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Retailers Hit by Special Taxes and Price Caps

With a faltering economy resulting in January-May retail sales increasing by just 2.1% year-on-year, the outlook for the sector would have been difficult anyway. But government mandated price caps imposed in March have made the outlook even grimmer.  12

Penny Hungary Only Selling Hungarian Watermelons This Year

It isn’t summer in Hungary without watermelons. Retail chain Penny has announced that, since July 7, it has been selling fresh, open-field watermelons sourced exclusively from Hungarian producers.  14

The Art of Life in Sultry Budapest

The Art Nouveau exhibition “Art of Life” at the splendid Hungarian National Gallery is the sequel to its much-visited Art Deco exhibition of 2022. Spending an afternoon in the cool, marble interior of the National Gallery is a fine way to soak up art and escape the heat of the Budapest summer.  21

New Brands Welcome

Anita Csörgő, director and head of retail at Colliers, gives us her take on the retail real estate market in Hungary. How is it performing, what has been the impact of the government-mandated price cuts and the ‘Plaza-stop’ law, and what new brands are entering the market? 13

The National Bank of Hungary left its key rate unchanged at its latest rate-setters’ meeting, but caused a slight surprise by slightly reducing the required reserve ratio. Analysts believe that the chances of any interest rate cut this year are diminishing.  3

EDITOR-IN-CHIEF: Robin Marshall

EDITORIAL CONTRIBUTORS: Luca Albert, Balázs Barabás, Éva Bodor, Zsófia Czifra, Kester Eddy, Bence Gaál, Gergely Herpai, David Holzer, Gary J. Morrell, Nicholas Pongratz.

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THE EDITOR SAYS

SUMMER HEAT AND A SUBDUED ECONOMY

Perhaps it is the clammy effect of the summer heat, but there seems to be something of a stupor hanging over the Hungarian economy at present. Here’s a selection of headlines from this issue: “National Bank of Hungary Remains ‘Cautious and Patient,’” “Sustainability Experts Grapple with Headwinds, Tailwinds, Seismic Shifts in Budapest,” “Hungarian Employees Awaiting Better Timesto Change Jobs,” and “Retailers Hit by Special Taxes, Price Caps, Waning Purchasing Power.”

In the interests of delivering some kind of balance (and not wishing to join the ranks of what one former British Prime Minister of recent vintage dismissed as “the doomsters and the gloomsters”), I will happily admit that our Real Estate Matters column rejoices in the headline “Dynamic Growth Continues in Hotel Market.” So, it isn’t all, well, doom and gloom, but you get the point.

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Others can feel that air of economic unease. Many of the analysts quoted in our Macroscope column, based on the latest rate setters’ meeting of the National Bank of Hungary (MNB), think it is increasingly unlikely that we will see a cut this year: the base rate has been held at 6.5% since September 2024.

The governor of the MNB, former Minister of Finance Mihály Varga, has implied that macroeconomic data for the second quarter also indicates a subdued economic performance; the economy could essentially stagnate, he implied. It seems fairly nailed on that Hungary won’t hit the growth targets initially laid out by the government, and much of what will influence the development of the markets here depends on matters elsewhere, such as geopolitical tensions and trade tariffs.

Germany has performed slightly better than expected, though far from “going gangbusters.” It isn’t much to hold on to, but given the importance of the German economy to Hungary, perhaps it does offer a ray of hope. *****

This is the last print issue of the Budapest Business Journal before our annual August close-down. However, you need not worry about keeping up-to-date with the latest business and economic news coming out of Budapest: our website will be updated as usual, and the Hungary A.M. newsletter will continue to go out on weekday mornings, alongside its Energy and Regional companion titles. And, of course, there are plenty of special publications available for purchase through our webstore if you are looking for a little summer reading. Plans are being developed for our regular Back to Business BBJ Mixer in early September, and work has already begun on the annual Book of Lists publication, which will come out towards the end of the year. The Budapest Business Journal itself will return on Friday, Sep. 5, with a Special Report dedicated to Green Business. All that is left to say is that we hope you get a chance to take a break from the workplace (although the office air conditioning does become much more of a draw in the summer!), can spend some time with family and friends, catch up on some much-needed rest and relaxation, and return recharged and ready to go as we enter the final four months of the year. It has flown by, hasn’t it?

Robin Marshall Editor-in-chief

THEN & NOW

In the 1971 black and white photo from the Fortepan public archive, captured at Hunyadi tér in Budapest’s District VI, a lively watermelon vendor enthusiastically tosses a watermelon at the bustling market in front of the old market hall. In the color image from state news wire MTI, taken on July 16, 2025, freshly harvested watermelons lie on a flatbed truck near Gerendás (223 km southeast of Budapest by road) in Békés County.

1News • macroscope

National Bank of Hungary Remains ‘Cautious and Patient’

The Monetary Council of the National Bank of Hungary (MNB) left its key rate unchanged at its latest rate-setters’ meeting, but caused a slight surprise by slightly reducing the required reserve ratio. Analysts believe that the chances of any interest rate cut this year are diminishing.

Inflation in EU Member States (June 2025) 12-month change in consumer prices

The MNB’s Monetary Council continued to hold the base rate at 6.5% at its ratesetting meeting on July 22; at the same time, it reduced the required reserve ratio from 10% to 8%. The base rate has remained unchanged in the past 10 meetings, dating back to September 2024.

The central bank remains cautious and patient: in the last paragraph of the statement published following the meeting, the MNB reiterates its commitment to sustainably achieving the inflation target. The risks surrounding the inflation environment, as well as trade and geopolitical tensions, continue to necessitate a cautious and patient monetary policy. In the council’s judgment, maintaining tight monetary conditions is justified.

“The decision did not surprise the market as it was in line with our expectations and the analyst consensus,” MBH Bank experts said in response to the move. “The domestic base rate has been unchanged for 10 months

now. To some surprise, the central bank reduced the required reserve ratio from 10% to 8%, but this did not cause any market reaction,” they added.

According to Zoltán Árokszállási and Ákos Sümegi, analysts at MBH, the central message of the press conference following the meeting was that a stability-oriented monetary policy was necessary, which could mean maintaining an unchanged base rate for an extended period. It was also important, according to MNB Governor Mihály Varga, that strong corporate repricing can still be observed, in addition to price-limiting measures.

In addition, Varga implied that macroeconomic data for the second quarter also indicates a subdued economic performance; the economy could essentially stagnate, he implied.

A Sustainable Process?

“We do not think that the coming months will be about the MNB starting to cut interest rates. Inflation accelerated somewhat further in June, while core inflation decreased quite significantly. However, the decrease in core inflation was caused by the margin freeze on household goods, so it is uncertain how sustainable this process is,” the MBH analysts point out.

Regarding inflation expectations, apositive sign is that, according to the MNB, there are some key indicators that could improve this situation. This is primarily due to the stability and relative strength of the exchange rate. While the forint was the most volatile currency in the region during the first few months of the year, by the beginning of July, its stability had become similar to that of the Czech koruna, which is generally very stable. The decrease in core inflation is also being helped by the fact that the rate of wage outflow has slowed, and the labor market is loosening. However, the elimination of margin caps (officially due to end in August but expected by many not to happen until next year) will noticeably increase inflation.

According to the MBH analysts, exchange rate stability is one of the most important tools for reducing and anchoring inflation expectations, and the central bank will not relinquish this approach. Inflation expectations typically do not decrease rapidly.

Source:

“We do not think that the coming months will be about the MNB starting to cut interest rates. Inflation accelerated somewhat further in June, while core inflation decreased quite significantly. However, the decrease in core inflation was caused by the margin freeze on household goods, so it is uncertain how sustainable this process is.”

“For this reason, it is also possible that the MNB will not be able to cut interest rates at the end of this year, but only next year, and even then, not to the extent that we currently expect. We therefore see upside risks in our current year-end interest rate forecast of 6.25%,” the MBH analysts warn.

The rate decision did not surprise Erste Bank analyst János Nagy. According to him, the change in the reserve ratio was fundamentally adjusted to European conditions and the reduction in excess liquidity in the banking system. The underlying message remains unchanged compared to previous statements.

Conceivable Cut

“Maintaining a positive real interest rate continues to be an important part of the communication. Market pricing

currently indicates at least one rate cut for the rest of the year. Our expectation is that, if developed market and regional interest rates develop according to our current knowledge, then we still consider a 25 basis point rate cut at the end of the year conceivable,” he said. However, according to K&H Bank head analyst Dávid Németh, the chance of an interest rate cut this year is decreasing. Any relaxation can only take place in the last months of the year, if at all, he believes.

“Based on inflationary trends, caution is still warranted. In addition, the euro exchange rate has been hovering around 400 forints for a long time; there has been no significant strengthening that would help achieve inflation targets, so the exchange rate does not justify monetary easing,” he says.

“In addition, major central banks, such as the European Central Bank and the Fed, are also waiting. This is important because the MNB has previously indicated several times that it is monitoring the decisions of major international central banks, as they may affect the domestic interest rate spread, and thus indirectly the forint exchange rate,” Németh adds. The MNB’s ability to make a move this year is mainly dependent on factors outside its control.

“It is not ruled out that a 25-basispoint reduction will take place towards the end of the year. However, this largely depends on the foreign environment, as well as the aforementioned macro indicators and the exchange rate,” he said.

Budapest Accuses Ukrainian Recruiters of Complicity in Death of Ethnic Hungarian Roundup Crisis

For weeks, Hungarian officials have been decrying the death of an ethnic Hungarian dual-citizen whom they claim was beaten to death by conscription officials in Ukraine, despite lacking any evidence to substantiate the accusation, which Kyív authorities have categorically rejected.

The story first came to light in a report published by progovernment portal Mandiner on July 9, which claimed that 45-yearold József Sebestyén had been beaten so severely with iron rods by Ukrainian recruiters that he had succumbed to his wounds three weeks later on July 6. The article cited a Facebook post by the victim’s sister, which was either deleted or may never have existed, according to fact-checking by the German state-funded television network and public service international broadcaster Deutsche Welle.

On July 10, the Ground Command of the Ukrainian Armed Forces issued a statement regarding Sebestyén, in which they shed light on the circumstances leading to his death and unequivocally denied any abuse.

“We categorically reject the allegations of forced mobilization, ill-treatment or human rights violations committed by the Territorial Mobilization and Social Support Center or other officials of the Armed Forces of Ukraine,” the statement declared.

As a Ukrainian citizen of fighting age, Sebestyén had been registered with the Ukrainian military administration and was stopped at a roadside checkpoint in Berehove, the cultural center of the Hungarian minority in Ukraine, where Hungarians constitute roughly half of its population. Upon passing a medical examination, which found him fit for

military service, Sebestyén was legally mobilized into the Ukrainian Armed Forces on June 14 and assigned to a training facility the following day.

Acute Stress

After deserting on June 18, Sebestyén was checked into the emergency department of the Central Regional Hospital of Berehove, where he was diagnosed with an acute stress reaction, prompting his transfer to the Berehove Regional Psychiatric Care Institution. The inpatient medical records showed that no physical injuries had been found during his initial examination, and that he subsequently died of a pulmonary embolism on July 6.

While investigating the matter, EuroNews tracked down Zoltán Razsó, a former soldier who had served with the Ukrainian Ambassador to Hungary Sándor Fegyir but is now a nurse at the hospital where József Sebestyén died. Although working in a different ward when Sebestyén passed, colleagues told him that Sebestyén had collapsed dead in the bathroom, his heart having stopped. According to Razsó, the coroner determined that a blood clot had started in Sebestyén’s leg and had become stuck in the heart arteries.

Despite these assertions, Prime Minister Viktor Orbán perpetuated the claim that physical abuse at the hands of Ukraine’s conscription authorities led to Sebestyén’s demise, prompting an outpouring of outrage from across the Fidesz political apparatus, including Minister

of Foreign Affairs and Trade Péter Szijjártó summoning Ambassador Fegyir to answer for Sebestyén’s death.

On July 17, Szijjártó announced that the government would bar three Ukrainian military officials from entering the country because of their role in the forced conscription practices that led to Sebestyén’s death.

Sebestyén was checked into the emergency department of the Central Regional Hospital of Berehove, where he was diagnosed with an acute stress reaction, prompting his transfer to the Berehove Regional Psychiatric Care Institution. The inpatient medical records showed that no physical injuries had been found during his initial examination, and that he subsequently died of a pulmonary embolism.

While neglecting to name the banned individuals, he said they included the chief of staff of the Ukrainian Ground Forces, the commander of the Western Operational Command and the head of the mobilization directorate of the Ministry of Defense of Ukraine.

Szijjártó added that the Hungarian government had submitted a formal request the previous day for the three to be added to the European Union’s sanctions list.

Individual Bans

“Until the sanctions are implemented, we have today taken measures to ban all three individuals from entering Hungary,” Szijjártó said. On July 15, Prime Minister Viktor Orbán had called on the European Union to include the Ukrainian leaders “responsible for the death of Hungarian national József Sebestyén” on its human rights sanctions list.

During a break in a meeting with his EU counterparts on July 15, Szijjártó took the opportunity to underscore that human rights violations by Ukrainian military recruitment officials had been highlighted in a report released by the Council of Europe’s Commissioner for Human Rights Michael O’Flaherty on July 8.

“Such violations include physical violence, such as beatings, brutal arrests [... and] allegations of torture and death during military recruitment,” the report said.

“The document was compiled by Michael O’Flaherty, the Council of Europe’s commissioner for human rights, who included these findings in the CoE document, that conscription in Ukraine involves death, torture, people getting beaten up and brutality, on the basis of the statements made by the Ukrainian parliament’s human rights commissioner,” Szijjártó said.

“So, it is a fact that there is a manhunt taking place on the streets of Ukraine under the guise of conscription,” he said. “Unfortunately, a Hungarian man fell victim to this brutal Ukrainian manhunt last week.”

Dynamic Growth Continues in CEE Regional Hotel Market

The Central and Eastern European hotel market is undergoing dynamic growth driven by a rebound in domestic demand and the return of international tourists, according to the latest hotel market research for the region released by CBRE. Guest nights for Hungary are returning to the record 2019 levels, and Budapest continues to be one of the most visited tourist destinations in CEE, the consultancy says.

Real Estate Matters

A biweekly look at real estate issues in Hungary and the region

distributed visitor traffic throughout the year. By year-end, Budapest is expected to reach, or potentially surpass, pre-pandemic visitation levels recorded in 2019,” he adds.

“In the first quarter of 2025, international tourist arrivals in Europe recorded a 2% year-on-year increase, with the CEE region outperforming at 8% growth,” comments Gábor Borbély, head of research, CEE and Hungary at CBRE.

“In Budapest, weekend and holiday periods continue to drive robust demand, supported by the growing popularity of the pre- and post-season. These trends are contributing to a more evenly

The CEE and Southeastern European regions have seen notable growth in tourist numbers from Germany, Austria and Italy, in addition to substantial numbers from the United Kingdom and France. An increasing number of visitors are also being drawn from the Middle East, attracted by the premier and wellness hotel segments.

Budapest hotel occupancy rates have risen to

71%,

the average daily room rate has grown to EUR 123, and revenue per available room is up by 22%.

“Budapest’s hotel sector concluded 2024 on a strong note, and the market outlook remains positive amid sustained demand recovery,” notes Balázs Csörget, associate director of hotels at CBRE Hungary.

Enhancing Competitiveness

“Each year, new high-quality hotel developments are entering the market, not only supporting further increases in average daily rates, but also enhancing the overall competitiveness and appeal of the city as a tourist destination,” he adds.

CEE and SEE are witnessing an expansion in the number and quality of rooms with a focus on four- and fivestar development. There is a focus on upscale to upper midscale hotels, notably

in the leading capital cities: Budapest, Bucharest and Warsaw. Budapest is expected to reach pre-pandemic levels by

Q2 2025.

Belgrade has already surpassed its 2019 visitor numbers.

Prague and Budapest maintain strong per capita spending, particularly in gastronomy, cultural attractions and wellness. Overnight visitors for 2024 were 6.5 million for Prague and 3.7 million for Budapest.

Hungary has around 60,000 hotel rooms with the majority in Budapest. The sector is seeing a notable growth in fivestar hotels in redevelopments of historic buildings in the center, while outside the capital, the market is dominated by the three-star strata. The tendency is for higher-category deliveries in the country’s provincial centers, while in Budapest, the trend could be for the development of more apartment hotels.

Investment volumes in the CEE hotel sector increased significantly in 2024, rising by approximately 12% year-onyear, and continue to show momentum in 2025. Some EUR 417 million was transacted in Q1, according to CBRE

“From an investment perspective, Budapest maintains a leading position within the CEE region, underpinned by resilient demand fundamentals, well-developed infrastructure, and rising pricing levels. Currently, nearly 20 hotel projects are in the planning or development phase, with the majority involving the redevelopment of existing hotel assets or the conversion of non-hospitality properties into hotel use,” concludes Csörget.

Living Starts Residential Sales at Park Rise West

Residential sales of apartments at Park Rise West, the fourth and final phase of the 900-unit downtown Park West residential park, have begun. The development by Living, the residential development arm of Wing, is located in District XIII and offers 195 modern apartments on nine floors, ranging from studio apartments to five-room penthouse apartments and are scheduled for delivery in late 2027.

“The first phase of Park West residential park was completed in 2022. Since then, we have delivered phase two, and phase three will be ready this year; this shows that there is a strong demand for high-quality apartments with great transport infrastructure near the city center,” comments Tibor Tatár, head of office and residential development for Wing in Hungary.

“Park West Rise is one of the last newlybuilt residential properties in the fully

rehabilitated Szabolcs utca in District XIII, which makes it a milestone both for our company and for the development of Ferdinánd Quarter,” he adds.

Environmentally Friendly

Park West Rise offers environmentally friendly solutions. The temperature will be controlled year-round by a heat-pump system and surface heating and cooling. This will be supported by triple-layer glazing of

the façade doors and windows, as well as a 15-cm thick heat insulation layer. The greenery of the inner courtyard will also contribute to the well-being

of residents, says Living. Due to the brownfield location, private individuals can reclaim the 5% VAT on Park West Rise apartments.

The number of Living apartments delivered since the company’s establishment in 2017, including those currently under development, is close to 2,000, with more than 1,700 apartments already sold.

Completed projects include Kassák Passage, Kassák Residence, and Kassák Terrace, Metropolitan Garden, Park West 1 and 2, and the first phase of Le Jardin (also in District XIII). Still underway are Park West 3, Park West Rise, Le Jardin 2, and Római Park in District III. All residential developments are located in areas offering excellent transport options and a wide range of services, and all feature outstanding technical standards and sustainable solutions, according to Living.

in Brief News

Hungary Issues RMB 5 bln in

Panda

Bonds

to Bolster Reserves

Hungary issued RMB 5 billion in panda bonds aimed at Chinese institutional investors on July 22, with proceeds supporting the buildup of liquid reserves amid global economic challenges, according to a statement issued on the Ministry for National Economy’s website. The Government Debt Management Agency (ÁKK) sold RMB 4 bln in three-year bonds and RMB 1 bln in five-year bonds, citing strong demand and favorable pricing. The ministry said the issue enhances Hungary’s presence in one of the world’s largest capital markets and strengthens ties with China. It also diversifies Hungary’s debt financing, increasing stability through a broader investor base. Although 97% of Hungary’s state debt remains denominated in euros and dollars, the RMB issue reflects ÁKK’s

diversification strategy. The additional liquidity will provide greater flexibility in debt management and could support further repurchases later this year, depending on market conditions.

Danube Restoration Project Unites 6 Countries

Researchers from six Central and Eastern European countries have joined an international initiative to promote sustainability and environmental restoration in the Danube region, according to a statement issued on July 22 by the Hun-Ren Center for Ecological Research. The Climanatres project focuses on coordinating crossborder habitat restoration efforts along the Danube and Sava rivers, with the Hungarian center serving as one of the lead partners. Institutions from Bulgaria, Croatia, Romania, Serbia and Slovenia are also participating. The project aligns with the European Union’s nature restoration

objectives and considers the anticipated impacts of climate change. As part of the effort, research and planning institutions across various levels will develop maps and databases to support ecological restoration strategies. Additionally, five action plans will be drafted to enhance the environmental connectivity and condition of corridors along both rivers.

Draft Decree for Home Start Program Published

The government has published a draft decree on the Home Start program, a subsidized loan scheme for first-time home buyers, according to a statement issued by the Prime Minister’s Office. Aimed primarily at young Hungarians, the program is expected to help tens of thousands purchase their first homes over the coming years. The fixed-rate credit, capped at 3% and up to HUF 50 million, will be available from Sep. 1 to all first-time buyers regardless of age or family status. Applicants must not have owned residential property in the past 10 years unless it is valued under HUF 15 mln, or they hold less than a 50% ownership stake. The scheme also includes owners of homes

UAE President Makes Historic First Visit to Hungary, Signs 14 Agreements

The President of the United Arab Emirates, Sheikh Mohamed bin Zayed Al Nahyan, has made his first official visit to Hungary.

Prime Minister Viktor Orbán met with Sheikh Mohamed on July 17.

President Tamás Sulyok welcomed his UAE counterpart with military honors in Kossuth tér on the morning of July 18, after which

the two held talks in Parliament. According to the Presidential Office, the two heads of state agreed that deepening bilateral ties based on mutual trust and respect is a shared priority for Hungary and the UAE. Overall, the visit resulted in the signing of 14 bilateral agreements, primarily in the energy, agriculture, and

food industries, as well as defense, telecommunications, and new technologies, according to the communications department of the Prime Minister’s Office.

“This is not only an important diplomatic event but also a historic moment,” Minister of Defense Kristóf Szalay-Bobrovniczky said in a post on Facebook.

slated for demolition or properties encumbered with usufruct (a limited right to use and enjoy the fruits of another’s property, without owning it). For couples, whether married or in civil partnerships, only one partner needs to meet the ownership criteria. Borrowers must be at least 18 years old, show proof of at least two years of social security contributions, have no criminal record or tax arrears, and meet lenders’ creditworthiness standards. Eligible property prices are capped at HUF 100 mln for units in multidwelling buildings and HUF 150 mln for detached houses, with a maximum price per square meter of HUF 1.5 mln. The required down payment is 10%.

Keleti Station Closed for Renovation Aug. 25–Sep. 20

Keleti Railway Station will close from Aug. 25 to Sep. 20 for the renovation and replacement of switches, tracks, and overhead lines, according to a Facebook video posted on July 21 by Zsolt Hegyi, CEO of Hungarian State Railways (MÁV). Several services will be replaced by national Volánbusz buses during the closure, which is part of a broader renovation project being fast-tracked following the derailment of two locomotives in the second half of last year. The lines most affected will be those to Győr (120 km west of Budapest), Pécs (195 km southwest), Hatvan-Miskolc (145 km northeast), and Újszász-Békéscsaba (195 km southeast). Access points will be set up across Budapest to connect passengers with HÉV suburban rail, Volán, and BKK replacement bus services. In addition to the technical works, which will include replacing more than 2,000 sleepers and sections of track bed and refurbishing 16 km of overhead lines, renovations will continue around the clock in passenger areas. The platform between tracks one and two will be rebuilt, all platform roofs will undergo maintenance, and platform pavements will also be repaired.

Budapest a Bloomberg Mayors Challenge Finalist for Food Waste Project

Budapest has been selected as one of the 50 most innovative cities globally in the Bloomberg Philanthropies 2025 Mayors Challenge, City Hall said in a statement issued on July 18. Chosen from among 630 applicants, the city will receive USD 50,000 to pilot and refine its proposed initiative, a municipally operated food processing plant that would convert surplus fruits and vegetables from local markets into frozen goods, jams, and pickles. These products would primarily be used in meals served at schools and senior homes. The project aims to reduce food waste, enhance nutrition for children and the elderly, promote the circular economy, and increase incomes for local producers by creating demand for quality produce that was previously unsellable. The Budapest municipality would oversee the entire supply chain to ensure transparency, efficiency, and long-term sustainability.

However, Kőrösi also identified several “tailwinds” that are helping push sustainability efforts forward. The increasing frequency and severity of extreme weather events have brought climate change and resilience to the forefront of public consciousness, leading to new investments and innovations.

and

Seismic Shifts in Budapest

2 Business Sustainability Experts Tackle Headwinds, Tailwinds,

The 31st annual International Sustainable Development Research Society conference brought the world’s leading voices in the field to Corvinus University. On July 9, the event’s opening day, experts from all continents tackled one of the defining challenges of our era: advancing sustainability amidst increasingly complex global realities.

internationalize Corvinus further and places special emphasis on sustainability and AI as the institution’s two cross-cutting priorities.

Welcoming a diverse community of scientists, policymakers, business leaders, and students, Professor Gyula Zilahy, Corvinus faculty member and president of the ISDRS, set the tone by asking where, after three decades of research and policy efforts, does sustainability stand today?

Zilahy emphasized that, while the concept of sustainable development has guided scholars and practitioners for more than 30 years, it is now crucial to assess what has truly been accomplished, what paradigms have shifted, and what new obstacles have emerged.

He drew attention to the conference’s dual focus for 2025: the intersection of sustainability and artificial intelligence, and the launch of the “Budapest Declaration,” a formal statement highlighting the ongoing urgency and necessity of sustainability research, which is scheduled for publication soon.

Corvinus University’s commitment to these issues was further underscored by rector Bruno van Pottelsberghe, who introduced the school’s century-long academic tradition and its recently approved “Bridge Strategy.”

This roadmap, approved by the university’s Senate, aims to

According to van Pottelsberghe, addressing these themes is not just an academic obligation but an imperative for the university’s broader mission to serve both local and global communities.

One of the day’s most memorable interventions came from Dinesh Bhuju, executive director of MICD at MidWest University in Nepal and president of the Resources Himalaya Foundation.

Reflecting on the legacy of last year’s ISDRS gathering in Kathmandu, Bhuju described research as “the beating heart” of the society, with a particular emphasis on sustainability challenges unique to the Global South.

Catalyze Critical Research

Bhuju noted how, in Nepal, traditions of living in harmony with nature have shaped local attitudes for generations. The ISDRS network, he added, has helped catalyze critical research projects, including investigations into the impact of energy poverty on the educational opportunities of girls in remote Himalayan communities.

In a surprise twist, Bhuju concluded with a quotation from Hungarian poet Sándor Petőfi, cautioning against starting with the “tower instead of the foundations,” underscoring the importance of solid groundwork in the pursuit of progress.

Taking a pragmatic look at today’s geopolitical and environmental realities, Csaba Kőrösi, strategic director of the Blue Planet Foundation and former president of the UN General Assembly, delivered a keynote entitled “Sustainability Transition: Facing Headwinds and Tailwinds.”

He dissected both the obstacles and opportunities currently shaping the sustainability agenda, drawing on recent global events to illustrate his points. Kőrösi stressed that measuring progress on the UN’s 17 Sustainable Development Goals remains a persistent challenge, as countries continue to lack a consistent methodology. This absence of unified reporting, he warned, can erode trust in the data and, by extension, in the global sustainability movement.

According to Kőrösi, today’s “headwinds” include not just political inertia, but a surge in geopolitical rivalry and conflict. While there were 29 armed conflicts worldwide in 2019, that number has now risen to 52,

with defense budgets outpacing global GDP growth. These conditions divert attention and resources away from the sustainability agenda, making coordinated action more difficult.

He also noted the lack of integration of sustainability into national strategies and budgets, which relegates vital initiatives to the status of afterthoughts, funded only by “extra” or discretionary budget lines, rarely sufficient to drive systemic change.

Breakthroughs in artificial intelligence, quantum computing, and fusion energy offer further cause for optimism. He observed that, for the first time, investments in renewable energy have nearly doubled those in fossil fuel infrastructure, a clear sign that markets are beginning to shift.

Seismic Changes

Building on these themes, Barbara Wassen, Ambassador-at-Large for Climate and Climate Diplomacy at Hungary’s Ministry of Energy, provided a detailed look at what she described as seven “seismic” changes reshaping the world’s energy landscape.

Her analysis spanned shifting geopolitical realities, security concerns around global energy supply, the rise of electrification, and the relentless pressure to boost economic competitiveness.

Drawing on conversations with business leaders, she emphasized the need for adaptability, citing the unprecedented leadership challenges presented by the COVID-19 pandemic, the energy crisis, ongoing wars, and the rapid advancement of artificial intelligence.

Wassen concluded her address on a hopeful note, listing seven positive takeaways: among them, the Paris Agreement’s tangible results and the enduring importance of global cooperation and carbon reduction. She reminded participants that, even amidst chaos, there are clear signals of progress.

Corvinus Professor Emeritus Sándor Kerekes took a personal approach, sharing how difficult it is even for experts to navigate competing theories and find the “right” path in today’s world. The complexity and unpredictability of modern systems, he argued, mean that not even the most sophisticated AI tools can eliminate all risks.

Instead, Kerekes advocated for a pragmatic approach: experiment, learn from setbacks, and adapt in cycles, a message that resonated with many in the audience.

Closing the opening day, Dean Katalin Ásványi outlined Corvinus University’s multi-faceted approach to sustainability. The institution’s efforts are structured around four pillars: education, research, societal impact, and sustainable operations. Ásványi highlighted not only Corvinus’s international reputation for sustainability teaching but also the encouragement of student and faculty research in the field.

The university, she noted, is increasingly involved in international collaborations and strives to involve its entire community (business partners, alumni, and current students) in a wide range of sustainability initiatives. A point of pride is the Gellért Campus, which hosted the conference and stands as one of Hungary’s most sustainable educational buildings.

WTS Klient Launches Fresh Business Line

WTS Klient Hungary launched a new business line in May, dedicated to advising clients in accessing state aid possibilities and realizing their investment projects under the leadership of Miklós Andorka

With more than a decade of expertise in EU and domestic state aid schemes, Andorka is an expert in international relations, a member of the Hungarian Economic Association, and serves as secretary of its Development Policy Section.

His specialist fields include investment incentives based on individual government decisions (EKD), subsidies for research, development and innovation, and strategic advisory for FDI projects. He is a regular speaker at professional conferences and business events.

Andorka joined WTS Klient Hungary as a partner on May 1, having previously served as deputy CEO for strategy at Mapi Plc.

“Strategic advisory has long been a key component of our service portfolio, especially given the significant portion of our clientele that approaches us in connection with foreign direct investment,” explained Zoltán Lambert, managing partner of WTS Klient Hungary.

“Over the years, we have explored this field from legal, tax and accounting perspectives, and concluded that it is in our clients’ best interest to bring EKD and other state aid advisory services fully in-house. We are delighted that Miklós has joined us, as his extensive experience and high-level expertise will help us further expand and tailor our complex business advisory services to meet current market needs,” Lambert added.

Danone Hungary Names Sales Director

As of May 2025, Péter Csaplovics has assumed the role of sales director at Danone Hungary. The expert first joined the company in 2010, and he has nearly 22 years of professional experience in the FMCG and specialized nutrition sectors.

Previously, Csaplovics held several leadership roles in Hungary, the Czech Republic, Slovakia, and the broader Central and Eastern European region, as well as heading the local healthcare division. During this time, he built new business models and teams that achieved sustainable growth and strengthened the company’s market presence, even during challenging periods, the company says.

“I believe that the key to longterm success lies in creating value for our customers and partners while continuously developing our teams. Sales is not just about numbers; it’s also about building relationships, having a vision, and the path we take to realize it,” Csaplovics emphasized.

In his new role, he aims to strengthen Danone Hungary’s commercial organization further, deepen strategic partnerships, and enhance the efficiency of sales operations in the spirit of sustainable growth.

Roche Hungary Appoints Head of Pharma Division

As of June 1, Peter Ahnesorg is the head of Roche Hungary’s pharmaceuticals division, replacing Raffaella Claudia Bondi, who led the company for four years and will continue within Roche’s global organization.

The new division head aims to strengthen existing partnerships

and continue along the established path by drawing on his broad healthcare experience, Roche says. Ahnesorg, who holds a degree in biochemistry, has worked at Roche for two decades, during which he held various leadership positions in Switzerland and the United States, including in the global pharmaceutical strategy organization.

Most recently, he was responsible for the hematology portfolio at Roche, which includes 20 marketed and pipeline medicines designed to improve the lives of people living with blood disorders.

He also played a key role in Roche’s efforts to establish gene and cell therapy as innovative solutions for areas of high unmet medical need.

Baker McKenzie Announces International Partner

As of July 1, Baker McKenzie has appointed Benedek Kovács as international partner and head of the real estate and investment projects practice at the Budapest office.

At the same time, Zoltán HegymegiBarakonyi will continue his career as a senior counsel in the competition law practice, and the law firm will be renamed Fehérváry Horányi Kovács Baker & McKenzie Ügyvédi Iroda. Kovács is a real estate legal expert representing clients across all segments of the sector. He also has significant experience in providing legal support for greenfield investments and executing brownfield developments.

His expertise includes coordinating large-scale real estate development projects, providing legal support for industrial and related foreign direct investments, as well as construction and permitting processes, and negotiating office and other commercial lease agreements.

His extensive experience spans logistics centers, hotel and office building developments, retail and shopping center projects, as well as industrial and manufacturing investments.

Kovács joined Baker McKenzie’s Budapest office in 2004 as a junior associate. He has worked as an attorney since 2006, became a local partner in 2010, and has led the real estate and investment projects practice since 2016.

“Benedek is not only a recognized expert and excellent lawyer but also a colleague who inspires those around him with his personality and professional approach. His appointment as an international partner is clear proof that Baker McKenzie truly offers exceptional career opportunities for young talents,” emphasized Ákos Fehérváry, managing partner of Baker McKenzie’s Budapest office.

Hegymegi-Barakonyi, meanwhile, has been a defining figure at Baker McKenzie for more than three decades: he began as a junior associate in 1994, became an international partner in 2001, and led the Hungarian office as managing partner from 2013 to 2022. He will remain a key pillar of the competition law group, continuing to serve clients with his unwavering professional dedication. The operational leadership of the practice was taken over last year by Márton Horányi , with whom Hegymegi-Barakonyi will continue to work in close professional collaboration, ensuring a smooth generational transition.

“We are extremely grateful to Zoltán for his exemplary performance and leadership at Baker McKenzie. We are delighted that he will continue to serve our clients with the same professional drive and commitment that we have come to expect from him over the past decades,” said Fehérváry.

Hipa Denies BYD Change of Heart

The boss of the Hungarian Investment Promotion Agency has insisted China’s automaker BYD remains fully committed to building its first European car factory in the country and has not altered its investment plans.

Company

E.ON Cuts Emissions 84%, Expands Renewable Energy Use

According to a statement issued on July 22 by Hipa, its CEO István Joó said BYD’s headquarters had confirmed on that day that construction in Szeged (175 km southeast of Budapest by road) was progressing at full speed. That reassurance comes after claims that BYD would delay mass production at its electric vehicle factory in the southeastern university city until 2026 and operate below capacity for at least two years, according to unnamed sources cited by international news wire Reuters. It was also suggested that the automaker is accelerating plans at a new plant in Turkey, where labor costs are lower, and is expected to exceed its initial production targets.

HEAD: Kia Hungary

Projects up to 950 EV Sales in 2025

Sales of electric vehicles manufactured by South Korea’s Kia could reach between 900 and 950 this year in Hungary, according to Kia Hungary head Norbert Nagy. Including hybrid and plug-in hybrid models, total sales may climb to 1,200–1,300, while overall deliveries, including internal combustion engine vehicles, could reach 7,300–7,400, Nagy said.

If true, the shift of production away from Szeged would be a blow not just to Hungary but also to the European Union’s efforts to attract Chinese EV investments and high-paying manufacturing jobs.

BYD’s EUR 4 billion investment in Szeged was expected to support an initial annual output of 150,000 vehicles, eventually scaling to 300,000.

October Launch

However, Reuters sources indicated that production in 2026 may only reach tens of thousands of vehicles, well below capacity, with a modest ramp-up projected for 2027. BYD has announced an October launch for the Szeged project, which began in 2024, but has not specified when full-scale production will begin.

BYD’s investment in Hungary was expected to create thousands of high-value-added jobs, with local suppliers also benefiting. The company

He noted that a “model offensive” is underway across all automakers. He highlighted the competitive pressure from Chinese brands entering the European market, which is reshaping the industry landscape and drawing buyers away from Kia. Nagy estimated Kia’s share of Hungary’s EV market could reach 12–13% in 2025, and said it was “realistic” for the company to rank among the top five car brands in Hungary’s new auto market over the long term. Kia currently operates 29 dealerships in the country.

already manufactures electric buses in Hungary and is also establishing a European headquarters and R&D center in Budapest.

As recently as June 27, Hipa announced on its website a new EUR 75.7 million investment that will add a 29,000 sqm facility to BYD’s electric bus factory in Komárom (90 km from Budapest) and include the establishment of an R&D testing laboratory. The project will enable the production of trucks alongside buses in Komárom, creating 620 new jobs.

The Komárom plant, inaugurated in 2017, celebrated the production of the 1000th electric bus in June. Hipa says a significant portion of these vehicles are operating on Hungarian roads.

“As the result of the new investment project, the plant’s production capacity will triple, reaching 1,250 buses and trucks annually, whereas the number of employees will more than double from the current 500,” the investment agency said.

Wizz Air to Resume Warsaw Modlin Flights After 13 Years

Hungarian budget airline Wizz Air will restart operations from Warsaw Modlin Airport in central Poland after a 13-year break, deploying two aircraft to the location from December, Chief Operations Officer Roland Tischner said in a press release on July 18. The announcement follows Wizz Air’s decision, announced on July 14, to shut down its Abu Dhabi operations as of

E.ON has reduced its carbon dioxide emissions by 84% compared to 2019, with around 70 of its sites running entirely on renewable electricity as of January 2025, according to a press release. In 2024 alone, the company invested more than HUF 160 billion in energy network development. Operating these sites on green energy has reduced annual CO2 emissions by more than 2,000 tonnes, equivalent to the yearly output of approximately 3,800 households or 1,000 cars. The production of E.ONowned solar power plants rose 30%; the company plans to expand its solar capacity further and increase green energy procurement. E.ON also reported that its gender pay gap is significantly below the Hungarian average and the European Union’s expectations, underscoring its commitment to workplace equity and sustainability.

Tulip Launches HUF 2.3 bln R&D Project in Hungary

U.S.-owned production technology firm Tulip Interfaces Kft. will carry out a HUF 2.3 billion R&D investment in Hungary, Minister of Foreign Affairs and Trade Péter Szijjártó announced on July 17 in a post on his Facebook page. The Hungarian state will provide approximately HUF 500 million in support for the initiative, which is expected to create 26 jobs for highly skilled professionals. Szijjártó said the project would focus on developing platforms to enhance digital production processes across multiple industrial sectors.

Sep. 1, and refocus on its core Eastern European market. Tischner added that employees based in Abu Dhabi would be given the chance to relocate to positions in Europe. Wizz Air had launched its Abu Dhabi base six years ago as part of a broader strategy to expand into the Middle East. However, nearly two years of regional instability, airspace closures, and disrupted travel demand made the venture unviable. Citing no clear path to profitability, the airline said it was abandoning its Middle East ambitions.

Hungarian Employees Awaiting Better Times to Change Jobs

In our April edition of HR Matters (“Why None are Happy in Hungary’s ‘Pessimistic’ Labor Market”), we reported on employers’ perceptions of macroeconomic changes and their impact on the jobs market over the coming years. A majority, 55%, described themselves as pessimistic or completely pessimistic, while only 20% reported being optimistic. Surveys conducted since then show little improvement.

Disposable Household Income After Paying Utility Bills, Other Essential Expenses

Percentage change, Y.O.Y., Q1 2025

A survey released in June by workforce placement group Manpower Hungary found that local companies are not planning significant hires in Q3. Barely more than a quarter of employers, some 28%, plan to expand their headcount, while 23% forecast layoffs.

Péter Varga, CEO of Manpower Hungary, highlighted another figure: “In the current macroeconomic environment, a large proportion of employers are in a holding position: 47% are planning neither expansion nor reduction of their headcount in the coming months.”

Companies are hoping for GDP growth to take off, so they are postponing mass layoffs and reducing headcount by leaving positions unfilled, Varga explained.

Examining specific sectors, there are marked differences between industries. While communication services, healthcare and life sciences may see significant layoffs, finance, real estate, and information technology, may see notable headcount increases.

From an economic perspective, the most significant is the raw materials and manufacturing industry, where headcount increases may be slightly above average. In contrast, the consumer goods and services

HR Matters

A monthly look at human resource issues in Hungary and the region

offer contradictory insights. Career platform wherewework.hu (formerly munkahelyeink.hu) conducted labor market research revealing that more than two-thirds of Hungarian employees are willing to change jobs, primarily motivated by the prospect of better salaries and benefits.

Western Transdanubia

Central Transdanubia

Southern Transdanubia

Central Hungary

Northern Hungary

Northern Great Plain

Southern Great Plain

sector, also a significant contributor, shows a near-stagnant outlook, according to the Manpower report.

Weaker Willingness to Hire

Data released a month later by market research company GKI confirms that Hungarian companies’ willingness to hire weakened in early 2025. In May, only 9% of firms planned to expand headcount over the following three months, while 12% anticipated reductions.

In retail and construction, downsizing intentions outweigh expansion plans. In manufacturing, the two trends are roughly balanced, whereas business services show expectations of net job growth. The unemployment rate in May stood at 4.3%, and the average duration of job searches now exceeds 12.8 months.

“In the current macroeconomic environment, a large proportion of employers are in a holding position: 47% are planning neither expansion nor reduction of their headcount in the coming months.”

How are employees faring in terms of income? Intrum has been publishing solvency index surveys for several years, measuring the amount of disposable income households have after paying utility bills and other essential expenses. Data published on June 13 reflects the regional indexes for Q1 2025. In some Hungarian regions, the solvency index improved; in others, it deteriorated.

The Northern Hungary region registered the highest growth at 4.2% compared to the previous

Source: Intrum Solvency Index

quarter and 9.2% year-on-year. This is a significant improvement, given that, based on purchasing power parity, the region’s GDP remains low at 48% of the EU average.

Moving south, growth is also evident: 1.3% quarter-on-quarter and 7.2% y.o.y. Central Hungary, traditionally much more developed than other regions, saw a slight decline of 1%, while a sharper drop occurred in the southern part of the country, down 3.2% from the previous quarter.

Intrum, in cooperation with GKI, also analyzed a key indicator that directly impacts purchasing power: inflation. According to a study released on May 28, the financial situation of Hungarian families has not improved since the end of the COVID-19 pandemic in 2023.

This is largely due to rising prices, which continue to erode purchasing power. Up until March, Hungary recorded the highest inflation rate among EU countries, driven by steep increases in food and service prices. This has led to a decline in consumer confidence, with families becoming increasingly cautious about spending.

Market Distortion

The government is attempting to contain inflation through artificial measures, such as capping profit margins on certain food items. However, according to Intrum, this is worsening the situation by distorting the market. Hungarian households are making efforts to minimize spending, but the current price index and persistent inflation are offering little relief.

“Some form of economic recovery is necessary to create financial stability, so we are not expected to return to pre-COVID conditions this year. The latest employment data from KSH [the Central Statistical Office], showing an unusual decline at this time of year, is also cause for concern,” says Judit Üveges, head of sales at Intrum.

In this situation, the obvious solution would be to seek betterpaid jobs; however, recent surveys

However, the findings also highlight a significant gap between workers’ expectations and what employers are offering, particularly in terms of income levels and fringe benefits.

Another survey, conducted by Pulzus Kutató, found that employees are cautious: only 17% of respondents are definitely planning to change jobs, while a further 16% remain undecided. This means that 67% of Hungarians do not intend to change jobs, at least not within the next six months.

Among those aged 18-39, 29% expect to seek new employment, compared with 7% of respondents aged 60 and above.

Regarding recruitment methods, 48% of those surveyed said most jobs are obtained through acquaintances, while 35% believe positions are filled equally via personal networks and informal advertising. Only 7% expressed trust in open applications.

Beyond salary, the issue of remote work remains a significant concern for employees. Having experienced the benefits of a flexible working environment during the COVID period, many now wish to retain that flexibility, while employers are increasingly expecting a full-time office presence, according to HR services company WHC Group. It found that diverging expectations regarding flexibility are causing growing tension in recruitment processes. While working from home at least one or two days a week has become a baseline requirement for candidates in intellectual roles, many managers still favor full in-office attendance. This conflict is particularly challrnging for candidates who have organized their lives around remote work in recent years, WHC notes.

3 Special Report

FMCG

Retailers Hit by Special Taxes, Price Caps, Waning Purchasing Power

With a faltering economy resulting in January-May retail sales increasing by just 2.1% year-on-year, the outlook for the sector would have been difficult anyway. But government mandated price caps imposed in March have made the outlook even grimmer.

FMCG Top List: Retail Chain Ranking 2024

Based on actual and estimated data for 2024 revenue, million HUF

Located at a transport hub and surrounded by the most affluent districts of Buda, entry to the spacious Spar outlet in the basement of the Mammut mall is laid out to seduce customers into what might be termed its “consumer-comfort zone.”

Starting with a wall of pastries and crusty loaves, past trays of well-lit, colorful fruit and vegetables, before entering a corridor flanked by a long, well-stocked fresh meat and fish counter one side, and with dips, cold cuts and an alluring array of cheeses on the other, it is a walk few shoppers will complete without succumbing to the temptation of at least one impulse purchase, but probably more.

Certainly, late one afternoon prior to this newspaper’s editorial deadline, the store was busy with a healthy crowd of shoppers who, though not on their weekly household “big spend,” were happily topping up the pantry away from the oppressive summer heat outside.

Such clientele has helped Spar Hungary attain second place in the country’s retail rankings since 2022. Last year, the Austrian-owned chain, boasting 652 outlets of all sub-brands and

Source: Trade Magazin

sizes, achieved combined revenues of HUF 1.1 trillion, up by 4.8% year-on-year. Only discounter Lidl outperformed Spar, with total sales of HUF 1.6 trillion, according to an analysis of the 2024 retail sector published by Trade Magazin in June.

Bottom Line Blues

Yet despite the nearly 5% increase in revenues, Spar Hungary’s bottom line makes for bad reading; last year the company lost nearly HUF 25 billion, on top of HUF 18 bln in 2023 and HUF 13 bln in 2022.

The primary cause, according to Spar Hungary CEO Gabriella Heiszler, is the government price controls limiting large retailers to a 10% margin on a range of 30 basic food groups. These measures were causing monthly losses of HUF 1.5 bln, the company outlined in a

Why the Price Caps and do They Work?

The government mandated the latest price caps in March after intense pressure on retailers to reduce prices voluntarily.

Prime Minister Viktor Orbán claimed at the time that retailers were implementing “unjustified and excessive price increases” unfairly burdening the public.

The restrictions, which cover 30 popular product groups including eggs, yogurt, sour cream, some cheeses, cooking oil and certain meat cuts, essentially limit retailers to a 10% margin between the product’s cost price and the list price to the customer.

Among other detailed regulations in the package, retailers are required to maintain a minimum stock of these products to ensure a steady supply to the public. In other words, retailers cannot evade the restrictions by limiting their orders and emptying their shelves of the products.

The measures are applied to retailers with income exceeding HUF 1 billion, and came into force when the latest inflation figures at the time indicated an annual rise of 7.1%.

Originally announced as a temporary measure applicable until the end of May, the government later extended

letter to employees in March, which was widely reported in the Hungarian media. Nor is Spar alone; indeed, the country’s largest retailers, mostly foreign-owned, are all heavily burdened with the price caps and the associated package of restrictions, Tamás Kozák, head of the Hungarian Retailers’ Association (OKSz), tells the Budapest Business Journal “The operating costs in the retail business by far exceed 10%.

This means that the margin that the regulation allows retailers cannot cover the costs associated with the sale of the products concerned. [This means] the expected losses of HUF 10 bln per month to the sector, meaning in excess of HUF 100 bln annually,” Kozák said

the deadline to the end of August. It claimed in June that the price caps had reduced the prices of some 870 of the 1,000 affected products by an average of 20%, with 276 slashed by 30%.

However, while the short-term impact may result in limiting inflationary trends, the retailers argue that the caps result in the affected goods being sold at a loss, as the 10% margin is insufficient to cover the costs of storage, staff salaries, overheads and the “extra profit” retail tax, which is based on revenues.

Economists are also skeptical of the efficacy of price caps, with even the National Bank of Hungary, under governor György Matolcsy at the time, declaring an earlier

Moreover, the sector has to work with a VAT rate of not just the headline 27% applied to most items; to pay the “extra profit tax” applied to revenues (rather than profits), retailers are effectively working with a VAT rate of 31.5%, he argues.

Since this has to be passed on to customers, prices in Hungary are now less competitive than in neighboring countries, leading to cross-border shopping in some areas of the country.

Crisis of Confidence

Spar’s Heiszler, speaking at a conference in early April, was quoted in Hungarian media as saying: “We feel the crisis of confidence [...] Győr has emptied out from a retail perspective; everyone is shopping in Slovakia.”

While this may contain some hyperbole, Kozák confirmed reports of groups, including pensioners, sharing cars to justify cross-border shopping in Austria and Slovakia.

The European Commission has also warned that the pricing restrictions are contrary to EU regulations on trade, not least because they impact foreignowned companies in particular.

According to the commission, public authorities are obliged “to ensure the equal treatment and non-discrimination of economic operators and to refrain from restricting economic activities unless such restrictions are justified to attain certain public interest considerations.”

The EC initiated infringement procedures against Hungary over its mandatory caps in June, giving Hungary two months to respond to its complaints.

Meanwhile, Kozák tells the BBJ, the retailers’ association “hopes the government will lift the price caps” at the end of August, as scheduled. With food producers continually raising prices, the margins on products are “Shrinking, shrinking while losses are rising, rising,” he says.

set of price restrictions to be a failure in an analysis issued in February 2024.

Asked for his views on such caps, Lajos Bokros, a former finance minister and professor of economics at the Central European University, told the BBJ : “Price caps typically have three consequences: they create shortage in those items to which they are applied; they create distortions in the market and contribute to waste; and they increase the prices of those goods which are not subject to caps.”

He added: “Proportionality among these potential impacts may vary in time and space, but they are always present. They always reduce market efficiency.”

Market Fundamentals Holding Back Entries by Major Luxury Fashion Brands

Anita Csörgő, director, head of retail at Colliers, gives the Budapest Business Journal her overview of the retail real estate market in Hungary. How is it performing, what has been the impact of the governmentmandated price cuts and the ‘Plaza-stop’ law, and what new brands are entering the market?

BBJ: How is the retail market performing this year? How does this compare with previous years?

Anita Csörgő: While real income has risen by nearly 10% in the first five months of 2025, net retail sales have only increased by a bit over 2%. This is primarily due to the comparatively high 4.8% Hungarian inflation during this period, with an even higher 8.2% for food and 6.7% for energy, compared to a 2% average inflation in the EU. Rising prices erode consumer confidence and hold back spending. Stronger growth has been realized in the fashion, health and beauty, home and F&B sectors, where there has been stronger tenant demand to open new stores than in 2024.

BBJ: How are the governmentmandated price cuts impacting the retail sector?

ACs: Certain products are subject to a 10% profit margin cap, but their retail prices may still rise in line with increasing wholesale prices. Energy price limits apply only to the household sectors and up to a specific limit, after which the much higher market prices come into effect. These higher-thanEU-average prices apply to industrial users, including those that produce household products such as milk, bread, eggs, etc. Furthermore, the 10% profit limit for these products does not cover the costs to retailers who have raised prices for other products to compensate for losses

from the price-controlled products. As seen by the inflation numbers, these price controls have proved to be ineffective in controlling average food basket increases.

BBJ: What are the figures for new brands entering the Hungarian market? How does this compare with Hungary historically, and how does it compare regionally? In other words, is the Hungarian retail market under-performing, over-performing or in the middle?

ACs: New brands are entering the market this year in the accessories and H&B sectors, with leases signed but formal announcements yet to be made. New market entries remain lower than in other CEE countries, but we hope this will change at some point.

BBJ: We often hear from hoteliers that Budapest needs more luxury retail to attract more high-end travelers. Are there signs this is happening? Where on the market spectrum do most of these new brands sit?

ACs: Leases have been signed for high-end jewelry brands and multibrand high-end fashion stores on Andrássy, which will be a welcome

care stores, such as Adrienne Feller, Belodore and Superz, are opening more stores throughout Hungary. Drogerie retailers have enjoyed aboveaverage sales growth since COVID and have opened many new shops in the past three years. Unfortunately, they are feeling the effects of the government-imposed price controls and have had to decrease costs and slow new store openings in response to reduced profits.

BBJ: There have been no new shopping center openings in Budapest for several years, with a concentration instead on renovating (and repositioning) existing assets. What is the health of the mall market in the capital? Are existing centers doing well? When are the next major renovations due to be delivered?

ACs: Vacancies, even in “B” class shopping centers, are down, and the lack of new shopping center supply has allowed rents to remain stable and even increase in some cases, which provides revenues to owners to upgrade these centers. The Duna Plaza mall should be considered as a new shopping center rather than a refurbishment, but it will only open in 2028 if demolition and construction start next year. Tenant demand for this project is substantial.

addition for the guests of five-star hotels. Unfortunately, we cannot report any new entries by the major luxury fashion brands. This is due mainly to the 27% VAT that limits sales to locals and EU residents, and the lack of suitable premises. Many are turned away from Andrássy due to the inconsistent tenancy on the street, indicating that there are too many inappropriate shops, such as souvenir stores, drogeries, and service retailers on the street. Fashion Street (running behind the Kempinski and Al Habtoor Palace hotels) has become a magnet for aspirational brands, but there is a limited number of shops on this well-managed precinct. No other district in Budapest, including the area around the Parliament, has the critical mass of luxury brands to attract similar new niche brands.

BBJ: Health and beauty has been a growing sector in many markets. Is that also true in Budapest and Hungary? Does it have anything unique to offer in this sector?

ACs: Rituals is a new health and beauty brand that will open its first stores in Budapest by the end of this year, and several niche perfume and skin

“New brands are entering the market this year in the accessories and H&B sectors, with leases signed but formal announcements yet to be made. New market entries remain lower than in other CEE countries, but we hope this will change at some point.”

BBJ: The other area where we see new retail is as part of mixeddevelopment projects. When will we see the next openings from these developments?

ACs: There are no significant mixeduse projects planned in Budapest following the opening of Bayer’s Zugló Város Központ, only residential and office projects with retail units on the ground floor. Very often, the retail units in such projects are more of an afterthought without sufficient preparation to make them more attractive to retailers.

Are there any signs that the “Plaza-stop” legislation may be lifted or altered? What would you hope to see as a result of this?

ACs: The Plaza-stop law modifications, although expected, have created uncertainty among developers, retailers and financing institutions and slowed retail development projects, including retail parks.

FMCG

Penny Hungary Says Exclusively Selling Hungarian Watermelons This Year in Brief News

It isn’t summer in Hungary without watermelons.

Retail chain Penny has announced that, since July 7, it has been selling fresh, open-field watermelons sourced exclusively from Hungarian producers, further strengthening its commitment to local producers and produce.

The company, the fifth-largest in Hungary based on total net revenue, according to the BBJ’s 2024-25 Book of Lists, says it is essential to offer its customers fresh, reliable, high-quality goods from domestic

Lidl Surpasses Tesco in Headcount as Layoffs hit key Sectors

Layoffs among large companies were widespread from April to May, particularly in the retail and manufacturing sectors, according to data from Opten and HR Portal. Tesco cut 450 jobs, reducing its staff to 9,326, while Lidl grew slightly to 9,503 employees, overtaking Tesco for the first time. Spar lost 273 workers, Aldi 136, and drugstore chain DM 135. Aldi has reduced its staff every month since February, shedding 494 jobs over a four-month period. In May 2020, Tesco had nearly double Lidl’s workforce.

The cuts aren’t restricted to retail chains: In manufacturing, Audi Hungaria cut 122 positions in May, with a total reduction of 621 jobs in Győr (120 km west of Budapest) since December.

Linamar laid off 102 employees, bringing its six-month total

producers throughout the year. This is no different for the perennial summer favorite, watermelon.

“The primary goal of Penny’s procurement strategy is to give preference to domestic producers. We work with more than 60 domestic producers to ensure that Hungarian families have access to reliable, highquality, fresh domestic fruit throughout the season,” says Zoltán Bálint, head of purchasing at the local operation.

“We constantly monitor consumer demand and encourage our customers to look for domestic

to 318, a decline of more than 10%. Most other manufacturers also reported smaller reductions.

E.ON Drive, Aldi to Install Fast Chargers at 50 Stores

E.ON Drive Infrastructure Hungary is upgrading fast-charging stations at 50 Aldi locations nationwide, according to a joint statement issued in late June. The upgrade, which will cost more than HUF 2 billion, follows a 2018 agreement between the firms to install chargers at 123 of the retailer’s stores.

Auchan Launches Local Suppliers Program to Boost Orders

Auchan Hungary has launched a local suppliers program in partnership with Magyar Termék Nonprofit at its store in Debrecen (225 km east of Budapest). Attila Nagy, sales director at Auchan Hungary, said the initiative, which is supported by the National

products bearing the ‘Selected from Hungary’ logo, which they can find in stores at the usual wallet-friendly prices,” he adds.

Penny Market Kft. has been operating in Hungary since 1996. The chain currently operates 239 stores and three logistics centers, employing more than 5,000 people. The company says its mission is to offer its customers the freshest and best value products nationwide, including highquality private label and Hungarian Product trademarked goods.

Chamber of Agriculture (NAK), aims to increase the presence of products from SME suppliers on store shelves. The goal is to raise local supplier orders per store six- to eightfold from the current level of around HUF 300 million, he added. Nagy noted that food products account for roughly half ofthe merchandise in Auchan stores in Hungary, and 86% of those food items are domestically produced. Auchan reported net sales revenue of HUF 366.3 billion in 2024.

Co-op Group Revenue Climbs 4% to HUF 860 bln in 2023

Revenue of the Co-op group of supermarkets rose 4% to HUF 860 billion in 2023, Co-op Hungary said. Within the group, the Co-op chain’s turnover increased by approximately 1.6% to HUF 530 bln. The network comprises 2,100 supermarkets across 1,400 settlements, according to CEO Géza Tóth. Nearly 770 Co-op stores are equipped with solar panels that

Aldi Store and Grill Zone Await Sziget Visitors at new Location

Aldi will once again participate in the Sziget Festival this year for the eighth time since 2016. Visitors to the island festival will find the retailer’s store in a new location, next to the boathouse. In the Grill Zone next to it, barbecue products purchased at the shop will be cooked free of charge.

From Aug. 6-11, the 500 sqm pop-up store, which has proven extremely popular with Sziget visitors, will welcome shoppers. The chain will offer the same benefits at Sziget as it does elsewhere: food and non-food products will be available at the same prices as in any Aldi store in the country. Drinks will be available throughout the festival at a uniform price set by Sziget.

Eight cash registers and a total of 61 employees will ensure that service is as fast as possible and waiting times are as short as possible, even at peak times, the retailer says. The range consists of around 250 food and nearly 40 nonfood products, from refreshing drinks and snacks to basic hygiene items for camping and quick meals. Meanwhile, Aldi introduced longer opening hours at its stores around Lake Balaton from June 20, the start of the summer break. During the peak summer season, all stores will open at 7 a.m., except for Balatonfüred, where customers will be welcomed from 6:30 a.m. On Sunday evenings, all stores will be open until 8 p.m., and on weekdays, most will be open until 9:30 p.m.

generate enough power to meet 23% of the group’s electricity demand. More than 570 outlets participate in used cooking oil collection programs. The group’s largest franchise shops, each with at least 350 sqm of floor space, contributed HUF 49 bln to total revenue last year.

GVH Adds 42 Household Goods to Pricemonitoring Platform

Household and hygiene products have been added to a pricemonitoring platform aimed at fostering competition and curbing consumer price inflation, the Competition Office (GVH) announced in early July.

GVH said 42 new product categories were added, raising the total to 142. The platform, launched two years ago, tracks food prices at Hungary’s six largest supermarket chains: Aldi, Auchan, Lidl, Penny, Spar, and Tesco. It now also includes prices for various household items at drugstores DM, Müller, and Rossmann.

Electronic Shelf Labels to Benefit Spar Staff and Shoppers

As part of its continued roll-out of digital innovations in Hungary, electronic shelf labels are now in use in more than 10 Spar franchise partner stores and three company-operated stores: in Budapest, Debrecen, and the newest supermarket in Szentendre.

centric retail,” says Márk Maczelka, communications manager at Spar Hungary. “Our positive experiences in our first three own-operated stores and the positive feedback from our customers and colleagues have confirmed that we are on the right track,” he adds.

According to the company, the Pricer electronic labels enhance the customer experience, streamline work processes, and promote sustainable operations. Spar plans to introduce the technology in its other stores.

“The use of electronic shelf labels is an international trend that points towards modern, sustainable, and customer-

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The electronic shelf labels enable real-time price communication, so that current prices and promotions are always displayed on the shelves. The system offers several additional benefits for customers and store employees. For example, the new labels help stockers with their work by flashing LED signals, offering several color options that make it easier to identify products. If a store is

being rearranged, the system automatically tracks the relocation of products, which makes work organization much easier.

The retailer claims that the customer experience has been taken to a new level with the introduction of the near-field communication technology. By touching their smartphone to the label, customers can immediately access a map of the store, which not only shows the exact location of the product in question, but also features a search function, making it easy to find other products in the store.

Economical Operation

The system also represents a step forward for Spar stores from an IT perspective.

Thanks to Pricer’s optical control technology, fewer control units are required in each store, which makes not only installation but also operation more economical.

Spar’s latest supermarket in Hungary officially opened in Szentendre in April. The investment was worth approximately HUF 3.6 billion and was financed from the company’s own resources. With the help of Szintézis Informatikai Zrt., 13,000 four-color Pricer electronic shelf labels were installed.

All labels are NFC-enabled, allowing shoppers to access the digital store map, which also functions as a product search engine, with a single touch. Effective communication between employees is facilitated by Vocovo headsets, which have been in use since the store opened and were also provided by Szintézis.

“The product search function built into Pricer will save a lot of time and frustration. The Pricer infrastructure works like an in-store GPS. I touch my NFC-enabled phone to the label, the store floor plan opens, I type in what I’m looking for, and it shows me,” says Dávid Szabó, CEO of Szintézis Informatikai Zrt.

Spar Hungary says it remains committed to innovation and sustainability and will continue to strive to support the needs of its customers and the work of its employees with modern technological solutions.

Largest Shopping Centers in Hungary

Ranked by total net retail space

Projektmanagement

1 ÁRKÁD ÖRS VEZÉR TERE BEVÁSÁRLÓKÖZPONT www.arkadbudapest.hu

2 ARENA MALL www.arenamall.hu A

3 KÖKI BEVÁSÁRLÓKÖZPONT https://kokibevasarlokozpont.hu/ Cushman & Wakefield Kft. 1052 Budapest, Deák Ferenc u. 5. (1) 268-1288 www.cushmanwakefield.com

4

5 ETELE PLAZA https://eteleplaza.hu/

PÓLUS CENTER BEVÁSÁRLÓKÖZPONT https://polus-center.hu

Futureal Management Kft. 1082 Budapest, Futó u. 47. (1) 266-2181 www.futurealgroup.com

A

Van Graaf, C&A, Zara, Hervis, Bershka, Media Markt, New Yorker, Interspar, Reserved, Libri, Douglas, Sinsay, CCC, Deichmann, Müller, dm, Mango, Stradivarius

Peek & Cloppenburg, Media Markt, Sports Direct, Zara, Zara Home, H&M, H&M Home, Bonami, Dutch Home, BOSS, Bershka, Pull&Bear, Stradivarius, Libri, Michael Kors, CCC, Humanic

OBI, DinoPark, Tesco, Flashkart Gokart, Euronics, SportsDirect, H&M, C&A, Reserved, Sinsay, Koton, Hervis, New Yorker, CCC, Bershka, Pull & Bear, Fitness5, Libri, PEPCO, dm, Rossmann, Stradivarius, House, Póker szalon, Regio Játék, Cropp, KiK, Pirex, CIB Bank, OTP Bank, Flying Tiger, Deichmann, Sebastiano, Miniso, Douglas, Padthai Wokbar, Dorko, Retro Jeans, KFC, Burger King

Match, Hervis, Media Markt, Mammut Bowling, UPC, Posta, Cinema City, Mango, Spriengfield, Starbucks, Salamander, Humanic, Douglas, Deichmann, Promod, Marks and Spencer, McDonald’s, Benetton, Esprit, Libri, Alexandra, Okay Italia, Bershka, Butlers, Mammut Egészségközpont, Euromedic, Bio Sétány, Lite Wellness Club, Burger King, Nordsee

1106 Budapest, Örs vezér tere 25/A (1) 433-1400 info@arkadbudapest.hu

1087 Budapest, Kerepesi út 9. (1) 880-7010 info@arenamall.hu

1191 Budapest, Vak Bottyán utca 75. A-C (1) 919-1300 info@kokiterminal.hu

1024 Budapest, Lövőház utca 2–6. (1) 345-8000 mammut@mammut.hu

1119 Budapest, Hadak útja 1. (70) 652-0000 info@futureal.hu 6

CPI Hungary Kft. 1139 Budapest, Váci út 99–105. (1) 225-6600 www.cpigroup.hu

7 SAVOYA PARK www.savoyapark.hu

8 WESTEND BEVÁSÁRLÓKÖZPONT www.westend.hu

Forum Savoya Park Kft. 1117 Budapest, Hunyadi János út 19. CATINVEST SA. 19-21 Primaverii Bd., 2nd floor, sector 1., Bucharest

Westend Ingatlanhasznosító és

Üzemeltető Kft. 1062 Budapest, Váci út 1–3. (1) 374-6500 www.westend.hu

(1) 382-5100 www.whitestar-realestate.com

CAMPONA BEVÁSÁRLÓ- ÉS SZÓRAKOZTATÓKÖZPONT www.campona.hu CPI Hungary Kft. 1139 Budapest, Váci út 99–105. (1) 225-6600 www.cpigroup.hu

C&A, CCC, Deichmann, dm, H&M, Orsay, Hervis, Humanic, Libri, Media Markt, New Yorker, Pólus Mozi, Reserved, Sports Direct, Starbucks, Tesco, Marionnaud, Pepco, KiK, Regio Játék, Rossmann, Douglas, Café Frei, Fressnapf, Fitness Five & Gym, Ecofamily, Flying Tiger, Devergo & Friends, Dorko, Retro Jeans, Yves Rocher, Tefal, Tescoma, W.KRUK, Triumph, Vision Express, Pesti pipi, Pizza Hut, Optic World, Office Depot, Ofotért, OXO Bubble Tea, Kölyökpark, Homasita, Fruitisimo, Bubbles, Belfrit, Bio-Barát biobolt, BioTechUSA, Scitec Nutrition, WOK N’ GO, Salad box

Auchan, OBI, Möbelix, ALDI, Euronics, TEDi, KiK, Pepco, Deichmann, Fressnapf, dm, Rossmann, Sport Factory, BUDMIL, Vision Express, HADA, OTP, Raiffeisen, Pirex, Líra, Café Frei, Belfrit, Fitness 5, Funxional Gym, Triumph, Biohair, Brandt Virág

Bamba Marha Burger, Bellozzo, Bershka, Bijou Brigitte, Boss, Buddha Original, Burger King, Cafe Frei, Calvin Klein Jeans, Calzedonia, CCC, Cinema City-4DX,Converse, Columbia, Crocs, Deichmann, dm, Douglas, Ecco, Foot Locker, Gant, GAS Jeans, G-Star Raw & Replay, Guess Jeans, H&M, Helly Hansen, Hervis, Hisztéria, Hugo, Humanic, Intimissimi, Intimissimi Uomo, iSTYLE, Kazar, KFC, Kreatív Hobby, L’Occitane en Provence, LEGO, Levi’s, Libri, Lindt, LUSH, MAC, Mango, Marionnaud, Massimo Dutti, McDonald’s, Media Markt, Mesopotamia, Nespresso, New Yorker, NIKE Budapest, Nordsee, Office Shoes, Ofotért, Okay Italia, Pandora, Parfois, Pirex Papír, Pizza Hut, PULL&BEAR, PUPA Milano, Retro Jeans, Ribster, Rossmann, Samsonite Store, Samsung Experience Store, Sizeer, Skechers, Sony, SPAR, Springfield, Starbucks, Stradivarius, Swarovski, Tchibo, Tejmadár, Tefal, Tezenis, Thomas Breitling, Tisza Cipő, Tommy Hilfiger, Triumph, Under Armour, United Colors of Benetton, Vapiano, Vision Express, Westend Leroy, Wittchen, Women’secret, Yves Rocher, ZARA

Bamba Marha, Banana Moon, Bellozzo, Best Byte, budmil, Burger King, C&A, Cafe Frei, Calzedonia, Cinema City, Cserpes Tejivó, Deichmann, dm, Douglas, Ecco, Flying Tiger Copenhagen, H&M, Helly Hansen, Humanic, iCenter, Interspar, Intersport, Intimissimi, Intimissimi Uomo, JYSK, KFC, LEGO, Levi’s, Libri, Life1 Fitness, Lindt, L’Occitane, Lush, Mango, McDonald’s, Miniso, Mohito, Nespresso, New Yorker, Nike, Office Depot, Optik World, Padthai Wokbar, Pandora, Parfois, Planet Sushi, Pupa Milano, Reserved, Samsung Experience Store, Samsonite, Skechers, Starbucks, Superz.Budapest, Swarovski, Tamaris, Tatuum, Tchibo, Tezenis, Triumph, Van Graaf, Vision Express, Women’Secret, Zara, Zing Burger

Burger King, C&A, CCC, dm, Euronics, Fressnapf, H&M, Intersport, JYSK, Müller, Praktiker, Starbucks, Tesco

Tropicarium, Cinema City, Reserved, H&M, Sinsay, Cropp, House, New Yorker, C&A, Intimissimi/Calzedonia, Libri, Douglas, Marionnaud, Deichmann, CCC, Regio Játék, JYSK, Sports Direct, Sportisimo, Pepco, KiK, TEDi, Rossmann, dm, Cafe Frei

1152 Budapest, Szentmihályi út 131. (1) 910-5914 polus@cpipg.com

1117 Budapest, Hunyadi János út 19. (1) 887-1330 office@savoyapark.hu

1062 Budapest, Váci út 1–3. (1) 238-7777 info@westend.hu

1117 Budapest, Október huszonharmadika utca 8–10. (1) 372-7208 info@allee.hu

2220 Vecsés, Fő út 246–248. (29) 351-802 info@marketcentral.hu

1222 Budapest, Nagytétényi út 37–43. (1) 424-3000 info@campona.hu

15

LURDY HÁZ BEVÁSÁRLÓÉS IRODAKÖZPONT www.lurdyhaz.hu

Lurdy-Ház Kft. 1097 Budapest, Könyves Kálmán krt. 12–14. (1) 456-1200 www.lurdyhaz.hu

17 MALOMPARK BEVÁSÁRLÓKÖZPONT www.malompark.hu Malompark Üzemeltető Kft. (52) 745-600

18 GOBUDA MALL https://gobudamall.hu/

Magnum Hungaria Invest Kft. 1032 Budapest, Bécsi út 154.

SHOPMARK BEVÁSÁRLÓKÖZPONT https://shopmark.hu Grandum Ingatlankezelő Kft. 1134 Budapest, Váci út 17. (1) 888-4120 https://grandum.hu

CITYMARKET DUNAKESZI

https://dunakeszi.citymarketgroup. hu/hu/ CPI Hungary Kft. 1139 Budapest, Váci út 99–105. (1) 225-6600 www.cpigroup.hu

21 CSABA CENTER BEVÁSÁRLÓÉS SZÓRAKOZTATÓKÖZPONT www.csabacenter.hu

22 AGRIA PARK BEVÁSÁRLÓKÖZPONT www.agriapark.hu

Csaba Center Invest Kft. 5600 Békéscsaba, Andrássy út 37–43. (66) 524-530, (66) 524-525 www.csabacenter.hu

WPR Alfa Kft. 1095 Budapest, Máriássy u. 7. (36) 512-401, (36) 515-156 www.agriapark.hu

23 MALOM KÖZPONT https://malomkecskemet.hu/ MILL Partner Ingatlanhasznosító Kft. 6000 Kecskemét, Korona u. 2. (76) 402-200

24 SUGÁR ÜZLETKÖZPONT www.sugar.hu

Székhely 2007 Kft. 1025 Budapest, Palatinus utca 1. (1) 487-3746

25 STOP SHOP VESZPRÉM https://stop-shop.com/hu/ magyarorszag/veszprem CPI Hungary Kft. 1139 Budapest, Váci út 99–105. (1) 225-6600 www.cpigroup.hu

26 SZEGED PLAZA www.szegedplaza.hu INDOTEK GROUP 1133 Budapest, Váci út

CCC, Cinema City, Deichmann, H&M, Humanic, Intersport, Libri, KFC, LC WaiKiKi, McDonald’s, Media Markt, Reserved, Spar, Starbucks

Sinsay, C&A, Decathlon, Euronics, Hervis, H&M, JYSK, KFC, Müller, New Yorker, Reserved, Libri, Starbucks, Burger King

Aldi, Spar, Deichmann, Bestbyte/OfficeDepot, Sinsay, Pepco, KiK, TEDi, dm, Rossmann, Fressnapf, Líra, Scitec Gold Fitness Center, Boulder Academy, Lurdy mozi, Lurdy Rendezvényközpont, Krio Centrum, McDonalds, KFC, Belfrit, Fruitisimo, Frei Cafe, Mon Cremi, Wok n Go, Il treno, Aura by Hanami étterem, Gyrotheka - gyros bisztro, pest'O olasz étterem, Lipóti Pékség, Fornetti, Saxoo London, Barber House, Herba Forrás Biobolt, BioTechUSA, Sctiec Nutrition, Dr. Lenkei Életerő Centrum, Balance, Benu gyógyszertár, OTP Bank, Unicredit Bank, Thai masszázscentrum, Gumiszervíz, Greenline autómosó, Autókölcsönző, Szerencsejáték Zrt., Yettel, Synlab, Biolife plazmaközpont, One, Lili Rose, Merci&Fleur - virág/ ajándék, Amplifon, Gold Boutique, Topclean, Térképbolt, Szabóság, Perfect GSM, Optic world, Kalandpark játszóház, Opark - ázsiai élelmiszerüzlet, Express nails manikűr, Magyar Posta, Mister Minit, Préma Ásványékszer és Ajándékbolt

Spar, CCC, dm, Libri, Reserved, Müller, H&M, CINEMA MOM, Mohito, Butlers, Paulaner, Vapiano, Leroy, Spíler Buda, Gant, Karl Lagerfeld, Michael Kors, Furla, Liu Jo, Gerry Weber, Nubu, Helly Hansen

JYSK, Tesco, KiK, Deichmann, dm, OBI, Fressnapf

Interspar, Praktiker, Euronics, Magnet Divat, G4 Fitness, Háda, M.Posta, Plazma Központ, Malomparki Kispiac, Smart Diagnosztika

INTERSPAR, dm, KFC, Douglas, MOHITO, HOUSE, GOBUDA MOZI, GOBUDA Fitness Club, Pepco, Líra, Erste Bank, OTP Bank, MBH Bank, Wellensteyn, W.KRUK, Telekom, Yettel, DIGI, The Fishmonger, Café Frei, Stühmer Csokoládébolt és Cukrászda, Ofotért, Optic World

Reserved, Interspar, Hervis, Media Markt, CCC, Deichmann, Sinsey, Tezenis

Möbelix, Calzedonia, Deichmann, KiK, Pepco, Office Depot, Kangaboo, dm, WalterLand, Ecofamily, Nike, Dorko, Fressnapf, Dockyard

Háda, Deichmann, CCC, C&A, Douglas, OTP Bank, Tally Weijl, Spar, Vodafone, Vision Express, Orsay, Unicredit Bank, Telekom, Telenor, New Yorker, dm, Devergo, Media Markt, Hervis, Invitel, Galaxy Játékáruház, Cosmos City, Alexandra, budmil, Playersroom, Center Mozi, Fun City Bowling Bár

Agria Mozi, C&A, CCC, Deichmann, dm, Best Byte, Hervis, Burger King, KFC, Libri, New Yorker, OTP Bank, Pepco, Springfield, Unicredit Bank, Tesco

H&M, New Yorker, Douglas, Starbucks, Deichmann, Hervis, Springfield, Takko, OTP és Provident Regionális központ, Calzedonia, Intimissimi, Triumph, Libri, dm, McDonald's, KFC, Pizzahut, Pepco, Régió Játék

Sugár Mozi, Sugár Fitness, Spar, Libri, Háda, EURONICS, Vodafone, Telenor, Unicredit Bank, Telekom, Raiffeisen Bank, Galaxy Játékáruház, CIB Bank, dm, SUGÁR Játszóház, SUGÁR Bowling & Pub, Magyar Posta, Extreme Digital, BÁV, Ofotért

Interspar, Humanic, Takko, C&A, New Yorker, Fressnapf, dm, Intersport, Deichmann, KiK, Hervis, Pepco, Sinsay, Libri, House

1138 Budapest, Váci út 178. (1) 465-1600 info@dunaplaza.hu

1082 Budapest, Futó utca 37–45. (1) 977-7779 info@corvinplaza.hu

Aldi, CCC, Cinema City, H&M, Libri, Pepco, Rossmann

1097 Budapest, Könyves Kálmán körút 12–14. (70) 461-1830 titkarsag@lurdyhaz.hu

1123 Budapest, Alkotás utca 53. (1) 487-5501 info@mompark.hu

6729 Szeged, Szabadkai út 7. (1) 920-2193 info@napfenypark.hu

4027 Debrecen, Füredi út 27. (52) 483-080 malompark@malompark.hu

1032 Budapest, Bécsi út 154. (70) 515-8403 info@gobudamall.hu

1191 Budapest, Üllői út 201. (20) 823-8645 info@grandumpm.hu

2120 Dunakeszi, Nádas utca 8. (1) 225-6600 hungary@cpipg.com

5600 Békéscsaba, Andrássy út 37–43. (66) 524-524 csabacenter@csabacenter.hu

3300 Eger, Törvényház utca 4. (36) 515-156 info@agriapark.hu

6000 Kecskemét, Korona utca 2. (76) 402-200 kecskemet@malom.hu

1148 Budapest, Örs vezér tere 24. (1) 469-5359 sugar@sugar.hu

8200 Veszprém, Dornyai Béla utca 4. (1) 225-6600 hungary@cpipg.com

6724 Szeged, Kossuth Lajos sugárút 119. (30) 551-1034 info@szegedplaza.hu

9025 Győr, Csipkegyári utca 11. (96) 314-746 info@dunacenter.com 28

BEVÁSÁRLÓKÖZPONT www.korzo.hu SES Magyarország Kft. 2060 Bicske, SPAR út www.ses-european.com

30 MISKOLC PLAZA www.miskolcplaza.hu

CCC, Cinema City, Deichmann, BestByte, Pepco, KFC, Rossmann, Pizza Hut

SPAR, New Yorker, Best Byte, Deichmann, Douglas, Sinsay, dm, Erste Bank, Libri, TEDi, KiK, Pepco, Mohito, KFC, Cropp

CCC, Cinema City, Deichmann, H&M, Half Price, KFC, Libri, McDonald’s, Pizza Hut, Reserved

9024 Győr, Vasvári Pál utca 1/A (1) 577-1100 info@gyorplaza.hu

4400 Nyíregyháza, Nagy Imre tér 1. (42) 799-111 korzo@korzo.hu

3525 Miskolc, Szentpáli út 2–6. (1) 577-1100 info@miskolcplaza.hu 31 STOP SHOP ÓBUDA https://stop-shop.com/hu/ magyarorszag/budapest-obuda

Hungary Kft. 1139 Budapest, Váci út 99–105. (1) 225-6600 www.cpigroup.hu

CITYMARKET SOROKSÁR https://soroksar.citymarketgroup.hu/hu/

Hungary Kft. 1139 Budapest, Váci út 99–105. (1) 225-6600 www.cpigroup.hu

STOP SHOP ÉRD

https://stop-shop.com/hu/ magyarorszag/erd

CPI Hungary Kft. 1139 Budapest, Váci út 99–105. (1) 225-6600 www.cpigroup.hu

STOP SHOP DEBRECEN https://stop-shop.com/hu/ magyarorszag/debrecen

CPI Hungary Kft. 1139 Budapest, Váci út 99–105. (1) 225-6600 www.cpigroup.hu

S-PARK KAPOSVÁR www.s-park-kaposvar.hu

STOP SHOP GÖDÖLLŐ https://stop-shop.com/hu/ magyarorszag/goedoello

SES Magyarország Kft. 2060 Bicske, SPAR út www.ses-european.com

CPI Hungary Kft. 1139 Budapest, Váci út 99–105. (1) 225-6600 www.cpigroup.hu

ZONE BEVÁSÁRLÓPARK

BUDAKESZI https://zonepark.hu

Grandum Ingatlankezelő Kft. 1134 Budapest, Váci út 17. (1) 888-4120 https://grandum.hu

Spar, Media Markt, C&A, Pearl Harbor restaurant & bowling, Mountex, Deichmann, dm, H&M, Fressnapf, Kangaboo, Libri

1032 Budapest, Bécsi út 136. (1) 225-6600 hungary@cpipg.com

Media Markt, Mountex, Brendon, Office Depot, Ecofamily, Líra, AzAlvásért, WalterLand, Gyerekcenter

1231 Budapest, Bevásárló utca 8. (1) 225-6600 hungary@cpipg.com

Spar, CCC, McDonald’s, New Yorker, dm, Deichmann, KiK, Victory Fitness, Pepco, Takko, H&M

2030 Érd, Budai út 13. (1) 225-6600 hungary@cpipg.com

Müller, H&M, Kedvenc Szakáruház, Intersport, Kangaboo, Deichmann, New Yorker, Pepco, Takko, CCC, Sinsay

4031 Debrecen, Kishatár út 34/B (1) 225-6600 hungary@cpipg.com

dm, Hervis, Deichmann, McDonald's, KiK, Pepco

7400 Kaposvár, Árpád út 20. –info@sparkkaposvar.hu

Müller, C&A, Hervis, KFC, H&M, New Yorker, Fressnapf, dm, KiK, Euronics, Budmil

2100 Gödöllő, Bossányi Krisztina utca 2. (1) 225-6600 hungary@cpipg.com

Deichmann, Ecofamily, Fressnapf, KiK, Müller, Pepco, Tesco

2092 Budakeszi, Bianka utca 1. –info@grandumpm.hu

STOP SHOP SZOLNOK https://stop-shop.com/hu/ magyarorszag/szolnok

CPI Hungary Kft. 1139 Budapest, Váci út 99–105. (1) 225-6600 www.cpigroup.hu

ZONE BEVÁSÁRLÓPARK

DUNAÚJVÁROS https://zonepark.hu

ZONE BEVÁSÁRLÓPARK SZOMBATHELY

https://zonepark.hu

EUROPEUM BEVÁSÁRLÓKÖZPONT www.europeum.hu

Grandum Ingatlankezelő Kft. 1134 Budapest, Váci út 17. (1) 888-4120 https://grandum.hu

Grandum Ingatlankezelő Kft. 1134 Budapest, Váci út 17. (1) 888-4120 https://grandum.hu

CPI Hungary Kft. 1139 Budapest, Váci út 99–105. (1) 225-6600 www.cpigroup.hu

ZONE BEVÁSÁRLÓPARK PÉCS https://zonepark.hu

ZONE BEVÁSÁRLÓPARK KISKUNHALAS https://zonepark.hu

ZONE BEVÁSÁRLÓPARK SZENTES https://zonepark.hu

ZONE BEVÁSÁRLÓPARK KAZINCBARCIKA https://zonepark.hu

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4 Socialite

The Art of Life in Sultry Budapest

The Art Nouveau exhibition “Art of Life” at the splendid Hungarian National Gallery is the sequel to its much-visited “Art Deco Budapest: Posters, Lifestyle and the City (19251938)” exhibition of 2022. Spending an afternoon in the cool, marble interior of the National Gallery is a fine way to soak up art and escape the heat of the Budapest summer.

DAVID HOLZER

A clue to the importance of Art Deco and Art Nouveau for Hungarians and visitors alike lies in the Hungarian National Gallery exhibition titles. These movements shaped not just how Budapest looks, but also how city life felt and feels. Although the Hungarian National Gallery celebrated Art Deco first, as a movement it came after Art Nouveau.

Arising around the end of the 19th century, Art Nouveau was a response to the industrial revolution and mass production, applying modern methods of production to time-honored artistry and craftsmanship. Inspired by the promise of the present and optimism about the future, it aimed to transcend the supposed distinctions between decorative and fine art.

As the Hungarian National Gallery says, the goal was to “reshape the whole of visual culture in the spirit of modernity from buildings to leaflets. Since Gesamtkunstwerk, the total work of art, was regarded as the ideal of Art Nouveau, it was truly ‘the art of life’ with its aestheticism imbuing everyday life.”

Rather than being inspired by the styles of the past to mimic, let’s say, classical Greek murals, Art Nouveau employed natural imagery that inspired smooth curves, flowing lines, and twists and turns that paid homage to organic forms. Line and form are more important than color, which is often neutral, subtle or pastel-like. Transmuted into Secessionism in Hungary, the modern fusing with this country’s hunger for true independence after the 1867 AustroHungarian Compromise, Art Nouveau left a flamboyant mark on Budapest. The Sonnenberg House in District VI, located at 23 Munkácsy Mihály utca, is a particularly impressive example of Secessionist architecture that also evokes Gaudí’s Barcelona.

Géza Faragó: Tungsram Tungsten Lamp, 1912–1914. Lithograph on paper; 125.5 × 95 cm. Grafikai Intézet, Budapest. Museum of Fine Arts – Hungarian National Gallery, Budapest. Founded in 1896, the United Incandescent Lamp and Electricity Company, using the brand name Tungsram, introduced tungsten bulbs in 1912, which shone whiter than earlier types. In Géza Faragó’s beautiful poster, light is shown in a lyrical manner and on several planes: both characters of the waterside scene, the woman in a broad-brimmed hat, whose figure recalls a shaded floor lamp, as well as the black cat with the glowing eyes, can be seen as symbols of electricity.

Somewhat of an inevitable reaction to Art Nouveau, Art Deco emerged out of the 1925 Paris Exposition Internationale des Art Décoratifs et Industriels Modernes. In a sleek, streamlined nutshell, it’s modernism as fashion. For instance, Cubist art influenced Art Deco’s use of zigzagging patterns, vertical lines and rectilinear forms.

Post-WWI Elegance

Using materials that had emerged or been refined by technology such as plastic, stainless steel, aluminum, glass and concrete, Art Deco introduced a post-WWI decorative modern elegance symbolizing affluence, sophistication and

Although inspired by nature and its forms, Art Nouveau took full advantage of the development of print techniques such as Cheret’s “three stone lithographic process,” which, as the term suggests, used only three lithographic stones to produce a complete rainbow of colors. In the hands of a master artist and a careful printer, Cheret’s breakthrough made it possible for poster artists to create work that stood out under the then-newly introduced electric streetlights, first installed in Paris in 1878.

The Hungarian city of Temesvár, now Timișoara in Romania, became the first European city to introduce electric street lighting with a direct current (DC) distribution system in 1884.

In Hungary, the introduction of the poster as a new genre, along with a new style readymade for it, meant that Art Nouveau caught the popular imagination and was promoted by exhibitions, journals, and institutions.

Dominant Form

The 120 posters on display, created by famous Hungarian painters such as József Rippl-Rónai, János Vaszary, and Károly Ferenczy, as well as specialist poster artists Géza Faragó, Mihály Biró, Ferenc Helbing, and Márton Tuszkay, demonstrate how the poster became a dominant promotional form.

Manifesting the Art Nouveau ideal of beauty expressed through flowing lines and the subtle use of color, the posters on display advertise all aspects of modern life from commercial products to newspapers and entertainment in the form of theaters, cabarets and nightclubs. They evoke middle-class Budapest, especially the life of suburban women, the atmosphere of coffeehouses and popular leisure activities such as visiting spas.

After you’ve whiled away the afternoon in the cool of the National Gallery, you might like to spend a night outside under the stars rather than head for a bar or restaurant.

Starting in late July, the city is offering two programs that give movie buffs and anyone who wants an excuse to sit outside on a balmy summer night the opportunity to watch movies al fresco

The CineSpa initiative at Széchenyi Baths will be showing the 2017 musical “The Greatest Showman,” about the life of P.T. Barnum, on July 25, and the 2022 independent neo-noir thriller “Bluff” on July 29. The latter is a bit of a strange choice, but there you go. In any case, the movie will probably come second to swimming in this evocative setting. The movies start at 9 p.m.

glamor that was applied to everything from everyday objects to architecture.

The exhibition at the Hungarian National Gallery is the first comprehensive exhibition of Hungarian Art Nouveau poster art. It is accompanied by a Hungarian and an English catalogue and curated by art historian Anikó Katona. Posters were a response to late 19th-century metropolitan life and the rise of advertising to promote consumption. They were also, from the beginning, regarded as high art with their own aesthetic and specialist collectors. Alongside ToulouseLautrec, artists such as Alphonse Mucha and Gustav Klimt worked in this form.

From the end of July, there’s also the “Road Movie” initiative with Hungarian movies being shown in outdoor locations. In August, you can see films including the comedy “Sose Halunk Meg” (“We Never Die”) at Pünkösdfürdői Strand on Aug. 21, and adult animation “Macskafogó” (“Cat City) at Dunafok on Aug. 29. The program starts at 8 p.m. I’m not sure if the movies are subtitled, but it’s a great excuse to travel to parts of the city you might never otherwise have a reason to visit.

Find out more about the Széchenyi CineSpa program at szechenyifurdo.hu and the Garden Cinema/Road Movie series at facebook.com/budapestkertmozi.

Hungarian Astronaut Returns Safely as Axiom-4 Capsule Splashes Down off California Coast

The SpaceX Dragon capsule carrying the Axiom-4 crew, including Hungarian research astronaut Tibor Kapu, landed safely off the coast of California at 11:31 a.m. Hungarian time on July 15, according to the state news agency MTI.

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The capsule had disengaged from the International Space Station (ISS) at 1:15 p.m. CET on July 14 and began its 22.5-hour return

Culture

journey to Earth. The crew had closed the airlocks shortly after 11 a.m. CET to begin pressure equalization and safety checks ahead of departure.

in Brief News

Kőszeg Wines Gain EU PDO Status

Wines from Kőszeg (220 km west of Budapest by road) have been granted Protected Designation of Origin (PDO) status in the European Union’s eAmbrosia database, the European Commission announced on Friday, July 18. “The production area of Kőszeg town is one of the oldest wine regions in Hungary, with a long-standing cultural and economic tradition of viticulture,” the EC said. Several Hungarian wine regions already hold PDO status, including Badacsony (180 km southwest of Budapest), Eger (135 km east), Tokaj (225 km northeast), and Villány (220 km to the south).

Hungary Launches Space Industry Network

With Universities, Ministries, Hun-Ren Nine universities, two ministries, and the Hun-Ren Hungarian Research Network signed an agreement to establish a national space industry network, according to a statement issued on July 14.

The Hungarian Spacelab Network aims to strengthen collaboration and build on the achievements of experiments conducted by Hungarian astronaut Tibor Kapu, Minister of Culture and Innovation Balázs Hankó said at the signing ceremony.

He described Hungary’s involvement in the space industry and research as a testament to the country’s excellence in science, education, and innovation.

Hankó noted that while there were initial doubts about the Hungarian to Orbit program, its objectives have been fulfilled. He credited the success to the contributions of Hun-Ren, the Ministry of Foreign Affairs and Trade, the Ministry of Culture and Innovation, and local universities.

Timișoara Hoping to Draw in Hungarian Art Lovers

This summer, the Romanian city of Timișoara (known to Hungarians as Temesvár) has become a vibrant cultural hub that invites travelers open to art and music to explore. Since Romania joined the Schengen Area,

The capsule re-entered Earth’s atmosphere at more than 27,000 km/h, briefly losing communication with mission control for about seven minutes.

Timișoara can be reached from Budapest in just under three hours by car, without having to wait at the border. The organizers say that Timișoara will be more than just a city: it will be a cultural space where every visitor can enjoy an exciting experience. From Aug. 1-3, the “City Celebrations” events will feature the participation of world stars such as Mika and James Bay.

Debrecen Campus Festival Draws Record 121,000 Visitors

A record 121,000 people attended the Campus Festival in Debrecen (225 km east of Budapest by road) over its four-day run, with the highest single-day turnout recorded on Saturday, July 19, according to the organizers in a statement issued on July 20.

They described the event, which wrapped up Saturday night, as a blend of classic festival freedom and modern comfort and technology.

The festival opened on July 16, following 10 months of planning and nearly two weeks of construction. It featured more than 250 musical acts and roughly 1,000 cultural programs across 21 venues.

Festival director Péter Miklósvölgyi noted that while several major domestic festivals have been canceled or suspended, Campus continues to attract stable and even growing

Approximately four minutes before splashdown, two small stabilizing parachutes deployed, followed by four main parachutes. The recovery vessel SpaceX Shannon and accompanying speedboats reached the landing site, where, following safety checks, the capsule was hoisted aboard the rescue ship.

Commemorative Coin

Meanwhile, the National Bank of Hungary (MNB) announced on July 16 that it will release a commemorative coin this fall in recognition of the Hungarian to Orbit (Hunor) program.

The coin will be minted in silver and non-ferrous metal versions with face values of HUF 20,000 and HUF 3,000, respectively.

Its obverse will portray the connection between Earth and space, along with the miracle stag, an emblem from Hungarian mythology, depicted as a constellation. The reverse will feature profile images of Kapu and his understudy, Gyula Cserényi.

The MNB previously issued a commemorative coin in 1980 honoring Hungary’s first astronaut, Bertalan Farkas.

attendance thanks to support from the city of Debrecen, the University of Debrecen, and local and national partners. He added that next year’s event will take place from July 22 to 26 in Nagyerdő.

Debrecen Named Finalist for 2027 European Green Capital Award

Debrecen (225 km east of Budapest by road) has been named one of the top three finalists for the European Green Capital 2027 award, according to a statement issued by the city’s press service on July 11, following the publication of the shortlist by the European Commission. Heilbronn in Germany and Klagenfurt in Austria join Hungary’s secondlargest city in the final round of the competition, which is open to municipalities with populations exceeding 100,000. The EC noted that Debrecen led the field in sustainability, earning the highest score among the contenders. “The Hungarian city excels in biodiversity, green areas and sustainable land use, as well as in waste management and the circular economy,” it said, highlighting Debrecen’s 16% increase in green spaces and extensive tree-planting efforts to improve its microclimate. The winner will be announced at a ceremony on Oct. 2 in Vilnius, the current European Green Capital.

Chamber of Commerce Corner

This regular section of the Budapest Business Journal features news and events from various international business chambers. For further information and to register for specific events, visit the organizing chamber’s website. If you have information for inclusion on this page, send an email in English to Annamária Bálint at annamaria.balint@bbj.hu

British Chamber of Commerce in Hungary (BCCH)

The BCCH invites guests to return to a quintessentially British sport, the ancient pastime of golf, sponsored by loyal member FirstMed. The event will feature a full nine-hole game for experienced players, coaching for newcomers, and a reception with food and refreshments provided by our hosts, Botaniq Máriavölgyi Golf Klub. Transportation to and from the venue will be provided by BCCH partner Budapest Motors, departing from the Dorothea Hotel Budapest. •• Where: Botaniq Máriavölgyi Golf Klub (8087 Alcsútdoboz, Máriavölgy) •• When: Thursday, Sep. 18. The nine-hole game starts at 10 a.m.; the non-golfers’ events at 11 a.m. There is a limited number of available spots for the transfer, which will set off a few minutes after 10 a.m. from the Dorothea. •• Fees: Members HUF 20,000 + VAT; non-members HUF 30,000 + VAT

Italian Chamber of Commerce for Hungary (CCIU)

On July 10, industry leaders, HR professionals, and institutional stakeholders gathered at the Ybl Palace in Budapest to take part in “Navigating Workforce Trends in Hungary’s Evolving Economy,” a high-level event dedicated to analyzing the shifting dynamics of the Hungarian labor market and its strategic importance for international investors, particularly Italian-owned enterprises. Organized with the support of Gi Group Holding, the morning event provided a comprehensive overview of emerging workforce trends, skill shortages, and regional disparities shaping Hungary’s employment landscape. The keynote address, grounded in Gi Group Holding’s most recent research, offered attendees data-driven insights into the challenges and opportunities facing foreign employers. A panel discussion brought together seasoned executives from major Italian companies operating in Hungary, including CIB, Bitron and Vizi & Partners. Panelists shared practical HR strategies, ranging from talent acquisition and employer branding to the complexities of greenfield investments. With more than three hours of in-depth dialogue and expert exchange, the event underscored Hungary’s growing role as a pivotal hub for international business and investment. It also highlighted the importance of building resilient, people-focused strategies in response to rapid economic transformation.

Canadian Chamber of Commerce in Hungary (CCCH)

On July 17, the CCCH hosted its sold-out Sailing Balaton event aboard the iconic Nemere II cruiser. Departing from Balatonfüred’s LUA Resort, the threehour tour provided members and guests with a unique blend of networking and leisure on Hungary’s most legendary sailing yacht. Built in 1944 and famed for its Blue Ribbon victories, the Nemere II delivered both elegance and speed. Perfect summer weather, light refreshments and excellent company made for an unforgettable experience on Lake Balaton.

German-Hungarian Chamber of Industry and Commerce (DUIHK)

The DUIHK is organizing an exclusive trade mission to Germany from Nov. 17-20, which will provide insights into the cutting-edge aerospace and space industries. During the program, participants will visit leading industry players, including DLR, Airbus, Diehl Space, and MBDA. At the Space Tech Expo Europe trade fair in Bremen, participants can look forward to personal meetings and guided tours. The four-day trip offers an excellent opportunity for networking, business inspiration and gaining up-to-date technological knowledge. The program targets corporate decisionmakers, engineers, and developers who are planning or are already actively involved in the aerospace industry or supply chain, or who are interested in new technologies. For more information and to register, check the German chamber website, www.ahkungarn.hu

Swiss-Hungarian Chamber of Commerce (Swisscham)

Sustainability and competitiveness must reinforce each other rather than come at each other’s expense; this was the key message at the Swisscham event held during the third Blue Ribbon Business Summit in Balatonfüred, alongside the 57th Blue Ribbon sailing race. Environmental sustainability cannot exist independently of economic and social sustainability, and achieving this requires the involvement of government, the business sector, and non-profit organizations. For long-term development, it is increasingly necessary to examine the relationship between sustainability and competitiveness in a more complex and multifaceted way, said István Béres, president of Swisscham, which celebrates its 30th anniversary this year. At the professional event, organized with partners including the Swiss Embassy and Philip Morris Hungary, Swiss chargé d’affaires Thomas Widmer noted that, while

strong winds may benefit sailors, in business, predictability and stability are essential, something that also serves the interests of Swiss companies investing in Hungary. State Secretary for Tax Affairs, Consumer Protection, and Trade Bence Gerlaki emphasized that Switzerland is Hungary’s seventh most important trading partner, with Swiss companies having invested 3.8 billion euros in the country. The nearly 900 Swiss companies present in Hungary employ more than 32,000 people nationwide, and are characterized by high technological advancement and skilled labor. The Hungarian government aims to strengthen its economic policy further based on tax reduction, investment incentives, and job creation. “To ensure Hungary remains an attractive investment environment, preserving national sovereignty in tax policy is a key issue,” Gerlaki stressed. State Secretary for Circular Economy and Climate Policy

Hungarian-French Chamber of Commerce and Industry (CCIFH)

The CCIFH, in cooperation with the Hungarian Export Promotion Agency, is organizing its third HungarianFrench Business Forum at the end of September. The event will bring together procurement representatives from the Hungarian subsidiary of four major French companies (Alstom, Michelin, Sanofi and Valeo), offering an excellent opportunity for Hungarian suppliers to expand their commercial activities and establish new business partnerships with these large corporations. The Deputy State Secretary for Foreign Trade Development and the French Ambassador to Hungary will open the forum, followed by presentations from the aforementioned companies, during which they will outline their purchasing activities and needs. After lunch, B2B meetings will provide French and Hungarian companies with the opportunity to identify potential areas of cooperation.

• When: Sep. 30, 9 a.m.-5 p.m. • Where: Mercure Budapest Korona Hotel, Kecskeméti utca 14., 1053 Budapest

• Fee: With confirmed B2B meeting, HUF 29,900 plus VAT/meeting; without B2B, HUF 14,900 plus VAT.

American Chamber of Commerce in Hungary (AmCham)

To celebrate the 249th birthday of the United States, AmCham members gathered for a vibrant, familyfriendly afternoon at Öbölház, located at Kopaszi Dam. Guests enjoyed a festive menu featuring, among others, classic American hot dogs and U.S.-themed pop cakes. Two eye-catching Ford models, the Mustang Mach-E Rallye and the iconic 1967 V8 Mustang, were on display. Attendees could also join an interactive game to win a variety of prizes offered by Ford, with a weekend test drive as the grand prize. The program also included a chocolate tasting, refreshing summer cocktails courtesy of Diageo, and a dedicated selfie corner to capture fun memories. Children had a lively play area of their own, making the afternoon enjoyable for all generations.

Csaba Gondola highlighted the government’s integration of waste management and climate policy into a competitiveness-focused structure. He believes that a successful green transition requires the development of well-functioning economic and operational models. In his view, everyone must accept that environmental sustainability cannot exist without economic and social sustainability. An excellent tool for this is strengthening the circular economy model, with the mandatory deposit return system cited as a good example. “We want to be part of the solution, not the problem,” declared Maria Dimopoulou, European head of sustainability collaboration at Philip Morris International. She emphasized that the key to sustainability lies in aligning economic growth with social and environmental responsibility. She highlighted the importance of both Switzerland and Hungary to the company, referencing the R&D center in Neuchâtel and the recycling plant in Gyál, which

officially opened in 2021 with government participation and represents a USD 20 million investment. This unique facility in Europe receives used electronic devices from across the continent, supporting the circular economy. Barbara Wassen (Ministry of Energy), Péter Szlávik (Philip Morris Hungary), Péter Noszek (Nestlé Hungária), and Farkas Bársony (Sharity) discussed in a Swisscham roundtable how the attitudes of government, society, the business sector, and non-profits toward sustainability have evolved in recent years. It was reiterated that sustainability and competitiveness must go hand in hand. Climate adaptation and flexibility are crucial, and if all stakeholders work together, CO₂ emissions could be reduced by 40-70% within a foreseeable timeframe. However, currently only 16% of companies have an ESG strategy. There is no alternative path, as while it took 10,000 years for the average temperature to rise by 5°C in the past, the same increase has occurred in just the last 70 years.

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