HUNGARY 2014

SPECIAL EDITION

World Markets and Opportunities

HUNGARY

2014

THE ECONOMY of Hungary is a mediumsized, high-income, structurally, politically and institutionally open economy, which is part of the European Union's single market.

HUNGARY IS AMONG THE OLDEST countries in Europe. It was founded in 896AD, before France and Germany became separate entities and prior to the unification of Anglo-Saxon kingdoms.

HUNGARY IS ONE OF THE THIRTY most popular tourist destinations in the world, attracting 10.2 million tourists a year (2011).

HUNGARIAN CUISINE is based on pork, lard, goose fat, paprika, sour cream and vegetables.

HUNGARY HAS ONE OF THE MOST important thermal spring cultures in Europe. The country boasts no less than 1,500 spas, typically featuring Roman, Greek and Turkish architecture.

DURING THE LAST THREE years considerable measures have been taken by the Hungarian government to reform the country's public administration in order to reduce administrative burdens and simplify administrative procedures.

THE AUTOMOTIVE SECTOR is one of Hungary’s core industries and generates almost 21% of total exports. More than 600 companies employing a total of 100,000 people are active in this sector.

HUNGARY HAS ONE of the highest motorway densities in all of Europe and the third highest road density, after Belgium and Holland.

INTERVIEW H.E. Mr. OSZKAR NIKOWITZ, HUNGARIAN AMBASSADOR TO SERBIA

Grabbing Economic Potential

Hungary and Serbia have a chequered history, but with the past forgotten and the future on the agenda, the two nations have the opportunity to share more than just a border. The northern neighbour knows what it means to go through the EU accession process and is willing to offer its full support to build a better tomorrow as partners

C

With a significant Serb minority living in Hungary and vice versa, it is important for these two countries – knitted together by the River Danube – to work closely together to push each others’ economies forward. At the centre of the work to boost economic and other bilateral cooperation is Hungary’s ambassador to Serbia, Oszkar Nikowitz. He speaks to CorD about his country’s own European path, its economic battles and what more can be done to further SerbianHungarian ties.

■ How would you most succinctly present Hungary, both as an EU country and an active participant in regional economic cooperation and political relations?

- The principal foreign policy priorities of Hungary have not changed in the last two decades: accession to NATO and joining the European Union, with full integration into Europe’s structures and its system of values. We can now consider this objective to have been achieved, but at the same time we must not ignore our closer geopolitical reality either.

We give strategic priority to cooperation with neighbouring countries.

Our economies and products are individually too small to appear on world markets, but jointly, putting together various goods and products, we may have a serious chance

WORLD MARKETS AND OPPORTUNITIES | HUNGARY

That is, the central and south-east European location of our country.

Not all of our neighbours belong to the same system of alliance yet, but this fact should not prevent us from continuing to build close cooperation with them, if not for any other reason than the fact that large communities of Hungarians live in these countries. Regional economic cooperation is therefore the focus of our trade policy, and in order to promote it more effeciently our government has merged foreign trade with foreign affairs in a new ministry, the Ministry of Foreign Affairs and Trade.

Regarding foreign trade, we give strategic priority to cooperation with neighbouring countries as we are convinced that the region’s other countries can only prosper by finding potential fields of cooperation to develop jointly. Our countries, economies and products are individually too small to appear in huge world markets, but jointly, putting together various sets of goods and products – this way we may have a serious chance.

■ Hungary has come in for criticism from the EU in recent times. However,

by all parameters the country is experiencing economic growth. When it comes to national interests, what characterises Hungarian ‘autonomy’ within the EU? - Although an alliance of values, the EU is not an organisation in which all members or sectors of politics or business agree on everything. Countries have their own interests and so do certain spheres of economic life or lobby groups, leading to collisions at times. One thing is certain: Hungary, like other countries, has an obligation to defend its national interests in the decision-making forums of the EU, as its democratically elected government bears responsibility for the welfare of voters and the country’s citizens.

Sharp debates about national interests are quite common within the EU, and in most cases they end with a compromise. A compromise is when countries manage to adapt their ‘own’ solution to what is acceptable to mainstream policy. Hungary over the last couple of years has proven that its ‘own’ measures can be applied successfully to overcome the economic crisis and that they can be more efficient than the ‘orthodox ones’ sug-

ECONOMY

AUSTERITY

PARTNER

Hungary has kept its budget deficit under 3% and increased exports for a fourth consecutive year.

Hungary’s austerity measures hit banks, the financial sector, big companies and the owners of privatised utilities, not just the population.

Hungary is fifth on the list of Serbia’s export partners, behind Germany, Italy, Russia and China, and the 11th largest investor over the last decade.

gested within some financial circles.

Our country has preserved its financial stability, managed to set the economy in motion and lowered the unemployment rate. We have kept our budget deficit under 3% and increased exports for the fourth consecutive year.

■ Despite harsh austerity measures, in recent elections a large amount of trust was placed in Prime Minister Orbán by voters who see him as a protector of their interests. This might be seen as unusual in other countries. What is your explanation?

- To answer this question we have to go back to the aforementioned criticism, which originated mostly in the domestic circles that lost power in 2010 and found allies among some international financial circles in Europe that felt their interests in Hungary were being endangered by some of the Orbán government’s measures.

The measures, and this is what is most important in the eyes of citizens, were aimed at levelling, spreading the burden of overcoming the crisis in all sectors of the society. That is, the banks, the financial sector, big companies, the owners of privatised utilities etc, not just the population.

In other words, the austerity measures hit everyone equally, and their impact upon the population was made more mild by the notion of ’justness’. The voters naturally appreciated this during recent elections.

■ At a time when Europe is proving increasingly Eurosceptic, PM Orbán has declared that his large mandate is the result of Hungarians’ wish to continue along a European path.

What did Hungary gain by entering the EU? - Contrary to another general misconception, anti-European feeling or

Euroscepticism does not dominate in Hungary. A healthy level of criticism is present, yes, but not a single significant part of society would question our membership of the EU, even if there are populists who from time to time use this to bluff their voters.

The success of the governing coa-

Over the last couple of years Hungary has proven that its ‘own’ measures can be applied successfully to overcome the economic crisis and that they can be more efficient than the ‘orthodox ones’ suggested within some financial circles

lition was in fact a confirmation of the country’s European path. When one compares the pros and cons of membership, the 10 years we have spent within the EU show clearly that the whole country has made gains.

Freedom of travel, employment, entrepreneurship, simplified businessmaking, unified rules, recognised diplomas and free education are direct advantages for citizens.

Simplified business-making has attracted foreign working capital and helped alleviate unemployment.

Further to this, an enormous amount of direct financial help has arrived in the shape of cohesion and investment funds, which has meant a lot to the modernisation of Hungary in terms of environmental protection, water treatment, tourism etc. In general, despite some diverting ideas inside the EU, the EU means security and the promise of prosperity – but it is always up to the individual country how it can realise this promise!

■ What can Serbia expect from entry to the EU and what are the preconditions for gaining member status?

- First and foremost, EU membership means predictability within the business environment, which is exactly what foreign business investors are after. It is important to companies and business circles that in Serbia they should find similar, legally harmonised business surroundings to those they are accustomed to in other EU countries. It is a vested interest of Serbia’s that, in these difficult years economically, it attracts working capital and investors. And the easiest way to entice them is fulfilment of the legal harmonisation criteria.

■ Which sectors of bilateral cooperation between Serbia and Hungary are you most satisfied with and where could relations be more intensive?

- Regarding bilateral cooperation, we can be most satisfied about how our political ties are developing. All the mistrust left over from previous decades, from the years of communism; hard transitional years in both countries; war in Yugoslavia; sanctions; some later mistrust relating to Hungary’s NATO membership; minority problems; interpretations of history etc – all traces of this are disappearing rapidly through our bilateral relations.

Hungary’s unreserved support for Serbia’s European integration plays an enormous role in all this, and to our great pleasure, Serbia reciprocates our openness and efforts to help them.

Hungary’s help during the recent floods and now, in eliminating its consequences, are appreciated in Serbia, which does a lot of good for mutual trust. All we have to do is continue along the same path and try to translate this mutual trust into practical measures in all areas: economics, cul-

HUNGARY | WORLD MARKETS AND OPPORTUNITIES

ture, education, health, environmental measures, disaster response, social ties, tourism etc. Serbia’s Hungarian minority can certainly play a catalysing role in making our ties closer.

■ Economic cooperation between these two neighbouring countries could certainly be more dynamic.

Where do you see room for improvement in trade and investment?

- Hungary, to the surprise of many, is currently fifth on the list of Serbia’s export partners, behind only big countries such as Germany, Italy, Russia and China. And regarding the list of investors over the last decade, we figure in 11th place. Judging by these numbers, we could be satisfied, but considering our bilateral relations I think we are lagging behind in terms of the potential of our economic cooperation.

There are many fields where there is room for improvement in the near future. For instance, the transport and automobile industry, where Serbia, following investment by Fiat, has already become a significant factor. Agriculture and the food industry are traditionally vital sectors in both countries, and here cooperation has great potential. Investments are underway in the energy supply sector and environmental protection also.

■ There has been much talk of the socalled Danube strategy and collaboration relating to the most important river in both countries, yet little has been done in terms of implementation. What are the reasons for this?

- Although Hungary during its EU presidency tried to make the Danube strategy a European issue, there was not much of a positive response from Brussels. Lip service, yes, but when it reached the delicate question of money and financing, plus the required organisational changes and setting up of institutions, support dwindled.

It seems all those long-term projects that would no doubt have a beneficial effect on all countries in the region have now either been put aside or must be realised using the countries’ own resources, which, un-

fortunately, are scarce. But the issue needs a thorough examination of how it can be put back on the agenda of the EU and the region’s bilateral partners, both inside and outside the EU. The recent floods and climate challenges make it more and more urgent.

■ It seems like, despite geographical proximity and the large ethnic mi-

All the mistrust of previous decades, from communism; hard transitional years; war in Yugoslavia; sanctions; Hungary’s NATO membership; minority problems; interpretations of history – all traces are disappearing through our bilateral relations

WORLD MARKETS AND OPPORTUNITIES | HUNGARY

norities from each country living in the other, Serbia and Hungary do not cooperate to an extent proportional to their closeness. Do you agree and what do you think are the reasons?

- I agree only partly. One can always work better, true, but something has started and we must not underestimate it. The Serbian government offered the Hungarian minority a place in its coalition, which we in Hungary have read as a message concerning bilateral relations. Hungary, for its part, uses every opportunity to support Serbia, and regards Serbia’s and Hungary’s interests as identical in many ways.

An example: given the concept of collective minority rights, national identity and citizenship are identical in both countries, Hungary’s ruling coalition has sent a double citizen, resident in Serbia, to the European Parliament. You could say that to represent the interests of both countries in Brussels is to trust that those interests will never come into conflict again in future.

■ In recent years there has been dynamic communication between Serbian and Hungarian business leaders, but it often appears that results fail to reflect potential. What results are you expecting from the summit of Serbian and Hungarian senior economic representatives held on 1 July?

- One of the main tasks facing the two governments is to create an atmosphere conducive to cooperation between companies. The business environment between our countries is in order as the most important regulating agreements and contracts have already been signed: the one to avoid double taxation, the one to protect investments and the one to foster economic cooperation.

We have all the conditions and our companies, small and mediumsized ones first of all, have recognised the possibilities: their interest in investing or trading in Serbia has increased significantly as we gradually leave our economic crisis behind.

The recent summit has given a clear signal to the actors in the economic scene that both governments are going to support their business initiatives, trade and investment plans.

■ In which areas do you see room to accelerate economic cooperation between the two countries within the framework of the Joint Economic Committee of Hungary and Serbia?

- The Joint Economic Committee is an ideal forum for the development of cooperation, as the two sides discuss not only immediate business opportunities, but deal with the long-term visions for all sectors significant to the economy: energy; infrastructure; transport; environmental protection; agriculture and its prospects in a changing climate; cross-border cooperation both within and outside the framework of IPA funds; and tourism.

It is vital that the people responsible for these economic sectors in both countries remain in contact so they can react to any challenges and opportunities. We are convinced that there is still huge potential for cooperation in these fields and the Joint Economic Committee is there to grab it! ■

INTERVIEW IMRE VARGA, SECRETARY OF THE HUNGARIAN-SERBIAN BUSINESS COUNCIL

Relations Never Better!

Hungary and Serbia are developing good bilateral relations in all fields and an important role in this is primarily played by the Serbian and Hungarian national communities

“R

elations between the two countries, whether that relates to the level of the state, regions, or municipalities, or is about relations between NGOs or institutional relations of various cultural, educational and other organisations, haven’t been better in at least the last 20 or so years (practically since the start of the socio-economic transition of our countries). Of course, that did not happen overnight,” says Imre Varga, former Ambassador of Hungary to Serbia and current Secretary of the HungarianSerbian Business Council.

■ As someone who was the Hungarian ambassador to Serbia and is today engaged in promoting Serbian-Hungarian relations, how do you assess the quality of cooperation between our two countries?

- We are destined to peaceful and mutually beneficial collaboration, considering the fact that we have

been neighbours for a thousand years and will remain so for at least that long again, I hope. An additional factor in improving our relations is the encouraging fact that Serbia has started official membership negotiations with the EU. The process of successful bilateral cooperation between the two countries is contributed to by previous and current political leaders of both countries, as well as numer-

Our main objective: to collect and spread as much specific information on economic and business opportunities in Serbia, which can help business decision makers among the ranks of our members ous representatives of social and economic life. I cannot and will not overlook the undeniably important role in this whole process that is played by the Hungarian and Serbian ethnic communities that live in our countries.

■ Tell us more about the HungarianSerbian Business Council and its activities?

- The Business Council was established in 2007 by the largest Hungarian companies that export capital to the region, including to Serbia. These are also significant investors on the Serbian market, such as MOL Group, OTP Bank or such Hungarian business giants such as Telekom, Tri“POSLOVNI INKUBATOR SUBOTICA –SZABADKAI ÜZLETI INKUBÁTOR Granit, Bombardier, EY and – BUSINESS INCUBATOR SUBOTICA” doo Subotica others. We are a formal soMagnetna polja 6. 24000 Subotica; Tel: +381 24 544 044; Fax: +381 24 580 777 cial organisation with the Mail: office@bis-su.rs; Web: www.bis-su.rs; www.e-inkubator.rs aim of harmonising business

performances on the Serbian market. The Business Council is a kind of elite club with relatively few members. We are present at various business meetings and organise similar events ourselves. Our main objective: to collect and spread as much specific information on economic and business opportunities in Serbia, which can help business decision makers among the ranks of our members. Specifically, we believe that the biggest obstacle to more dynamic expansion of our economic relationship is a lack of information.

We also want to attract as many new investors as possible to the Serbian market, which we consider very promising. Our motto: mutual benefits and advantages.

■ Who are the key partners of your association and in which ways do you cooperate with them?

- Given the importance of the members to the Hungarian economy (they are on the list of the largest tax contributors, employers etc.), the Business Council is regularly present at interstate conferences related to economic cooperation. Of course, in addition to promoting our interests, we are also advocates of the broadest possible direct business links between economic actors from the two countries. There is still a lot to do in order to improve the current situation. We try to make in addition to good relations with Hungarian government structures, we are also striving to have good relations with representatives of the Serbian government’s leadership structures. We are open to all interested potential partners. ■

HUNGARY | WORLD MARKETS AND OPPORTUNITIES

HUNGARY: ECONOMY

Positive Trends Within the Real Economy The Hungarian economy was particularly hard hit by the global economic and financial crisis of 2008-09. Hungary was particularly vulnerable because of a fatal combination of the credit-based economic policy practised throughout the previous decade – which continuously increased both external and internal debt – and the economy’s weak growth potential and low employment levels

By MIHALY VARGA, Hungary’s Minister for National Economy

T

he government that took office in 2010 faced multiple challenges: it had to create both fiscal and financial stability, and set the economy onto a path of sustainable growth while simultaneously coping with an unfavourable global economic environment suffering from a prolonged fiscal-financial crisis.

In a daring bid to avoid further economic recession and social tensions, the government applied a mix of both traditional and innovative measures in its economic policy.

Initially, many were sceptical. But last year provided a sharp response to doubters and critics alike: 2013 was a trend-breaker for Hungary in almost every respect. Indeed, economic trends developed even better than

expected: in particular, the budget deficit is again stable at below 3 per cent of GDP, we have reduced public debt, and positive trends have also begun within the real economy, especially in the second half of the year.

For example, in the third quarter of 2013, the Hungarian economy expanded by 1.8 per cent, well in excess of analysts’ expectations, while according to indicators on industrial output, retail sales, and construction, growth in the fourth quarter may have reached around 2.5 per cent.

It has also become clear that this is built on a healthier economic struc-

In a daring bid to avoid further economic recession and social tensions, the government applied a mix of both traditional and innovative measures in its economic policy

WORLD MARKETS AND OPPORTUNITIES | HUNGARY

ture than previous recoveries – one that enables sustainability.

I can also state that this growth is partly based on the expansion of manufacturing, and accordingly the level of investment increased in the third quarter – by some 10 per cent,

year on year – for the quarter. Perhaps even more significantly, practically all branches of the national economy contributed to this surge in recovery.

As a result, employment levels hit a 21-year high. By the end of 2013, Hungary could boast more than 4m in work, a jump of 255,000 in employment since this government took office. Put another way, the employment rate has jumped by 3.7 percentage points, to 52.6 per cent, while the unemployment rate has dropped to below 10 per cent, ie significantly below the eurozone average of 12 per cent.

Simultaneously, real wages have increased by 7 per cent (compared to 2010) thanks to a combination of low inflation and family benefits.

It is on this solid foundation that we project economic growth for this year of 2 per cent.

Returning to achievements in 2013, I must also mention that based on the improved economic performance, the EU lifted the excessive deficit procedure on Hungary.

Considering that 16 of the 28 EU member states are still under EDP reviews, I think it is fair to say this was

clear and public recognition of the success our economic policy. In addition, we repaid our remaining debts to the International Monetary Fund – in advance – last August.

As a result, we are no longer lagging, but rather are among the frontrunners with regard to prudent fiscal policy for the first time since Hungary joined the EU. In addition, the consumer price index is at an all-time low for the modern era, and the favourable effects of low inflation are already being felt.

These results indicate the level of certainty we have achieved with regard to the stability of state finances, and prove that Hungary is capable of financing its own budget.

In short, Hungary has proved it is capable of practising a new, independent and I must add, successful economic policy. As an acknowledgment, international institutions, along with both Hungarian and foreign market analysts, have upgraded their forecasts for Hungary’s economic growth.

We believe both businesses and the general public need the economic system – including the tax regime and the central budget – to be stable and predictable. Only in such an environment can commercial enterprises plan and develop for the long term, and make well-founded decisions on new investments and creating new jobs.

The economic section of the new Civil Code, which will come into force within the next few months, will make life significantly easier for businesses, helping to ensure success for foreign and domestic investors alike.

In line with these principles, neither the budget nor the tax regulations for 2014 contain any unexpected elements.

When developing the budget, we presumed a budget deficit of 2.9 per cent, inflation of 1.4 per cent and economic growth of 2 per cent – assumptions we feel are prudent. For commercial enterprises and investors, this means there is no change in either the philosophy underpinning the

tax system, nor in its practical application.

In so doing, we feel our economic policy – through increased predictability – is actively contributing to a continued improvement in the conditions for growth.

Still, people often ask how a state is capable of coming to the aid of business in such a rapidly changing global economic environment. Accordingly they often compare state financial management to that of corporations or families: but there are

We believe both businesses and the general public need the economic system – including the tax regime and the central budget – to be stable and predictable. Only in such an environment can commercial enterprises plan and develop for the long term

significant differences.

One of the main objectives of our economic policy is precisely to create the opportunity for businesses and entrepreneurs to achieve success through careful planning, and being prepared for the many risks associated with today’s fast-changing business environment.

Hence we feel a stable business environment, including tax and contributions policy, employment regulations and the system of benefits, is just as important as, for example, a

carefully crafted foreign policy.

Of course, it is common knowledge that Hungary’s economy is closely linked to foreign markets, and so we must exploit the many opportunities already available to further contribute to economic development.

But our foreign trade strategy, adopted last year, is based on the policy of “opening towards the east” while “retaining the west.” We have formulated this more inclusive, broader approach both to exploit previously unexplored opportunities and to ensure we become less dependent on certain countries or groups of states.

Our goal, while retaining and possibly increasing the achievements already gained within the EU, is also to expand wherever possible in trade with countries that show high development potential.

To conclude, overall, 2013 was

the year in which the Hungarian economic model revealed its first – and not inconsiderable – successes: a low budget deficit, record low inflation, a record low base lending rate and the beginning of sustained economic growth.

Hungary has proved it is able to recover and stand on its own two feet, it has regained it financial sovereignty, and shown that its people are capable of achieving and maintaining economic growth in their homeland. ■ Source: Financial Times

HUNGARY | WORLD MARKETS AND OPPORTUNITIES

SERBIAN-HUNGARIAN ECONOMIC COOPERATION

Partnership at All Levels Economic cooperation between Serbia and Hungary, particularly goods exchange as its most important segment, has intensified in recent years. Since 2001 this trade exchange has increased fivefold, though there is still a deficit on our side and imports are two and a half times greater than exports

exports and imports, with the faster growth of imports. However, in 2009 there was a perceptible decline in mutual trade, with imports recovering more quickly in the last two years.

In 2011 goods exchange worth $1,208.8 million was realised, with Serbian exports amounting to $352.6 million and growing by about 16 per cent compared to 2010. In 2012 Serbian exports recorded a decline of 5.42 per cent compared to 2011, with Serbian exports amounting to $333.5 million. At the same time, imports from Hungary in 2012 amounted to $810.1 million and recorded a decrease of 5.38 per cent. The volume of the exchange between Hungary and Serbia in 2012 ranks Hungary 10th in terms of foreign trade partners of Serbia on exports and 6th in terms of the value of imports.

The movement of coverage of

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ungary has been and remains a strategic partner of the Republic of Serbia in the political and economic sense, both at the bilateral level, due to the fact they share a border, and at the multilateral level, given its regulated status in relation to the most important political and economic groups and membership in numerous regional and sub-regional organisations.

Economic cooperation between Serbia and Hungary, particularly goods exchange as its most important segment, has intensified in recent years. Since 2001 this trade exchange has increased fivefold, though there is still a deficit on the Serbian side and imports are two and a half times greater than exports.

The movement of goods between Serbia and Hungary has varied in the last seven years. Until 2008, i.e. until the start of the global economic crisis, there was a growth tendency in both

The Serbian-Hungarian Chamber of Commerce was founded in 2009 and aims to encourage cooperation between enterprises on both sides of the border in all aspects

WORLD MARKETS AND OPPORTUNITIES | HUNGARY

imports by exports in the trade exchange with Hungary in 2011 was slightly over 41 per cent, while in the first six months of 2012 that coverage was only 29.8 per cent.

Among the international agreements that are important to bilat-

eral economic cooperation are the implementation of the Agreement on Economic Cooperation (2005), the Agreement on Avoidance of Double Taxation (2002) and the Agreement on Encouragement and the Reciprocal Protection of Investments (2005).

The Serbian-Hungarian Chamber of Commerce was founded in 2009 and aims to encourage cooperation between enterprises on both sides of the border in all aspects - in the areas of production, investments of Hungarian companies in Serbia and Serbian firms in Hungary, as well as a common appearances on the markets of other countries . This is how the need for businessmen in this European region to unite and support each other within common economic associations was explained in Subotica at the first presentation of the members of this newly formed association, which had only existed for about three weeks at the time.

The founders of this chamber are the Budapest Chamber of Commerce, the counties of Csongrád and BačKiškun and the Regional Chamber of Commerce of Subotica, as well as around 20 large companies from Vojvodina and Hungary - “Fornetti” MOL, CBA, Eksimbank and others.

The meeting in Subotica was organised as one of the concrete steps for encouraging economic cooperation between the two countries ahead

Leading SITC sectors in exporting to Hungary

10%

5%

Road vehicles

Non-ferrous metal

Plastics in primary forms

Power generating machinery and equipment Sugar, sugar-based products and honey

38%

12% 15%

Leading SITC sectors in importing from Hungary

Electricity

Iron and steel

7%

Crude oil and oil derivatives

10%

Plastics in nonprimary forms

22%

49%

7%

17%

12%

Mineral ores and scrap metal

Other

of the visit of then Serbian Prime Minister Mirko Cvetković and a group of businessmen to Budapest. The predecessor of the Association, the Hungarian-Serbian department of the Hungarian Chamber of Commerce and Industry, was founded in 2001 with the help of the Trade and Industry Chamber of the County of Csongrád.

The Serbian-Hungarian Chamber of Commerce was founded in Kecskemet, Hungary, and is based in Szeged, with a representative office envisaged in Subotica. In addition to developing cooperation in almost all areas of the economy except agriculture and services, this chamber’s programme includes assistance for members of the Chamber from Hungarian enterprises in Serbia to receive help from EU funds, especially through forms of cross-border cooperation.

The Regional Chamber of Commerce of Subotica and the Chamber of the County of Csongrád and Kecskemet are currently implementing three cross-border IPA projects which are financed from EU funds with €300,000. They are related to

Other

the education of entrepreneurs regarding economic conditions in the European Union, legal regulations of economic cooperation with Serbia and Hungary and the creation of an electronic network of data on SMEs on both sides of the border.

The Hungary - Serbia IPA Crossborder Programme belongs to the “new generation” of cross-border pro-

In the past eight years organisations from Serbia and Hungary have participated in 183 crossborder cooperation projects, financed by €34.3 million from IPA funds grammes in the budget for the period between 2007 and 2013. As the participating countries, Hungary and Serbia have established a shared management system for the programme.

Cross-border cooperation between the two countries began in 2003, under the auspices of the preparatory fund for small projects between Hungary and Serbia (PSPF - Pilot Small Projects Fund), according to the Phare National Programme for Hungary. The preliminary fund for small projects

Trade exchange between Serbia and Hungary, in million USD 1000 800 600 400 200 0 -200 -400 -600

was aimed at supporting people-topeople activities and helping institution building projects for non-profit organisations along the border between Hungary and Serbia, as well as preparing potential users of future funding from the INTERREG programme of interregional cooperation.

In the past eight years organisations from Serbia and Hungary have participated in 183 cross-border cooperation projects, which have been financed by €34.3 million from IPA funds. ■ Leading exporters: LBK Livnica, Kikinda – 8.56% Alumil YU Industry, Novi Pazar – 4.63% RTB Invest, Bor – 4.23% EFT Trade, New Belgrade – 3.9% Sunoko, Novi Sad – 3.81%

Leading importers: Mol Srbija, Belgrade – 13.95% Porsche , Belgrade – 6,56% OMV Serbia, Belgrade – 5.4% Naftachem, Novi Sad – 3.58% Speed, New Belgrade – 3.31% Sirmium Steel, S. NIS, Novi Sad – 3.37% Mitrovica – 2.45% Ball Packaging, Zemun NIS, Novi Sad – – 3.3% 2.22% Knott –Autoflex, Bečej Evolucija 2004, New – 3.18% Belgrade – 2.19% Hip - Petrohemija, Fiat Automobili Serbia, Pančevo – 2.93% Kragujevac – 2.02% PLC Interenergo, Železara, Smederevo Belgrade – 2.92% – 1.7%

Export to import ratio, in %

60

52.10

50.06 40.35 40

41.18

42.55 34.45

37.55

39.05

41.16

20

2005

2006 2007 2008 2009 2010 2011 2012 2013-VII

Export in USD

Import in USD

Balance in USD

0 2005 2006 2007 2008 2009 2010 2011 2012 2013-VII

HUNGARY | WORLD MARKETS AND OPPORTUNITIES

HUNGARIAN CULTURE

Travelling Through Centuries Within the often changing borders of Hungary during its history, fine arts developed in strong interaction with European art and although they always reflected European tendencies, these artists retained a strong character of their own

and the largest Early Christian Necropolis outside Italy is in Pécs.

H

GREAT SYNAGOGUE IN BUDAPEST

ungary is well known and beloved for its architecture and cultural heritage. Visitors may find themselves several hundred years back in the past, standing on a single street corner or visiting one of Hungary’s most admired sites. In Hungary you can find roman ruins, gothic churches, centennial houses and modern buildings, all next to each other.

Within the often changing borders of Hungary during its history, fine arts developed in strong interaction with European art and although they always reflected European tendencies, these artists retained a strong character of their own.

Beside Hungarian architecture, many foreign cultures and religions are represented throughout the country. For example, Europe’s largest synagogue is the Great Synagogue in Budapest, the Széchenyi Medicinal Bath is the largest medicinal bath in Europe, one of the largest basilicas in Europe is the Esztergom Basilica, the second largest territorial abbey in the world is the Pannonhalma Archabbey

ROMAN RUINS The Aquincum HÉV urban railway station on the route to Szentendre is named after the ancient capital of the Roman province of Pannonia Inferior.

Extensive remains of this garrison town can still be seen even today, including two amphitheatres, an aq-

Franz Liszt is probably the greatest of all Hungarian musicians: a piano virtuoso as well as a composer, he inspired forwardlooking contemporaries and predicted some future ideas and trends

WORLD MARKETS AND OPPORTUNITIES | HUNGARY

ueduct and the Roman baths, where there is now an outdoor bathing complex. Outside Budapest, the tombs at Pécs are a rare example of early Christianity beyond Rome itself. When the Hungarian Christian state was founded by Szent István in 1000AD, a host of Romanesque churches, cathedrals and fortresses sprang up. Very little remains today, but Romanesque relics can be observed in parts of the Esztergom Castle. The most celebrated complete buildings are the abbey churches of Ják, near Sopron, and Bélapátfalva north of Eger.

ARCHITECTURE The Renaissance movement was initially brought to Hungary by King Mátyás’s Italian wife and can be seen in the remains of the Visegrád Palace and the castle at Sárospatak in northeast Hungary. Baroque was the dominant architectural style during the economic boom under Empress Maria Theresia, whose legacy includes the stately palaces of Fertod, Keszthely and Gödöllo, as well as numerous churches scattered all over Hungary.

Following the floods of 1838, when many buildings in District V were washed away, the area was largely redeveloped in the classicist style. A little further from the city centre, the National Museum is a powerful and attractive display of huge Romanstyle columns at their most impressive. The prosperous period of the late 19th century and just prior to World War I brought a boom in the construction industry and a number of former styles were resurrected. The Parliament is typically Gothic, but with a Renaissance dome, while a stroll down Andrássy út reveals buildings shamelessly combining Renaissance and Baroque elements. Hungarians had a major hand in Walter Gropius’ Bauhaus movement in Weimar, helping spread its principles of design

FRANZ LISZT

and architecture all over Europe and America after 1933. Some returned to Hungary to build prominent villas in the Buda hills and the simple but beautiful Városmajor Church in the park behind Moszkva tér.

LITERATURE Latin was Hungary’s literary language until the 19th century. The Funeral Oration (c.1230) is the oldest surviving work in Magyar, while some 14th and 15th century chronicles also exist. The Reformation prompted various translations of the Bible.

Poets Bálint Balassa (late 16th century) and Miklós Zrinyi and István Gyöngyössi (17th century) were succeeded in the 18th century by Vitéz Mihály Csokonai and Ferenc Faludi.

In the last quarter of that century, Hungarian literature was given a new lease of life with the works of György Bessenyei, while Ferenc Kazinczy led the reform of the Hungarian language.

The establishment of a national theatre and the 1825 founding of the Hungarian Academy of Science assured the development of the national literature. The leading literary figures in the 19th century were poets Károly Kisfaludy (also a noted dramatist), his brother Sándor, János Arany, Mihály Vörösmarty and Sándor Petőfi, as well as the novelist Mór Jókai. Endre Ady and Attila József were the country’s outstanding poets of the early 20th century, while dramatists Ferenc Herczeg and Ferenc Molnár also achieved international acclaim.

Between the two world wars, novelists were divided into three groups—the Horthy regime defenders; the Populists, who sought improvement of the peasants’ lot; and the Communists. The most eminent Populist was László Németh. After World War II Hungarian literature fell under Soviet influence and the Communist party exercised rigid control over writing and publishing. Writers who adhered to the Soviet doctrine of socialist realism included the poet György Somlyó and prose writers Géza Hegedűs and József Darvas. Diverging from this doctrine were poets László Mécs, whose works were only published outside Hungary, and Gyorgy Faludy, who was imprisoned for three years before fleeing the country, and the novelist Tibor Déry, who was also imprisoned for his nonconformity. The revolt of October 1956, whose participants included a number of prominent writers, was followed by a

Popular music is featured at numerous festivals across the country – first and foremost the Sziget Festival (www.sziget.hu), dubbed one of Europe's best major festivals gradual easing of censorship. Censorship finally ended with the collapse of the Communist regime.

MUSIC Hungary has undoubtedly made some important contributions in the field of classical music. Franz Liszt is probably the greatest of all Hungarian

VISEGRÁD CASTLE

composers. A piano virtuoso (he was a sort of rock star of his age – his contemporaries lauded him as the greatest pianist of all time) as well as a composer, he inspired forward-looking contemporaries and even predicted some ideas and trends that would only come to the fore in the 20th century. Head to the Franz Liszt Memorial Museum and Research Centre to find out more about him (www.lisztmuseum.hu). The beginning of the 20th century brought two more exceptional characters: Béla Bartók and Zoltán Kodály, who both set out to collect Hungarian folk songs all over the Carpathian Basin and incorporate them into their music.

FOLK MUSIC What about folk music? In the years of communism folk culture was seen as a deviation from the mainstream ideology and was thus marginalised, so over the last decades of socialist rule the folk movement emerged as a form of resistance. Today there are a vast number of great folk bands and dance companies.

Márta Sebestyén is the name that probably first comes to mind – this former student of Mr Kodály is practically the embodiment of Hungarian folk music today, performing sold-out concerts all over the world. For the whole folk-band experience, however, book a ticket for one of the performances of the Csík Band or Ghymes Popular music is featured at numerous festivals across the country.

First and foremost the Sziget Festival (www.sziget.hu), dubbed one of Europe’s best major festivals. ■

VITÉZ MIHÁLY CSOKONAI

HUNGARY | WORLD MARKETS AND OPPORTUNITIES

SERBS IN HUNGARY

Migration, Flourishing, Disappearance, Return The number of Serbs in Pest and Buda increased with resettlement following the liberation of Hungary from Turkish authority.

Opportunities for material gain and cultural development were more favourable than in their home country, where the successful struggle for liberation from the Turks only began 120 years later

”A

nd in the year 1690 Arsenije III Čarnojević, Serbian Patriarch, in response to an invitation from emperor Leopold I, caused rebellion in the nation against the Turks and in one trip led a migration into Hungarian of 37,000 families, and the Serbs settled even as far as greater Buda. In 1737 Patriarch Arsenije IV Jovanović, responding to a call from emperor Charles VI, again called on the Serbian people to flee to Hungary, but the Turks noticed early, killing and enslaving more people than found refuge with him on this side (the patriarch himself said that in Karlovac he had dreamt on Christmas eve how God had sought an answer from him for the 80,000 souls who perished for him!).“ (Vuk Karadzic Depiction of the nation - Review of old history)

BUDAPEST

Thus begins the first description of the arrival of the Serbs on the territory of present-day Hungary. Today there are just over 10,000 Serbs in Hungary (according to the 2011 census), but once upon a time it was completely different. The Serbian minority was the quickest to integrate into the former great empire, and both Buda and Pest were centres for preserving our country’s culture and intelligence at a time when Serbia was under Ottoman occupation.

Historian Istvan Poth wrote in his work “Pest and Buda as the Cultural Centre of Serbia in the First Half of the 19th Century” (1882) that the

Historian Istvan Poth wrote that the number of Serbs in Pest and Buda increased with people settling after the liberation of Hungary from Turkish authority

WORLD MARKETS AND OPPORTUNITIES | HUNGARY

number of Serbs in Pest and Buda increased with people settling after the liberation of Hungary from Turkish authority. Opportunities for material and cultural development were more favourable than in their home country, where the successful struggle for liberation from the Turks only began 120 years later and where that struggle lasted longer. Serbs in

what was a strange environment for them lived mostly in the boundaries of Serbian-Orthodox municipalities.

This primarily applied to the Buda suburb of Taban, where the civilian council was also in Serb hands, based on privileges received from Vienna.

Serbs were represented in the city council of Buda and Pest by one senator, “ratsher”, as Sava Tekelija wrote.

The most famous of these senators was writer Jovan Muškatirović, who wrote his works in Serbian, Hungarian and Latin.

Serbs also played an important role in economic life. We know, for example, about the privileges awarded back in 1695 to the Serbian butchers’ guild, the tailors and quilt makers guilds. The guild rules for Serbian hat makers were confirmed in 1696, while from 1697 there was also a guild of Serbian furriers. There is also a preserved list of Buda’s master tradesmen, merchants and shopkeepers from 1719.

In 1746 the Serbian parish in Buda, for example, passed academic regulations that corresponded to the spirit of the then pedagogical principles. There was a Serbian school in Buda in the 18th century which – on the basis of available data for 1730, 1734 and 1770 – had around 60 stu-

dents. A Serbian school operated in Pest in the late 17th century and, according to data from 1770 and 1827, it was attended by approximately 30 students. Pest’s Serbian School was expanded in 1808 to include a third grade and from there, in addition to “spelling books” and “thesauruses”, they also learned “orthography”, which they already had lessons in from Latin. The most renowned and most important Serbian teacher in Pest was certainly Vuk Karadžić’s associate Luka Milovanov.

In favourable economic conditions in Pest and Buda, Serbs also developed their social life. Writing about the Serbian dances that were organised at the time of the carnival in 1786, Sava Tekelija noted: “At that time the balls of Serbs were held on Saturday ‘at the Crown’ in Taban, on Sunday in the city, on Monday in Pest at ‘7 kurfiršta’, where it was more dangerous to life than navigating between two ice bergs... on Tuesday the ball at ‘the White Cross’, in Wasserstadt, on Wednesday again in Pest (!) at Haker’s Hall, on Thursday in the city... “ In the first decades of the last century Serbs would gather on Saint Ilija’s Day in the free space around the well with rich and clear water, which bore the name of the celebrated saint and here they would enjoy themselves and have fun. The fountain of St. Elijah was located in the former Orczy gardens in today’s VIII district of Budapest. Its clean water was vital to the residents of Pest at the time when there was no municipal water supply system.

Although Buda had the largest Serbian settlements in the 18th century, there is not much information about the life of Serbs in Buda. According to some data, we can conclude that vibrant cultural activity developed here. Thus, for example, Buda was home to Jovan Damjanović, who embarked on a pilgrimage to Jerusalem in around 1728 and wrote about that with a lot of autobiographical elements. Famous painter Mihajlo Živković was born in Buda in 1776. He studied at

the Academy of Fine Arts in Vienna and after completing his art studies began painting icons for Serbian citizens in Buda, Pest, Szentendre and other places. In 1802 he was entrusted with the painting of the iconostasis of the Szentendre Annunciation Church. Later Živković painted his second and last iconostasis at the Nikolaevskaya Church in Balassagyarmat. Dinko Davidov, author of the book ‘Icons of Serbian churches in Hungary,’ writes: “...the religious

ARSENIJE III ČARNOJEVIĆ, SERBIAN PATRIARCH LED A MIGRATION INTO HUNGARY (PAJA JOVANOVIĆ)

In 1910 some 26,248 people were listed as speaking the Serbian language on the territory of Hungary, only for this number to reach only around 2000 in the year 1990, while the 2011 census showed that the number of Serbs in Hungary had increased again, to more than 10,000 compositions of Serbian painters from Buda, both the one in the Szentendre Annunciation Church and the one in the Nikolaevskaya Church in Balassagyarmat, represent valuable and indispensable works of more contemporary Serbian art...”

“The Buda folk lived among the Hungarians, in their capital city, and the closest to Vienna, the first of the Serbs learned Hungarian and German, the first on their skin to feel the

ways of ‘lordly living’, and among the Serbs they were definitely the most affluent and cultured, and the first to succeed in becoming citizens...” wrote Dušan J. Popović illustrating the Serbs of Buda. However, according to other sources, the same could be said of Serbs from Pest and Szentendre and other Hungarian cities.

In the 18th and early 19th centuries the Serbs who lived in Hungary considered this country as their homeland. Returning from Russia, Sava Tekelija wrote: “In Újhely [Satoraljaujhely] I was delighted at the market that I had come into my own country; there I saw white bread at the market, there bacon, there cakes and I thought: blessed country of mine! “ In the census of 1910 some 26,248 people were listed as speaking the Serbian language on the territory of Hungary. This number constantly fell in the censuses that followed until finally reaching only around 2000 in the year 1990. The number of people declaring themselves as ethnic Serbs in Hungary’s 2001 population census was 3,388. To the general surprise of all, the 2011 census, the results of which were only published in 2013, showed that the number of Serbs in Hungary had increased again, to more than 10,000.

This increase was interpreted at the time of the results’ publication by Ljubomir Alexov, president of the SelfGovernment of Serbs in Hungary, who said: “We must bear in mind that such favourable results of the census were influenced significantly by the migration process, which has been present in the last fifteen years from Serbia and other former Yugoslav republics. Those compatriots of ours have mainly settled in major cities, which is why, for example, an increasing number of Serbs is highly evident in Budapest and Szeged, but also in Kecskemet, which is a novelty for us when it comes to the existence of the Serbian community. The situation is also similar in some other major towns. We now have the task of finding those Serbs and trying to involve them in the life of our community. “ ■

HUNGARY | WORLD MARKETS AND OPPORTUNITIES

INTERVIEW JELENA KENIĆ, COUNTRY MANAGER, GEDEON RICHTER IN SERBIA

Delivering Quality Therapy Through Generations Richter’s management is convinced that the pursuit of innovation and creativity is the essential for competitiveness in the pharmaceutical industry and in this regard the company has made a strategic decision to develop and produce biotech medicines among the ranks of the most important pharmaceutical research bases in Central and Eastern Europe, with national and international awards testifying to the company’s successful innovative activities.

Bearing in mind that today about 40 - 45 per cent of newly registered drugs are biological or biotechnological molecules, it is clear that biotechnology is one of the crucial areas for the progress and future of the pharmaceutical industry. Richter’s management is convinced that the pursuit of innovation and creativity is the essential condition for competitiveness in the pharmaceutical industry and in this regard the company has made a strategic decision to develop and produce biotech medicines. In addition to the research centre and laboratory in Budapest, a

G

edeon Richter, a multinational pan-European specialised pharmaceutical company, was founded in Hungary in 1901. During its continuous 113-year long tradition, the company has been constantly committed to quality and innovation. “More than two hundred Richter brand products are available in over 100 countries through our own distribution network,” says dr. Jelena Kenić, country manager at Gedeon Richter in Serbia: “The company has a direct presence in 38 countries with five manufacturing locations, 29 representative offices and 27 commercial subsidiaries. “Opening of the Representative Office in Belgrade in 2007 resulted in the intensification of marketing activities and continuous expansion of the portfolio on this market, in order to provide the general and professional public with quality therapy at affordable prices.”

■ The company is known worldwide for its pharmaceutical research and is one of the regional leaders in this respect.

- Innovation and research of original molecules have been key elements of the company’s strategy since its inception. The Gedeon Richter research team now has a staff of 1,000 people, while 11% of annual turnover is invested in research, innovation and development, which are key strategies for the future of the company.

Thanks to this fact, Gedeon Richter is

Gedeon Richter in Serbia, as part of a large multinational company, has a portfolio on the domestic market that covers a wide range of pharmacological-therapeutic areas

WORLD MARKETS AND OPPORTUNITIES | HUNGARY

state of the art facility was opened in Debrecen in 2012 that is of great importance to the regional economy.

It produces recombinant proteins that the company intends to present to the market in several therapeutic areas in the near future.

■ Which pharmaceutical product segments does Gedeon Richter offer on the market Serbia?

- With its original, generic and licensed drugs, the company strives

to provide effective and affordable treatment. Gedeon Richter in Serbia, as part of a large multinational company, has a portfolio on the domestic market that covers a wide range of pharmacologicaltherapeutic areas, such as gynaecology, cardiovascular systems, CNS, and, as the only manufacturer of emergency contraception, makes a significant contribution to educating health professionals and the general public. We are well known to professionals and patients mainly due to our reputation as a reliable partner when it comes to caring about the health of women and one of the few companies in the world with a full range of gynaecological products. We strengthened our prominent position in this area with the successful acquisition of Swiss company PregLem, which is dedicated to the development of a new class of drugs for the treatment of benign gynaecological conditions, so we can proudly say that we offer the Serbian market a product that represents the latest achievements in the area of the medical approach to the treatment of uterine myomas.

■ In which direction will your activities continue on the Serbian market?

- Through our operating in Serbia, the confidence of those who decide on effective, modern and affordable treatment offered by Richter Gedeon, we will continue to justify, in order to achieve our global mission - providing of quality therapy at affordable prices to all those who need it. ■

TOURISM IN HUNGARY

BUDAPEST

Romance of Central Europe Despite having no seaside, Hungary is an extremely popular tourist destination, especially among Western tourists, particularly due to its thermal springs and numerous spas

H

ungary, the Central European country in our neighbourhood, borders, apart from Serbia, Romania, Austria, Slovakia, Ukraine, Croatia and Slovenia. Despite having no seaside, Hungary is an extremely popular tourist destination, especially among Western tourists, particularly due to its thermal springs and numerous spas.

BUDAPEST Fisherman’s bastion (Halászbástya) is named after the great fish market that existed on this site in the Middle Ages. Although it has the appearance of a medieval fortress, it was only built in 1902 as an addition to the architectural whole of Matthias Church. Given that the tower offers a fantastic view of the whole of Budapest, and because it is located near

other historical buildings of old Buda, this is one of the most attractive tourist spots in the city. The Chain Bridge (Széchenyi Lánchíd) offers one of the most beautiful views of the Danube at night. Built over seven years, it was

Around 20 kilometres from Budapest is a small town famous for its numerous galleries, museums and memorial collections. In the 16th century Szentendre was also the centre for Serbs who settled in Hungary

finally opened in 1849 and named after Count István Széchenyi, who initiated construction twenty years earlier, when a severe winter meant the bridges were closed and he could not cross the Danube and, as a result, he arrived a week late in Vienna, where his father had died.

GYULA SPA Gyula spa, with its 10 pools, represents a healing spa resort which helps in the treatment of rheumatism,

HORTOBÁGY NATIONAL PARK

HUNGARY | WORLD MARKETS AND OPPORTUNITIES

SZENTENDRE

sciatica and various injuries. The city of the same name where the spa is located is known for being the centre of the Romanian national minority.

The city is located in southeast Hungary near the Romanian border. Gyula Spa is located near the left tributary of the River Tisza at White Karas. The spa’s architecture is typical Pannonian, with bungalows, bright colours and antique palaces with slightly kitsch façades. The town is decorated with church towers (8 in total), famous medieval red brick towers and Gyula Fortress.

With its 10 pools, this spa resort helps in the treatment of rheumatism, sciatica and various injuries.

And alongside the indoor part, which is used primarily for treatments, this widely renowned spa also has outdoor swimming pools designed for recreational users, athletes and tourists in general.

park is widely renowned bridge with nine holes. It provides the habitat for many species of mammals, but also a large number of birds (as many as 342 species). Declared a national park in 1973, it is also specific for becoming the first national park in the country.

SZENTENDRE Around 20 kilometres from the Hungarian capital is situated a small town famous for its numerous galleries, museums and memorial collections. Interestingly, in the 16th century Szentendre was also the central settlement for Serbs who had fled to Hungary. And today, among other things, Szentendre is home to the seat of the Buda Diocese of the Serbian Orthodox Church. According to a folk tale, Serbian Patriarch Arsenije Čarnojević rested at the “Old water” spring located near the town.

There are a total of seven churches, four of which belong to the Serbian Orthodox Church: Požarevačka, Trans-

The steppe area in the east of the country has been turned into the Hortobágy National Park, which stretches over a territory of almost 800km² through an area of wilderness (Hungarian Puszta)

HORTOBÁGY NATIONAL PARK The steppe area in the east of the country has been turned into the Hortobágy National Park, which stretches over a territory of almost 800km² through an area of wilderness (Hungarian Puszta), the steppe area in Eastern Hungary that is rich with folklore and culture. Hortobágy National Park is part of the Hungarian Great Plain (Alföld), which is the largest protected area in Hungary and the largest grassed area in Europe. The biggest attraction of this WORLD MARKETS AND OPPORTUNITIES | HUNGARY

figuration, Episcopal (i.e. Belgrade Cathedral) and the Annunciation. A large number of surviving icons and other religious objects are kept in the “Serbian Orthodox Museum”.

One must-see museum here is the “Museum of Marzipan”.

HARKÁNY SPA This unique European Spa is located just 250 kilometres from Belgrade.

This world famous bathing resort and health spa has existed since 1823. A known source of sulphurous mineral water, rich in minerals, it helps in the treatment and prevention of chronic gynaecological diseases, vascular diseases and osteoporosis.

LAKE BALATON Hungary’s Lake Balaton is one of the largest lakes in Central Europe.

Located 120km southwest of Budapest, it extends diagonally from the capital. It is assumed that the name is derived from the Slavic word mud (blato), and the descriptive name of the lake, Muddy Lake, testifies to this.

During the period of the Roman Empire it was known as Shallow Lake.

The largest inflow to the lake comes from the River Zala, while its only outflow is the Sió artificial channel.

The lake is situated 104 metres above sea level. It covers an area of 592km2 and has a length of 77km and a width ranging from 4 to 14 km. The maximum depth of the lake 12.2m and its average depth is 3.3m. The entire shoreline of Lake Balaton is good for winegrowing, which is why this part of Hungary is among the most important when it comes to wineries.

On the north side of the lake are the most famous wineries, Copake-Fured and Tiffany, where the country’s most famous Franciscan wine is produced.

MÓRAHALOM Located near the town of Sze-

LAKE BALATON

SZEGED

ged, 20 kilometres from the Serbian border, is Mórahalom. This town’s Erzsébet (Elizabeth) Spa consists of 13 pools and also offers tourists wellness services throughout the year. Treatment at this spa is offered to those suffering from rheumatism, various gynaecological diseases and injuries, especially related to the spine. Additionally, tourists can also enjoy a great time and the spa complex includes a restaurant-tavern.

SZEGED Szeged’s Aquapolis is one of the biggest bathing complexes in Europe and can accommodate up to 3000 swimmers. It includes entertainment and wellness programmes for all ages, indoor and outdoor pools covering a total area of 4400m² and the largest water slide in Europe (30 metres high and 272 metres long), which is open throughout the year.

Aquapolis contains saunas, massage rooms, “Silent Wellness” (relaxation zone for over 16s with the following services: swimming pool for

Aquapolis in Szeged is one of the biggest bathing complexes in Europe and can accommodate up to 3000 swimmers.

It includes entertainment and wellness programmes for all ages fun and bubble bath, Finnish sauna, infra sauna, steam chamber, salt chamber, tepidarium, aroma room, outdoor sauna, usage possibilities for

3 hours per day and WIFI internet), a children’s pool, “baby world”, steam cabin, salt cabin and aroma cabin. All Aquapolis contents can be used free of charge during the day for hotel guests. In the new treatment wing, specialist doctors await guests who come for rheumatologic, physiotherapy and rehabilitation check-ups.

Within the facility are 14 double rooms where care is provided in a day-care hospital complex and guests can rest and recover in a cultured environment. On two levels of the treatment building are rooms for individual exercise, physiotherapy, treatment with underwater jets, bathing with carbon dioxide, baths with mineral water, spaces for treatment with healing mud, group underwater exercises, swimming with weights, massage rooms and training halls.

It is perhaps not so well known that scientists from this city’s Institute for Biological Research produced the world’s first artificial genetic material in the year 2000. ■

MiniPani Ltd., as a major 2002 production investment from Hungary in Serbia’s agro-processing industry, produces, stores and distributes deep frozen puff pastries within the franchise system, which was established for baking pastry products in the sales area of the Franchisee.

As a Franchisor, for 12 years we have successfully applied our franchise strategy that meets all the requirements of the Code of Ethics for Franchising, we have an important mission and vision for the territory of the Western Balkans.

We intensively develop MiniPani products with added value, which are the result of our own knowledge. A careful selection of raw materials, the highest level of quality control and compliance with food safety standards, together with the high level of expertise of our employees, results in products of impeccable quality that can be measured alongside the products of the world's leading bakery companies.

Our products are placed on the market under its own trademarked brand name MiniPani.

MiniPani exports the know-how of its franchise business and seeks Master partners in the narrower and wider region.

HUNGARY | WORLD MARKETS AND OPPORTUNITIES