BBJ_3318

Geothermal: Big Potential, but Limited Progress

There was no shortage of ambitious, admirable goals touted for Hungary and Europe at the 3rd Budapest Geothermal Energy Summit on Sep. 26, but developments are often proving problematic.  17

Making Solar Investments Truly

Nature-positive

Hungary has taken a leading role in one of Europe’s most ambitious research initiatives aimed at reshaping the way solar energy projects are financed. Corvinus University's Sustainable Finance Research Center is heading the financial work package of the BioSolar project.  22

The Wonders of a Walk in the Buda Hills

Minutes into his first walk in the Buda Hills, David Holzer was asking myself, “Why have I never done this before?” He says he can’t think of another city, certainly not a capital, where one can be in hilly open country so quickly.  28

Reliable and Ready to Grow

Base Rate Unchanged, No Room for Loosening

The National Bank of Hungary (MNB) did not surprise in keeping the base rate unchanged; the indicator has been at 6.5% for a year now. The MNB has made it clear there is no room for easing monetary conditions while inflation remains above target.  3

Executive board member of the German-Hungarian Chamber of Industry and Commerce Barbara Zollmann discusses the impact of German businesses in Hungary, bilateral trade, the switch to value-added investments, and areas for future  growth. 12 BUSINESS

According to recent research, Hungarians expect improvements in their quality of life to come from innovation in areas like sustainable energy, climate protection, mobility, healthcare, and biotechnology.  7 Hopes for Smart Cities,

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.

LISTS: BBJ Research (research@bbj.hu)

NEWS AND PRESS RELEASES: Should be submitted in English to news@bbj.hu

LAYOUT: Zsolt Pataki

PUBLISHER: Business Publishing Services Kft.

CEO: Tamás Botka

ADVERTISING: AMS Services Kft.

CEO: Balázs Román

SALES: sales@bbj.hu

CIRCULATION AND SUBSCRIPTIONS: circulation@bbj.hu

Address: Madách Trade Center

1075 Budapest, Madách Imre út 13-14, Building B, 7th floor. Telephone +36 (1) 398-0344, Fax +36 (1) 398-0345, www.bbj.hu

THE EDITOR SAYS

A RELATIONSHIP 1,000 YEARS IN THE MAKING

BBJ-PARTNERS

Why Support the BBJ?

• Independence. The BBJ’s journalism is dedicated to reporting fact, not politics, and isn’t reliant on advertising from the government of the day, whoever that might be.

• Community Building. Whether it is the Budapest Business Journal itself, the Expat CEO award, the Expat CEO gala, the Top Expat CEOs in Hungary publication, or the new Expat CEO Boardroom meeting, we are serious about doing our part to bind this community together.

• Value Creation. We have a nearly 30-year history of supporting the development of diversity and sustainability in Hungary’s economy. The fact that we have been a trusted business voice for so long, indeed we were the first English-language publication when we launched back on November 9, 1992, itself has value.

• Crisis Management. We have all lived through a once-in-a-century pandemic. But we also face an existential threat through climate change and operate in a period where disruptive technologies offer threats and opportunities. Now, more than ever, factual business reporting is vital to good decision-making.

For more information visit budapestbusinessjournal.com

When you are a country as landlocked as Hungary, you necessarily have a lot of international relations, starting with those seven bordering nation-states. But, for all the talk of the close bonds with the United States or the Eastern Opening to China, in particular, few if any of Hungary’s relationships are as consequential as the one with Germany. There is, of course, history here. Depending on how picky you want to be about what constitutes Germany, you can go all the way back to King-Saint István’s marriage to Gisela, daughter of the Duke of Bavaria, and sister of the future Holy Roman Emperor, Henry II. The heavily armed Bavarian knights that Gisela brought with her proved more than helpful to István in solidifying his position as Hungary’s first Christian king. But you can go even further back than that: the pagan Magyar horse warriors were much taken with raiding what we would now call Germany, until a Hungarian army led by Bulcsú was annihilated at the Battle of Lechfeld in August 955, a defeat which forced the Hungarians to retreat and lick their wounds (they never invaded Germany again), while also leading to a revival of the Holy Roman Empire and, for a while, German dominance over it.

There were plenty of other interactions over the years, but fast forward the best part of a millennium, and Germany was very much enamored with Hungary, if only as the place where East and West Germans, otherwise separated by the Berlin Wall, could meet in relative peace on Balaton’s strands. Those Zimmer Frei! signs on houses around the lake weren’t so much calling out to Austrians as to Germans. The role Hungary played in allowing East Germans through the Iron Curtain into Austria and on to West Germany has not been forgotten.

For a while, Hungarians and Germans were political allies, and the money flowed into this country. It still does, though few would claim the politics is anywhere near as warm as it once was. The Hungarian government is well aware of this. Speaking ahead of German Unity Day on Friday (Oct. 3), Minister of the Prime Minister’s Office Gergely Gulyás suggested that cooperation and shared priorities should take precedence in German-Hungarian relations; the differences that exist between the two governments do not impact interpersonal relations, he insisted. It is a view with which Ágoston Sámuel Mráz, head of the Nézőpont Institute, would agree. For this year’s annual Hungary-Germany Barometer, a survey of 1,000 respondents in each country revealed that 43% of Germans and 66% of Hungarians hold a positive view of the other nation. Moreover, 65% of Germans and 75% of Hungarians expressed a desire for closer bilateral ties, Mráz says. A relationship that goes back more than 1,000 years will, inevitably, have its peaks and troughs. For now, the emphasis is on personal connections and common business interests. BMW’s cutting-edge factory in Debrecen opened as we were preparing the Germany Country Focus inside this issue. As EY partner Róbert Ésik says in our exclusive interview inside, “There are 2,400 German companies, and they continue to spend significant amounts of money on investments on an annual basis. Mostly these are expansion projects or additions of [….] functional areas.” While the politicians continue to talk past each other, business relations continue to shape both countries.

Robin Marshall Editor-in-chief

THEN & NOW

In the 1958 black-and-white photo from the Fortepan public archive, elderly men pass the time playing chess in the cultural waiting room of Budapest’s Nyugati Railway Station as they await their trains. In the modern color image from Tuesday, Sep. 30, taken by the state news agency MTI, a participant challenges a chess-playing robot at the 11th Judit Polgár Global Chess Festival, held at the Hungarian National Gallery.

1News • macroscope

Base Rate Left Unchanged, No Room for Loosening

The National Bank of Hungary (MNB) did not surprise in keeping the base rate unchanged; the indicator has been at 6.5% for a year now. The MNB has made it clear there is no room for easing monetary conditions yet, while inflation remains above target.

The September rate-setting meeting of the Monetary Council marked the one-year anniversary of introducing the current base rate. That the 6.5% key rate remained unchanged once again was in line with analysts’ expectations.

There is likely to be no room for easing in the coming months, as inflation was at 4.3% in August, still above the central bank’s 2-4% target range. The earliest the rate of price increases might fall below 4% is believed to be in the last months of this year. However, due to the base effect, it is conceivable that inflation will fall below 3% in early 2026.

The decision means that the base rate will remain at a level that has helped keep the forint strong since the beginning of the year. In recent months, the Hungarian currency has become a favorite of carry trade investors globally, profiting from the interest rate difference, and it is primarily due to this that it has strengthened to 390 against the euro.

The decision by the MNB surprised no one. Based on the central bank’s previous communication, it could have been expected that monetary conditions would not change, says Dániel Molnár, head analyst at economic think-tank GFÜ Gazdaságkutató Intézet.

“We basically expect that the first 25 basis point interest rate cut will only take place at the end of the year, which

is conditional on the Fed continuing to cut interest rates and the uncertainty regarding the inflation path,” he notes.

Cautious Approach

“We also expect only a cautious 100 basis point [overall] interest rate cut next year, as the uncertainty of the international environment may make it necessary to maintain tighter monetary conditions in the longer term,” Molnár adds. He is not alone in holding that view.

“We believe that the MNB will not be able to reduce the interest rate for at least another few months, and we expect a base rate of 6.5% by the end of 2025,” says MBH Bank analysts Márta Balog-Béki and Ákos Sümegi.

“The primary reason for this is that inflation continues to move outside the target range.

In 2026,

we may see inflation figures within the tolerance range, but it is important to mention that the future elimination of margin stops appears as an upside risk. We expect the government to eliminate this sometime in mid-2026,” the analysts add.

The forint has strengthened again since the last interest rate decision; one of the most important reasons for this, analysts say, is the everwidening interest rate differential. The strong forint helps disinflation processes, primarily in the prices of fuel and durable consumer goods.

For the inflation-reducing effect to be lasting, the forint should remain at strong levels for a long time.

“Since another interest rate cut is expected from the ECB, and the Fed has also started the path of interest rate cuts, the MNB’s room for maneuver is also increasing,” Balog-Béki and Sümegi argue.

“At the same time, the MNB is expected to be very careful not to risk a weakening of the forint as a result of an interest rate cut. For all these reasons, we believe that the interest rate cut cycle may start sometime in 2026, and we expect a base rate of 6% by the end of next year,” the MBH analysts say.

Macro Trajectory

In the meantime, the MNB has, once again, changed its macro trajectory. As it turns out from the latest Inflation Report, central bankers now expect economic growth of only 0.6% this year, slightly below the 0.8% forecast in June.

Speaking at a press conference held after the Monetary Council meeting, MNB Governor Mihály Varga explained that the reduction in this year’s GDP forecast was due to the weaker-thanexpected performance of the agricultural sector. For the Hungarian economy, 2025 has turned out to be massively disappointing: last December, the central bank had predicted growth of 2.6–3.6%; Prime Minister Viktor Orbán had bragged that the economy would get off to a “flying start.”

However, the central bank believes the economy could grow by 2.8% in 2026 and 3.2% in 2027, Varga says.

The MNB expects the economic recovery to begin in the last months of this year. Growth in 2025 was hampered by a decline in corporate investments and a weak external economy, with household consumption alone keeping the economy afloat.

A turnaround is expected from 2026: alongside continued support from household consumption, investments may finally increase, and the external economy will also become more supportive, the central bank says.

The MNB has also slightly modified its inflation forecast, lowering this year’s projection by 0.1 of a percentage point and increasing the 2026 figure by

0.2 pp.

Varga attributed the reduction for 2025to the inflation-reducing effects of the strengthening forint and the price margin caps.

He justified the increase in next year’s inflation forecast by the removal of those same stops, as this will lead to higher consumer prices in 2026. The central bank expects inflation to fall below 4% in the first months of next year, but achieving the 3% inflation target, which is at the midpoint of the tolerance band, will likely only be reached in the first half of 2027.

As a result, inflation may be 4.6% this year, decrease to 3.8% next year, and in 2027, hover around 3%. Varga pointed out that although inflation was 4.3% in August, the government-mandated price caps had reduced the actual rate by 1-1.5%.

Ukraine

Hungary and Ukraine Trade Accusations Over Alleged Drone Incursion Roundup Crisis

Ukrainian President Volodymyr Zelensky accused Hungary of flying reconnaissance drones within Ukraine’s airspace without the country’s permission, an allegation the Hungarian government has categorically denied, both diplomatically and through the use of less diplomatic terms.

“The commander in chief reported on recent drone incidents along the Ukrainian-Hungarian border,” Ukrainian President Volodymyr Zelenskyy said in a statement published on Facebook on Sep. 26 after a government meeting. “Ukrainian forces recorded violations of our airspace by reconnaissance drones, which are likely Hungarian,” it continued. “Preliminary assessments suggest they may have been conducting reconnaissance on the industrial potential of Ukraine’s border areas.”

Earlier this year, Ukraine’s Security Services (SBU) had detained two suspected agents of a Hungarian military intelligence network, whom it believes were tasked with gathering intelligence about the Transcarpathia region, which borders Hungary and contains a sizable Hungarian minority. The intelligence allegedly included information about the area’s ground

Land and air operations were simulated on the visitor day of the Adaptive Hussars 2025 national defense exercise at the Hungarian Armed Forces Central Training and Firing Range in the Hajmáskér area on Sep. 25, 2025. While the armed forces say they have kept their Ukrainian peers informed during the exercises, they denied flying surveillance drones over Ukraine.

and air defenses, and “to study the socio-political views of [the] local population, including scenarios of their behavior if Hungarian troops enter the region.”

“I instructed that all available information be verified and that urgent reports be made on each recorded incident,” Zelenskyy concluded in his statement, providing no further details. Hungary’s Ministry of Defense responded to Zelensky’s allegation later that day, insisting that Hungarian military drones had not violated Ukrainian airspace.

“The Hungarian Armed Forces did not carry out and did not receive instructions to carry out

Szijjártó Attacks Draft EU Budget

The upcoming seven-year budget of the European Union is “primarily about maintaining the Ukrainian military and state rather than focusing on the challenges of the European Union,” Minister of Foreign Affairs and Trade Péter Szijjártó claimed in Budapest on Oct. 1, ahead of an informal EU summit in Copenhagen. According to state news agency MTI, Szijjártó alleged that “the EU’s security and economy have significantly deteriorated due to

bad decisions in Brussels. Brussels is preparing for war, and they are trying to make Europeans, Hungarians among them, pay for it. [...] This budget is practically a Ukraine budget,” his ministry quoted him as saying. He argued that the priorities for the European Union should be resolving its ailing competitiveness, creating energy security and laying the foundations for European economic growth.

the alleged drone flight on the Hungarian-Ukrainian border, which has also been reported in the press,” the ministry said.

The ministry noted that Hungary had reinforced the protection of its eastern airspace months ago.

The ongoing Adaptive Hussars 2025 national defense exercise, held in cooperation with NATO and scheduled to run through mid-October, has included regular updates for the Ukrainian side. However, the ministry said that no information about any incursion into its airspace had been received from Ukrainian authorities.

In addition to the Ministry of Defense, the Hungarian Armed Forces

“Instead [...] the European Commission wants to send Europeans’ money, Hungarians’ among it, to Ukraine, to spend on the Ukrainian state and military,” he said. “We want peace in Europe, while Brussels wants war. Unless there is a patriotic turnaround, we can count on pro-war, pro-migration and pro-gender policies from Brussels. We don’t want war, migration or gender madness, and we don’t want Hungarians’ money to be sent to Ukraine,” he added.

also issued its own separate statement, posted on the honvedelem.hu website, denying any violation of Ukraine’s airspace. According to the statement, the armed forces, the Ministry of the Interior and Ukrainian authorities are in close contact via a 24-hour hotline, and any border flights are mutually communicated in advance.

“A border flight cannot take place without notification,” the statement said. It also criticized images shared by the Ukrainian General Staff on social media, saying they lacked key data such as flight path, speed and altitude. The defense staff released two of their own maps showing the alleged incursion route between Tiszaszentmárton (300 km northeast of Budapest) and Solovka (in Ukraine), and confirmed that neither the Ministry of Defense nor the Hungarian Armed Forces had conducted any aerial activity in the areas referenced on Sep. 26.

While Hungary’s Ministry of Defense and Armed Forces responded with civility, matter-of-factly rejecting the allegation by offering reasons and proof, the country’s top diplomat, Minister of Foreign Affairs and Trade Péter Szijjártó, reacted somewhat less tactfully, and certainly less diplomatically.

“President Zelenskyy is losing his mind to his anti-Hungarian obsession,” Szijjártó said in a post on X. “He’s now starting to see things that aren’t there.”

Panattoni Undertakes Latest Project in Mosonmagyaróvár

Panattoni Hungary is launching its latest development in Mosonmagyaróvár (162 km northeast of Budapest by road, close to the borders with Austria and Slovakia), with the construction of a 27,000 sqm logistics center of which almost 70% has been pre-leased.

As one of Hungary’s first projects to feature an electric truck parking and charging station, the development is set to become a key sustainability benchmark for the sector, according to Panattoni. The first tenant, Fiege, has signed for 18,000 sqm with

BYD Bus and Truck Moves into CTPark Komárom

BYD Electric Bus & Truck Hungary has taken possession of a new 5,000 sqm industrial hall at CTPark Komárom. BYD’s Hungarian subsidiary carries out activities related to commercial green vehicles in the city (93 km northwest of Budapest by road), and required a hall with specialized industrial infrastructure, according to CTP.

“The newly constructed building was specifically designed for high-tech operations that align perfectly with BYD’s objectives. The hall features, among other things, large drive-in gates, additional electrical capacity, and an advanced power network, all essential for ensuring the smooth and efficient running of daily operations,” says CTP of the transaction.

It notes that CTP’s one-stopshop implementation model greatly facilitated the project, from planning and construction to licensing, as processes were coordinated by the developer, saving the client not only time but also considerable administrative burden.

CTP is targeting a BREEAM “Excellent” certification for the facility, which is expected to be completed in the fourth quarter of 2025.

Real Estate Matters

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

the completed handover scheduled for the second quarter of 2026.

“For Fiege, expanding in strategically located, modern and sustainable logistics centers is critical to meeting our clients’ needs and advancing our own sustainability objectives,” comments Gergely Hepp, managing director for the SEE region at Fiege Group.

“Panattoni Park Moson is a perfect fit for these ambitions, and we look forward to strengthening our presence in Hungary and Central Europe once the development is delivered,” he adds.

“With this speculative development, Panattoni is […] further expanding its Hungarian portfolio. The 27,000 sqm facility and its strong pre-lease uptake demonstrate the continued robust demand for premium logistics space in the Hungarian market,” adds László Kemenes, managing director of Panattoni Hungary.

Electric Truck 1st

Panattoni says it is targeting a BREEAM “Excellent” certification for the facility. “Reinforcing this approach, the development will also include one of Hungary’s first electric truck

parking areas, co-funded by the EU. The facility will contribute to the long-term development of e-mobility infrastructure and help reduce the carbon footprint of the logistics sector,” the developer says.

Valued at approximately HUF 10 billion, the investment has been undertaken by the Recorde Panattoni RPM Real Estate Fund, managed by Recorde Fund Management, a subsidiary of the Concorde Group.

“This project is a perfect fit with Recorde’s investment strategy. We provide reliable, transparent and commercially outstanding opportunities for the most reputable developers to attract institutional and private-banking co-investors for their best risk-return projects,” says Gábor Kutas, founder and CEO of Recorde Fund Management. “We are proud to have supported the realization of this outstanding development with a tailor-made, standalone investment fund structure.”

The new park is Panattoni Hungary’s fifth development in the country, underscoring the company’s longterm growth ambitions across the Central and Eastern European region, according to the industrial developer.

HelloParks Celebrates Fifth Anniversary

HelloParks, the industrial and logistics member of the Futureal Group, is celebrating its fifth anniversary and will complete the development of more than 500,000 sqm of warehouse space in the Budapest metropolitan area this year.

“The founders recognized the opportunity in the growing demand for modern and green industrial facilities during the pandemic and supply chain crisis, and the company now competes with the world’s largest warehouse developers in the domestic market,” the firm says of its journey to date. “When HelloParks was founded in 2020, the pandemic and subsequent supply chain disruptions presented significant challenges to industrial property developers. Storage methods evolved, and demand shifted toward modern industrial facilities. Tenants sought environmentally friendly, highefficiency warehouse buildings,” it adds.

Warehouse development is continuing apace in 2025 as the FT3 buildings in Budapest North (in Fót, 20 km north of central Budapest) and PT5 in Budapest West (Páty, 22 km west of the capital by road) are expected to be completed this year, marking a significant milestone for the company, which will have developed more than half a million sqm of logistics and industrial space in five years. HelloParks says it is meeting

CBRE Celebrates 1st Anniversary of Chinese Client Advisory Desk

CBRE Hungary is celebrating the first anniversary of its Chinese Client Advisory Desk, a dedicated service established to support Chinese companies investing in or expanding their operations in Hungary.

Over the past year, the desk has worked as an advisor by bridging cultural and business practices, providing tailored commercial real estate solutions, and facilitating long-term partnerships, according to the consultancy.

Since its launch, the service has received around 50 client requests, including several from outside Hungary, spanning a broad range of sectors such as industrial, office, retail, and investment projects.

The strongest demand has come from companies in the electric vehicle supply chain, with a clear focus on industrial leasing opportunities. Geographically, investors have been most active in the Greater Budapest area, as well as regional hubs such as Szeged and Debrecen. In its first 12 months, the office has successfully facilitated the sale of an office building in Budapest, supported BYD with a property cooperation agreement and subsequent property management services, and advised on industrial leasing transactions.

“The Chinese Client Advisory Desk has achieved strong results, generating highquality business leads and strengthening CBRE’s client base. Hungary’s role as a gateway for Chinese investment into Europe is becoming increasingly important, and CBRE is committed to supporting this growth with worldclass advisory and integrated services,” comments Tim O’Sullivan, head of investment properties at CBRE Hungary.

the requirements for climate neutrality, having developed a detailed climate neutrality roadmap up to 2035. This year, the company switched to 100% green energy use across its entire warehouse portfolio and has set a net-zero emissions target for its new buildings by 2028 in terms of operational carbon, according to CEO Rudolf Nemes. The company has introduced plastic fiber industrial flooring, reduced-carbonfootprint concrete structures, and the use of reinforced steel from 100% recycled sources.

BBJ Launches Text-to-speech Innovation

Well into our 33rd year of print existence, the Budapest Business Journal is pleased to announce a new milestone. For the first time, we are offering visitors to our website the opportunity to listen to our stories, as well as read them.

The “Listen Now” function will be available on an ever-expanding library of stories on budapestbusinessjournal.com from Oct. 1. For now, look for the logo on the photo on the home page. Follow that link, and a text-tospeech audio player will be clearly visible beneath the intro to the article itself. Simply click on the “play”

in Brief News

Nagy: 13% Minimum Wage Hike in 2026 Unlikely,

2-digit

Rise Possible

There is “little chance” the minimum wage will be raised by 13% in 2026, as previously agreed by unions, employers and the government, Minister for National Economy Márton Nagy said at a conference organized by the Joint Venture Association (JVSz) on Sep. 29. According to a statement issued on the ministry’s website, a doubledigit increase remains possible, however. Nagy said he expects unions to push for a 12-13% hike, while employers are likely to support a 9-10% increase, with the state stepping in to help bridge the gap. He noted that the government had reduced the payroll tax from 28% to 13% over the past 15 years, and that employers are now calling for a further reduction to 12%, which would result in HUF 200 billion in lost budget revenue.

Trade Surplus Hits

EUR 557 mln in August on Weaker Imports

Hungary posted a EUR 557 million trade surplus in August, according to data released on Sep. 30 by the Central

symbol, and the piece will be read to you, courtesy of the marvels of AI.

“We are very proud of our ongoing 33-year tradition of print media, but that does not make us dinosaurs; innovation has always been a vital element of what we do,” says Robin Marshall, editor-in-chief of the  BBJ

Statistical Office (KSH). Exports fell by 5.3% year-on-year to EUR 10.193 billion, while imports dropped 8% to EUR 9.636 bln. Trade with other European Union member states accounted for 74% of exports and 71% of imports during the month. Exports to countries outside the EU declined by 4.7%, and imports from those markets fell 1.5%, KSH noted. The country’s terms of trade improved 3.2% during the period, as the forint weakened by 0.4% against the euro but gained 5% versus the dollar. From January to August, the trade surplus reached EUR 7.112 bln, with exports rising 1.2% to EUR 97.266 bln and imports inching up 0.2% to EUR 90.154 bln.

EBRD Cuts 2025, 2026 GDP Forecasts for Hungary

Hungary’s GDP is projected to grow by 0.5% in 2025 and 2% in 2026, according to the latest Regional Economic Prospects report released on Sep. 25 by the European Bank for Reconstruction and Development (EBRD). The development bank revised its forecasts downward by one percentage point and 0.7 of a percentage point, respectively, compared to its previous report published in May. According to the EBRD, GDP remained broadly stagnant in the first half of 2025, as gains in household consumption were offset by a weak performance in industry and agriculture, while low net exports

“The means by which our audience consumes the content we produce has broadened almost immeasurably since we launched in 1992. To remain relevant, we must provide viewers a genuinely multi-platform approach,” Marshall says.

“We have produced podcasts and videocasts of specific events for several years. There is a digital version of our

continued to dampen overall growth. It added that trade tensions are weighing on the automobile and battery industries. Growth is forecast to accelerate in 2026, supported by a gradual recovery in consumption and private investment. However, risks linked to subdued external demand, trade disruptions and “challenges in the relationship with the EU,” remain tilted to the downside. The EBRD highlighted faster-than-expected capacity expansion in the auto and battery sectors as potential upside. Public finances “remain strained,” the EBRD said, projecting that the budget deficit will remain above 4% of GDP in 2025.

PPI up 2.3% Year-on-year

Factory gate prices in Hungary rose 2.3% year-on-year in August, according to data released on Sep. 30 by the Central Statistical Office (KSH). Prices for domestic sales increased by 0.9%, while export prices were up 3%. Domestic manufacturing prices, which carry a 62.7% weight in the Producer Price Index, rose 1.9% y.o.y., while domestic energy prices, accounting for 35.4% of PPI, slipped 1.1%. Export prices in the manufacturing sector, with a 91.8% PPI weight, rose 2.4%. On a monthly basis, factory gate prices dipped by 0.8% as domestic prices rose 0.5% and export prices fell 1%. Between January and August, PPI reached 6.4%, driven by a 3.7% increase in domestic prices and a 7.7% rise in export prices.

iconic Book of Lists. Now, we offer our online readers the chance to listen to any story,” he explained.

“We are excited to see how our readers embrace this new option, and we are equally excited by several other innovative developments we have in the pipeline,” he adds. “Please excuse the cliché (and the tease), but watch this space...”

August Jobless Rate at 4.4% as Employment Declines Y.O.Y.

Hungary’s unemployment rate for those aged 15-74 stood at 4.4% in August, with 215,000 people out of work, according to data released on Sep. 25 by the Central Statistical Office (KSH). The total number of employed individuals was 4.676 million. Over the June-August period, average employment reached 4.679 million, down by 36,000 compared to the same period last year. Employment on the primary labor market fell by 50,000 year-on-year to 4.503 million. Meanwhile, 105,000 Hungarians were working abroad, and 72,000 were employed through fostered (public) work programs. The employment rate among those aged 15-64 was 75.4%. Data from the National Employment Service shows that the number of registered jobseekers at the end of August stood at 222,000, a 1% decrease from a year earlier.

9,000 Hectares of Farmland to be Auctioned in November

The Ministry of Agriculture has announced auctions for nearly 9,000 hectares of farmland, according to a statement issued on Sep. 29. The auctions will be held between Nov. 3 and Nov. 14, with all the parcels on offer exceeding 10 hectares in size.

2 Business Study Finds Hungarians Place Hopes in Smart Cities and Personalized Medicine

Hungarians largely expect improvements in their quality of life to come from innovation, with significant progress anticipated in areas such as sustainable energy, climate protection, mobility, healthcare, and biotechnology, according to recent research.

A joint study by Bosch Hungary and Richter Gedeon Nyrt., presented at the BoschxRichter Innovators’ Day on Sep. 23 at the Bosch Budapest Innovation Campus, explored which trends the public sees as the most promising for the coming decade.

According to the survey, respondents view the automotive industry as the most innovative sector in mobility. Many believe that a transition to electromobility in Europe is realistic within a decade. Looking further ahead, 10 to 15 years from now, many expect the arrival of smart cities, the renaissance of public transportation, and the widespread adoption of hydrogenpowered buses and trains.

In the pharmaceutical industry, the public expects innovation to deliver breakthroughs in treating currently incurable diseases, reducing side effects, and combating resistant illnesses. Among the most promising trends identified were new mechanisms of action, personalized medicines, gene editing, and 3D-printed organs.

“The results of the study also confirm that there is particularly strong social demand for innovations in the automotive industry. Developments in transportation are key for the future,

whether in manufacturing, public transit, or the smart cities of tomorrow,” said István Szászi, head of Bosch in Hungary and the Adriatic region.

For Gábor Orbán, CEO of Richter Gedeon Nyrt., the findings underscore how strongly people connect innovation to everyday needs.

“For the public, innovation is not an abstract concept but a direct expectation, particularly when it comes to incurable diseases or the side effects of treatments,” he emphasized.

The Age Divide

Hungarian society remains somewhat divided in its approach to technology. While 51% of respondents said they feel close to new developments, 48% take a more cautious view. Differences are significant across age groups: 64% of 16–29-year-olds are open to innovation, compared with just 39% among those over 60. Educational background and income levels also influenced attitudes.

The research revealed that while Hungarians recognize the potential of cutting-edge fields such as artificial intelligence (59%), defense and security (58%), and industrial automation (53%), they want to see significant progress in areas that directly affect their daily lives.

Public Transport Renaissance

Around a quarter (23–26%) expect Europe to transition significantly to electromobility, phasing out internal combustion engines from both cars and public transport. At the same time, electric scooters and e-bikes could become a regular feature in nearly every household. Public transport could experience a renaissance, becoming more sustainable and comfortable, persuading more people to use it instead of private cars.

Hydrogen-powered buses and trains are seen as attractive, with 60% of respondents saying they would regularly use them in the future. However, enthusiasm is more limited for futuristic options such as flying taxis or vehicles controlled by voice or brain signals: 40% of respondents rejected these ideas, and one-third said they would not use self-driving robotaxis, despite their introduction in other countries.

Pharmaceutical innovation is considered just as vital as mobility. More than half of respondents (51%) stressed improved quality of life as their top expectation, while 37% pointed to efficiency and 34% to safety. The majority also expect innovation to address incurable diseases (60%), reduce drug side effects (51%), and respond to the rise of resistant illnesses (49%).

More than three-quarters of respondents prioritized sustainable energy (81%), climate protection (80%), and healthcare and biotechnology (77%) as areas where innovation is most needed.

Such developments could provide solutions to challenges including energy security and storage, the adoption of new energy sources, biodiversity preservation, reduced carbon emissions, and addressing water scarcity.

When asked about mobility, nearly half of the respondents (48%) identified the automotive industry as the most innovative sector, and

40%

also considered it the most useful. Urban micromobility (32%), logistics (32%), and public transport (31%) were also highlighted as key areas where innovation can bring substantial improvements.

Nearly one-third of Hungarians believe that urban infrastructure will become smarter, featuring real-time traffic monitoring and management, optimized traffic signals, intelligent roads, and parking systems that can “see” available spaces within the next 10–15 years.

Interestingly, the survey revealed skepticism toward the mRNA-based technologies featured in our last issue (see “Karikó and the new Frontier of mRNA: Personalized Cancer Vaccines”): while 29% viewed them as rapidly developing, only 17% regarded them as useful. The relatively low trust levels are likely linked to the debates and controversies around the COVID-19 pandemic. In contrast, the public identified personalized medicine (32%), new therapeutic mechanisms (26%), and gene editing (24%) as the most promising trends in pharmaceutical development.

“The work we do at Richter Gedeon aims to turn scientific results into therapies that truly respond to patient needs. Innovation in pharmaceuticals is about improving lives, ensuring safety, and addressing the most pressing healthcare challenges,” Orbán said.

This was the third BoschxRichter Innovators’ Day, organized jointly by Bosch Hungary and Richter Gedeon, two of Hungary’s most innovative companies. The conference highlights global R&D trends while paying tribute to founders Robert Bosch and Gedeon Richter. The results of the study “Innovation Top List: These are the Innovations Hungarians Believe In” were unveiled as part of the event. The survey was conducted by Europion Research on behalf of the two firms from May 16 to 19, using a mobile and web-based questionnaire. The representative sample of 1,072 Hungarian residents aged 16 and over was weighted by age, gender, education, settlement type, and region.

Equilor: 2025 Another Year of Global Economic Uncertainty

This year may prove to be another turbulent one for the global economy, with trade policy under U.S. President Donald Trump at the center of international uncertainty. This was one of the core messages at Equilor Investment Ltd.’s annual outlook event, where the firm, celebrating its 35th anniversary, presented its forecasts for Hungary, the Eurozone, and global markets.

The United States economy expanded robustly in 2024, with inflation brought down successfully. However, Equilor underlined that upward risks remain.

“The greatest uncertainty comes from Trump’s trade policy, because it has the potential to affect both growth and inflation,” said Muhi.

According to Equilor, Hungary could see growth return in the second half of this year, supported by rising domestic consumption and the long-awaited start of production at three major industrial projects: BYD, BMW, and CATL.

The company projects GDP growth of 2.2% for 2025 and 3.4% in 2026. (Both are above the projections in the latest Regional Economic Prospects report released on Sep. 25 by the European Bank for Reconstruction and Development, which put the figures at 0.5% and 2%, respectively.)

Inflation, however, remains a concern, with the forint’s recent weakening adding pressure. The currency could depreciate further, reaching HUF 420 per euro by the end of the year, Equilor warns.

“Donald Trump’s election has brought a less predictable course to American economic policy,” said Gergely Muhi, Equilor’s chief analyst. He emphasized that, if all the president’s campaign promises were implemented, they could have profound negative implications for the U.S. and global economies. “Of course, it cannot be ruled out that some of these pledges will be diluted before approval, or may never be implemented at all,” he added.

While the U.S. economy shows resilience, Equilor’s outlook for other regions is far less optimistic. Growth in Europe is expected to remain weak, while China’s efforts to stimulate activity may fall short of delivering substantial results. In the Eurozone, concerns about inflation have given way to anxieties over stagnation. Inflation has been contained within a 2–2.5% range, but growth remains subdued.

“The German economy, which represents nearly 30% of the Eurozone, is still struggling,” said Muhi. “High energy prices and weakening demand continue to weigh on the industrial sector.” As a result, Germany is projected to grow by just 1.1% in 2025 after posting 0.7% in 2024.

The European Central Bank is cutting interest rates faster than anticipated, but long-term U.S. rates are likely to remain higher than expected. This divergence leaves emerging-market central banks with limited room to maneuver.

The Hungarian Picture

Turning to Hungary, Equilor expects household consumption to strengthen this year, bolstered by real wage growth and a gradual decline in precautionary savings. Additional stimulus could come from capital leaving the government bond market, which may feed into higher consumption.

“The launch of production at BYD, BMW, and CATL in the second half will give an extra boost to growth,” said Muhi. He cautioned, however, that the actual impact on GDP would depend

heavily on global automotive demand. Equilor estimates that the three plants could lift GDP by 0.6 percentage points this year, 0.8 points in 2026, and contribute up to 2% by 2030.

The agricultural sector is also expected to play a stronger role, due to favorable base effects. (When the summer harvest was completed at the end of August, both crop yields per hectare and the total amount harvested had exceeded expectations, Minister of Agriculture István Nagy was quoted as saying. Crop yields of all summer cereals as well as rapeseed exceeded the five-year averages, the minister said.) Still, Hungary’s most important export market, the German industrial sector, shows no sign of meaningful recovery.

On monetary policy, Equilor expects the Hungarian National Bank (MNB) tocut rates by a total of 50 basis points this year, with the next reduction likely in the third quarter, depending on developments in inflation and the exchange rate.

“We expect the pace of cuts to accelerate in 2026,” said Zoltán Varga, senior analyst at Equilor.

The recent weakening of the forint is complicating the inflation picture. Last year’s average exchange rate was HUF 395.4 per euro, but the currency has since depreciated by nearly 5%.

“Around a quarter of the weakening feeds directly into consumer prices,” Varga explained. “If the forint remains at its current level, inflation could increase by more than one percentage point.” He expects the euro to close the year at around HUF 420, with an average inflation rate of 4% in 2025, easing to 3.5% in 2026.

Hungary is likely to avoid a recession, but the recovery remains sluggish, supported primarily by household consumption.

Investment activity remains muted, although wage growth and government programs offer some support.

Higher Risks

For investors, the environment is far from easy. The risks are higher than in previous years, and the recent rally leaves less room for significant gains. Still, Muhi remains cautiously optimistic. “Despite the uncertainties, there are still opportunities to achieve good returns,” he said. “If we look at short-term impacts, the U.S. market is positioned to perform best.” Protectionist tariffs may temporarily benefit U.S. industry, while stable growth and productivity improvements from artificial intelligence adoption are boosting corporate profitability. However, Muhi warned against over-optimism.

“The major indices already reflect a very positive outlook, so we do not expect a substantial further rally.” Instead, investors should anticipate single-digit increases, in line with corporate earnings growth.

Equilor recommends that investors increase the share of low-risk assets in their portfolios to maintain flexibility.

Hungarian retail bonds such as PMÁP are expected to become less attractive after upcoming coupon resets, while alternatives like FixMÁP or potential new issuances may be more appealing.

Short-term U.S. government bonds could also offer favorable returns, supported by a strong dollar. Equilor also sees investment potential in Poland, particularly in retail companies hit hard by declining consumption but likely to recover as demand rebounds.

“It is worth considering shares of Central Europe’s leading discount retailer Pepco, as well as Jeronimo Martins, operator of the Biedronka supermarket chain,” Muhi suggested. Among Hungarian equities, the firm highlights Gránit Bank, with a 12-month target price of HUF 18,306, and Magyar Telekom, with a target of HUF 1,550. It should be noted, if only in passing, that Gránit Bank acquired a 50% plus 1 vote stake in Equilor Befektetés Zrt. in 2022.

11th Annual Brain Bar Festival Still Has ‘Faith in the Future’

The last quarter of a century has brought unprecedented changes across nearly all aspects of life, whether social, economic, or political. Guest speakers at the 2025 Brain Bar festival reflected on what those developments may portend for the next 25 years.

This year, the House of Music Hungary hosted the 11th annual Brain Bar festival, Europe’s “largest future festival,” welcoming experts, innovators and politicians, amongst others, from all around the world to debate “the most important issues of the 21st century.”

The focus of this year’s Brain Bar was there in the title: “The Next 25 Years,” with the tagline, “We still have faith in the future.” The theme explored a broad range of pressing issues relevant to today’s world, ranging from topics such as climate catastrophes, pandemics and relationships in the age of social media to the rise of cryptocurrency and artificial intelligence.

Guest speakers also facilitated discussions on geopolitical conflicts, modern economics, cultural shifts, and entrepreneurial best practices, among others. Bianca Scheffler, area manager for the KPMG AI Center of Excellence at KPMG Switzerland, led an interactive discussion on the emergence of artificial intelligence.

With more than 18 years of professional experience in technology, data strategies and AI, Scheffler is passionate about leveraging her background to educate others on digital skills.

During a 25-minute “Smash That Myth” discussion, titled “Optimism vs. Anxiety” and hosted by social anthropologist Calum Nicholson (the British-Canadian director of research at the Danube Institute, formerly director of the Climate Policy Institute), Scheffler shared her thoughts on three frequently

noted misconceptions regarding the emergence and everyday use of artificial intelligence.

In the first round, Scheffler talked about the dangers of assuming that AI models are objective. She noted that since large language models are trained on human-made datasets, it is inevitable that human biases are embedded within them. This may result in skewed data generation, and Scheffler warned users not to rely on any artificial intelligence model as an entirely objective tool.

More Than Tech

Scheffler then defended the notion that AI is not necessarily “just a tech issue.” She explained that, as “AI is appearing to be more social,” comparing it to “an advisor,” users need to learn how to differentiate human authenticity from artificial intelligence.

Since studies show that a large percentage of users now view their preferred AI models as a “friend” in addition to using them as an efficient tool, AI is not only dominating the tech industry but also the lives of millions of casual consumers.

Scheffler advised that since AI is “changing the way we gather and synthesize information,” users “should not underestimate [its] impact.”

To conclude the debate, Scheffler argued that AI should not be banned from schools, saying that it is essential for kids and students to

interact with AI during their schoolage years. She said that using AI is an ability that needs to be taught, and banning it from academic use does not benefit the students.

“If AI is banned from schools, then no one would have the skills to use it positively,” she remarked.

Myth or Reality

At the end of each discussion round, the audience was urged to interact with the speakers to help decide whether the statement about AI was myth or reality.

The festival drew in visitors of all backgrounds, including young students, professionals and international visitors. Brain Bar reported that there were “over 8,500 confirmed registrations” for the two-day event, with more than “150 full high school classes and thousands of university students” in attendance.

With its diverse lineup of topics, Brain Bar offered something for everyone, allowing participants to explore various areas they were passionate about. A couple of visitors commented that they were “excited to attend the festival to gain new perspectives” through the interactive roundtables, while others were keen to take part in the open-debate town halls and group discussions. Many festivalgoers also sought out the smaller “Speaker Speed

Date” and “Change My Mind” stations scattered around the festival, where anyone could sit down with the event’s experts and guest speakers for a quick discussion in their field.

To conclude the debate, Scheffler argued that AI should not be banned from schools, saying that it is essential for kids and students to interact with AI during their school-age years. She said that using AI is an ability that needs to be taught, and banning it from academic use does not benefit the students.

Alongside the continuous lineup of programs, the festival also provided space for guests to unwind and pass the time between programs. Lounge chairs and pingpong tables were set up between the kiosks, while a variety of food trucks and drink carts lined the walkway leading to the main stages.

News Company

MNB Approves 4iG Takeover bid for Rába Worth HUF 25 bln

The National Bank of Hungary (MNB) has approved a takeover offer by a 4iG Group member firm of automotive company Rába, 4iG announced in a release published on the Budapest Stock Exchange website on Sep. 24. The group will offer HUF 1,789 per share for Rába’s outstanding stock between Sep. 26 and Oct. 31. In a separate statement, Rába’s board of directors acknowledged the 4iG’s financial strength, stability and potential synergies, but after outlining the offer’s pros and cons, said it would not recommend the bid to shareholders. Some two weeks earlier, 4iG Group revealed that it had reached agreements to acquire a controlling interest in Rába via 4iG SDT EGY, a project company owned by group member 4iG Space and Defense Technologies, and to form a strategic partnership with CSG Defense, which could give the Czech company a minority stake in Rába. 4iG estimated the transaction’s

value at nearly HUF 25 billion, to be financed through a combination of internal funds and credit.

4iG Completes Telecoms Merger into One Hungary

Listed ICT firm 4iG will complete the legal merger of its telecom subsidiaries, Digi, Antenna Hungária, and Invitech, into One Hungary as of Oct. 1, the company said in an announcement published on the website of the Budapest Stock Exchange. The unified entity will serve more than three million mobile subscribers and nearly as many internet and TV customers. The headcount at One Hungary is expected to grow by more than 1,000. Since January, the group’s members have been operating under the One brand. Retail and small business services will continue under the One name, while integrated telecom and ICT solutions for medium and large enterprises will be offered through One Solutions. Broadcasting services will be handled by One Broadcast.

Lego Opens HUF 54 bln Expansion in Nyíregyháza

Danish toy manufacturer Lego inaugurated a HUF 54 billion expansion at its manufacturing base in Nyíregyháza (245 km northeast of Budapest by road) on Sep. 30, according to a post on the Facebook page of Minister of Foreign Affairs and Trade Péter Szijjártó. The investment, supported by a HUF 4.3 bln government grant, expanded production and packaging capacity and created

300 jobs. The Nyíregyháza plant is now Lego’s second-largest globally and the only one in Europe that handles all production processes, Szijjártó said. He noted that the site’s production capacity has risen by 30%, revenue exceeded HUF 100 bln last year, and headcount is set to reach 5,000 in 2025. The number of solar panels supporting operations is expected to rise to 35,000 from 24,000.

From left, Győző Vinnai, Fidesz MP for the region, Minister of Foreign Affairs and Trade Péter Szijjártó, Niels B. Christiansen, CEO of the Lego Group, and Chresten Bruun, factory director and vice president of the Lego Group, symbolically launch production at the handover of the company’s expanded factory unit in Nyíregyháza on Sep. 30, 2025.

Genesys to Invest HUF 20 bln in AI Research Center in Budapest

U.S. software company Genesys will make a HUF 20 billion investment in Budapest, creating 250 jobs for highly skilled professionals focused on researching the role of artificial intelligence in cloud-based IT services, Minister of Foreign Affairs and Trade Péter Szijjártó announced in New York on Sep. 23.

Bunge to Spend USD 50 mln on Biomass Boiler in Martfű

Agribusiness Bunge is investing more than USD 50 million in its oilseed processing facility in Martfű (130 km southeast of Budapest by road), according to a press release. As part of the project, Bunge will install a biomassfueled steam boiler, which is expected to become fully operational by early 2028.

Vulcan Shield Global to Build HUF 280 bln Békéscsaba Factory

Singapore-based Vulcan Shield Global, a producer of heat insulation materials, will construct a HUF 280 billion factory in Békéscsaba (200 km southeast of

Budapest by road), according to a press release. The greenfield investment, supported by a HUF 49 bln government grant, will create 2,500 jobs. The factory is slated for full completion in 2033, with the first two units scheduled to be finished by 2029, employing 1,200 people. At full capacity, the 140,000 sqm facility will produce 10,000 tonnes of material annually. The plant will serve as the company’s first European base.

Aero Space Power to Invest

HUF 2 bln at Kisvárda

Hungarian maintenance, repair and overhaul company Aero Space Power will invest more than HUF 2 billion at its base in Kisvárda (285 km northeast of Budapest by road), according to Minister of Foreign Affairs and Trade Péter Szijjártó. In a statement from his ministry, Szijjártó said that the state will support the project, which will increase headcount in Kisvárda to more than 200, with HUF 500 million. He highlighted that Aero Space Power holds certifications from the aviation authorities of China, the United States, and Europe. "One is sure to find turbine components that have been overhauled in Kisvárda in a significant share of the aircraft flying in the world today," he added.

ING Bank Hungary

Names Head of HR

Zsófia Németh has been appointed as the new head of human resources at ING Bank in Hungary, effective Sep. 15, the company tells the  Budapest Business Journal

With more than 15 years of experience in HR and organizational development, Németh brings a strong track record of leading transformational change across finance, biotechnology, FMCG, and data science sectors. She joined ING from Daalab, a rapidly growing data science startup, where she served as chief people officer and built the company’s HR strategy to support its scaling up.

Prior to that, she led the people and culture function at Roche Hungary, where she was instrumental in developing agile transformation, inclusive leadership development, and data-driven employee experience initiatives.

Her earlier career includes an HR manager role at Budapest Bank (GE Capital Hungary), where she oversaw strategic HR planning, talent management, and succession planning for nearly 400 employees.

Németh holds a degree in organization development and international relations from Corvinus University of Budapest

and studied applied psychology at London Metropolitan University. She is also a certified business coach and serves as an active ambassador of BAGázs, an NGO dedicated to Roma inclusion.

“We are delighted to welcome Zsófia to ING. Her deep expertise in organizational development and her commitment to people-centric transformation make her an excellent fit for our team. Her leadership will be instrumental in shaping a future-ready workplace fully

aligned with our ‘Growing the Difference’ strategy,” said Krisztina Bogdán , country manager of ING in Hungary.

New Group CEO Appointed at MET Group

Swiss-based energy company MET Group, which has Hungarian roots, has announced the appointment of Huibert Vigeveno as the new group chief executive officer, effective Jan. 1, 2026.

Controlling shareholder and current GCEO of MET Group, Benjamin Lakatos, will continue to serve as executive chairman of the board and remains active in guiding the company’s vision and growth.

Vigeveno has extensive experience in leading large, complex, and global organizations, according to MET Group.

Most recently, serving as a member of Shell’s global executive committee and as the group’s director of downstream, renewables and energy solutions, where he drove a customer value proposition across a range of businesses and geographies and led an organization of more than 30,000 people.

Previously, he served as the executive chairman of Shell in China, successfully leading the integration of its USD 53 billion acquisition of the BG Group, subsequently becoming its transition CEO. He recently joined the board of KBR, a global technology and engineering solutions

Andersen Named Hungary Tax Firm and Transfer Pricing Firm of the Year

According to the assessment of International Tax Review (ITR) magazine, Andersen Adótanácsadó Zrt. was the best performing Hungarian tax advisor in 2024, regaining the title of Hungary Tax Firm of the Year after a break of one year. For the first time, the company also won Transfer Pricing Firm of the Year, meaning it scooped two of four titles at the ITR EMEA Tax Awards, the world’s most prestigious professional tax forum, in London on Sep. 18.

company listed on the New York Stock Exchange, as a non-executive director. “Huibert’s exceptional leadership skills, strategic vision, and operational expertise will drive MET’s future aspirations to new heights,” said Lakatos. “I am confident that his appointment will enhance MET’s global position while staying true to our roots as an independent, entrepreneurial company.” MET Group is present in 20 countries through subsidiaries, 32 national gas markets, and 44 international trading hubs. In 2024, its consolidated sales revenue amounted to EUR 17.9 bln, with a total traded volume of natural gas amounting to 140 bcm and total traded electricity of 76 TWh.

“We did not lose our motivation; on the contrary, it drove us to work even more intensively so we could reclaim the world’s most prestigious international tax award,” he said.

Persevere and Mobilize

“We have already proven that we can provide consistently highquality work, as we were found to be the best in three consecutive years. Now, we proved that we can persevere and mobilize new energy in competitive situations, making this recognition possibly even more valuable to us,” Radnai explained.

According to Sándor Hegedüs, director of the transfer pricing service line at Andersen, the award is the result of years of hard work and conscious development.

“Transfer price audits have recently become increasingly expansive and targeted here in Hungary, resulting in strong demand for tax advisory services in the field,” he noted.

Founded in 1989, ITR, one of the world’s leading tax journals, has awarded prizes to Europe’s best tax advisory service companies for the 21st time. A jury of the magazine’s editors and experts ranked the candidates’ performance based on the volume and complexity

of the tasks they had completed during the period, the innovative nature of their implementation, and feedback from clients.

In addition to the overall Tax Firm of the Year award, ITR also performs rankings assessing performance in VAT, transfer pricing, and tax disputes advisory. Like last year, Andersen was shortlisted in all four categories this year in a strong

playing field. The Hungarian business won the Hungary Tax Firm of the Year title in 2021, 2022, and 2023.

According to Károly Radnai, managing partner of Andersen Adótanácsadó Zrt., reclaiming the Hungary Tax Firm of the Year award is the result of genuine teamwork, requiring all colleagues to each make their contributions.

“Expectations are high. Any wrong decisions and shortcomings can lead to serious consequences, meaning the responsibility is also great. That’s why we are especially proud of the fact that ITR recognized our expertise and work based on client feedback,” Hegedüs added.

3 Country Focus

Germany

Subdued Economy Underscores Need for Reliable Partners in Search of Growth

Barbara Zollmann, executive board member of the GermanHungarian Chamber of Industry and Commerce (DUIHK), discusses the impact of German businesses in Hungary, bilateral trade, the switch to value-added investments, and areas for future growth.

BBJ: How would you assess the state of German-Hungarian economic relations?

Barbara Zollmann: Overall, the economic relations between the two countries are stable and of vital importance to the entire Hungarian economy. Despite a notable decrease in Hungarian exports to Germany last year, there has been stabilization in the first half of 2025, with these exports currently accounting for 25% of the total. Regarding new investments, automaker BMW is opening a completely new production site in Debrecen this month, and Mercedes is about to double its production capabilities at its existing site in Kecskemét, both of which are expected to stimulate the Hungarian industrial sector and boost exports further.

However, given the strong interconnection of Hungary’s economy, it is important to note the high degree of dependence on business developments in Germany. Currently, the subdued performance of the German economy is affecting Hungary’s growth potential. It is evident that companies in both countries are facing numerous challenges, and a swift return to strong and stable growth is unlikely. International trade conflicts generate higher costs and uncertainties, significant industries are having to cope with fundamental technological transformations, and, finally, political and geopolitical uncertainties are holding back consumption and investment intentions. In this business environment, it is even more crucial to cooperate with reliable partners and to unlock untapped business potential and growth opportunities.

BBJ: What is the role of DUIHK in the bilateral economic relationship?

BZ: Our chamber is part of German foreign trade promotion and the global German chamber network, whose primary task is to facilitate business connections between German and foreign enterprises, in our case, Hungarian companies. With a membership of approximately 900 companies spanning a wide range of industries, DUIHK is the largest bilateral foreign chamber and business association in Hungary. We advise companies on export or import opportunities, help them find business partners or set up a subsidiary here. For enterprises already present in Hungary, our main membership base, we offer a wide range of support services, new business opportunities, training programs, and multiple platforms for exchanging knowledge and best practices. Last but certainly not least, we represent the interests of German companies in Hungary towards the Hungarian government to ensure a reliable and investment-friendly environment.

Just two weeks ago, we held our annual strategy workshop with the board and the executive staff of the chamber, where we reviewed the current challenges facing investors and defined our focus areas for the medium term. To this end, we examine the factors necessary to strengthen German investment in Hungary. Our core ambition is to provide services and programs that help member companies leverage the chamber’s huge economic power into tangible benefits for their businesses.

BBJ: Recently, the Hungarian media have covered extensive Asian investments, rather than those from Germany or other European countries. Is German investor interest in Hungary dwindling?

BZ: Chinese, Korean and Japanese companies have indeed notably increased their investment activities in recent years, and with exciting greenfield investments. However, even if combined, the share of these three nations in FDI, value added, or employment is still significantly smaller than the base of German investments.

German companies today employ 235,000 Hungarians, and they generate about 11% of the value added in the entire corporate sector. Over the past decade, they have invested EUR 3 billion-4 billion in Hungary every year. This means that many of the major German names are already present in Hungary, and they continue to expand their footprint here. Newcomer companies entering Hungary are often new suppliers or businesses in emerging industries. The interest of German investors in Hungary is ongoing. Historically, German investors have regarded Hungary as a strategic hub of their global business operations, rather than as a quick-win location. They have established deep-rooted networks within their local communities, provide attractive career opportunities and invest tremendously in the training of their employees. This can be experienced every year when we bestow the “Reliable Employer Certificate” on our member companies who qualify for this honor. Additionally, German investors

have established a strong local supplier network in Hungary, helping their partners to develop and grow alongside them. All of the above-mentioned factors must be taken into account when evaluating the impact of investments in Hungary on the country’s GDP and society. In this sense, Germany’s role as the leading investor in Hungary willremain unmatched for a long time.

BBJ: Looking from the other perspective, how important is Hungary for the German economy, and which industrial sectors are of special importance?

BZ: Hungary ranks 13th among Germany’s trade partners; however, it should be noted that Germany is the world’s third-largest trading nation. Hungary’s share in German foreign trade is higher than that of Sweden, Japan or India. However, the real economic significance is considerably higher than the share in trade. Hungary plays a pivotal role in the global value chains of numerous large German corporations. In other words, today, Hungary is much more than an extended workbench of the German industry, It is widely known that the automotive industry is a leading contributor to Germany’s economic activity in Hungary. Based on the capital invested, Hungary is the fifth-largest target country globally for the German car industry. Furthermore, Germany has a strong presence in many other significant sectors in Hungary. These include the machinery sector, the manufacturing of electrical and electronic goods, retail trade and telecommunications.

BBJ: Where do you see further potential for bilateral cooperation in the future?

BZ: An important tendency in all these sectors is that German companies are increasingly shifting their investments to high added-value activities, such as R&D or business services centers, with many of these new projects serving regional or global group members or customers. Bosch’s largest European R&D center outside of Germany is at its Budapest campus, and business software giant SAP runs one of only a few global software labs in Hungary.

In the medium-term, the energy sector offers potential for increased cooperation regarding energy efficiency (where DUIHK itself provides a range of training programs), or with respect to smart grids and storage solutions. There are also promising opportunities in the logistics and defense industries. From the perspective of our member companies, there is also a strong interest in strengthening the vocational training system and in the cooperation between businesses and universities. Finally, supporting Hungarian SMEs and further integrating them into international supply chains is an endeavor that benefits both countries.

German Businesses Champion ‘Steady, Long-term Commitment’ to Hungary

In the run-up to the German Unity Day national holiday, Germany’s Ambassador to Hungary Julia Gross took time out to give the Budapest Business Journal her take on the state of bilateral relations between the two countries and the importance of personal as well as business ties.

of the BMW factory in Debrecen on Sep. 26: a plant that exemplifies the future of the automotive industry and which is fossil-free and climate-neutral. It is truly good news that Hungary and Germany are writing this new chapter together.

BBJ: How would you characterize the German-Hungarian relationship today?

Julia Gross: In these very days, Germans celebrate the miracle of German reunification. In so doing, we must not forget that the gates to reunification were opened in the summer of 1989 by Hungary in Hungary, as President Frank-Walter Steinmeier pointed out in Sopron last year. Germany and Hungary share close economic and cultural ties that have developed over a long period. We stood by Hungary’s side when Hungary worked so hard to prepare for EU membership. But to our greatest regret, the world has certainly not become calmer over the past years. Alongside ongoing conflicts, tensions, and confrontations, what deeply concerns us Europeans is the Russian war of aggression against Ukraine. This brutal conflict underscores more than ever that in a world where the existing legal order is in turmoil, we Europeans must stand united. For in our heart of hearts we know: We will only be heard, in Washington, Delhi or Beijing, if we speak with one voice. The recent negotiations on the new tariffs introduced by the United States were a stark reminder in this regard. Against this dire background, it is a blessing that Hungary and Germany are today closely interconnected multilaterally, especially through the European Union and NATO. These alliances are integral to our prosperity and security. When we do not see eye to eye, we should redouble our efforts to resolve our differences and remember our shared European heritage and common future. It saddens me that Europe is often referred to as being part of the problem, not of the solution.

As Chancellor Friedrich Merz put it, Germany is ready for even closer cooperation, but we are running out of time, and we cannot always wait for everyone.

We will also make greater use of opportunities to move forward with like-minded groups and lead the way in projects and processes that would hopefully be joined by many of our partners, and Hungary has an important role to play.

BBJ: What is Hungary’s role in German Foreign Trade

JG: Germany is and remains Hungary’s most important economic partner, both as a supplier and a customer. In 2023, German exports to Hungary totaled EUR 31.6 billion, while imports from Hungary reached approximately EUR 39.2 billion. This reflects a robust and balanced trade relationship. Over the past three decades, Hungarian exports to Germany have increased tenfold, a remarkable development. Without the European single market, the strong economic development would not have been possible. It will continue to be central to economic growth in and between our two countries, which is why we should appreciate and defend it. Despite modest economic growth in both countries in 2024 and early 2025, the partnership remains solid, with Germany accounting for roughly a quarter of Hungary’s foreign trade in both directions.

Germany wants to take on responsibility and not only strengthen its own competitiveness, but that of the entire EU. This is a big task for the times ahead, and hopefully, all partners will work together on it.

BBJ: Beyond the well-established automotive sector, which other industries have attracted notable German investment in Hungary?

JG: German investment in Hungary is characterized less by singular megaprojects and more by steady, longterm commitment. About 3,000 German companies operate in Hungary, investing two to three billion euros annually in the expansion and modernization of their Hungarian locations. This underlines Hungary’s continued strategic relevance for German business. While the automotive sector remains a cornerstone, German companies across nearly all industries are expanding their activities. Retailers are enhancing their logistics networks, telecommunications providers and companies are investing in infrastructure, and the service sector is growing through business service centers nationwide. New areas of cooperation are also emerging, notably in defense, solar energy, energy efficiency, and, increasingly, in aerospace. German companies not only create jobs and contribute to Hungary’s export performance but also to workforce development and innovation. A great case in point was the opening ceremony

BBJ: How are current economic conditions shaping the outlook for German-Hungarian business relations?

JG: Despite the solid foundation of bilateral economic ties, global uncertainties are affecting business sentiment. DUIHK surveys show that companies are cautious in their employment and investment plans, with optimism and concern currently roughly in balance. Much will depend on how international trade relations evolve, particularly in light of shifting U.S. trade policies.

Germany and Hungary, both highly export-driven economies, share a strong interest in restoring open and fair global trade. Hungary continues to offer key labor market advantages, including a motivated workforce, high-quality vocational training, and a modern legal framework. However, rising labor costs and a shortage of skilled workers continue to be challenges for many companies.

Still, the outlook is positive: The transformation of the automotive sector toward electromobility is expected to generate new growth opportunities. As companies adapt to changing conditions, the German-Hungarian economic partnership is likely to gain new strength and to remain forward-looking. That said, there are sectors of German business in Hungary, particularly in the areas of retail and services, which are not entirely happy with how the legal framework is evolving. It is good that there is a channel with the government to resolve these important issues.

BBJ: How important are cultural exchanges to the relationship, and how much of your time is dedicated to this?

JG: Mutual cultural understanding is highly valued in diplomacy and business alike. It helps form and maintain relationships, especially in challenging times. Therefore, the German Embassy promotes exchanges in education as well as in the fields of music, literature and the arts.

The embassy’s work is closely linked to cultural mediators and institutions, and thus benefits from a constantly growing network of students and artists in both countries, as well as representatives of the German minority in Hungary.

Our main partner for cultural exchange is, of course, the Goethe-Institut Budapest. I am really looking forward to visiting the joint booth of Germany, Austria and Switzerland at the international book festival in Budapest. The fact that former German Chancellor Angela Merkel is presenting her memoir, “Freiheit” (“Freedom”), in Hungary is a highlight. Then there is the upcoming film festival “Sehenswert,” also organized by the Goethe-Institut, beginning on Oct. 9. The festival showcases new film productions from Austria, Switzerland and Germany; the movies will be shown in cinemas in Budapest, Pécs, Debrecen and Szeged. I hope to meet many of your readers at these and other occasions!

Hungary Still has Much to Offer Germany

A significant portion of German investment in Hungary is concentrated in the automotive industry, around which a notable bifurcation of themes has emerged in recent years. One stream involves continued FDI, the most recent example of which was the opening of the BMW plant at Debrecen on Sep. 26. The other strand has been unease about slowing sales globally. But there are signs the pessimism over the latter may be lifting.

sector, I think there are signs of recovery that are emerging, and, ultimately, there will be a significant expansion in EV-related sales. The question is the timing,” he tells the Budapest Business Journal in an exclusive interview.

“July and August of this year actually do show a recovery of the automotive market in Europe, with a growth of 7.4% and 5.3%

respectively in terms of new car registrations,” he says. But what underlies that growth?

automotive show, and governments also have in place incentives for private individuals to purchase cars.”

Three-in-one

Hungary remains well-placed to benefit from any global recovery. BMW’s greenfield factory in Debrecen, which will create more than 3,000 new jobs, is three major milestones rolled into one, Ésik says.

Ésik believes Hungary will continue to»be a highly competitive and productive location for these companies, and be able to capture a growing share of potential high value-added activities, such as engineering, R&D or complex business services, not just for Hungarian businesses, but also for other locations at the group level. The health of the German economy, then, is a good indicator of Hungary’s well-being.

Backbone and Backyard

“As we used to say, Germany is the backbone of the European economy, and Hungary is the backyard of the German industry. There’s a tight correlation visible in the numbers: Germany is the largest trading partner and represents around 25% of total exports,” Ésik says.

“There is a slight increase in Germany’s industrial output. The latest data was from July, and it’s the first expansion registered since March, exceeding analyst expectations. So, there are some signs of growth again.”

For now, the expected GDP growth is only slightly above stagnation: 0.4% this year and 1.2% next year.

“But at least what we can say is that there is relative stability despite everything that’s happening in terms of the war in Ukraine, and global trade tensions. Also on the positive side, Germany has a much more active fiscal policy than previously.

Róbert Ésik was, for almost eight years, CEO of the Hungarian Investment Promotion Agency. Since September 2022, he has been a partner at EY, advising clients on location selection and incentives, covering the EMEIA region. It makes him an ideal person to provide an overview of German investment in Hungary, in general, and in the automotive sector, in particular.

“Despite the recent challenges and headwinds in the global automotive

A German Business Forum will be organized in Debrecen on Nov. 5 for the first time by the GermanHungarian Chamber of Industry and Commerce (DUIHK) and the city of Debrecen. The event will bring together German businesses from across the country, alongside representatives of German ministries and

“Firstly, battery and vehicle prices are declining, so the cost position of the manufacturers is improving. Secondly, slowly but surely, the charging infrastructure is also improving, which, let’s be frank, is one of the main concerns of buyers of electric vehicles when going on a long journey. Third, from a policy point of view, there is still a clear focus on moving towards EVs; the ban on internal combustion engine vehicles from 2035 is still valid,” Ésik says.

“And last but not least, the OEMs are definitely accelerating EV model rollouts. We saw several new models presented at the Munich

economic development agencies.

“I believe that if you look at different industry associations and chambers in Hungary, the DUIHK is one of the most professional and best organized. It’s a good vehicle to use for companies that are interested in cooperating with German businesses,” says Ésik.

“First of all, it’s a brand new plant. Secondly, it will produce a completely new model. This is the first time BMW has opened a new plant starting with a new model. And number three, it’s the first of this new generation of vehicles that will prepare the company for the decades to come,” the EY partner notes.

“The land was purchased seven years ago. But, importantly, the chairman of the board of BMW, Oliver Zipse, said at the opening ceremony on Sep. 26 that he would make the same decision again.

I think it’s a strong message about the investment environment, but in any case, it is a large investment creating lots of jobs and defining the future of this specific company,” Ésik argues.

Nor is it in isolation. The MercedesBenz plant in Kecskemét is doubling its capacity to

400,000 vehicles,

with an investment of more than EUR 1 million, creating another 3,000 new jobs.

“If you look at the production network of major European OEMs, there aren’t many, not to say any, places where significant funds are being spent on such greenfield investments or huge expansions. We should add Audi to this list, as it has become a multibrand factory that also produces Cupra vehicles, meaning it is now producing five models on a single production line with the various powertrain solutions.”

“One opportunity for Hungary here is to attract new FDI in this domain, but a second opportunity is to get a deeper integration into the European defense supply chain by helping Hungarian companies to become tier two or three suppliers initially.”

It has decided on a EUR 500 bln infrastructure stimulus program, which will benefit the German economy and, by the way, might even give opportunities to Hungarian companies.”

Most Hungarian exports to Germany are of electrical equipment, vehicles, and machinery. What other sectors are worth watching? Ésik makes the point that Hungary continues to punch above its weight in attracting foreign direct investment. Global FDI is declining; in 2024, there was an 11 percentage point decline in FDI globally. 2025 looks likely to be another challenging year.

“There are 2,400 German companies, and they continue to spend significant amounts of money on investments on an annual basis. Mostly these are expansion projects or additions of certain functional areas,” he says.

“In addition to automotive, I would highlight two categories. One would be R&D in general, high value-added

service activities, such as evosoft, part of the Siemens group, opening a center in Miskolc and strengthening its presence in Budapest,” the EY partner says.

“Deutsche Telekom IT solutions Hungary continues to grow as one of the largest IT and business services employers in the country. Kostal Group, a German family-owned, automotive-related business, doesn’t have manufacturing facilities here, but it opened a complex business services center last year, which has finance, HR, procurement, and IT functions, he continues.

R&D Focus

He points out that R&D is a key focus from an investment promotion perspective, with incentive schemes aimed at making Hungary more attractive and supporting these activities. The second sector Ésik mentions as becoming increasingly important is the defense industry, where spending is increasing significantly on the back of heightened security concerns and geopolitical tensions.

“Spending on defense in the EU grew by roughly 20% in 2024, and defense R&D spending also rose by

20% last year. We have prime examples in Hungary of that. We have FDI investors like Rheinmetall, but we also have

Hungarian SMEs, even family-owned businesses, diversifying away from the automotive sector and strengthening their presence in the defense industry to increase the resilience of their businesses,” he notes.

“One opportunity for Hungary here is to attract new FDI in this domain, but a second opportunity is to get a deeper integration into the European defense supply chain by helping Hungarian companies to become tier two or three suppliers initially.”

Ésik argues that this is the best way for SMEs to work their way up the value chain: start by supplying the suppliers, learn how to navigate the industry, its quality and service expectations, and build from there.

Hungary still has much to offer, he says. The Case for Investment

“I think Hungary – and Central and Eastern Europe, by the way – continues to present an attractive and strong case for German investments. This part of Europe has well-developed infrastructure and a skilled labor force at a competitive price point. Hungary has maintained its policy of focusing on supporting foreign investors, so the cost advantage for Hungary remains, and it continues to be a key strength. And despite wage inflation, which, of course, we have seen over the years, I think it’s worth pointing out that we continue to be the most competitive among the V4 countries,” Ésik points out.

If the economic fundamentals remain strong, what about the political landscape, with elections due next spring?

“I have not seen any evidence in the market that companies would delay investment projects because of the upcoming election. I believe these decisions are driven by market needs and the company’s requirements. Stability of the regulatory environment, taxation and so on are important for any investor, but I have not seen any change in behavior.”

Ganz Transformers and Electric Rotating

To return to where we started, even before its Debrecen factory opened, BMW considered Hungary an “invisible factory” due to the substantial volume of purchases it made from suppliers here.

“I think having capable local suppliers, the infrastructure in place, the policies in terms of competitive taxation and the incentive schemes, and within this a willingness to go the extra mile to work together with these companies remains. All these should give us a positive outlook overall.”

German Investment in Hungary Holds Steady, Driven by Automotive and Hi-tech Projects

German investors remain the backbone of Hungary’s foreign direct investment landscape, with 2025 showing continued strength across key sectors such as automotive, machinery, and electronics, according to data from the Hungarian Investment Promotion Agency (Hipa).

German Companies in Hungary

facility to support the company’s fully electric Neue Klasse models. The plant is designed to operate solely on renewable energy, with close to 1,000 robotic arms on the production lines.

Around 2,400 German companies are currently operating in Hungary, employing roughly 230,000 people. Over the past decade, German investors have consistently plowed EUR 2 billion–3 bln annually into capacity expansions, modernization projects, and new developments in Hungary. Since its founding in 2014, Hipa has supported 324 projects with German partners, representing EUR 11.2 bln in new capital inflows. These projects have created nearly 40,000 new jobs and helped preserve a further 60,000.

Hipa tells the Budapest Business Journal that its statistics point to a steadily rising trend of German reinvestments and expansions. No significant change in momentum was seen in 2025 compared with the previous year, underscoring German investors’ long-term confidence in Hungary.

The most significant Germanlinked project of 2025 was the opening of BMW’s plant in Debrecen on Sep. 26. Representing EUR 2 bln in investment, it is the company’s first factory in Hungary and is described as a landmark for the country’s automotive sector.

The Debrecen site spans more than 400 hectares and incorporates a full-scale automotive production setup, including press, body, paint, and assembly shops. It also features a unique in-house battery assembly

Also in 2025, Mercedes-Benz announced a EUR 1 bln expansion of its Kecskemét operations, set to become the largest automotive base in Hungary with an annual capacity of 300,000 vehicles. Combined, Hungary is expected to join the ranks of countries capable of producing one million cars per year.

Like BMW’s site, Mercedes’ new development integrates both car manufacturing and battery assembly at the same location. Within the company’s European network, only the Kecskemét plant has reached this level of integration. The investment expands the site from 220 hectares to more than 400, with production at the new facility scheduled to start in mid-2026.

Broadening Role

Beyond the automotive sector, German companies are broadening their role in Hungary’s industrial ecosystem. This year, Harro Höfliger, a high-tech machinery manufacturer, launched a new Hungarian plant dedicated to producing specialized equipment for the medical technology and pharmaceutical industries.

German companies have long valued Hungary’s central geographic location and competitively priced, skilled workforce. According to Hipa, these fundamentals have remained unchanged for more than 30 years. More recently, pro-business government policies have bolstered Hungary’s appeal, particularly the 9% corporate tax rate (the lowest in

Europe, according to the taxfoundation. org website) and the availability of state-backed incentives managed by the investment promotion agency.

Hipa notes that German investors, like other foreign firms, often cannot rely on EU funds to support projects, making national incentive schemes particularly relevant.

Beyond Hipa’s insights, surveys conducted by the German-Hungarian Chamber of Commerce and Industry confirm that German companies are broadly satisfied with Hungary’s infrastructure, particularly in communications. More than half of respondents also reported positive views of the country’s transport and energy infrastructure.

Perhaps most telling, the chamber’s recurring survey has, since

1997,

asked companies whether they would choose Hungary again as an investment location. Over 29 years, an average of 79% have answered yes.

Hungary is unique in Europe as the only country outside of Germany where all three premium German automakers (Audi, BMW, and Mercedes-Benz), operate large-scale production facilities.

German activity is also prominent in machinery, electronics, and other segments of manufacturing. Increasingly, companies are choosing Hungary for knowledge-intensive functions as well.

R&D Focus

Bosch’s Hungarian subsidiaries illustrate this trend. With revenues of HUF 2.058 trillion in 2024, equivalent to about 2.5% of Hungary’s GDP, Bosch

is one of the country’s largest employers, with 17,400 staff. More than 20% of those, around 3,800 employees, are dedicated to R&D. Bosch invested HUF 135 bln into R&D in Hungary last year, demonstrating the move toward high-value activities.

In 2025, Hungary updated its incentive framework to encourage more knowledge-intensive projects. Non-refundable VIP cash subsidies remain the cornerstone, but eligibility has been broadened. Smaller companies with as few as 50 employees can now apply for R&D support, while larger firms are eligible for additional subsidies if they register patents in Hungary.

For SMEs, support funds of up to 25% can be accessed as an advance, easing liquidity concerns. Training subsidies are now available independently of new manufacturing or service centers, allowing firms to upskill their workforce more flexibly.

Hipa also backs the creation of R&D centers, provided they establish at least 10

new research positions and cooperate with Hungarian universities.

At the same time, manufacturing investment remains welcome. To balance development across the country, Hipa has lowered the investment threshold for accessing subsidies in less developed southern regions from EUR 3 mln to EUR 2 mln, opening opportunities for mid-sized projects.

Hungary is unique in Europe as the only country outside of Germany where all three premium German automakers (Audi, BMW, and MercedesBenz), operate large-scale production facilities.

With record numbers of automotive projects underway and a pivot toward high-value, knowledge-driven industries, German investors are poised to retain a key role in shaping Hungary’s industrial and economic landscape.

Hipa emphasizes that its onestop service model will remain in place, offering free support from site selection to permitting and complete project management. The agency expects this to help sustain momentum in German-Hungarian economic ties, which have already proven resilient in the face of crises, ranging from the pandemic to supply chain disruptions.

4Special Report

Energy

Geothermal: Big Potential, Big Plans, but Progress Limited by Realities

the need to generate both power and heat to justify geothermal investments.

There was no shortage of ambitious, admirable goals touted for Hungary and Europe at the 3rd Budapest Geothermal Energy Summit on Sep. 26, but developments are often proving problematic.

KESTER EDDY

Hungary, its neighbors in the Carpathian Basin and several other European Union countries have excellent potential to expand the use of geothermal energy for heating and power generation, numerous speakers attested during summit sessions at the Budapest Marriott Hotel.

“As you may know, in Hungary, similar to many Central European countries, there are district heating systems. Roughly 670,000 flats [use] district heating, and 10% already use geothermal [sources], but our intention is to double this number, and we are on track,” Hungary’s Minister of Energy Csaba Lantos declared in his keynote presentation.

Such progress would form the backbone of the country’s target to replace one million cubic meters of natural gas, that is roughly 12% of current consumption, within the next decade, he said.

To enable these plans, Hungary announced a new regulatory regime in 2023 designed to attract investors and clear the way for rapid development.

Uncertainties, Risks and Delays

“About delays: The geological drilling uncertainty and brine quality uncertainty, these can go both ways. The results could be worse or better than expected. [But] the third, the schedule: I’ve never seen a project executed in a shorter period than expected; it’s always longer. And that’s a challenge, especially for private investors, who have a very determined project period because of their payback requirements, and hence their budget periods. Sometimes, it’s very difficult to re-allocate a budget from one period to another.”

GÁBOR MOLNÁR, managing director, Arctic Green Engineering Services, Hungary

Measures include a “drillingrisk reduction program,” whereby a successful exploration will receive a 10% subsidy upon completion, while an unsuccessful venture will receive a 50% compensation payment

(with a cap) on the drilling costs. These policies are beginning to yield results.

“We are very proud that more than 100 drilling research permits have been requested, and more than a dozen extractions have already happened,” Lantos said, citing geothermal projects at the MTK Sports Park in Budapest, MOL’s refinery at Százhalombatta and the Lego factory in Nyíregyháza.

Regional Cooperation

Should Extend to Scarce, Expensive Equipment

“We all know in this room that sometimes there is a shortage of equipment in Europe, because the equipment very often is to be found in projects in Asia. So, I’m wondering why not a regional kind of common purchasing of the cleanest equipment, which is, of course, the most expensive, but by sharing the burden and purchasing jointly, we can actually have the cleanest drilling equipment out there, and it can rotate between the countries, based on integrated schedules. Why not, right?”

SUZANA CARP, co-founder, CleanTech for CEE

More Ambition

Speaking for Europe, Miklós Antics, president of the European Geothermal Energy Council (EGEC), the industry’s leading lobby group, was arguably even more ambitious.

Proclaiming geothermal energy as “potentially the largest and presently the most misunderstood source of energy in the world today,” he said EGEC’s target was to move “from megawatts today to gigawatts, so as to provide 75%of district heating and cooling from geothermal resources, 65% for agrifoods, 15% of electricity production and 10% for critical raw materials.”

This was no Utopian vision, Antics asserted, as there are 193 geothermal power plant projects under investigation, along with “more than 500” geothermal district heating plants currently being planned. “It’s getting to be tremendous activity,” he enthused.

He also repeatedly stressed the uncertainties in his presentation, citing, among other factors, the need “to drill 3,000 or 3,500 meters deep, which is very costly and very risky,” along with the necessity “to find fluid with a temperature of at least 100°C.”

Tímea Ladi, head of geothermal and new energies at Hungary’s MOL Group, also underlined the need to manage risks carefully in geothermal exploration to achieve commercial success.

2025.

However, the EGEC president cautioned that geothermal projects “do not happen with the click of fingers,” and that commissioning “may take three to five years, or even more.” Indeed, as the summit progressed, it became increasingly clear that the technical, legal, commercial and even social issues surfacing in the dash to exploit geothermal potential have been and are causing setbacks. Take, for example, the case of Hungarian state electricity company MVM’s first push into geothermal waters. A year ago, at the previous Geothermal Summit, Csaba Kiss, deputy CEO, declared that the stateowned electricity company was targeting 100 MW of geothermal generating capacity by 2035. However, MVM’s projects were to be purely for generation purposes, as the company seemingly had no desire to complicate matters by dabbling in heat production.

Justifying Investment

Twelve months later, plans had changed: while the 100 MW target remains, Kiss quietly changed emphasis at the latest summit, noting

Asked whether MOL, with its long history of drilling for oil and gas, could transfer the knowledge to geothermal, she responded: “I think it’s definitely a match made in heaven, because we know geological risk; it’s our daily bread to work with geological risk.”

She added, with perhaps a whiff of Schadenfreude vis-a-vis the difficulties encountered by MVM: “I don’t want to repeat the financial analysis, because that was also our [conclusion], that power generation has to go hand-inhand with heat sales because [only] this team of services can provide a decent return on the risks taken in geothermal exploration and drilling.”

Denmark Ticks the District-Heating Boxes

“Denmark is a great example for district heating. [...] The district heating in the cities is generally integrated systems, so not fragmented, and even though they don’t have [as] high [geothermal water] temperatures as in Hungary, they push geothermal and biomass, and you can enter the district heating market if you are the cheapest. You can sign a contract for, I don’t know, 25 or 50 years; there is no regulation that says this is going to be the tariff for next year, so it gives flexibility. I»would highlight Denmark in this case.”

TAMÁS PAZSICZKY, partner with consultancy EY-Parthenon, Hungary

Geothermal Roadmap Travails not Limited to Hungary

While a Polish speaker at the summit spoke of the difficulties in finding investors willing to fund district heating projects where profits are legally capped at 6%, Horia Ban, president of the Romanian Geoexchange Society, bewailed the typical time required to obtain the necessary permits.

“It can take two years to gather the authorization for drilling, [that is], if you get it!” he lamented.

Even Germany, a country renowned for its administrative efficiency, has hit roadblocks.

“The problem is the municipalities, they are not competent, and if they start to drill, they go on a learning curve and then [...] that’s it. So the learning curve dies and it’s not transferred to the next developer,” Inga Moeck, board member at Bundesverband Geothermie, noted among a list of issues.

Energy: A Weapon for Some, Physics for Others

Last month, it seemed the unthinkable might happen: Donald Trump would clash with Viktor Orbán over gas imports from Russia. The unimaginable, however, remained unchallenged: the U.S. President accepted what the Hungarian government has been saying for 15 years. But this is not the first time he has given up on matters involving Russian oil and gas.

regimes including Syria and Iran, and to instead join the community of responsible nations in our fight against common enemies and in defense of civilization itself.” It was an invitation largely ignored by the Kremlin.

The U.S. president’s call for European countries to diversify their sources of oil and gas was also not heeded.

Eight months after the inauguration for his second term, Donald Trump has still not been able to achieve what he had first promised back in 2023: that he would end the war in Ukraine within 24 hours. Several rounds of discussions with both sides have not brought peace any closer.

Then, on Sep. 13, Trump posted a message that surprised many. NATO member states, he stated, must stop buying energy from Russia, as this is what keeps the Russian war machine rolling.

“As you know, NATO’s commitment to WIN has been far less than 100%, and the purchase of Russian Oil, by some, has been shocking! It greatly weakens your negotiating position, and bargaining power, over Russia,” Trump wrote on his platform, Truth Social.

Some critics wondered why he would make this statement now, and not on the very first day of his inauguration. The question is even more valid looking at Trump’s first term, from 2017 to 2021, when he threatened in much harsher terms to force European states to stop buying Russian energy, but nothing happened.

Initially, Trump did not mention Russia directly. During a visit to Warsaw in July 2017, he said: “We are committed to securing your access to alternate sources of energy, so Poland and its neighbors are never again held hostage to a single supplier of energy.”

Destabilizing Activities

He did, however, warn Russia on other issues: “We urge Russia to cease its destabilizing activities in Ukraine and elsewhere, and its support for hostile

The German Federal Government, then led by Angela Merkel, continued with the Nord Stream II project, an USD 11 billion pipeline designed to transport gas from Russia to Germany via Denmark, bypassing Ukraine.

This infuriated Trump, and he even gained the support of the U.S. House and Senate to impose sanctions on companies involved in the construction of the Nord Stream II pipeline. European politicians reacted angrily, with German Foreign Minister Heiko Maas stating: “European energy policy is decided in Europe, not in the U.S. We reject external interference.”

Hungary was also a weak link in the Trump administration’s efforts to distance Europe from Russian energy. But here, the U.S. employed a softer approach. In

November

2018,

U.S. Secretary of Energy Rick Perry met with Hungarian Minister of Foreign Affairs and Trade Péter Szijjártó.

At the press conference after the meeting in Budapest, Perry emphasized that Washington opposed “both the Nord Stream II and the multi-line Turkish Stream natural gas pipelines, both of which would extend and deepen Russia’s energy dominance in the region.”

In a discussion earlier that year in Brussels with then NATO SecretaryGeneral Jens Stoltenberg, Trump was more outspoken: “If you look at it, Germany is a captive of Russia.

They got rid of their coal plants, they got rid of their nuclear, they’re getting so much of their oil and gas from Russia. I think it is something NATO has to look at. It is very inappropriate.”

Trump lost the presidential election in 2020, and Chancellor Merkel managed to convince President Biden to greenlight Nord Stream II. That raised an obvious question: Did this mean that Germany and the United States accepted that Russian energy was irreplaceable and could serve as leverage for the Kremlin?

Energy as a Weapon

Something needed to be said, and this manifested in the form of a joint statement: “Should Russia attempt to use energy as a weapon or commit further aggressive acts against Ukraine, Germany will take action at the national level and press for effective measures at the European level, including sanctions, to limit Russian export capabilities to Europe in the energy sector, including gas, and/or in other economically relevant sectors. This commitment is designed to ensure that Russia will not misuse any pipeline, including Nord Stream 2, to achieve aggressive political ends by using energy as a weapon.” Less than one year later, Russia launched its military operation against Ukraine.

This, then, was the context in which Donald Trump’s call to NATO member states arrived on Sep. 13. The question was: what would the Hungarian government do? Continuing to purchase Russian oil and gas not only meant openly defying Donald Trump (a leader whom Prime Minister Orbán has supported for many years, including the four-year period from 2021-2024 when the American was out of office), but also meant going against its own policy.

The Hungarian government has long claimed that it is the only European player seriously promoting peace

Photo by KKM / MTI

in Ukraine. Now that Trump has shown the path, rejecting it would mean denying its own foreign policy. A real dilemma, bluntly resolved by the Minister of Foreign Affairs, Péter Szijjártó, 10 days later. Speaking to the U.K. daily newspaper The Guardian, he said it was a matter of physics for Hungary to purchase energy from Russia. That is the only infrastructure available, he explained. The Trump administration accepted the argument. Not everyone agrees. The Croatian Minister for the Economy, Ante Šušnjar, said on Sep. 26 that Croatia is able to ship

15 million cubic meters of oil to Hungary and Slovakia via the Adriatic pipeline, and he invited Szijjártó to test the pipeline’s capacity together.

The next day, the Hungarian minister responded on social media: “No matter how the Croatian government is denying it, they want to profit from the war in Ukraine. Since the start of the war, they have raised significantly the fees for oil transit, and now they want to hamper buying oil from Russia so that they position themselves in a monopolistic situation and make more money […] from us.” Croatian Prime Minister Andrej Plenković rejected the allegations.

Janaf, the company operating the Adriatic pipeline, also rejected the Hungarian claim that the pipeline is unable to carry sufficient oil to Hungary and Slovakia. It detailed the results of three tests conducted with the Hungarian oil company MOL, stating that during the third test, carried out between Sep. 22-24, flows were reduced at MOL’s request. “The only reason for the decreased flow was the direct demand by MOL Group, and there were no obstacles on Janaf’s part to achieving the planned flow,” the company said.

Algyő Oil and Gas Field Marks 6

Decades of Production

Sixty years after the first wells struck oil and gas at Algyő, a field approximately 180 km southeast of Budapest by road, the site remains one of the cornerstones of Hungary’s energy supply, even as its role evolves in line with the country’s energy transition.

Navigating the Energy Storage Boom: Emerging Trends, Legal Implications

Ádám Lukonits Senior Associate

Hungary’s renewable electricity capacity is growing rapidly, having surpassed 8,200 MW by October 2024, primarily driven by solar power. While this demonstrates promising growth, it also places increasing strain on the national grid, underscoring the urgent need for battery energy storage systems (BESS).

Projects must be completed by Dec. 31, 2027, focus on self-consumption, and ensure that at least 75% of stored energy comes from directly connected renewable sources, with the BESS system reaching at least 20% of the associated renewable capacity. A fiveyear maintenance obligation applies, and proposals are evaluated based on environmental impact, energy efficiency, and use of recycled components.

In the summer of 1965, researchers discovered crude oil at a relatively shallow depth of 2,200 meters. The find became one of Hungary’s most important oil and gas fields, and over the past six decades, Algyő has proven to be the strongest and most stable pillar of domestic supply security, oil and gas company MOL says.

Nearly 1,000 hydrocarbon wells have been drilled on the site, and while reserves are declining, Algyő continues to meet around 10% of Hungary’s natural gas demand and 5% of its oil needs. At its peak in the 1980s,

the field covered as much as 70% of the country’s consumption.

Beyond strengthening self-sufficiency and reducing import dependence, the site has provided long-term jobs for thousands of workers. Over the decades, it also became a hub for technological innovation, where many modern extraction techniques were first tested and applied. Generations of experts were trained here, reinforcing Hungary’s traditions in hydrocarbon production.

In total, 280 million barrels of crude oil and 82.5 billion cubic meters of natural gas have been produced at Algyő, equivalent to 800 million barrels of oil. To illustrate the scale: the extracted crude could fuel 550 million average passenger cars, while the gas would supply every household in Hungary using natural gas heating for 20 years, MOL notes.

Strategic Facility

“Algyő is a true symbol of Hungary’s energy supply: it embodies our exploration and production traditions,

the dedication and expertise of our predecessors and current colleagues, as well as the opportunities offered by the energy transition and sustainable energy use,” says József Molnár, CEO of MOL Group.

“We are proud that over the past six decades, we have played a key role in the country’s supply security, and we are committed to ensuring Algyő remains significant in the future of the energy industry,” he adds.

The site today has evolved beyond its original function merely as a hydrocarbon production base. MOL’s Algyő facility hosts logistics, laboratories, a fire department, and gas product processing facilities. It also houses the company’s maintenance services unit and Hungary’s strategic gas storage. The facility processes products from other oil industry companies and currently employs nearly 800 people.

Looking ahead, MOL is aligning Algyő with its long-term Shape Tomorrow strategy, which emphasizes a “smart green transition.” Alongside fossil fuel production, the company is investing in renewable energy generation and storage. A new solar park with a capacity of 37.4 MWp and an associated 40 MWh storage system is under construction at the site.

The investment is designed to make MOL’s Algyő operations electricityindependent, improve supply resilience, and cut the facility’s CO2 emissions by 13,000 tonnes annually.

These technologies help balance the supply and demand of the national grid and improve the usability of intermittent renewable energy. As part of Hungary’s long-term strategy to rely primarily on nuclear and renewable energy, expanding BESS capacity is essential. The National Energy and Climate Plan targets 500 MW of BESS by 2026 and 1 GW by 2030, but high upfront costs and uncertain returns continue to hinder investments.

To accelerate the adoption of BESS, the Hungarian government has launched several targeted initiatives for various stakeholder groups, including programs for industrial developers such as Metároló. The latest step in accelerating BESS investments is the Jedlik Ányos Energy Program, which supports companies in building renewable generation and BESS capacities to boost energy autonomy and efficiency.

The current call for proposals under the program provides investment support for companies to install BESS and expand renewable generation capacity. By reducing reliance on grid electricity and imported energy, the Jedlik Ányos scheme promotes greater self-sufficiency and cost efficiency. Its flexible structure allows both companies with existing systems and those starting from scratch to tailor their projects, making it a key driver of corporate sustainability and competitiveness in Hungary’s evolving energy landscape.

The total funding available under the Program is HUF 50 billion, with HUF 25 bln earmarked specifically for micro-, small- and medium-sized enterprises, and is expected to support between 2,500 and 2,600 projects. Companies can apply for non-refundable investment support ranging from HUF 10 million to HUF 1 bln, covering up to 50% of eligible costs depending on company size.

Participating in the program presents a strategic opportunity for companies to significantly reduce operational costs and shield themselves from the volatility of energy prices. By investing in renewable energy generation and BESS, businesses can achieve long-term financial stability and reduce their dependence on the central electricity grid. Once the initial investment is recovered, companies benefit from predictable energy expenses and improved energy security, key factors in maintaining stable operations in an increasingly unpredictable global market. Beyond the financial advantages, BESS technologies enhance supply reliability and grid stability, which are becoming critical in a climate-conscious economy. From a sustainability standpoint, aligning with EU and national targets to increase the share of renewables in electricity production is not only a regulatory expectation but also a competitive edge. Companies that demonstrate a commitment to green energy are more likely to receive favorable consideration in future funding rounds and enjoy stronger public and market perception. However, while the program offers attractive financing conditions, navigating its technical, regulatory, and contractual requirements can be complex. This is where expert legal advice becomes essential. As a leading law firm with experience in energy and infrastructure projects, we support clients throughout the entire process, from assessing eligibility and structuring applications to ensuring compliance and managing longterm obligations. In a rapidly evolving energy landscape, strategic investments in BESS and renewables, backed by sound legal guidance, can position companies for sustainable growth, operational resilience, and enhanced market competitiveness. www.wolftheiss.com

Hungarian Oil and Nuclear Plans Under Literal and Legal Attack Energy Matters

Hungary’s energy sourcing has undergone some dramatic developments over the past two months, from attacks on the Druzhba pipeline to the annulment of the European Commission’s state aid for Paks II. Yet, the Hungarian government remains defiant, asserting that it is sovereign in determining the country’s energy affairs.

Over the month of August, Ukrainian attacks on Russian energy infrastructure damaged the Druzhba (Friendship) pipeline on three distinct occasions, each time disrupting supply. Still dependent on the pipeline for much of its energy needs, both Hungary and Slovakia reacted with indignation.

On Wednesday, Aug. 12, Ukrainian drones struck the Unecha junction and pumping station in Bryansk Oblast, Russia. This caused a fire, which disrupted the supply of crude deliveries to Hungary until Friday, Aug. 15.

Three days later on Monday, Aug. 18, Ukraine’s

14th

Drone Regiment attacked the Nikolskoye oil pumping station in Michurinsky District in Tambov Oblast. A more severe assault, it caused the flow of the Druzhba to come to a halt, although supply was restored two days later, after the repair of a critical transformer station.

The Unecha station in Bryansk Oblast was targeted once again, on Friday, Aug. 22. In addition to drone strikes, this time the station was bombarded by rocket fire, which caused even greater damage and led to a five-day disruption in supply.

Hungarian Minister of Foreign Affairs and Trade Péter Szijjártó and his Slovak counterpart Juraj Blanár raised the issue in a letter sent to EU High Representative Kaja Kallas and Energy Commissioner Dan Jorgensen on Aug. 22, calling on Brussels to prevent these attacks.

Energy Security

In their letter, the ministers referred to a European Commission declaration that had called on third countries to

A biweekly look at energy issues in Hungary and the region

respect the integrity of the energy infrastructure supplying member states as a “matter of EU security.”

They pointed out that the commission had said it was “ready to take measures to protect critical energy infrastructure such as electricity cables and oil or gas pipelines or facilities. Yet after all three strikes it has remained silent, taking no steps to defend the energy supply of member states,” the ministers protested.

“Given that in the past years, the EU and its member states have provided hundreds of billions of euros worth of support to Ukraine, we find Ukraine’s actions, which severely threaten the energy security of Hungary and Slovakia, completely unacceptable,” they added.

Despite that, another two Ukrainian air strikes targeting Russian energy infrastructure took place on Saturday, Sep. 6, and Saturday,

Sep. 27,

although on these occasions it failed to damage the Druzhba pipeline and thus disrupt crude oil deliveries to Hungary.

Given how relatively precarious the Druzhba supply has become for Hungary, it has sought assurances from other suppliers. Croatian pipeline operator Janaf said it could fully meet the annual crude oil needs of Hungarian oil group MOL’s refineries in Hungary and Slovakia, if deliveries via the Druzhba pipeline stopped, chairman of the management board Stjepan Adanić told news wire Reuters on Sep. 3.

“The pipeline is in good technical condition and fully capable of ensuring stable supply, including the possible increase in quantity, should delivery via the Druzhba pipeline cease,” Adanić said.

Capacity Tests

However, MOL later said on Sep. 24 that capacity tests on the Adria crude pipeline to evaluate whether it could consistently function at maximum capacity over extended periods had failed due to technical issues. MOL said joint tests carried out several times indicated the pipeline could not maintain sufficient capacity for more than 1-2 hours. The Croatia side claimed MOL had asked it to run at reduced rates on the third test.

Speaking in New York on Sep. 25, Szijjártó accused Croatia of exploiting the energy crisis by charging Hungary a “wartime premium” for crude oil deliveries, claiming that transit fees for oil delivered via the Adria pipeline had been raised to five times the European benchmark.

Szijjártó also addressed concerns over Bulgaria’s commitment to gas transit after Prime Minister Rosen Zhelyazkov reportedly said the country would end its contract for Russian gas transit in 2026.

After requesting clarification, Szijjártó said Bulgarian energy minister Zhecho Stankov had assured him Bulgaria would remain a reliable transit partner for Hungary.

Hungary’s energy mix received another blow of sorts, when the Court of Justice of the European Union (CJEU) annulled an EC decision approving state aid for the upgrade of Hungary’s Paks nuclear power plant. According to the ruling, the EC should have verified whether awarding the contract for the construction of two reactors to Russian state firm Rosatom was in line with EU public procurement rules.

“This judgment will not restrict or slow to any degree the advance of the investment,” Szijjártó said in response to the CJEU ruling. Indeed, first deputy CEO of Rosatom Kirill Komarov told journalists at the World Atomic Week in Moscow on Sep. 26 that the general contractor is progressing with the Paks II nuclear power plant project as planned, and that the ruling had no impact on the project, adding that the work is “not stopping for a minute.”

To further its nuclear diplomacy, Hungary signed an agreement with China’s atomic energy agency that would open up significant opportunities for cooperation in nuclear energy, safety, and innovation, Szijjártó said in Vienna on Sep. 15. Acknowledging that French, German, Russian, U.S. nuclear players all operate in Hungary and cooperate effectively, he said that “Hungary proves that one of the best fields for reviving civilized EastWest cooperation is nuclear energy.” He added that the next decade will clearly be defined by nuclear energy, given rising global electricity demand.

CATL Promises Lower Energy Requirements, Less Water Consumption at Debrecen

CATL says it intends to implement more environmentally friendly and energy-efficient solutions at its Debrecen plant. To this end, the company has applied to the Hajdú-Bihar County Government Office to modify its environmental permit, with the aim to use less water and energy.

New types of cooling towers will reduce the amount of water used for cooling by nearly a third. In addition to nickelcobalt-manganese battery cells, the company says it also plans to manufacture lithium-iron-phosphate (LFP) batteries.

CATL, which claims to be the world leader in manufacturing batteries for electric vehicles and the international market leader in technological innovations based on the use of renewable energy sources, is building its second European battery factory in Debrecen.

The Department of Environmental Protection, Nature Conservation and Waste Management of the Hajdú-Bihar County Government Office issued the plant’s integrated environmental permit in

2023,

which was amended twice, first in that year and then in 2024. In accordance with the licenses issued, trial production of modules began last September in the Southern Industrial Park; cell production is scheduled to start at the end of this year. The company has now applied to the Government Office to amend its environmental permit for a fourth time.

“The purpose of the amendment is to apply even more environmentally friendly and energy-efficient solutions than previously planned, i.e., to use less water and energy. However, there is no change in the fact that we will continue to develop a strict operating and control system at our Debrecen plant to ensure that it complies with all Hungarian and European Union environmental regulations,” said Matt Shen, managing director of CATL Debrecen.

One of the most important changes is that the company will install so-called adiabatic cooling towers to reduce water consumption. The firm states that the technology is more efficient and uses less water than traditional cooling towers, resulting in a nearly 30% reduction in the amount of water required for cooling.

Reduced Footprint

Once the associated urban infrastructure has been built, the facility will use only gray water for cooling, which will also significantly reduce the plant’s environmental and water footprint.

“Our approach continues to focus on minimizing environmental impacts, and to this end, we are constantly adapting to the latest scientific and regulatory requirements,” Shen insists.

Thanks to design optimizations, CATL now says the Debrecen plant will be able to use significantly less energy, with the average specific energy consumption of manufacturing activities reduced by nearly a third. This is due to several modifications. For example, optimizing the energy efficiency of the combustion equipment used in the manufacturing process reduces the required heat output, allowing the same technological performance with less energy consumption.

CATL says it has also further developed its heat recovery systems, which enable more efficient reuse of waste heat.

In another significant change, the company says it has revised its previous plans and is not currently planning to build its own NMP (N-methyl-2-pyrrolidone, a widely used solvent) regeneration facility. Instead, the recyclable NMP generated during the manufacturing process will be transported to expert partners with waste utilization licenses.

Double Benefit: Energy Efficiency With Tax Benefits

LeitnerLeitner Dr. Nóra Rácz CEO, Partner

While household energy costs have remained stable, those for business have risen in multiples. It is, therefore, surprising how little is heard about the corporate tax benefits available for energy efficiency investments. In the long run, these can indirectly reduce the costs of electricity, gas, and other energy sources. This presents a dual advantage: firms can implement investments that lead to cost reductions by spending less.

First, though, it is worth remembering that, due to the frequently changing rules, assessing the possibilities with the help of experts to achieve the greatest possible tax savings is strongly recommended. The allowance is not a direct cash subsidy, but a form of tax relief, which means that the amount of the subsidy depends on the business’ profitability and the tax payable. Taxation for the coming years must be carefully planned to ensure that the allowance can be used and not just remain a possibility. Most businesses are only familiar with the development tax credit, and due to its high minimum investment value of HUF 1 billion-3 bln, many believe it is out of reach for them. However, the “entry investment” thresholds are lower for environmental protection and energy efficiency developments.

Most importantly, investments serving energy efficiency goals that qualify for tax benefits are not limited to new investments, but also apply to renovations. They can include building insulation, window and door replacement, air conditioning upgrades, and the installation of equipment producing energy for own heating, cooling and industrial heat production (i.e. solar collectors, heat pumps, and biomass equipment). However, solar panels that generate electricity and energy-producing

equipment using fossil fuels (such as gas boilers) are not eligible for support, nor is district heating and cooling. The maximum value of the investment is equivalent to EUR 30 mln in Hungarian forints. The rules differ depending on whether the investment is in buildings or non-buildings. For non-building projects, the acquisition cost and increase in value of tangible and intangible assets are eligible costs. For projects related to buildings, an increase in efficiency, measured in terms of primary energy (energy occurring in its natural form), is expected, whether the energy source is renewable or non-renewable. The direct costs of the investment or renovation are eligible; the aid intensity is 15%, which may be higher in the case of SMEs.

A tax credit can also be used for installing electricity storage facilities with an aid intensity of 30% (even higher for SMEs), provided that at least 75% of the energy fed into the grid comes from renewable sources. The value of the investment may not exceed EUR 30 bln.

Finally, tax base allowances related to the establishment of electric charging stations are gaining increasing popularity. This incentive can be applied to the total investment value of stations by deducting twice the costs incurred from the corporate tax base. However, this is considered “de minimis” aid.

In the case of independent environmental protection investments, allowances are available for investments of at least HUF 100 mln that serve to reduce environmental impact, protect health, or conserve natural resources. No additional commitment is required in terms of headcount, turnover, or wage costs.

There are many factors to consider; a tax advisor experienced in the field can answer these questions and help you make informed decisions on these issues.

LeitnerLeitner and LeitnerLaw have a long tradition of offering their clients highquality full-scope consulting (including tax, accounting, payroll audit and legal services) in Central Europe. Creating integrated and multidisciplinary onestop solutions is a crucial element of our client-focused approach to the needs of private clients, SMEs and corporate groups on general and specific questions.

BioSolar Project Aims to Make Solar Investments Truly Nature-positive

Hungary has taken a leading role in one of Europe’s most ambitious research initiatives aimed at reshaping the way solar energy projects are financed. The Corvinus University of Budapest, through its Sustainable Finance Research Center, is heading the financial work package of the BioSolar project, launched earlier this year.

Rather than sacrificing grasslands and farmland, the hope is that these projects could provide managed refuges for biodiversity while still delivering renewable energy to the grid.

The BioSolar project stands out because it links two spheres that are often seen as unrelated, or even conflicting: financial decisionmaking and ecological preservation. Placing Corvinus at the center of the financial design process underlines the potential for Hungary to influence European policy discussions on sustainable investment.

The SFRC’s task is to create models that allow investors to measure and reward the ecological benefits of their capital, turning the financing of solar schemes into a tool for restoring natural habitats rather than eroding them.

International in scope, the project brings together universities and institutions from Canada, Iceland, Poland, Portugal, Slovenia, Spain, and Sweden, in addition to Hungary. This multidisciplinary team includes ecologists, environmental sociologists, renewable energy specialists, landscape managers, economists, and financial researchers. Together, they aim to design solar parks that go beyond their primary energy function to serve as havens for local flora and fauna.

The Hungarian role is particularly visible in the financial architecture being developed. The SFRC is investigating how biodiversity risks and opportunities can be systematically integrated into the evaluation of solar investments.

This involves developing financial guidance for project developers, testing biodiversity credit schemes, and identifying payment mechanisms that will genuinely incentivize environmentally conscious planning.

Not in Opposition

“The BioSolar project demonstrates that biodiversity and finance are not opposing concepts,” says Dr. Helena Naffa, head of the SFRC. “If we design financial instruments that reward nature-positive solar parks, we can prove this link in practice.”

Her comments highlight a broader ambition: to show that the energy transition can be financed in a way that simultaneously delivers measurable ecological restoration.

The scale of the project underscores its importance. Jointly funded by Hungary’s National Research, Development and Innovation Office

The team must ensure that instruments meet the stringent requirements of EU sustainable finance regulations and retain credibility among both investors and policymakers.

Building Confidence

BioSolar’s insistence on analyzing these risks head-on reflects an awareness that finance alone cannot drive ecological outcomes unless the underlying tools are trusted. Ensuring that investment frameworks remain aligned with EU sustainable finance rules will be central to building this confidence. If achieved, the project could provide a model for integrating biodiversity into energy finance that other sectors might follow.

“The BioSolar project demonstrates that biodiversity and finance are not opposing concepts. If we design financial instruments that reward nature-positive solar parks, we can prove this link in practice.”

and Biodiversa+, the European Biodiversity Partnership, the initiative started in April and runs until March 2028.

The total budget amounts to EUR 1.7 million, of which some

EUR 250,000

has been awarded to Corvinus. This allocation not only reflects trust in the Hungarian team but also creates an opportunity to position the university as a European reference point in the field of sustainable finance.

In practice, the success of BioSolar will depend on how effectively the team can turn abstract concepts into practical financial tools. For example, biodiversity credits or payment schemes can only function if they are transparent, standardized, and widely recognized by both regulators and market participants.

Likewise, guidance for project developers must be detailed enough to influence planning and construction but flexible enough to adapt to local ecological conditions. These are not minor challenges, and the Hungarian-led financial group will need to balance technical rigor with practical applicability.

With sustainability becoming a mainstream concern, investors are increasingly sensitive to accusations of “greenwashing.”

The potential impact extends beyond energy. If BioSolar succeeds in showing how renewable energy investments can be paired with ecosystem restoration, the approach could inform similar efforts in agriculture, infrastructure, or water management.

In this sense, the Hungarian leadership in the project offers more than a contribution to solar finance; it could spark broader thinking about how capital markets might serve ecological goals across multiple industries.

Over the next three years, the project’s findings are expected to provide fresh perspectives for EU policymakers and institutional investors alike. If successful, the results will outline practical pathways for integrating biodiversity into mainstream investment frameworks, making naturepositive energy projects not the exception but the norm. Such outcomes would mark a significant step forward in Europe’s broader adoption of nature-based solutions, aligning the continent’s financial strategies with its environmental commitments.

The Corvinus University Sustainable Finance Research Center has long been engaged in cross-disciplinary research at the intersection of finance, sustainability, and investment. For Hungary, the university’s involvement in BioSolar demonstrates the country’s capacity to contribute not only technological solutions but also financial innovation to Europe’s clean energy transition.

E.ON Unveils HUF 22 bln Remote-controlled Transformer Station

E.ON Hungária Group, which operates the electricity network in Transdanubia, Pest County and Budapest, has officially unveiled its latest HUF 2.2 billion investment, a fully automated, remotely controlled transformer substation in Veszprémvarsány, 126 km west of Budapest by road.

The previous 35/22 kV switching station has now been replaced by a 132/22 kV network element, which is significantly more efficient and powerful. The company says it is like replacing a single-lane access road with a multilane highway. The result guarantees much greater capacity, more reliable and flexible network operation, greater load capacity and security of supply.

This new “energy highway provides network capacity for up to 1,000 household solar panel systems. It also ensures a lightning-fast and reliable power supply:

a competitive and sustainable energy economy, to which the transferred substation contributes not only with its 1.5 times greater capacity, but also through the use of future, greener energy sources, such as those produced by wind farms planned for the wider region. We have already embarked on the path of transformation,” said Deputy State Secretary for Energy Policy Márk Alföldy-Boruss of the Ministry of Energy.

Balázs Lehoczki, CEO of E.ON Észak-dunántúli Áramhálózati Zrt. (front row, right) shows Deputy State Secretary for Energy Policy Márk AlföldyBoruss around the substation. Behind them are Mayor of Veszprémvarsány Melinda Vaderna (center) and Sándor Széles, chief magistrate and head of the Győr-Moson-Sopron County Government Office (right).

the new substation provides more stable service to 16,000 customers living in and around Veszprémvarsány, allowing household appliances and electrical devices to operate more reliably. The transformer station is fully automated and remotely controllable, heralding a modern, digital future for network operation.

The investment means new industrial parks and large energy-intensive consumers will also be able to connect to the network in the future without overloading it. The innovative system ensures more stable voltage flow, which is particularly important for modern, sensitive household and industrial equipment. The automated control system enables faults to be identified and rectified more quickly, resulting in shorter power outages.

“Our investment simultaneously serves the development of the region’s

population and businesses, as well as the successful connection of renewable energy sources to the grid. As part of the Danube InGrid project, E.ON has implemented a strategic development that will strengthen security of supply in the long term and enable a more reliable, predictable, and flexible energy supply,” said Balázs Lehoczki, CEO of E.ON Észak-Dunántúli Áramhálózati Zrt.

Competitiveness Boost

The network development is also crucial for the country’s competitiveness, and brings Hungary “closer to achieving its ambitious goals of energy sovereignty and carbon neutrality,” according to the government.

“We consider it extremely important that every family should be able to enjoy accessible, clean, smart, and affordable energy. We aim to ensure

The HUF 2.2 billion investment is part of a series of developments E.ON is implementing until the end of 2025 as part of the Danube InGrid project, a cross-border cooperation supported by the European Union. Two-thirds of the costs were covered by E.ON’s own resources, with one-third coming from the EU.

The facility will be connected to the approximately 64-kilometer-long Kisbér-Veszprémvarsány-Zirc-Litér 132 kV transmission line, which is also being built as part of the Danube InGrid project, as well as to the Kisbér and Zirc transformer stations, the latter of which is currently under construction.

As part of the Danube InGrid project, E.ON is building or expanding 12 substations between 2021 and 2025. Of these, the construction of the greenfield substations in Öttevény, Gyermely, Kisbér, Zalaszentgrót, and Várpalota, as well as the expansion of the Székesfehérvár-Dél substation, has already been completed. Following the completion of work in Veszprémvarsány, the substation supplying the northern area of Szombathely will soon be finished.

Hungary–Slovakia Gas Deal Marks Milestone for Vertical Corridor Project

Earlier in September, Hungary and Slovakia took a further step to strengthen their energy cooperation by expanding their cross-border gas transmission capacity. The agreement signed between Hungary’s gas transmission system operator FGSz and its Slovak counterpart eustream amended their Interconnection Agreement at the Vel’ké Zlievce/Balassagyarmat interconnection point, raising firm capacity from 3.5 billion cubic meters per year (bcm/y) to 4.38 bcm/y. In other words, an increase of 25% in the direction from Hungary to Slovakia.

Although the expanded capacity is still subject to approval by national regulators, the signing of the deal is already seen as a strategic milestone. “ This agreement represents an important step in the establishment of the Vertical Corridor,” underlined Szabolcs I. Ferencz, CEO of FGSz. Hungary can be considered one of the most interconnected gas markets in Central and Eastern Europe, with pipelines linking it to all its neighbors. Particularly important, in light of recent geopolitical developments, is the Hungarian-Serbian interconnector, part of the TurkStream corridor, with a capacity of around 7.5 bcm/y.

Additionally, an agreement has been recently signed with the Romanian transmission system operator Transgaz to increase the gas capacity between the two countries to 2.6 bcm/y, opening up more opportunities to access natural gas from the Black Sea.

Ambitious Project

On the other side of the border, the interconnector with Slovakia is also gaining significance: it can provide Hungary with a direct pathway to Western European markets and access to LNG terminals across Europe. This aligns perfectly with the Vertical Corridor initiative, an ambitious project

to enable bi-directional flows of natural gas from north to south and vice versa. Diversified supply has become increasingly critical for a landlocked country like Hungary, especially since January

2025,

when the gas transit from Russia to Ukraine ceased. Hungary is already benefitting from LNG projects nearby, like the Krk terminal in Croatia, which supplies at least 1 bcm of gas per year. The idea is that, once completed, the Vertical Corridor will enable gas to flow more flexibly across the continent, further reducing bottlenecks

and providing countries with greater access to diversified supplies.

Thus, the additional firm capacity between Hungary and Slovakia represents a tangible step toward this goal. However, it is not just an issue of energy security. By enhancing capacity, the Hungarian-Slovak interconnection will also contribute to a more integrated and competitive regional gas market. Neighboring countries will be able to respond more quickly to demand shocks, share storage capacity, and ultimately align better with EU solidarity mechanisms. Furthermore, for market participants, once regulatory approvals are granted, the additional capacity could open up new trading opportunities and flexibility. Furthermore, new LNG capacity is coming online in various sites across the region: in Croatia’s Krk Island, with an increase in the regasification capacity of the terminal; at Greece’s Alexandroupolis, which, after a bumpy start to the year, seems to be again on course; and at Poland’s Świnoujście and Gdańsk terminals.

By increasing its interconnection with Slovakia, Hungary can further channel these supplies, positioning itself as more than just a consumer market, but rather as a transit hub, a bridge between north and south, east and west.

Gas Traders

3

2

1

5

4

6 PRÍMAENERGIA ZRT. www.primaenergia.hu

7 FLAGA HUNGARIA KFT. www.flaga.hu

The BBJ Just Got a Voice

The Budapest Business Journal is excited to introduce a new way to experience our stories: #TextToSpeech From now on, selected articles marked with the “Listen Now" symbol can be enjoyed not only by reading — but by listening. Whether commuting, working across multiple screens, or squeezing in the latest insights during a workout, our readers can now stay informed through natural-sounding audio.

This innovation reflects our commitment to #DigitalInnovation and #Accessibility. As Hungary's leading English-language business magazine, we know our audience needs flexible, on-the-go solutions — and we're here to deliver.

Next time you see the “Listen Now” symbol, press play and let #BBJ reporting keep you updated — wherever your day takes you in the world of #BusinessJournalism and beyond in #Hungary

"HO-ME 2000" Vagyonkezelő Kft. (100)

LPG Holding GmbH (100)

Zoltán Szirmai

Jaroslaw Piotr Król, Konrad Pawel Malec, Mattern Megan, Pawel Rozkrut

1138 Budapest, Váci út 144–150. (20) 597-0000 info@ceenergy.hu

1081 Budapest, II. János Pál pápa tér 20. (1) 474-9999 ugyfelszolgalat@mvm.hu

1117 Budapest, Dombóvári út 26. (1) 464-1111 info.methu@met.com

1139 Budapest, Fiastyúk utca 4–8. (20) 459-9600 versenypiac@audaxrenewables.hu

4200 Hajdúszoboszló, Rákóczi utca 184. (52) 558-100 ugyfelszolgalat@tigaz.hu

1117 Budapest, Alíz utca 3. (1) 209-9900 vevoszolgalat@primaenergia.hu

2040 Budaörs, Puskás Tivadar utca 14. (23) 507-600 flaga@flaga.hu

Scan the QR code to try this new feature

Electricity Traders

3

2

1

4

5 AUDAX RENEWABLES KFT. https://audaxrenewables.hu/

6 BC-ENERGIAKERESKEDŐ KFT. www.bcenergia.com

NR BUDAPESTI ENERGIAKERESKEDŐ KFT. www.energiakereskedo.hu

Oscar

Zrt. (100)

István Zoltán Hegedüs

info@mvmp.hu

1085 Budapest, Kálvin tér 12. (1) 886-3400 admin.hun@alpiq.com

1117 Budapest, Hengermalom út 18. 20/30/70 459-9600 eon@eon.hu

1139 Budapest, Fiastyúk utca 4–8. (20) 459-9600 versenypiac@audaxrenewables.hu

3700 Kazincbarcika, Bolyai tér 1. (48) 511-816 energiaker@borsodchem.eu

1061 Budapest, Liszt Ferenc tér 5. (1) 240-7504 ptakacs@energiakereskedo.hu

Energy Review

Discover the latest edition of Energy Review, the definitive bi-annual guide to Hungary’s energy sector. Packed with expert insights, in-depth interviews, and forward-looking analysis, this English-language publication offers a comprehensive overview of the trends shaping the country’s energy landscape. From major investments in renewables and grid modernization to evolving regulations and ESG

› BATTERY › GEOTHERMAL › INFRASTRUCTURE › LNG › NUCLEAR › REGULATORY › RENEWABLE › STRATEGY

commitments, Energy Review is a must-read for professionals, policymakers, and investors alike. This publication features exclusive commentary from top industry leaders and covers topics such as solar capacity, LNG infrastructure, smart grid development, and Hungary’s role in regional energy security. Whether you’re looking for strategic guidance or sector-specific data, this publication is your go-to source.

Fuel Retail Companies

3

2

5

4

1117 Budapest, Dombóvári út 28. (1) 209-0000 ugyfelszolgalat@mol.hu

2040 Budaörs, Kinizsi út 1–3. (20) 827-0000 tescoglobalzrt@ hu.tesco-europe.com

1117 Budapest, Október huszonharmadika utca 6–10. (1) 381-9700 info.hungary@omv.com

1113 Budapest, Bocskai út 134–146. (1) 436-3200 info-hu@shell.com

2040 Budaörs, Sport utca 2–4. (23) 886-200 info@auchan.hu 6

solutions-and-energy-services/bu-marketing/ mabanaft-hungary/

1112 Budapest, Boldiszár utca 2. (1) 465-7600

1112 Budapest, Boldizsár utca 2. (1) 465–7600

1185 Budapest, Liszt Ferenc Nemzetközi Repülőtér (1) 296-5107 companysecretary@bud.hu

1016 Budapest, Mészáros utca 58 B (1) 450-2960 megrendeles@mbenergy.com

1138 Budapest, Népfürdő utca 22. (1) 465-7600

9092 Tarjánpuszta, Baross Gábor tér 8. (96) 437-029 office@mo-to95.hu

1225 Budapest, Nagytétényi út 221–225. (1) 391-0570 mail@envirochem-ltd.com

1095 Budapest, Ipar utca 2/A (20) 400-6373 info@mobilpetrol.hu

Debrecen, Galamb utca 2–4. (52) 470-519 jundj@t-online.hu

9330 Kapuvár, Ipartelepi út 8 (96) 595-250 fullsopron@t-online.hu

4300 Nyírbátor, Szentvér utca 41. (42) 510-288 postmaster@grovi.t-online.hu

Universal Electricity and Gas Providers

Ranked by total net revenue in 2024

3

2

1

Róbert László Romhányi

4 MVM DÉMÁSZ ÁRAMHÁLÓZATI KFT. www.mvmhalozat.hu/aram

5 MVM ÜGYFÉLKAPCSOLATI KFT. https://www.mvmnext.hu/vallalatiinformaciok/leanyvallalatok/MVMugyfelkapcsolati-Kft

6 MVM ÉGÁZ-DÉGÁZ FÖLDGÁZHÁLÓZATI ZRT. www.mvmhalozat.hu/

7 MVM FŐGÁZ FÖLDGÁZHÁLÓZATI KFT. https://www.mvmhalozat.hu/gaz

8 MVM SERVICES ZRT. https://mvm.hu/Rolunk/Tagvallalataink/ MVMServices

MVM Energetika Zrt. (100)

Gábor Soós

MVM Next Energiakereskedelmi Zrt. (100) –Gábor Soós

Energetika Zrt. (100)

Szvetlána Gyurity

1138 Budapest, Váci út 144–150. (20) 597-0000 info@ceenergy.hu

1081 Budapest, II. János Pál pápa tér 20. (1) 474-9999 ugyfelszolgalat@mvm.hu

1031 Budapest, Szentendrei út 207-209. (1) 304-2000 info@mvmp.hu

6724 Szeged, Pulcz utca 44. (62) 656-600 ugyfelszolgalat@mvm.hu

1081 Budapest, II. János Pál pápa tér 20. (20) 778-0724. ugyfelszolgalat@mvm.hu

6724 Szeged, Pulcz utca 44. (96) 616 316 info@mvmedgazhalozat.hu

1081 Budapest, II. János Pál pápa tér 20. (1) 474-9911 info@mvmfogazhalozat.hu

1031 Budapest, Szentendrei út 207–209. (20) 614 6401 titkarsagmvmservices@mvm.hu 9

Energetika Zrt. (100)

Róbert Gábor Szőke

1023 Budapest, Árpád fejedelem útja 26–28. (1) 465-3780 kapcsolat@mvmotthonplusz.hu

1037 Budapest, Montevideo út 10. (1) 999-1777 mobiliti@mobiliti.hu

1023 Budapest, Árpád fejedelem útja 26–28. (20) 527-5370 napelem@mvm.hu

7630 Pécs, Engel János József utca 6. (72) 511-599 info@mvmwatteta.hu

5 Socialite

The Wonders of a Walk in the Buda Hills

Minutes into my first walk in the Buda Hills, I was asking myself, “Why have I never done this before?” I can’t think of another city, certainly not a capital, where one can be in hilly open country so quickly.

DAVID HOLZER

I was walking the Hármashatár Mountain Panorama Loop with a Hungarian friend. We’d driven to Hármashatár, parked by the side of the road and struck off into thick woods. It was a hot late summer Saturday, and it immediately felt good to be walking in the shade.

As we walked below a canopy of leaves, I remembered a previous life in which I wrote the literature for a British government project. For the first time, they’d formulated an equation that demonstrated how much money the health service could save on treating obesity, heart conditions, diabetes and skin cancer by encouraging people to walk in woods and forests. ’Twas a considerable sum.

There’s an ancient Japanese tradition of Shinrin-yoku, or “forest bathing,” which is simply the act of walking in a wood or forest. Woods have fewer trees than forests and therefore a less dense canopy. Even if you’re not a tree-hugger, there’s something about being in the presence of trees that makes most of us fall into a state of quiet contemplation.

My colleague Tamás Kiss, the financial director of the Budapest Business Journal, is a keen walker who hikes with his friends and his family (he has three children) regularly. He also walks the legendary El Camino de Santiago, a network of trails across Europe that ends at the cathedral of Santiago de Compostela, a city in north-west Galicia, Spain, alone every two years.

“I really like hiking alone. Hiking in company is completely different. You can’t compare it,” Kiss says. “I think everyone needs some ‘alone time’ when they can think calmly, reflect,

and switch off after the daily rush. I recommend this to everyone; you can learn excellent self-knowledge.”

Big

Lime, Little Lime

Kiss’ favorite hikes in the Buda Hills are in the Big and Little Lime (sometimes called Lindon) hills in the Hárshegy area. The walks he takes with his family are between eight and 10 kilometers. With friends, the distances covered are nearer 20 to 25 kilometers.

Let’s pause here and consider the difference between “walking” and “hiking.”

I’ve noticed that my American friends describe everything other than a brief shuffle to the bodega to pick up a carton of, I don’t know, oat milk, as a hike. On the other foot (to coin a phrase), my British chums will describe travelling miles across arduous terrain as a walk. Perhaps, he said archly, it’s because so many Americans prefer driving to using their legs.

Now, back to the Hármashatár Mountain Panorama Loop, an easy walk of eight kilometers or so. Once we were out of the woods, we passed the Szemlőhegyi barlang, part of a network of caves that honeycombs the Buda Hills and the city itself. Apparently, you can walk for miles underground, if that appeals.

The Loop also takes in a couple of observation points. My friend pointed out the Lidl and Tesco where he and his wife would do their shopping later that weekend. Perhaps slightly more impressive, at least for me, was the realization that, from

our vantage point, I could see farmland and, beyond that, rolling hills. We reached a meadow and passed a mother and father picnicking with their baby.

The rain started when we were back in the woods, a few heavy plopping drops at first. By the time we were back on the road and walking uphill to the car, the deluge was spectacular. The road had become a river, and we were soaked to the skin. All part of the adventure.

Organized Walks

Our Hármashatár walk had whetted my appetite, but my friend was off on an American adventure for a month. I began researching organized walks. Attila Höfle of Budapestflow suggested I speak to László Rigler, the man behind Trails of Budapest. Rigler grew up in a family of hikers. After he finished his law degree, he took a job in the public sector. Eight years later, bored, he took a course to become a tour guide and started work for a Budapest bicycle tour company. He would tell his guests how much

It took us maybe 10 minutes to drive to Hármashatár, but if you’d prefer to go by public transport, the number 65 bus starts at District III’s Kolosy tér and drops you at the bottom of the hill outside the traditional Fenyőgyöngye (Pine Pearl)

he loved hiking in the Buda hills. Often, they’d tell him they’d love to go hiking. When Rigler searched online for hiking tours of the hills, he discovered that there were none. He started Trails of Budapest eight years ago, found his niche, and, as he says, “Became a pioneer in Hungarian tourism.”

Today, Trails of Budapest offers a wide variety of nature walks and hikes in Budapest and its surrounding areas, ranging from shorter, easy walks to allday, challenging hikes. There’s even a walk for families with young kids.

“These are walks in true, authentic nature just 20 or 30 minutes from the city,” Rigler says. “We walk in the Buda Hills. My favorite walk is ‘Highest Point Hike,’ but I’ve just launched the ‘Canyons and Panoramas Hike’ which takes guests out of Budapest.”

As far as Rigler is concerned, “the Buda Hills are for everyone, not just avid hikers. Visiting Budapest in sneakers, no problem. As long as it’s not raining and they’re not white.”

restaurant. From there, it’s a short walk up the hill to the point where the Loop begins. You can find the Hármashatár Mountain Panorama Loop at alltrails.com. If you want to discover Rigler’s collection of hikes, go to trailsofbudapest.com

Péter Sziámi Müller on Freedom, Festivals, and the Long Arc of Change

The co-founder of Sziget and a seminal voice of the bands URH, Kontroll Csoport, and Sziámi, appears in the new documentary “Fesztiválország” (“Festival Country”), which traces Hungary’s festival culture from its early days to the present. He tells the Budapest Business Journal how the feeling of freedom has shifted (and how it hasn’t), how Sziget took shape, and why Hungary became a festival heavyweight.

BBJ: What was it like to watch decades of festival history in one film, history you helped shape? Were there elements that particularly moved or surprised you?

Péter Sziámi Müller: I found the film to be a good and valid summary. I spoke at length during the shoot, and I’m glad the essence made it in. If you’re interested in the subject, the film shows how I, and how we as organizers and dreamers, view the whole process.

BBJ: The film also explores the “feeling of freedom.” You felt that liberation at underground shows in the 1980s “forbidden era,” and later at Sziget. How would you compare young people’s sense of freedom then and now? Can a festival today be as liberating as an URH or Kontroll Csoport concert was during the “tiltott–tűrt–támogatott” (3T or “forbidden–tolerated–supported”) years?

PSzM: The basic experience is the same. Desires and anxieties are passed down from generation to generation. Festivals are excellent release valves; of course, they change with time like everything else, but their anxiety-reducing and desirestirring (and desire-satisfying) function remains the same.

BBJ: In the 1980s, the 3T system and cultural policy decided who could succeed. What was it like to exist as a “forbidden” musician? Do you see parallels today, hidden constraints or pressure, political or market-driven?

PSzM: The situation is radically different. There is no prohibition; tolerance is total. Support, however, is selective, which is natural, if not always acceptable. That’s cultural policy for you. And frankly, it would have been funny if we had asked those in power (especially Péter Erdős, who, due to a misunderstanding, hated us from the bottom of his heart) for support to perform or record our utterly system-incompatible songs, something that by now has become common practice.

BBJ: As frontman for your bands, you voiced strong social messages. Which of the older songs feels most current today and still hit home for young audiences?

PSzM: The answer shouldn’t come from me; it might not be valid. What is clear, though, is that certain songs are still brought back, covered, played in combative situations, nostalgically, or as freshly topical, and sung with us. We keep the best URH/Kontroll/ Sziámi pieces on the set list.

a free bus. Eighty guests and the band’s 20-person family crew vacationed there for a week, for HUF 3,000 with everything. It was wonderful. The next year, without really advertising, just word-of-mouth, several thousand people signed up for those 80 spots. The question arose: what do we do with them? We thought we’d go to a festival with them, but really, there was only EFOTT (National Student Festival), where we couldn’t take minors or families (sometimes with babies). So, we had to organize our own festival. That became Sziget, called Student Island (Diáksziget) in the first years. In ’93, we still had the Sziámi Vacation; from there, we went with the vacationers to Óbuda Island under the motto “We need a week together!” We believed the band’s roughly 10,000-strong core would be there; we were stunned when 43,000 showed up. We didn’t expect that, nor the later explosive growth. Over time, Sziget took on its current, mature, business-based existence; inevitable, if it wanted to survive those early years of heavy indebtedness.

BBJ: The film argues that Hungary has become a festival powerhouse. What made Sziget and other large festivals work? Compared to other countries, what makes the Hungarian atmosphere or model unique?

BBJ: Take us back to the origins of Sziget. How did the idea arise? What were the initial goals and biggest early challenges? Did you imagine it would still be thriving 30 years later as a major international event?

PSzM: I never had entrepreneurial ambitions; I always did what I loved, and when something turned out spectacular or large-scale, it came from that, often from friendships, loves, loose, interest-free togetherness. As the bilingual book “Sziget Roulez!” says, “Sziget came out of Sziámi’s songs.” That’s basically true, but none of it would have become what it did without the others, above all, my friend Károly Gerendai, his work and ambition. Around 1992, the band, then called Sziámi és az Első Osztályú Vidéki Srácok [Sziámi and the First-Class Country Boys], became incredibly popular; from a “village leisure band,” it grew into a group playing soldout shows every day. After the regime change, a generation felt a bit orphaned: community centers closed, parents were starting businesses, and many good young faces looked to us for support. I decided to bring the most sensitive fans and friends together and organized the first “Sziámi Vacation” in Zala, where we lived. We managed to get the Lower Forest camp from the Zalaegerszeg municipality. I set up a bunch of programs, food, concerts, a theater workshop, beach entry, and

PSzM: For the West, we sit at the edge of Eastern exoticism, somewhat even today. It’s an ideal cocktail: a remnant hippie character combined with professionalism acquired over time; a sense of freedom, quality, and safety that remains attractive. Hungarian festivals are often strongly multicultural and carry more “spiritual” content than an average music festival. Perhaps it’s all of that together. BBJ: From a business standpoint, how big a venture was Sziget? In those first Student Island years, was profit even part of the picture, or was it mission and enthusiasm? How much has the economic dimension changed over 30 years? Was it inevitable for a mission-driven festival to become an international business?

PSzM: Quite clearly, yes. If we hadn’t climbed out of the brutal indebtedness of the early years, there would be no Sziget now. [.…] The change was inescapable; [.…] Sziget is not the same, and yet, in essence, it is. People bring people together. For those who are there, it’s unambiguously a euphoric experience. The colleagues still do it with soul, which transfers to the audience and makes it attractive; that, in turn, attracts the industry’s big players as well.

BBJ: The documentary quotes Károly Gerendai as saying that David Bowie played Sziget in 1996 for around USD 100,000; today, a similar headliner may command USD 1.5 million–2 million. Were those fees exceptionally high back then, and does it still make business sense to book such stars now, or is it more about prestige?

PSzM: It seems it can make sense, although I personally never dealt with that side of things.

BBJ: Do you miss organizing festivals in your everyday life? Or, on the contrary, was it liberating to step out of your business role and focus entirely on creative work again?

PSzM: The second is the right answer.

Teaching the Kodály Method to Next Generation Musicians

In the center of the city of Kecskemét (90 km southeast of Budapest by road), a Franciscan monastery building constructed in the early 18th century is home to the Kodály Institute of Music Education, dedicated to preserving and sharing the teaching methodology of the man it is named after.

Zoltán Kodály (1882-1967) was a Hungarian composer, ethnomusicologist, music pedagogue, linguist, and philosopher renowned for his research on folk songs, his method of music education, and his compositions that blend European and Hungarian influences.

In 1935, along with Ádám Jenő, Kodály developed a long-term project in music education in his hometown of Kecskemét. “Let music belong to everyone,” he declared, calling for the introduction of widespread music education. In 2016, the method was declared part of the Intangible Cultural Heritage.

Since September 2023, the director of the institute has been the singer Judit Rajk. She has been a professor at the institute, teaching voice training, since 2013. Having graduated from the Ferenc Liszt Academy of Music in Budapest, Rajk received her doctorate in 2009 and is an associate professor in the Church Music Department;

Culture

in Brief News

HUF 20 bln Renovation of Gellért Baths Begins in October

The renovation of Budapest’s Gellért Baths is set to begin this month, according to operator Budapest Spas and Thermal Baths (BGYH). The project, which aims to enhance the historic landmark’s energy efficiency while preserving its architectural and artistic integrity, is projected to cost HUF 20 billion. The baths, originally opened in 1918 and last renovated in the 1970s, are expected to reopen in 2028.

Janne Teller Guest of Honor at Budapest Int’l Book Festival

Romania is the featured country, and Danish author Janne Teller the guest of honor at the 30th Budapest International Book Festival, which runs from October 2-5 at the Balna Center of Military Culture, the organizers announced on Sep. 25. According to state news agency MTI, the festival is expected

she was habilitated (receiving the highest academic qualification) in May 2021. She teaches solo singing, methodology and vocal history.

Rajk is an Artisjus Awardwinning performer of 20th-century and contemporary vocal literature, as well as an internationally acclaimed interpreter of Kodály’s vocal art. As a concert singer, she is renowned for her exceptionally deep contralto voice and her diverse repertoire, which encompasses early Gregorian chants, lieder, oratorios, and contemporary pieces.

About the Kodály Institute

The Kodály Institute has been operating since 1975, initially independently, but since 2005 as a department of the Liszt Academy of Music (celebrating its 150th anniversary this year). Its primary mission is the teaching and further development of the Kodály music pedagogy method at the international level. International students, who typically come from Greece, Japan, South Korea,

to draw a record 162 exhibitors, host 118 programs, and more than 300 book-signing events. Teller will receive the Budapest Grand Prize. The Romanian Ministry of Culture, in cooperation with the Budapest Institute of Romanian Culture, will present the country’s diverse literature in a separate pavilion through an array of programs, Katalin Gál, president of the organizing Hungarian Publishers’ and Booksellers’ Association, told a press conference. The Budapest French Institute will also announce a new prize for young literary translators from French to Hungarian, Gál added.

130 European Museum

Directors Meet in Budapest

More than 130 museum directors from 32 European countries gathered in Budapest at the invitation of the Money Museum to discuss the future of European museums, according to a Facebook post by Deputy State Secretary for Public Collections and Cultural Development Máté Vincze on Sep. 26. Vincze noted that the European Museum Academy had previously honored the Money Museum with the prestigious

Culture Matters

A regular look at culture issues in Hungary and the region

Driving Force

“As a university professor and director of the Kodály Institute, it is less about individual success and more about working for the university

Spain, the United Kingdom and the United States, can earn a bachelor’s degree in general music studies (with an emphasis on Kodály’s method), a master’s in Kodály music pedagogy, or take part in a one-year non-degree course, where they learn the theoretical and practical techniques of the Hungarian music education concept.

The monastery that houses the institute was built in the Baroque

DASA award, citing both Hungary’s significant investments in public collection infrastructure over the past 15 years and the exemplary work of Hungarian museum professionals. “It is natural that we Hungarians are proud of the achievements of our museums, but it is always gratifying when others recognize this as well,” he said.

World Press Photo Exhibit Opens at the Biodom

The World Press Photo exhibition has opened at Budapest’s Biodom, according to a press release. Opening the event, Mayor of Budapest Gergely Karácsony said, “The press photo does not lie, does not take a position, does not distort, it only reveals the reality of the world to us.” He emphasized that the images were valuable not only for their content but also for their form, adding that the exhibition showcases the courage and perseverance of those behind the lens. Karácsony also highlighted a parallel exhibition titled Budapest 75, which commemorates the 1950s through contemporary images from the Fortepan public archives and news excerpts.

that must drive me forward,” she tells the  Budapest Business Journal “When I took over the leadership of the institute, the Liszt Academy was going through very difficult times. There was fierce conflict over the position of rector, and our work was subjected to unjust and harsh criticism from the supervising ministry, while at the same time, we were doing our job, surpassing world-renowned music institutions on the QS ranking list,” she recalls.

“This year we finished in 12th place. Moreover, since then, we have elected a new rector, pianist Gábor Farkas. My determined goal at the Kodály Institute, in addition to the already successful BA and MA programs, is to launch our doctoral program in English.”

In 1989, she met her husband, the architect and set designer László Rajk, with whom she has shared 30 years of creative work.

Following the election of writer Árpád Göncz as President of the Republic of Hungary in May 1990, she briefly served as his personal secretary.

style between 1700 and 1736, adjacent to St. Nicolas’ Church. The structure has undergone several transformations since, but it acquired its present form between 1973 and 1975. Architect József Kerényi prepared those plans in compliance with the strict regulations of the Monuments Supervision Authority. The institute was ceremoniously renovated and reopened in 2024.

Washington-based Hungarian Scouts Mark 50th Anniversary

The Hungarian Scouts celebrated the 50th anniversary of their activities at the Hungarian Embassy in Washington, D.C., with local and nationwide scout leaders attending the jubilee event of the 4th Bátori József Scouting Group on Saturday evening, local time. According to a statement issued on Sep. 29, former leaders and the first members who joined the group as children in 1975 were also present. Team leader Éva Domotorffy noted that the community currently has 66 active members. She recalled that the group began in a family home, and now operates from its own scout house and campsite in nearby West Virginia. Domotorffy said that assimilation, shifting family dynamics, and the pressures of modern life were among the challenges faced by scouting organizations in the diaspora. Still, she emphasized that community-building allows individuals to become “responsible, thoughtful and interconnected,” while remaining “true to their roots and prepared for the future.”

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

Hungarian-French Chamber of Commerce and Industry (CCIFH)

The CCIFH and the Swedish Chamber of Commerce in Hungary invite guests to a high-level conference and roundtable on the rapidly growing space economy, a sector that is no longer the exclusive domain of astronauts and rocket scientists, but a genuine business opportunity for innovative companies across various industries. Whether you are already active in the field, exploring supplier roles, or seeking to position your company as an innovation partner, this is the perfect platform to understand how the space sector is reshaping business models and market opportunities worldwide. The event offers exclusive insights from decision-makers shaping the Hungarian and European space industries, as well as direct access to potential partners, suppliers, and innovation leaders. Keynote Speakers include Orsolya Ildikó Ferencz, Ministerial Commissioner for Space Research; Szabolcs Szolnoki, Deputy Secretary of State for Technology, Space and the Defense Industry; Tibor Kapu, Research Astronaut (invited); and István Sárhegyi, CEO at 4iG Space & Defence. A roundtable will feature highlights from the HunSace Cluster, HUN-REN research network, 4iG Group, Aedus Space Ltd., and Sigma Technology Hungary Ltd. on the challenges and opportunities ahead.

• When: Thursday, Oct. 16, 2025, 9 a.m.-noon • Where: HUN-REN Headquarters, Alkotmány u. 29, 1054 Budapest

American Chamber of Commerce in Hungary (AmCham)

AmCham Hungary and the Hungarian Investment Promotion Agency have been organizing the Business Meets Government Summit since 2015, establishing it as a leading advocacy forum in Hungary. Now in its 11th edition, the summit will bring together more than 150 leaders from business, government, academia, and leading think tanks to discuss the shifting global economy, address emerging security challenges, and explore how Hungary can strengthen its role and secure a more competitive position in this evolving landscape. This year’s program will feature highlevel policy dialogues, expert keynotes, and interactive breakout sessions examining competitiveness through the lenses of the business environment, healthcare, and the intersection of AI and sustainability. A highlight of the event will be the unveiling of AmCham’s new Policy Agenda 2026–2030, a strategic roadmap designed to enhance Hungary’s long-term growth and position.

• When: Thursday, Oct. 16 • Where: Kempinski Hotel Corvinus Budapest, Erzsébet tér 7-8, 1051 Budapest • Fee: Members HUF 69,990 + VAT/person; non-members: HUF 79.990 + VAT/person

British Chamber of Commerce in Hungary (BCCH)

The BCCH invites guests to its next CEO Dinner, this time featuring Steve Johnson , vice president of exploration at MOL Group. The oil and gas giant will be well-known to everyone as a leading petrochemical company in the CEE region, as well as being one of Hungary’s largest companies. Johnson is a global energy executive with extensive international technical experience, having held senior leadership roles in Equinor and Shell, as well as MOL Group. He has worked on four continents and in six countries throughout a 25-year oil and gas career. He holds a doctorate in geology and is recognized for his expertise in promoting psychological safety for high-performing teams, value creation, energy security, future energy scenarios, and the role of geoscience in driving societal improvements. During the event, guests will enjoy the customary three-course dinner with wine and welcome drinks while hearing the views of one of the oil industry’s foremost professionals on recent sector developments, current industry affairs, and business opportunities.

• When: Thursday, Oct. 30, 6-8 p.m. • Where: W Hotel, Andrássy u. 25, 1061 Budapest • Fee: members HUF 29,000 (plus VAT); non-members: HUF 39,000 (plus VAT)

Canadian Chamber of Commerce in Hungary (CCCH)

The CCCH will host its next Business Breakfast and Geopolitical Forum under the theme “Uncertainty and Opportunity: Economic Growth in a Changing Geopolitical Landscape.” The half-day event will bring together distinguished economists, business leaders, and policy experts for an in-depth exploration of today’s economic and security challenges. The program will open with welcoming remarks from Nicholas Sárvári, president of the CCCH and managing partner at CNS Risk, who has long been a leading voice in business ethics, risk management, and transatlantic cooperation. The keynote will be delivered by György Surányi , former governor of the National Bank of Hungary, on “Europe in the Midst of a Geopolitical Storm: Economic Outlook Beyond 2025.” His insights, shaped by decades of experience in finance and international policy, will set the tone for a thought-provoking discussion. A panel session, moderated by former finance minister Csaba László, will follow, addressing topics such as EU competitiveness, Central and Eastern Europe’s position between predictability and security risk, transatlantic trade dynamics, and the global role of Canadian and Hungarian businesses. Confirmed panelists include Gergely Tardos (OTP Bank), Orsolya Nyeste (Erste Bank), Ferenc Kaiser (National University of Public Service), Ádám Maróti (Hold Asset Management), and Gábor Lukács (Telcotrend). The event will close with a forward-looking session led by Ádám Maróti , portfolio manager at Hold, offering practical strategies on “How to Invest in Times of Uncertainty.”

• When: Thursday, Oct. 9, 8 a.m.-noon.

• Where: Akadémia Offices, Akadémia utca 6, 1054 Budapest

• Fee: Members HUF 20,000; non-members HUF 32,800

Swedish Chamber of Commerce in Hungary (SCCH)

The SCCH recently visited Ikea Soroksár, exploring how AI and digital solutions are shaping the future of business. Nordconn International shared insights on the big AI dilemma: balancing short-term impulses with a focus on long-term value for people’s lives. New data and strategies revealed how companies can grow sustainably in 2025 and beyond. With 30 business leaders in the room, two things stood out: 1) Business efficiency and human enablement must go hand in hand in digitalization; and 2) It was hard not to feel like a kid again when the robots started moving! Guests also learned about IKEA’s four-year project in Soroksár, which has led to the implementation of operating robots in the warehouse, as well as how the store floor plan was designed with the help of a digital twin. The goal was never to reduce the workforce; instead, a special focus was given to reskilling and moving people into new roles across the organization. The program concluded with a guided warehouse tour, offering guests a firsthand look at how technology and robotics are transforming work, serving people in more innovative and sustainable ways.

Belgian Business Club in Hungary (Belgabiz) Belgabiz invites guests to its monthly networking event: “Flight Troubles: A Practical Guide to Compensation,” with a presentation by Visegrad+ Legal. Have you ever experienced a delayed or cancelled flight? Or arrived at your destination only to find your luggage missing? Join us for an engaging networking evening where Visegrad+ Legal will share practical guidance on how to claim compensation for flight delays, cancellations, or lost baggage. The MaMaison Hotel Chain Bridge provides the perfect setting for this professional yet friendly gathering. After the presentation, enjoy a rich buffet dinner with fellow participants.

• When: Oct. 9, 6-9 p.m. • Where: MaMaison Hotel Chain Bridge, Mérleg u. 6, 1051 Budapest • Fee: members, free; non-members HUF 21,000 (no VAT), includes participation, dinner, and drinks.

German-Hungarian Chamber of Industry and Commerce (DUIHK)

The DUIHK invites guests to its debut German-Hungarian Business Forum in Debrecen on Nov. 5. This event is organized in cooperation with the City of Debrecen. Experts from both countries throughout the value chain will discuss: “Made in Germany 2.0: An Economic Engine on a new Track?” exploring the outlook for the German economy; Industry in dialogue: The strategies employed by the three German premium car manufacturers that now produce in Hungary Audi, BMW, and Mercedes; Agility and Innovation are Key: discussing the supplier strategies of German companies in a challenging new business environment; SMEs on the rise: The strategies and success models of regional companies from Debrecen, Tata and Pécs; and “Window on Germany: Bavaria” a high-level discussion about strategies for success in economic development with Hipa and Bavarian counterparts.

• When: Wednesday, Nov. 5, 8 a.m.-3:30 p.m. • Where: Kölcsey Központ Debrecen, Hunyadi utca 1-3, 4026 Debrecen • Fee: members HUF 35,000 (+VAT); non-members HUF 55,000 (+VAT)

Italian Chamber of Commerce for Hungary (CCIU)

The CCIU has announced two free business events in Budapest, designed explicitly for trade operators, professionals, and those dedicated to the excellence of “Made in Italy.” On Monday, Nov. 3, the CCIU will host the Italian Wine and Spirits event. Several renowned Italian wineries will present their selections, offering an unmissable opportunity to taste outstanding wines and discover new producers in an atmosphere of conviviality and authentic Italian taste. On Nov. 7–8, the spotlight will turn to the Jewelry Workshop. More than 20 companies from across Italy will showcase their creations, a perfect combination of artisanal tradition and innovation. Each exhibitor brings unique characteristics that reflect the spirit of its founders, making the event an exceptional occasion to meet with manufacturers and discover the best business opportunities. Those interested in attending or receiving more information should contact the CCIU.

Swiss-Hungarian Chamber of Commerce (Swisscham)

Swisscham Hungary recently had the pleasure of hosting a reception at the stunning Art Nouveau ResoArt Villa to welcome Ambassador Alexander Renggli and Deputy Head of Mission Daniel Cavegn at the beginning of their mission in Hungary. The evening provided an excellent opportunity for Swisscham members and partners to meet the newly arrived diplomats in person, engage in conversations, and exchange perspectives on the future of Swiss–Hungarian cooperation in business, culture, and innovation. In addition to fostering valuable connections, guests enjoyed an exclusive cultural experience: a private tour of a remarkable Zsolnay collection, showcasing Hungary’s rich artistic heritage. The culinary specialties of Zenobia Restaurant complemented the evening.

German–Hungarian Business Forum 2025

Shaping Our Common Future in a Changing Economy

Kölcsey Centre Debrecen

Hunyadi utca 1–3, 4026 Debrecen

Germany and Hungary are two strong industrial nations whose cooperation is rooted in centuries of shared history. Today’s economic and geopolitical challenges are testing companies worldwide. Germany, as the economic engine of Europe, is at the center of international attention particularly regarding the economic policy measures being adopted, the new strategic directions emerging, and the economic objectives being prioritized.

A key question is how these measures affect manufacturers and suppliers in Hungary, and what

Program

8:30–9:00 ARRIVAL AND REGISTRATION

9:00–9:20 WELCOME ADDRESSES

• Dr. Róbert Keszte, President, German–Hungarian Chamber of Industry and Commerce

• Dr. László Papp, Mayor of the City of Debrecen

• Julia Gross, Ambassador of Germany to Hungary

9:20–9:45 OPENING KEYNOTE

“Made in Germany 2.0 – The Engine of the Economy on a New Track” Future prospects of the German economy

• Thomas Hüne, Representative, Department of Research, Industry and Economic Policy, Federation of German Industries (BDI)

9:45–10:45 PANEL DISCUSSION I

“Industry Dialogue: Strategies of German Premium Car Manufacturers in a Changing World”

Participants:

• Michael Breme, CEO, Audi Hungaria Zrt.

• Jens Bühler, CEO, Mercedes-Benz Manufacturing Hungary Kft.

• Hans-Peter Kemser, President & CEO, BMW Manufacturing Hungary Kft.

Moderator:

• Gábor Várkonyi, Automotive Journalist

November 5, 2025

10:45–11:15 COFFEE BREAK & NETWORKING

11:15–11:50 PANEL DISCUSSION II

“Agility and Innovation: Supplier Strategies in the New Economic Environment”

Participants:

• Péter Szabó, Managing Director, Schaeffler Debrecen Kft.

• Vinzenz Graßl, CEO, Schedl Group

• András Csató, Director of Economic and Government Relations, B. Braun Medical Kft.

Moderator:

• Róbert Ésik, Partner, Ernst & Young Advisory Ltd.

11:50–12:30 PANEL DISCUSSION III

“On the Road to Growth –Success Models and Strategies of Regional Enterprises and SMEs”

Participants:

• Zoltán Kocsis, Managing Director, Krones Hungary Kft.

• Szabolcs Fülöp, Managing Director, Trans-Sped Kft.

• Tamás Schwarczenberger, Managing Director, Güntner-Tata Hűtőtechnika Kft.

• Buda Zalay, Managing Director, Körber Hungária Gépgyártó Kft.

Moderators:

• Ilona Balogh, Deputy Managing Director, DUIHK

• Csaba Juhász, Managing Director, Harro Höfliger Hungary Kft.

www.ahkungarn.hu/ de/events-details/ deutsch-ungarischesbusiness-forum-2025/ online-registrierungdeutsch-ungarischesbusiness-forum-2025-indebrecen-05.11.2025

strategies companies are implementing to strengthen their international competitiveness and resilience in response. The German–Hungarian Business Forum aims to address these questions. It is jointly organized by the German–Hungarian Chamber of Industry and Commerce (DUIHK) and the City of Debrecen. Leading economic experts from Hungary and Germany, major corporations, as well as small and medium-sized enterprises have been invited to the forum. As the closing highlight, we will showcase Bavaria’s successful cluster initiatives and discuss proven methods of economic development in a Hungarian–Bavarian panel discussion.

12:30–13:30 LUNCH BREAK & NETWORKING

13:30–13:50 EXPERT PRESENTATION

“A Window onto Germany: Spotlight on Bavaria” Cluster policy and innovation project management Bavarian experiences

• Heiko Bartschat, Head of Cluster and Networks Office, Bayern Innovativ GmbH

13:50–14:30 PANEL DISCUSSION IV Hungarian and German Case Studies: International Innovation Projects Participants:

• Dr. Andrea Horváth, Managing Director, Debrecen Automotive Cluster

• István Joó, CEO, HIPA Hungarian Investment Promotion Agency

• Zoltán Pécskay, Managing Director, EDC Debrecen Nonprofit Ltd.

• Dr. Markus Wittmann, Ministerial Director, Bavarian Ministry of Economic Affairs, Regional Development and Energy

Moderators:

• Barbara Zollmann, Managing Director, DUIHK

• Tünde Kis, Director, PwC Hungary

14:30–14:40 CLOSING REMARKS AND SUMMARY

14:40–15:30 NETWORKING

Language of the event: Hungarian, German and English with interpretation.