A Change of Color in Business
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ESSAY: Why a multinational company is motivated to helping to SPECIAL REPORT conserve the ecology of an island near Mohács. 〉PAGE 23 EVEN NON-POL- VOL. 18, NUMBER 11 I JUNE 4, 2010 – JUNE 17, 2010 LUTERS ARE PAYING MORE ATTENTION TO Budapest THE ENVIROMENT. 36% SEE PAGE 18 FOR A Business of small shops have no change for LIST OF SUSTAINA- VOL. 18, NUMBER 01 I JAN 15, 2010 – JAN 28, 2010 Journal HUF 20,000I bills. 〉PAGE 4 BILITY REPORTING BBJ HUF 1250 | €10 | $15 | £7.5 HUNGARY’S PRACTICAL BUSINESS BI-WEEKLY SINCE 1992 | WWW.BBJ.HU COMPANIES A CHANGE OF COLOR IN BUSINESS Environmental consciousness is still a key issue for many businesses in the crisis – as it also happens to make business sense. Shopping chains are getting rid of plastic bags, telepresence is replacing travel and banks are going electronic. 〉PAGES 10-19 BUSINESS BUSINESS BUSINESS/TRENDS Show me the malls Foreigners flee flats Flooding and the climate Before the crisis, it was thought that 2010 would Hungarian residential property has been in May was one of the worst for rain in decades in bring at least five new retail centers to the mar- demand among small investors from abroad Hungary: flooding caused extensive damages. ket. In fact, contruction has only started on one. in the past decade or so. Now, many are Streams washed away parts of motorways, fields But this might turn out to be a blessing in drawing back to consolidate their property at were saturated and people evacuated. There was disguise, as property people are now ques- home, putting further supply out on the mar- a rush to donate to a dedicated Red Cross hotline. tioning whether there was enough demand ket. Russian investors seem to be almost the But many wonder: is this a sign of climate change? in the first place. 〉PAGE 8 only ones unaffected. 〉PAGE 9 〉RED CROSS: PAGE 4, CLIMATE CHANGE: PAGES 6-7 LIFE POLITICS 10011 5 webshops The first few days worth a visit of the new Cabinet Niche shopping has found a new channel in The buck stops here. Viktor Orbán might not himself use Hungary: the web. Whether you are look- Harry S. Truman’s famous words, but it is the truth none- ing for a choice Villány wine, groovy vin- theless for the new government, which has a two-thirds tage clothes or racy underwear, there are majority. So far, they have used this power for the Hungar- 771216 730005 small and attractive websites to suit. Some ian minority abroad. Meanwhile, its plans for the economy 9 are even in English. 〉PAGE 20 remain somewhat sketchy. 〉PAGE 5, EDITORIAL: PAGE 23 WWW.BBJ.HU 2 NEWS Budapest Business Journal | June – June The National Bank of Hungary’s Monetary Council kept the base rate on hold at 5.25% at a meeting on Monday, in line with market expectations. The decision marked the first pause in a campaign of rate cuts dating back to last July that has reduced the NEWS in brief MNB’s key rate by a combined 425 basis points to a historical low. TOURISM SECTOR TO BRING NEW JOBS One-third of the one million jobs Hungary’s new government wants to see created over the next ten years could be in the tourism industry, the new economy minister György Matolcsy said. The industry could provide new jobs, especially for untrained Hungarians, in addition to the construction and farming sectors, as well as family businesses. Photo: Magyar Turizmus Zrt Turizmus Photo: Magyar some HUF 7,000 billion of the German president resigns ECONOMY amount has not yet been called POLITICS German President Horst Köhler by Hungary and given the cur- NUMBERS unexpectedly resigned on May Unemployment crisis rent state of the grant system, Trianon memorial day approved 31, following comments he made Hungary’s average unemployment there is a high possibility that a Parliament voted to make June 4, about military action abroad; it rate was 11.8% in February–April, significant portion will never go in the news the date of the signing of the Treaty is a move that could cause con- unchanged from January–March and toward upgrading businesses. of Trianon in 1920, a National Day servative Chancellor Angela up from 9.9% a year earlier, the Cen- of Unity. Th e bill was passed by Merkel a headache. The shock tral Statistical Offi ce (KSH) said. Th e Venture capital investments fall an overwhelming majority of 302 resignation comes at a time rate leveled out aft er rising in the last Private equity and venture capi- votes to 55, with the governing when Merkel is already battling quarter of 2009. On a positive note, tal firms invested in 12 Hungar- Fidesz and right-wing opposition a Eurozone debt crisis, sinking the number of employed rose for the ian companies in 2009, only half Jobbik voting in favor, nearly all popularity and an increasingly fi rst time since Q2 last year. Th e cur- of the number recorded in 2008, 700 the MPs of the former governing awkward coalition partner. The rent unemployment level is the high- according to leading global pri- the number of large- socialist party MSzP voting against German president is responsible est since Q1 1993. vate equity firm Riverside. The scale and “priority” the bill, and the liberal-green LMP for signing bills into law, but the company noted that only one- projects Hungary’s new abstaining. As a result of the Tri- role is largely ceremonial. Electricity prices to drop 5% tenth of Hungarian medium- government would anon Treaty, Hungary lost two- Household electricity prices are sized companies are suitable review to determine thirds of its territory, leaving 3.3 G8 push for goals on poverty set to fall around 5% from July 1, for private capital investments. whether “the investments million ethnic Hungarians (or 31% Th e Group of Eight industrial- the daily Magyar Nemzet reported, Riverside said that the decline are really necessary in of the total Hungarian population) ized nations plan to invest in bet- citing market sources. Power sup- in investments was because few outside its borders. ter health for mothers and young pliers with “universal service pro- Hungarian companies meet the country’s current children in poor nations to meet vider” status — who charge clients stringent investor requirements, position.” faltering goals for slashing world a fi xed price for electricity for a although Hungarian managers WORLD poverty by 2015, a draft text for certain period of time, thus miti- could make a difference in this a G8 summit said. Th e draft also gating exposure to market forces area by making business indica- Gulf Coast oil may leak until Aug said G8 nations would seek a new — are expected to lower prices by tors more transparent. Offi cials of the US government legal framework for a UN-led deal 4%–6% from July 1, the paper said. and oil fi rm BP are warning that to combat climate change aft er a Suppliers asked by the daily would Forint-borrowing rises 45% the blown-out oil well causing an UN summit in Copenhagen in not disclose any concrete fi g- Households took out HUF 23.7 Hungarians satisfied with environmental disaster on the Gulf December fell short of a treaty. ures pending a decision on price billion of new forint-based con- their local environment, Coast may not stop leaking un- changes by the Hungarian Energy sumer loans in April, up from til August, as the company begins Offi ce (MEH), but the Hungarian HUF 20.8 billion in March and compared to the preparations on a new attempt to unit of E.ON confi rmed it would HUF 14.6 billion 12 months ear- list-topping Dutch at cap it. Th e disaster is already the lower its prices from July. lier. The average monthly amount 85%, according to an largest oil spill in US history and of new contracts was HUF 16.6 international survey of offi cials are calling it the country’s EU grants underutilized billion during the past one-year 23 countries conducted biggest environmental catastrophe. Tender consultant firm MAPI period. Meanwhile, EUR-based by Ipsos. Job prospects, In the wake of the failure to plug the has released a 400-page study borrowing declined, with house- clean streets, the level well with a tricky “top kill” opera- detailing the utilization of sup- holds taking out the equivalent tion, BP CEO Tony Hayward said port grants in Hungary along of just HUF 3.9 billion in con- of crime and public the Gulf of Mexico leak may not be with a set of proposals aimed at sumer loans in April, down from transport were major stopped for another two months. improving the situation. For the HUF 5.9 billion in March and factors in people’s Th e Gulf spill has surpassed the 2007–2013 EU budgetary period, HUF 12.7 billion a year earlier. satisfaction with their Exxon Valdez disaster off the Alas- Hungary has been earmarked The monthly average in the 12 surroundings. kan coast in 1989 as the worst US HUF 8,000 billion for various months to the end of the period oil spill, with an estimated 12,000 developments. According to MAPI, was HUF 10 billion. to 19,000 barrels leaking per day. WWW.BBJ.HU Budapest Business Journal | June – June NEWS 3 Two Hungarian companies have made it onto German business daily Handelsblatt’s recently published annual list of top 500 European companies. Oil and gas group MOL Nyrt slipped three places, ranking as Europe’s 129th largest company by revenue last COMPANY news year, while Magyar Telekom moved up to 475th from 477th.