american chamber of commerce in hungary

VOICEVol V, issue 17, january 2015

AmCham at 25: Moving With Momentum

MORE INSIDE: Dr. Iván Völgyes Award Visionary Series

3 Contents

4-5 introduction 22-23 LifEstYLE 31 AmchAm nEws Dear Members and Friends… András Török’s Entrepreneurship: Budapest ‘Magic will happen’ 6 PEoPLE Building on a Long-standing 24 AmchAm nEws Relationship Who Wants to 32-34 AmchAm nEws Live Forever? New Members 7 PEoPLE New Name, New Focus 25 AmchAm nEws 36-39 AmchAm nEws Interconnectivity Photo Coverage 8-9 nEws & AnALYsis and Networks Advocacy Update in the Digital Era 40 PAtron ProfiLE 10-15 covEr storY EY Hungary Ltd. 25 years of FDI in Hungary 26 AmchAm nEws Small but Significant 41 AmchAm nEws 16-17 nEws & AnALYsis Bringing Business News Roundup Boston AmchAm nEws 27 to Budapest 18-19 cAPitAL mArkEts Pondering the The Dark Side Price of Oil 42 cEo’s notE 20 mAcroEconomics 28-30 AmchAm nEws A Time The Brighter Big Picture New Year, New Board for Evaluation

Voice is published on behalf of the American Chamber of Commerce by Absolut Media Zrt., Madách Trade Center, 1075 Budapest, Madách Imre út 13-14., Building A, 8th floor Editor-in-chief: ROBIN MARSHALL ([email protected]) • Contributors: LEVENTE HÖRÖMPÖLI-TÓTH, ROBIN MARSHALL, ANDRÁS TÖRÖK, Photography: ANDRÁS HAjNAL, LÁzÁR TODOROff • Design: ABSOLUT DESIGN STÚDIÓ ([email protected]) • Art Design: NORBERT BALÁzS • CEO: TAMÁS BOTKA Advertising: ABSOLUT MEDIA zrt. ([email protected]) • Sales and Marketing: BALÁzS ROMÁN ([email protected]) Subscriptions: [email protected] • Printing: ABSOLUT PRINT Kft. Websites: www.amedia.hu, www.bbj.hu For AmCham Content and Advertising: zSÓfIA jUHÁSz ([email protected] + 36 1 266-9880/360)

HU ISSN 2062-1817 VOICE american chamber of commerce in hungary Dear Friends and Members,

level, too. Sometimes they are thanked, regarding future directions. This is but often they are unsung heroes, driven where we belong; this is our sweet spot. by values and not by applause. I have experienced firsthand the dedication of I am also greatly encouraged by the wonderful people working to better this level of interest at the board level to country in many ways. Whether it is the help steer this organization over its next Language Ambassador program touching two-year period, a good sign that an the lives of students in school, or making increasing number of decision makers recommendations regarding education, are willing to lend support to AmCham innovation or tax, this organization has in tough times and in tough questions. worked to carry the torch and to lead As they say, tough times don’t last, but the way. I am unabashedly proud of the tough people do: We’re ready. professionals with whom I have had to opportunity to work. But my pride is It has been my honor and pleasure to work with exceeded only by the excitement I have and for you. If you are not involved, I invite for AmCham’s ability to contribute to key you to get engaged in the future. Serving is a issues in the future. wonderful way to give back and set an example for others to follow. When you empower others Through the efforts of the staff and to contribute, you’ve contributed yourself. It’s Photo: István Nagyapáti committees, AmCham is poised to the same magic formula that has powered The world is a better place today, because play a pivotal role in channeling issues AmCham for 25 years. It works, and I am countless concerned citizens around the between business and government. grateful I had an opporunity to experience it; I globe take the time and invest the energy Strategic agreements – in plural – will wish you the same. to make a difference. What holds true allow us to leverage our membership on a global level holds true on a local base in putting forth actionable ideas William Benkő

AmCham Member’s Board

President First ViCe President seCond ViCe President Ferenc Norbert Dr. Andrea PONGRÁCZ FOGARASI JÁDI Morgan Stanley NÉMETH IBM Hungary Hungary 1117 Budapest, Analytics Ltd. bpv | Jádi Németh Neumann Str. 1. 1095 Budapest, Attorneys at Law Lechner Ödön 1051 Budapest, fasor 8. Vörösmarty tér 4.

[email protected] [email protected] [email protected] Phone: +36 1 382 5924 Phone: +36 1 881-4113 Phone: +36 1 429-4000 fax: +36 1 382 5501 fax: +36 1 881-3700 fax: +36 1 429-4001

BoArd MeMBers At lArge BEA Andrea BOB ELŐD JUHOS MANSFIELD Citi Service LHH Center Magyarország, Mansfield & Budapest Career Associates 1087 Budapest Consultants Kft. 1051 Budapest, Hungária krt. 1021 Budapest, Szent Istvan tér 11. 40-4 Ötvös János u. 1-3.

[email protected] [email protected] [email protected] Phone: +36 1 231 4747 Phone: +36 1 392-5070 Phone: +36 30 609 6379 fax: +36 1 501 7311 fax: 36 1 392-5071

ex oFFiCio MeMBers

dale wright, william BEnkŐ, istván hAvAs Introduction 5 Dear Friends and Members,

will want to join the most popular hubs; by-day and how many opportunities we therefore they will grow even more. The have to use our influence. larger the hub, the stronger the network, and the more brainpower it concentrates. It I am thrilled to be president as I feel that is clear that the hubs make the difference. we have momentum. We are relevant across a selection of topics; we will build AmCham is a hub, representing strong on this expertise and make our voice heard and diverse members, and it can make a even louder than before; we will encourage difference. That is why I chose to run for much needed dialogue and we will help the presidency. I am thrilled to have been the country and the region become more elected for the next two years. As our attractive and more competitive. It will be now former president Willy Benko said hard work, it will take time, but it is our in Parliament at our anniversary gala on vision and we will strive to achieve it! November 14, he was encouraged to be engaged, to run for the AmCham Board. Sitting on the grandstand watching the players on the field is one choice. My choice In the past years I have been fairly is to be one of the players and be part of active as a board member and as the game. I invite you to join the board and The Barabási–Albert model (for more Secretary Treasurer, so I chose to me. Let’s make a difference together! detail on this, see page 25) suggests become engaged, because I witnessed that if networks are expanding, links how this organization is evolving day- Ferenc Pongrácz

seCretAry treAsurer BoArd MeMBers At lArge Péter FARkAS LIAM FÁTH BÁRSONY CROW GE Hungary Kft. Honorary 1138 Budapest, First Med Kft. member Váci út 117-119. 1015 Budapest, Váci Greens Hattyú u.14. 5th Office floor [email protected] [email protected] [email protected] Phone: +36 23 502 400 Phone: +36 1 234 6217 Phone: +36 1 224 9090 fax: +36 1 382 5501

ChieF exeCutiVe oFFiCer DIÁNA krisztina Írisz LIPPAI- STEGENA VARGA NAGY Hewlett American Amgen Kft. Packard Chamber of 1054 Budapest Hungary Commerce in Szabadság tér 1117, Hungary 1051, 7. Citibank Budapest, Budapest, Szent Tower Alíz utca 1. István tér 11. [email protected] [email protected] [email protected] Phone: +36 1 354-4710 Phone: +36 20 214 8985 Phone: +36 1 428-2080 fax: +36 1 354-4702 fax: +36 1 229 9000 VOICE american chamber of commerce in hungary

Q&A Building on a Long-standing Relationship VOICE spoke with Minister of Justice László Trócsányi about the ongoing relationship between his ministry and AmCham, the newly signed strategic agreement between the two parties, and future plans.

YOur CArEEr hAS TAkEn In these two-and-a-half decades, AmCham ThE rOlES OF lIBrArIAn, has worked permanently with us. We are rESEArChEr, lAWYEr, all proud that the American Chamber of unIVErSITY PrOFESSOr, Commerce in Hungary was the first to A MEMBEr OF ThE be established in the Central and Eastern COnSTITuTIOnAl COurT, AnD European region and became the largest AMBASSADOr. hOW WIll ThEY in the area. Besides capital, AmCham also hElP YOu FulFIll ThE rOlE OF symbolizes American knowledge, know EndrePhoto: Véssey MInISTEr OF JuSTICE? how, and ethics that are crucial to do fair be adopted. I am convinced that a new Law has played a very important role in my and lucrative business. Many see the role of system of administrative judiciary must be life. My father was a lawyer as well; sadly the Moj as a ‘factory of legislative drafting’. introduced to Hungary. The Moj also plays he was fired by the communist regime However, just as lawyers make a mistake an important role in reshaping the rules from the Ministry of justice in the 1950s. if they distance themselves from reality, of the financial and banking institutions; He was my first instructor in the field of the Moj cannot live only in the academic society must be freed from the trap of the law. After graduation, I worked in various world of law; we need inputs. AmCham, foreign currency loans without destroying positions and places, but among all these like hundreds of other non-governmental the market. roles there is a link, which is my passion organizations, do a great favor to us when towards law and jurisprudence. they provide us with their expert opinion. WhAT ArE ThSEO ArEAS WhErE YOu COunT On AMChAM AnD AMChAM hAD A STrOng I personally appreciate that the companies hOW CAn IT BEST hElP? rElATIOnShIP WITh YOur represented by the chamber create jobs In the framework of the agreement on IMMEDIATE PrEDECESSOr, here in Hungary. We also note that a strategic cooperation recently signed unDErlInED BY ThE STrATEgIC growing number of Hungarian companies with AmCham, the chamber can see and AgrEEMEnT ThE TWO SIDES also do business in the United States under comment on pieces of legislation prepared SIgnED In EArlY 2011. hOW DO the AmCham umbrella, making it a strong by the Ministry of justice. We count on the YOu SEE ThIS rElATIOnShIP pillar for transatlantic relations. experience and constructive proposals of DEVElOPIng In ThE FuTurE? the chamber. In the codification work, all The Ministry of justice is the general WhAT ArE ThE MOST PrESSIng relevant parties shall have their say; it helps successor of the former Ministry of ISSuES FACIng YOur MInISTrY enforcement as well. Public Administration and justice, but rIghT nOW? this governmental agency has a different Prime Minister Viktor Orbán generally IF YOu hAD OnE MESSAgE TO portfolio, our competencies are not the mandated me upon my appointment ShArE WITh AMChAM MEMBErS, same. A change in one of the parties resulted to strengthen Hungary’s constitutional WhAT WOulD IT BE? in a new approach in our relationship, so we identity and public trust in the judicial We have been working together for a long have already agreed how to work together in system. My everyday work is subordinated period of time to build up a prosperous the future. The new strategic agreement that to these principles. Hungary must create and flourishing economy, and I count we signed on November 12 with AmCham the right legal environment for investors. on AmCham in this endeavor for many is a solid basis for that. Almost every aspect of business life is years to come. I also wish to express linked to – sometimes even dependent the important role AmCham can play hOW WOulD YOu CATEgOrIZE on – the legal environment. Hungary in enhancing the bilateral relationship ThE InPuT FrOM AMChAM? hOW adopted a new Basic Law with strict rules between Hungary and the United States, uSEFul IS IT TO YOu? on public expenditure. We have a new as demonstrated by the speech of the A quarter of a century has elapsed since Civil Code and Penal Code too, so new Prime Minister at the silver jubilee event of the change of regime in Hungary. During Civil and Penal Procedure Codes shall AmCham held on November 14. People 7 INTERVIEW

New Name, New Focus by roBin mArshALL The new name of the Hungarian Investment Promotion Agency (HIPA), formerly the Hungarian Investment and Trade Agency, reflects a more closely focused approach, says its president, Róbert Ésik.

“In response to the significant changes the Europe, a natural regional logistics base, world economy has seen in recent years, and a knowledge-based, innovation driven the Hungarian Government decided to operational hub for any businesses which adapt foreign policy to the new situation: intend to further expand in Europe. The foreign policy is now more focused to assist country also has a goal of being ranked first the country’s economic interests,” Ésik told for fDI per capita in Central Europe, and first HIPA Photo: VOICE in an exclusive interview. for exports to GDP ratio, and for industry to GDP ratio in the EU. even TIER1. from HIPA’s side, we provide With international economic relations added coaching and training for these SMEs.” to the portfolio of what was previously the “Thef DI per capita target is obviously a Ministry of foreign Affairs, the supporting top priority for us. Moreover, if we are able Shared Service Centers are the other highlight. institutions were also restructured, the to attract new investors, who supply their “We have 91 SSCs here now, and what we find president explained. “We have a new European distributors from here, that is that once they are here, they usually reinvest clear scope of work, which is investment automatically leads to more exports; and if and bring in more complex and higher value promotion. from now on our whole focus they build a production site here, that will added processes. This is good because it is on that. In the past we also handled trade contribute to industry’s GDP share.” Hungary means our well-educated, young, language- promotion; that task has been transferred currently lies second to the Czech Republic in speaking workforce can find interesting and to the Hungarian National Trading House, the fDI table, with €7,918 per capita in 2013 challenging positions in Hungary. Some another background institution of the and €9,383, respectively. 34,000 people are employed in SSCs.” Ministry of foreign Affairs and Trade. While HIPA’s main task is to promote foreign direct for the first 15 years after the change of While there is a well-known intent to make investments, the National Trading House system in 1989, capital inflow to Hungary Hungary a manufacturing hub, Ésik is at focuses on export promotion with the active was steady, but has accelerated since, with least as excited by the more recent talk of involvement of the Hungarian Export-Import the fDI stock doubling in the last 10 years becoming an R&D center. “This is very [Exim] Bank.” to reach €80.6 billion at the end of 2013, important because R&D developments lead or 82% of GDP. Last year saw a €2.3 bln in turn to increased production. R&D is One result is that whereas earlier HITA had inflow, HIPA says. an area where Hungary has a sustainable to work closely with two ministries regarding competitive advantage, so it makes sense state aid topics, now HIPA has just one It is clear that Hungary will need to be ever to invest in this area. I am very happy the master. Investors should benefit, too. “The more competitive: UN figures predict $1.6 government has announced it is doubling the new structure and scope of work means we trillion (about €1.29 tln) in global fDI flow for funds for R&D and innovation in the 2014-20 have an increased focus on our clients. We this year, rising to $1.75 tln (€1.42 tln) for 2015 EU funding period, with €706 mln dedicated aim to provide one-stop project management and $1.85 tln (€1.5 tln) in 2016. “Right now we to this. We will do our best to coordinate with services both for newcomers and investors have 104 investment projects. If we were able NIH – the National Innovation Office – so who have already established a presence to implement all of them it would create more together we are able to leverage these funds to in Hungary.” Efficiencies should follow, than 22,135 new jobs, and more than €2.6 bln the best advantage.” too. Previously the agency needed to get 16 in investments,” says Ésik. signatures to sign off on an incentive offer; And he freely admits he will also be looking now, the president says, he needs just three. The most successful sector is automotive, to this chamber to help. “AmCham is an with four carmakers and 15 of the top 20 independent professional organization that One of the first challenges facing Ésik, worldwide TIER1 suppliers already based is highly recognized and respected, therefore who was appointed in October, is making in the country. “I believe there is still further if AmCham informs and refers its members sure people are aware of the agency’s new potential in this sector. The good thing about to HIPA as the government agency that name and role. A key task will be assisting it is that it really helps Hungarian SMEs helps investors, that has the experience and the government’s ‘Opening to the East’ get into the value chain. They can start as a resources, that knows the opportunities and policy, which seeks to make Hungary TIER3 and, as they prove their worth and locations, that will greatly help us to achieve the distribution center of Asian trade to quality, move up to TIER2 and possibly our joint goals.” VOICE american chamber of commerce in hungary Advocacy Update

Over the past months, AmCham has continued its advocacy efforts in accordance with its mission and engaged in a fruitful and open dialogue with the government covering a great variety of issues important for our members.

ExCluSIVE MEETIng WITh PrIME Prime Minister and his colleagues that ‘we AmCham as a strategic ally in articulating MInISTEr VIkTOr OrBán AnD row in the same boat’, and it should not the standpoint of businesses in Hungary. (For hIS CABInET On nOVEMBEr 14 AT be questioned that companies are loyal to a full interview with the minister, see page six.) PArlIAMEnT this country and will work together with Prime Minister Viktor Orbán received the government to attract more investment A Strategic Partnership Agreement was AmCham representatives at an exclusive into Hungary and the region. It was also signed by the ministry and the chamber in meeting in the beautiful Munkácsy room mentioned that decisions on new investments Parliament on November 12. The purpose of of the Parliament on November 14, before are made at global corporate headquarters, the renewed agreement, originally signed in he and other invited honorary guests but based on locally gathered business 2011, is to set the framework for structured joined the 25th Anniversary Gala Event intelligence, and not on news headlines. dialogue between legislators and the business of AmCham Hungary and GE Hungary. sector. It improves the transparency of The Prime Minister, Minister of justice Dr. rEgulAr COOPErATIOn WITh ThE corporate advocacy, and makes structured László Trócsányi, Minister for National MInISTrY OF JuSTICE dialogue an integrated part of legislative Economy Mihály Varga, Minister of National In October, AmCham and its Regulatory work. Signatories of the partnership Development Dr. Miklós Seszták, advisor to Committee, chaired by Gábor Orosz, agreement set the long-term goal of drafting the Prime Minister Réka Szemerkényi, and Director and European Counsel of National high-quality, effective legislation to create a government spokesman zoltán Kovács held Instruments, was invited to the Ministry of more business-friendly environment with a a focused and in-depth discussion with the justice for a high-level discussion with Dr. stable legislative background in Hungary. AmCham delegation on the most important László Trócsányi, Minister of justice and Dr. State Secretary Berke and Deputy State issues raised by the business community in Barna Berke, State Secretary, where mutual Secretary Dr. zoltán Nemessányi also Hungary. AmCham representatives were trust and the foundations of a continued confirmed their participation at the determined to deliver the key messages of working relationship were established. December 2014 meeting of the Regulatory investors. Participants confirmed to the Trócsányi confirmed that the ministry views Committee, with the aim of discussing the News & Analysis 9

to relevant government bodies. AmCham will continue to monitor this regulatory field and will keep disseminating relevant information to its members.

COOPErATIOn WITh ThE MInISTrY FOr nATIOnAl ECOnOMY By the end of 2014, AmCham and the Ministry for National Economy will have carried out several joint projects. AmCham will continue to provide a platform for a regular dialogue between businesses and the ministry. In early December, an exclusive business breakfast for patron members was organized, where Antal Nikoletti, Deputy State Secretary responsible for foreign Economic Policy, shared the ministry’s commitment to engage in a regular and details of ongoing cooperation and future on Contracts for International Sale of constructive dialogue with AmCham areas of joint work. Goods (CISG). In this reservation Hungary to create a more investor and business declared that any provision of the CISG that friendly environment in Hungary. The new European Patent regime allowed a contract of sale or its modification ministry requested AmCham’s assistance At the request of the ministry, AmCham or termination by agreement or any offer, in collecting input and opinions from surveyed its members in October on the acceptance or other indication of intention to key business players on issues ranging Impact Assessment of Hungary’s Proposed be made in any form other than in writing, from investment conditions, regulatory Accession to the new European Patent would not apply where any party to such environment and administrative burdens, Regime. The chamber received a relatively a contract had its place of business in the to labor market conditions. In 2015, high number of responses, some of them territory of Hungary. regular dialogue will continue. providing very deep insight about the pros and cons of the European unitary patent The Regulatory Committee, with special PArTnErShIP WITh hIPA system. The ministry welcomed AmCham’s contributions from project leader Dr. In early November, AmCham input, coordinated and finalized by Dr. jános Tóth, Partner of faludi Wolf Theiss representatives had a high-level meeting Balázs fazekas, Counsel of White & Case Attorneys at Law, collected a handful of with Róbert Ésik, President of the LLP, and it was noted that the practical very practical business reasons, including Hungarian Investment Promotion aspects raised by the responses proved very arguments for a more stable and predictable Agency (HIPA) and his colleagues. valuable in particular. Most responses shared contract law environment in international The two organizations discussed their the view that Hungary should join the system trade and for the approximation of the law respective agendas and agreed on very in the first round, as accession would bring to the market practice, which served as the close cooperation in the future. AmCham benefits to innovative sectors including basis for the position AmCham confirmed to and HIPA have committed themselves (inter alia) electronic device manufacturing, the ministry, namely that it would supported to signing a Strategic Partnership medical equipment manufacturing, and Hungary’s withdrawal of such a reservation Agreement and making joint efforts electronics and information technology. to the CISG. in promoting investment. (For a full However, some respondents warned that the interview with the HIPA President, see Hungarian legal system should provide better rEgulATOrY COMMITTEE page seven.) Minister of foreign Affairs protection and incentives to local small- and COnTInuES TO MOnITOr and Trade Péter Szijjártó will be the guest medium-sized enterprises stepping out to lEgISlATIOn In ThE PIPElInE speaker of the AmCham Business forum the international scene so that they suffer no In November, the regulatory committee on january 12, where the ceremonial harm as a result of an increased exposure to reviewed draft amendments to the ‘Act signing of the Strategic Partnership patent trolls and large enterprises with a large on Mining 1993, XLVIII’, which was Agreement is scheduled to take place. international patent footprint. submitted to Parliament by the Ministry of National Development. AmCham AmCham’s position on hungary’s circulated the draft legislation among Acknowledgement reservations to the International Sale of those members whose activities would goods (CISg) legislation be affected by the new law and requested AmCham Hungary would like to Again at the request of the Ministry of their opinion. Dr. Bálint Bassola, Partner say special thanks to chamber justice, AmCham formulated and submitted of bpv jádi Németh Attorneys at Law and and committee members who its position regarding the possible withdrawal his colleagues incorporated members’ have contributed to advocacy projects in 2014. of a reservation Hungary made in 1987 when feedback and have compiled a set of ratifying the United Nations Convention recommendations, which was then sent VOICE american chamber of commerce in hungary 25 years of FDI in Hungary

“Thank you for being here. Thank you for having been here for 25 years. I wish us all success, glory, and another happy 25 years!” So saying, Prime Minister Viktor Orbán ended his speech marking the silver jubilee of AmCham and GE in Hungary.

t also provided a verbal bookend for all those impressive to comments made by the late figures, however, the President of Hungary ferenc perceived treatment of I Mádl, some 24 years earlier when, foreign investors is still as chairman of the drafting an issue, as indicated committee of the Hungarian foreign by the 2014 AmCham Investment Law, he told potential investors Investment and Business in the first issue of AmCham’s newsletter: Climate Survey (see “Come to Hungary. Stay in Hungary. I think page 12), where “stop it will prove worth your while.” multi-bashing” is listed among the AmCham Come they did. And the country has member suggestions for reason to be grateful that was so, for making the business while multinational companies have not climate more favorable. always appeared to be the most welcome It was also mentioned by of guests in some circles among Hungary’s several of the candidates political elite, there is no doubting the standing for election to nation would be a very different – and the AmCham board at undeniably poorer – place without them. its annual meeting on December 3. for, as the Prime Minister had acknowledged earlier in his speech: “If Thatf DI has made a we look at the figures related to U.S. measureable difference companies operating in Hungary, we to the economic realize how astounding they are: 1,700 U.S. betterment of Hungary concerns operate in Hungary, providing was underlined in a a living for more than 80,000 Hungarian 2011 research study citizens; investment by U.S. businesses called ‘The Present and in Hungary has surpassed $9 billion; and future of fDI in the investments by 40 American multinational Hungarian Economy’, companies have created more than 40,000 carried out by Századvég new jobs in the past ten years.” Economic Research Ltd., part of the estimates, fDI on average contributed Századvég group, on behalf of AmCham. 0.7-0.9 percentage points to the annual General Electric alone is responsible for “Companies with foreign interest generate GDP growth in the past 15 years. This many of those, as Nani Beccalli-falco, 20-25% of the GDP, they are responsible value could be assessed as a very high President of GE Europe, pointed out at the for 27% of total domestic investments contribution compared to the average 2.3 anniversary gala in the Upper House of and provide 15% of total employment,” percent annual growth rate during the Parliament (see photo spread on page 15). concluded the executive summary of examined period.” The GE business in Hungary is now worth the report. “Considering external trade, $6.5 billion, making it the third largest 65-70% of all exports and 72-73% of all The survey leaves no doubt as to the exporter in the country. It’s regional imports are related to these companies.” benefits of fDI. “The results are quite footprint is such that it employs a total clear: economic openness as a factor of 27,000 staff, more than 13,000 of them The impact has been sustained, the (that includes fDI inflows and the sum here in Hungary. research found: “According to our of exports and imports in proportion Cover Story 11

cost, usually through repatriation of profits or paying interest, something GDP alone doesn’t take into consideration. A better measure therefore, is gross national income, which does account for balance of payment income flows, and also measures value added effects such as technology transfer, and additional fixed capital formation.

“GNI would have been 6-16% lower if fDI was substituted for some alternative financial source,” Balatoni told VOICE. That it might have been even higher if Hungary’s “absorption capacity” – its ability to put fDI to best use – was greater, was hardly the fault of the investors, he argued. “This is what we have to communicate to society, to fDi Magazine, a bi-monthly investment publication of the Financial Times Group politicians and economists: if we don’t named Budapest as the most attractive Eastern European city for FDI in 2014. have greater growth, that is our [national] Photo: fromPhoto: the HIPA website problem, not the fault of fDI.” to the GDP) has a significant positive The government seems to have taken impact on a country’s economic growth. note of that notion, and is employing foreign investment in Hungary continues All in all, the inflow of fDI is regarded a twin approach to tackle the problem to be of the utmost importance then. as a potential opportunity for the of the dual economy. On the one hand Again, as HIPA’s Ésik points out, national economy.” are the strategic agreements the state Hungary’s great location means that, if has been signing with major economic you attract foreign investors here, they But potential has to be realized. MNCs, players since fidesz came to power. usually use the country as a supply base by their nature, are looking for the very While the content remains confidential, for the European markets, thus boosting best contributors for their component it is known that the companies (almost exports (think in particular of the likes supplier network. Put frankly, SMEs all of them foreign owned) are asked of Audi, Mercedes and Opel). Hungary’s across the region aren’t always up to the to involve a certain percentage of goal is to become the number one challenge, be it in terms of entrepreneurial Hungarian SMEs in their supply chains. recipient of fDI per capita in the region. attitude, openness towards constant Those SMEs still have to be up to the In 2013 it came second, with €7,918 technological development, transparency task however, and here comes the second (about $9,755 at today’s exchange rate), of operations, or the capability to adapt. line of attack. As Róbert Ésik, president behind the Czech Republic at €9,383 The report identifies “a significant of the Hungarian Investment Promotion ($11,577). Hungary’s fDI stock has handicap… in integrating foreign Agency says in our interview on page doubled in the last 10 years to reach €80.6 investments into the national economy” seven, his agency is actively involved billion ($99.2 bln) by the end of last year as a region-wide problem. in training Hungarian SMEs to meet (82% of GDP). 2013 saw a total €2.3 bln MNC standards, and also in linking ($2.8 bln) inflow, HIPA says. That has led to what some call a dual up investors and domestic suppliers in economy, with MNCs and SMEs at order that more of the latter can “get And if foreign investors are important, polar ends and little interconnection into the value chain”. the organizations who represent their between them. This in turn has at times voice in Hungary are equally so. As been used as a stick to beat foreign One of the pub arguments still trotted AmCham CEO Írisz Lippai-Nagy said direct investors, as if they alone are out against fDI is that foreign investors at the chamber’s 25th anniversary to blame, but the report preferred to are simply harvesting Hungarian gala: “Looking around you see leaders see the promise of something better. productivity, reaping the rewards and representing companies producing more “Handicaps in the capability to integrate sending the profits back home, wherever than 35% of Hungary’s exports and technology transfers, to develop that may be. Like most commonly held employing close to 180,000 people.” human capital and the weakness of beliefs, there is an element of truth in that, R&D incentives did not enable most but it is far from the whole picture. András foreign direct investment has helped Hungarian firms to become partners of Balatoni, now an analyst at ING Bank, transform the Hungarian economy over multinationals. If these limiting factors but then research director at Századvég the past 25 years, even allowing for the could be at least partly alleviated by a Economic Research Ltd and one of the co- trauma of the economic crisis that started conscious development policy then a authors of the fDI study, told VOICE back in 2008. It seems certain that fDI, if it huge opportunity would open for the in 2011 that whatever the type of capital is attracted in sufficient quantities, will Hungarian economy by the further inflow (be it foreign loans, portfolio continue to transform Hungary in the inflow of fDI.” investment, or fDI), it always incurs a next 25 years. VOICE american chamber of commerce in hungary

SURVEY Optimism Returns to Hungary’s Business Environment The worst of the financial crisis is over, the findings of the 2014 AmCham Investment and Business Climate Survey suggests. Member companies responding to the survey in general have a positive outlook of the future, optimism that likely comes from global and regional trends, as they say they have not seen any improvement in the most important local conditions determining their business environment such as stability and predictability.

hat lack of stability would was in regards to personal income taxation Theh ungarian business climate seem to be reflected in the fact with areas such as corporate taxation, gross Q: How do you evaluate the changes in the that only 8% of respondents employment costs and minimum wage Hungarian business climate for the following T plan strategic investment remaining stagnant and yet others facing aspects over the past two years? (2012-2013)? decisions. Better news is that 69% say they slight to moderate deterioration. It is clear do not plan to relocate all or part of their that decision makers see the stability of activities outside of Hungary in the next the regulatory environment as the most two years, and 62% of companies may concerning problem. consider bringing new direct investments to Hungary in the next five years. There appears to be a general optimism for 2014 in all areas. Most surveyed expect to Asked to evaluating Hungary’s regional see a rise in their profits and in their new competitiveness, 60% of respondents investments in 2014 compared to 2012-2013. In see Hungary as more competitive than the case of new investments, 62% plan to bring Bulgaria, with most putting Austria, new investment to Hungary in the next five Competitiveness Czech Republic and Slovakia ahead of years (30% plan no such moves). Projecting In the survey, business executives evaluated the country, and putting Romania on an Hungarian business indicators, business the general tendency of Hungary’s overall equal footing. leaders expect 1.7% annual growth for 2013. competitiveness over the past two years: 48% of respondents say that Hungary’s As for the overall competitiveness, 33% competitiveness has deteriorated over the saw some improvement (6% seeing past two years, 19% saw no change, and 33% strong improvement), while 48% said says it has somewhat improved. competitiveness deteriorated (15% said strongly) in the past year. In comparison, last year 76% of respondents said the country’s competitiveness has deteriorated (41% said strongly), and only 11% saw some improvement. from this angle, the present figures seem to represent a vast improvement in the general mood of the business community.

In evaluating 2012-2013, the only real improvement in the economic environment

Companies in figures AmCham Member Suggestions for Making the Business Climate More Favorable The 48 companies who responded to the • Provide stable, transparent and predictable regulatory and economic survey altogether employ 32,435 people. environment by minimizing improvisation and maximizing long-term solutions; Their combined total annual sales in • Less interference by the state in the economy; 2013 amounted to HUF 1755 billion. • Reduce bureaucratic red tape and make public administration more “service oriented”; The average total annual sales of the • Provide level playing field for all businesses, regardless of sectors; respondents were approximately HUF 44 • Stop multi-bashing; bln in 2013. Fourteen of the companies • Further increase Hungary’s attractiveness for foreign investors by (29%) have R&D activities in Hungary. achieving a balance of affordability and capability within the workforce. Coverxxxxx Story 13 A Decade and More of Briefs From 2003 to-date, AmCham Hungary has published a total of 11 position briefs. Each had the same goal, to help improve the country’s competitiveness by addressing a specific area or piece of legislation and making a series of recommendations. Others are in the pipeline.

n the 11 years since they were introduced, AmCham Hungary’s Position Position Brief Back Catalogue Briefs have covered a lot of ground, from how to encourage more fDI PoSition BRiEF no. i into Hungary (the first, in june 2003), to a response to the national (June 2003) energy strategy and proposed action plans (the most recent, published in ‘Encouraging Foreign Direct investment in I December 2012). Hungary’ PoSition BRiEF no. ii Along the way a number of pillars of Hungarian national competitiveness have also (January 2004) been addressed (education; logistics; the tax system; good corporate governance; ‘Education as a Pillar of Hungarian national Competitiveness’ health; E-Government; electronic manufacturing; and R&D and innovation). The e-government brief was PoSition BRiEF no. iii revised in february 2013 (August 2004) ‘Logistics as a Pillar of Hungarian national AMCHAM HUNGARY to take account of the latest Competitiveness’ developments in what is a POSITION BRIEF No. 1 fast evolving environment. PoSition BRiEF no. iV (September 2004) ‘tax System as a Pillar of Hungarian ENCOURAGING FOREIGN DIRECT JUNE, 2003 The briefs are considered INVESTMENT IN HUNGARY national Competitiveness’ AmCham’s flagship This AmCham Position Brief is the first of a series of short position papers designed to identify possible improvements, which may provide immediate and sustainable benefits PoSition BRiEF no. V to the Hungarian economy. lobbying vehicle; the (April 2005) The American Chamber of Commerce in Hungary submits this particular Position Brief in the hope that it will encourage decision makers in Hungary to take action to dra- succinct and highly ‘Good Corporate Governance as a Pillar of matically improve the climate for business investment in Hungary. AmCham believes that sponsoring FDI proactively is a necessary prerequisite for economic growth and focused proposals Hungarian national Competitiveness: improvement in competitiveness. Leading to Better Decisions, increased The recent stagnation in FDI reflects deterioration in the competitiveness of the are submitted to the Hungarian economy relative to neighboring countries. A prolonged stagnation in FDI Valuations & More investment’ will also hinder the necessary investment to sustain and grow Hungary’s ...“to take action to competitiveness. Hungarian government on

dramatically improve 1 Foreign Direct Investment (FDI ) in Hungary has languished in the past years, as Graph PoSition BRiEF no. Vi the climate for 1 below indicates. a regular basis and convey business investment (September 2006) Graph 1 the views of the AmCham in Hungary”... ‘Health as a Pillar of Hungarian national FDI inflows to Hungary in 2000–2002 (in EUR million) membership on a specific Competitiveness’

1 600 1 519 topic. In order to widen 1 400 1 281 1 200 1 098 PoSition BRiEF no. Vii 1 000 debate, the publication 800 530 539 539 529 600 (June 2007) 331 400 235 215 192 260 236 257 200 of each Position Brief 36 78 0 ‘E-Government as a Pillar of Hungarian Q1 Q2 Q3 Q4 SUM Q1 Q2 Q3 Q4 SUM Q1 Q2 Q3 Q4 SUM Q1 '00 '01 '02 '03 is followed-up with national Competitiveness’

1 In this Paper, FDI figures for Hungary will Source: National Bank of Hungary round table discussions always refer to equity only. PoSition BRiEF no. iX with the experts who (August 2010) Acknowledgements: Address: H-1052 Budapest, The AmCham Position Brief No.1 was prepared with the Deák F. u. 10., 5th Floor have contributed to ‘Electronic Manufacturing as a Pillar of assistance of Euro-Phoenix Ltd. Phone: +36 1 266-9880 Fax: +36 1 266-9888 each publication and Hungarian national Competitiveness’ E-mail: [email protected] Website: www.amcham.hu relevant government PoSition BRiEF no. X Printed on recycled paper. representatives. (March 2012) ‘Research & Development And innovation as a Pillar of Hungarian national Competitiveness’ Related stories from the VOICE archive: PoSition BRiEF no. Xi Supporting the Sustainable, December 2012 (December 2012) A Revision of E-Governance, December 2012 ‘on the Published national Energy Strategy Stand by Your Message, March 2012 and Proposed Action Plans’ VOICE american chamber of commerce in hungary

FUTURE STRATEGY A Future Built on the Foundations of the Past by roBin mArshALL AmCham CEO Írisz Lippai-Nagy laid out the vision and strategy for the chamber in her speech at the silver jubilee anniversary celebrations in Parliament on November 14, noting that it will be based on the solid foundations of the past 25 years, and calling on all stakeholders to remember the “one thing we have in common: a responsibility to shape the future of Hungary”.

theme running through her speech was that the chamber must meet its members’ A expectations, not least to make the most of the improved economic climate. Since she joined AmCham in june 2014, Lippai-Nagy has been meeting with as many members as she can. Their feedback has helped her understand members’ expectations, she said. Based on these interviews and discussions with the chamber’s board and committee chairs, the leadership team has formulated AmCham’s achieve a ten-place improvement in the AmCham already is a NETWORK, of long-term vision and its strategy for the World Competitiveness Index within a course. It connects business leaders next three years. decade for Hungary and the region. from industries and with government. The challenge, as ever, is to exploit its Central to the vision is a regional AmCham’s mission remains the same: To potential to the full. “As a financially approach. “Hungary needs to grow with be the most effective representative of the and politically independent organization the region and the region needs to grow business community in Hungary, while representing nearly 400 members from with Hungary,” the CEO said. In a sense, promoting the global competitiveness of more than 20 different countries, we are that reflects the reality on the ground. the country. in a strong position to advocate for an “Many of our members are already investor-friendly business environment regional, and AmChams in the region To better promote competitiveness and to the government.” have a powerful network to strengthen achieve the vision and mission goals, the cross-border activity.” chamber has redefined three strategic areas That naturally leads to ADVOCACY. of impact: KNOWLEDGE, NETWORK, Lippai-Nagy says the AmCham board The vision is further articulated in an and ADVOCACY. is working on a structured policy ambitious but easily measured goal: to agenda with both its own committees KNOWLEDGE clearly and strategic partners in government.

PARTNERSHIP includes the experiences This will be shared with members early TRANSPARENCY FREE ENTERPRISE and skills of members, but in 2015, and will act as the chamber’s COMPETITIVENESS ACHIEVE A 10 SPOT WORLD COMPETITIVENESS RANKING IMPROVEMENT IN 10 YEARS also takes in education and advocacy roadmap for the year. FOR HUNGARY WITH CEE. VISION innovation. This is an area of vital importance for both Guided by AmCham’s core values of country and companies, as partnership, transparency, free enterprise LUES MISSION VA Lippai-Nagy pointed out: and competitiveness, that is the task facing “Our members need a well- “this divergent, yet powerful business STRATEGIC AREAS ADVOCACY trained and capable workforce community”. It is a challenge, the CEO NETWORK KNOWLEDGE and we wish to support you freely admits, but all the more exciting TO BE THE MOST EFFECTIVE REPRESENTATIVE OF THE and Hungary in preparing and motivating for that. “I look forward to BUSINESS COMMUNITY IN HUNGARY, WHILE PROMOTING THE GLOBAL COMPETITIVENESS future generations to be working with you, side by side, in helping OF THE COUNTRY. competitively employable.” shape Hungary’s and the region’s future!” Cover Story 15 AmCham in Parliament VOICE american chamber of commerce in hungary Business NEWS it isn’t necessarily all doom roundup and gloom out there… Compiled from Hungary AM’s news service

MÁV Nosztalgia lauNches New luxury Budapest-tehraN express MÁV nosztalgia, a unit of the Hungarian state-owned railway company MÁV, launched the first service of the Budapest- istanbul-Tehran Golden eagle Danube express, a luxury train that travels between the capital cities of Hungary and iran, on october 15. The train departed, fully booked, with 70 passengers on board from the Western railway station, for a 7,000 km journey over 13 days. speaking at a press conference at the railway station, MÁV- start Ceo György Zaránd, who also heads the company’s nostalgia division, said MÁV- start provided the museum train and its staff, while British travel agency Golden eagle marketed the tickets. Tickets cost $10,000-15,000. The company plans to operate the Budapest- Tehran express five times a year, Zaránd said earlier.

BOrgWArnEr lAunChES huF 9 CAnADA’S AIr TrAnSAT TO in North America. “All the preliminary Bln ExPAnSIOn In hungArY lAunCh WEEklY FlIghTS research shows there is real demand for U.S. automotive industry supplier TO BuDAPEST this kind of service both in the leisure BorgWarner laid the cornerstone of a HUf Canadian airline Air Transat announced and the business segment and will soon 9 bln ($36.7 mln) turbocharger plant at its on October 16 that it scheduled to launch lead to increase of frequencies as early base in Oroszlány (located in northwestern chartered weekly flights connecting as possible,” Budapest Airport CEO jost Hungary) on September 29. The company Toronto and Montréal with Budapest Lammers said. won an HUf 850 mln government grant from june 2015, enabling Budapest for the investment. Minister of foreign Airport to provide travelers with direct ECOSOlIFEr BuIlDIng huF 15 Affairs and Trade Peter Szijjártó said trans-Atlantic routes again. The airline Bln SOlAr PAnEl PlAnT BorgWarner had pledged to create 400 jobs said it would use a wide-body Airbus A EcoSolifer, a solar panel producer using at the two plants. The investment includes 330-200 for the route. The first aircraft is Hungarian know-how, is building a 15,000 sqm of production area and 10,000 scheduled to arrive to Budapest on june HUf 15 bln ($60.5 mln) solar cell plant sqm of warehouse and service space. 18 at 11:10 am local time. The plane is to in Csorna, the company announced on The new plant will start production next offer 345 seats with 333 economy and 12 September 18. Hungarian State secretary summer. Headcount is expected to rise to Club Class places. The new route would Péter Szijjártó said the government would 207 a year later, but the potential exists for enable Budapest Airport to offer essential support the investment with a HUf 1 as many as 500-600 to work at the plant. trans-Atlantic connection to destinations bln grant. Construction of the plant, News & Analysis 17 which is expected to employ 212 people, IBM InAugurATES TrAInIng Statistics Office shows. Almost half of should be finished by the second half of CEnTEr In hungArY the spending, some HUf 197 bln ($801.3 2015. EcoSolifer managing director Ákos American multinational technology and mln), was by businesses. Some HUf 70 Haidegger said the unit would chiefly consulting corporation IBM inaugurated bln ($284.7 mln) of the spending came produce for export. a HUf 170 mln ($687,000) training from abroad, an increase of 24%. center for the staff of its international Eu-FIrE TO BuIlD €116 Mln service center in Székesfehérvár in SPECTruM EquITY, ACCEl gEOThErMAl PlAnT In northwestern Hungary on October 16. PArTnErS InVEST $57 Mln SOuThEAST hungArY The service center employs more than In PrEZI Hungary’s EU-fIRE is teaming up 1,500 people. zsolt Veres, managing American growth equity firms Spectrum with Icelandic peer Mannvit to build a director of IBM Magyarország, said that Equity and Accel Partners have invested €116 mln (HUf 35.6 bln) geothermal information technology was a business a combined $57 mln in Prezi, the power plant near Battonya in southeast in which today’s knowledge may be presentation software company founded Hungary, government and company enough for the present “but perhaps not by Hungarians, CEO Péter Árvai officials announced on December 2. The sufficient for tomorrow”. informed Hungarian news agency MTI. project, carried out with the cooperation Accel Partners has already invested in of the National Development Ministry MOnDElEZ InAugurATES more than 300 successful technology and the National Economy Ministry, is CAPACITY ExPAnSIOn companies, including facebook and supported with a €39.3 mln European American snack maker Mondelez Dropbox, while Spectrum Equity has Union grant. The power plant, to be International inaugurated a HUf 4.5 invested in more than 120 companies, completed by the end of 2018, will bln ($18.1 mln) capacity expansion at among them SurveyMonkey. generate an annual 12MW of electricity its biscuits plant in Székesfehérvár, Árvai noted that Accel Partners and and 60MW of heat energy. EU-fIRE northwest Hungary, on September Sunstone Capital invested a joint $14.5 holds 95% of the project company for the 19. Mondelez International already mln in Prezi in 2011. The number plant. Mannvit owns 5%. invested about $45 mln (HUf 11 of registered Prezi users has almost bln) in Székesfehérvár over the past doubled, exceeding 50 million in the FőTáV, AlPIq TO InVEST three years in the development of the past year. huF 18 Bln Székesfehérvár chocolate plant of one of főtáv, the district heating company its group members, Győri Keksz. Three VEnTurE CAPITAl for Budapest, and Swiss-owned Alpiq new production lines have reportedly InVESTMEnTS Csepeli signed an agreement on been installed, in order to produce rEACh huF 3.5 Bln December 2 for a development project Milka and Cadbury choco-bakery Hungary’s invested private and venture valued at over HUf 18 bln ($72.6 sandwiches exclusively in this plant, capital reached HUf 3.5 bln ($14.1 mln). The project is expected to raise mostly for export but more recently mln) in the third quarter, doubling the heat capacity of Alpiq’s power for the Hungarian market as well. last year’s figures of HUf 1.7 bln, the plant in the south of Budapest from The investment was financed fully by Hungarian Venture Capital Association 145MW to 245MW by the start of the company funds and created more than reported on December 10. According to heating season in 2017. főtáv is taking 350 new jobs in the region. the association, the third quarter saw a HUf 15.7 bln investment share in the 24 investment transactions, with the project, with half of that amount being PAnnOnIA EThAnOl lAunChES largest of them accounting for 54% of supported by a European Union grant. €30 Mln ExPAnSIOn the total value and ten exceeding a value Alpiq is investing HUf 3 bln in the Hungary-based Pannonia Ethanol is of HUf 100 mln each. New investments project, and planning to spend a further spending up to €30 mln (HUf 9.2 bln) accounted for 82% of the total value. The HUf 4.3 bln on related environmental on its project to expand its ethanol plant rest were repeat capital injections. developments by 2019. in Dunaföldvár (central Hungary), the company announced on December 10. WOOrY TO InVEST $35 Mln hOnEYWEll PlAnS €10 Mln for the project, the company signed In hungArY ExPAnSIOn In hungArY an agreement on a HUf 25 mln loan South Korean car parts manufacturer American multinational conglomerate from the Magyar Export-Import Woory Industries is planning to build Honeywell will spend €10 mln (HUf Bank (Eximbank) for the investment. a factory in Komárom (northwestern 3.08 mln) to expand its base in According to the expectations of CEO Hungary), investing $35 mln (HUf Nagykanizsa in western Hungary, zoltán Reng, the current investment 8.67 bln) between 2015-2018, Hungary’s foreign Minister Péter Szijjártó said on would double the plant’s annual foreign Minister Péter Szijjártó October 6. The government decided to capacity from 220 mln to 450 mln liters announced at a South Korean- allocate a HUf 761 mln grant for the as of next year. Hungarian business forum in Seoul on project, which is expected to create 109 November 28. This would be Woory jobs, Szijjártó said. The investment will r&D SPEnDIng ClIMBS MOrE Industries’ tenth plant and it is estimated add 5,000 sqm to the base’s existing ThAn 15% In 2013 that the investment will create 120 new 12,000 sqm. Honeywell employs Spending on research and development jobs in the first phase of development, 550 people in Hungary, at its base in in Hungary rose 15.5% to HUf 420 bln with plans to raise headcount a further Nagykanizsa and in Budapest. ($1.7 bln) in 2013, a report by the Central 250 in the next phases, Szijjártó added. VOICE american chamber of commerce in hungary

CAPITAL MARkETS The Dark Side If Hungary’s macroeconomic picture presented what was at times surprisingly good news in 2014, the capital markets fared much worse, offering what one of our analysts referred to as the “dark side of the picture”. Here we look back at (yet another) disappointing year, and search for any signs of better news in 2015.

market, and not all of the household market went away.”

Even the BSE’s four blue chips (Magyar Telekom, MOL, OTP, and Richter) struggled this year, impacted by the Russian factor, though that is not unique to Hungary. “Sentiment is very much affected by the Russian situation. Ukraine has some impact too, but it is rather a symptom of the problem, which is the Russian economy: oil prices, sanctions and the value of the ruble. This is a serious situation and will last a long time. Whether it will escalate to the scale of the Russian crisis at the end of the ’90s Hungary-based logistics giant Waberer’s International, pictured here taking we will have to wait and see,” Somi says. delivery of a new fleet of Mercedes lorries, may be considering a 2015 listing on the Budapest Stock Exchange. “A good example is the Austrian market, which I think of as being half Western European and half CEE. It is very 2014 was supposed to be the year unexpected rally on the U.S. stock affected by the Russian impact because things got better for the Budapest Stock market, on the coat tails of which many the banking sector has great weight in Exchange. Mind you, we seem to have thought emerging economies such as the Austrian index, and these banks been saying that every year since the Hungary could grab a ride. “We saw are affected by their own exposure to crisis hit. With the much-hyped Xetra double digit growth in the S&P 500, Russia. The problem with the Hungarian trading system finally introduced to nevertheless the Hungarian stocks did market is that three of the four blue chips the Hungarian market on December 6, not go anywhere.” are directly affected by Russia. Magyar 2013, trading was supposed to be easier. Telekom is the only one that has no More importantly, the same system now The specific challenge for the Budapest direct exposure.” linked all four members of the CEE Stock bourse is a lack of trading volume, Exchange Group: Budapest, Ljubljana, the roots of which problem go back Even M-Tel has its problems, though, Prague, and Vienna. The year did not, several years. “The institionals all but not least the fact that it sits in one of however, live up to expectations. disappeared from Budapest when the the sectors that suffers under special government nationalized the private government taxes. Even so, Somi says he “The main index was more or less flat pension funds; these were the biggest is “cautiously optimistic” for the stock. during the year,” says András Somi, traders on the BSE.” That is compounded One major reason is the possibility head of research and content at KBC in the case of Hungary by the lack of of a buyout by the German mother Securities. “It went from a low of 16,000 household investors, who took their company, Deutsche Telekom AG. With points to a high of 19,500, but spent the money out of the market in the first a deal priced at HUf 420/share, and better part of the year in a narrow range couple of years of the crisis, and have yet the stock currently trading at HUf 350/ from 17,000-19,000.” to return, something Somi says is a “quite share, there is an immediate 20% upside normal phenomenon”. “It is similar to potential for shareholders. And it wasn’t as if there was no good what we saw in the United States, but news out there. Somi pointed to the there the institutionals remained on the While no one outside of the company News & Analysis 19 knows the likelihood of a takeover, Ákos Kuti, head of the market, but the more time it takes, the less compelling the research at Equilor, agrees that it remains a positive possibility. reasons to join will be.” “Deutsche Telekom might consider this is a good time to do a delisting process and grab all the shares held by external There are rumors of possible IPOs next year (as there are in most parties, as it has decided it will not make a dividend payout, so years). Interestingly, Wizz Air is once again said to be considering no money will be going out of the company,” Kuti explained. making a public offering, having toyed with the idea in London in 2014, only to reject it because it felt the market was negative Interestingly, MOL isn’t greatly affected by the collapsing for the airline industry at the time. Kuti says such a listing would oil prices that typified the end of 2014. That is because the definitely help, provided it was at least partly on the Budapest bigger part of its business is as a downstream refiner. Cheaper market. “The rumors suggest it might rethink and launch a dual crude thus improves profitability for this unit. It does have an listing on London and Budapest; the current environment is very upstream exploration and extraction business, but the hit it positive for airlines and these low costs in particular, so it would be takes is not big enough to offset the gains. But MOL’s dispute a good time for an IPO,” Kuti says. Others said to be considering with the Croatian state over the management of Croat peer listing are flooring company Graboplast zrt. and Hungarian INA, which the Hungarian company controls, drags on. “One logistics giant Waberer’s International zrt. year ago we recommended MOL,” recalls Kuti. “Back at the start of 2014 it traded at HUf 14,000, now it is about 11,000, Kuti quotes a recent interview given by Bálint Szécsényi, a 25% decline. That is related to the INA situation which is the head of Equilor, in which he suggested the government still unresolved, and I do not think it will be resolved in 2015 might consider floating at least parts of some of its newly either; it is very complicated.” acquired companies on the Budapest bourse. “If that happens, it could be a game changer,” he notes. OTP Bank has exposure in both Ukraine and Russia, and although the Hungarian and Bulgarian businesses have done In the meantime, however, KBC Securities’ Somi won’t be well, there seems no likelihood of the former coming good setting the bar too high for 2015. “I hope the decrease in anytime soon. Somi points out that this is a reverse of the trading volume will stop or even show a slight improvement, picture during the financial crisis, when it was the Hungarian with one or two new names on the BSE.” business dragging down the others. The forced conversion of fX loans into Hungarian forints and the so-called fair Banking Law are not great news for the bank, but the fact that they have come into force does at least close the book on them, and allow the business to move forward.

“Like OTP, drug maker Richter has a strong presence in Russia; indeed, it has to, as the law only allows manufacturers with a base in Russia to sell drugs in Russia,” says Somi. That exposes the company to the crash in value of the ruble, points out Kuti. “That is why we track the ruble/HUf as a daily routine; it has a very strong correlation to the Richter share price.”

Given the prevailing conditions, both analysts agree that, for Budapest, the small caps currently offer the best ROI. The State Printing Company, ANY Biztonsági Nyomda Nyrt., and Graphisoft Park, which owns the office park of the same name, both had a very good year in 2014, but are unlikely to be able to replicate that in 2015. Suggested picks include ELMŰ-ÉMÁSz, which could benefit from continued government buyouts in the energy sector, geothermal energy company PannErgy, and building materials manufacturer Masterplast, provided there is a continued upturn in the construction sector. Chemical company TVK continues to perform well but has a very small free float (it is 94% owned by MOL). “Otherwise all the other companies are very small to talk about,” says Kuti, somewhat sadly.

The Budapest bourse appears caught in a vicious circle: it lacks big names beyond its blue chips, and partly as a result lacks volume and liquidity. Without volume and liquidity, it is hard to attract big names. “The spiral is hard to break,” admits Somi. “We need some really serious names to enter VOICE american chamber of commerce in hungary

MACROECONOMIC The Brighter Big Picture Compiling the yearend report for Hungary’s macroeconomic situation and the capital markets, you cannot help but be struck by how divergent they are. Here, then, is the good news.

ccording to data released in early December by Eurostat, the EU’s A statistical office, Hungary’s GDP growth was the second fastest in the whole of the Union in both the second and third quarters of 2014, tied with Slovakia. Ironically, Hungary’s year-on- year growth in Q3 (3.1%) was the lowest reading for the past few quarters. But even quarter on quarter growth of 0.5% is still more than double the average growth of the euro area.

(Seasonally adjusted GDP rose by 0.2% in the euro area and by 0.3% in the EU28 during Q3 2014, compared with Q2, Eurostat said. Quarter-on-quarter GDP growth in the euro area has been lagging in the 0.1-0.3% range for several quarters.) Photo: MTI / Balázs Mohai Reasons to be cheerfull: The economic figures in 2014 have given Economy While it is worrisome that Hungary’s Minister Mihály Varga cause to look happy. Q3 growth shows clear signs of slowing, there can be no denying the expected a 1.7% increase in GDP; we we do need to see economic policies overall results, which outstripped all will certainly exceed that,” Kuti says. that are favorable from an investment predictions from the start of the year. “for the consumer price index we perspective,” he noted. predicted 2.5% for December. At the end Kuti predicts lowered GDP growth “We did finally see some really nice of November it was -0.7, so it will finish for Hungary at around 2% in 2015. growth numbers, and inflation is the year significantly lower than we “We expect the budget deficit to come very low,” said András Somi, head of expected. The government budget deficit in slightly below 3%, because the research and content at KBC Securities. is in line with expectations, and while government will have a very strict “You could argue it is too low, but treasury yield was below our initial attitude to meeting the Maastricht it does at least give room for the forecast, that was driven by the national Criteria and thus avoiding a return central bank to somehow stimulate bank base rate cuts, and considering to the excessive deficit procedure. We the economy, and we see signs of that was not a huge surprise.” expect inflation to be around 2% for consumption ramping up.” 2015 compared to 2014 headline CPI.” Somi expects the good news to continue According to Ákos Kuti, head of into 2015, at least in the short-term. Hungary remains a very open economy, research at Equilor, 2014 “was quite “We still think that the macroeconomic and external risks could easily have different from our expectations”. big picture looks nice; these trends a bearing on how 2015 develops. Perhaps the biggest surprise had been can last into 2015 as well. There is one Continuing tensions remain between the continuation of the interest rate very big ‘if’, which is that international Russia and the EU, and sluggish demand cutting cycle. “It started the year at 3%, investment remains agreeable. Many from Germany in particular, and from and most analysts, including us, saw of the improvements in the Hungarian the eurozone in general could slow that process ending at 2.5%.” The rate in picture come – directly or indirectly – Hungary’s growth. “Some might talk fact went down to 2.1%, and there has through investments. We do not see any about the Greek situation; that could even been some talk of cuts resuming reason to be worried about these trends evolve by the end of the year,” adds Kuti. in 2015. “By the end of the year we breaking in the short-term, though “And Ukraine might have an impact.”

VOICE american chamber of commerce in hungary

András török’s BudAPEst The 50-year-old Elisabeth Bridge and the Breakthrough of Modernism

lisabeth Bridge as we know today turned 50 in november 2014. A wave of nostalgia flooded printed and electronic media alike. the opening of the then new bridge was a significant moment indeed in the history of hungary. with it, the last really visible war scar disappeared, E but there was another important underlying phenomenon: ‘modernism’ broke through in hungaryungary – up to then a backward-looking, shabby country, licking the wounds inflicted in the last war and in the revolution of 1956.

The plaque at the Pest end did its best to Margaret Bridge (since 1876), and summarize that, albeit in a clumsy style: franz joseph Bridge (since 1896, it is “There has always been a favorable crossing- now known as Liberty bridge). It was place here. from the 16th century on, there named after the wife of the Habsburg was a boat-bridge. Later on, between 1898 Emperor franz joseph, the queen the and 1903 the Elizabeth Bridge, the fourth Hungarians loved and mourned so vehicular bridge of the new Budapest was (she was assassinated in Torino in the constructed here. The already defeated and year the construction of the bridge was pointlessly all-destroying fascists blew up this begun). Designed by Aurél Czekelius masterpiece of Hungarian bridge building on and Antal Kherndl, the pillars january 18, 1945. The new Elizabeth Bridge supporting the portal of the bridge was constructed with three years’ work, were built right on the riverbank, not in inaugurated in 1964. Let this work praise the the usual riverbed. Thus the 290 meters life force and the peaceful creativity of our middle span made it the public bridge people building socialism.” So this bridge with the largest span in the world for was turned to propaganda purposes, as was 23 years. And it was very beautiful. No Elisabeth Bridge before WWI everything in those days. Luckily, people one, comparing the two designs, prefers already liked this bridge – following its the modern version these days, when day-to-day construction had been a popular old things have a special charm. But that was pastime for Budapesters. not the case in 1964, when people all over the world were under the spell of ‘modern times’. They simply adored state-of- the-art, unadorned designs. Elisabeth Bridge just after WW2 The old Elisabeth Bridge was a chain After WWII, all the other crossings were bridge. The original reconstructed in their original form, so winning plans of the why not Elisabeth Bridge? There are at least German designers three answers. The first is practical. Only Kübler, Eisenlohr the Pest pillars survived the explosion (while and Weigle, were all the pillars of the other bridges remained swept aside, as relatively intact). The second is also practical: they proposed a the city wanted to build a much wider bridge, new fangled cable to cope with growing motorization. So the bridge – and cables remaining pillars could not be used. And were not produced in an enlarged form, retaining the pretty in Hungary in proportions of the earlier bridge would have those times. The been exorbitant. The third reason takes us Art Nouveau back to propaganda: Communist Hungary The inauguration on November 21, 1964 look of the bridge did not, at this stage, do reconstruction; was outlined by architect Virgil Nagy; it rather it was all about forward-looking, The original Elisabeth Bridge was built emanated a quiet, grandiose charm, that modern design. between 1898 and 1903; the income that added much to the new inner city Budapest made it possible were the tolls collected from that was being laid out at the turn of the 19th The new Elisabeth Bridge links Március the Chain Bridge (collected since 1849), from and 20th century. 15 tér in Pest with Döbrentei tér in Buda. Lifestyle 23 The 50-year-old Elisabeth Bridge and the Breakthrough of Modernism

The great test

Designed by engineer Pál Sávoly (following tram tracks were removed from the bridge. very closely the design of a crossing in Returning them is back on the agenda. On May 1, 2004 when Hungary Cologne, Germany), it was built between joined the EU, there was a an art project 1960 and 1964. Suspension cables, each Elisabeth Bridge is remembered in the last hung from the bridge, showcasing the consisting of a bundle of 61 separate 50 years for reasons other than simply triumphs of the Hungarian water polo strands, connect the twin towers. The crossing the river. In October 1990, in teams. And just recently, the tens of vertical suspenders are not fastened to the the first year of the new democracy, taxi thousands of unexpected anti-internet tax cables, but kept in place by the weight of drivers protesting against a hike in petrol demonstrators, with their smart phones the bridge. There was one nod to the past, prices, blockaded it. lit, turned toward the fall sky. however; the present bridge imitates the arch of the old one.

To test the bridge before its inauguration, 126 vehicles, buses loaded with sandbags, trams and lorries were driven onto the bridge. In total the load was 2,000 metric tons; the sinking at the central part amounted to 90cm – exactly as planned.

The opening of the bridge was on the afternoon of November 21, 1964 and turned into an impromptu festival despite the drizzle. I vividly recall going to see the new bridge with my piano teacher, who cancelled our lesson for the occasion. The new Erzsébet híd had virtually become the symbol of the capital, the first modern, yet beautiful, attraction of the city. To walk over it, on the other hand, was never a pleasant experience. Too noisy, too wide, and ‘leads to A family picnic on the bridge, during the taxi drivers’ blockade, on October 27, 1990. nowhere’ in Buda. Nine years later, when the (Photo MTI) river-crossing M2 was fully operational, the VOICE american chamber of commerce in hungary

VISIONARY SERIES Who Wants to Live Forever? by roBin mArshALL Are you prepared to live forever? That was the provocative question posed at the Hilton Budapest on September 30 for the second talk in the Visionary series celebrating AmCham Hungary’s 25th anniversary this year.

new life-saving drugs have to come in at Bertalan Mesko is, by his own admission, least less than this to stand a chance of obsessed with machines and technology. getting approval for development). And that He says he knew he wanted to be a doctor barely begins to cover the content covered. from age six, but once he had qualified, and then gone on to get his PhD in Much of the conversation revolved around genomics, he felt strangely flat. “I realized cancer, and the advances made since I had ignored that whole ‘geek’ part of my U.S. President Richard Nixon signed the personality,” he told after the event. His National Cancer Act in 1971. While some answer was to create a profession which did see disappointing progress, others point to not previously exist – medical futurist – the recent advances in our understanding and which he is now beginning to teach to thanks to the studies of genes. In this others. He has also written a book aimed at battle, it seems our bodies are both our his medical colleagues (‘The Guide to the Bertalan Meskó first line of defense and our own worst future of Medicine’). enemy, as András falus explained. “Every ten minutes a cancer cell is generated in We already live in a world where sci-fi like oderated by outgoing our body. However, 99.99% of cancer cells exoskeletons allow the paralyzed to walk AmCham President are recognized, isolated and killed by our again, he pointed out. “The world is going Willy Benko, this immune system.” The 00.01% of cells that to change dramatically in healthcare and M thought-provoking, at survive and develop into full-blown cancer that is going to cause problems,” he warned times shocking event featured two keynote are, by definition, easier to spot – they the audience. “Nobody is ready for such speakers: Professor András falus, from are multiplying and growing, after all. transformations.” Everyone needs to be the Department of Genetics, Cell- and Unfortunately, they are also the hardest to better prepared for the future, doctors Immunobiology at Semmelweis University; kill. “These cells are very smart cells. These and patients alike. “Right now we have and medical futurist Dr. Bertalan Mesko, cells have already won when in a similar ‘sick care’, not healthcare. I would teach managing director and founder of situation against the immune system.” kids [about healthcare] from age six. […] Webicina.com, a service curating medical Patients should have better health literacy, social media resources for patients and Cancer research is an area that has and doctors should have better digital medical professionals; as well as designing particularly benefited from genomics. When literacy.” Genetics specialist falus agreed customized solutions for pharmaceutical the Human Genome Project was completed that our own role in our life has to be and medical technology companies in 2003, work started to sequence the drilled in to us: “We have to teach people through social media. They were joined for genes in cancer, with some 138 mutations from kindergarten that we are responsible a roundtable discussion by László Nagy, responsible for cancer already identified. for our own health.” Director of Technology Development at GE Now medicine is starting to be tailored to Healthcare; Dr. István Peták, founder and those specific genes. AmChAm And GE CElEbrAtinG Scientific Director, KPS Biotechnology and 25 yEArs with hunGAry Molecular Diagnostics Ltd., Senior scientist, Two other recurring themes from the Pathobiochemistry Research Group, evening were the increasing use of multiple, Hungarian Academy of Sciences; and Dr. complimentary strands in treatment, and an judit zolnay, Deputy General Manager at ever more personalized, individual approach health insurance company MetLife. to diagnosis and treatment. Advances in computing power, for example, make it Their conversation and Q&A session with possible to analyze big data more quickly and the audience covered ground as wide thoroughly, data mining greater amounts of AmCham, the key representative of United ranging as the development of new sciences information for better results. Technological States and international businesses in Hungary, is proud to have celebrated its such as genomics, to medical technology advances obviously help in coping with 25th anniversary together with its founding breakthroughs, to the official value of a injury and illness, but also aid in prevention. member and the largest U.S. investor in human life (a year’s dialysis treatment, Lifestyle choices will become an ever more Hungary, GE. although the exact cost is not made public; important part of the treatment matrix. AmCham News 25 VISIONARY SERIES Interconnectivity and Networks in the Digital Era

The third installment of AmCham’s 25th anniversary Visionary Series of talks, held at the Marriott Budapest on October 15, focused on interconnectivity, mainly in the man-made world of business and social networks, but also in the natural world, at the cellular level at which our networks, quite literally, hold our very bodies together.

he keynote speaker for this Internet for 50. These [metabolic networks] latest event was Albert- were created four million years ago by László Barabási, a network evolution. Completely unrelated systems T analyst so highly thought show the same architecture.” If the random of that his name regularly comes up when network model could be likened to the U.S. scientists discuss who might be the next highway network, with similar numbers Nobel laureate of Hungarian ethnicity. of highways linking towns (nodes), then scale-free networks are more like an airline And it is appropriate he has Hungarian route planner, with some airports much roots, for network analysis turns out bigger than others. “It is hubs that make the to be something of a Magyar specialty. difference,” Barabási explained. facebook made the concept of ‘Six Degrees Network analysis can take you to many of Separation’ (the idea that everyone in apparently disconnected studies, the the world is connected to everyone else Albert-László Barabási scientist said. He has a company in in the world by a chain of no more than Hungary called Maven7 that helps six acquaintances) popular in the early businesses through organizational network 2000s, but in 1990 a Broadway play of the this not the case. “Effectively, a random analysis. He has colleagues in the United same name had brought it to the attention society would be very boring and uniform,” States who have taken modeling to the of the pre-facebook generation. Barabási Barabási points out. level that, from 2009, predicting the spread says before that, in the 1960s, it had been of epidemics “became a science, became a game played by Harvard Scientists. But What the random model is missing, terribly accurate”. The clue that previous the first person to articulate the concept Barabási says, is the idea of larger nodes, modeling was wrong was the spread of was actually the Hungarian author and called hubs. But he and his team only AIDS, he said. “AIDS is very difficult to pass playwright frigyes Karinthy, who wrote discovered that once they started to on; typically it takes 200 sexual encounters about it in his 1929 short story ‘Chains’ research the way the World Wide Web to catch it. According to traditional models (‘Láncszemek’). was connected in the 1990s. They were it should not spread. But AIDS did because unconcerned by the content they found in of scale free networks.” The problem, he That was later developed by the brilliant the nodes (documents), merely looking at said, was a social issue people did not want and prolific (if eccentric and nomadic) the number of links (URLs) attached. “We to address: prostitution. Sex workers became Hungarian mathematician Pál Erdős thought it would be random: some people the hubs through which AIDS spread (better known in the West as Paul) care about large machines, some about through the world. and his colleague Alfréd Rényi. They computers, others about sumo wrestling. collaborated on the study of what Barabási What we found was not random.” In 1999 His presentation was followed by a called “messy” networks, because “messy he and Réka Albert published their scale- roundtable discussion, moderated by looks like random in a mathematicians free network concept, the Barabási–Albert Norbert fogarasi, AmCham’s first Vice language”. In 1959 that produced the model, which suggests that if networks are President, in which Barabási was joined by Erdős–Rényi model of random graphs, expanding, links will want to join the most Eszter Szabó, Corporate Communications which in turn was applied as the random popular hubs (those with the most links). and Public Affairs Leader for CEE, GE; network model. It gained the pair much Dr. Gábor fáth, Executive Director and mathematical fame, but Barabási says it is But they subsequently found the model Head of the Market Modeling Group, wrong when applied to networks. That is could be applied beyond the web. “The Morgan Stanley; Dominic Köfner, because it assumes all nodes will have more same types of networks occur in nature, Vice President, Group Corporate or less the same number of links attached even on a metabolic level. The World Wide Communications, MOL Group; and to them, give or take 300-400. Life tells us Web has been around for 20 years, the Christopher Laska, CEO, Telenor. VOICE american chamber of commerce in hungary SEMINAR Small but Significant Although the latest amendments to the tax legislation are relatively few, they act to strengthen control and will drive the total bill upward, an AmCham-EY tax seminar was told.

mall Changes – but a He added, “New, or significantly increased zoltán Lipták (above, right) is a partner Growing Tax Bill’ was the taxes will be levied on food product retailers, of EY Tax Services leading the firm’s transfer-pricing practice with more title of the joint seminar tobacco companies, alcohol retailers and than a decade-long experience as a tax organized by AmCham and investment funds. Even though there are professional. He has broad experience ‘S EY on December 8. At the also favorable changes, the system altogether in transfer pricing planning and conference, EY tax partners Tibor Pálszabó is becoming slightly stricter and tax costs controversy advisory as well as transfer and zoltán Lipták presented next year’s key will somewhat increase.” pricing compliance with a focus on financial markets. His fields of expertise tax law changes in regards to corporate tax, include international taxation advisory transfer pricing, investment fund tax and Lipták, who is responsible for the firm’s – structuring and implementation personal income tax. transfer pricing practice, highlighted one of outbound and through bound change with the potential to have major Hungarian investments. “A main theme in the tax law amendments ramifications for multinational companies. is an increased protection of budgetary “The introduction of the interquartile range revenues,” Pálszabó, who is responsible for as a compulsory measure is potentially the Tibor Pálszabó (above, left) is a partner of EY Tax Services leading the firm’s the firm’s business tax advisory practice, most significant legislative change in the business tax practice with more than told the conference. “This is achieved field since the enactment of the transfer seventeen years experience as a tax through new restrictions on the use of pricing documentation rules in 2003. Those professional. He has extensive experience carried forward tax losses, a new restriction companies who adapt some sort of a margin within the areas of cross-border on goodwill amortization, a new electronic targeting in their intra-group pricing (over a transactions, acquisitions and mergers, and group restructuring transactions. freight tracking system to combat VAT half of multinational enterprise subsidiaries Tibor is the leads the financial services fraud and stricter requirements on inter- operating in Hungary) will need to react tax group in central and south Europe. company pricing.” immediately,” he warned. AmCham News 27 FORUM Pondering the Price of Oil by roBin mArshALL Perhaps the biggest uncertainty facing Hungary’s economy in 2015 is what will happen with the price of oil, Deputy Governor of the Hungarian National Bank (MNB) Ádám Balog told AmCham delegates at a business forum on December 9.

e are trying to understand what is happening in the “W oil markets – and if anybody here knows, please tell me. It seems it is partly political, partly market driven, but we do not really know what will happen.” The current consensus at the bank is that oil prices were unlikely to rise again in the short-to mid-term, he said, but it was an issue of real debate.

This is far from a uniquely Hungarian problem, of course. Bloomberg reported on December 11 that Brent crude had fallen below $65/barrel for the first time since 2009 with OPEC cutting its forecast and the West continue to worsen, it will affect change”) but it had been necessary. It was for demand in 2015. That in turn raised Germany, Hungary’s major trading partner. also a means of fighting corruption. concerns over the strength of the global “We are not extremely worried about this, economy with no clear indication of but we have to take this into consideration,” “There has to be a strong competition when the plunge in prices might bottom Balog said. “The most important problem between the bureaucracy and the market, out. It also left investors scratching their for us in particular concerns the eurozone because neither can exist without heads somewhat about where to invest, and whatever happens there. There is a risk the other. You need good, well-paid as traditional safe havens like copper and for inflation and economic stagnation. The bureaucrats against good, well-paid even gold also lost value. japanese situation is closer and closer, though business people.” I must stress here there is not the national Balancing the budget to account for lost bank’s view but mine.” Effectively the argument he was making tax revenue is the government’s headache, was that, with the proper balance, the two rather than that of the national bank, but The fear that the older EU states could sides keep each other honest. “I strictly the MNB might well have to move on hold back the more vibrant and better believe in checks and balances,” he said. interest rates in response. The key questions performing Central and Eastern European If either party was in the ascendance, it will be when, and in which direction. members was just another example of why was bad for the economy. In his previous an open economy such as Hungary had private sector life he said he had never “This right now is one of the most to broaden its trade base, Balog said, in an personally experienced corruption, but important questions and internal debates,” obvious nod to the government’s ‘Opening had seen what he called “dysfunctioning said Balog. But given the uncertainty, to the East’ policy. “We have to find new bureaucracy” when people lacking the it would be wrong to make any snap markets, be they in the east, west, north or necessary skills had been working in the decisions at this time. “I think our view south I do not really care, but we have to wrong jobs and were thus exploited. will be that we have to wait and see for the find new markets for the next 10-20 years.” next three to six months and then we will Looking to the future, he said there were move,” he said. “As long as we 51% believe Talking about the changes made in the clear signs the economy was improving, this will be short- to mid-term, we will not domestic economy, he said one of the but accepted more could be done. He hopes make any major decision based on this, as most important was a rebalancing from a the creation of the Assest Management it is not robust enough.” period of near pure market competition Company (MARK zrt.), which would take to one of much stronger regulation. It had over toxic and poorly performing loans It is not the only challenge out there, not been popular, he admitted (“people from the banks’ portfolios, will mean “they needless-to-say. If tensions between Russia do not like change, businesses do not like can use that money for real lending”. VOICE american chamber of commerce in hungary New Year, New Board by roBin mArshALL

AmCham members elected a new president, second vice president and five board members at the annual assembly on December 3. VOICE is pleased to be able to introduce the chamber’s newly constituted governing body.

He also highlighted some of his other skills. “I am a frequent speaker at science, business and NGO related events and conferences,” he wrote, adding, “I believe one of the most powerful ways business leaders can support their wider community is mentoring younger talents. I actively practice mentoring within and outside IBM.”

Dr. AnDrEA JáDI néMETh Managing partner of bpv | Jádi németh Attorneys at law Second Vice President

Dr. Andrea jádi Németh, who was first elected to the board in 2009 and had previously served as second VP (from 2011-13), also contested the president’s position. She spoke about AmCham as a “platform and strong voice for companies and as a powerful representative of values and business interests”. She said she wanted to serve AmCham that “drives the change of the country’s business ecosystem, integrates talent and human capital, drives Hungarian companies to go global and facilitate improving a Ferencz Pongrácz Dr. Andrea Jádi Németh strong image of Hungary as a worthy business destination”. FErEnFErEnCZ POngráCZ conflict.” He insisted he had good Business development executive of relations with members and office In answer to the question why IBM Southeast Europe staff, before adding, “There is one she would make a good leader of President more important thing , and that is the chamber, she pointed to the motivation: and I am motivated!” combination of independence and ferencz Pongrácz, who has been strong affiliation that is also a second vice president since 2013, was In his submission to members before pillar of operation at her law firm, elected on a platform of representation, the election he highlighted his role which regularly acts for some of the leadership and motivation. “I have 15 as second VP and his involvement biggest businesses in Hungary. She years experience of leadership roles with the organization of the 25th argued that this duality could be to in large, complex organizations like anniversary year events. “Most AmCham’s comparative advantage IBM and PwC,” he told members importantly I have been trying to and a powerful feature. She added: at the annual assembly. “It is not a spread AmCham’s messages and “Representation is my profession. This problem if there is conflict,” he said, initiatives in my personal network and is me, this is what I do best. And that “it is a problem if you can not manage on public forums.” is what I am offering you now.” AmCham News 29 New Year, New Board

Andrea Juhos Dr. Farkas Bársony Liam Crow

In her written submission she had But for all her reliance on facts, she four GE companies in Hungary), his earlier said, “…being involved in the still has plans for the future, and professional skills (he has a tax and regulatory committee offered me the particularly improving Hungarian legal background, and serves on the most precious opportunity to give best language-learning skills. “I want chamber’s taxation committee) and his run of my professional knowledge for to take the language ambassador’s knowledge of American and Hungarian AmCham. As long as AmCham keeps program to a brand new level by business life. on carrying its ultimate objective to having students visit our workplaces enhance the global competitiveness of to get a better understanding of the Asked why he felt qualified to serve on the Hungary, I will constantly be inspired.” world of work.” board, he said “I have been working in an environment where Hungary was always AnDrEA JuhOS In her written submission she described placed in its international context and had Managing partner of lee hecht the committee she has chaired as “perhaps to find ways and solutions good for both harrison hungary the most important committee supporting the country and businesses. In summary, Board member Hungary’s competitiveness” and spoke the main skills I would like to bring are of her vision for its future: “Our priority expertise (finance law), global thinking, In seeking re-election for her second must be the further improvement of negotiating and leadership skills.” successive term as a board member, the level of our vocational and higher Andrea juhos said she would rely on education as well as the language skills of Speaking of the chamber itself, he facts, on what she had done in the past our fellow citizens.” said “the main business players (and two years, rather than on promises related organizations) in Hungary of what she might do. During that Dr. FArkAS BárSOnY simply cannot afford not to be part time she has chaired the labor and Managing director of gE hungary kft. of it, especially in this fast changing education committee, hosting the Board member environment. However, the main successful career school program, as importance of membership for me is well as being involved in the well- New member of the board farkas that AmCham provides a unique and regarded language ambassador project Bársony will seek to bring to bare his probably the most effective platform to and the roundtable discussions on the experience in leadership positions influence the business environment in future of higher education. (he is currently managing director of the country.” VOICE american chamber of commerce in hungary

“I truly believe in Hungary and I love my country. I truly believe together we can do many things to make this country successful.”

In outlining the skills that she would bring to the board, Előd was equally positive. “Given my educational background in law and economics, I feel I could contribute to AmCham’s missions in taking a stand on economic policy issues, government decisions – as well as the establishment of a strong and cordial relationship with local ministries and other professional organizations and schools.”

A mother with two daughters, she is the founder and senior sponsor of the Citi Women Hungary Network, and also a member of the Hungarian Women Business Leaders forum and its 20 20 20 Club.

kkrISZTInA VArgA regional business operation director at hewlett-Packard hungary Bea Előd Krisztina Varga Board member

Krisztina Varga challenged members lIAM CrOW still remain great challenges ahead. to look in the mirror in choosing her. Business development manager The professional growth that I have “I do like looking into the mirror, of FirstMed kft. experienced over the past eight and not only because I am a woman, Board member years while working through the but also because I see the history financial crisis, as well as evolving and heritage there.” But if she were Liam Crow is an American, married and adapting to the new market, has “brave enough”, she said she could to a Russian, whose educational given me a unique insight and skill- also see the future. “The show must journey has taken in a BA in history set that I believe would be a positive go on. That is what we are here to do: at Denison University (Granville, contribution to the board.” to think, act and deliver.” Ohio), Chinese language at the People’s University of Beijing, and The chamber, he said, “not only She continued: “Time matters, an MBA at Corvinus University. His provides a forum for members and AmCham has to be the first to first experience of Hungary was on to express challenges, but also integrate new ideas. It has to be first his way back from Beijing, when a collaborative platform for to be outspoken about healthcare, he found himself in the Hungarian overcoming difficulties”. administration, bureaucracy that capital for the ‘Budapesti Búcsú’, a prevents Hungary from being farewell party celebrating the official BEA ElőD competitive.” If AmCham didn’t speak withdrawal of the last Soviet troops head of service center at Citi out when necessary, who would, she from the country on june 19, 1991. Service Center Budapest asked. “People who know me say I Board member have fallen in love with AmCham. I He returned in 2003 to study for his am passionate about what we can do.” MBA having left his job as an options Bea Előd joined Citi as a fresh ‘market-maker’ in the Chicago Board graduate 25 years ago in a move that Asked what motivated her to become of Trade and CBOE. Speaking of also linked her with the very start of a board member, she said, “I believe what motivated him to become a AmCham, as one of her first job was that what we do is what we are. Only board member he said, “Since my to set up and manage the AmCham human efforts, people can drive arrival in 2003 I have seen great account at the bank. She also change. I will work in driving this strides taken by Hungary, but there attended the chamber’s first events. effort to make it successful.” AmCham News 31

SUMMIT Entrepreneurship: ‘Magic will happen’ No one is born an entrepreneur, and there is no one path to becoming one, according to delegates at the Third AmCham Entrepreneurship Summit on September 24.

The first keynote speaker was be in line, but the practice is not,” countered Robert Mitchell, vice president Erdős. Another theme raised was the best of business development time to get started. Balogh, of NNG, said T and strategic partnerships there was no perfect time, so you might as at Crowdfund Capital Advisors. He and well jump in now. “Entrepreneurs are those a group of friends realized that, post- who start before they are ready,” he said. crisis, a lack of access to funding was Gergely Kiss, founder & CEO of mobile stopping many people from starting applications company Attrecto zrt., was also up or developing an otherwise viable in the ‘sooner rather than later’ camp. “Learn business. “The solution we came up with you learn will in time become outdated, English and just start […] start to act, get was crowdfund investing. Essentially it but learning itself must be life-long. involved in something. You have great access is nothing new, it is ‘friends and family’ to information. Start to talk to other people investing. We just took it and made it A big part of being successful is building and magic will happen.” possible online,” he said. a team of people with different but complementary skill sets. “It only takes The summit was held at the lecture hall But first they had to change some an average idea to start a company,” of Corvinus University, in front of an Depression-era legislation. While the advised Péter Balogh, founder and CEO audience of more than 200 and followed regulations allowed kick-starter style of navigation software company NNG, “It via live streaming by many more at the funding for businesses yet to launch, they takes a great team to make it remarkable.” University of Pécs. Co-organizers of the prevented individuals from investing as event were the U.S. Embassy, Corvinus individuals in the capital markets unless Kevin j. Aspegren, serial entrepreneur, University of Budapest, CEU Business they were legally defined as a millionaire. president of the American University in School and the Hungarian Venture Mitchell and his colleagues had enough Bulgaria, and general partner of private Capital and Private Equity Association. vision and passion to overturn that, equity and venture capital firm Chastain The conference was sponsored by bpv jádi despite at one point being told ‘You’re Holdings, LLC, said that matching up Németh Attorneys at Law, EY, InfoGroup, crazy’. In january 2011 they began personalities and skills are essential. “If Sopreso and Ustream. lobbying: 460 days later, in April 2012, you are going to have partners, make sure President Barak Obama signed into law they are the right ones. If you want to The summit also saw the launch of the jumpstart Our Business Startups start a tech company and it is just you and ‘Vállalkozni jó!’, a Hungarian-language (j.O.B.S.) Act that they helped frame. three accounting guys, you are probably publication featuring a series of interviews in the wrong team.” with successful Hungarian entrepreneurs, It frees up access to money. Half of all including the founders of GRAPHISOfT, venture capital is invested in three cities Perhaps one of the areas of greatest Masterplast, NNG, Prezi, ProfiPower, in the United States, said Mitchell; 90% disagreement concerned intellectual Ustream, and Wizz Air among others. is invested in just five. But not everyone property laws. Attila Erdős, CEO of The goal of this booklet is to present can live in Boston or New York or San Humeltis Ltd., argued that too many corporate best practices and ethics and to francisco. “Crowdfunding allows capital researchers and scientists did not know the encourage entrepreneurship in Hungary. to flow to where those people are.” rules regarding ownership of IP generated The book is a cooperative effort of dozens on-campus (it resides with the school and of volunteers, published by the AmCham Talking of the building blocks essential must be licensed), which made investing Hungary and supported by 30 publication to success, Mitchell emphasized the idea in university spin-offs questionable. Tamás partners, including 11 universities and of always being open: to opportunities, Bene, vice director and legal advisor at eight chambers of commerce. obviously, but also to knowledge. “The Debrecen University’s Transfer Technology most important thing you learn in Office, said Hungary’s laws were broadly in The book can be downloaded free of charge university is how to learn,” he said. What line with the rest of Europe. “The theory may from http://bit.ly/1op7Brp. VOICE american chamber of commerce in hungary New Members On Board

BUSINESS

Air France kLM CNA Executive Search Hungary kft.

Country Director: Dr. Zoltán korpás Country Manager Hungary: Mr. Dror Harel Address: 1054 Budapest, Szabadság 7. Address: 1426 Budapest, Pf. 190/12. Phone: + 36 1 474 8108 Phone: + 36 1 373 7737 E-mail: [email protected] E-mail: [email protected] Web: www.cnaint.eu Web: www.klm.hu CNA Executive Search Hungary Ltd. is member of Pertemps AIR fRANCE KLM is a major player in the air transport Group, the largest, privately owned recruitment business in the industry. The group operates the leading long-haul UK. We are a team of highly experienced executive consultants network on departure from Europe. With their partners with a strong knowledge and understanding of the local market. Delta and Alitalia, AIR fRANCE KLM operates the We strive to help our clients on regional and international basis biggest transatlantic joint venture with more than 250 to find an individually tailored solution in sourcing the best daily flights. The group’s frequent flyer program, flying talent. We offer our clients a personalized approach which is Blue is leader in Europe. based on the industry’s best practices and standards, and which enables us to deliver high quality services across CEE & CIS.

kCG Partners Law Firm Impact Language Solutions kft.

Managing Partner: dr. Eszter kamocsay-Berta Address: 1054 Budapest, Széchenyi rakpart 8. Phone: + 36 1 301 3130 Managing Director: Mr. Adiel Stephenson E-mail: [email protected] Address: 1132 Budapest, Visegrádi utca 9. Web: www.kcgpartners.com Phone: + 36 1 349 3920 E-mail: [email protected] Web: www.impact.hu KCG Partners is an independent Hungarian corporate law firm. It provides legal services to clients seeking local knowledge and Established in 1997, Impact Language Solutions provides global perspectives. KCG Partners comprises business-minded top-quality translation and interpreting services in all major lawyers with sector-specific expertise, creating value for clients by languages, as well as bespoke business English courses, to applying a problem-solving approach and delivering innovative clients in Hungary and abroad. We work with leading solutions. The firm has deep expertise in M&A, projects & energy, banks, law firms, listed companies and multinationals. Our real estate, tax, employment, litigation, privacy and forensics, specialist areas are financial, legal, medical, marketing and securitization, estate planning and capital markets. The firm also technical translation. We provide certified translations on cooperates with other independent law firms in the CEE region. request. Our firm delivers English translations at fully native speaker level at very short notice and at an excellent price. AmCham News 33

BUSINESS

Reed PORREAL Magyarország kft. Ingatlankezelési kft.

Senior Business Manager: Ms. Rita Cseke Managing Director: Mr. Zoltán Gelencsér Address: 1051 Budapest, Bajcsy-Zsilinszky út 12. Address: 1053 Budapest, Szép utca 2. Phone: + 36 1 883 3500 Phone: + 36 1 235 0297 E-mail: [email protected] E-mail: [email protected] Web: www.reedglobal.com Web: www.porreal.com

Sir Alec Reed opened the first REED office in 1960. PORREAL Hungary is the subsidiary of PORREAL REED now operates in Europe, the Middle East and facility Management GmbH. As a full-service provider Asia Pacific. REED has approximately 3,000 permanent in the real estate industry we offer services in the areas employees working across 180 locations worldwide. of property and facility management as well as real estate Reed Specialist Recruitment is a specialist provider consulting. PORREAL Group operates from locations of permanent, contract, temporary and outsourced in Austria, Hungary, Germany, Poland, Czech Republic recruitment solutions and HR consulting. and Romania.

START-UP Ryan Tax Services Magyarország kft. Angloville kft.

Principal and Practice Leader of Hungarian and CEE Operations: Mr. Balázs Békés Address: 1054 Budapest, Szabadság tér 7. Co-founder: Alex Horváth Phone: + 36 1 580 9200 Address: 2040 Budaörs, Templom tér 19. Web: www.ryan.com/hungary Phone: + 36 30 587 2157 E-mail: [email protected] Ryan, a leading global tax services firm with the largest Web: www.angloville.hu indirect and property tax practices in the United States and Canada, now provides a single source worldwide Angloville is the largest provider of language immersion indirect tax solution that is unmatched in the industry programs in Central Europe. We bring in English today. Hungarian companies gain access to an integrated native speakers from around the world to create a suite of VAT recovery, advisory, and compliance solutions; six-day language island right here in Hungary, where innovative tax technology offerings; and international participants receive 70+ hours of one-on-one training income tax and transfer pricing services that dramatically to overcome communication barriers and improve their improve tax performance and profitability. Ryan’s language skills. Hungarian operation is located in Budapest. VOICE american chamber of commerce in hungary

START-UP

Human Priority kft. IPS Management Services kft.

Managing Director: Mr. Gellért Pulay Managing Director: Mr. Gergely Lukácsy Address: 1123 Budapest, Avar utca 9. Address: 1113 Budapest, Bartók Béla út 79. Phone: + 36 1 950 2613 E-mail: [email protected] E-mail: [email protected] Phone: + 36 70 967 6328 Web: www.humanpriority.hu Web: www.ips-services.hu

The Human Priority Ltd. is a recruitment company that IPS Management Services Ltd. is an independent advisory mainly deals with the reserch and selection of hard-to- and project management company with unique know-how find experts and executives working on the edge of the and network in the fields of field of economy and information technology. We make • site selection and FDI in Hungary, efforts to help our clients with employer branding advice • corporate operation environment development, when seeking a larger number of experts in order to find • subsidies available in Hungary, and the appropriate ones together by all means. • funding opportunities available directly from the EU.

american chamber of commerce in hungary VVOICEOICEamerican chamber of commerce in hungary AmCham Events – Photo Coverage

AMCHAM ANNuAL GENERAL ASSEMBLY AND BOARD ELECTIONS 2014

Wednesday, December 03, 2014 Location: Budapest Marriott Hotel

AMCHAM WORkSHOP WITH GÁBOR GARAI HONORARY CONSuL GENERAL - ENTERING THE u.S. MARkET

Tuesday, December 02, 2014 Location: AmCham office AmCham News 3737 AmCham Events – Photo Coverage

AMCHAM-MARRIOTT CHARITY THANkSGIVING DINNER 2014

Tuesday, November 25, 2014 Location: Budapest Marriott Hotel

AMCHAM CAREER SCHOOL WITH NORBERT FOGARASI, GENERAL MANAGER OF MORGAN STANLEY HuNGARY

Tuesday, November 11, 2014 Location: AmCham office VVOICEOICE americanamerican chamber chamber of of commerce commerce in in hungary hungary AMCHAM AND ACF PLANT 25 TREES TOGETHER WITH ALCOA

Tuesday, October 28, 2014 Location: MEREK

AMCHAM CAREER SCHOOL WITH JuDIT POLGÁR, CHESS WORLD CHAMPION

Tuesday, October 21, 2014 Location: AmCham office

AMCHAM CAREER SCHOOL WITH MIkE MICHEL, CHIEF MARkETING OFFICER,TELENOR HuNGARY

Tuesday, October 14, 2014 Location: AmCham office

START YOuR BuSINESS!

Wednesday, October 8, 2014 Location: University of Óbuda AmChamxxxxx News 3939 HOW CAN YOu INCREASE CORPORATE COMPLIANCE AND TRANSPARENCY? - AMCHAM WORkSHOP ON WHISTLEBLOWING

Monday, September 29, 2014 Location: Budapest Marriott Hotel

Dr. Barna Berke, Secretary of State, Ministry of justice

Anna Myers, Expert Coordinator, Whistleblowing International Network

Tara M. Lee, Global Partner, DLA Piper

SIxTH AMCHAM ANNuAL SPORTS DAY AND SOCCER TOuRNAMENT

Saturday, September 20, 2014 Location: GLOBALL football Park & Sporthotel VOICE american chamber of commerce in hungary

PATRON PROFILE EY Hungary Ltd.

Company name: ey Field oF business: professional services When established in hungary: 1989 Workforce: 555 professionals in hungary, 190,000 worldwide biographiCal details oF intervieWee: istván havas, 54, Country managing partner length oF time With Company: 12 years, serving as Country managing partner since 2006 length oF time the Company has been an amCham member: 25 years length oF time an amCham patron: 2005 hOW WOulD YOu of the sophistication of business DESCrIBE ThE CurrEnT practices, or the role of technology BuSInESS EnVIrOnMEnT in business when we started, it In hungArY? seems now to me as if it was in I think it is a very vibrant and the stone age, even though it exciting environment, many was just 25 years ago. People in things are happening now. We business have changed a lot, too, are in the middle of significant in their skills, their priorities and shifts in the structure of several attitude. I experienced a complete industries, whether it is due to post economic cycle with prosperity crisis consolidation strategies, de- and crisis, including that of risking, government intervention, my own profession, significant or actions by regulators on a changes in the philosophy of national or supranational level. the role of state in the economy, We also experience a change in regulation, etc. In different times the taxation philosophy of the and places this would be enough government. Also, recently we see for several generations. I am many companies becoming more grateful that I have had the luck optimistic about their growth to work in this exciting time and potential but most of them are environment. of short-term thinking and WhAT ArE ThE still very much concerned about value erosion in benefit of lower ADDITIOnAl BEnEFITS their cost base. This is a favorable WhAT ArE ThE grEATEST costs. This is partially the result OF BEIng A PATrOn? environment for EY, because we ChAllEngES In DOIng of competition and post crisis To be a Patron gives more have many services addressing BuSInESS In hungArY modus operandi. However, on access to the benefits of these business matters. rIghT nOW? the long-term it is not going to be membership. But on top of that, It is hard to generalize. The sustainable. I think it indicates a higher hOW hAS DOIng BuSInESS greatest challenge may be different commitment to AmCham’s In hungArY ChAngED for each sector and may be WhY IS IT IMPOrTAnT efforts in enhancing business SInCE ThE COMPAnY WAS different for each company, not TO BElOng TO An for its members and to SET uP hErE? mentioning that many companies OrgAnIZATIOn SuCh AS improve the competitiveness EY (Ernst & Young) was among operating here are subject to AMChAM? of the economy of Hungary. the first professional services significant non-Hungarian AmCham is a very good forum Competitiveness of our country firms to start business in Hungary specific challenges. In Hungary to meet members of the business is important for us, vital for at the time of the meltdown of the post crisis disillusion, the community, talk to them, to get the next generations behind the communist regime in 1989. search for the right social- to understand the environment us, and EY contributes to this We have celebrated our 25th economic model creates a rapidly better, or even do business with goal. Our mission is to build a year anniversary this year. I also changing economic and legal them. In my own business we better working world through started my professional career at environment for business that have of course other platforms our work, and being a Patron that time, being one of the first represents an additional challenge. as well, to talk to a wide range member of AmCham is part of local employees of the large – then But it also creates opportunities. of business or political decision this ambition. Big 6 – accounting firms. Over makers, but for many companies this period business in Hungary WhAT OnE ThIng WOulD an organization such AmCham has changed dramatically in just YOu lIkE TO SEE ChAngED is an exceptional opportunity about every aspect of life, moving ABOVE All OThErS TO for these things. In addition, from a state planned economy to a IMPrOVE ThE BuSInESS AmCham does play a role in market based economy, including EnVIrOnMEnT? commenting, shaping or at least the social and legal framework I think we in many industries, learning about planned legislative around business. But even on a particularly in the services actions. Members have a unique micro level, when I think back industries, feel the negative impact chance to participate in this. AmChamxxxxx News 41

AWARD Bringing Boston to Budapest The winner of the 2014 Dr. Iván Völgyes Award – established in 2005 to recognize those individuals who have played an outstanding and exemplary role in developing Hungarian-American business relations – was the Hungarian Consul General for New England, Gábor Garai.

s you can probably tell being the father of modern lobbying in from my accent, I am Hungary; born in Hungary, and a holocaust from New England. But survivor, he moved to the United States in “A I was born in Hungary. 1956. After the fall of the iron curtain, he I left when I was 13, and soon after moved became instrumental in bringing numerous to Boston, and have lived there ever since,” U.S.-based businesses to Hungary including Garai told the annual assembly of AmCham General Electric, the Gallup Organization and on December 3 on accepting the award. “I Reader’s Digest. He lost his life in an airplane believe there is a lot of commonality between crash in june 2001. Boston and Budapest. I was even looking on my iPhone at the pictures of your ice storm in His activities include structuring and Eszter Szabo, GE’s corporate communications the last few days and the ice storm we had in establishing U.S. entities for Hungarian and public affairs regional leader for CEE Boston last spring; it looked pretty much like companies and introducing Hungarian and, until December, an AmCham board the same city to me!” businesses to a wide variety of U.S. resources.” member, knew him – she recalls meeting Garai’s Hungarian clients include Graphisoft, him in 1996 on her first day at GE. “He was Prior to receiving the award, Garai had met Maven Seven, Mediso, Remotaid, and the the highly influential national advisor of GE with young Hungarian entrepreneurs at an Technology Transfer Office of Semmelweis in Hungary, and I was the freshly appointed AmCham workshop, where he explained the University, among others. communications leader, Central Europe at GE challenges and opportunities the U.S. market Lighting […] After that I worked with Völgyes has to offers. He gave an overview of the U.S. for his own part, Garai says he sees echoes and others closely, making GE a multi- legal system, explaining his recommendations of New England in Hungary beyond just business investor. five years later I received a for structures for foreign companies with a their weather. “I am convinced that the phone call from the Office of the Minister of U.S. presence. He also talked about options for ecosystem, the entrepreneurial energy and Interior to tell me that Iván, who had left GE raising capital, underlining the importance of the new company creation going on in Boston by that time, was involved in a plane crash. making sure that any potential venture capital is something that could easily happen here,” […] He was an intercultural interpreter (as partner has experience – and a network – in he told the annual meeting. “Both cities he usually referred to himself), the designer the company’s specific industry area . have the same focus on education; both have and an implementer of the common growth great numbers of young people who are vision of global GE and Hungary, a truly high- It was a typical example of Garai’s ambitious and very creative; both cities have impact advisor of the company.” commitment to and enthusiastic engagement a very committed business community, as with Hungary. As one of the award nominees AmCham here illustrates. My job is to try to Gábor Garai is a partner and business lawyer for Garai wrote: “He does a lot to help further these connections and ecosystems, at foley & Lardner LLP, a 1,000 lawyer Hungarian firms extend their business in and try to create more of it here in Budapest. international firm, where he is chair of the North America, as a lawyer and many times I am very optimistic about what is happening firm’s private equity and venture capital practice, and co-chair of the life sciences also as an investor in Hungarian startups.” in Hungary, the businesses being created here team. founder of the Hungarian-American moving to the rest of the world, including the Chamber of Commerce of New England, he Another talked of the breadth and depth United States. I promise to do everything I has received the Hungarian Civilian Cross, of his involvement. “Ever since he assisted can, for as long as I can, to further this very the highest recognition to non-residents LogMeIn with its first U.S. venture financing, important objective.” awarded by the Hungarian president. In 2013, he was appointed honorary commercial he has been deeply involved in encouraging attaché for Hungary. He is a graduate of U.S. investments in Hungary and bringing The annual Dr. Iván Völgyes Award is Harvard College and Harvard Law School. Hungarian companies into the U.S. market. named for the man credited by many as AmCham staff VOICE american chamber of commerce in hungary ChieF exeCutiVe oFFiCer Irisz42 CEO’S NOTE LIPPAI- NAGY

[email protected] A Time for Evaluation Phone: +36 1 428-2080

ChieF oPerAting oFFiCer Dear Members, was also a time for evaluation – not only one, but 25 years – full of successes, great László By the time you read my note we will have memories and most importantly personal METZING celebrated Christmas and started 2015! dedication. AmCham is a well-known Nevertheless, as I am writing these lines brand name and I take pride in becoming we are still in preparation for the festive part of the organization, part of the team. [email protected] Season, the one I like the most. I very But then again, it is a huge responsibility. Phone: +36 1 428-2082 much enjoy the fact that Christmas falls Based on the legacy of the past and the eVents MAnAger on the darkest days at yearend, which trust of the current members we need to Anita invites us to make an internal journey. serve the purpose AmCham was founded ÁRVAI Each year I tend to think through all the for and which still prevails. This desire important things that happened during made us revisit the way we work and the past 12 months, and this December is define how we can best join forces to live no different. up to the expectations built on our rich [email protected] heritage and determined by current needs. Phone: +36 1 428-2086

As a trade director I used to have MeMBershiP MAnAger extremely busy Decembers, but 2013 was Soon we will share with you our 2015 Ildikó different. I enjoyed a break after 22 years policy agenda, determining the areas TAkÁCS- of dedicated work and I had the luxury where we wish to make AmCham’s voice BERkA to prepare for Christmas, as I never had heard while making tangible impact. time before. I made personalized gifts for Our entire annual plan will focus on my family and friends and could meet supporting our agreed objectives. [email protected] people without being in a rush. Phone: +36 1 428-2084 I am personally very grateful to Willy Benkő MArketing And CoMMuniCAtions The week before Christmas I was arriving and the ‘old’ board for giving me their trust MAnAger for lunch in my favorite restaurant with and support from the first moment on. It is Zsófia a friend, when I got a call from judit, good to know that although Willy and other JUHÁSZ who was searching for the new AmCham members are leaving the board, AmCham CEO and asked if I would be interested in can always count on their continued support. running for the position. At that moment At the same time, we also welcome ferenc [email protected] I couldn’t yet foresee all that 2014 would Pongrácz as new president together with Phone: +36 1 428-2085 offer me, but now, making my traditional SVP Andrea jádi Németh and five new board yearend evaluation, I can say it was one of members as a result of serious competition; exeCutiVe AssistAnt my best years. clear evidence of engaged members, and the And FinAnCe MAnAger great momentum AmCham has! Ildikó BRYJÁk joining AmCham in the Anniversary year was a special opportunity for me. It I wish you all a successful and great 2015!

[email protected] Phone: +36 1 428-2080

PoliCy oFFiCer Judit SZILÁGYI

[email protected] Phone: +36 1 266-9880/332

ProjeCt CoordinAtor József GÁL

[email protected] Phone: ++36 1 428-2089 The AmCham Board and Staff members would like to express their appreciation to Erika Bosnyák, who has retired as of mid-December. Erika worked for AmCham for close to 25 years. AMChAM oFFiCe ContACt inFo Besides being the Financial Manager she was the Secretary of the AmCham Foundation and in h-1051 budapest, Szent istván tér 11. both capacities worked very hard and conscientiously. Erika, enjoy this new chapter in your life! Phone: +36 1 266 9880 fax: +36 1 266 9888 email: [email protected] website: www.amcham.hu JOIN NOW! www.flyingblue.com THE PERFECT PLACE FOR THE PERFECT EVENT

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