor International B.V. to import the brand to Central European countries. Initially, the company will offer an

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with broadly similar figures for the month, stating that used auto sales in Hungary increased 14.3% yearon-year to 10,899 in May. In contrast, sales of second-hand light commercial vehicles declined by 13.2%.

Hungary Adds 2,542

New EVs in May

Green number plates were issued to 2,542 new all-electric vehicles in May, according to a post on the Ministry of Energy Affairs’ Facebook page on June 3. The registrations included 2,351 passenger autos. With the latest additions, the total number of battery EVs registered in Hungary has reached 82,300.

electric city car and a family SUV, with plans to release two new models annually through 2027. Leapmotor vehicles will be available at five dealerships in Hungary starting in September, a number expected to rise to 10 in the medium term. Emil Frey Hungary sold around 11,000 vehicles in 2024 and projects sales of 12,500 this year, Balkányi added.

AutoWallis Secures Exclusive NIO Import Rights in 5 Countries

Listed auto dealer AutoWallis has added Chinese electric

Halms Hungary Announces HUF 80 bln Investment

Halms Hungary, a subsidiary of China’s Zhejiang Huashuo Technology, is investing HUF 80 billion in an automotive parts manufacturing facility in Miskolc (185 km northeast of Budapest by road), Minister of Foreign Affairs and Trade Péter Szijjártó announced in a post on his Facebook page on June 2. The investment, to be implemented in three phases, is expected to create more than 1,000 jobs. Szijjártó highlighted that Halms is also building an electric vehicle parts plant in Debrecen (225 km east of Budapest), and the new project will enhance Hungary’s economic output and technological development. The minister added that automotive industry investments have driven Hungary’s economy over the past 15 years, with the sector now employing 160,000 people and generating annual production exceeding HUF 13 trillion.

Sen San-csung, managing director of Huashuo Group, speaks at a press conference announcing the investment of Chinese auto parts manufacturer Halms on June 2, 2025. In the front row at the far left is Minister of Foreign Affairs and Trade Péter Szijjártó. On his right is Katalin Csöbör, the Fidesz Member of Parliament for the Miskolc region.

vehicle brand NIO to its portfolio, securing exclusive importer rights for Austria, the Czech Republic, Poland, and Romania, as well as Hungary, according to a release published on the Budapest Stock Exchange website on June 3. Sales will begin in Hungary and Austria in the fourth quarter of 2025, with expansion to other markets in 2026. With the addition of NIO, AutoWallis now represents 29 brands, including Chinese manufacturers BYD, MG, Farizon, and Xpeng.

Frame Group Driving Automotive Productivity Through Facility Expertise

Executive board member and Frame Group shareholder

Attila Puskás talks with the Budapest Business Journal about the unique challenges of offering facility management services to the automotive industry.

BBJ: How is facility management for the automotive sector different?

Attila Puskás: Frame Group has been a key player in Hungary’s automotive facility management market for nearly a decade. We currently provide facility management services for several Tier 1 and Tier 2 automotive suppliers, our most prominent partnership being with Magyar Suzuki. This long-standing collaboration is a testament to our professional dedication: we deliver tailored, high-standard technical services in tightly regulated and safetycritical manufacturing environments. Automotive facility management is uniquely demanding, requiring extreme precision and tightly scheduled operations. These production sites operate with near-zero downtime, adhering to strict quality assurance protocols. At Frame, we recognize that a well-managed facility plays a crucial

role in enhancing manufacturing efficiency. Whether through preventive maintenance or rapid-response interventions, every process we deliver is focused on uninterrupted operation, safety, and performance.

BBJ: Your services range from design to construction, maintenance, and energy performance. Which are most in demand for automotive customers?

AP: Indeed, our services span architectural and mechanical design, construction, day-to-day operations, maintenance, and energy optimization. While we are happy to deliver turnkey projects, our most in-demand services among automotive clients are maintenance, energy efficiency improvements, and strengthening energy supply security and redundancy. In today’s competitive environment, energy management, ESG compliance, and, crucially, the security and optimizability of operational energy usage have come into sharp focus.

Frame excels in this complex field by delivering resilient backup systems, flexible capacity management, and cost-effective, sustainable energy usage strategies.

We believe that modern facility management is now fundamentally built on energy efficiency and operational energy security, along with the Internet of Things and data-driven solutions. These approaches not only support cost

MOL Limo Launches International Rent-a-car Service via App

Auto-sharing company MOL Limo has launched its rent-a-car service, available 24/7 through the Limo app, according to a press release. The new offering does not require a deposit and allows users to drive vehicles abroad to Austria, Croatia, the Czech Republic, Germany, Italy, Poland, Romania, Slovakia, and Slovenia. MOL Limo currently operates a fleet of approximately 600 vehicles and has more than 130,000 registered users.

optimization but also enhance the safety, reliability, and long-term sustainability of manufacturing environments. Through real-time data monitoring, predictive maintenance, and analysis of consumption patterns, our clients can more effectively track performance, respond more quickly to deviations, and strategically manage their operational energy and resource needs.

BBJ: Hungary has attracted a remarkable number of OEM and Tier-1 automotive FDI in recent years. How has Frame Group benefited from this?

AP: Frame has actively supported this growth, engaging in both new greenfield investments and the modernization of existing plants. Thanks to our flexibility and sectorspecific expertise, we have become a trusted partner for Japanese, German, and Chinese manufacturers alike.

BBJ: What future plans for Frame do you have in the automotive sphere?

AP: Looking ahead, our ambition is to deepen our role in operating automotive infrastructure. We are building long-term partnerships with developers, manufacturers, and suppliers based on sustainable, scalable, and ESG-compliant service models. Internally, we are focused on advancing digitalization and datadriven facility management, enabling our partners to gain greater transparency and control over their operations and costs. We firmly believe we are an invisible yet essential component of the automotive sector’s success stories.

Attila Puskás

Photo by Zoltán Kocsis /MTI

Company Cars and VAT: Hidden Pitfalls and

the Risk of Serious Penalties

Company cars are a popular perk for employees, but the rules surrounding how businesses handle VAT for these vehicles are complex and fraught with potential pitfalls. From personal use to damage reimbursements and fuel expense accounting, there are numerous areas where companies can encounter difficulties. As electric vehicles become more prevalent in corporate fleets, the challenges only multiply.

VA T

private use, often with a set limit, such as 500 km per month. If an employee exceeds that, they must reimburse the company for the extra kilometers. This is where things often go wrong.

“When companies ask employees to pay for this extra private use, they frequently just treat it as a reimbursement, without realizing that, from a VAT perspective, they’re actually providing a taxable service,” explains Nyári.

Significant Liability?

“Legally, they should be issuing an invoice to the employee for the private use, including VAT, and paying that to the authorities. If they fail to do that, they could end up with a significant VAT liability and face fines for not issuing the correct invoices.”

out. “There’s also the question of whether the VAT on the fuel purchase can be deducted in that case. If the company uses a fuel card, the situation gets even more tangled.”

The growing popularity of electric vehicles only makes these VAT issues more complex. Increasingly, companies not only provide electric cars to employees but also pay to install charging stations at their homes.

implications? If companies don’t plan for these scenarios, they could be in for a nasty surprise.”

Home Charging Issues

Another emerging question is how to handle reimbursements for home charging. How much and at what price can an employer pay back an employee for the electricity they use? Should they use an average cost? And what if the employee has solar panels? What can they claim as a legitimate expense in that case?

The complications don’t stop there. Nyári highlights another scenario: “What happens if employees or clients charge their personal electric vehicles at the company’s charging station? If that’s free, it’s effectively income for them.

“There are real financial consequences if the tax authority finds errors. That’s why it’s so important to take a close look at your current processes, identify the gray areas, and clear them up as soon as possible. That way, you can ensure that there are no lingering risks tied to company car use.”

“Most companies don’t even realize they’re accounting for these costs incorrectly, and that can lead to significant tax risks,” warns Zsolt Nyári, managing partner at K-X Consulting and a certified tax expert.

In Hungary, the private use of company-owned vehicles is currently a tax-free fringe benefit for employees. This includes not only the car itself but also fuel costs and motorway toll stickers. In other words, an employee can take the company car for a weekend getaway to Lake Balaton without triggering a tax bill for themselves or their employer. These private use costs are fully deductible for corporate tax purposes.

However, it’s a common practice for businesses to impose a cap on

These VAT headaches extend beyond personal use. When an employee damages a company car, and the company passes on the insurance deductible, either partially or entirely, that can create VAT issues as well. Many firms mistakenly treat this payment as compensation and skip charging VAT. But European Court of Justice case law is clear: these payments are considered services and are subject to VAT and invoicing requirements. The stakes get even higher if the company doesn’t own the car but leases it from another business and has to pay the deductible themselves. Fuel accounting can also be a significant source of confusion.

“Selling fuel to employees is technically a licensed activity in Hungary, so if a company invoices an employee for fuel, they have to consider whether they need a special fuel-trading license,” Nyári points

“When it comes to the VAT consequences, company policies about home charging stations are critical,” Nyári says. “What happens if the employee leaves the company? Will the company uninstall the charger, regardless of the cost? Will they sell it to the employee or simply give it to them for free and then handle the tax

But how do you account for it from a tax perspective? What VAT do you charge, and at what price? Can you base it on the company’s actual costs for providing the charging, or do you have to look for a market price to avoid tax issues?” These questions can quickly snowball, and the correct answers usually depend on the specific situation.

It’s clear that dealing with VAT for company cars is a high-stakes area, especially when it involves mixeduse or personal benefits. It’s not just companies that provide cars to employees that encounter problems; even firms that lease vehicles to other businesses often make mistakes here. Frequently, companies lack clear internal rules or documentation for how company cars are used, which only adds to the tax risk.

“Poor practices can also put a company’s ability to deduct VAT at risk,” Nyári stresses. He warns that getting these issues wrong isn’t just a matter of administrative headaches.

“There are real financial consequences if the tax authority finds errors. That’s why it’s so important to take a close look at your current processes, identify the gray areas, and clear them up as soon as possible. That way, you can ensure that there are no lingering risks tied to company car use,” Nyári concludes.

GERGELY HERPAI

Zsolt Nyári, managing partner at K-X Consulting

Photo by BOY ANTHONY / Shutterstock.com

Continental Announces Name of September Group Sector Automotive Spin-off

Continental Group presented the new name for the spinoff it is creating from its Group Sector Automotive unit at the Auto Shanghai expo in China. The independent firm will be named Aumovio. According to the parent group, the new name combines a strong market position, heritage, and technological expertise in the automotive industry with the ambition to shape the future of mobility through innovation.

a member of the executive board of Continental and CEO of Group Sector Automotive.

“Aumovio will be characterized by a triad of technologically leading products, a consistent value creation strategy and a global synergetic network, combined with a strong local presence for our customers,” he explains.

Aumovio will offer electronic products and advanced mobility solutions for what Continental calls the “softwaredefined vehicle,” providing safe, exciting, connected and autonomous mobility to a wide range of global customers.

According to a market analysis by Berylls, the value of solutions per vehicle in these segments is expected to grow at an average annual rate of 4.7% until 2029, surpassing the production of passenger cars and light commercial vehicles worldwide (based on a market forecast by S&P Global Mobility).

At Auto Shanghai this year, the group sector presented its “in the market for the market” approach alongside several innovative technologies tailored for Chinese customers and the Chinese market.

Following approval at Continental’s annual shareholders’ meeting on April 25, Aumovio is scheduled to list on the Frankfurt Stock Exchange in September this year.

Creative Power

“As an independent company, we gain significantly more creative power and speed,” says Philipp von Hirschheydt,

“Our aim is to further expand our position in the future fields and growth markets of mobility. This strategy is particularly evident in China. Among other things, we are relying on our strong local presence by producing and developing locally for the Chinese market,” von Hirschheydt says.

“We have consistently aligned automotive with future technologies and are picking up on market developments quickly, innovatively and from a strong competitive position. This means that we are consistently on our way to becoming an adaptive automotive powerhouse. Our future brand also reflects this ambition,” he adds.

Continental’s Group Sector Automotive has been present in China for 30 years and employs around 10,000 people there. In the 2024 financial year, the unit generated around 14% of its global sales in China.

World’s Largest Market

China is the world’s largest automotive market, and according to internal forecasts and estimates by market research companies, it is expected to grow faster than the global market over the next five years.

Continental’s Group Sector Automotive has continued to expand its value chain in China in recent years, supporting

both Chinese and international automakers with local manufacturing, local supply chains, and, in particular, local innovations and developments.

At Auto Shanghai, Automotive presented the Luna and Astra driver assistance systems, among others. Both were developed by Horizon Continental Technology (a joint venture between the Beijing-based Horizon Robotics and Continental AG and headquartered in Shanghai) for the Chinese market.

Luna is an assistance system that supports active safety, as well as basic driving and parking functions, to enhance safety and comfort. Astra is an advanced assistance system and enables, among other things, assisted driving without a high-resolution map and parking assistance with a memory function.

Aumovio says it will offer highly developed electronic products and modern mobility solutions. In addition to its strong market position with innovative sensor solutions, displays, and technologically leading braking and comfort systems, the spin-off has significant expertise in software,

About Continental

The German multinational automotive parts manufacturing company Continental AG develops pioneering technologies and services for the sustainable and connected mobility of people and their goods. Founded in 1871, the company says it offers “safe, efficient, intelligent and affordable

“We have consistently aligned automotive with future technologies and are picking up on market developments quickly, innovatively and from a strong competitive position. This means that we are consistently on our way to becoming an adaptive automotive powerhouse. Our future brand also reflects this ambition.”

architecture platforms and assistance systems for the rapidly growing future market of software-defined and autonomous vehicles.

Group Sector Automotive employs around 92,000 people and generated sales of around EUR 19.4 billion in the 2024 financial year.

solutions for vehicles, machines, traffic and transportation.” It is headquartered in Hanover, Lower Saxony, and is the world’s third-largest automotive supplier and the fourth-largest tire manufacturer. In 2024, Continental generated sales of EUR 39.7 billion and currently employs around 190,000 people in 55 countries and markets.

Philipp von Hirschheydt, member of the executive board of Continental and CEO of Group Sector Automotive.

BYD Raises the Stakes in Hungary, but Will Conditions Play in its Favor?

The EU’s automotive industry is fighting a war on multiple fronts, with tariffs emerging as the latest threat. Hungary’s economy is heavily dependent on developments in the sector, and the government is hoping for new impetus from Chinese investors.

focus on three core activities: sales and after-sales services, vehicle certification and testing, and adapting models to meet European needs. This includes redesigning interiors, recalibrating safety systems, and tailoring infotainment and driver-assist technologies to meet EU regulations and consumer expectations.

Perhaps most significantly, the center will employ 2,000 people, 90% of whom will be engineers, which paves the way for the country’s much-anticipated move up the value chain.

Moving up the ‘Smile Curve’

Hungary was the leading European destination for Chinese FDI in 2024 for the second consecutive year, capturing 31% of the total, according to a report by the Mercator Institute for China Studies and Rhodium Group. That activity was significantly fueled by EV investments, including world-leading manufacturer BYD’s commitment to set up its first EUR 5 billion European plant in Szeged (175 km southeast of Budapest by road) to assemble 150,000 EVs per year. It is not the company’s first project in the country, though; its bus manufacturing facility in Komárom (100 km west of the capital) was established in the spring of 2017. That location might be up for more capital influx as the government recently designated a plot next to BYD’s Komárom factory as a “strategic investment zone,” a telling sign of new ambitions.

The latest announcement of BYD opening a EUR 260 million innovation and service center in Budapest marks a new milestone in BYD’s European strategy. According to company chairman Wang Chuanfu, the Budapest center will

In traditional auto manufacturing hierarchies, Central and Eastern Europe has long played the role of a low-cost assembly provider for Western European brands. The so-called “smile curve” of value creation initially placed Hungary at the bottom, characterized by high volume and low innovation. German OEMs then began investing in more high valueadded activities, and now, with BYD’s R&D center, the country can further position itself as a knowledge hub.

The move may encourage a more technologically advanced local supplier ecosystem while also offering Hungarian engineers the opportunity to contribute to global automotive trends, such as electrification, software-defined vehicles, and autonomous driving. For German stakeholders, it took some time to launch local innovation operations. Asian companies are notorious for keeping such activities at home, making BYD’s decision a pleasant surprise.

Yet this development is not without inherent risks. Though moving up the smile curve is good news, Hungary’s economic structure remains heavily reliant on exports to Germany. Germany’s automotive industry is facing a slowdown with roadblocks to the EV transition, falling demand, and rising Chinese competition.

In fact, according to the Munich-based Ifo Institute for Economic Research, sentiment in the German automotive

Automotive Matters

A monthly look at automotive issues in Hungary and the region

Red Alert Amid Global Tariff Tensions

Hungary’s automotive sector, a pillar of its export-driven economy, is entering dangerous territory against the backdrop of global trade tensions. With the United States threatening to impose tariffs of up to 50% on EU vehicles and components, economists at ING and the International Monetary Fund warn that Hungary could be among the most severely affected countries in Europe.

According to ING, Hungary’s deep integration into the German automotive value chain makes it highly vulnerable to both direct and indirect shocks. The IMF echoes these concerns. As Alfred Kammer, the fund’s European department director, pointed out recently, a German automotive slowdown, triggered by U.S. tariffs or falling global demand, could inflict 5 to 10 times more economic damage on Hungary than on Germany itself.

Given that German brands like Audi and Mercedes-Benz, soon to be joined by BMW, dominate Hungary’s manufacturing landscape, any disruption in transatlantic trade could quickly send shock waves through the Hungarian economy.

industry deteriorated further, with a decline in its business climate index for the sector from -30.7 in April to -31.8 points in May, as reported by Reuters. Promising as it sounds, BYD’s victory march may be heading toward a policy landmine zone. The European Commission is preparing investigations into whether Chinese subsidies, especially those backing the Szeged car plant, violate EU competition rules. If found non-compliant, both BYD and

The IMF’s latest regional outlook highlights the region, and particularly Hungary and Slovakia, as the most exposed economies to U.S. trade policy shifts. It warns that Hungary’s high dependence on auto, battery, and electronics exports to vulnerable markets could significantly dampen GDP growth.

IMF experts stress that Hungary and the entire region need to embrace a strategy based on three pillars: maintaining an open trade policy, preserving stable macroeconomic fundamentals and implementing domestic structural reforms. Enhancing government efficiency and cracking down on corruption would also significantly help and have the potential to boost GDP by 6.6 to 9.3% in the medium term.

ING further adds that the tariff war is so unpredictable that it “doesn’t make sense to speculate” on how all this would play out. “Anything is possible […]. We maintain our longheld view that, in time, the economic toll of an escalating trade war on the U.S. will become too severe to sustain elevated tariffs indefinitely. After a brief lull, brace yourself for the next turbulent chapter,” it says.

the Hungarian government could face sanctions, jeopardizing future expansion. Additionally, Hungary’s growing dependence on China does not mitigate its pre-existing dependence on Germany. While BYD offers diversification in terms of corporate partners, its products are still primarily aimed at Western European markets, particularly Germany, the very economy currently struggling with stagnation and declining automotive sales.

Car Importers

Ranked by total net revenue in 2024 (HUF mln)

7

1 MAGYAR SUZUKI ZRT. www.suzuki.hu

2 PORSCHE HUNGARIA KERESKEDELMI KFT. www.porschehungaria.hu 539,040

3 MERCEDES-BENZ HUNGÁRIA KFT. www.mercedes-benz.hu

4 BMW HUNGARY KFT. www.bmw.hu 193,569 (2023) A

5 TOYOTA CENTRAL EUROPEHUNGARY KFT. www.toyota.hu, www.lexus.hu

(2023)

Porsche Austria GmbH (100)

utility vehicles

Atsumi Masato

2500 Esztergom, Schweidel J. utca 52. (70) 320-7512 kommunikacio@suzuki.hu

Brigitte Auernigg, Tamás Wachtler

1139 Budapest, Fáy utca 27. (1) 451-5100 info@porschehungaria.hu

Fabiola Attorri

Beatrix Trencsényi

Zoltán Gombos, Neil Domonic Fiorentinos, Stefan Hofer

Jacek Pawlak

1133 Budapest, Váci út 96–98. (1) 328-5305 internet-hu@ mercedes-benz.com

2220 Vecsés, Lőrinci út 59. (29) 555-100 ugyfelszolgalat@bmw.hu

2040 Budaörs, Budapark Keleti 4. (23) 885-101 infohu@toyota-ce.com 6

ÉS KELETEURÓPAI ÉRTÉKESÍTŐ KFT. www.ford.com

(2023)

Andrea KővágóLaky, Viktor Szamosi

Bihari, Attila Seres

Nagy Tamás Tótvári

2000 Szentendre, Galamb József utca 3. (1) 777-7555 inform@ford.com

2040 Budaörs, Szabadság út 117. (1) 451-4851 awdinfo@autowallis.com

Budapest, Fáy utca 27. (1) 451-5500 info@porschepest.hu

2040 Budaörs, Szabadság utca 117. (1) 451-4851 awdinfo@autowallis.com

2040 Budaörs, Szabadság utca 117. (1) 358-6000 ugyfel.kapcsolat@ renault.hu

1124 Budapest, Csörsz utca 49–51. (80) 333-888 hungary@ nissan-services.eu

Alfa Romeo, Fiat Professional, Jeep Abarth, Alfa Romeo, Fiat Professional, Jeep Frey Automobil Holding Kft. (100)

György Balkányi Attila Sávoly

Norbert László Nagy, Kim Kuyjung

Együd Erika Káldi

Ian Howells, Hans De Jaeger, Jean-Marc Streng

1194 Budapest, André Citroën utca 1. (1) 348-4848 kapcsolat@ f-automobil-import.hu

1117 Budapest, Budafoki út 56. (1) 324-2000 info@kiamotors.hu

1044 Budapest, Váci út 50–58. (1) 850-8590 www.volvocars.com/hu/v/ legal/contact-us/

1186 Budapest, Cziffra György utca 15. (1) 887-5700 info@hyundai.hu

1194 Budapest, André Citroën utca 1. (1) 348-4848 kapcsolat@ p-automobil-import.hu

1117 Budapest, Infopark sétány 1. (1) 464-5000 mazda@mazda.hu

2040 Budaörs, Puskás Tivadar út 1. (23) 506-406 iinfo@honda.hu

1194 Budapest, André Citroën utca 1. (1) 348-4848 kapcsolat@ c-automobilimport.hu

1194 Budapest, André Citroën utca 1. (1) 348-4848 info@mitsubishi.hu

1194 Budapest, André Citroën utca 1. (1) 348-4848 info@subaru.hu

1152 Budapest, Városkapu utca 1. (1) 799-2250 infiniti@gablini.hu

4 Socialite

From L.A.-based Online Art Competitions to Budapest’s Golden

Budapest’s Golden Duck Gallery is showcasing the third artBIAS exhibition until July 12, featuring the winners of a Teravarna international art competition. With the highly lucrative contemporary art market booming and galleries often impenetrable to unknown artists, art competitions offer a potential path to recognition. But how do artists decide which competition is worth investing in? I spoke to Niladri Sarker, founder and CEO of Teravarna, about what the organization offers.

DAVID HOLZER

Sarker, who lives with his family outside Los Angeles, describes himself as “a maverick drifter—a self-described ‘not your run-of-the-mill Homo sapiens.’” Trained as a scientist, he worked on space projects in collaboration with NASA’s Jet Propulsion Laboratory before becoming a professor, and he still teaches part-time at a university in Arizona.

A colorful character who favors loud shirts and mismatched sneakers, Sarker bubbles with enthusiasm. He tells me he always wanted to be an artist.

“I used to sell my art online and at street pop-up shows. During COVID, in 2020, when everything fell silent, I decided to focus on selling online and made my first site. Then I thought, ‘It’s so lonely here,’ and decided to invite other people to get involved. I placed an ad and got so many applications within a couple of days that I realized there’s no way I could do this for free.”

Today, Teravarna claims to be one of the world’s leading contemporary online fine art galleries, with artists from as many as 121 countries represented

Duck Gallery

through its exhibitions and a strong presence on Instagram and YouTube. The organization also arranges exhibitions in bricks-and-mortar galleries, including the Golden Duck, and takes part in major art fairs such as Superfine in New York. It partners with online art marketplaces like Artsy and Artnet to sell the work of artists it hosts.

According to Sarker’s personal website, Teravarna has “provided cash grants of USD 166,000 to thousands of deserving artists.” A total of 10,847 artists have taken part in its exhibitions. Sarker emphasizes the philanthropic, altruistic aspect of Teravarna ’s mission.

Empowering Artists

“We try to empower artists who are starting out or emerging, as well as those who are established but live

applied will be shown, we’re not the jury, the gallery is.” Another criticism is that Teravarna makes thousands of dollars from its competitions.

“That isn’t true,” Sarker explains. “If fewer artists apply for a competition, we roll over the cash we allocated for prizes to the next one. We pay to partner with Artsy and Artnet. We have 18 employees and pay their salaries. The reality is that, although we’re a business, we actually exist to help artists. We give them 60% of the value of all sales, and wherever we can, we help artists from developing countries gain exposure.”

Sarker believes that “any form of art, of creativity, can beat a bullet anytime. Artists care more about expression and becoming known than about wars or hating other people.”

Diligent Research

As artists strive to be seen and recognized, the difficulty of securing gallery space without financial investment has contributed to the rapid growth of art competitions. If you’re an artist, deciding which one is right for you requires diligent research. The Artists Network website recommends reading the fine print, checking who the judges are and whether they can help your career, and making sure you’re comfortable with the standard of work among your fellow competitors.

On a deeper level, there are several downsides to entering competitions. Being rejected can take a psychological toll. Some organizers ask for high entry fees. The criteria for judging can be unclear. But as long as an artist does their research, weighs the cost of entering against the potential reward, and is honest about whether their work fits the competition while reading the guidelines carefully, there are real benefits.

On the plus side, beyond the chance to win money or art materials, competitions can provide the creative push an artist needs to grow. Critically assessing your own work helps you improve. Even if you don’t win, your work might be seen by galleries or collectors. You could be invited to participate in future competitions and feel like you’re progressing.

in parts of the world where exposure is a huge challenge,” he tells me.

“Someone living in Ukraine or Belarus, for instance. We offer artists the chance to connect with a worldwide network of collectors, galleries, and fellow creatives, allowing them to grow their visibility and influence. We’ve completely turned around the careers of people who’ve started with us.”

While proud of Teravarna’s achievements and commitment to artists, Sarker is sensitive to criticisms of art competitions in general.

“People have said we’re a vanity gallery, but we get a high standard of artists asking to be on our website,” he says. “With bricks-and-mortar exhibitions such as artBIAS at Golden Duck, where between 80 and 90 artists out of the 300 or so who

If you do win or place, you have a tangible achievement to promote on social media, Instagram in particular can be a powerful showcase for your work, as can Artsy and Artnet, and to add to your résumé.

In the end, though, entering competitions can’t be the only reason you make art. As Sarker says, “Art will always be my first love. I try to find time to paint wherever I am.”

artBIAS is at the Golden Duck Gallery, 31a Ráday utca, until July 12. Find out more about what Teravarna offers at TERAVARNA. com. If you’re an artist seriously looking to make a living from your work, I wholeheartedly recommend Maria Brophy’s book “Art, Money, Success.”

From left, Niladri Sarker, founder and CEO of Teravarna, and Catherine Varadi CEO and founder of the Golden Duck Gallery at the artBIAS II exhibition in 2024.

The MÁV Szimfonikus Zenekar (MÁV Symphony Orchestra) was founded in the final days of World War II in 1945 by László Varga, then president and CEO of the Hungarian State Railways (MÁV), who believed that the railway should carry culture as well as passengers. The internationally recognized ensemble has become one of the key players in Hungarian musical life and is now celebrating its 80th anniversary.

MÁV Symphony Orchestra Celebrates 80th Anniversary in Brief News

Culture Matters

A regular look at culture issues in Hungary and the region

category for a performance conducted by the legendary Ken-Ichiro Kobayashi. There is a shared history with the Japanese musician: in 1974, he won the Budapest International Conducting Competition with the MÁV Symphony Orchestra, marking the beginning of an artistic relationship that has seen Kobayashi become the orchestra’s honorary guest conductor and helped shape its identity.

One of the highlights was a concert held on May 14 at Müpa Budapest under the baton of Italian guest conductor Michelangelo Mazza. On this evening, it was announced that György Lendvai, the current director of the symphony orchestra, had received the Bartók Radio Music Award for the “Concert of the Year”

Nor was the recognition Lendvai received his first; he was given a prestigious state award in 2013 for his work in preserving cultural values and prioritizing the musical education of young people.

The MÁV Szimfonikus Zenekar is a highly unusual professional ensemble, given that a national railway company maintains it. According to the official website, it was the conviction of founder

Culture

Agricultural Museum to Move from Budapest to Gödöllő by 2029

Budapest’s Museum of Agriculture will relocate to Gödöllő (30 km northeast of Budapest by road) by 2029, where it will become part of the Hungarian University of Agriculture and Life Sciences, Minister of Culture and Innovation Balázs Hankó announced in a statement issued yesterday. Hankó noted that the university, along with the museum and its library, will “offer opportunities for further development, benefitting Hungarian culture, agriculture, and university education.” Ministerial

Commissioner László L. Simon will oversee the move from Vajdahunyad Castle in Budapest’s City Park to Gödöllő.

Night of Museums Promises 2,700 Programs Nationwide

The Night of Museums will take place on Saturday, June 21, featuring around 2,700 programs across 470 public collections, Minister of Culture and Innovation Balázs Hankó said in Gödöllő (30 km northeast of Budapest by road) on June 10. More than 330,000 people participated in the event last year, Hankó noted, calling the Night of Museums “a miracle when hundreds of thousands visit our museums in the whole

László Varga that “after the peace treaties, besides building materials and food products, people would need a cure for the emotional wounds caused by the war. He believed that an orchestra traveling the country could serve as such. To implement his idea, special sleeping cars were developed for the musicians, and the musical instruments occupied another railway carriage. The anniversary is May 1: this is when the first formation of the railway brass band played as the MÁV Orchestra.”

Three Tenors

One of the orchestra’s career highlights took place in 1999, when it performed at the Three Tenors world tour concert in the Tokyo Dome baseball arena before an audience of 32,000, accompanying the superstar opera singers José Carreras, Plácido Domingo, and Luciano Pavarotti.

Carpathian Basin.” He emphasized that museums offer a meaningful experience for young people, children, families, and all generations, where “we experience all that makes us a nation, all that makes us Hungarians.” He added that this year’s edition is particularly significant as it incorporates events from the memorial year marking the 200th anniversary of the birth of author Mór Jókai.

VéNégy Festival to Highlight V4 Cultural Ties in July

The Visegrád Group (V4) partnership remains “fundamentally important” for Hungary, government spokeswoman Eszter Vitályos said on June 6 while presenting the program for the 12th VéNégy Festival and Theater Meeting. The event will take place in Nagymaros (45 km northwest of Budapest by road) from July 2-5 and will feature cultural, artistic, musical, sporting, and culinary

Following the successful collaboration, the orchestra became a regular participant in Pavarotti’s European farewell tour, during which they performed on stage with the legendary tenor 10 times.

The MÁV Symphony Orchestra has been led by many of the world’s most famous conductors, such as Christoph Eschenbach, James Levine, and Ken-Ichiro Kobayashi. It has collaborated with internationally renowned artists such as Kiri Te Kanawa, Ruggiero Ricci, Maxim Vengerov, Lazar Berman and Zoltán Kocsis.

Its repertoire is extensive, ranging from baroque music to contemporary works. Under the direction of principal conductor Róbert Farkas, the ensemble performs works by both classical and modern composers.

plays at the Great Hall of the Liszt Academy of Music and the Béla Bartók National Concert Hall of the MŰPA, as well as on numerous international stages.

experiences, with an emphasis on building connections, said Vitályos, who is also the festival’s chief patron. She said visitors can participate in craft workshops, board games, interactive circus activities, animation, puppet shows, and more. Sports enthusiasts will have the chance to play soccer, badminton, table tennis, beach volleyball, and foosball, try suction cup archery and canoeing, and join guided tours. Vitályos emphasized the importance of the V4 alliance, stating that Hungary “believes in regional cooperation and the strength of the peoples of Central Europe.” Parliamentary State Secretary Bence Rétvári of the Ministry of Human Resources, also a chief patron, noted that the festival will showcase the cultures of all four member countries and include virtual reality exhibitions, theatrical performances, and concerts. Theater director Domokos Kis added that a new venue this year will be a tunnel beneath the Danube linking Nagymaros and Visegrád (45 km northwest of Budapest).

It regularly

ÉVA BODOR

The MÁV Symphony Orchestra

Photo by Máté Steirer

Photo by Máté Steirer

Lendvai György, managing director of MÁV Symphony Orchestra

Chamber of Commerce Corner

This regular section of the Budapest Business Journal features news and events from various international business chambers. For further information and to register for specific events, visit the organizing chamber’s website. If you have information for inclusion on this page, send an email in English to Annamária Bálint at annamaria.balint@bbj.hu

American Chamber of Commerce in Hungary (AmCham)

On June 4, AmCham launched its new ESG Seminar Series with an introductory session designed to lay the groundwork for future discussions. The session opened with a presentation by Péter Lenkey, ESG professional consultant at the Hungarian Economic Development Agency, who outlined key regulatory developments and national ESG priorities. He was later joined by Nóra Óváry-Papp (counsel at law firm Baker McKenzie), Ákos Veisz (managing partner, BDO Hungary ESG Advisory), and József Bőhm (chair of AmCham’s Sustainable Growth Committee), who moderated the roundtable discussion. Experts provided insights into the evolving ESG landscape, shared perspectives on long-term value creation, and examined the differences in ESG integration between SMEs and multinational corporations. The conversation also highlighted emerging trends and offered practical guidance for companies at different stages of their ESG journey.

Belgian Business Club in Hungary (Belgabiz)

Belgabiz celebrated its 10th anniversary on June 5 with a special evening at the Residence of the Belgian Embassy in Budapest. The event brought together current and former members, along with key partners such as representatives from the Ministry of Foreign Affairs and Trade and the Hungarian Investment Promotion Agency, to mark this milestone and reflect on the journey so far. Guests were welcomed by chamber president Jim Bauters; Jeroen Vergeylen, Ambassador of Belgium to Hungary; as well as the regional economic and investment representatives of Flanders and Wallonia, Zsolt Tarjáni and Jean-Philippe Schklar. The event featured live guitar music by László Szegedi, a buffet dinner, and an excellent opportunity to catch up and connect. A key part of the evening was the award ceremony, sponsored by K&H, where we recognized three outstanding members for their long-standing support and contributions: Loyalty Award: János Tamáska (Belgaco – Belga Sörmester); Committed Partnership Award: Györgyi Viszmeg (Viszmeg Law Firm); and Creative Contributor Award: Sam Vangerven (Stardex). A short video retrospective looked back at key moments from the past 10 years, a reminder of how far the Belgiam business community has come and how many meaningful and enjoyable moments it has shared.

German-Hungarian Chamber of Industry and Commerce (DUIHK)

On May 27, the DUIHK held the third event in its Upskilling in Finance series at Audi Hungaria’s HQ in Győr. The series began in 2023 as an initiative of the finance executives of four major member companies of the chamber: Magyar Telekom, Audi Hungaria, B. Braun and PwC. These companies joined forces with the aim of better preparing employees in finance organizations for the increased challenges they face. This final session focused on enhancing employees’ general knowledge of ESG.

A total of nine companies set up 12 booths to share their insights at a marketplace-style workshop covering ESG laws, regulatory expectations, best practices and hands-on experience. Barbara Zollmann, CEO of DUIHK, and Achim Grewe, CFO of Audi Hungaria, welcomed our guests. Five interactive sessions followed in 30-minute rotations, enabling in-depth discussions and knowledge exchange between participants and exhibitors. Among the exhibitors was the German-Hungarian Knowledge Center (DUWZ), which provided a threeday seminar on Hungary’s evolving ESG regulations, reporting obligations and the implementation of ESG rules within companies. Participants also enjoyed a guided tour of Audi’s impressive engine manufacturing facility, the perfect way to end an inspiring day dedicated to future-proofing finance through shared learning and innovation.

Netherlands-Hungarian Chamber of Commerce (Dutcham)

The annual Dutcham Orange Dinner at the Crowne Plaza Budapest on May 28 provided a unique opportunity to celebrate the Dutch business community in Hungary and enjoy authentic Dutch, Indonesian and Caribbean culinary delights. Dutcham truly appreciates the support of the Embassy of the Netherlands in Hungary, thanks its members and partners for celebrating with it, the sponsors for the valuable raffle gifts and Fruzsina Vincze for the live entertainment.

Swiss-Hungarian Chamber of Commerce (Swisscham)

Swisscham is delighted to welcome its newly elected board members and looks forward to working together to strengthen its community further, promote Swiss-Hungarian business cooperation, and develop meaningful initiatives for its members.

Canadian Chamber of Commerce in Hungary (CCCH)

The CCCH is set to host its beloved Canada Day celebration in July, promising a relaxed summer evening filled with Canadian flavors, friendly faces, and festive spirit. This year’s event will mark 158 years since the signing of the Constitution Act of 1867 and the founding moment of modern Canada. Attendees can look forward to a truly Canadian menu, including juicy burgers, refreshing craft beers, and irresistible donuts from The Box Donut & More. Whether you’re a CCCH member, a Canadian living abroad, or simply a fan of Canadian culture, this celebration is the perfect chance to come together and toast the nation’s birthday. The event is open to the international community and offers an excellent opportunity for networking, socializing, and enjoying the best of Canadian hospitality in Budapest. Prior registration is required; space is limited, so early sign-up is encouraged. • When: Tuesday, July 1, 6-10 p.m.

• Where: Pasarét Bisztró, Pasaréti út 100, 1026 Budapest

• Fee: Members, HUF 21,463; non-members HUF 27,813.

The CCCH once again delivered an unforgettable evening on June 4 as it hosted the 12th Canadian BBQ Dinner at the scenic Öbölház on Kopaszi-gát. The event brought together around 100 guests, including leading business figures, diplomats and government representatives, for a relaxed and elegant evening of culinary delights and professional networking. Clear skies and warm weather set the stage for a picturesque riverside gathering. Guests enjoyed a rich menu featuring Canadian salmon, bison, and an open cocktail bar with premium non-alcoholic options, as well as gourmet tastings of chocolate and ice cream. Jazz music created a smooth, atmospheric backdrop as attendees sipped drinks, exchanged business cards, and tested their luck in an exciting raffle. With a shuttle service making the event easily accessible, every detail was tailored for comfort and elegance. The Canadian BBQ has become one of the most anticipated occasions on the CCCH calendar, celebrating not only Canadian cuisine and culture but also strengthening ties across Hungary’s business and diplomatic communities.

Italian Chamber of Commerce for Hungary (CCIU)

On June 25, the Italian Cultural Institute in Budapest will host a conference titled “3DMeat: An Attack on Traditional Food,” organized with the support of the CCIU. The event will center on a crucial theme: the contrast between traditional Italian food culture, particularly the Mediterranean Diet, and emerging food alternatives, which often promote heavily processed or even 3D-printed products, lacking the authenticity and nutritional integrity of natural foods. The conference will explore the many benefits of the

Mediterranean Diet, encourage discussion on future food challenges, and emphasize the value of conscious, natural choices for improved quality of life. Attendees will be able to compare Italian and Hungarian organic products and examine current trends shaping the global food industry. The day will begin with welcome remarks from Italian institutional representatives in Budapest, followed by expert-led panels featuring officials from the agriculture ministries of Italy and Hungary, with contributions from the Hungarian

Chamber of Agriculture and key figures from the Italian-Hungarian agro-food sector. Scholars will share their insights on how the Mediterranean lifestyle supports the prevention of conditions such as diabetes, obesity, and high cholesterol. The event is also designed to strengthen commercial ties between Hungarian importers and Italian food producers. A dedicated tasting area will offer regional Italian specialties. Live opera performances by tenor Giuseppe Gambi and soprano Laura Migliaccio will create a refined and engaging atmosphere.

Photo by Jekken Péter

Opening a business doesn’t make you a businessman.