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Amcham Hungary us HUNGARY A PUBLICATION OF THE AMERICAN CHAMBER OF COMMERCE IN HUNGARY JUNE 2009 – VOLUME XX/5 A balancing FISCAL act DISCIPLINE, LESS DEBT, MORE GROWTH Powers Holiday Taking of the PC at home? the burden DESKTOP BOOKINGS now GRIDS PROVIDE ABROAD AMCHAM FORUM AFFORdaBLE STILL STRONG WITH FINANCE INNOVATION DESPITE MINISTER CRISIS PÉTER OSZKÓ ISSN 1417 1864 Online 1417 3778 1290 Ft € 5 us HUNGARY us HUNGARY THE A CHANGINGSECOND Sightseeing CLIENTELEREGIONAL FOR HUNGARIAN Cooperation TOURISM?CooperationENERGY t a k i n g FORUM IN ht euf ut re us BUDAPESTHUNGARY t a k i n g THE s h a p e SECOND REGIONAL s h a p e ENERGY C r i s i s FORUM IN m a n a g e m e n t BUDAPEST HOW MUCH CAN THE BAJNAI GOVERNMENT DO? Trying to H A N D L ICRISIS N G D E B A T E p o T HEATS UP performers Ultra- r e g a ni luxury competitiveness Support for is out training Log on to new jobs and Looking businesses for the time to buy Gaining Contents ground A frustrated Push-button Marketing optimist purchases the 02 Letter from the AmCham President Mangalica 03 03 In focus: A balancing act EditoR IN chief • Fiscal discipline, less debt, more growth Henk Hirs 06 Farm wars II DeputY editoRS • Codex: the wrong instrument to address real problems Marisa Beahm, Runa Hellinga, Drew Leifheit 09 Doing well • Quality and service are key for repair shops Associate editoR Nick Robertson 12 Powers of the PC 06 • Desktop grids provide affordable innovation Photo editoR ★ Róbert Karádi Contents 14 Providing a normal existence • Winner of €1 million for disability project DesigN Dominika Kiss 16 Not just education • Hungarian Fulbright program considered the best in Europe TYpogRaphY György Éger 1 12 18 Mixed results • The Czech EU presidency CONTRibutiNG WRiteRS Beáta Balogh, Tamás Kern, Kornélia Business 20 Analyst views Magyar, Kornél Sarkádi Szabó, Hungary • Kornél Sarkádi Szabó (Cashline Securities) on the role of András Török rating agencies • Tamás Kern (Századvég Institute) and Kornélia Magyar PHOTO CONTRIBUTORS (Progressive Institute) on political developments BH-PXB, Barna Burger, Runa 14 Hellinga, MTI, Péter Kőhalmi, Balázs 24 May in review Nagy, Reddot, Reuters, stockxpert 28 Culture and lifestyle PUBLISHING DIRectoR • Where do Hungarians go for holiday? Margit Kohanecz • András Török: Seven traditional shops that survived • Dining Guide: Stand Bistro, a good alternative Sales maNageR • June/July Happenings Krisztina Otto 28 (+36.30 664 9647) 34 AmCham news • Forum with Minister of Finance Péter Oszkó PRoductioN maNageR 34 • Patron interview with Béla Bánhidi, Emerson Process Péter Wunderlich Management • AmCham committees introduce themselves PublisheR • Seminar with office furniture company Kinnarps Hungary András Wiszkidenszky • Conference on media and advertising law • Forum with EU Commissioner László Kovács BusiNess HUNgaRY is published • Events, new members, staff 10 times A YeaR BY PRINTXBudaVÁR ZRT. H–1061 Budapest, Király utca 16 Phone: (+36.1) 887 4848 SUBSCRIPTIONS Call (+36.1) 887 4848 or write to [email protected] ADVERtisiNG INquiRies Don’t forget to mention name, street, city and postal [email protected] code, country, telephone number and e-mail. Prices: Hungary Ft 5,500/yr Europe €33/yr LetteRS to the editoR US and elsewhere $47/yr [email protected] AMCHAM BOARD OF GOVERNORS Dear Members PRESIDENT DR. GusztÁV BieNERth T: (36 1) 266 9880 Fax: (36 1) 266 9888 [email protected] and Friends FIRST VICE PRESIDENT DR. PÉteR PAÁL AS THE NEW GOVERNMENT has only been in office for a few weeks, it is still early to judge IBM Hungary 1117 Budapest, Neumann János utca 1 the performance of the “crisis management government”, but we do expect it to make T: (36 1) 382 5613 Fax: (36 1) 382 5501 fundamental, clear, and quick decisions that will help the economy grow and will boost [email protected] Hungary’s competitiveness. I am optimistic, as the new Minister of Finance, Péter Oszkó, SECOND VICE PRESIDENT and the new Minister for Economy, István Varga, are both longtime members and associates DR. LÁszlÓ SzakÁL of AmCham. The new Minister of Finance was also a member of our board; therefore, he is EDS Hungary 1114 Budapest, Bartók B. út 43−47 familiar with our priorities and focus. T: (36 1) 279 8000 Fax: (36 1) 279 8001 I am looking forward to the coming weeks and months, as our aim is to start a dialogue [email protected] with the new government, not only to find ways to manage the financial crisis, but more SECRETARY TREASURER importantly, to put Hungary back on the path to growth. DR. ERzsÉbet ANtal In May, we jointly organized a conference with the Hungarian Competition Office Tesco Global Companies Plc. AmCham: Letter from the President on advertising from the angle of competition, a key area that is rarely discussed in such 2040 Budaörs, Kinizsi u. 1−3 ★ Fax: (36 23) 449 237 a context. I was especially pleased by the participation of many advertising professionals [email protected] and also by the fact that the conference created a platform for meaningful and intelligent 2 debate. This forum well exemplified how we can add value to our memberships and can also BOARD MEmbERS AT LARGE LÁszlÓ M. BalÁssY represent the views of the business community to positively influence future legislation or Citibank Europe Plc the practices of the Competition Office. Business 1052 Budapest, Szabadság tér 7. We will strive to have similar forums in the future, as I believe that generic forums are Hungary T: (36 1)374-5471 Fax: (36 1)374-5445 [email protected] no longer sufficient or necessary. Specific areas need to be addressed where you can voice your opinion and also contribute to the solution. FERENC BÁti We must say farewell to some of our most important and valued partners at the US Individual Member [email protected] embassy, as Patricia Gonzalez, Stephen Knode, and Michael Hurley are leaving Hungary soon. We have had an excellent working relationship with them during the past years, BARbaRA BRill and now we would like to thank them for their great support. Until the arrival of the new Sláger Rádió ambassador, the Embassy will be run by Chargé d’Affaires Jeffrey Levine, whose great 1011 Budapest, Fő utca 14−18 expertise guarantees there will be a smooth transition for the new staff arriving later in the T: (36 1) 888 3030 Fax: (36 1) 888 3019 [email protected] summer, when we will also introduce them to the AmCham community. As we are approaching the holiday season, I wish all of you a well-deserved vacation; IstVÁN HAVas but of course, AmCham will not sit still. We are working hard to prepare the membership, Ernst & Young 1136 Budapest, Váci út 20. the board, and our staff for a new season of improved business, social, and political activity T: (36 1) 451-8700 Fax: (36 1) 451-8199 in Hungary where the challenges will not lessen, but will most likely increase in the future. [email protected] CHRistopheR MattheiseN Magyar Telekom Plc. 1013 Budapest, Krisztina krt. 55. Best regards, T: (36 1) 458 7100 Fax: (36 1) 458 7105 [email protected] Gusztáv Bienerth DR. Csaba Szokodi Johnson & Johnson Kft. 2045 Törökbálint, Tó Park T: (36 23) 510-919 Fax: (36 23) 510-929 [email protected] Our aim is CHIEF EXECUTIVE OffICER PÉteR DÁVid to start a AmCham 1051 Budapest, Szent István tér 11 T: (36 1) 266 9880 Fax: (36 1) 266 9888 dialogue [email protected] EX OffICIO MEmbERS with • Les Nemethy • Patricia Gonzalez • Péter A. Hegedűs • András Sugár • Charles A. Huebner the new • Péter Kraft • László Czirják • Robert C. Knuepfer Jr. • Edward J. Bush Jr. • Theodore S. Boone • Steve Bina • Michael J. Shade government. A balancing FISCAL DISCIPLINE, LESS act DEBT, MORE GROWTH As soon as the world economy starts picking up again, Hungary can – within a few years – reach higher growth rates than generally forecasted, while at the same time bring down its relative debt burden substantially. But sustained fiscal discipline is key, says economist Gábor Oblath, former member of the Monetary Council of the Magyar Nemzeti Bank and one of the three parliamentary elected members of the independent Fiscal Council, the new body that will ★ In focus monitor government compliance with fiscal rules from the second half of this year. BY HENK HIRS UNGARY ’S GROSS STATE debt stood at 72.4% of With hindsight, it can be said with certainty that building up GDP at the end of 2008, up from 65.8% in 2007 such a high debt is very harmful, Oblath continues, as it means, and 52.1% in 2001. Clearly, Hungary has been living for example, that Hungary cannot currently afford a counter- 3 Hwell above its means, so its government now has to cyclical fiscal policy – financing a stimulus for the economy – as repay (roll over) roughly Ft 315 billion a month (Ft 3,800 billion is being done by countries like Germany, France, Slovakia, or the or more than €13 billion a year). Interest payments on public debt Czech Republic. “We have hardly any room to maneuver,” he says. Business amount to Ft 1,225 billion or €4.2 billion in 2009, so total debt “Financing a welfare state through foreign loans is a recipe for Hungary service obligations reach about €17.2 billion (roughly 19% of GDP) disaster, while a low public debt is a buffer against future shocks.” in 2009. A huge burden, “but this debt problem is not something that came over us as a kind of natural disaster, it was the result of certain decisions by policy makers,” says Oblath.
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