Diplomacy&Trade 2023-03

2023/III

HUF 1710

THE EUROPEAN UNION NEEDS A COMMON FOREIGN AND SECURITY POLICY A VISIT TO HUNGARY BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES OF MALTA SEE ARTICLE ON page 08

Hungary Less Attractive to Foreign Investors In 2022, 88% of the survey participants would choose Hungary again as a place to invest, but this year, the figure has fallen to 79%, according to the Spring 2023 Economic Survey conducted by the German-Hungarian Chamber of Industry and Commerce (DUIHK) that celebrates its 30th anniversary this year. However, the German chamber considers this decline as a temporary development.

see article on page 12

CEOs for Balance The Hungarian Business Leaders Forum (HBLF) launched a campaign to promote the role of women in corporate leadership.

Entitled ’CEOs for Balance’, the initiative is aimed at raising awareness and promoting diversity in the Hungarian corporate world. HBLF paired up 12 executives living and working in Hungary to work together and share best practices and processes that they bring from their respective industries. see article on page 11

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The speaker of the Maltese parliament, who visited Hungary recently, emphasizes in an interview with Diplomacy&Trade that a common foreign and security policy, something that the European Union doesn't have now, is needed. The lack of such policy weakens Europe, the politician said.

The topic of this month’s analysis is also diplomacy. The announcement that Iran and Saudi Arabia that not only rivals for regional dominance but also the leading representatives of the two main branches of Islam (Shiite and Sunni, respectively) will establish formal diplomatic relations may have come as a surprise to many. The fact that the deal was brokered by China makes it look like an anti-West coalition, an attempt to lessen US influence. The question is whether competing regional agendas prove to be stronger…

Our business page discusses the results of the latest annual survey conducted by the German-Hungarian Chamber of Industry and Commerce. The main finding is that companies currently assess their own prospects as more negative than at any time in the last ten years. However, the willingness to invest indicates that many companies regard the current economic downturn as temporary.

Still on the business front but from a different aspect: in order to promote the role of women in corporate leadership, raise awareness and promote diversity in the Hungarian corporate world, 12 executives living and working in Hungary have been paired to work together for a year as ambassadors of this cause. Two of these business leaders share their thoughts with you on what they will focus on in this role.

Businesspeople will also be present at the biggest horse polo competition of the year in Hungary this June. The organizer, and also the owner of the venue near Budapest, explains that it is just as much a sports as a social event.

WittyLeaks is authored by the Argentinian Ambassador on how he managed to secure a short audience – together with a talented young musician – with (the also Argentine) Pope Francis during the latter’s recent visit to Hungary.

Our wine page is on a cross-regional wine association while the gastronomy page presents a young chef from Transylvania who studied philosophy at university and played the drums in a band but still ended up in a Michelin-starred restaurant.

May is indeed a lovely month, full of new growth and renewal as spring begins to bloom.

We hope that you have a wonderful May as well and enjoy the many outdoor activities of the Hungarian capital and countryside!

Peter Freed PUBLISHER

AND DON’T FORGET

monthly in print - daily on the web

www.dteurope.com

Peter Bence takes piano playing to a new level

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From philosophy studies to fine dining

Fine wines association established in Hungary

contents 05 ON THE RECORD 06-07 COMPANY BRIEFS 08 DIPLOMACY

Maltese parliamentary delegation in Hungary 10 ANALYSIS Diplomatic agreement between Iran and Saudi Arabia 11 DIVERSITY Business leaders as HBLF ambassadors 12 BUSINESS German-Hungarian Chamber of Industry and Commerce Annual Survey 13 CULTURE A worldwide piano sensation from Hungary

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page 16

14 WITTYLEAKS

by the Ambassador of Argentina 15 SOCIETY The Riserva Polo Cup 16 WINE Cross-regional wine cooperation 17 WHAT’S ON Concerts, festivals, events and exhibitions in and out of Budapest 18-19 GASTRONOMY Gourmet festival in the Hungarian capital; Young Transylvanian sous chef in a Michelin-starred restaurant in Budapest

PUBLISHER: Peter Freed PHOTO EDITOR: Dávid Harangozó SALES & MARKETING DIRECTOR: Tamás Varga ADMINISTRATION: Blanka Szalontai CONTRIBUTORS: Edith Balázs, Sándor Laczkó, Tamás Magyarics, Hernán Patiño Mayer PHOTO CONTRIBUTORS: Dávid Harangozó (cover), DUIHK (cover), Zoltán Fischer/Prime Minister’s Press Office, Duke83/Wikipedia, depositphotos.com, vajdapapir.hu,

ganzelectric.com, Wellis Facebook, DUIHK, Embassy of Argentina, La Estancia Polo Club, Naglis Bierancas, Light Art Museum, Frances Marshall, Live Nation, Sziget, Viktor Korsós, Dávid Horpáczi, Gourmet Festival, MTI Photos: Attila Kovács, Tibor Katona, Szilárd Koszticsák

Copyright 2004-2023 DUAX Kft., all rights reserved | ISSN 1589-8075 This magazine is produced by DUAX Kft. The opinions published in the magazine do not necessarily reflect the opinions of DUAX Kft.

COPIES ARE AVAILABLE AT SELECTED RELAY AND INMEDIO OUTLETS IN MAJOR HUNGARIAN CITIES.

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DUTCH FOCUS – COMING SOON

Diplomacy&Trade – in cooperation with the Dutch Embassy in Budapest – presents a special Focus section on relations between Hungary and the Netherlands. The Netherlands is Hungary's 9th most important trading partner, bilateral economic cooperation has a significant impact on the performance of the Hungarian economy: 800 Dutch companies employ about 22,000 Hungarians while Dutch investment in Hungary is worth EUR two billion. Trade volume between the Netherlands and Hungary – imports and exports combined – is nearly EUR 10 billion. The compilation includes an extensive interview with Ambassador Désirée Bonis discussing economic ties, cultural and civilian cooperation. Of course, we also present the activities of the Netherlands-Hungarian Chamber of Commerce in Budapest and several of the Dutch ventures operating in Hungary.

We welcome inquires for advertising in this issue.

PLEASE CALL TAMÁS VARGA FOR FURTHER INFORMATION +36 209 350 250 - tvarga@budapestweek.com 2 0 2 3 / III

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photo by NAGLIS BIERANCAS, VIKTOR KORSÓS, DÁVID HORPÁCZI, DEPOSITPHOTOS.COM

letter from the publisher

on the record UPCOMING NATIONAL DAYS 3 May 17 25 26 2 June 5 6 10 12 12 17 23 25 25

Poland Norway Jordan Georgia Italy Denmark Sweden Portugal Russia Philippines Iceland Luxembourg Slovenia Croatia

National Day National Day Independence Day National Day Republic Day Constitution Day National Day Portugal Day Russia Day National Day National Day Grand Duke's Official Birthday Statehood Day Statehood Day

photo by ZOLTÁN FISCHER/PRIME MINISTER’S PRESS OFFICE, ATTILA KOVÁCS/MTI, DUKE83/WIKIPEDIA, DEPOSITPHOTOS.COM, TIBOR KATONA/MTI

PAPAL VISIT TO BUDAPEST Pope Francis had a three-day visit in the Hungarian capital with the aim of demonstrating his commitment to building up a more fraternal society in a Europe wounded by war. Hungary is the third country, after Greece and Cuba, to have been visited by him for the second time.

After his arrival, the pope was received by President of the Republic, Katalin Novák, Prime Minister Viktor Orbán and other state leaders as well as religious figures. On the second day, he had the opportunity to meet Hungarians, including young people and minority communities as well as children with special educational needs, children with visual and mobility impairments. Another meeting took place in a downtown church with poor people and refugees and also with the Greek Catholic community.

The main event on the last day of the visit was a mass celebrated by the pope in front of the Parliament building on Kossuth Square. In his speech there, he emphasized “the closed gates of our individualism in a society that threatens to leave many to languish in solitude; the closed gates of our indifference to the suffering and the poor; the closed gates to those who are strangers, others, refugees, poor."

COMMANDER OF THE HUNGARIAN DEFENSE FORCES RELIEVED

THE MARCH OF THE LIVING ON HOLOCAUST MEMORIAL DAY The March of the Living was held again this year in Budapest in memory of the victims of the Holocaust.

Thousands of people marched in the Hungarian capital to demonstrate against all forms of exclusion and prejudice.

Speakers stressed the importance of remembrance, the responsibility of contemporaries and the role of education.

As the Chairman of the Board of Trustees of the March of Living Foundation in Hungary, Gábor Gordon pointed out, "this year's walk commemorates the victims of forced labor service, who are not often mentioned in commemorations, even though more than 100,000 Jewish and non-Jewish people were conscripted into labor service and forced into labor camps from 1939 onwards." Of these, 60,000 did not survive the service because of inhuman and cruel treatment and conditions.

Israel's Ambassador in Budapest, Yakov Hadas-Handelsman stressed that education has a crucial role to play in eradicating anti-Semitism and in making young people aware of the crimes committed during the Holocaust. w w w . d t e u r o p e . c o m

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On the proposal of Defense Minister Kristóf SzalayBobrovniczky, the President of the Republic Katalin Novák relieved – with immediate effect on April 27 – Lieutenant General Romulusz Ruszin-Szendi, Commander of the Hungarian Defense Forces, from his post.

At the same time, the Minister of Defense proposed Lieutenant General Gábor Böröndi (pictured), Head of the Military Representative Office of the Hungarian Defense Forces to NATO and the EU in Brussels, for the post.

Gábor Böröndi, a rifleman by training, has served in various command posts in the Hungarian Defense Forces and has participated in NATO operations in Europe and beyond.

According to a statement by the Ministry of Defense, Gábor Böröndi is the Hungarian general with the broadest command and military leadership background, the broadest theater experience in NATO, and the most experienced former Deputy Chief of Staff. He graduated from US and NATO Staff Colleges.

As the ministry points out, the new chief of general staff's priority task, in addition to the continuation of the organizational culture change initiated so far, is to continue the development of a modern, effective Hungarian Defense Forces capable of demonstrating serious deterrence.

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GKI ECONOMIC SENTIMENT INDEX FELL IN APRIL In April, business expectations fell back to their level at the beginning of 2023, and the consumer confidence index also declined slightly. According to a survey conducted by GKI Economic Research Co. with the support of the EU, expectations in the business sector deteriorated, especially in industry and services. However, intentions to raise prices in all sectors and consumers’ inflationary expectations declined significantly.

In recent months, the mood in the business sector was rather mixed. In industry, the decline was caused by a deteriorating assessment of the stock of orders and production prospects. However, the assessment of inventories and export orders improved slightly.

The mood in construction improved slightly in April, after a major deterioration in March.

The outlook for structural engineering improved, whereas that for civil engineering deteriorated. In construction, satisfaction with output in the previous three months was markedly worse, with the assessment of the stock of orders improving, though only within the statistical margin of error. The trade confidence index continued to fall in April after improving at the beginning of the year.

BALATON CRUISING SEASON KICKS OFF The 177th Balaton cruise season started on April 8, with the Balaton Shipping Company (Bahart) offering more program boats and high season services than before, the company said at its season opening press conference.

Bahart CEO Gábor Veigl highlighted that last season was a very successful one and that they would like to close at least that well this year. In the 2022 shipping season, almost 700,000 passengers travelled on the company's passenger boats, nearly 1.4 million on its ferry services, and 450,000 vehicles and more than 110,000 bicycles were transported from one side of the lake to the other. Ferry traffic so far this year has been 4% below expectations, mainly due to the weather, he added.

In response to demand, the company is launching more program boats this spring and increasing their capacity by around 20% where possible. “Some sailings will start earlier in the spring than in previous years, while in the high season, sailings on the most popular routes will be more frequent," the CEO said, outlining the main changes.

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­company briefs

VAJDA-PAPÍR TO BECOME CARBON NEUTRAL BY 2050 Hungary's leading manufacturer of hygiene paper products, Vajda-Papír, has pledged to reduce its water consumption by 20% by 2030, increase the use of renewable energy by 50% and become carbon neutral by 2050.

Over the past ten years, the company has invested around HUF 40 billion to ensure that its production and operation of tissue paper is based on the most environmentally friendly, sustainable technologies. Also, Vajda-Papír was one of the first industrial producers to publish its Environmental, Social and Governance (ESG) report, which includes its environmental measures and commitments.

Its main pillars are environmentally friendly production with modern, environmentally friendly technical solutions;

environmentally responsible raw material procurement: the use of fiber from certified responsible forestry; environmentally responsible operations and management; and environmentally responsible transport. Consumer education on environmentally friendly products (green labels) is also an important element of sustainability efforts, the company says.

"We are expanding the range of sustainable hygiene products, working to reach 45% of environmentally conscious products by the end of 2023," managing director Attila Vajda was quoted as saying in the statement, adding that the company produces 140,000 tons of paper products annually in a highly energy-intensive area.

According to the report, the proportion of recycled materials in packaging materials will be increased to 60%, which will reduce the company's plastic consumption by 600 tons per year, he said.

UBM GROUP EXPANDS IN THE PIG FARMING SECTOR a year in the coming years, the group said in a statement. The group expects to become a dominant player in commodity trading (distribution of feed-related products), the production and sale of feed supplements, premix production, feed mixing and distribution, as well as in the livestock production market.

The group added that the expansion of the area of activity was also included in the corporate strategy presented at the beginning of March, which is why they decided to enter a new area. By 2026, the company will have built the most modern and sustainable pig farm in Europe, capable of rearing 50,000 pigs at a time, and plans to produce 350-500,000 fattening pigs a year through further acquisitions.

NEW HIGH-TECH PRECAST CONCRETE PLANT IN HUNGARY The inauguration of Ineton Ltd.’s new automated plant in Alsónémedi, just south of Budapest, marks an important chapter of the domestic reinforced concrete manufacturing market. The HUF 16 billion investment – 15% of which is covered by Hungarian taxpayers through a government decision – allows to produce special-purpose precast concrete which enhances construction efficiency to a large extent. As a result of the extension headcount surges to 140.

Ineton Ltd.’s development has been implemented in an area of 10.5 hectares where a production hall of 17,000 sq meters has been set up. The new plant hosts fully automated production lines to process reinforced steel and to make slabs as well as wood panels. The company is thus enabled to manufacture special-purpose precast concrete products that are suitable for a great variety of buildings. A range of engineering, electric and heating-cooling systems can also be integrated in the items produced.

The newly created capacities are set to cover up to 10-15% of the regional home building market, that is 1,200 to 1,500 resident units. Annual planned output amounts to 300,000 sq meters of slabs and 250,000 sq meters of wood panels. This modular concrete building technology not only cuts costs and time, it also strikes a balance between serial and custom-made production in construction. In addition, in order to further improve production efficiency, Ineton Ltd. is working on a number of other solutions that are not yet available in Hungary.

TRANSFORMER MANUFACTURER GANZ DOUBLES REVENUE

The company's managing director, Gergely Gál, said in the statement that over the past two years, they have been working purposefully to stabilize the company's financial background and production processes. They were already satisfied with the year 2021, but last year, they achieved a breakthrough as they managed to turn all their results into positive ones, he added.

The managing director also pointed out that the global demand for transformers is twice the production capacity, and Ganz wants to be one of the main players in this booming market, so they are aiming for another 50% increase in sales this year. To do this, he says they need to continue to innovate and minimize their exposure to certain foreign subcontractors for certain components of their products.

The company said that by the end of the year, 50% of its sales revenues came from foreign markets, including an increase in sales outside the European Union compared to 2021. The majority of domestic sales were related to solar power projects.

Compared to 2021, the sales revenue of Ganz Transformers and Electric Rotating Machines Ltd. almost doubled to a total of EUR 43.89 million – roughly HUF 17.5 billion – in 2022, the heavy machinery manufacturer said in a statement. They pointed out that the company's operating profit increased to a total of EUR 1.96 million in 2022 after a minus result in 2021, while its profit after tax was EUR 2.29 million.

Last year, 50 new employees were hired at the company's plant in Tápiószele and its Budapest office, and the company plans to add more than 100 new employees by the end of this year, they stated.

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photo by VAJDAPAPIR.HU, DEPOSITPHOTOS.COM, GANZELECTRIC.COM, SZILÁRD KOSZTICSÁK/MTI

UBM Group, Hungary’s leading feed producer, has announced the acquisition of 50% of the pig farming firm ‘Mangal Ilona Sertéshizlalda’ Ltd. The transaction is expected to close in July 2023, the purchase price will be paid by UBM from its own resources, without any loans, the amount was not disclosed. The founder of the pig farming firm, András Moldován, will remain co-managing director for five years, retaining a 50% stake. After the next 2-3 years of improvements, the value of the company, which currently produces 150,000 pigs a year, could increase several times over, UBM Group said.

UBM is entering an industry that will be profitable in the long term, as global consumption is expected to grow by around 10%

­company briefs SLAUGHTERHOUSE MODERNIZATION WITH EU SUPPORT The pork processing company Topesa Ltd. has more than doubled its capacity by modernizing its slaughterhouse with a HUF 445 million investment, the managing director of the company, László Somogyi said. The Hungarian-owned company, which produces half-skinned pigs, used HUF 269 million of EU and domestic subsidies to purchase a slaughterhouse and a pig cutting line and also built a new slaughterhouse from its own resources. The investment will enable Topesa, based in Csurgó, SW

Hungary, to slaughter up to 1,000 pigs a day instead of the previous daily figure of 400-450, with a planned further development costing around HUF half a billion to increase its range of cut meat products, he said. He added that the latter would increase the number of employees from 72 to 100-120.

The managing director also referred to an element of the slaughterhouse's production line, the second flame tunnel: the heattreatment equipment de-germinates the pork, as a result of which it remains fresh for

12 days without being preserved or frozen. He noted that the company produces 97-98% of its products for the Hungarian market, with more than half of its products bought by the retail chain Spar Hungary and that the upgrade would allow it to export to Croatia.

Among the future developments of the company, he mentioned the purchase of a line of machinery essential for the production of cut products, as well as the construction of a wastewater treatment and biological purification plant.

PREFABRICATED HOUSING PLANT TO BE BUILT WITH EU FUNDING

The development will result in the construction of a modern production hall with a production line for the production of modular prefabricated house elements.

The modular prefabricated housing technology is being developed by the company on the basis of a unique patent. The essence of the technology is that the modules are practically assembled (painted, mechanized) under factory conditions, delivered to a given site and assembled with the help of a truck crane. Thus, the assembly of a house to the delivery of the keys takes up to 10 days, depending on the size.

Under the current conditions, they can produce 5-6 houses per year, which will increase to 100 houses per year once the factory is up and running, accounting for 4-5% of the domestic market for prefabricated houses.

The project is expected to be completed by the end of September 2024, but trial production is planned to start in May 2024.

WELLIS: SIGNIFICANT INCREASE IN 2022 TURNOVER Hungarian-owned Wellis Hungary Plc., a manufacturer of hydromassage tubs, outdoor pools and sanitary ware, reported a 32% increase in sales last year to more than HUF 50.8 billion compared to HUF 38.4 billion in 2021, while its profit after tax decreased to about HUF 1 billion from HUF 3.8 billion in the previous year, the company said on the Budapest Stock Exchange (BSE) website.

According to the annual report published this April, export sales increased from HUF 30.9 billion to HUF 41.5 billion, with a significant contribution from the company's further expansion of sales to the United States in 2022, the establishment of a new subsidiary in Germany and the opening of a warehouse in Romania.

The largest revenue came from the sale of pools, with 6% more pools sold last year than in 2021.

The operating result decreased by 69.2% to HUF 1.27 billion compared to 2021, down from HUF 4.1 billion the previous year.

The company continued to invest in its Ózd site (NE Hungary), which resulted in a 36.9% increase in depreciation and amortization compared to 2021. Production at the Ózd plant started in June 2021, and a 24,000-sqm warehouse was inaugurated in 2022.

Last year, the company laid off 300 workers from its plant in Dabas (southeast of Budapest) due to the adverse change in the economic environment.

To expand the market, a joint venture has been set up in the UK and a new exclusive showroom is planned to open in Switzerland.

The engineering office BUILD IT Mérnökiroda Ltd. will build a prefabricated housing production line and plant (ModulWood) in Sóskút, SW of Budapest, with EU funding of HUF 1.556 billion. The company won the conditionally non-refundable grant from the Economic Development and Innovation Operational Program (Ginop) Plus. The total cost of the investment is HUF 3.112 billion.

According to a press release, the aim is to replace the current manufactory-style house production with a professional production plant equipped with automated production lines.

This will reduce the time needed to produce the elements of a prefabricated house from the Diplomacy-n-Trade.ai 2017.weeks.

02. 27. 11:22:30 current several months to a1few

photo by DEPOSITPHOTOS.COM, WELLIS FACEBOOK, SZILÁRD KOSZTICSÁK/MTI

CHINA CONSTRUCTION BANK OPENS A BRANCH IN HUNGARY China Construction Bank (CCB), the world's second largest credit institution by assets, has opened a branch in Hungary.

Minister of Economic Development Márton Nagy said he hoped CCB's presence would open up space for further development.

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He believes that China will be a major player in the global economy for a long time to come.

China accounts for more than 4% of Hungary's total foreign trade, is the country's 9th most important trading partner and the largest outsideC Europe. Last year, China was the 10th largest M foreign investor in Hungary.

Y CCB President Tien Kuo-li also stressed that they expect the financial institution to CM contribute to the further expansion of SinoMY Hungarian economic, financial and trade relations. It is planned that CCB will establish CY a fintech lab to develop financial technology CMY innovations.

According to Mihály Patai, vice-president of K the Hungarian National Bank, the opening of a new branch in China is a result of the increasingly close interconnection between the Hungarian and Chinese financial systems.

Bank of China already established itself in Hungary in 2014.

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diplomacy

PARLIAMENTARY DIPLOMACY

MALTA AND HUNGARY HAVE SEVERAL ISSUES OF COMMON INTEREST IN THE EUROPEAN UNION

number of students who come to Malta to study English in language schools is on the rise again.

So, all in all, the results are very encouraging.”

Tackling migration Given its geographical location, Malta is very much exposed to the flow of migrants from North Africa.

When these people cross the Mediterranean Sea, the nearest place for them to reach Europe is Malta or the Italian island of Lampedusa. Dr. Farrugia reiterated that this issue is not just Malta’s problem, it is a European problem. “It's really something that nobody can understand after all these years: why don't we have a common collective policy on migration, why Europe had not managed to embark on a strong strategic immigration policy?

That is, we have to define exactly who has the right to be allowed to be treated like a regular migrant and who has not. It's a humanitarian issue and we have a lot of conventions to abide by: the Geneva Convention, the Dublin convention and the European Convention on Human Rights.” He added that, on top of all this, it should also be discussed whether the issue of human traffickers is being properly addressed by the European Union. “If human traffickers have a free hand, they can do whatever they like – this is something that Europeans have to revisit. It's an issue of values and a strategic maneuver is necessary how to tackle this migration.

Again, it's not a question of Malta, it's a question for the European Union to understand each other, go back to basics and address the problem.” As for the most immediate measure to be taken, he suggested that it should be made sure on an EU level that NGOs involved in this matter are really honest, and they have the proper credentials to help those in need. A resolute policy passed and implemented by the EU could address problems like traffickers transporting people from inside Africa by plane to the north of the continent, that is, to Libya and neighboring countries and then organize their movement across the Mediterranean to Europe.

Heading a delegation, the Speaker of the House of Representatives of Malta, Dr. Angelo Farrugia paid a visit to Budapest this April. Diplomacy&Trade caught up with him to discuss bilateral and European issues like economic relations, parliamentary diplomacy or the tackling of migration.

The delegation of the Maltese House of Representatives arrived in Hungary at a parliamentary initiative that goes back before the new coronavirus epidemic. “We had a lot of issues to discuss at this delayed visit. It was of paramount importance that we talked about bilateral relations between the two parliaments. We discussed issues with the speaker of Hungarian parliament as well as with former and current ministers with special regard to our approach to the Russian-Ukrainian conflict and to our role as parliamentarians in order to ensure that we move to the right direction and do the right thing to work for peace,” the Speaker explained.

A busy decade Dr. Angelo Farrugia was elected as Speaker of the House of Representatives of Malta ten years ago. He pointed out that this decade was

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very important for the Maltese parliament.

“One of my highlights was that we managed to go from a parliament mainly dependent on the government of the day to a parliament, which became fully autonomous. Of course, we also had other changes, which regards, for example, to parliamentary committees where we started with four and now, we have 17 of them, so we now cover practically all areas that particular committees discuss and then are carried forward to the plenary session.”

In 2016, Dr. Farrugia was elected as president of the Commonwealth countries that have a population of one million or less and served in that position until 2019. In fact, it was him who wrote the first constitution of this group of just over 50 states. He also commissioned the Institute for Climate Change & Sustainable Development at the University of Malta to fight climate change in

which Maltese parliament had a paramount role by organizing the first climate change conference with the United Nations Environment Program (UNEP) for small countries.

Encouraging figures Last year, the Maltese Minister for Tourism, Clayton Bartolo was in Budapest and told Diplomacy&Trade that "Malta is open for business" in various senses of the word after the pandemic. In reaction to that, the parliamentary speaker first mentioned, with regard to economic relations between Malta and Hungary, the growing number of Maltese investments here like the Corinthia Hotel Budapest, private healthcare institutions like the St. James Hospital or companies like the OZO Group. “We have students who come here to study veterinary and other subjects and we have a lot of Hungarian nationals working in Malta. It has been very positive that we now have over six direct flights a week from Budapest to Valetta and return. The tourism figures are also very encouraging. The annual number of Hungarian tourists who used to come to Malta before the new coronavirus epidemic was about 6,000+. Now, we already surpassed that number last year and between January and March this year, we already reached 6,000. Also, the 2 0 2 3 / III

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Malta is a small country, in fact, the smallest member of the European Union, but it does not mean that its contribution to the EU community of countries is negligible. “The fact that we are small doesn't mean that we do shouldn't have a voice.

Actually, one thing that I spoke about with the speaker of Hungarian Parliament is that we should contribute more in the Conference of Parliamentary Committees for Union Affairs (COSAC), where all the national parliaments can meet and then whatever they decide could go straight to the European Commission. It's interesting that we see now the follow-up of the European Conference on the Future of Europe, where there are a lot of recommendations, but some of these, I believe, are negative recommendations like the one that we should go from unanimity to qualified majority in decision-making. That would mean that the voice of such countries as Malta – and also Hungary that is not a small country but it's not a big country like France, either – becomes negligible because it can be overruled by a qualified majority. So, yes, we have to keep on struggling and make sure that we have a workable system: we have to revisit our values, we have to revisit our way of doing things, and also, we have to have a common foreign and security policy that the European Union doesn't have now. The latter means that we are weakening ourselves if we don't have a common foreign executive policy,” the Speaker of the Maltese House of Representatives concluded.

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photo by DÁVID HARANGOZÓ

Common foreign and security policy needed

TAKENAKA EUROPE GmbH HUNGARY BRANCH OFFICE Architecture / Engineering / Construction www.takenaka.eu info@takenaka.hu

ASPIRING TO FINE FORM

for a future generation

analysis

THE BEGINNING OF A BEAUTIFUL FRIENDSHIP?

BY TAMÁS MAGYARICS

The short answer to the question in the title is: hardly. However, the rapprochement of sorts between the two countries vying for regional dominance – so far, at the expense of the other one – deserves a bit longer explanation of the potential consequences of the announcement that Tehran and Riyadh will establish formal diplomatic relations. The deal was made in Beijing, and this fact may lend another twist to the whole story. Absent was, rather spectacularly, the United States, though it seems quite unlikely that the Saudis have committed themselves to arrangements which are wholly antithetical to US interests in the region. Or have they? Saudi Arabia has poked Washington in the eye three times recently: despite President Biden’s going to Canossa to persuade the Saudis to increase their oil drilling to alleviate the economic burden on the American allies, among others, Crown Prince Mohammed bin Salman was not willing to yield in this question. Second, the Saudis are unwilling to join the sanctions regimes against Russia, and thus, they punch a big hole in the whole sanctions policy led by the U.S. And thirdly, they demanded that the U.S. pay a rather high price for an Abraham-style deal between Saudi Arabia and Israel. It should incorporate, among others, security guarantees, fewer restrictions on US arms sales, and – here comes possibly Iran into the picture – US assistance in developing civilian nuclear capabilities. Washington has resisted granting these requests so far; it is especially the last point that may have dangerous consequences

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as far as nuclear proliferation in the Middle East is concerned. Some observers believe that the toughness towards Washington, and the venue of the Iranian-Saudi agreement signify Riyadh’s expectation that the 21st century will be China’s.

Emergence of an anti-West coalition?

Iran is also supporting Russia in the most significant conflict in the contemporary world.

Again, the symbolism of a potential Chinese brokerage of the deal between the two Mideast regional powers points beyond the actual deal. Xi Jinping has lately had a lovefest with Vladimir Putin; so, a closer Chinese-IranianRussian cooperation in challenging the U.S. positions, and indeed, hegemony in the world is in the cards. Coopting other countries, for instance, the long-term American ally Saudi Arabia would be a major achievement in creating an alternative world order. It is true that the Shanghai Cooperation Organization (SCO) is not a NATO in its capabilities and coherence, but Saudi Arabia’s becoming a ’dialogue partner’ and Iran acquiring an ’observer status’ in the SCO reinforces the idea of the emergence of an anti-West coalition of sorts in the medium or long term. We should not forget either that such medium to large powers as Brazil or India are not buying the West’s narrative about the Russo-Ukrainian war either. The Biden administration’s pseudoCold War Manichean world view and rhetoric about the ’good guys’ (liberal democracies) and ’bad guys’ (everyone else) does not really advance the cause of U.S. leadership either.

Competing regional agendas

Attempt to lessen U.S. influence

However, we are not there – yet. The details of the Iranian-Saudi agreement are rather vague, and it remains to be seen to what extent they can put behind the competing regional agendas of the two countries. Their interests clashed in Syria and Iraq – to mention only the two largest Arab countries in the region. Iran has traditionally supported the Shia forces here, and elsewhere, for instance, in Yemen, in opposition to Saudi Arabia, which has been championing the cause of the Sunnis in the region. In fact, the Saudis have been accusing the Iranians for giving support to the militant forces in the regions (e.g., the Hezbollah), and even supporting the Shiite minority inside Saudi Arabia. Their opposition in religious matters and, consequently, in picking clients in the Arab counties has culminated in the civil war in Yemen, where both countries have been engaged in a proxy war for years. As for proxies, quite a number of Arab Gulf countries feared from Iranian meddling in their domestic affairs, and subversive activities fomented and assisted by Tehran, predominantly through the Islamic Revolutionary Guards Corps. The Guards’ activities may be harnessed by the Grand Ayatollah Ali Khamenei, but it not quite clear for outsiders to what extent the religious leaders control the military in Iran.

Anyway, the agreement is likely to lessen the tension between the two countries, and the agreement on mutual non-interference may be one of the most important building blocks in their relations, but it would be also fair to say that the deal does not mean a quick solution to the disputed issues between Tehran and Riyadh.

There is practically no outstanding question in the Middle East that does not affect Israel directly or indirectly. The Iranian-Saudi agreement, in general, is not a welcome piece of news in Jerusalem. The Iranian nuclear program is seen as a potentially existential threat to the Jewish state. Of course, it was the U.S., and the P5+1 framework that had tried to check the nuclear ambitions of Tehran, but Israel has also solicited the assistance of other countries in the region that has been worried about a Persian nuclear bomb.

Israel’s attempts to build and to sustain such a coalition may have received a minor blow with the Iranian-Saudi agreement and, moreover, the prospect of the conclusion of an Abrahamstyle agreement with Saudi Arabia also seems to be delayed. If the agreement is only a first step, then it may as well intend to isolate – and even to exclude – the U.S. from the Middle East as much as possible. This scenario is rightly challenged now by officials in Washington, but given the withdrawal from Afghanistan and Iraq, Washington has been definitely cutting its losses in the region and, incidentally, opening opportunities to countries like China, Russia, Iran, and now Saudi Arabia – which cannot really be called fast friends. The Iranian-Saudi agreement may be termed as ’the beginning of a beautiful friendship,’ but from the American point of view, it may be ’the beginning of an ugly unfriendship’ towards Washington.

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CHINA-BROKERED DIPLOMATIC AGREEMENT BETWEEN IRAN AND SAUDI ARABIA

diversity

IF YOU WANT TO GO FAR, GO TOGETHER LEADERS OF CITI HUNGARY AND HEINEKEN HUNGARY SPEAK ABOUT THEIR AMBITIONS AS HBLF AMBASSADORS

The Hungarian Business Leaders Forum (HBLF) launched a campaign to promote the role of women in corporate leadership. Entitled ’CEOs for Balance’, the initiative is aimed at raising awareness and promoting diversity in the Hungarian corporate world. As part of the program, HBLF paired up 12 executives living and working in Hungary to work together for a year as ambassadors and share best practices and processes that they bring from their respective industries. Diplomacy&Trade sat down with Veronika Spanarova, Managing Director and Country Head for Hungary at Citi and Nikos Zois, Chief Executive Officer at HEINEKEN Hungary to talk about their role as HBLF ambassadors as well as their ambitions and plans for their partnership.

What were your primary motivations for accepting to be Ambassadors in the HBLF ’CEOs for Balance’ campaign?

photo by DÁVID HARANGOZÓ

NZ: It was an easy decision because the topic is very important and we can send a message that more needs to be done. In terms of diversity, HEINEKEN Hungary is in a good shape and we are now focusing on inclusion because diversity without inclusion does not work. An even more important aspect is equity, in other words the practice of treating different people in a different way.

This needs to be accepted and well embedded in the organization. Together with Veronika, we plan to share practices, challenges, struggles related to this topic and to support each other.

VS: I was very happy to be invited to the program and accepted the invitation immediately because diversity and empowerment lie at the core of our corporate culture at Citi. I can see that we can further amplify the message through programs like the HBLF campaign. If several companies can give voice to our shared beliefs and values, the message will be magnified.

I have worked at Citi for 28 years in different countries, of which the last three I have spent w w w . d t e u r o p e . c o m

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topic, so if we put it more under the spotlight, I am convinced it will blossom.

Within the framework of raising awareness, what measures should be taken on a corporate level to forward this issue?

VS: Creating the right culture is paramount.

At Citi, we have set goals with respect to the representation of women in senior functions and we are making sure it is supported by the necessary encouragement. When we have an opening at a senior level, we are making sure that we have a very diverse pool of candidates. We have established practices and a culture of supporting and promoting our employees of different genders, cultural and geographical backgrounds, to further promote diversity at the workplace and in the company.

in Hungary, and I would like to offer my personal experience and story as hopefully a meaningful addition to this campaign.

I am looking forward to working on this with Nikos because I know that our genuine belief in diversity and equity will resonate well with our audiences.

You come from very different industries and from different countries. How will your cooperation benefit from this?

VS: Our different backgrounds provide us with a lot to build on. Seeing things from different perspectives is a clear benefit when it comes to diversity and will help us find the best solutions for any issues or topics.

Our differences as two people from different countries and the leaders of two different companies aligned on the same values will make the message we will bring, the experience and the knowledge sharing even more valuable.

NZ: I think we are the very definition of diversity here. Innovation is crucial in every line of business; in order to be innovative you need to encourage creative thinking, and diversity is the mother of creativity. In our partnership, we can expect a lot of creativity and a lot of different perspective. The fact that we have different networks will allow us to reach a much broader audience and we can inspire more people to move in this direction.

What will be the cornerstone of your joint work over this year? What will you focus on and how will it materialize in real life?

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VS: We already started our joint work. We invited Nikos to participate in a Citi client and partner event as part of the Women’s History Month where we held an engaging discussion with CEOs and business representatives from companies across the entire market. Citi has over 3,000 employees in Hungary from more than 50 countries and nationalities and Nikos will be invited to one of our upcoming Town Halls where we can talk about the role and importance of women in leadership. We also have further events planned where we present the topic.

NZ: On top of corporate events, we also plan to bring our HR communities together to move even faster. Even though at HEINEKEN we are in good shape in terms of diversity, we need to go further.

I truly believe in the African proverb that says: ‘If you want to go fast, go alone, if you want to go far, go together.’ Now is the moment to go far.

How do you think that Hungary’s culture in terms of gender roles is aligned with the goals of the HBLF campaign and with meeting the EU target of 33% of directors being women at listed companies by 2026?

VS: I can see and experience that the overall environment in Hungary is supportive. The more we talk about this topic, the more encouragement and positive examples we bring, the greater the progress will be.

NZ: I am an optimist by nature, so I have great hopes about the advancement of women in corporate leadership in Hungary.

There is a lot of discussion around the

NZ: We are convinced that diversity and business success go hand in hand. At the same time, we should not promote women just for the sake of reaching a numerical target. Instead, we use two factors to assess people: performance and behavior. So, in addition to having a diverse pool of candidates, we make sure that the assessment process is also diverse. At HEINEKEN Hungary, the ratio of women in our management team is 67%. If you wear the right glasses, you will definitely find enough female candidates for all positions.

Do you think Hungary will meet this target by the designated deadline?

VS: In one short word, yes. Citi was among the first financial services firms to achieve gender parity on its Board. Our CEO Ms. Jane Fraser is the first woman to lead a major Wall Street Bank.

Citi in Europe is led by Ms. Kristine Braden who is also a very visible role model for all of us.

Our global Citi network has already exceeded our 40% goal for female talent in mid- and senior-level roles. In Hungary, this figure is almost 38%, but in the most senior roles, more than 40% of our colleagues are women.

Also, it is an important part of our business to align with the values and interests of our clients and we find them very receptive for this message, which fill me with great confidence regarding Hungary reaching the designated target.

NZ: Definitely. Let me tell you a few HEINEKEN numbers on a global level. In 2011, 11% of the senior leaders were women. By 2017, it was 19% and in 2022, it rose to 27%. Our target for 2030 is 40%. As the numbers show, if you are committed to an issue and you put effort behind it, progress will not be linear. We can proudly share that we have been included in the 2023 Bloomberg Gender Equality Index for our commitment and progress toward a fair, inclusive and equitable workplace and world.

(We thank the Four Seasons Hotel Gresham Palace Budapest for providing the venue.)

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business

HUNGARY LESS ATTRACTIVE TO FOREIGN INVESTORS GERMAN CHAMBER CONSIDERS DECLINE AS A TEMPORARY DEVELOPMENT

In 2022, 88% of the survey participants would choose Hungary again as a place to invest, but this year, the figure has fallen to 79%, according to the Spring 2023 Economic Survey conducted by the German-Hungarian Chamber of Industry and Commerce (DUIHK) that celebrates its 30th anniversary this year. The president of the organization, András Sávos, stressed that the assessment of German companies on the investment environment and the change in their investment outlook is important feedback for the Hungarian economy.

Improvement trend broken Dirk Wölfer noted that this year's survey took place – unfortunately again – at a very difficult time for businesses and society. The 2020 survey was completed just days before the outbreak of the pandemic, which lasted more than two years and that was followed by the Russian aggression against Ukraine.

“Even in this difficult environment, we have seen a gradual improvement in the investment climate across a range of location factors in the years leading up to 2022. In this year's survey, however, this trend has been broken. There are both external as well as home-grown reasons,” he added.

With regard to the economic and business situation and outlook, the picture is mixed. Compared with fall 2022, however, assessments have improved noticeably.

The companies’ own business prospects are assessed more cautiously than at any time

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in the last ten years. Investment plans and employment intentions are nevertheless positive, and even slightly better than a year ago.

Despite a slight easing, energy prices are most frequently cited as a risk to a company's own business, followed by the shortage of skilled workers and the exchange rate. These risks are similarly prevalent in other countries in the region. Legal uncertainty is cited as a risk by almost 30% of companies in Hungary this year.

The share of companies that would choose Hungary as an investment location again today – both in terms of labor market conditions and the economic policy framework – has declined noticeably from the record level of 88% in 2021-2022 to 79%. In addition to global shifts in economic processes, domestic developments are also likely to have contributed to this. The average in the 16 countries surveyed was 85%.

Reliability and credibility are of key importance Discussing these issues with Diplomacy&Trade after the presentation of the report, DUIHK President András Sávos expressed satisfaction with the fact that so many companies took part in this survey, which is a real sign that the companies are very interested in the progress of the Hungarian economy.

“The economic outlook in Hungary and also at the companies right now are worse than in the previous years. The pessimism is very clear, we can feel that from the figures. We will see what happens in the next couple of months and years, but this year, unfortunately, this was a clear message,” he said.

“We can also see that, similarly to the previous years, the labor market is very tight, which means that we do not really have enough workforce that should be theoretically available for the next year's plans of the companies. We really need skilled workforce – blue collars as well as white collars – as we have big problems with that right now,” he added.

Regarding a third point of interest, the various extraordinary taxes levied by the government on different kind of companies and different sectors, the DUIHK President stressed that these were actually very much unexpected, and thus, the firms could not calculate with them. “The reliability and predictability of

economic policy are of key importance for the companies, and that should be taken into account on the government side.”

The same survey was done in 15 other countries in the region and that offers the opportunity to compare the situation in Hungary. According to András Sávos, there are no big differences in the region. “There are some points where we are better and some points that we are worse than the others. It is very clear that the Czech Republic has become the clear frontrunner in this region, being the most positive example among the 15 countries polled. Their leading position is very clear, and I just hope that Hungary will follow in the footsteps of the Czechs.”

When presenting the report, the issue of legal certainty was raised several times. The lack of it in Hungary seems to be one of the reasons why EU funding is withheld from the country while the European Union is not satisfied the Hungarian government’s compliance with EU principles. As to how much that affects or concerns German companies in Hungary, the DUIHK President

is of the view that this is a political discussion between the Hungarian government and the EU, “but at the end of the day, we should cooperate – I'm totally convinced about that. On the other hand, yes, if Hungary doesn't get the EU funds, there will be more obstacles in the short term.

Of course, this will have a negative impact on the Hungarian economy, which we should avoid. I would not say that there is a special impact on the German companies in Hungary.

German actors in this country just have the same conditions as any other companies.”

It was also mentioned at the presentation that the results of this survey are shared, among others, with the Hungarian government.

András Sávos emphasized that the GermanHungarian Chamber of Industry and Commerce has regular contacts with the government, including ministers and other decisionmakers. “They know our opinion about almost everything, so, probably what came out of this survey right now will not be a big surprise for them,” he concluded.

D U IH K P R E SID E N T A N D R Á S SÁVO S

photo by DUIHK

Presenting the results of the survey, Head of the Communication Department of DUIHK, Dirk Wölfer said that companies currently assess their own prospects as more negative than at any time in the last ten years. At the same time, however, there are signs of growth in investment plans and employment, and despite the very weak economic prospects in the short term, DUIHK members want to continue investing and increasing their staff. The willingness to invest indicates that companies regard the current economic downturn as temporary.

The survey with 249 participants dealt not only with economic questions but also with the evaluation of the location quality in Hungary. Compared to the previous year, there was a slight deterioration in this area.

The greatest risks for business are currently energy prices, the shortage of skilled workers and exchange rate developments.

The aim of the surveys was and still is to draw a profound picture of the economic situation and an assessment of the investment climate based on feedback coming directly from the economic actors. In this way, the Chamber aims to support companies in their investment decisions and policymakers in designing an optimal economic policy framework.

H E A D O F T H E C O MMU N IC AT IO N D E PA R T ME N T O F D U IH K , D IR K WÖ L F E R (O N T H E L E F T ) W IT H D U IH K P R E SID E N T A N D R Á S SÁVO S

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culture

HUNGARY’S WORLDWIDE PIANO SENSATION

A VIRTUOSO WHO BREAKS DOWN THE BARRIERS BETWEEN CLASSICAL AND POP MUSIC It is for the first time this May that 31-year-old Hungarian pianist Peter Bence performs in a major concert in Budapest. A real virtuoso, he sometimes plays his piano as drums or guitar. "With his unique technique, he has taken piano playing to a new level, making a great impact on new generations of musicians and music-loving audiences," according to music critics.

Peter Bence is a worldwide piano sensation, composer, and music producer who has taken the Internet by storm with his unique piano arrangements, collecting over 1.2 billion video hits and a fanbase of millions over the course of a mere five years, attracting comments like people wondering how “someone can show such artistry, flair and sheer invention on the piano,” calling him ‘genius’ and ‘virtuoso’. He was also awarded a Guinness World Record for being the ‘Fastest Piano Player’ and has been often referred to as a musician who not only revolutionizes the way piano is played, but continues to influence new generations of pianists and musicians to come.

A prodigy from early age He recalls to Diplomacy&Trade that his musical journey began at a very young age, when he stumbled upon a piano at his grandparents' home. “As if by instinct, I began playing back melodies from my favorite cartoons, catching the attention of my family soon enough. From that moment on, I knew that music would always be an integral part of my life.” He adds that in his early childhood, he was more into the intricacies of classical piano, “but as I matured, I found myself drawn to the creative possibilities that lay beyond the strict confines of classical music, so, interestingly, I went from the nerdy classical piano student to more of a composer for a wide variety of genres today.”

With such serious interest and talent, it was now wonder that he received musical education from an early age. He was just four years old when he started in the local music school of his hometown, Hajdúböszörmény in NE Hungary.

With respect to his later career, that gave him, as he puts it, a solid classical foundation, the technicality of piano performance, but also the harmonic and melodic language that forms the backbone of modern and popular music. “While I love to explore new sounds and push boundaries, my classical training is always present, providing a strong foundation upon which to build my musical creations.”

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photo by NAGLIS BIERANCAS

His admittance to Berklee happened to be in the year following the death of Michael Jackson in whom Peter Bence found the biggest influence.

He says that “at that time, I would often find myself in a deep rabbit hole of watching countless performances and clips of Michael, and there was something unexplainably genius, a talent that shined so bright, it gave me so much inspiration for my performance and also for making an arrangement effective and focusing more on the rhythmic aspects of a song, which ultimately is the skeleton of music.”

A sensation on YouTube and in concert halls Peter Bence began uploading videos to YouTube while at Berklee and in 2015, he quickly rose to fame with his arrangement of Michael Jackson’s ‘Bad’, collecting a whopping ten million hits over just a few days, becoming a massive viral sensation.

Now, he has over 1,200+ million accumulative video views on YouTube and Facebook combined.

His performances attract comments like “Pure genius. You can tell he puts all of his energy into what he truly loves and the result is nothing short of spectacular” or “Your passion and love of your craft shines through at all times. So rare in our musical industry these days.”

In the past four years, he has performed sold out shows in over 40 countries, including the Sydney Opera House, the Lotte Concert Hall in Seoul, the Stadthalle in Vienna or Victoria Hall in Geneva. He opened BBC’s ‘Proms In The Park 2017’, in Hyde Park, London for 50,000 people. In 2020, his album ‘The Awesome Piano’ – debuted on the Steinway & Sons label – immediately charted #1 on iTunes in multiple countries and #11 on Billboard (worldwide).

A world record for fun Great hand speed in case of piano virtuosos is not uncommon but very few of them are inscribed in the Guinness Book of Records. In January 2012, the Hungarian virtuoso attained the Guinness World Record for the “most piano key hits in one minute” with 765 key hits. He notes that he would often get picked on for his tendency to play a piece faster than they were meant to be played, “and since speed was always natural for me, my peers and teachers suggested I should break this Guinness record. I only did it for fun. It’s not something I’m particularly happy about.”

Playing the essence of everything

From Hungary to Massachusetts At the age of seven, he wrote his first composition, which was heavily influenced by the music of Mozart and Chopin, and at 11, he published his first solo piano album of his early compositions. In his teens, he started to show great interest in movie soundtracks, especially the music of John Williams, which has opened up a new world for him and made him further explore himself musically.

After his training in classical piano and composition in Hungary, he continued his

Inspired by Michael Jackson

studies at the world’s largest independent college of contemporary music, the Berklee College of Music in Boston, Massachusetts in the United States, as a film scoring and piano major, where he would absorb a wide spectrum of musical genres, many of which contribute to his style today.

As it turned out, it was easier to get into Berklee than completing the course there – and it was not his talent that was lacking… “I knew that if there

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was one place I could further my passion for film and contemporary music that would be at Berklee. To make this dream a reality, I knew I had to do everything in my power to get admitted with a scholarship as my family would not have been able to finance it otherwise.

I carefully selected some of my original compositions and a Bartók piece for the audition, and a year later, I found myself studying from the best at Berklee,” he recalls.

Peter Bence is often described as someone who breaks down the barriers between classical and pop music. He takes the piano to a whole new level, turning the instrument into a full orchestra, which inspires both younger and older generations of musicians and music lovers from everywhere around the world. As to what the Budapest audience can expect from him, the pianist promises that he “will be playing the essence of everything my audience might be already familiar with, the popular arrangements, the looping, with the unorthodox piano usage here and there to some of my originals and pieces that are not published yet. And who knows, there might even be a premiere of a brand-new piece that I'm excited to share with the audience…”

Michael Jackson - Bad (Piano Cover)

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witty leaks WITTY

IN THIS SERIES, DIPLOMATS SHARE PERSONAL ACCOUNTS OF THEIR EXPERIENCES ON “EXCURSIONS” into Hungarian culture, art, gastronomy & scenery.

LE A K S BRAVO, BRAVO!

National Symphonic Orchestra, she recorded last year her first two singles of Argentinian Music for the label Waves Affaire Music Austria and the same year she won the prize ‘Soloist Performer Revelation 2022’ awarded by Radio Clásica (Spain).

ARGENTINE AMBASSADOR TELLS OF AN EXTRAORDINARY PAPAL AUDIENCE

Meeting compatriots

BY HERNÁN PATIÑO MAYER, AMBASSADOR OF ARGENTINA

Prior to the recent visit to the Hungarian capital by Pope Francis, there were numerous requests to the Apostolic Nunciature in Budapest for an audience by the Pope. One of these came from the Argentine Embassy in Hungary. Their request was accepted and the Embassy issued a statement about the audience the circumstances of which are hereby explained by Ambassador Patiño Mayer. meeting in the papal agenda.

The second was the presence in Vienna of a young Argentinian violinist of only 15 years of age who already exhibits exceptional playing skills. She is Pilar Policano, born in Buenos Aires, and who is currently studying in Vienna with the outstanding maestro Boris Kuschnir and is about to travel to New York on a scholarship for a Summer Course with maestro Itzhak Perlman.

Winner of several international awards and after performing as a soloist at the Teatro Colón in Buenos Aires and the Kirchner Cultural Center, with the Argentine

Predilection for the Hungarian people The very arrival of Pope Francis to Hungary was a momentous event.

The voice of the Supreme Pontiff is undoubtedly the voice of one, who rightfully exercises undisputed leadership in a world scenario that is as uncertain as it is threatening.

His commitment to peace, social justice, and the sublime dignity of the human person is a living testimony of his fidelity to the Gospel mandate of

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Extraordinary audience for an extraordinary musician The rest of what happened can be found in the press release issued by the Argentine Embassy: The audience was granted by official response from the Apostolic

love of God and neighbor. His second visit to Hungary after his coming for the closing of the Eucharistic Congress in 2021 was evidence of the Argentinian Pope's predilection for the Hungarian people. A predilection undoubtedly sustained by the experience of a nation that, like ours, has always been open to migrations, especially those caused by wars, hunger, and authoritarian regimes.

An Argentine virtuoso But in this case, unlike his first visit, I intended to be able to greet him personally. And it was thanks to two circumstances that this wish was realized. The first was the generous attitude of the Apostolic Nuncio Michael W. Banach, who made the always complex arrangements to include an unplanned

photo by EMBASSY OF ARGENTINA

My sole interest of contributing this column in Diplomacy&Trade is thanking and highlighting the real protagonists of what was ultimately one of the most important emotions I have experienced in my more than twenty years as Ambassador of my country.

For the Pope to personally appreciate the exceptional quality of this young compatriot, I asked the Apostolic Nuncio to allow her to attend the audience requested by me and to play there a tango written by the Uruguayan musician Gerardo Matos Rodríguez in 1917, which is the anthem of the Río de la Plata: La Cumparsita.

I must once again acknowledge Archbishop Banach for the success of his efforts, which were not only accepted by the Pope but also allowed the whole Policano family to attend the audience and to see with legitimate pride the astonishment and applause of all those present and hear the words of congratulation pronounced by His Holiness.

Nunciature to the Embassy of our country in Hungary, to receive the extraordinary Argentine violinist Pilar Policano accompanied by her mother Laura Minniti, her father Pablo Policano and her younger brother Julián. The family was accompanied by the Argentinian Ambassador and the audience took place at the Nunciature, in the presence of Pope Francis, the Apostolic Nuncio, Archbishop Michael W. Banach and journalists from the Vatican press.

During the audience, the young violinist of only fifteen years old, who is currently studying in Vienna with the world-renowned professor Boris Kuschnir, performed in front of His Holiness a version of the tango of the Uruguayan composer Gerardo Matos Rodríguez ‘La Cumparsita’ in its arrangement for solo violin, made by Vicente Zito, in Mendoza, Argentina.

The Holy Father and his assistants applauded passionately the performance and the Pope told the young violinist "you have a brilliant career ahead of you" while thanking her and her family for their presence.

It was the last and longest individual audience and a few minutes before Pope Francis left for Budapest Airport, as he passed Pilar Policano, he put his arm out of the window, and made a thumbs-up gesture of approval and – with an honest smile – said to her for all to hear: "Bravo, Bravo!"

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society

NOBLE SPORT IN ELEGANT SETTINGS THE HORSE POLO RISERVA CUP IN JUNE PROMISES TO BE A MEMORABLE EVENT

The La Estancia Polo Club in Hungary celebrates its 25th anniversary this year. In June, it will host the biggest horse polo event of the year in Hungary, the Riserva Polo Cup contest. The President of the Club, Uwe Zimmermann tells Diplomacy&Trade about how this venue has evolved in the past quarter of a century and also about the competition that is a sports and social event at the same time.

As the President recalls, “it started in 1997-98 as our family affair when, looking for a place to keep our horses on good standards, we found a piece of land in the nice village of Etyek, some 20 minutes west of Budapest. Polo was already our passion, but at the time, there was no suitable place for it in Hungary. So, we decided to build a place for us, our horses, families and friends.”

Since there was not a single tree or bush on that piece of land at the beginning, it took lots of landscaping and infrastructure construction, including those of polo fields, stables, clubhouse, asado barbecue, a fish pond, a soccer field and, very importantly, planting lots of trees. Soon after, the opening first polo tournaments and social events were organized.

Addiction to polo

photo by LA ESTANCIA POLO CLUB

Horse polo itself is an ancient sport, even its modern version dates back about one and a half centuries. For Uwe Zimmermann, the most attractive feature of it is the combination of playing a sport with animals involved and as a team sport. “The ‘down-to-earth’ feeling while working and playing with your polo horses is very special. Having your family involved, both of our sons are very good polo players, and having the opportunity to travel and discover the world by playing polo, meeting very interesting people, are all very unique and motivating. Building a bridge from traditions and elegance of the past to today’s life, presenting a sport, which is exercised by not too many people around the world, making lifelong lasting friendships, is another important part of our addiction to polo,” he explains.

the international society, politics and business world. More than 20 ambassadors accredited to Hungary will join us, reflecting the international spirit of the sport, event and place.”

As a ‘side effect’, the event is also considered the promotion of the sport as well as that of the village of Etyek and of Budapest/Hungary as a top destination for lifestyle travelers.

Caring for the four-legged participants

“The Riserva Cup requires lots of preparations and work and we start to prepare for the following year the same day we finish the previous one. Beside of all the logistics, you need to have partners and friends to work with. So, it is active and continuous work and honor to look after our sponsors and companies involved in such event. It needs a certain social standing, network and reputation (including trust) to motivate well-known international companies to enter such specific sport event in the country. We are happy and proud to have built and developed such relations during many years of actively playing polo and organizing events on four continents,” the club president points out.

Polo is related to style and elegance and a top organization, so you need to meet those expectations of sponsors and audience alike, he adds.

D I P L O M A C Y

Feedback with compliments Year after year, it is important for the organizers to have feedback from competitors and guests who took part at the previous Riserva Cup. “I think the best feedback or compliment is when players and teams are returning year by year to the event/s and to have many teams applying to enter the competition(s). Our guests call us to make sure they are on the guest list for each event. Our sponsors and partners invite their business partners and clients for a very special treat. All that based on a perfect organization, beautiful setting and a gorgeous day out in the countryside for their entire families in Etyek,” the club president proudly states.

Since the La Estancia Polo Club celebrates its 25th anniversary this year, the organizers wish to make the 2023 Riserva Cup an especially memorable event. “We will celebrate our anniversary in June during the competition and remember all the people who were involved in the last 25 years of work, the fun parties we had, the horses who carried us on the polo field and hope to have many more years (in good health) to play and enjoy the sport of polo and to share our passion with our families and friends,” Uwe Zimmermann concludes.

The middle of June will see another Riserva Polo Cup, which is the biggest polo event of the year not just at the La Estancia Polo Club but in Hungary as well, attracting a lot of players from various countries and many people of high social status in Hungary. The Polo Club has a tradition of organizing such events as they have been doing that for more than two decades now, bringing international high standard polo events to the country.

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The Riserva Polo Cup is not just a sports event but traditionally also a social one. As for the people invited, they are Hungarians but also include lots of foreigners from the expat community and from abroad too. Participation for guests is by invitation only. According to Uwe Zimmermann, “the mix of local and international characters, the blend of people of many different businesses and interests makes the Riserva Polo Cup very special. All this in a very relaxed family like atmosphere and in the beautiful setting of our La Estancia Polo Club.

Finding and creating synergies between sponsors, partners and in the best case, establishing new friendships, are on the agenda of such events. This year, we will have again about 400 invited guests from Hungary and

A memorable event in 2023

Involving partners and friends

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Social event in beautiful setting

Being a horse polo event, special care needs to be given to the horses as well. The President notes that “horses (polo ponies) are the most important part of our sport since they provide about 70% of the performance of a good polo player. Safety, care and devotion of and to our horses are crucial since you will travel with them in a very high speed in competing games.”

He stresses that their horses enjoy a perfect 24/7 full service with nice polo fields, stables, paddocks and pasture at the club. Experienced grooms, who love horses, play the most important part around them. Top veterinarians, horse feed and a well-organized training are a must and the base of a long and happy life of a polo horse and joy for the player.

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wine

CROSS-REGIONAL COOPERATION FINE WINES ASSOCIATION ESTABLISHED IN HUNGARY

In 2020, four wineries representing four wine regions decided to establish the Fine Wines Association (FWA) with the goal of educating wine lovers and wine professionals interested in Central and Eastern Europe wines and in particular Hungarian wines. The same year they produced a multilingual publication, established their presence on social media, and they organize tasting events and promote Hungarian wines at exhibitions abroad.

Etyeki Kúria in Etyek, Tóth Ferenc Winery in Eger, Tokaj-Hétszőlő Bio Birtok in Tokaj and Vida Borbirtok in Szekszárd are important and significant wineries in four different wine regions. Together, they are able to provide a colorful and comprehensive,

easy-to-understand cross-section of quality wine production in Hungary. Each winery represents the typical wine style of its corresponding wine region and taken together they cover a wide range of Hungarian wines in one comprehensive assortment.

A spirit of cooperation "In the world of wine, personal connections have always been important. The wine experience itself is personal. That's why we believe that working with winemakers sharing the same values and quality goals is a refreshing and enjoyable experience," according to Gergely Makai, a winemaker at Tokaj-Hétszőlő.

Consistency, high quality and individual character – these words encapsulate the work of the members of FINE WINES ASSOCIATION in past decades and this is what ‘Fine Wines’ in the name refer to. They believe that by working together and helping one another, sharing expertise and professional connections is the most efficient way to promote their wines and wine regions abroad.

This spirit of cooperation is expressed by the word ‘Association’.

Presenting the wineries

photo by VIKTOR KORSÓS

By acquainting themself with the wines of FWA members, people can find out about typical local varieties, traditional blends, diverse styles and the specific characters of Hungarian wine regions.

They can explore the diverse and extensive range of Hungarian wine regions through wines from vineyards that are grown in an environmentally responsible way, often organically.

The purpose of the Association is to provide customers with sufficient information by promoting the controlled designations of origins (Etyek-Buda OEM, Sopron/Ödenburg OEM, Szekszárd OEM, Tokaj OEM, Eger OEM). They want to present the characteristics and the diversity of Hungarian wine regions, winemaking traditions and wine culture in a concise and easy-to-understand way and provide customers with practical guidance in the intricacies of designations of origins, wine regions and wines.

As an innovative and environmentally conscious solution, members of the Fine Wines Association decided to present their wineries in a digital publication. This is available in four languages, so that in addition to English, the main target markets can read it in Czech, Polish and Romanian. The Association has since participated in wine shows and trade fairs in these countries, as well as promoting Hungarian wines in the local press.

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LOUIS TOMLINSON: FAITH IN THE FUTURE SEPTEMBER 15, BUDAPEST SPORTARENA

Louis Tomlinson rose to fame as a member of the group One Direction, which was one of the best-selling boy bands of all time and to which he contributed more in songwriting than any other band member. He had songwriting credits on several hits, and on a total of 38 songs across the band's discography.

Following the group's hiatus in 2016, Tomlinson released his debut solo single which peaked at number two on the UK Singles Chart and was certified platinum in the UK. He had single releases during the next years, while his debut solo album, Walls was released in January 2020. The album debuted at number 4 in the UK, and Top 10 was on the Billboard album chart.

Tomlinson was set to embark on tour for the majority of 2020, but following the postponements caused by the pandemic, he embarked on the remainder of the tour in February 2022, playing a total of 81 shows for the tour finally. During the lockdown, he held a digital concert ‘Live From London’, which sold over 160,000 tickets, thus, Tomlinson holds a Guinness World Record for most tickets sold for a live-streamed concert by a solo male artist now.

Louis Tomlinson’s first Hungarian show will be in September as part of his ‘Faith in the Future Tour’. livenation.hu

LIGHT REVOLUTION

UNTIL AUGUST 15, LIGHT ART MUSEUM, BUDAPEST

The Light Revolution exhibition at the Light Art Museum Budapest (LAM) features works by Hungarian artists who are pioneers of light art and the use of light as an art form. It aims to present emblematic works created with the most varied means using the non-linear system of light art in a museum space. Its mission is to promote works and artists using light and new technologies.

The Light Art Museum Budapest is a place for artistic experiments with light. The pieces on display were born from the idea of consolidating immaterial, evanescent and intangible light into an enduring experience. Hence, within the museum space, the ephemerality of light, seen as the fundamental source of life, meets the eternity of art.

The place where these works are displayed is also emblematic, since electricity, inseparable from the industrial revolution, became part of everyday life at the very moment when, at the end of the 19th century, the architecture of engineering, which linked production with consumption, was being built for industrial and economic purposes, including the Hold Street Market Hall, which now houses the Light Art Museum.

lam.xyz

INTERNATIONAL STARS RETURNING TO MÜPA

SEPTEMBER-DECEMBER, MÜPA PALACE OF ARTS, BUDAPEST

MÜPA audiences will receive another opportunity to welcome to the concert stage the orchestra of one of the world’s oldest musical institutions, the Accademia di Santa Cecilia, while the legendary vocal sextet, the King’s Singers, with a history of more than fifty years, are bringing their latest album. Accompanied by Joshua Bell, one of the most celebrated violinists of our time, and with the world-class conductor Alan Gilbert at their helm, the NDR Elbphilharmonie will also make their return, as will the Icelandic pianist Víkingur Ólafsson, delighting his Hungarian fans with Bach’s Goldberg Variations.

Elvis Costello appears here again after an absence of almost ten years while Ludovico Einaudi is giving a concert certain to be as unforgettable as the one he put on in 2017. Cory Henry will be arriving with a much larger instrumental lineup than he brought for his last concert. The Danish guitarist Jakob Bro and the American saxophonist Joe Lovano will electrify jazz lovers together with a line-up never before heard in Hungary.

János Feledi has several pieces to present, including a new one he choreographed to the music of this year’s Composer of the Season, György Orbán, whose Requiem will also be performed by the Hungarian Radio Symphony Orchestra on All Saints’ Day. The Hungarian National Dance Ensemble also has two exciting premières in the works: Végvárak (‘Border Castles’), an adaptation of the novel The Testament of the Koppány Castle Agha, and another treating the life of the revolutionary 19th century poet Sándor Petőfi.

photo by LIGHT ART MUSEUM, FRANCES MARSHALL, LIVE NATION, SZIGET

mupa.hu

SZIGET 2023: NEW PERFORMERS ANNOUNCED AUGUST 10-15, ÓBUDA ISLAND, BUDAPEST

The list of headliners for the Big Stage at this year’s Sziget Festival has been extended and a number of other exciting names have been added, organizers say. Art Of Freedom is back, adding color to the Sziget scene, and the organizers have also declared war on several fronts on the dust cloud caused by last year's unusual drought.

The previously announced headliners such as Billie Eilish, David Guetta, Florence + the Machine and Imagine Dragons have been joined by Mumford & Sons, Lorde and Macklemore, as well as more than 30 other international acts on various stages. Art of Freedom will return to Sziget, aiming to add visual impact to the diverse world of the Island of Freedom with striking, thought-provoking and sometimes stunning artworks and installations.

The full list of names newly announced: Lorde, Macklemore, Mumford & Sons, Bonobo, Tale Of Us, girl in red, Yung Lean, Caroline Polachek, Loyle Carner, Arlo Parks, Jeff Mills, AJR, Sleaford Mods, Ben Böhmer live, SG Lewis, Mochakk, Reinier Zonneveld Live, TroyBoi, Giant Rooks, Lazza, I Hate Models, 999999999, Confidence Man, The Aces, Son Mieux, Acid Arab, DJ Tennis, Shlømo, Herrensauna XXL, Anetha, TxC, Bizzey, Josman, Mezzosangue, Call Me Karizma, Lucie Antunes, Coloray, Vinicio Capossela, anna RF, Queralt Lahoz, The Haunted Youth, 47Ter, Leyo, Stain The Canvas, M. Byrd, LASS, Al-Qasar, Awir Leon, Damien. szigetfestival.com

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gastronomy FOCUS ON THE NEW GENERATION OF GASTRONOMES THIS YEAR, THE GOURMET FESTIVAL IS ALL ABOUT YOUTH, INNOVATION, NEW INGREDIENTS AND NEW STYLES

With more than 100 exhibitors, including around 50 restaurants, dozens of confectioneries, street food, international cuisine and a variety of drinks from beers, wines, champagnes to cocktails, the MBH Bank Gourmet Festival is the most important gastronomic event in Hungary.

This year, the festival – held at the Millenáris event venue in Budapest between June 2 and 4 – will not focus on a specific food or ingredient: this time, the focus will be on young people and with them, innovation, new trends, technologies, ingredients or even style. In addition to Gourmet's usual, but still exceptional food and drink offer, there will also be a number of exciting programs, including professional demonstrations and performances that will bring together the culinary arts with literature, music and even painting.

Young professionals As Gourmet's chief organizer, Richárd Nemes points out, "last year, we focused on the theme of 'Heritage', but this year we are focusing on the future, as we can already see a new generation of chefs, pastry chefs, baristas and bartenders who, despite their youth, are representing their profession to a very high standard."

At this year's festival, the new generation will be represented by young professionals such as Anett Béres, who, after university, chose to follow her heart and became a self-taught

pastry chef at the Michelin-starred Borkonyha and Textúra; Richárd Csillag, chef at Lokal47 in Kétthely, who competed in one of the world's most prestigious chef competitions at the age of 21; Mátyás Huszár, who leads the cheekily young team at the Vasüzlet in Balatonfüred, described as the "most exciting new opening" on the northern shore of Lake Balaton; and Edina Makai, who studied philosophy and played drums in a band before becoming assistant chef at the Michelin-starred Salt restaurant.

There will also be János Mizsei, the field-

proven chef of MÁK, who last year won The Michelin Guide's Young Chef of the Year award (a recognition given to the next generation of chefs by the international gastronomic guide), and Pál Tóth, the bold and ambitious chef of Alabárdos in Szeged, who used to have a punk band but now has his own cookbook. The festival audience will also be able to meet Rozina Wossala, restaurateur-writer-presenter, who will give a workshop for gourmet foodies who want to learn on the Gourmet Academy stage.

THE MOST VIBRANT GASTRO EVENT IN HUNGARY 100 EXHIBITORS STAR CHEFS • WORKSHOPS THIS YEAR’S THEME:

NEW GENERATION

photo by GOURMET FESTIVAL

MILLENÁRIS, BUDAPEST 2-4 JUNE, 2023

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gastronomy

CHALLENGE AND EXCITEMENT

YOUNG CHEF APPROACHES CULINARY PROFESSION WITH INTEREST IN PHILOSOPHY AND ART Given the family background in confectionary, it is understandable if someone ends up working in a restaurant but for Edina Makai, it was not so evident.

Curiosity about cooking “It wasn't really a conscious decision to become a chef. I really loved – and still love – the arts, so for a while, I was very much oriented towards a career in the arts, either as a drummer or as an aesthetician. But I realized that I wasn't putting in as much work as I would have liked (although I still find it hard to let go of drumming) so, alongside that interest, a third one crept in: a curiosity about cooking and food. Although, I initially became a chef just to earn money, I soon realized that I really loved it and very rarely felt tired of it. It just makes me happy when someone likes what I cook and for a moment, I exist only in the universe of what they are and what they taste.

But I couldn't really approach this profession without my interest in philosophy and art. So, it all made and still makes sense,” she explains.

This year’s the MBH Bank Gourmet Festival in the Hungarian capital focuses on a new generation of culinary professionals. One of them is Edina Makai, the sous chef of the Michelin-starred Budapest restaurant ‘Salt’. She tells Diplomacy&Trade how she ended up in fine dining – something that seemed quite remote many years ago when she studied philosophy in Cluj, Romania, played in a band as drummer and worked in a bistro at the same time.

In logical and systematic order She is now a chef in a Michelin-starred restaurant.

As to what role that involves and how she evaluates the experience she has gained there, she notes that “you go through a lot of things and an interesting individual development in a restaurant where it is important to keep a logical and systematic order. I have become a much more determined person and have learned a lot about cooking and preservation techniques. We do a lot of fermentation at Salt and we often talk about how we can do more for sustainability with this technology.

Philosophy helps a lot, starting with helping us to understand the problems that affect our society and our food systems, plus the ecosystem. And I feel that a chef's job, in addition to being a restaurateur, is to mitigate these problems.”

Transylvanian background

photo by DÁVID HARANGOZÓ, DÁVID HORPÁCZI

Edina Makai is from the Transylvanian part of Romania, an area with substantial ethnic Hungarian population. She says she is not able to utilize this background in her work now as much as she would like, since she no longer lives there. “However, there are a few ingredients, or recipes, that I was able to show to Szilárd [that is, Salt's chef Szilárd Tóth] and he thought they were exciting, thus, we included them in the menu.

Besides, there are a few ingredients that Szilárd showed me, for example, the churut which is

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a Transylvanian-Armenian fermented cheese with a lot of parsley. I definitely plan to learn more about the gastronomy of my homeland.”

Building on local traditions This year’s Gourmet Festival focuses on a new generation of gastro professionals. Regarding how this generation can contribute to the development of Hungarian gastronomy, the young chef believes that Hungarian gastronomy needs to be shaped on many levels, because there was a long period – that is during the communist regime – when it was largely stagnant and there was almost no development. “Since a public taste for certain dishes was formed during this period, many professionals feel that these are the only dishes that should be served to the guest, because this is part of Hungarian culture. However, we forget about a lot of recipes and techniques that are rooted in our traditions.

So, I see it as our task as young chefs to cultivate and revive tradition on the one hand, and to learn about the gastronomy of other cultures on the other. Another very important thing is to know our raw materials and the people who produce them. A very large proportion of Hungarian raw materials are exported abroad because our processing industry is finding it increasingly difficult to survive. It is also our task to use local and seasonal raw materials and to make them known to our guests in order to shorten the long food chains as much as possible,” she stresses.

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Fermentation on the festival agenda Edina Makai is in fine dining now. When talking about how cooking has evolved into high-level gastronomy in her case, she mentions fermentation, which also involves knowledge of certain sciences. “I see that the chefs nowadays are also becoming more and more serious researchers, experimenting with different molds and bacterial cultures,

for example. For me, that's what's exciting and challenging about this profession.”

Fermentation will also be on the agenda at the Gourmet Festival. “I'm preparing a presentation with a colleague, Fruzsina Farkas, on fermentation, how to reduce kitchen waste and our work with salt. I hope it will be inspiring and thought-provoking for many people. And I look forward to eating delicious food!”

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THE ALL NEW LEXUS RX HAS ARRIVED

STAY AHEAD Vehicle shown in the photo is for illustration only. The data measured based on WLTP cycle, the preliminary weighted combined fuel consumption for the RX models is 1,1–8,3 l/100 km, the preliminary weighted combined CO2 emissions is 24–189 g/km.

For more information, please visit: www.lexus.hu