american chamber of commerce in hungary

VOICEVol I. issue 03, march 2011 The icon has LANDED American Airlines direct flights daily from Budapest to JFK

MORE INSIDE: AmCham signs ‘milestone’ agreement with government Annual Regional Tax Conference returns to Budapest

MORE INSIDE:

János Martonyi interview New AmCham president 3 Contents

4 introduction 15 ANALYSIS 28 AMCHAM NEWS Dear Members and Friends… Labor market roundup CEO’s note

PEOPLE IN THE NEWS 29 AmCham news 5 16-18 COVER STORY Fighting for a fairer tax system ‘Milestone’ agreement The icon has landed: with government 6 PEOPLE IN THE NEWS American Airlines Taxing issues 30 AmCham news 19 COVER STORY How to befriend a glossary 7 people IN THE NEWS The tourism factor Building dialogue 31 AmCham news Coca-Cola HBC Hungary Ltd 20-21 focus 8 people IN THE NEWS Growing optimism Taxing soultions 32-33 AmCham news Announcements need actions 9 PEOPLE IN THE NEWS 22 FOCUS From the horse’s mouth Lower, simpler, more 34 AmCham news Getting the most out transparent 10 -11 ANALYSIS of the EU presidency Business news roundup 24 LIFESTYLE 35-37 AmCham news 12-13 analisys Time Out Budapest – New members on board Hungary tightening its belt restaurants 38-41 AmCham news 14 ANALYSIS 25 lifestyle Photo coverage Local and world events Time Out Budapest – impacting stocks 42 AmCham news entertainment A working society for 15 ANALYSIS all abilities Local and world events 26-27 lifestyle impacting stocks András Török’s Budapest

Voice is published on behalf of the American Chamber of Commerce by Absolut Media Kft, Alsó Törökvész út 9, 1022 Budapest, Hungary. Editor-in-chief: ROBIN MARSHALL ([email protected])• Contributors: GABRIELLA LOVAS, ROBIN MARSHALL, ANDRÁS TÖRÖK, Time Out Budapest Photography: Péter Kőhalmi • Design: ABSOLUT DESIGN STÚDIÓ ([email protected]) • Art director: Tamás Tárczy • CEO: TAMÁS BOTKA Advertising: ABSOLUT MEDIA KFT ([email protected]) Sales and Marketing: Viola Farkas ([email protected]) Circulation: Vanda Taletovics-Vedres • Subscriptions: Éva Bércesi ([email protected]) Printing: Absolut Print Kft • Websites: www.amedia.hu, www.bbj.hu

For AmCham Content: ZSÓFIA JUHÁSZ ([email protected] + 36 1 266-9880/360) Advertising: CSILLA PÁL ([email protected] +36 1 266-9880/319) VOICE american chamber of commerce in hungary Introduction People in the news 5 Dear Members and Friends, PEOPLE

s I wrote previously, my Committee launched the Foreign Language Fighting for a goal is to focus AmCham’s Learning Initiative with the support of the advocacy potential on restarting Ministry of National Resources. The message dialogue between government that competency in foreign languages is a vital A and business. The past two element in improving Hungary’s competiveness months have proven that is spread by volunteer Language Ambassadors fairer tax system perseverance does pay off in the long-term. We from our member companies. We have 70 have passed a milestone together, an event I ambassadors to date and have reached close to hope we all take pride in: the signing ceremony 600 high school students. (Read about the CEO’s of a strategic cooperation agreement between experiences as an ambassador on page 28.) For almost 10 years, Botond Rencz has been AmCham Hungary’s point man on tax: the Ministry of Public Administration and Justice and AmCham in late February. Let me Finally, let me mention the exemplary work he has chaired its tax council, overseen the publication of position briefs and been thank the Regulatory Committee for its efforts quickly as possible. Minister Matolcsy invited of our Electronic Manufacturers’ Committee, in drafting and finalizing the contract. It will the IC to cooperate with the government on which was invited by the Ministry of Foreign involved with the annual regional tax conference. And yet there was an element of provide a framework for our chamber to work specific issues, e.g. establishing a joint working Affairs together with the Hungarian Association closely together with the ministry to ensure new group on taxation. of IT Companies and the Hungarian happenstance in his getting into the field in the first place. regulations enhance investor trust and Hungary’s Association of Electronic Companies to competitiveness (for more see page 29). This work cannot be done without our contribute to an EU report on the electronics members; only with your expert knowledge and industry in Europe. The ElMan Committee enthusiastic taxpayers. Interestingly, Rencz He acknowledges the Hungarian AmCham also serves as the Secretariat of continued dedication will the voice of business published a position brief in 2010, which believes that may have something to do with the government has a lot on its plate (making the Investors’ Council (IC), coordinating be heard. As you know, this professional work formed the basis of the detailed report sent to way the change of system was managed here. its new taxation system work, maintaining dialogue between the government and the takes place in our committees and working the ministry. The country was among the first to embrace fiscal balances, and, of course, the EU investor community. On March 1, IC members groups. I strongly encourage all members to (companies with investments of $100 million contact the AmCham office to find the relevant We will continue and broaden the spectrum democracy, and did so with no bloodshed. Seen presidency), but says none of this had been and above) held a plenary session with György platform for your business! of these advocacy efforts, with invited from a certain light, the transformation was an issue in organizing the conference. “It Matolcsy, Minister of National Economy, who ministry speakers and new projects, for uncommonly smooth, and because there was no was a little harder to get access, to be fair, presented the Széll Kálmán Plan, a 26-point Other committees have achieved significant which I once again thank all our committee sudden brake with what went before, that stored but still possible. There is no doubt that the package to decrease Hungary’s indebtedness as success in Q1. The Labor and Education members and supporters! up trouble. Hungary, for example, does less well government is still engaged in the process.” than its Visegrad peers (Czech Republic, Poland and Slovakia) on corruption measurements. And what was he looking forward to most? “I AmCham Member’s Board And for that, Rencz says, Hungarian politicians was very interested to see, two or three years must take some of the blame. into the economic difficulties, how different President First Vice President Second Vice President Secretary Treasurer István David Steve Ferenc Havas G. Young Corwell Pongrácz  How few economists predicted Ernst & Young Amrop AES Hungary IBM Hungary the crisis? I think a similarly small 1136 Kohlmann 3580 1117 Budapest, Budapest 1023 Tiszaújváros, Budapest, number know what will happen in the Váci út 20. Rómer Flóris Verebély Neumann u. 57. L. u. 2. János u. 1. next three or four years!” [email protected] [email protected] [email protected] [email protected] Phone: +36 1 451-8701 Phone: +36 1 391-0970 Phone: +36 49 547-108 Phone: +36 1 382-5924 Fax: +36 1 391-0951 Fax: +36 49 341-756 Fax: +36 1 382-5501 friend of mine called me and “I often feel that society wonders why it should countries and business sectors see the

Board Members at large asked whether I was interested pay taxes for the political circles to spend as challenges ahead from an Eastern European William John László Márk in dealing with tax,” Rencz they see fit. How do people see their tax money perspective. I still see a lot of activity, Benkő Cantwell Drajkó Hetényi recalls. “At the time I was spent, how much corruption was there? You companies coming to this part of the world Hárskúti DRAMATRIX “A Megújuló Ener- Tréning Microsoft Flextronics involved with marketing, but I always thought don’t have to be a rocket scientist to see there looking for new opportunities.” gia Központ Kft. Központ Kft. Hungary International 8442 Hárskút, Budapest 1114 1031 Budapest, 1183 Buda- it was important that taxation was properly were clearly issues in this country.” Kossuth Lajos Szabolcska Mihály Graphisoft pest, Hangár utca 25. u. 3. I. em. 1. Park 3. utca 5-37 balanced. So it was a little bit of luck, but there His regional experience has taught him [email protected] [email protected] [email protected] [email protected] was also something inside me that wanted to The basic topics covered by the conferences have “there is no one right way” to address Phone: +36 1 225 7350 Phone: +36 1 365-1680 Phone: +36 1 437 2800 Phone: +36 30 677 5029 make the system fairer.” not changed that much over the years (how taxation or even wider economic reform Fax: +36 1 365-1681 is tax policy developed? how does it impact issues. “Look at pension reform, for Board Members at large chief executive officer Dr. Andrea Frank Eszter Péter So Rencz, now 41, married and with an business?) because they are still valid, but Rencz example. In France they want to put the Jádi Klausz III. Szabó Dávid eight-year-old daughter, joined Ernst & says there was be a notable departure this year, statutory retirement age up by two years Németh bpv Jádi Németh A.T. GE AmCham Young in 1993, leaving for Arthur Andersen with the focus being on various business sectors, and there are huge protests. In Hungary Ügyvédi Iroda Kearney Kft. 1138 Bp., 1051 in 1998 before returning to EY in 2001. He is rather than the types of tax themselves. they put them up by three years and there 1051 Budapest, 1054 Budapest, Duna Tower, Budapest, Vörösmarty Kálmán Népfürdő utca Szent István the CSE central cluster tax lead and the head is a very different response. You need to tér 4. Imre u. 1. 22. B-C. épület tér 11. of tax for Hungary. Thus there were panels dealing with know the history of a country before you [email protected] [email protected] [email protected] [email protected] Phone: +36 1 429-4000 Phone: +36 1 475-1442 Phone: +36 1 237-6811 Phone: +36 1 266-9880 tax issues in the finance sector, can make those kind of judgement calls.” Fax: +36 1 429-4001 Fax: +36 1 475-1111 Fax: +36 1 266-9888 That regional role puts him in a good position manufacturing and production (the latter And then there is the unexpected. “How Ex officio members to evaluate where Hungary lies in relation to of which Rencz moderated), and the few economists predicted the crisis? I think Robert Peaslee, Gusztáv Bienerth, Les Nemethy, Péter A. Hegedűs, András Sugár , Charles A. Huebner, Péter Kraft, László Czirják, Robert C. Knuepfer Jr., Edward J. Bush Jr., Theodore S. Boone, Steve Bina, Michael J. Shade its peers when it comes to tax. Hungarians service and trade sector, although there a similarly small number know what will do not enjoy a reputation as being timely and was still be a tax policy panel. happen in the next three or four years!” VOICE american chamber of commerce in hungary People in the news 7

PEOPLE PEOPLE Taxing issues Building dialogue Tax law is a fairly specialized field. To find someone like Will Morris, who has For Farkas Bársony, who has been involved with the AmCham-organized regional worked in private and public sectors, and who knows both the U.S. and European tax conference series since its inception, the idea has never been to build a platform tax systems from firsthand experience, is, therefore, somewhat unusual. It also for criticizing governments, but rather for creating another opportunity to exchange made him an excellent candidate to speak at the sixth Regional Tax Conference, views among stakeholders. held this March in Budapest.  The focus has always been he central insights are the same in The benefits to the public sector are on dialogue, and especially the U.S. and Europe,” says Morris, obvious; they pick up people with private on creating an atmosphere who is the Senior International practice experience, knowledge and where business and “T Tax Counsel and Director, enthusiasm. But what could Morris take government representatives European Tax Policy in GE’s corporate tax back to the private sector once he left feel able to speak openly. department. “In both cases, tax policy is made government? by a relatively small group of people. It is generally accepted that it should really be about “The most useful thing, as long you forward new tax measures. Bársony, however, urges others not to raising revenue, not about delivering some remember it, is the knowledge of what it rush to judgment. social outcome, although it can, and often is, is like to sit on the other side of the table.” used to that end,” he explains. Many people lobbying government are “We at GE always try to understand the government’s position, we have very negative, he says. “What you want is never been too pushy because we understand the responsibility they “The principal difference between the U.S. someone who says ‘I have a problem but carry, especially in crisis times when governments may need to take and Europe is that you are dealing with a urgent actions. Rather than criticizing, we should put the emphasis on split executive decision-making process in sharing our views, our willingness to help where needed.” And he cites the States.” That means where you spend  There is very little ‘give us as positive news the willingness of the Hungarian government to change your time lobbying and consulting differs this or that’, a lot of it is trying some elements of its bank tax following representations from banking depending on what side of the Atlantic you to collectively build sustainable associations and other lobbying efforts. find yourself. Morris, a Brit who served f I go back to ’05 when we started putting together the a number of years in the U.S. Treasury business environments. original conference, it was because we wanted to talk with Bársony might be accused of collecting titles. He is one of the managing Department, explains: “I was at the Treasury the Central European governments in particular about directors of GE Hungary Kft, is a global tax director for GE Energy’s during the Clinton years, and at the other end where he was Associate International Tax so do you, and here is how we can solve “I tax, because we wanted to avoid policies that would harm Industrial Solutions division (it provides a wide assortment of integrated of Pennsylvania Avenue we had a Republican- Counsel in the Office of Tax Policy. it.’ That approach is much more likely to inward investment and foster those that would boost it. That has not equipment and systems to ensure safe and reliable power delivery), and is run Congress. What we sent to Capitol Hill He says he rather fell into his field of law. mean you are at least listened to. really changed, the focus has always been on dialogue, and especially the tax director for GE Hungary. “After 15 successful years with GE, you as proposed tax policy went through several “When I did my training for articles in the UK, on creating an atmosphere where business and government are rightly expected to take on more leadership roles. I am happy to do layers of filters, let us say, before it became you had to do compulsory rotations, two in “You have to understand where the representatives feel able to speak openly.” it and managed to build great support teams behind. I am still based in law. In European countries the minister of corporate and one in property. Property didn’t government lawyers come from, remember Budapest, but travel a lot,” he says. finance proposes legislation and there is much interest me at all, but corporate seemed very that they have politicians to keep happy It seems to have worked, though perversely one of the reasons it has less change. What it means in practice is hard working, with 16-18 hour days and lots of and budgets to meet. It is not rocket attracted relatively strong support from governments across the “As a lawyer I always leaned toward the financial side,” he explains. that in the U.S. you work a lot more with the weekends. When I got to the tax department, science, just common human decency.” region might simply be because the conference series is there. “As soon as I had graduated as a doctor of law, I studied for an MBA in legislators. In Europe you tend to work almost they seemed much more civilized and economics. I never liked the public administration or family law side of exclusively with the ministry of finance.” somewhat more human. So I decided, rather Morris says his GE role involves some “I know from the after conference meals that many government things, and tax at the time struck me as having importance. However, capriciously, to become a tax lawyer.” direct lobbying of government, but is representatives will say it has been good to have the chance to the main driver was that I was invited by the University of Pécs to be a Morris, now 49, began his career where he mostly about trying to shape future tax meet and share ideas. Knowing others are attending creates a lecturer and they asked me to help teach tax law. I even got my LL.M. is currently based for GE, in London. He But that didn’t mean he always enjoyed his policy. “There is very little ‘give us this certain pressure to also be there. It gives people a good reason (Master of Laws) in International Taxation from Vienna.” qualified as a solicitor at the well known law work; Morris says it was in his mid-30s, during or that’, a lot of it is trying to collectively to get out of their little offices and meet one another. It is really firm of Slaughter and May in 1988, and a year his time in public service in the U.S. that he build sustainable business environments.” interesting to see them listening to each other. When they are The 44 year old (he will turn 45 this September) is married and later gained an LL.M. (Master of Laws) from finally felt he was making a difference. “You are He also chairs the European Tax Policy working at home, they are more focused on their own interests, of a father of three. He has worked for GE for 15 years, having been the University of Virginia, where he met his not making law on your own, but you are part Forum, a registered UK charity that course. But when they come to conferences like this they are more hired from Arthur Andersen, and says he has never thought of wife Michelle, who was also studying law. After of a process that makes an impact. You get to sponsors independent academic research understanding of each other and the need to create a competitive switching companies again. a brief spell of further practice in London, in ask the question ‘what is the right thing to do?’ into business tax issues, the Confederation region which benefits us all.” late 1990 he moved to Washington, D.C. After Not ‘what is the best thing for my client?’ or of British Industry Tax Committee, and “I still believe that GE’s tax organization is the best tax organization five years of private practice, he joined the IRS, ‘what is the easiest thing to do?’” His time at the AmCham EU’s Common Consolidated There has been a perception, in Hungary at least, that the current in the world. There are some very nice people at GE, and it is good to and in January 1997 moved to the Treasury, treasury was, he says, “fabulous”. Corporate Tax Base (CCCTB) Task Force. government hasn’t always consulted business before bringing be among people like them.” VOICE american chamber of commerce in hungary People in the news 9

PEOPLE PEOPLE Growing optimism From the horse’s mouth With so much doom and gloom out there, it is refreshing to meet someone like self- Imagine a school curriculum that described “tax geek” Jen Zheng, who says she is positive about the prospects for growth in gives you first hand experience of the region, despite the challenging environment. how to market a music festival to the world, gives you insights into how to create advertising icons, or tells BIO you how to switch a local brand to a Jen Zheng is a U.S. tax attorney working in the multi-national brand. It is the kind EMEA Country Tax Team at Citi in London. of exposure a young marketing exec She supports Citi and its affiliates on tax matters throughout Ireland, Central Europe and Africa. would give their right arm for, but Prior to joining Citi in 2010, Zheng worked in it is far from a pipedream. It is the New York as an international tax counsel for Merrill Lynch for four years, and also practiced AmCham Marketing School. law with Shearman & Sterling in the United States and Germany. Her specialties include corporate tax planning, M&A advisory, and cross-border transactions. She received her he idea is to show real examples and best practice Juris Doctor degree from Cornell Law School in  They normally start at of marketing and communications activity in 6:30pm and are due to end at 8pm, the Hungarian market,” says András R. Nagy, but I can’t remember a single “T the host and moderator of the series. The 37 year presentation that actually did old is well placed to fill that seat; he is a founding partner end then. When we had András heng, the London-based senior East contributing to political instability, she Europe have become much more integrated and MD of the award-winning Próbakő Communications Kallós... who talked about the tax manager for Citigroup’s sees more to cheer than not. because of the euro.” And she believes that (a member of the Worldcom PR Group), lectures at the rebranding of Pannon to Telenor, EMEA region, was in Budapest “Europe is stable, and I’m very confident would remain the case even if Europe saw Budapest College of Communications and Business (BCCB), we ended at 9pm. Z as a panelist for the sixth regional that things are slowly recovering. I am positive a return to individual national currencies, and produces and hosts a show on radiocafé 98.6 called tax conference, and said the bank sees hopeful there is not going to be a double dip recession. though it is a scenario she doesn’t think Reklámvilág (Advertising World). including Emese, of Budapest Bank, and Captain Szoke who was signs for its business in Hungary, the recent That feeling of optimism comes from robust particularly likely. “It is one of the strongest the icon for UPC,” recalls Nagy. bank tax not withstanding. economic growth in Asia and the gradual return currencies in the world. I can’t think of any The concept arose from a series of conversations R. Nagy had, “We have a commitment to stay and contrib- of consumer confidence in the U.S. Unemploy- more important, aside from the U.S. dollar not long after Próbakő joined the chamber, with AmCham’s Some sessions are like formal presentations, while others are ute to the economic growth of the country,” she ment is coming down in the United States, other and the Japanese yen.” Chief Operating Officer and committee coordinator László closer to relaxed chats. A particular favorite of the moderator’s insists. “I am very optimistic. We definitely see regions are going to follow.” With a background in emerging economies, Metzing and Marketing and Communications Manager Zsófia fell into that latter category. “One of the best conversations was more growth going forward.” Zheng even sees hope for Ireland, one of the she thinks recovery in the States and growth Juhász, and follows the similarly successful Career School. with Károly Gerendai, the owner of the Sziget festival company. One area where Hungary can really countries she has special responsibility for. “Ire- in Asia, especially China and India, will be the He told us lots of interesting things about the wmusic festival develop, she believes, is in making more of land has basically been in crisis for the past year, engines that pull the rest of the world out of Now entering its second year, run with the support of the business, how to build a brand here and internationally, how they what is already a good general tax environ- year and a half, but the government is trying to recession. What is needed, she says partly in jest, Hungarian Advertising Association, and held in AmCham’s develop different messages for different countries.” ment for establishing holding companies. do something about that. In many ways, it will is “more stability and less crisis taxes”. boardroom, the format has proved popular. “The target audience “The government can do more in terms just mean the economy will be smaller in size, Zheng, who is in her late 30s, accepts that is primarily AmCham members interested in marketing. In And the audience seems to have responded to access to such top of promoting its friendly environment. In and it will obviously take time to recover. But becoming a tax manager isn’t the first choice the first semester, those attending were mainly from the client marketeers. “They seemed to me from the moderator’s chair to many ways Hungary has been overlooked our operations in Ireland have not shrunken – of career on any child’s list of what they want side, rather than agencies or other marketing service providers. be very active and really interested in these topics. They normally by multinationals. That is changing now as and we are seeing profits in Ireland.” to be when they grow up, but says in a funny The events are also promoted on the website of the Hungarian start at 6:30pm and are due to end at 8pm, but I can’t remember they realize the tax regime is friendly. What Even on the euro, and what some have way her upbringing led her into the field. Advertising Association, and we usually have 20-25 people a single presentation that actually did end then. When we had we need is to push for tax predictability. called the nightmare scenario that it might “I grew up in China, and like any social- there, which is as much as the room can comfortably take.” András Kallós, the marketing communication director who Hungary has one of the lowest corporate unravel if countries like Portugal and espe- ist country the background for taxes wasn’t The first semester focused on highlighting good examples of promoting talked about the rebranding of Pannon to Telenor, we ended at income tax rates, and plans for a 10% cor- cially Spain fall into the same trouble that hit there. I was educated in the United States brands in the Hungarian market, and not just local brands. Notable guest 9pm. I hope there will be the same level of interest this semester.” porate tax rate. If that does happen it really Greece and Ireland, Zheng seems relatively and when I went to law school I thought tax speakers included Gábor Zab, the general manager of Red Bull Hungary, makes Hungary very attractive.” sanguine. “I have mixed feelings about the law was a very interesting field, so complex. and Hannes Wirnsberger, the managing director of advertising agency And with subjects such as how consumers react to useful advertising, While she admits the bank tax is a nega- euro to be honest. As a consumer I like it, not Because of that challenge, I was attracted to it. DDB, who spoke about current trends in marketing communications. they should, but R. Nagy already has his eye on one presentation in tive point (“The bank tax here is the highest having to deal with all those currencies and I found it very interesting to be dealing with particular. “I’m from the PR sector, so I’d pick Ervin Szűcs who leads in Europe, and it is important to try and the exchange rates, but I do understand that tax law from different jurisdictions, to recon- “Alex Szénássy, the managing director of the Laboratory Group, a the Hungarian office of Weber Shandwick, one of the best networks limit the burden,”) and has some concerns it can give countries difficulties in managing cile their differences and identify the common small but very effective advertising agency, talked about how they in the world, about how PR can be used for brand building. I’m really over the upheavals in Africa and the Middle their fiscal policies. But the economies of ground. I became a tax geek!” created some of the best loved recent Hungarian advertising icons looking forward to that.” VOICE american chamber of commerce in hungary News & Analysis 11

US-based contract electronics maker National Instruments (NI), a US-based Rosenberger Hungary, the Hungarian Jabil is to hire 600-800 new staff at company that makes automated test unit of German electronics company Business news its Hungarian plant in Tiszaújváros, equipment and virtual instrumentation Rosenberger, has completed a €3.5 million east Hungary. Jabil said it plans to add software, has unveiled a new HUF 500 million expansion of its plant and warehouse It isn’t necessarily all doom shop-floor workers, engineers and production line at its plant in Debrecen, east in Jászárokszállás central Hungary. The roundup and gloom out there… technology professionals to its current Hungary, and is also establishing a European company, which manufactures cables headcount of more than 8,000. Backed system engineer center in Budapest. Managing and connectors for motor vehicle and by a HUF 380 million EU grant, Jabil director László Ábrahám said the new line is telecommunications companies, doubled last September announced a HUF 1.8 the company’s seventh in Hungary and will be both production and warehouse capacity at American “affordable luxury” lingerie billion expansion program. followed by another in a similar investment its site as a result of the investment. brand Baci Lingerie will open its first this spring. NI Hungary Kft employs 1,100 store in Hungary in the autumn and plans Automotive supplier J.H. Ziegler Pannon staff in Debrecen. Solar Energy System Kft has broken a further 60 in the coming five years, the is investing €7 million to expand ground on a project to build a major solar company told state news agency MTI. production at its plant in Bábolna, west Agriculture machinery maker Robix panel manufacturing plant in Komló, south The move will mark Baci’s entry onto the Hungary, business daily Napi Gazdaság Hungary Kft is set to mount a more than Hungary. The company is spending HUF 1 Eastern European market. reports. The company, which makes HUF 2 billion investment. Robix, which billion in the first phase to build a 3,000 sqm upholstery and wadding materials, will exports nearly all it produces, will build a new production plant and service facilities on a Bericap Capital, one of the world’s largest install a new production line by fall this production plant and upgrade technology 20,000 sqm site it bought jointly with the manufacturers of beverage container year and run it up to full capacity in three in a greenfield investment in Zirc, west local government. The investment, which caps will spend HUF 1.5 billion at its years tripling production. It will also be Hungary. The company employs about 80 will initially create 100 jobs, is scheduled for Székesfehérvár plant in west Hungary this buying a new site for the investment. staff at sites in Veszprém and Zirc. completion at the end of this year. Solar Energy year, daily Napi Gazdaság reports. Bericap supplies leading beverage makers such as Coca-cola and Pepsi.

German automaker Daimler will roll the first production car off the line at its new plant in Kecskemét, south of Budapest, in the first quarter of 2012, Mercedes-Benz Hungary managing director Frank Klein said. Some 720 Hungarians are already working at the plant, a number due to rise to 1,700 by the end of 2011. The €800 million plant will make two of four next- generation models of Daimler’s A- and B-class compact cars.

Europeum, the capital’s latest shopping center located in downtown Budapest, is scheduled to open its doors on April 14. The 6,000 sqm Lóránt Lehrner, an economist with more than a decade of experience mall already boasts anchor tenants such as managing financial institutions, has been named to head ELI-HU Nonprofit, the company in charge of the EU’s Extreme Light Infrastructure (ELI) Hennes & Mauritz, Müller and Deichmann. superlaser project at the University of Szeged (in southeast Hungary). US hotel chain Marriott International last Hungarian bus manufacturer NABI (North American Bus Industries) has signed a contract with state-owned regional bus Hungary, the Czech Republic and Romania won a HUF 100 billion joint bid company Kapos Volán for the sale of a second prototype of the company’s new Sirius bus at a price of HUF 46 million. NABI spring opened a Courtyard hotel in the same in 2009 for the ELI project that will open new avenues to reveal the building complex. developed the first prototype for the new line of buses last year at a cost of HUF 100 million, selling the vehicle to the secrets of matter on ultra-short timescales. The government in January local council of Kaposvár, west Hungary, for HUF 49 million. NABI, which employs 400 people, will also begin developing a allocated HUF 64 billion in EU structural funding to support the project. new 40-foot composite bus designed for the US market. West Hungarian paper company Fűzfői Papírmanufaktúra will spend HUF 600 million on development, business daily Napi Gazdaság reported. Nearly HUF 500 US auto maker General Motors is to start for the investment, which will come on Hungary’s National Development Robert BOSCH Energy and Body System Kft System sells solar panels and heat pumps, million will go toward a new geothermal construction of a 30,000 sqm expansion of stream by November 2012. Ministry and the Talentis Group have will start manufacturing electric motors for mostly in Germany and the United States. energy system, while more than HUF its plant in Szentgotthárd, west Hungary, signed a declaration of intent to establish bicycles from August this year. Bosch unveiled 100 million has been earmarked for as part of a €500 million investment it Switzerland’s Givaudan, one of the world’s a joint venture to help create “the first its electric motor technology at the Eurobike Hungarian dairy company Tolnatej technology to expand production. Fűzfői announced last fall, which will make largest manufacturers of flavorings and Central and Eastern European Silicon 2010 fair in Germany last September and plans to spend HUF 2 billion this year to Papírmanufaktúra, a joint US-Hungarian Szentgotthárd one of the largest GM plants fragrances, is breaking ground on a new Valley” in the Zsámbék Basin, near subsequently signed supply contracts with build whey powder capacity at its plant enterprise, bought the production site in the world. The project is expected to plant in Makó, southeast Hungary. The Budapest. The state could own 10-15% of 13 bike manufacturers. Based in Miskolc, in Szekszárd (southwest Hungary), CEO and machinery of bankrupt Fűzfői create 800 jobs and increase the company’s investment is valued at HUF 37 billion. Full the JV, National Development Minister northeast Hungary, the local subsidiary was set Attila Koller told MTI. The investment will Papírfeldolgozó in 2008. headcount in Hungary to 1,400. GM production is scheduled to start with about Tamás Fellegi said. The size of the project up in 2003 and makes components for leading give the plant the capacity to produce 3,000 won a HUF 7.5 billion government grant 300 staff at the end of 2013. could reach HUF 10 billion. international automakers. tons of whey powder a year. VOICE american chamber of commerce in hungary News & Analysis 13 Hungary tight ening its belt

The long awaited structural reform program announced by the Hungarian government with much media hype on March 1 largely disappointed markets due to the lack of Kálmán széll important details. Over time, new details of the plan have quietly leaked out, which The Fidesz govern- make the package look a lot like austerity measures, although that is a word Fidesz ment’s long-await refuses to use. by gabriella lovas structural reform program is known as the Kálmán Széll

he Hungarian government “There is little question that the problems EU May sue Hungary over MNB Plan. The man it was has sent a 180-page program the government seeks to address are both Four new members of the seven-member named for was a tax on the structural reforms to protracted and extremely deep-rooted,” RBC Monetary Council have recently been reformer noted for his T the country’s most important pointed out. The changes focus on several appointed and will therefore be in place for the handling of financial investors. The package covers main areas including cutting subsidies in the next base rate setting meeting on March 28. new, detailed elements of the reforms which transport and healthcare sectors, reducing The new members have been selected by the and banking matters. positively surprised markets, but maybe social payments, particularly in the area of government. Previously, two of the external Hungarian prime would not please voters so much, if they disability allowances and pensions, along members were chosen by the PM and the other minister from 1899- knew about it, that is. with much longer-term measures to try and two by the National Bank of Hungary. Thus, 1903 (a role he com- boost employment and the effectiveness of the new members have enough votes to reverse bined with interior “On one hand this is a positive message that education. “The commitment to cut debt some of the 75 basis points rate increases seen we can still expect further announcements levels appears genuine but the proof of the over recent months. RCB believes that there minister), Széll was which are to be unveiled gradually,” said fiscal package is how effectively the plans are is some risk of such a move happening later minister of finance Equilor analysts. The program will probably implemented, which will take some time to in the year. Prime Minister Viktor Orbán from 1875-78, and a cover a bigger size adjustment than previously assess,” RBC noted. said earlier that the government and the new parliamentary deputy reported. “We expect it might adjust the budget Monetary Council will need to find an efficient by over HUF 1 trillion”. On the other hand, The EU’s response to the package was way to cooperate in the next two to three from 1867. He was they believe that blurred communication still in tune with analysts’ reaction. Amadeu months because the current monetary policy born on June 8 1843 makes for uncertainty over the long-term Altafaj Tardio, the spokesman for European hurts the economy, but he denied reports that at Gasztony, and died trajectory of economic development. Commissioner for Economic and Monetary the government wanted to raise the central aged 72 on August 16, Affairs Olli Rehn, said that the program bank’s 3% inflation target. The European The Széll Kálmán plan is a “step in the right direction”. As the Commission seems finally to have had enough 1915, in Rátót. The plan, named after nineteenth century Commission had not been informed of the and European Central Bank (ECB) President finance minister Széll Kálmán, aims to reduce details of measures, with the exception of Jean-Claude Trichet said in a surprising tone Believe it or not, he en- state debt to 65-70% of GDP by 2014 from the some steps on the revenue side, it could that the Commission may take legal action joys a facebook page current level of more than 80%. The package not yet assess the exact scale of the plan’s against Hungary if the row over its central (http://www.facebook.com/ aims to plug the gap in the budget once the effect on reducing the general government bank is not resolved. pages/Kalman-Szell/ temporary crisis taxes on retailers, telecoms deficit, he said. The Commission must still 110574642304081), and energy companies expire. “This is essential analyze whether the plan puts Hungary on a No euro until 2020 if the fiscal targets over the medium-term are sustainable path of consolidation and moves Prime Minister Viktor Orbán announced though more to be achieved and the debt/GDP ratio is to it in the direction of lasting debt reduction. It in February that Hungary is unlikely to join detailed infor- start to come down,” RBC Capital Markets said will also assess the plan in light of Hungary’s the eurozone before 2020 because of “the way mation on in a research note sent to Voice. excessive deficit procedure. things stand at the moment”. He added that his life is avail- the terms non-members have to meet to adopt able on the The aim is for the budget deficit to be cut from What hurt market players most in the package the common European currency will radically Szentgotthárd 2.5% of GDP in 2012 to 2.2% and 1.9% in 2013 was that the original HUF 180 billion amount shift toward a common EU fiscal policy. and 2014, respectively. Annual savings will of the extraordinary bank tax will remain in Economy Minister György Matolcsy said town portal reach HUF 550 billion in 2012 and HUF 902 place for an extra year and will be halved only that Hungary first wants to be in line with the (http://www. billion in 2013-14. “This is on the higher side of in 2013 and 2014 and that a reduction in the Maastricht criteria, which he does not believe szentgotthard. market expectations but the policy statements corporate tax rates to 10% from the current to be possible at an earlier date. He highlighted hu/!kulf/eng/ contain little ‘new news’ and appear light on 19% for companies with more than HUF 500 that Hungary will adopt the common currency hiresszulot- specifics,” RBC said. million annual income has been postponed. once the state debt rate has decreased to 50%. teink.php). VOICE american chamber of commerce in hungary News & Analysis 15

Stock market finding work Local and world events Labor market roundup

A working alternative according to a summary by the Hungarian Ministry for impacting stocks Two moms with HR and marketing backgrounds have set up an National Economy. This year the scheme will have a budget of agency specifically tailored to those looking to offer or accept part HUF 64 billion. It aims to stimulate employment in productive The potential outcome of the unrest in Libya and the recent announcement of the time and telecommuting work. jobs. Social support will in the future be given only for those Rész- és Távmunka Centrum (Part-time and Home-office Jobs with a disability or otherwise permanently hindered from government’s structural reform have been the main drivers of market sentiment on the Center) was founded at the end of 2010 with the aim of setting up working. Refusal to participate in the public-employment Budapest Stock Exchange. by gabriella lovas and operating www.resztavmunka.hu, Hungary’s first job portal program will exclude eligibility for further benefits. (See also dedicated to the field of atypical work patterns. article on the Salva Vita Foundation on page 42). The owners Csilla Somlóvári (39) and Katalin Nyeste (36) say they were driven to set up the company and its portal by their ELF wants flexible regulation here is a good deal of uncertainty own experiences. “Although since the birth of our children, AmCham Hungary is continuing to work through the and doubt in the Hungarian family life has been at the center of our attention, we are Employers’ Labor Forum, a coalition formed together with the capital market, Raiffeisen analyst convinced that using our professional skills and knowledge British and German Chambers of Commerce, the Joint Venture T Ákos Herczenik told Voice. The we might just be able to help young mothers, women over 50 Association and the Hungarian Outsourcing Association. The general global environment with the political willing to return to the labor market, people with disabilities, or forum’s mission is to “Modernize the Hungarian labor market disturbances in North Africa and the Middle men seeking to telecommute,” says Nyeste. regulation for a better labor market.” The ELF met in early East are certainly having an effect on the The co-owners believe they have filled a vacuum in the job agency February and agreed to increase work efficiency by convening Hungarian markets. If oil prices do not rise market and say that, since its launch, the site has been attracting monthly consultations and to push for a more flexible labor much further from their current level of more 40-50 new registered users each day. regulation to be enacted as soon as possible. than $100 per barrel and the crisis does not “More and more company directors and HR managers with a escalate in Saudi Arabia, then global market foresight recognize that more effective performance might just be sentiment could remain optimistic. This could, conditional upon flexible working hours and home-based work, in turn, help the Hungarian markets, he added. which – being more family-friendly – can make employees more motivated, loyal and devoted,” Somlóvári adds. Among the Hungarian blue chips, Magyar “Using the services offered by resztavmunka.hu, HR decision Telekom (MTel) and oil and gas company MOL makers can find and reach directly the best employees willing and could perform well, according to Herczenik. ready to telecommute or work part-time.” MOL, which has enjoyed a positive news flow during the past few weeks, could benefit from Business English higher oil prices, while MTel is getting stronger Eötvös Loránd University (ELTE) is looking for companies to as the dividend payment date is approaching. partner it by offering placements for what it is calling its English in Business professional internship program. The scheme is being run MTel said earlier that the board would propose by the School of English and American Studies at ELTE, and has a the payment of a HUF 50-per-share dividend launch date of September 2011, though the organizers say students on 2010 profit to its shareholders. The proposal will probably be available from the summer is in line with the telco’s dividend policy of “The prospective interns are pre-selected by the university from an pool maintaining its net debt ratio in the 30-40% A robust drug subsidy cut of a combined HUF on the government’s website that measures of applicants with an exceptional knowledge of the English language range. At the same time, it reflects the company’s 120 billion during the next two years could outlined in a government reform plan will allow and a specialization in business English,” said an ELTE spokesperson. stable financial position and cash flow generation eat into the profits of pharma companies. crisis taxes to be “entirely” phased out after 2012 “Having covered multiple business-related courses during their studies, capacity in 2010 as well as the impact of a crisis Herczenik pointed out that nobody knows yet and the bank levy to be halved from 2013. many of the program participants have a strong background in business tax levied on telecommunications companies, how exactly this will be financed. “Hopefully, and information technology besides advanced English skills.” according to the company. this will not be in the form of a direct tax levied Negative sentiment was also fostered by a The Budapest-based university is looking for partners who would on drug producers,” he added. plan that the government will reportedly be interested in hosting its students for a period of three to four Blue chips hit by seek to fix the CHF/HUF rate at HUF 190 months, although it says the time frame is open to discussion. “The fiscal measures Hungary’s biggest lender OTP was hit by with regards Swiss franc denominated program regulations are flexible and can be tailored to the special While the Budapest Stock Exchange was the government’s decision not to half the loans, which would certainly hit the needs and priorities of the partner companies.” supposed to welcome structural reforms, the extraordinary bank tax, as it had originally liquidity of banks that need to adjust Companies interested in participating should contact Dr. Tamás reality was a rather negative sentiment after the indicated. The bank levy generated about HUF such loans to floating market exchange Eitler ([email protected]) or Márton Ugrósdy (ugrosdy. announcement as several listed companies were 182 billion in budget revenue in 2010, the year it rates. However, economy minister György [email protected]), or go to http://seaswiki.elte.hu/@api/deki/ hit hard by some of the measures, Takarékbank was introduced, and is targeted to bring in HUF Matolcsy later denied such reports. files/4/=BA_business_spec_mod.pdf for further details. analyst Gergely Suppán said. Analysts agree 187 billion in 2011 and 2012. All major companies are adversely affected that pharmaceuticals Richter and Egis were hit by the delayed timeline for introducing a Work for the unskilled hardest, as negative news was also released for National Economy Ministry state secretary corporate tax reduction for companies with The government’s new public-employment program is expected the pharmaceutical sector. András Kármán said in a video message posted more than HUF 500 million profits. to create work for about 220,000 unskilled Hungarians annually, VOICE american chamber of commerce in hungary Cover story 17 The icon has la nded: An airport American Airlin es on the rise Even for a major airport, securing a new transatlantic service with a global carrier is big news. For a relatively For a long-haul carrier like American Airlines, the Budapest has been on that list for a while, and leisure travel, but American has another we thought 2011 was the time to go ahead.” 30-35 connections beyond that to the rest small and under-utilized operation like Budapest, it is mere fact of opening up a new direct trans-Atlantic American will be flying Boeing 767-300 of the States (Chicago and Los Angeles, very big news indeed. And it didn’t happen overnight, route such as New York-Budapest, which starts aircraft on the route, with 30 business class for example, also have strong Hungarian seats and 195 coach class. “Flights will be populations), Central and South America but took 18 months of work. on April 6, means it is committed for – if you will daily up to October 31, for the winter until and the Caribbean. Travelling from JFK to pardon the pun – the long haul. by Robin Marshall March we will be operating four times a Ferihegy, Malév offers 20-25 connections on week, and then go back to daily flights. to Eastern Europe and the Middle East. hat’s not an uncommon Budapest Ferihegy International Airport, No one knows for sure what the passenger time frame,” says Budapest to use its full name, measures itself aunching a new route is a again at the economics of where they fly and numbers will be, but our average for trans- “We are extremely excited to be flying New Airport Zrt (BA) Aviation against regional peers in Vienna, Prague very big up front investment, how often they go there. Atlantic flights to Europe is between 75-85% York to Budapest, it is a great opportunity to “T Director Kam Jandu, and Warsaw. Looking at how they and it takes time to develop a “Performance is driven by revenue,” explains overall and we would expect the Budapest work with our partner Malév,” he says. “especially for a long-haul maximize their various airline alliance “L market; this is not something Stache. “Revenue is worked out by load flight to fall within that same range.” operator. Airline companies are very connections, it is obvious there is plenty that happens overnight,” says numbers times yield, an industry term we use And it is not only American Airlines that measured; the profit margins for airlines of room for growth in Hungary. Vienna the airline’s Vice President-International for how much each customer pays to travel is excited. “It is fantastic to have another are so marginal that no one wants to get it and Warsaw are Star Alliance hubs and Kurt Stache. “And because it takes time and per mile. Success for us is measured not by the successful, world-class American company wrong with a new route.” around 42% of their average origin and commitment to make a market work, we go in number of passengers, but by total revenue.” in Budapest. We warmly welcome American destination (O&D) traffic share comes via with a long-term view.” the network. At Prague, a SkyTeam hub, But why come to the percentage is 40%. Budapest is the Budapest now? Stache says a number of criteria came together, not least the improvement to the global economy and concurrent increased air travel, home base for Malév Hungarian Airlines, but also American’s a member of oneworld, yet its share of oneworld alliance Delta will resume its connection in alliance-generated O&D traffic is 27%. relationship with the summer, and Stache accepts that Malév. “We are competition will probably lead to cheaper At about the same time as Budapest always looking flights. The American Airlines website will Airport and Malév were talking to each for opportunities go live soon in Hungary (in both English other about the need to make Ferihegy an to build on the and Hungarian), through which passengers Airlines,” says U.S. Ambassador to Hungary oneworld hub, American Airlines were network. That will be able to check prices and book flights. Eleni Tsakopoulos Kounalakis. making what Jandu calls a “step change” said, there is good “Price is a function of supply and demand, “This new flight will build upon Malév’s In a sense, the groundwork for the in its business model, and were planning demand between and prices for tickets vary every day,” he says. excellent connectivity from Budapest deal goes back even further. Senior to move away from simply sticking to Hungary and the (At the time of writing, Delta was offering within the oneworld network and will management at BA was overhauled tried and tested routes in Western Europe United States.” return flights for one person for the first allow travelers from throughout the a couple of years ago, Jandu himself by adding more eastern destinations. Good enough week of July at around Ft200,000, or a little region to reach New York with one joined in July 2009. “One of the Kurt Stache, VP-International American Airlines (left), and Martin Gauss, CEO Malev for Delta to offer more than $1,000.) convenient stop in Budapest. We are new things I brought with me was American Airlines having expressed an direct flights, American’s expects the flight to be supported very supportive of increased Hungarian what we call a white spot approach.” “early appetite” for Budapest, talks were albeit seasonally. The VP describes a list of by strong local demand but also from travel to the U.S., whether for business, A map is covered in white spots, gradually ratcheted up during a year or so. In other words, having decided to launch the “next opportunities” the airline is constantly customers connecting through the two education or leisure, and I am also showing the number of destinations “We were meeting and talking to each other JFK-Ferihegy route, American Airlines is not monitoring. “Every year we undertake a pretty airline hubs at New York and Budapest determined to add Budapest as a served, and giving the aviation at trade conferences, on conference calls, likely to close it down anytime soon, “unless robust planning cycle to go through new in either direction. Stache points out that destination of choice for Americans. We team an idea of where they ought to they sent their airline planning team and there are dramatic external shocks such as markets and whether we want to go there. The New York has a relatively large Hungarian want to see increased people to people, concentrate resources. But they also then their alliances team here. When an 9/11”, or when oil prices suddenly spiked in the cities on the list do not change that often, what population, and is, in any case, a very business and cultural connections and understood they had to make better airline is sending delegates to your country, summer of 2008, requiring all carriers to look changes is the timeline for implementation. popular destination for both business and this flight will help make that happen.” use of existing opportunities. you know they are getting series,” says Jandu. VOICE american chamber of commerce in hungary Cover story 19

From the previous page: The icon has landed: An airport on the rise The tourism factor According to Lajos  The national Palkó, the dedicated air tourist office has a traffic strategy advisor dedicated budget for at Magyar Turizmus aviation development marketing of HUF Zrt (the Hungarian 300 million. There National Tourism were previously some Office or HNTO), the funds for this, but arrival of the daily ten times less direct American development marketing of HUF 300 high number of Hungarian-Americans] is Airlines service opens million. There were previously some funds interesting to us, but LA and San Francisco up possibilities of a huge for this, but ten times less. With this level could also be good feeder markets.” of support we can be stronger together market. “If we calculate with, for example, Budapest Airport if it is New York is not the only North American full capacity, and a 50- negotiating with an airline.” connection due to come online this spring. Breaking news at the time of 50 share of Hungarians Palkó is keen not to overstate the writing (indeed, it wasn’t even public and American influence of HNTO. “This is a much when Voice was told) was the signing of longer story than just our involvement. a deal with a Canadian tour operator passengers, we are Budapest Airport approached American to provide direct weekly flights from looking at an incoming Airlines a couple of years ago. At the end Toronto from May until the end of it was good timing for the Hungarian September. AirBaltic has confirmed tourism potential of National Tourism Office to become flights will connect Riga and Budapest 40,000 passengers a involved and give additional support, also from May, while Jet2.com will fly to offer joint venture marketing activity out of Edinburgh. Second only to the year,” Palkó explains. in the US market…. The budget is very American Airlines deal is the four times Not that there wasn’t some turbulence en to connect from the east. “We have very chunk of that is about to be realized. A by Robin Marshall important, as is being much more a week Doha-Budapest flight from Qatar route. “Malév was going through a period of candidly said we are talking to all three of new SkyCourt (pictured above) linking proactive than we were, but the potential Airways, launched in January, which uncertainty. We would speak to a senior person them,” admits Jandu. “We have shown them terminal 2A and 2B is due to open on figures must be good for the airlines in may become daily from the end of this there, get them onboard about the need to talk an oneworld presentation, we have talked March 27. Among other benefits, it will hat is the opportunity. Of the first place.” summer. But that is probably it for this to American Airlines at a high level about the about economic recovery, the marketing almost double the number of security course, we have to try and year, bar one or two smaller deals still in benefits of Budapest and then find that person incentives that we can offer with the HNTO. lanes (a total of 14 lines will be able to meet that potential. If each In other words, there has to be a reason, the pipeline. The groundwork is already had moved on. It was a very ‘fluid’ situation for We also have enough room at the airport operate, previously 2A had a maximum “T passenger stays the average a sustainable market for the airline to being laid for next year. a while, but the airline was a great help once it that we can be flexible to many requests. It is of five) speeding up the boarding process 2.3 number of nights, we be interested in coming before HNTO became more stable.” certainly on the planning horizon for the next enormously, and will similarly double could expect between 80,000 and 100,000 can step in. But at that stage, big backup Key to Palkó’s role has been building three years. Within that time, I would expect the number of passengers the airport can additional guest nights a year.” And those bucks can make a real difference. “If an relations with both airlines and airports. With big airlines being “very measured” to have another oneworld airline here.” handle at up to 11 million a year. guest nights obviously generate tourist airline is considering two destinations, “We signed a strategic marketing in their approach, risk mitigation and a dollars. The average spend for all visitors and one has marketing money and the agreement with Budapest Airport coordinated approach are essential. Thus Space at Ferihegy is another indicator that “By 2013-14 we will build two new peers if is put at $60 per day, but for American other doesn’t, the decision is likely to go outlining how we will work together and Malév have agreed to push back the departure there is room to grow in all sorts of ways. the demand is there. They should actually tourists that rises to $100/day. to the one with the better conditions.” help each other,” the airline consultant times for some of their eastern destinations to “The airport landmass is basically the same already have been built but the economic says. But there is more to Hungary allow AA passengers a reasonable connection as London Heathrow, but it has 12% of the crisis obviously hit air travel numbers. With figures like that, it is obvious why At the time of writing, HNTO and than just its capital, of course. “We for onward flights. And Magyar Turizmus, the traffic. The biggest constraint for any airport The new peers will increase the number of the HNTO got involved in helping broker American Airlines were still mapping out would also like to help the two regional Hungarian National Tourist Office, also got is runway capacity and air space. We are departure gates,” says Jandu. “We are also the deal. But it wasn’t always given such a their joint venture marketing campaign, international airports at Debrecen and involved (see story opposite). developing the terminals at the right speed for dusting off plans shelved during the crisis high priority. Palkó’s position of aviation as Palkó puts it “working out whom we Balaton.” Other targets include carriers the growth of the airport.” for a €30 million cargo center in 2012. We advisor to the CEO was only created last are going to target, where and by what already coming into Budapest but not With American Airlines bringing in traffic already have a small operation, but there June, part of a major shake-up at the methods.” New York is an obvious target, from their home base, as well as the from the west, it becomes more likely that When HOCHTIEF AirPort took over in is plenty of space to develop it so that tourism office. More money was also but American Airlines has a much wider European and Asian markets. Pakló has an alliance partner – Japan Airways, Cathy 2007, it agreed to pump in €261 million in Budapest becomes not just a passenger made available. “The national tourist network that can link to Hungary via a budget to spend, and airports to help. Pacific or Kingfisher – would attempt redevelopment funds by 2015. A sizeable hub, but a cargo one too.” office has a dedicated budget for aviation JFK. “Chicago [a city with a traditionally Expect new destinations soon. VOICE american chamber of commerce in hungary Focus 21

Taxing solutions Conference history The daylong regional tax conference, held for the sixth time this year, brings together tax experts from the governmental and business communities New years often bring new throughout Central and Eastern Europe to review best practice, highlight problems and outline solutions. Thus the conference aims to help create the best taxes; in that respect, 2011 possible business climate for the region and increase its competitiveness. But how has not been out of the did it come into being. ordinary. But what made “GE first spoke with Polish AmCham back in 2004-5,” recalls Will Morris, Senior International Tax Counsel and Director, European Tax Policy for GE. “We thought the timing and location of it was a good idea to try and get the Visegrad [Czech Republic, Hungary, Poland the sixth annual regional and Slovakia] governments together to talk to business about a number of issues including VAT. The governments were not talking to business much at the time, tax conference so uncanny and they certainly weren’t talking to each other.” this March is exactly how The first regional tax conference was held in Warsaw in 2006, and it has since done much is going on with the the rounds of Visegrad capitals. This is the second time Budapest and AmCham Hungarian tax system. Hungary have played host. by Robin Marshall “The last time we were in Hungary it was disappointing that there was relatively little government representation, but that was another time. I understand we are now in a much better shape. The conferences provide very good access for local irst the good news: after years companies to meet together with businesses from other parts of the region, as well as those from Western Europe and the US. I think they are incredibly worthwhile, of reduced competitiveness though a lot of work to put on. All the AmCham’s are very good to work with, but it and successive Hungarian is always a pleasure to come to Budapest,” Morris adds. F governments flirting with the idea of a flat tax rate, there is clear Morris’s colleague Farkas Bársony, one of the managing directors of GE Hungary progress. “After the changes announced by the Kft and its tax director, as well as a global tax director for GE Energy’s Industrial government in the summer, I think Hungary’s Rencz beieves there is plenty of scope for but described the sector-specific special taxes as the economic crisis, but it is never a good idea Solutions division, has also been involved from the start. Although he has regional competitiveness has increased further development. “Some steps in the “truly extraordinary and unorthodox”. to introduce taxes without some element of appeared on regional and European tax conference discussion panels, and significantly,” says Botond Rencz, Ernst & administration, the cancelling of some taxes, The chamber said the taxes must be limited to consultation, and clearly with the bank tax occasionally as a speaker, he prefers to keep in the background, using his large Young’s CSE central cluster tax lead and the these are good starting points, but there a maximum of three years, accompanied by and to a certain extent with the crisis tax, that network to help organize the events, find speakers and the like. head of tax for Hungary, as well as AmCham has to be further cuts in the administrative structural reforms “starting immediately to put unfortunately didn’t happen. If you consult, Hungary’s Tax Council chairman. burden. There were 58 different types on the economy on a sustainable path of growth”, you generally get where you want to be with But with Hungary now holding the rotating Presidency of the Council of the taxes on businesses in Hungary before, there and “complemented by effective measures more business buy-in,” he explains. European Union, had it proved harder to find government speakers with time “Before the current government, if you take are now 51; there is still a lot of scope for to widen the tax base, thus meaningfully to attend? “It is always difficult,” says Bársony. “If not the EU Presidency, the last eight years, competitiveness in the future improvement.” whitening the economy.” “Having said that, we did find the government then perhaps there has just been a change of government, or perhaps the taxation arena has shrunken almost year by listened on the bank tax following its government is working on tax reform. In the past six years, there has always year. There were some good steps but, even so, Lacking the money to indulge in US-style Welcoming the introduction of new introduction and made some helpful changes, been something going on.” the country definitely fell back. The new single market stimulation, and the political will to personal income tax and corporate income so we are encouraged by that. Going forward Where possible, the conference organizers advise governments to participate tax rate for individuals and, at the same time, bring in yet more austerity measures openly tax regimes and the decision to cap the with the tax system, current and potential as conferences help them to understand the business side better and thus take the lowest corporate income tax rate on the (Fidesz campaigned hard against exactly that), social security contributions (something inward investors need to know the processes, actions that help to make their countries more competitive. “On the other hand, Continent [implementation of which has since the government has been forced to adopt what it has campaigned for during the past five stability is very important when you are we are sympathetic to the time pressures on ministers,” Bársony says. If there are been postponed]; that really is a substantial even it accepts are “unconventional” methods years), AmCham Hungary called upon the making three, four, five even up to 10-year last minute cancellations, there is normally an offer of a substitute speaker or a change. This puts Hungary back on the map.” to boost growth and balance the budget. government to “establish new and effective investment decisions. Crises do come along meeting elsewhere, he adds. While there have been tax cuts, and the methods of dialogue with the business and call for crisis measures, but hopefully in a Will Morris, Senior International Tax promise of structural reform, there has been community to monitor progress, to avoid slightly more consultative way.” “When we started, we did not know where we would go with it [the conference Counsel and Director, European Tax little detail on the latter. In the meantime, a further special decisions, to significantly series], whether we would even survive the second round of conferences. It speaks Policy for GE, says there are other benefits. series of what have variously been called crisis improve the competitiveness of Hungary And how does Hungary compare regionally? for itself, now we are at the sixth conference, that is has been a success. What “A flat tax at a lower rate generally will taxes, windfall taxes, even Robin Hood taxes and to put the country on a sustainable path “Our experience over the past 10 years is that we have created is a new forum for dialogue. The conferences provide a great broaden the tax base, especially if income have raised revenue by targeting banks, the of growth in the interest of local and foreign Hungary is a good place to do business in platform from which all voices can be heard.” tax and corporate tax are set at the same energy sector, telecoms and large retailers. investors, big and small businesses.” and the government is aware of the fact that level to avoid any amelioration issues. Do the tax system is a very important part of It is, says Bársony, very hard to measure tangible success, but the fact that that and it will bring more people into The situation was unsettling enough for GE’s Morris, a man who has worked both attracting and keeping inward investment,” there is a continued interest from governments and business is itself positive. the system, because the logic for staying AmCham Hungary to issue a powerfully for business and government, agreed that says Morris. The important thing now is to get And conversations held at the conference can often lead to other events, other outside is removed. There will always be worded statement back in November 2010, proper consultation is vital. “I understand over the crisis, get back to a stable, predictable discussions, and other policies. “There is life between the conferences.” a black economy, but this will get rid of in which it acknowledged the “extreme and the difficulties in which the Hungarian environment, and, to quote Morris’s boss, Jeff much of the grey system,” says Morris. special circumstances” facing the government government found itself mid-2010 following Immelt “reset to normal.” VOICE american chamber of commerce in hungary 23

interview PR feature Lower, simpler, Citi Hungary: more transparent Client Focus. Global Reach. Constant Innovation. Hungary’s businesses will be given more Citibank Hungary was the first Citi franchise bring our institutional clients tailor made solutions to consultation about in the region, established in 1985. This year we support their complex financial needs. Our services celebrate the 25th anniversary of serving our extend to global transaction services, securities and any forthcoming tariff clients and the community here. funds services, treasury, corporate and investment changes, says one of the banking, complemented with one-stop-shop retail Some of our landmark transactions include the first solutions for their employees. key figures behind commercial paper program in Hungary for MATÁV the government’s in 1993, the debut financing of Westel 900 in 1997, Some 300,000 consumer customers in Hungary the largest corporate local currency project financing choose Citibank for our innovative, flexible and taxation policy. as part of Vodafone Hungary’s start-up financing convenient banking products and services, including by Robin Marshall in 2000, the first Islamic finance facility in Hungary insurance, wealth management, and chip debit and for MOL in 2002 and the largest corporate loan credit cards featuring advanced security and fraud syndication for MOL in 2005. protection. We attract, train and inspire the best think that business players will people to deliver excellence in client service. now be involved in the process very Citi was lead manager of several successfully priced differently from last year, when we sovereign bond issuances, including a €1.5 billion “I had to make very rapid decisions,” Eurobond for the Hungarian government in 2008, a says Ádám Balog, Deputy State €1 billion Eurobond issuance in 2009 (a transaction Secretary for Taxation Affairs at the Ministry Citi delivers that helped to restore market confidence in Hungary For National Economy. “We will still make unmatched global after the global economic and financial crisis), and a the decisions, but they will be involved in opportunities and $2 billion benchmark USD bond issuance in 2010. determining the exact details,” Balog is not some dusty academic taxation to make a difference in a decision of where to expertise to our clients We are very proud to have been the first bank He is referring to a controversial series of theologian. Prior to joining the government invest if all other factors are equal. in Hungary and in the to introduce a real credit card to the Hungarian sector-specific taxes introduced in 2010 he worked for seven years as a tax analyst, South Central Europe market in 1998. Ever since we have been a leader that targeted banks, energy, retailers and and says he has some sympathy with the “And it is not just how much tax you pay, in innovative new benefits, products and services, telecoms. But Balog is unapologetic of degree of uncertainty the special taxes but the complexity of the administration. and Baltic region. including a 24-hour telephone customer service the way the taxes were introduced, saying prompted. “I understand the view that this It is, therefore, very important to make the No competitor has a for cardholders, the Loan On Phone service and immediate steps were required to shore does not support stability, these measures system more simple, more transparent.” the Platinum Card with club privilege services. We are committed to being an active and supportive up state finances and meet internationally were very strong.” Within a couple of years, much should worldwide presence or Today, we have the widest range of cards on offer member of the communities in which we do agreed budget deficit targets. “Speaking as have changed; the move to a corporate platform approaching in the Hungarian market, working with industry- business. In line with Citi’s global corporate social someone who was involved in the process, Put the controversy over the special taxes tax rate of 10%, a personal income tax the scale of Citi. This leading companies to bring outstanding value- responsibility strategy, we primarily focus on I don’t think we could have done it in a to one side, Balog says, and he believes the rate of 16% and a cap on social security added benefits to customers through our co-brand financial education, building NGOs and small different way,” he says. And he rubbishes government has made “a good start” in long contributions will greatly improve offers our clients access cards. Partners include Magyar Telekom, Malév businesses and driving environmental awareness the idea that they somehow targeted over-due reforms aimed at reducing direct Hungary’s position (though on the latter to the best products, Hungarian Airlines and Shell Hungary. with our customers. Citibank Hungary has planted multinational companies. taxation and improving competitiveness. Balog says “there are still things to do”). services and banking 37,000 trees for our customers who switched from Doing so has affected one of his priority Today, Citibank serves clients in corporate, printed to paperless e-Statements in our Plant-a-Tree “That was never in the mind of areas – stability – but that is inevitable in any A period of consolidation is required, he innovations available commercial and consumer segments. We are a Program launched in 2008. the government. There are a lot of reform, he argues. suggests. “It is more important to have from around the market leader, among other things, in credit cards, multinationals in these sectors, but the stability, and this is what we have to Internet banking and global transaction services. Our focus in the next 25 years will continue to be state of the general Hungarian economy is Referring to a World Bank study that placed focus on from now…. Being more stable, world. Our diversified distribution channels include 26 on enhancing our clients’ lives through innovation dual and in most sectors multinationals are Hungary around 140th in the world in simpler, less trouble for taxpayers is very branches across major cities in Hungary, 24/7 that harnesses the breadth and depth of our over represented at the top level. But in the terms of tax competitiveness, he says there important for me in the long-term. In my CitiPhone banking, internet banking and direct information, global network, and world-class Batara Sianturi, banking sector, who will pay the biggest is “a lot of room to develop.” Hungary’s head, competition is very important, but Cluster Head, Hungary, sales/telesales channels. products. As a team, we all strive to make the amount in taxes? OTP, a Hungarian bank; Visegrád peers (Czech Republic, Poland and there are always other important factors, Serbia and Non-Presence Citibank experience instill trust and confidence in in the energy sector, Hungarian gas and oil Slovakia) have recently been better placed like the budget, that you have to take into Countries & Citi Country Leveraging Citi’s unparalleled global footprint, as our promise to make every single interaction an company MOL will pay most.” than Hungary, not significantly, but enough consideration.” Officer, Hungary well as our outstanding global and local expertise, we exceptional experience for our customers. VOICE american chamber of commerce in hungary Lifestyle 25

Experimental artists

This March 26-April 24 exhibition looks like the kind of show it would have been nice to see more of in recent years – a freely conceived, collaborative project involv- ing the most progressive and experimen- tal artists that opens up to the creativity of The information on these related fields, from dance to music. It’s also pages is produced by Time Out Budapest, available on the kind of exhibition that we may see even newstands every where. less of in the future in the big public ven- For a subscription, write to ues, judging by the priorities announced [email protected] by the new management at the Műcsarnok that point to a program headlined by ret- rospectives of serious Hungarian painters and surveys of famous international artists. This exhibition, with the symbolically significant title No one belongs here more than you, opens the grand stage of the Műcsarnok to groups of young artists for whom the creative process goes hand in hand with collective reflection. On this occasion, various groups will work in cooperation, while defining their own activity and commenting on the signif- Táskarádió icance and meaning of the exhibition space itself. Ambitiously, the show sets Opened in late 2010 in the downtown Design District, this operation Wienerschnitzel. Somlói galuska, of course, is one of three desserts. The Orchestra del Maggio out to turn the gallery into a kind of com- covers as many bases as it can (‘Eszpresszó Bisztró Bár and sometimes two draught beers are domestic and set at around HUF 500 a korsó, munal space where the creators of the art- Diszkó’) within one neat, retro-centric interior. In fact, ‘Pocket Transistor’ Arany Ászok and Dreher, while fussier lager drinkers can opt for a bottle As the Budapest Spring Festival wraps up, works can also find a home. takes retro to the nth degree, dressing staff in Pioneer uniforms (dig of Peroni (HUF 580) if the bog-standard Kőbányai (HUF 450) is taking Zubin Mehta will direct the Orchestra del Mag- those red neckerchiefs!) and lining its shelves with Sputnikera TVs, the retro thing too far – 1989 happened for a reason, after all. Still, it’s nice It will be accompanied by events, on- gio Musicale Fiorentino at a show in the Palace toys and prams. The menu is also retro-themed, the cocktails (a Harvey to see the revived Traubiszóda and Márka Meggy among the soft drinks. and off-site, organized and spontaneous, of Arts on April 2. Wallbanger is a Party Secretary), the dishes (Progress! is spinach purée), There are so many teas, coffees and hot drinks (note the orange involving contemporary art and perfor- When he was a child, the cricket-loving and so on. This being the student quarter, prices are reasonable, around macchiato with Cointreau) that there’s even a ‘Coffee-Tea Responsible’ to mance arts. Participating artists and col- HUF 1,000 for your above-mentioned Párt Titkár or spenótos főzelék, oversee them – unless that’s another retro touch. Zubin Mehta preferred the bat to baton but lectives include Tibor Horváth, SZ.A.F., but there is no skimping on selection. You’ll find three types of soup V.Papnövelde utca 8. Phone: 266 0413 it wasn’t until he started training as a doctor www.taskaradioeszpresszo. hu M3 Ferenciek tere/ Szövetség 39, The Corporation, The Ran- (including retro goulash), three types of retro melegszendvics toasted BFO, Ewa Kupiec that he realized his fondness for Mendels- Kálvin tér. Daily 9am-midnight. No credit cards. domroutines, Tehnica Schweiz featuring sandwiches, and classic dinners such as beef stew, stuffed cabbage and sohn over medicine. Katarina Ševic and 1000% Formerly the chief conductor of the Deutsche Arguably the most famous Parsi on the planet, Opera in Berlin, the Czech Philharmonic and Mehta has a mile-long string of achievements together the two places seem to be building a dozen types of cocktails at fair prices: tequila Műcsarnok/Kunsthalle Mika Tivadar Mulató the Prague Symphony Orchestra, German con- that puts him up there with the best conduc- buzz that’s greater than the sum of their parts – sunrise HUF 1,200 or a mai tai for HUF 1,600. March 26-April 24 ductor Gerd Albrecht will direct the top notch tors in the world. These include the director- Just when it seemed the old Jewish both venues are packed. The disco-ball-adorned downstairs area is XIV. Dózsa György út 37. Budapest Festival Orchestra on March 31 in ship of the New York Philharmonic Orches- Phone: 343 7401 Quarter was full to capacity with bars, the While the lively atmosphere is the main smaller than the upstairs but still holds a sizable a program of romantic music including Liszt tra between 1978 and 1991 and becoming the Web: www.mucsarnok. hu slick new Mika Tivadar Mulató is proving draw at the former Mika Tivadar steel and crowd. It hosts DJs most nights of the week, (‘Orpheus’, ‘Piano concerto No 2 in A major’) Israel Philharmonic’s director for life in 1981. M1 Hősök tere there’s room for growth. copper works, the beautiful renovation of providing an alternative scene to the gabfest and Beethoven (‘Symphony No 5 in C minor’). He has been giving back to his home city by Museum Tue-Sun 10am-6pm; With a big main-floor barroom, a large upstairs the 1907 structure is also an attraction. taking place on the main floor. Polish pianist Ewa Kupiec performs with the playing fund-raising concerts for the Mehli Library & archive loft in the back, and a downstairs dance and The tall indigo and copper walls and You could easily spend the entire night bouncing Budapest Festival Orchestra on this evening. Mehta Music Foundation, an organization Mon-Fri 10am-6pm. concert area boasting its own bar counter, the modern chandelier-style lights give a up and down in the spacious Mika Tivadar A graduate of the Chopin Academy in War- set up in his father’s honor . Mehta leads the Admission HUF 1,200; HUF 600 Mika Tivadar Mulató dramatically increases the classic look, and the lamps made from Mulató. Of course, with some of the city’s best saw and the Royal Academy of Music in Lon- Orchestra del Maggio Musicale Fiorentino in a concs. amount of drinking space on Kazinczy utca. old brass horns are kind of arty. Gluing bars just steps away, you have plenty of other don, Kupiec is well known for her rich yet unob- performance of mostly Verdi (‘The Sicilian Ves- And a seemingly endless supply of drinkers are all those old coins to the long bar counter options, but this is certainly a new key stop on trusive playing style and perfect combination of pers’, ‘Luisa Miller’, ‘The Force of Destiny’) and taking up that space: the bar fills most nights must have taken someone forever but it’s a any Jewish Quarter crawl. energy and precision. Mahler’s ‘Symphony No 1 in D major’. with a fun mixed crowd: loads of attractive worthwhile decorative touch. young people, older artists and mid-level celebs Behind the bar are a professional staff and VII. Kazinczy utca 47. Palace of Arts Palace of Arts – and the rest of the general nightlife crew that a pretty impressive selection of booze from Phone: 06 20 965 3007 March 31, 7.45pm April 2, 7.30pm keeps inner District VII hopping. Weekends, around the world. The beers are priced to www.mikativadarmulato. hu IX. Komor Marcell utca 1, IX. Komor Marcell utca 1, the punters are five-deep at the bar for the better move, with draught Zlaty Bazant going for M1, M2, M3 Deák tér. Mon, Tue, Sun Phone: 555 3300 Phone: 555 3300 Tram 2, 24 Tram 2, 24 part of the evening. Right across the street is the HUF 500 per half liter and Edelweiss wheat 2pm-1am, Wed 2pm-2am, Thur-Sat Tickets HUF 1,500 - HUF 8,500. Tickets HUF 4,000 - HUF 22,000 400, another big and popular watering hole, and beer going for HUF 650. They’ll also mix a 2pm-3am. No credit cards. VOICE american chamber of commerce in hungary Lifestyle 27 A ndrás Törö k’s Budapest

ith a little exaggeration, one can say that everything (apart from elegant, spacious, happy interior, complete the setting) that makes Budapest grandiose as a city was built in the with minimalistic design, and especially period of the late 19th and early 20th century that lasted from 1867 pretty lighting. It is a welcome addition to the to 1914. The Open Society Archives is housed in a building like that. neighborhood, previously known only for W It is a private institution that also operates an exhibition space in the theaters and luxury goods. foyer called the Galleria Centralis, with the ambition to represent ideas, notions, and The grandiose café can host about 100 phenomena that haven’t been shown before, sometimes bordering on the impossible. As its headquarters turns 100 years old this April, it decided to organize a community guests at a time, in chairs that either torture commemoration on the weekend of April 9-10, when there will be events all over town, (the black wooden ones) or pamper (the in 100-year-old residential blocks and institutions. And there are many of them; 1911 London club-type armchairs). Service is at- seems to have been a peak year in building activity in Budapest. Look at the red dots on tentive, and the choice and price range are the map at www.budapest100.hu, and you will doubtless be amazed. The Open Society OK. It is a great addition to the Budapest Archives is organizing the event in alliance with KÉK, the Contemporary Architecture café scene – not a revival, but a genuine Center, and many volunteers. They are an ambitious lot who dream of a “moveable addition based on old virtues. feast”: next year the want to celebrate those buildings completed in 1912. Now three eras coexist peacefully in that building: 1883, 1911 and the 2008/9 renova- tion, especially sensed in the main entrance The 100 year old and the glass structure on the top, only vis- Goldberger building ible from the back. One of the most prominent private academic The view from the top, seen far left, is some- institutions is basically an archive that serves what distorted: it is much smaller in reality. to maintain the proper historical memory (Courtesy of Sándor Csontó.) of Hungarian society. One of the means to this is its incredibly complex website, which A 100-year-oId charity shelter is continuously being further developed. It The quick development of Budapest before and is a great example of the democratization of after 1900 made it possible to initiate an active knowledge. On the facade of the building a anti-poverty policy, which aimed to design and large sign says: “Goldberger”. The pre-modern build state-of-the-art “night shelters”. The em- building was erected for a company called blematic building was called the People’s Hotel Goldberger Samuel and Sons (Dávid Jónás (“Népszálló”), and it was intended for working and Zsigmond Jónás), and once served as the males who wanted to rent more than just a bed workplace for 120 people. After it was nation- somewhat clumsily used throughout Com- 2009, with a long-awaited ceremony, when in town, but could not afford a room. There alized (i.e. confiscated from the owners), it was munist times: summer sales and Christmas toy the renovated Parisian Department Store were 417 little cubicles in the building, which converted into a warehouse – a very elegant sales were usually held here. also became accessible to the public. The tenants could use from 7 p.m. to 8 a.m., though one, indeed. In 1981 it was opened to a limited During the recent renovation a new and final Alexandra Bookshop occupies the ground those who wanted to sleep here had to buy a public as a “shop for diplomats”; anyone role was found for the Lotz Hall: the Alexan- and first floor in a space worthy of Rizzoli in ticket every day. The city council debated the who legally owned U.S. dollars could enter. dra Bookshop was opened on November 9, New York or Hatchard’s in London. It is an “luxuries” of the design (unlike similar British When it was renovated for the archive, many complexes, there were toilets at the end of the original elements were restored. The classic floors on every single level, and the ceilings modern wooden and aluminum chairs were were higher than often found abroad). Critics saved from destruction when the old Ferihegy argued that experience from outside Hungary Airport was closed for renovation. (V. Arany region, to win prizes, and to become famous called the “Casino” on the site, completed in showed that at least 500 cubicles would have János utca 32, www.osaarchivum.org) in order to get a banana-shaped yacht painted 1883, which had gone bankrupt in the early been necessary to make the project sustainable, yellow to live on. And we would have a great 1900s. Architect Zsigmond Sziklai succeeded while others described it as nothing more than A much less old institution time!” But it is not a weird place for nerds and in persuading the new owners (who else but a “show off project for foreigners”, and a “world in the Goldberger House bluestockings at all. It provides the best serious the Goldberger family!) to preserve the casino’s class palace of advertising”. True enough, it was To the left of the archive’s entrance there is a magazines in town, from The New Yorker to large and opulently decorated ballroom, which losing money, even when full. Partly because high-class, very original salad and sandwich A10 and Monocle. (www.fruccola.hu) was called the Lotz Hall (after the painter of that, and partly because of WWI, no other bar (open 7 a.m. to 7 p.m. every weekday). Károly Lotz) and was at the back of site, over- people’s hotel was built, though they had been It has a nice website, though in Hungarian A 100-year-old department store looking Paulay Ede utca. Thus, a funny and planned for each district. But this building has only that, somewhat unusually for a salad This seven-story building, built for the old highly original mixture was created: a modern- kept on serving the homeless, until this very bar, includes a mission statement: “Our mis- Parisian Department Store, opened in 1911. looking front and a traditional back, a sort day. (XIV. Dózsa György út 152, near Dózsa sion is to prepare the yummiest juices in the Earlier there had been a neighborhood club of “architectural centaur”. This Lotz Hall was György út metro, line 3.) VOICE american chamber of commerce in hungary AmCham news 29

AmCham President ‘Milestone’ István Havas signed what he called a agreement with “milestone” strategic CEO’s Note partnership agreement government with Deputy Prime ust because you are old enough to remember a thing does not make you smarter; it only means that you continue Minister Tibor de-younging (copyright Kurt Vonnegut Jr.). This was ccording to AmCham, it doesn’t want to act alone, Havas added. Navracsics in the J my major takeaway from an experience one morning the long-term goal is that, “We want to involve other chambers, with Parliament on Thursday, this February. Joking aside, I got it from a meeting in accordance with Act the permission of the ministry, of course.” with youngsters in a secondary school as an AmCham Language A #131 of 2010 on Preparing February 24, with the Ambassador. I was talking to students aged between 16 and 18 at New Legislation and on Navracsics, who heads the Ministry the Vörösmarty Gimnázium of Budapest, telling them stories of a Public Discussions on Drafts, direct of Public Administration and Justice, aim of building closer much loved subject (myself) and making my point that language consultation “will lead to the introduction welcomed a move that he said would make cooperation between skills are important for your career. Indeed they are, as much as good of better quality, more effective laws that business lobbying of government more business and legislators. education, experience and motivation. So, I was reciting to them good correspond to public interest.” transparent, while also giving legislators old anecdotal stories from my youth and realized that I was talking access to expert knowledge and opinion. by Robin Marshall history. To them, anyway…. AmCham’s mission statement includes a commitment “to promote the global Their teachers asked me to hold the 45-minute long session in English. competitiveness of the country”, and With pleasure, I said, although the original idea of the Language this partnership with the government Ambassador Initiative was to talk to teenagers in their mother tongue. clearly fits that bill, but the President However, to my pleasant astonishment, my audience was following the also feels the agreement is a powerful course of conversation with ease: they were asking reasonable questions statement in its own right. “This is and were clearly having fun (something I tried to achieve, frankly a milestone for building trust, and trust should always be based on mutual dialogue, understanding and information sharing,” Havas said. “We should find common interests during dialogue, that is our aim.”

AmCham President István Havas (left) and Deputy Prime Minister Tibor Navracsics sign the strategic partnership agreement. speaking). Their English, judging by their questions and comments, was fairly good, and some of the students spoke it really well. My stories “It is highly important that we know the were about learning foreign languages in general: how my vanity was interests of our partners. We have this paper challenged by a French teacher in high school; how difficult it was [the agreement] but we also need the practice, for me starting my studies in Moscow; how much I enjoyed learning based on personal relationships which can be English and what benefits I got from being a polyglot later on, for strengthened both formally and informally.” instance when I was working on the Hungarian News Agency’s Foreign Desk as a journalist and later on as an editor. I was asked some excellent U.S. Ambassador to Hungary Eleni Tsakopoulos Areas covered in the cooperation agreement, Kounalakis and AmCham President István questions about journalism as a profession: apparently, these kids Havas at the Goeblin room ceremony. which was developed jointly by Navracsics understand the difference between facts and opinions, something not and Havas, include constitutional and so evident to some of the practitioners of the profession. administrative law, corporate law, taxation, The strategic partnership would allow “The government can only be strong if it has labor law and environmental regulation among I paid special attention to making our dialogue a discussion AmCham, whose members provide one- the support of experts and different circles and others. Either party may initiate a dialogue, between equal parties and to avoiding talking down. They seemed third of Hungary’s exports and have created can serve mutual interests. I do believe that but the MPA promises to advise AmCham of to appreciate that very much. At the end, I even got a round of more than 150,000 jobs in the country, to there might be debates between partners, but legislative concepts and draft legislation ahead applause, and they said it was a nice meeting. AmCham’s Language “make proposals, recommendations within in the end we will be able to find consensus of time so that the chamber can prepare an Ambassadors program is, in my opinion, an excellent initiative, and the framework of the agreement that further and common interests, if we have a common expert opinion. I encourage you, dear readers, to join in as volunteers. You will find enhance competitiveness,” the president said. framework within which to work.” these meetings with youngsters very rewarding without regretting The signing took place in Parliament’s Goeblin the time spent in high school – again. But that was not all; Hungary should Navracsics added that he was “highly delighted Room, in the presence of U.S. Ambassador “strive to improve and enhance trust in to sign this agreement which is clearly added to Hungary Eleni Tsakopoulos Kounalakis, the country” in order to attract future value from the point of view of Hungary”. among other guests, on a table that government To become an AmCham Language Ambassador please send investors and keep existing ones. And Being able to draw on the expertise of the spokeswoman Anna Nagy said dated back to an email to [email protected] while AmCham has taken the first step, chamber “will contribute to our work”, he said. 1712, and was toasted with champagne. VOICE american chamber of commerce in hungary AmCham news 31

interview patron profile How to befriend Coca-Cola HBC Hungary Ltd. Field of business: Beverage producer a glossary by Robin Marshall established (parent company and Hungarian company): Coca-Cola 1886, Coca-Cola Hungary 1968 Workforce: 1,400 AmCham member since: 1994 What has been a AmCham Patron since: 2006 mountain of work will see Questions answered by: József Tarsoly, general manager, been 17 years with the company its realization in April

with the publication all other to improve the of AmCham’s second business environment? edition of the Corporate Above all, we need transparent, clear, simple and stable Governance Glossary. economic rules. But that won’t be the end of the story, for Why is it important to belong to an organization as its preface says, the such as AmCham? intention is that the We are confident that by glossary will undergo articulating and representing the interests of companies “continual amending and residing in Hungary, we may refinement”, not least at contribute to the establishment the suggestions of those of a stable and predictable who use it. economic environment.

What are the additional Regular readers of Voice may Hungarian). The book is alphabetically larger entities. “Entrepreneurs who want benefits of being a Patron? remember our article Defining sorted in both languages, making it truly to grow their business should read this,” By being a Patron member terms in the October 2010 bilingual. A preface has been added, Czirják says. of AmCham we have a great R edition which looked into the establishing a context for what follows. and exclusive opportunity to work of the five volunteers Ensuring that the finished product reaches Like the glossary, it is available both in a influence AmCham’s efforts in responsible for producing the lexicon, led by the broadest possible audience, AmCham hardcopy format and as a download, and Hungary. László Czirják, the chairman of AmCham’s will have at least 14 publishing partners, they form part of an interactive Online Corporate Governance and Business who agree to distribute the glossary to Resource Center (http://www.amcham. How would you describe Coca-Cola coke was the first through natural mineral waters Would you recommend Integrity Committee. their membership. hu/online-resource-center.amcham.hu) the current business American product in the and fruit juices to ice teas and it to other companies? providing information, studies, analysis, environment in Hungary? post-WW2 period produced energy drinks. It is another If so, why? The process hasn’t stood still since then, The glossary alone has taken an enormous and statistics about Corporate Governance, Hungary is a small and open in Hungary. Our products significant change that today we Definitely so. AmCham is a as Czirják explains. “We have been volunteer effort to produce but it is far CSR policies, best practices, case studies and economy in central Europe, were first bottled in a state- not only supply Hungary, but long-standing, prestigious continuously reviewing and including from the only thing the committee has related issues. There will even be a Facebook therefore its economic run distillery as early as 1968. export products to 15 countries. organization in Hungary, additional terms to the glossary, as well as been working on. “It is part of a series of page, A jövő vezetői (Future leaders), performance is heavily influenced After the political changes the which has an important role in revising the terminology and translations things we do that are all interconnected,” launched soon. “It will be moderated to by the international and internal Hungarian branch of Coca-Cola What are the greatest articulating industry interests thereto. We have even refined the English Czirják explains. some degree, but it is meant to encourage business environment. Both the started to rebuild the company challenges in doing and thus plays an important role definitions somewhat, and certainly the discussions, with links back to our site.” internal and global economy in 1991 and has invested more business in Hungary in Hungary’s economy. Hungarian translations to make them more The latest annual workshop, held in produced a lot of unexpected than HUF 100 billion since right now? understandable in a Hungarian context.” December of last year, also saw the The aim is to find as many ways as possible events in the past few years, then in the establishment and Every business is based on publication of the Hungarian translation to reach and inform the target audience, so I would rather describe development of operational planning and predictability, A lot more terms have been included, of Corporate Governance Principles and the business leadership of today and, in the Hungarian economy as capacity. In the past 20 years but we have been continuously and in addition to refining existing Guidelines for Unlisted Companies in particular, tomorrow. “We want to engage transitional now. from a “one product producer” shooting at moving targets in terminology and definitions, full Europe, yet another project tackled by the them, create things and have things we have turned into a company the last couple of years. Hungarian translations of those committee. This lists 14 principles; the first created by others that will be useful for How has doing business in selling the full spectrum of definitions have been added (previously nine are applicable to companies of any everyone. If we can do that, our efforts will Hungary changed since the non-alcoholic beverages ranging What one thing would you only the term itself appeared also in size, while the remaining five are aimed at become self-sustainable.” company was set up here? from carbonated soft drinks like to see changed above VOICE american chamber of commerce in hungary AmCham news 33 Announcements need actions

In the run up to February’s AmCham Podium Debate on the economic forecast for 2011, many  “It doesn’t were waiting for the details of the government’s long make sense to trailed structural reforms. The specifics would be an work in Hungary.” important indicator of where the economy might go, of course, but they would also need to be backed up György Barcza by action, and market reaction. by Robin Marshall

e are not in the habit of see quite a significant surplus in 2011. But making rating changes you have to look beyond that. The negative on the basis of daily outlook points to the mid- to long-term, the “W news, we would be quite next 12 to 18 months. What we are saying is busy if we were,” joked that there are still some downside risks, but Dietmar Hornung of Moody’s Investors nothing imminent.” Service, speaking exclusively to Voice the day before the debate. Moderated by journalist Zoltán Simon, a György Barcza, K&H Bank, moderator Zoltán Simon, a correspondent for Bloomberg correspondent for Bloomberg News, the News, and Dietmar Hornung of Moody’s Investors Service. The point he makes is serious, however. In debate featured Hornung and György December, Moody’s downgraded Hungary’s Barcza, the chief economist of the treasury sovereign rating two notches to its lowest directorate of Hungary’s second largest investment grade, Baa3 (one step above a bank, K&H. The two analysts were in broad Prior to joining Moody’s Sovereign “junk” rating) and put its outlook at negative. agreement about the economy, but it was Risk Group in 2007, Hornung was “We will look at what will be announced, Barcza who produced perhaps the most Head of Emerging Markets Research but very seldom does an announcement by startling statistics. for DekaBank in Frankfurt. He has itself bring a change.” What Moody’s will be worked extensively in country-risk watching, said Hornung, a vice president and “In Hungary one thing people are not much analysis, focusing particularly on senior analyst of the sovereign risk group, is aware of is the demographic change in the CEE credits. Mr. Hornung holds implementation. “If things develop and we late ’70s,” he told the audience. “The labor a Doctorate summa cum laude in find improvements in economic stability market went from almost six million in ’79 Economics from Otto-von-Guericke and activity beyond what we expect, if the to now where we have a little more than four University in Magdeburg. He received government embarks on meaningful structural million.” The number of people dropping out a Masters degree from Christian- reforms, we will look [at the rating] again.” of the workforce far outstrips the decline in Albrechts University in Kiel after population, meaning other factors are in play. studies in Kiel, at the University Given the time it would take to implement Given that, the government’s focus on getting of Miami, and at the Eberhard- any reforms and for benefits to filter through people back into work makes sense, he said. The average increase in salary per worker those who argue now is the time to Barcza said the markets would continue to Karls University in Tuebingen. to the budget and the wider economy, “For the first time a government is trying a since 1979 is only 7%, Barcza said. “For cut spending and deficits, and those be positive in the run up to the government Mr. Hornung is a Certified EFFAS Hornung said no announcement should be long-term change, and if they do not change passive income, we can say that the average who demand stimulus packages to announcement on structural reform and the Financial Analyst (CEFA). expected before “the second half of this year this, the whole economy is unsustainable.” per capita income now is more than 100% boost growth. For Hungary Hornung forint would probably continue to strengthen, at the earliest”. more in real terms what it was in ’79.” Many predicted GDP growth of 2-3%. “We at least until the central bank meeting on Barcza previously worked as Barcza he had long wondered why the previous governments had attempted fiscal do see hopeful signs that domestic February 21, when he believed the rate economist at the Finance Ministry “The rational for what we said in December workforce was shrinking to such an extent. reforms, some of which had looked good on consumption is growing, and obviously setters would hold the current rate. He then and the Debt Management Agency was based on two main rating drivers, He eventually found the answer when paper, but within a couple of years all had tax cuts help that.” But the country would predicted the markets would be disappointed and as chief economist at ING increasing concern about fiscal stability political advisor Péter Tölgyessy produced disappointed, he continued. “I think it is never entirely be master of its own fate, in whatever the government announced and Hungary. The Economic Policy and Hungary’s exposure to external factors some damning statistics. “It doesn’t make because they did not tackle this issue.” he warned. “Hungary is a small open perform poorly for three to six months, and department of the Budapest compared to its ratings peers,” explained sense to work in Hungary,” the K&H analyst economy, so the government can come the forint would weaken again. “But don’t Economic University has recognized the analyst. “The rating is well positioned said. People had instead worked out it was The debate covered ground as diverse as up with an institutional setting that helps worry, because in July or August we will reach his work with the Kaldor prize. now. If you look at the budget balance as a better to pick up a “passive income” from the crisis within the Euro area and the growth but the problem is what happens the end of the negative period and then you good fiscal indicator, we would expect to pensions and other state benefits. ongoing international tussle between beyond the realm of the government.” can invest all your money!” VOICE american chamber of commerce in hungary AmCham news 35 Getting the most out New members on board of the EU presidency corporate

AmCham board member Eszter Szabó was on the panel for the inaugural AstraZeneca Kft. CEZ Magyarország Kft. Grayling Espresso Forum, held in January 2011. The subject of the first event in the series was the Communication Challenges and Opportunities of Hungary’s Managing Director: Ms. Jennifer Winter Managing Director: Mr. Gábor Hornai EU Presidency, with speakers from the business sector and the governmental Address: 1113 Budapest, Address: 1053 Budapest, Bocskai út 134-146 B. ép. II.em. Károlyi Mihály utca 12. communication heads from Slovenia, Poland and Hungary – the previous, Phone: +36 1 883-6500 Phone: +36 1 266-9324 Fax: +36 1 883-3336 Fax: +36 1 266-9331 current and next EU states to hold the rotating six-month Presidency of the Web: www.astrazeneca.com E-mail: [email protected] Web: www.cez.hu Council of the European Union. AstraZeneca is a global, innovation-driven, integrated biopharmaceutical company. CEZ Group is one of the largest European energy companies, the leader in the Czech Internationally we discover, develop, manufacture and market prescription medicines electricity market with a vision to be the leader in the power market of Central and for six important areas of healthcare, which include some of the world’s most serious Southeastern Europe. illnesses: cancer, cardiovascular, gastrointestinal, infection, neuroscience, and In December 2007 CEZ Group and MOL Group signed a joint venture agreement and yörgy Urkuti, head of respiratory and inflammation. In Hungary we conduct R&D on new and innovative created a strategic alliance. The first major investment is the planned construction of medicines as well as distribute AZ medicines that make meaningful a difference to 800 MW CCGTs at the refineries of the MOL Group in Bratislava (Slovakia) and the the Communications patients’ health. We employ approximately 140 people in Hungary. Százhalombatta (Hungary). Department for the EU G Presidency at the Ministry of Foreign Affairs, highlighted the challenges for Hungary during its presidency. He emphasized that it is an Elcoteq Hungary NXP Semiconductors opportunity to bring the country’s citizens Electronics Ltd. Magyarország Kft. closer to the values and benefits of the Union, particularly employment and the creation of new jobs, as well as enhance Eszter Szabó, Managing Director: Managing Director: Mr. Zoltán Körmöci Hungary’s international reputation. AmCham board member Mr. Matthew Robert Fulton Address: 1117 Budapest. Budafoki út 91-93. Address: 7632 Pécs, Szilva u. 1-3. Phone: +36 1 382-1900 Phone: +36 72 509-100 Fax: +36 1 382-1980 Matjaž Kek, head of the Communication Fax: +36 72 509-115 Web: www.nxp.com Projects Division at the Government on the role of key business players in “It is critical that governments involve big E-mail: [email protected] Web: www.elcoteq.com NXP Semiconductors N.V. (Nasdaq: NXPI) provides High Performance Mixed Communications Office in Slovenia, pointed incorporating the EU presidency into their investors as well as business associations Signal and Standard Product solutions that leverage its leading RF, Analog, Power Elcoteq SE is the global Life Cycle Service Partner for high-tech product and Management, Interface, Security and Digital Processing expertise. These innovations out that the communication element of the own strategy and corporate objectives. “If like AmChams as partners, because they service companies. Elcoteq has a proven track record in electronics manufacturing are used in a wide range of automotive, identification, wireless infrastructure, lighting, presidency, although of great importance, emphasis is put on the similarities of the two all have the same interest in building services and a global factory network close to its customers coupled with modern industrial, mobile, consumer and computing applications. Headquartered in Europe, manufacturing equipment and consistent systems and processes. the company has approximately 28,000 employees working in more than 25 countries is not enough in itself. Meaningful and countries’ objectives, like the creation of a positive perception and boosting the In Hungary, Elcoteq has manufacturing operations in Pécs, operations were set up and posted sales of USD 3.8 billion in 2009. appropriate content must also be generated. sustainable energy sector, they can succeed development and competitiveness of in Pécs in 1998. We manufacture electronics for our communications technology customers. We have more, than 3,300 employees. This makes Elcoteq Hungary the He also pointed out that Slovenia missed the in achieving one-year progress in the themes Central and Eastern Europe,” added largest industrial employer in the city of Pécs. opportunity of engaging the business sector they manage.” Szabó. AmChams of the region (Czech non-profit in dialogue during their EU presidency. Republic, Hungary, Slovakia and Poland) Attila Lerch, Head of Citizenship at started cooperating on strategic issues five The Polish speaker, Joanna Skoczek, Microsoft, had a more specific focus. “In years ago, during the first Regional Tax director of the EU Presidency Coordination my opinion, we can only talk about a Conference, a common ground to build Tebodin Hungary Kft. Humán Erőforrás Department at her country’s foreign successful Hungarian Presidency if we further joint efforts on. Another example Alapítvány ministry, said that it began its preparations get across at least one topic in the next six is the Regional Energy Forum, initiated in 2007. Amongst other themes, she said, months,” he said. by GE, a platform for multi-stakeholder the Polish program is being built around dialogue, that aims to leverage the size of Managing Director: Mr. Károly Ecker intellectual capital, the internal market and “The seminar clearly demonstrated these countries together, as a unified region Address: 1119 Budapest, Bikszádi u. 6/a. Managing Director: Ms. Éva Mária Tóth Phone: +36 1 205-9601 Address: 1021 Budapest, Hűvösvölgyi út 54. energy efficiency and security. that the EU Presidency offers unique to draw FDI to CEE on the one hand, and Fax: +36 1 205-9622 Phone: +36 1 365-4312 opportunities for the corporate world, also to create a more sustainable energy E-mail: [email protected] Fax: +36 1 365-4312 Web: www.tebodin.com E-mail: [email protected] “From a communications point of view, and especially Hungarian companies, sector. “AmCham Hungary will use these Web: www.hea.hu Hungary and Poland should work closely to raise issues both at a national and tools and will keep looking for new ways With offices in Budapest and Szeged, Tebodin Hungary Ltd. is the Hungarian subsidiary of Tebodin Consultants & Engineers headquartered in The Hague, Our mission: Together for quality customer care. together, building on one another to supranational level in Brussels. However, to help get the most out of the potentials of n to develop the profession and education Netherlands. Since its establishment in 1990 Tebodin Hungary has developed into one n of the largest planning, consultancy and engineering offices for industrial, commercial to support the cooperation between company and institutes leverage the opportunities offered by the EU strategic thinking and plenty of planning this region and also the opportunities the n and real estate projects furthermore energy audits in Hungary. We provide complete to operate Call Center Club, Partnering Conferences, Budapest Calling Call Center Expo presidency,” said Eszter Szabó, GE Corporate is required for this opportunity to be EU presidency provides on a national and scope of design, engineering, design coordination, entire project management and n consultancy services during the preparation, construction and commissioning of the to help those with disabilities Communications and Public Affairs Leader efficiently leveraged,” concluded Russel also a corporate level,” said Peter David, green-field and brown-field facilities. Established in 2002 by, Magyar Telekom, OTP, Telenor, Transcom for CEE & Turkey, in the panel discussion Patten, CEO of Grayling Brussels. CEO of AmCham Hungary. VOICE american chamber of commerce in hungary AmCham news 37 New members on board business

Absolut Media Kft. Alpiq Energy SE Molaris Branch Office in Managing Director: Mr. Tamás Botka Hungary Address: 1022 Budapest, Alsó Törökvész út 9. Phone: +36 1 398-0344 Fax: +36 1 398-0345 Web: www.amedia.hu/index.php Managing Director: Mr. Ferenc Gajdos Address: 1138 Budapest, Váci út 135-139. A. Managing Director: Phone: +36 1 238-0978 Mr. Attila Martényi Fax: +36 1 238-0979 Address: 1085 Budapest, Kálvin tér 12. Absolut Media, the owner of the Budapest Business Journal, is the leading English E-mail: [email protected] Phone: + 36 1 886-3400 language business publisher in Hungary, both in terms of print publications Web: www.molaris.hu and online. It also provides a wide portfolio of corporate news and content Fax: +36 1 886-3401 management services. E-mail: [email protected] Since 2006 Molaris Kft is an upcoming European software development and Web: www.alpiq.hu IT consultancy organization. Our main objective is to be an authoritative and trustworthy member of the IT market, delivering outstanding quality of services. We Alpiq Energy SE is part of the Swiss energy group Alpiq Holding Ltd. It is a European wish to establish and maintain a mutually prosperous business relationship with our company established under EU rules and is one of the largest international energy customers and partners. trading companies in CEE. The Hungarian Branch Office’s main focus is on offering customised services and solutions to industrial end-customers.

Nextent Hárskúti Megújuló Informatika Zrt. CFD.HU Kft. Energia Központ Kft.

Managing Director: Dr. Tamás Lajos Address: 1117 Budapest, Gábor Dénes u. 2. INFOPARK D. Managing Director: Mr. László Lukács Address: 1134 Budapest, Phone: +36 1 209-9025 Managing Director: Mr. Károly Radzik Váci út 45. G. ép. IV. em. Fax: +36 1 209-9026 Address: 9442 Hárskút, Kossuth Lajos u. 25 Phone: +36 1 246-2907 E-mail: [email protected] Phone: +36 1 225-7350 Fax: +36 1 239-0133 Fax: +36 1 225-7351 CFD.HU provides engineering consulting services to companies wishing to optimize E-mail: [email protected] E-mail: [email protected] the fluid dynamics of their systems. Web: www.nextent.hu As the Hungarian distributor of ANSYS CFD and FEM simulation softwares, a close Web: www.megujulo.info affiliation with the Budapest University of Technology and Economics has developed Our company offers leading IT consultancy, system development and system and we are able to guarantee a high level of precision. Our renewable energy demo farm serves as a laboratory for energy experiments and testing of equipment. Our center will play a pivotal educational role in rolling out integration services for enterprises and medium-sized companies. Our main fields of renewable solutions. Our extensive experience allows us to provide energy efficiency activities are business decision supporting, data warehouses, innovative technologies, consulting services, as well as issue Energy Certificates for buildings. business process support and integration solutions, consultancy, application support, project management and the development of individual applications.

Gobert, Fest & Partners Attorneys Trivium Oktatási DEVISE Hungary Kft. at Law / Taxand és Kereskedelmi Kft.

Managing Director: Mr. Péter Dara Address: 1222 Budapest, Szigetvári utca 44. Managing Director: Dr. Arne Gobert Phone: +36 20 383-9689 Address: 1051 Budapest, Roosevelt tér 7-8. E-mail: [email protected] Phone: +36 1 270-9900 Managing Director: Mrs Éva Szöghi Gáspár Web: www.devise.hu Fax: +36 1 270-9990 Address: 6724 Szeged, Tündér u. 12 E-mail: [email protected] Phone: +36 62 573-572 DEVISE Hungary supports leaders and their companies in being successful based Web: www.gobertfest.com Fax: +36 62 573-573 on the knowledge and information sharing. Tools: Research and survey (club-survey, E-mail: [email protected] competitor audit, employee and client satisfied level and engagement survey) Gobert, Fest&Partners Attorneys at Law / Taxand is a full service business law firm Web: www.trivium.hu Leadership development, training, Coaching, consulting (management audit, and among the top ten law firms in Hungary, providing multidisciplinary legal and organization development, HR and communication), Events (business club/forum, tax services with a fully integrated tax team in eight different languages. GF&P Trivium Ltd. provides customs brokerage services on the services on the external conference, workshop, company day). operates in cooperation with Luther Lawfirm, and is exclusive Hungarian member borders of Hungary. The firm carries out import and export customs clearances on of Globalaw and Taxand. the Hungarian borders. VOICE american chamber of commerce in hungary AmCham news 39 AmCham events – photo coverage

6th Regional Tax Conference March 08, 2011 Budapest Marriott Hotel Speed Business Meeting February 09, 2011 Sofitel Budapest Chain Bridge

AmCham Marketing School with Márton Jedlicska, AmCham Associate Creative Podium Debate Director, Kirowski with Dietmar February 28, 20110 Hornung and AmCham Conference Room György Barcza, Leading Analysts February 08, 2011 Budapest Marriott Hotel AmCham-HVCA- BME Start Your Business Series February 08, 2011 Budapest University of Technology and Economics VOICE american chamber of commerce in hungary AmCham news 41

AmCham-T.G.I. Friday’s Super Bowl XLV Party February 06, 2011 T.G.I. Fridays Fashion Street

Seminar and Cocktail: Human resource and organisational development from EU funds January 24, 2011 Kempinski Hotel Corvinus Budapest

AmCham Foundation Charity Movie Morning: Tangled in 3D December 18, 2010 Cinema City Arena Plaza

AmCham-PwC Career School with Ági Pataki, Former Model, Producer, Filmpartners Kft. February 01, 2011 AmCham Conference Room

AmCham-PwC Career School with Dr. Dénes Kemény, President and Trainer of the Hungarian National Men’s Water Polo Team January 11, 2011 AmCham Conference Room AmCham Staff

Chief Executive Officer VOICE american chamber of commerce in hungary Péter Dávid A working society [email protected] Phone: +36 1 266-9880 Chief Operating Officer, for all abilities Committee Coordinator László Salva Vita Foundation Metzing

People with disabilities in Hungary have very little chance [email protected] to find a job in the open labor market. Only about 9% Phone: +36 1 266-9880/316 work in normal jobs, while the European average is Membership Manager Csilla 35-40%. This is a huge disadvantage both for disabled Pál individuals and the economy, and one that the Salva Vita Foundation is dedicated to overcoming. [email protected] needs counseling possibilities, training ses- Phone: +36 1 266-9880/319 sions and workshops for employers. By Events Manager screening employers, the foundation can Anita answer questions such as which disabled Árvai target groups could be drawn into what fields of work, after what type of prepara- tory steps, and in what sort of time frame. [email protected] Phone: +36 1 266-9880/325 The foundation has even introduced a Disabil- Financial Issues, Charity ity-Friendly Workplace symbol and award in order to help match disabled job seekers with Erika Bosnyák employers willing to employ them. The award Katalin Veg is given to those who make efforts to develop Salva Vita Foundation the recruitment, employment, retention and

training of disabled employees. [email protected] Phone: +36 1 266-9880/312 Marketing and Communications It is a battle that is fought on many fronts. The Last year the Employers’ Forum Association Manager Work Experience Program introduced to Hun- for Equal Opportunities was established gary by the foundation, for example, is unique in with the main goals of drawing employ- Zsófia Juhász the European Union, and prepares people with ers’ attention to the benefits of employing learning disabilities for employment in the open socially disadvantaged people; carrying out labor market. Potential employers who show activities that shape the inclusive attitudes of interest in taking on people with disabilities can society; and provide professional support in [email protected] experience the work capacity of these people equal opportunities. Phone: +36 1 266-9880/360 without any liability if they offer internship posi- Project Manager tions to the program. AmCham has been working closely with Ildikó Salva Vita for several years. The first step Bryják Supported Employment is a special labor service was the Annual AmCham Diversity Confer- that helps find work for people living with learn- ence, where the foundation provided profes- ing disabilities, autism and visual impairments. sional support and ensured that the discus- The foundation provides assistance to employers sions were relevant for the business sector [email protected] Phone: +36 1 266-9880/310 who intend to employ such people by: recom- and NGOs at the same time. “This fruit- Events & Project Manager mending appropriately trained employees with ful cooperation was followed by a deeper disabilities; on-the-job training of clients with involvment, when AmCham become a part- Ildikó Takács- disabilities and supporting their inclusion at the ner of the Disability-Friendly Workplace Berka workplace; providing continuous follow-up dur- program,” says AmCham CEO Péter Dávid. ing the whole period of employment. “We believe it is a key factor of competitive-

ness that companies increase the disabled [email protected] Salva Vita also provides up-to-date information workforce and at the same time enhance the Phone: +36 1 266-9880/329 about disability issues and provides tailored-to- overall employment rates in the country.” AmCham office contact info H-1051 Budapest, Szent István tér 11. Further information about the foundation can be found on www.salvavita.hu Phone: +36 1 266 9880 Fax: +36 1 266 9888 Email: [email protected] website: www.amcham.hu