american chamber of commerce in hungary VOICEVol I. Issue 09, september 2012 ENtrepreneurism and innovation in HuNgaRy MORE INSIDE: Olympian glow of gold Managing recovery 3 Contents 4 introduction 14 ANALYSIS 30-31 AmChAm newS Dear Members and Friends… Budapest bourse sees drastic drop in turnover Managing recovery 5 PEOPLE IN ThE NEwS 32 AmChAm newS a more proactive future? 16-20 COVER STORY Europe still relevant Innovation and entrepreneurism: Hungary’s route map to success 6 PEOPLE IN ThE NEwS 33 AmChAm newS Making the law human Regional amChams at Balaton 22-23 LIFESTYLE time Out Budapest AmChAm newS 7 people IN ThE NEwS 34 Olympian glow of gold Chamber Corner: Romania 24-25 lifestyle 36-37 AmChAm newS 8 InsidE OuT Nick Kós’ Budapest vulnerable arts? New members on board AmChAm NEwS 38-41 AmChAm newS ANALYSIS 26-27 9-11 Leadership resilience Business news roundup photo coverage 42 AmChAm newS 12-13 analisys 28-29 AmChAm NEwS Hungary officially in recession Flagship of the future CEO’s note Voice is published on behalf of the American Chamber of Commerce by Absolut Media Zrt., Madách Trade Center, 1075 Budapest, Madách Imre út 13-14., Building A, 8th floor Editor-in-chief: ROBIN MARSHALL ([email protected]) • Contributors: GABRIELLA LOVAS, ROBIN MARSHALL, ANDRÁS TÖRÖK, Ágnes Vinkovits, Time OUT BUdaPest Photography: András HAJnal, LÁZár TodoroFF • Design: ABSOLUT DESIGN STÚDIÓ ([email protected]) • Art director: Tamás TárCZY • CEO: TAMÁS BOTKA Advertising: ABSOLUT MEDIA Zrt. ([email protected]) • Sales and Marketing: DÓra Horváth ([email protected]) Product Director: Vanda TaletoviCS-Vedres • Subscriptions: [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) HU ISSN 2062-1817 VOICE american chamber of commerce in hungary Introduction people in the news 5 the president’s Letter pEOpLE ummer went by fast at employment, data protection and national AmCham Hungary as we energy strategy. a more proactive future? have been working behind the S scenes all season preparing for The brief from the Taxation committee upcoming advocacy issues and chairman offered a comprehensive analysis Hungary needs to develop a strategy to change from best practices and learn from each others’ events. Several committees held their meetings of the last 24 months regarding taxation mistakes. This will be the main factor that in the hottest months of the year and two changes: invitees included Patron and being reactive to active in integrating into the global will determine the pace of development, of them – Regulatory and Taxation – even Corporate CEOs and CFOs as well as economy, along with renewing its country brand to and the role these countries can play in the decided to invite others from the membership registered committee members. attract and retain FDI, says GE’s Eszter Szabó, who European and global stage” she says. to report on progress and talk about next steps. The board – unlike in previous years – held Now, at the end of a hot summer, we are recently received the Knights’ Cross Order of Merit of “We talk a lot about increasing meetings in July and August, too, but please all getting prepared for the last quarter of the Republic of Hungary. competitiveness, but it has two factors: one is do not worry; we did have a chance to go for a the year lying ahead. For elected officers the ability to compete, the other the ability to short vacation as well. of the chamber, it also means the most collaborate. According to a study the first is important executive body, the Annual If you are interested in running for a board zabó, who joined GE in 1996 55% of the total, the other 45%.” The Regulatory committee reviewed the General Assembly, being convened, with a position, please note that the deadline after a career in government legislative agenda of Parliament for the fall partial renewal of the Board of Governors. for submission to the AmCham office, and a period of study in the GE, with businesses in Czech Republic, season and discussed at its July meeting the As you may know, this year my AmCham including an expression of interest and S United States, is the company’s Poland and Romania, as well as Hungary, focal points for AmCham. The committee presidential term will end, without the other related nomination materials (please corporate communications and employing a total of 26,000 staff, very much looks forward to receiving the possibility of re-election. Four positions check the elections rules) is 2PM local time public affairs leader for CEE. That regional has developed a number of regional opinion and expertise of the members, (Members at Large) will also be open for on Monday, November 5 2012. overview, coupled with her background, initiatives, often partnering AmChams, and will ask for your inputs when the election or re-election. I strongly encourage gives her a wider worldview than many. It such as regional energy forums and AmCham position is discussed on the you to run for opening board positions or If you have any question regarding nominations, please is not that she isn’t a proud Hungarian; it is annual tax conferences. Perhaps most contact Robert Peaslee, chairperson of the AmCham main advocacy issues such as changes to the presidency, as, in my opinion, it is a very Elections Committee (phone: +36/1/475-4090, simply that there is more to her than that. notable, though, is the GE Foundation the tax regime, contributions to vocational rewarding way to spend your volunteer hours, e-mail: [email protected]) or László Metzing Scholar Program, which aims to develop at the AmCham office at +36/1/428-2082 or at ESZTer SZABÓ was presented with the training, copyright issues, how to foster both on a personal and at a professional level. [email protected]. “First I am a human being, then a woman, leadership, community involvement and Knights’ Cross Order of Merit in March then a Hungarian, then someone from a regional network for a new generation 2012 for the scholarship and innovative Central and Eastern Europe, and finally I am education programs she has pioneered, of leaders, and celebrated its 10th AmCham Member’s Board a global citizen,” she explains. “But these are as well as her role in last year’s Ronald anniversary in Budapest on July 9. “It like the layers of an onion, you cannot take Regan centenary events in Hungary. was developed in Hungary, and then President First ViCe President seCond ViCe President seCretAry treAsurer István David Dr. andrea péter one in isolation from the others.” She was the inaugural winner of the expanded in Poland, Czech Republic and HavaS g. yOuNg JáDI FátH IIE’s European Award of Excellence in Romania,” Szabó explains. She describes NéMEtH GDF SUEZ bpv Jádi Energia December 2011, and is an honorary pro- Ernst & Young Amrop Kohl- She says her country has lost the advantages it as a “high impact program”, run by Németh Holding 1136 mann & Young fessor of Budapest Business School. She Ügyvédi Iroda Hungary Zrt. Eszter utca 6/b, it enjoyed in the aftermath of successful the Institute of International Education. Budapest, 1051 Budapest, 2440 has been a board member of AmCham 1022 Budapest Váci út 20. Vörösmarty Százhalombatta, regime change in 1990. “To build the Hungary for the past two years. The GE Foundation has spent $2 million tér 4. Csenterics u. 8. perception of a location as favorable for FDI on 430 students, and put in 2,500 GE [email protected] [email protected] [email protected] [email protected] Phone: +36 1 451-8701 Phone: +36 1 391-0950 Phone: +36 1 429-4000 Phone: +36 23 502-400 takes a long time, but Hungary was able to leadership hours. Fax: +36 1 391-0951 Fax: +36 1 429-4001 do that from the early ’90s until 2001. Then Crucial to the development of an BoArd MeMBers At lArge we had 9/11 and the world changed. After atmosphere that attracts inward investment Seeing an opportunity in the lack of William Norbert László Márk BENKő FOgaRaSI DRaJKó HEtéNyI that, Hungary was able to give an answer to is a sense of equilibrium. Disagreements firsthand information on the region Morgan Stanley Graphisoft SE Rózsakert Hungary 1031 Flextronics the questions posed by the new situation, but should be settled within countries instead available in English, the company launched Medical Center Analytics Ltd. Budapest, International it could have been better.” of being conducted in international forums its GE for CEE thought leadership blog, 1026, Budapest, 1095 Budapest, Záhony u. 7. 1183 Buda- Gábor Áron u. Lechner Ödön (Graphisoft pest, Hangár unless there is no other way, she argues. The along with a twitter feed, LinkedIn group, 74-78. fasor 8. Park) utca 5-37 Since the political changes, Hungary’s international arena tends to simplify, and Facebook page and YouTube channel; its [email protected] [email protected] [email protected] [email protected] Phone: +36 1 225 7350 Phone: +36 1 881-4113 Phone: +36 1 437 3000 Phone: +36 30 677 5029 approach to attracting FDI has been thus misunderstand, differences of opinion. mission is to provide a platform for dialogue Fax: +36 1 881-3700 reactive, Szabó says; it took what was It also creates a long lingering negative for the economic prosperity of 130 million BoArd MeMBers At lArge ChieF exeCutiVe oFFiCer offered.