Economic Risk in Hungary and Other Countries Spooking Investors
Matthew Bandyk

Despite federal spending consuming 27.2 percent of GDP, the United States maintains a Aaa rating. But you can't say the same about Hungary and many other countries in both the developed and developing world where continued fallout from the economic crisis is hurting their credit ratings. As a result, investors have viewed the economic situations in these countries as increasingly risky bets.

Magyar Telekom eyes Romanias Siveco to boost IT
Hungarian telecoms group Magyar Telekom is in talks to take over Romanias Siveco in a bid to further enhance its IT services Portfolio Hungary reported on 1 March.  High language and IT skills coupled with low costs makes Romania a new haven for outsourcing such as call centres help desks...

Spar Hungary turnover up 6.2% yr/yr in 2009
The Hungarian unit of Austrian retail chain Spar generated consolidated sales of HUF 397.3 billion in 2009 up 6.2 % year on year. According to the parent companys data Spar Hungary posted 1.47 billion Euro turnover last year 4.7 % more in Euro terms than in the base period Portfolio...

Elextrolux Lehel revenue declines 8.8% in 2009
Electrolux Lehel the Hungarian unit of Swedish white-goods maker Electrolux generated revenue of HUF 177.5 billion 658.42 million euros in 2009 down 8.8 % from 2008 unit managing director Janos Takacs said on February 23 Budapest Business Journal reported. Takacs said Electrolux Lehel targets revenue of HUF 210 billion in...

Synergon Q4 profits fall 32% as margin narrows
Hungarian IT company Synergons fourth-quarter net profit fell 32 percent to HUF 207 million from the same period a year earlier as revenue dropped at a faster rate than costs the companys consolidated IFRS report showed on February 23 Budapest Business Journal reported.Revenue dropped 12 percent to HUF 5.467 billion...

Pannon GSM to lay off 250 people
Telenor unit Pannon GSM Hungarys second-biggest mobile telephone service provider plans to lay off 250 people including 200 employees and 50 contracted workers the company said early last week Portfolio Hungary reported. Mobile voice and data provider Pannon part of Telenor Group one of the worlds largest mobile operators has...

Dutch-owned investor to build HUF 7 bln hotel
Dutch-owned Hungarian company Grontmij Canor plans to build a HUF seven billion four-star hotel in Siklos Budapest Business Journal reported on 16 February. Grontmij Canor has bought a plot for the hotel for HUF 120 million from the local council. It plans to open a 200-room hotel and a shopping...

Alpiq to build 370 million euros CCGT plant
The Hungarian unit of Switzerlands largest energy services provider Alpiq is to build a 400 megawatt capacity plant in Csepel near Budapest in a 370 million euros investment project by 2015 Alpiq Csepel Kft. CEO Gabor Briglovics said on February 1 Portfolio Hungary reported. Alpiq Csepel renamed from Atel Csepel...

Deal signed with Russia over planned gas pipeline
The state-owned Hungarian Development Bank set up a joint venture with the Russian energy giant Gazprom in Budapest on 29 January laying the groundwork for the construction of the local stretch of the planned South Stream gas pipeline official said. Russia hopes South Stream - seen as a rival to...

Mid-Europa completes bid for Hungarys Invitel
Mid Europa Partners has announced on 25 January that it has completed its tender offer to purchase any and all of the outstanding ordinary shares par value 0.01 euros per share Invitel Shares and any and all of the American Depositary Shares each representing one Invitel Share Invitel ADSs of...

MAV state railway orders 80 mln Euro Bombardier
Hungarys state-owned railway company MÁV has placed an order with Bombardier Transportation for 25 Bombardier Traxx P 160 locomotives valued at about 80 million euros USD 112 million Portfolio Hungary reported early last week. The contract also includes an option for a further 25 locomotives. The delivery of the first...

RD projects worth 45 mln euros underway
Hungary is to be the host of two research and development projects in the vehicle industry that will bring HUF 12 billion 44.8 million euros to the country and create more than 200 jobs Portfolio Hungary reported on 19 January. There are two RD capacity boosting projects underway in the...

EBRD to acquire stake in Hungarian wind farm
European Bank for Reconstruction and Development EBRD said its board of directors approved an equity investment up to 125 million Euro in the form of capital increases in Iberdrola Renovables wind farm units in Hungary and Poland Port folio Hungary reported on 18 January. Pending the completion of legal documentation...

Hungarian arm of Lasselsberger under liquidation
The Hungarian unit of Austrian buildings materials maker Lasselsberger is under liquidation proceedings Portfolio Hungary reported on January 18. The head of the company has declined to comment. Liquidation proceedings have been initiated against Lasselsberger Hungaria Termelo es Kereskedelmi Kft. the flagship Hungarian unit of the Austria-based Lasselsberger Group one...

Hungarian court rules Emfesz sale unlawful.
Mabofi won its case in the Metropolitan Court of Budapest overturning the approval by the Hungarian Energy Office MEH of the fraudulent transfer of Emfesz to Rosgas Mabofi said in a press statement on 20 January. We are delighted that the Hungarian Courts have now confirmed what we have always maintained...

Opposition denies plan to restructure media
Hungarys Centre-right opposition party Fidesz recently denied that it intends to close the state news agency MTI and downsize other public media if it takes office. The news website index.hu citing unnamed part sources reported earlier in the day that Fidesz planned to close MTI and amalgamate two state television channels...

PannErgy conducts capital raise in Polifin
Alternative-energy company PannErgy has conducted a HUF 1.675 billion 6.23 million euros capital raise in its 100% owned geothermal unit PannErgy Polifin PannErgy announced on January 5 Budapest Business Journal reported. The measure will increase Polifins registered capital to HUF 1.7 billion from HUF 25 million. PannErgy announced on November 9...

US ethanol giant to expand to Hungary
Fagen Inc will kick off the new year by using their torches to fabricate parts destined for an ethanol plant in Hungary US news site Startribune.com reports. Ron Fagen the CEO of Fagen Inc put this western Minnesota town on the national map by building 47 ethanol projects across the...

Audi plant crops winter downtime due to surge in orders
Audi Hungaria one of Hungarys flagship industrial companies and major employers has seen a sudden increase in new orders in November and December which prompted the management to make the winter downtime a week shorter than planned Portfolio Hungary reported on 28 December. Audi Hungaria has approved plans to keep...

Govt places limits on retail mortgage loans vehicle leases
The Hungarian government approved at its last meeting of the year a decree that places limits linked to lenders own assessments of borrowers ability to repay on retail mortgage loans and vehicle leases the Government Spokesmans Office said MTI reported on 28 December. The decree will require lenders from 1...

Center for Zeiss lens production
As a result of recently completed investments worth 1.7 million euros Carl Zeiss Vision Hungarys Mateszalka plant has become the centre for the production of Zeiss glass lenses Budapest Business Journal reported on 7 December quoting president and CEO Ilona Radics. The Mateszalka unit is the only Zeiss plant in...

Chinas Xiamen wins Volan bus tender
Chinas Xiamen King Long United Automotive Industry has won a tender to deliver 60 vehicles to Hungarys state-owned long-distance bus company Volan with a bid of 9 866 000 Euro or 164 000 euros per bus the latest issue of the Public Procurement Gazette revealed Budapest Business Journal reported on...

Icelands Toyota dealership sold to cover debts
The Toyota dealership in Iceland will be sold to repay the vast debts held by its owner Magnus Kristinsson at Landsbanki. The banks resolution committee is also con­te­mplating selling other companies in Kristinssons ownership the Iceland Review reported early last week. Kristinsson is the owner of some holding companies in Iceland...

Radio ruckus amplifies in Hungary
The Chairman and CEO of Emmis Communications the owner of Hungarys Slager Radio has denounced the frequency authoritys tender procedure that took away the radios license it held for 12 years as politically corrupt. Emmis has decided to withdraw from Hungary Portfolio Hungary reported on November 24. In protest over...

TriGranit opens first phase of Krakow project
Bonarka City Center the largest urban centre in southern Poland built by Hungarys TriGranit has opened its first phase: the shopping and entertainment centre Portfolio Hungary reported on November 20. The multi-functional urban centre is being built on around 19 hectares of post-industrial land in the Podgorze district of Krakow....

Hungarys Magyar Telekom sells Bulgarian unit for € 5 m
Hungarys Magyar Telekom has announced on November 17 that it has sold Orbitel its fully-owned Bulgarian subsidiary to Spectrum Net AD for five million Euro Portfolio Hungary reported. Magyar Telekom decided to exit the Bulgarian alternative retail telecommunication business and focus its operations on businesses where it sees more lucrative...

Hungarys MOL plans a gas plant in Pakistan
Hungarian energy firm MOL plans to build a new gas processing plant in Pakistan at a cost of USD 30 to 50 million chief executive Gyorgy Mosonyi said on 16 November. He told the state news agency MTI the plant would process up to 20 000 barrels of gas condensate...

Hungary does not need next tranche of IMF cash - FM
Hungary does not intend to draw down the next tranche of its International Monetary Fund rescue loan Finance Minister Peter Oszko told reporters on November 16 DPA reported. Hungarys budgetary balance is among the best in Europe Oszko said speaking to reporters after the International Monetary Fund completed its fourth...

AAA Auto remains in the black in Q3 profit dips 44%
Prior to its regulatory financial results announcement AAA Auto Group NV has on November 9 reported selected financial highlights for the third quarter 2009. The listed used car dealership chain has managed to post a profit again after Q2 Portfolio Hungary reported. The results confirm a positive development noted during...

Egis profit warning due to strong forint hopeful on Turkey
Hungarys listed drugs maker Egis issued a profit warning last week as the consensus forecast of analysts in a Portfolio.hu poll considerably exceeded the companys actual profit. Chief Financial Officer Laszlo Marosffy said the bulk of the HUF 2.5 billion difference was mainly caused by a HUF 1.8 billion headwind...

EU launches probe into Hungarian govt subsidy for Audi
The European Commission has opened a formal investigation into Hungarian aid for an investment project of Audi Hungaria Motor Kft. in its existing plant in Gyor Portfolio Hungary reported early last week. Hungary intends to subsidise the installation of new high-tech engine production lines for new generation engines and engine components...

GE proposes job cuts of 2 570 in Hungary
General Electric could lay off 2 570 workers at its Hungarian lighting division over the next 2 years the US-based maker of electrical products and jet engines announced early last week as cited by Deutsche Presse Agentur dpa reported. The European director of GE Lighting Phil Marshall told reporters in...

BD to fire up €100 mln plant despite global crisis
BD Becton Dickinson and Company a leading global medical technology company is ready to start trial runs at its €100 million Hungarian plant Portfolio Hungary reported on October 27. BD launched the construction of its new state-of-the-art pre-fillable syringe manufacturing facility in Tatabanya 60 km northwest of Budapest on 30...

Raiffeisen to close 20 branches in Hungary
Raiffeisen Bank was to close 20 of its branches in Hungary early last week the bank said Real Deal reported early last week. All of the clients at the branches were informed earlier of the closures Raiffeisen Bank said. Raiffeisen Bank said in mid-August that it would close the 20...

Avermann-Holvex starts up HUF 100 mln glass recycling
German- and Hungarian-owned Avermann-Holvex has started operating a HUF 100 million glass recycling plant that was built with the support of EU funding in Csomor on the outskirts of Budapest managing director Laszlo Hollenda said on 20 October Budapest Business Journal reported. The plant can process a daily six to...

Penny Market adds new units seeks further growth
Discount grocery chain Penny Market has recently opened two new units in Hungary boosting the total number of stores to 176 Portfolio Hungary reported on 20 October. Penny Market is seeking to expanding its local presence targeting 250 units in the medium term. The opening of two new Penny Market...

Genesis Energy to soon choose company to build plant
Genesis Energy a Hungarian company that is building solar-panel plants in Hungary Spain and Singapore expects to select the company to build its plant in Spain Genesis board of directors member Damian Greco said at the companys EGM on October 20 Budapest Business Journal reported. Four companies are bidding to...

PM offers to mediate for Suez Environment
Hungarian Prime Minister Gordon Bajnai offered to mediate in a re-nationalization dispute between the local council of Pecs and the Hungarian unit of Frances Suez Environment at a meeting with the management of the French company in Paris Budapest Business Journal reported on 19 October. We have no legal means...

EBRD ready to aid Hungarys MAV
THE global economic and financial crisis has forced the European Bank for Reconstruction and Development EBRD to rethink its strategy and put off its exit from central and eastern Europe to beyond 2010 said Zsuzsa Hargitai head of the lenders resident office in Budapest. Under certain conditions EBRD would be...

IMF approves €54 million credit facility for Hungary
THE Executive Board of the International Monetary Fund IMF completed the third review of Hungarys economic performance under a programme supported by a $25.1 billion rescue package granted last autumn. The Board also extended the Stand-By Arrangement SBA by six months to 5 October 2010 to support the countrys economic...

Hungary to modernize bus fleet
HUNGARYS government aims to draw up a plan to boost domestic bus production in a bid to rejuvenate the countrys ageing bus fleet a move that could be a great opportunity for listed automotive group Raba as well Portfolio Hungary reported on 28 September. Hungarys bus fleet comprises around 9...

MÁV-Cargo opens €7.5 million container terminal in Romania
MÁV-CARGO the Hungarian unit of Rail Cargo Austria inaugurated a €7.5 million container terminal on 28 September in the Romanian city of Curtici near the border with Hungary Portfolio Hungary reported. MÁV-Cargo made the investment together with Polands Trade Trans group and Luka Koper of Slovenia said MAV-Cargo CEO Imre...

State railway company MAV asks for €325 million
Hungarys state-run railway company MAV requires 88 billion florint €325 million worth of loans this year to compensate for the curtailed government subsidy and to launch restructuring in the second half of 2010 Portfolio Hungary reported on 23 September. MAV wants to take out a medium-term loan to make up...

Visa and Mastercard fined for price fixing
The Hungarian Competition Authority GVH issued fines on 24 September of more than $10 million to Visa MasterCard and seven local banks for distorting the market through price fixing Deutsche Presse Agentur dpa reported. The GVH fined Visa and MasterCard 477 million florint $2.61 million each for their role in...

World Banks €1 billion loan for Hungary
The World Banks Board of Executive Directors has approved the €1 billion Euro $1.4 billion loan prepared as part of a $ 25.1 billion international support package financed jointly by the International Monetary Fund IMF the European Commission and the World Bank last autumn Portfolio Hungary reported on 23 September....

PannErgy research hits hot spring in SE Hungary
Albeit six months behind schedule publicly traded alternative power company PannErgy has successfully completed geothermic research in the town of Szentlorinc southwestern Hungary Portfolio Hungary reported on September 15. Drills in the research field hit a hot spring approximately 1 600-1 800 meters underground which may prove a major landmark...

MOL defers refinery upgrade Croatian project on track
Hungarian oil group MOL has rescheduled plans to build a new hydrocracker unit at the Szazhalombatta refinery which will be realized two years later than originally planned according to CEO Gyorgy Mosonyi Portfolio Hungary reported on September 14. The new target date for the new unit to become operational is...

Bidder for bankrupt NE Hungary steel giant identified
While the liquidation managers remain silent a source close to Miskolc-based bankrupt steel industry company DAM 2004 has divulged information on one of the two bidders interested in an acquisition Portfolio Hungary reported on September 14. According to wire service MTI this prospective investor is none other than Max Aicher...

IMF extends time limit on Hungarian rescue loan
The International Monetary Fund IMF has extended the deadline for Hungary to draw down the remaining tranches of a standby loan made available last autumn Hungarian Finance Minister Peter Oszko told reporters on September 7 Deutsche Presse Agentur dpa reported. The six-month extension until October 5 2010 means Hungary will...

Hungarys BorsodChem eyed by Chinas Yantai Wanhua
Rumour had it that either Russian or some Far Eastern investor was eying to acquire a stake in Hungarian chemical producer BorsodChem but a local daily claimed it is in fact a Chinese company that wants to buy a stake in BC Portfolio Hungary reported on September 7. The Chinese...

Slovak Hungarian premiers to meet as relations dive
Hungarian Prime Minister Gordon Bajnai is to meet his Slovak counterpart on September 10 in a bid to ease growing tension between the neighbouring countries the Hungarian government said on September 1. The announcement came as almost 1000 Hungarians demonstrated in front of the Slovak Embassy in Budapest as new...

Soros: In revolutionary times the impossible becomes possible
From the mid-1980s, Hungarian-born investor and philanthropist George Soros pumped hundreds of millions of dollars into foundations in Eastern Europe dedicated to promoting the idea of the "open society" and challenging the region's Soviet-backed regimes. Since then his Open Society Institute has evolved into a network of foundations and offices working in over 60 countries. Here, writing exclusively for CNN.com, he describes how the work of his foundations ultimately contributed to the collapse of communism.

Taking the plunge in Budapest
In Budapest, Hungary's vibrant capital, you can sample spicy paprika at the Great Market Hall (designed by Gustave Eiffel), sip coffee in a genteel turn-of-the-20th-century cafe and enjoy an affordable performance at the luxurious Opera House.

'In the length of a football season it was gone'
Richard Blystone was CNN's senior correspondent in Europe throughout 1989, witnessing and reporting on the momentous events of that year from the first protests in the communist Eastern Bloc to the fall of the Berlin Wall and revolution in Romania.

Thousands flock to D.C. for Cherry Blossom Parade
Thousands of visitors lined Constitution Avenue in Washington on Saturday morning for the annual National Cherry Blossom Festival Parade.

From the next Berlin to the new Acropolis museum
From the Czech Republic to Greece, the eastern part of Europe is changing so fast that you could visit every year and feel as if you've experienced something completely new.

2 killed in Hungary school shooting
A principal and teacher were killed Wednesday when a masked gunman opened fire in a private elementary school in Budapest, Hungary's capital city, police said.

Hungary: 4 Dead, 26 Injured in Train Collision
A local passenger train ran into the back of an long-distance train Monday near Budapest, killing four people and injuring 26

Eastern Europe: What's now
Forget lists of "What's Next" in travel. Eastern Europe is "What's Now." While it's catching up to the West -- becoming more modern, expensive and crowded -- Eastern Europe remains a great value. Here's what to expect this year.

Cuba slams Hungary for granting asylum to migrants
Cuba branded Hungary an "imperial accomplice" of Washington on Wednesday for granting political asylum to 29 Cubans who were held at the Guantanamo Bay U.S. naval base.

Hungary braces for more protests
Hungarian police said Wednesday that hard-core football hooligans had hijacked peaceful anti-government protests, but Prime Minister Ferenc Gyurcsany blamed opposition parties for a second night of violence.

Your e-mails: Hungary Riots
Early Tuesday, protesters across Hungary clashed with police and in Budapest stormed the headquarters of state television, responding with violence to a leaked recording that caught the countries prime minister admitting the government "lied morning, evening and night" about the economy.

Hungary police brace for more protests
Hungarian police said that hard-core football hooligans had hijacked peaceful anti-government protests but Prime Minister Ferenc Gyurcsany blamed opposition parties for a second night of clashes between rioters and police, saying they had failed to deliver on a pledge to calm protests.

Hungary: Rioters attack TV station
Protesters seized the headquarters of Hungary's state television network and set fires in and around the building early Tuesday after the country's prime minister admitted lying about the economy "throughout the past one and a half or two years."

Today's Buzz stories
Thieves in Hungary have stolen some tapes of the BBC's new prime-time series "Robin Hood," stalling completion of some of the 13 episodes, the broadcaster said.

Where the dollar is still king
As the dollar continues its slide against the euro - down almost 6 percent this year to a 1 year low - Americans thinking of traveling abroad might look beyond Paris, Rome or Madrid to destinations where the U.S. dollar remains strong.

Hungary plane crash: 42 dead
Recovery efforts continued Friday at the site of the crash of an AN-24 Slovak military plane, which was carrying 43 passengers when it crashed in the rugged terrain of northern Hungary.

Get involved: Europe
Send us your tips, words, photos and videos to thescene@cnn.com, or text "SCENE" plus your comments to +44 7786 20 40 60. Remember to include your name and the city/country where you live.

Best investments 2005: Bonds
Junk and foreign bonds beat going long. Risk: High-yield debt is more tied to economic ups and downs.

Powell to Hungary: Stay the course
U.S. Secretary of State Colin Powell thanked Hungary on Tuesday for the "steadfastness" of its commitment to the coalition in Iraq, saying now is not the time to get "weak in the knees" despite continued violence and kidnappings.

European Quest: Your views
For two weeks, Richard Quest and his team are traveling around countries about to join the European Union on May 1. We asked for your views. The following are a selection of your e-mails.

Our European Quest
Our trip started in Hungary, but we flew to the Austrian capital Vienna and drove across the border because it was a lot easier than flying anywhere else.

Hungary at Europe's crossroads
Folk-dancing nights in Budapest are a weekly event for Istvan Pal and his fellow musicians -- a reflection of the Hungarians' strong identification with their distinct language and culture.

Eastern Europe set for travel surge
With 10 more countries about to swell the ranks of the EU come May 1, the one business sector likely to get a boost is the travel industry -- both for leisure and business.

Leading Indicators WHAT'S HAPPENING THIS MONTH, AND WHAT IT MEANS.
BROADBAND Electrifying the Net

Hungarian Rhapsody AN UNEXPECTED ECONOMIC REVIVAL
Four years ago, the Hungarian economy was deep in crisis: Inflation was rampant, unemployment was rising, and trade and government deficits were mounting. Making things even worse was the fact that...

HERE'S A LESS RISKY WAY TO TAP SIZZLING FOREIGN MARKETS
The world's developing markets are suddenly as hot as the midday Brazilian sun. Mexican equities are up 15.6% so far this year (to Feb. 20), double the return for U.S. shares. Other Dow beaters inc...

FUNDS RUSH TO CASH IN ON EASTERN EUROPE'S BOOM
Lured by spectacular gains in markets such as Russia (up 105% in the first eight months of this year), Hungary (86%), Poland (77%) and the Czech Republic (26%), several new mutual funds have sprung...

THREE RISING STARS IN CENTRAL EUROPE
After six years of false starts, hardship, and loud public skepticism, Central Europe's three main economies have emerged from the Russian bear's shadow and look sustainably bullish. The Czech stoc...

PORTFOLIO TALK A VOTE FOR SQUID, BEER, AND BANCO O'HIGGINS AN INTERVIEW WITH GRACE PINEDA Manager of MERRILL LYNCH DEVELOPING CA
Born in the Philippines and living the itinerant childhood of a diplomat's daughter, Grace Pineda became proficient not only in her native Tagalog but also in English, French, Russian, and Spanish....

MAKING REAL DOUGH IN EASTERN EUROPE
AS UNDERGRADS AT HARVARD, ADAM HAVEN-Weiss and Robert Brooker dreamed of starting their own business. But by fall 1992, Haven-Weiss was at Columbia University Law School and Brooker was working at ...

The market that fears no news, what Khrushchev didn't do, Gouldism on the march, and other matters. GETTING IT WRONG
One regrets the recurrent temptation, thus far irresistible around our house, to argue with E.D. Hirsch Jr., professor of English at the University of Virginia. His basic proposition is sound. One ...

EASTERN EUROPE IS ONE HOT MARKET
-- From the Baltic to the Black Sea, Eastern Europeans are loading up on merchandise bearing U.S. brand names like Kodak, Kellogg's, Band-Aids, Rice-a- Roni, SlimFast, and Purina Cat Chow. Warsaw s...

GET AN AUSTRO-HUNGARIAN PORTFOLIO ON THE CHEAP
Of all the emerging Eastern bloc nations, none has a brighter future than Hungary. This peppery land of goulash and bauxite has taken to economic freedom with a vengeance. Within the last year or s...

WHO'S WHO IN THE EAST In Eastern Europe, the people to know are both colorful and energetic. ! Want to meet the Clark Gable of f
Business is always personal, but especially so in Eastern Europe, where daunting bureaucracy and changing ground rules can spook even veteran investors from abroad. In such a climate, knowing the r...

NEW LIGHT IN EASTERN EUROPE? Amid the economic chaos that followed the crash of Communism come signs of emerging entrepreneurshi
A NERVOUS SOBRIETY has set in across Eastern Europe. Two years after the Iron Curtain came crashing down, the region's experiments with capitalism might, to some eyes, seem an excellent advertiseme...

POLAND'S GAMBLE BEGINS TO PAY OFF The Poles have achieved remarkable results in the first stages of their rush toward a free-mar
FOR POLAND this may be the most dangerous summer since 1939. While their Soviet neighbors fiddle, the gutsy Poles are switching from Communism to capitalism in one stroke. But their boldness has al...

GLASNOST'S HARVEST: JEANS THAT NEED A SCREWDRIVER, AN ANGEL FOR BORIS, AND MORE
-- The red star and the Cyrillic writing on the back pockets and an accessory in the form of a free screwdriver mark a hot new seller: cotton jeans ($60 and up) from the Soviet Union. The screwdriv...

HOW TO MANAGE IN THE NEW ERA Seizing global opportunities requires exploring more options -- and acting faster -- than ever. Her
Are you up to the challenge? Beware. Leading the vanguard of global investors doesn't necessarily make for restful nights. When Swedish ball-bearing maker SKF plunged into Russia, its dream of prof...

WHO GAINS FROM THE NEW EUROPE Almost everybody does -- and there's opportunity aplenty for deals. The combined GNP of East Germa
WITH THE FALL of the Wall and the lifting of the Curtain, Western managers and investors must rethink their strategies for doing business in Europe in the 1990s. Suddenly the Old World has gained a...

TOWARD A NEW ERA OF POSSIBILITIES
The historic events in East Berlin and Moscow, Warsaw, and Budapest provide the most dramatic evidence yet that the Cold War is over and we have won. Socialism is on the run, and democratic capital...

IRON CURTAIN MBA
Move over, Karl Marx. Hungary's premier university has dropped Das Kapital from its required reading list. And, this month, the reform-minded Magyars are launching the East bloc's first MBA program...

SIGNALS
Bright young comrades will soon be receiving their MBA degrees from Karl Marx University in Budapest. Eager to adopt the West's business acumen, Hungary recently asked the University of Tennessee t...

Hungary's capitalist crusade
The tax man has sneaked behind the Iron Curtain and is emphatically not getting any Red carpet treatment. On January 1, Hungary became the first Soviet bloc country to impose a personal income tax ...

Hot money haven
If Switzerland is no longer a safe home for dubious dough, what is? Believe it or not, the hot new haven is Hungary. In the past year Switzerland has frozen the accounts of deposed despots Ferdinan...

Hungary, Class of '56
A remarkable number of top U.S. executives will mark the 30th anniversary of Hungary's brief revolt against Soviet domination on October 23: They are veterans of the uprising. Within weeks of the 1...

In Hungary, Potential Lessons for Greece
The experience of Hungary suggests just why the euro retains its allure to so many of the emerging countries of Europe.

A Nod to Budapest’s Future in a Grass-Roots Celebration of Its Past
The old Jewish Quarter is the scene of “Quarter6Quarter7,’' an ambitious art, history, culture and culinary festival that runs throughout the eight days of Hanukkah.

Musicians Who Poked at the Iron Curtain
Some of the musicians who played in ostracism during the last gray years of Communist rule gathered for a festival in New York.

Life After the Property Boom That Wasn't
Two or three years ago, Budapest was about to capitalize on the property boom. Then the downturn arrived.

For a Type of Songbird, Bats Are on the Menu
In a cave in Hungary, researchers found great tits hunting, pecking and eating small pipistrelle bats.

Hamilton Wins First Title of Season at Hungarian Grand Prix
The win on Sunday was Lewis Hamilton’s 10th career victory, his first since the Chinese Grand Prix last fall and his second in Budapest, where he won in 2007.

A Posthumous Dispute Over a Writer’s Legacy
A battle over the estate of the Hungarian playwright and novelist Ferenc Molnar spans generations, continents, religions and sensibilities.

Some Village Folkways: Incest, Murder, Adultery
Bela Pinter’s ribald sendup of opera blends Hungarian folk songs with the conventions of baroque music, to strange but surprisingly satisfying effect.

In Eastern Europe, Industries That Survived Communism Now Crumbling
The downturn, which has hit the region's export-led economies hard, is threatening to turn powerhouses of the communist and post-Soviet eras into a new ''rust belt.''

Gas Pipeline in Turkey Gains European Backing
Four European governments signed an agreement with Turkey Monday for a gas pipeline that would reduce Europe’s dependence on Russian gas.

Energy Trade in East Calls for Scrutiny
Over the past few days, a Hungarian gas trading company called Emfesz has become a showcase for all the secret deal-making that has turned the energy sector in this part of Europe into a quagmire.

As Economic Turmoil Mounts, So Do Attacks on Hungary’s Gypsies
Over the past year, at least seven Roma long among Europe’s most oppressed minority groups have been killed in Hungary.

Hungary’s Spirits Are Back Up, on a Horse
Overdose, a thoroughbred bought for a pittance, has turned into a national hero in Hungary.

Politics Add to Economic Turmoil in Hungary
The struggle of Hungary’s largest bank, OTP, mirrors that of the nation, whose prime minister unexpectedly resigned.

Two Natural Gas Deals Tie Hungary Closer to Russia
The Russian deal runs counter to claims by Hungary’s prime minister that he supports a rival pipeline by the European Union.

Far-Right Jobbik Almost Catches Up With Hungary's Socialists In Popularity
"Support for Hungary’s main opposition party Fidesz and the ruling Socialist Party (MSZP) has dropped moderately in March relative to the first two months of 2010, while far-right Jobbik increased its voter base, the latest poll of Szonda Ipsos showed on Thursday.

Royal Visit To Millenáris Park, Full Rehearsal Of ZARE Concert
"His Royal Highness The Prince of Wales will visit Millenáris Park to meet musicians, who will be doing a full rehearsal of the ZARE concert, due to take place on 21 March on the International Day of Anti-racism at Gödör Club. His Royal Highness will talk to ZARE musicians, organisers and volunteers as well.

Hungarian Cabinet To Set New Parking, Gun Rules
"The cabinet proposed new public parking regulations and fixing car-parking fees to the price of 95 unleaded petrol yesterday.

Gyurcsány To Speak On Recent Years
"Former prime minister Ferenc Gyurcsány will make a speech on Hungary’s last few years and the tasks ahead at a Democratic Charta public function on March 19.

Holocaust Heroine Jane Haining Honoured By PM
"The family of a Church of Scotland missionary who died in the Nazi gas chambers has received a posthumous award in her honour at Downing Street. Dumfriesshire-born Jane Haining worked at a Jewish orphanage in Hungary."

Hungary's Aggtelek National Park Goes Under
"Aggtelek National Park (ANP) has gone bankrupt with only Ft 20 million in its account, which is only sufficient to pay its staff salaries, Magyar Hírlap reports.

Hungary's Tokaj Appears As Slovak Wine Region
"The Tokaj name has again appeared as a Slovak wine region in the e-bacchus, the registry of EU wine regions, much to the consternation of vintners in the Hungarian region.

Eurasian Energy Envoy Morningstar Receives Decoration From Prime Minister
"Visiting Budapest to attend the Visegrád countries’ “V4 Plus” Energy Security Summit, the Secretary of State’s Special Envoy for Eurasian Energy, Richard L. Morningstar, met with Prime Minister Gordon Bajnai for bilateral discussions on February 23. The U.S. delegation also included Deputy Assistant Secretary of State Pamela G. Quanrud.

EU Finalises Support Budget For Energy Projects
"The European Commission has selected on Thursday 43 major energy projects, which will significantly contribute to the economic recovery in the EU, while increasing the region’s security of energy supply by creating cross-border infrastructure.

Government Agrees To Back Mega-Project In Hungary Despite Concerns About Transparency
"Some of Hungary's major anti-corruption NGOs have turned to EU Competition Commissioner Joaquín Almunia. The NGOs are concerned about a giant project financed with state aid and therefore urged the Prime Minister to immediately suspend the 'murky' 130 mn EUR investment, financed by an EU fund and the Hungarian Development Bank (MFB). Gordon Bajnai, Prime Minister of Hungary finally ordered the Ministry of National Development and Economy to make the feasibility study of the project public.

Hungary Is Becoming A Problem For Canada
"Four Hungarians who went to Canada to watch the Vancouver Winter Olypics are now seeking refugee status, CTV News has learned. The fans include other claimants as well, two from Japan and one from Russia. Immigration Minister Jason Kenney said Hungary was "becoming a problem" for Canada.

Suspect K. Admits To Shooting At Roma Houses
"Árpád K, the main suspect in the recent string of murders of Roma people in Hungary, has admitted that he opened fire on several Roma-inhabited houses on July 21, 2008.

Hungarian Firm Takes Over At Sármellék
"FB Airport has been granted the license to operate Fly Balaton airport in Sármellék for 50 years, with an option to extend it for another 50 years, according to an agreement between the local municipalities and the company owned by Hungarian property developer SDC Group.

Briton Freed From Hungary Jail Vows To Clear Name
"Michael Turner and his business partner Jason McGoldrick were held without charge by the Hungarian authorities. Mr Turner told BBC News he wanted to "move forward and work on the case". It is understood the pair were released from prison on Friday.

No Official Talks Between IMF And Hungary's Fidesz
"Iryna Ivaschenko, Resident Representative of the International Monetary Fund (IMF) in Budapest has said the Fund did not hold official negotiations with centre-right opposition party Fidesz, but informally exchanged views with the officials of the party, which is widely expected to win general elections in April.

Eurasian Energy Envoy Morningstar Receives Decoration from Prime Minister
"Visiting Budapest to attend the Visegrád countries’ “V4 Plus” Energy Security Summit, the Secretary of State’s Special Envoy for Eurasian Energy, Richard L. Morningstar, met with Prime Minister Gordon Bajnai for bilateral discussions on February 23. The U.S. delegation also included Deputy Assistant Secretary of State Pamela G. Quanrud.

Form Collection At Half-Way In Hungary
"The period for gathering electoral nomination forms has now reached the half-way mark. The Socialist Party has collected the 750 forms necessary for nomination in all 176 individual constituencies, party spokeswoman Bernadett Budai told Inforádió on Monday.

Olympic Champ Extradited To Hungary
"Former Olympic wrestling gold medalist Péter Farkas was flown home to Hungary last night after authorities in Andorra handed him over to Hungarian police officers at a customs office on the Andorran-Spanish border.

Hungary's Socialists Almost "Fail" With Election Programme
"Hungary’s Socialist Party (MSZP) almost got an 'F’ on its election programme. The "teacher" in this case was a group of Hungarian economists who have recently launched an independent civilian initiative to see what the sometimes cloudy, boisterous, humbug or downright ridiculous promises of local political parties would actually do to the economy if they were fulfilled.

Widespread Rumours Of Hungary's Fidesz And IMF Deal
"Fidesz representatives and the IMF have held preliminary negotiations, according to rumours that were rife in London on Friday.

Hungary Becomes Majority Owner Of Malév Again, Increases Capital
"Hungary has carried out the capital increase at Malév on Thursday and so it has become the 95% owner of the airline. The remaining 5% stake remained at Airbridge Zrt., Finance Ministry spokesman Ferenc Pichler told local newswire MTI.

Marriott To Double Its Hotels In Europe By 2015
"Marriott will soon have three hotels in Budapest, Hungary. Marriott International has announced plans to double its hotel portfolio in Europe by 2015, as part of a global reorganization aimed at accelerating worldwide growth.

Escape From Budapest To Istanbul, European Capital of Culture 2010
Along with the Hungarian city of Pecs, and the German city of Essen, Istanbul is also a ‘European Capital of Culture’ this year. This Turkish delight of a city stands out from the others in several ways, not least because part of it’s in Asia. Recently I caught up with Wolfgang Koller there, former Budapest expat and now the GM of the Courtyard Hotel by Marriott Istanbul. I asked him about his expat life in Istanbul, and what visitors ‘must see’; do and eat during a weekend stay.

Budapest Airport Expects More Custom
"Budapest Airport forecasts that Ferihegy airport will have 8.2 million passengers this year, up from 8.1 million in 2009.

'Travel Exhibition', Hungexpo, 5 - 7 March
"The countdown has begun, since the HUNGEXPO Budapest Fair Center will "take wings" again on 5th March. At the TRAVEL exhibition, we can fly around the world in a day for the 33rd time. Between 5th and 7th March, those wishing to relax have the option to select from the cream of travel offers.

Malév Moves Into 95% State Ownership
"An agreement has been reached on settling the situation of Malév. The parties, with Minister of Finance Péter Oszkó representing the Hungarian State, and representatives of the Russian bank Vnesheconombank, the airline’s former majority stakeholder AirBridge Zrt., Malév Zrt. and the Hungarian State Holding Company (MNV Zrt.) signed the document on Friday evening.

Four-Day Strike At Lufthansa Affects Hungary
"The German pilots' trade union announced a four-day industrial action which affects flights connecting Hungary and Germany as well. Passengers of Lufthansa will reach their destinations by alternative flights.

Lufthansa Strike May Affect Hungary's Ferihegy
"The effect of today’s Lufthansa pilots strike on traffic at Ferihegy airport is unpredictable, Népszabadság reports.

Germanwings: Announcement Of Pilots’ Strike
"Due to a strike announced by the German pilots union ‘Vereinigung Cockpit’ Germanwings expects that its flights from 22nd February to 25th February 2010 may be affected. We sincerely regret any inconvenience caused to customers by this action.

Mr. Reiner Schränkler Has Been Appointed Chairman Of Budapest Airport
"Mr. Reiner Schränkler has been elected Chairman of Board of Directors of Budapest Airport at today’s meeting of the company’s top decision making body. Mr Schränkler takes over the post of Chairman of Budapest Airport from Dr. Reinhard Kalenda who has left Hochtief AirPort and Budapest Airport by 31st December 2009.

Malév Operating With Consolidated And Efficient Fleet
"From the end of January 2010, Fokker 70 aircraft of the Hungarian airline no longer carry out commercial flights in the Malév livery. This means that from February the fleet is structured on two aircraft types: Boeing 737 Next Generation jets and Bombardier Q400 turboprops. Fleet rationalization takes the airline one step closer to achieving its objective defined as the cornerstone of its business strategy and market growth, making Malév the leading airline in Central-Eastern Europe.

Making Tracks From Budapest To Jordan
Sometimes in Hungarian, many of the people I met last week in Jordan asked, “Why did all the visitors from Hungary disappear?” According to official sources, around 140 thousand tourists from Hungary went to Jordan in the five years leading up to 2007. Since then there has been a dramatic reduction in those numbers as the once packed charter planes stopped flying to Aqaba from Budapest. These days Malev Hungarian Airlines, OneWorld partner of Royal Jordanian Airlines, offers regular flights to Amman. I arrived there this February for a week long tour of the ‘Hashemite Kingdom’, ready for some winter sun; intriguing culture; and a spot of eco-tourism.

200,000 More Passengers Flew With Malév In 2009
"Malév performed better than the European average in 2009, a year that saw a downturn in the air transport industry as a whole. In the face of the European trend, the Hungarian national carrier was actually able to increase the number of its passengers. The airline carried a total of 3.3 million scheduled and charter travellers, 6% more than in the previous year (indicator omits long-haul passengers). This enabled the airline to up its market share by two percentage points to 43,5%.

Meeting Tour Operators At Budapest Airport
"From May onwards, passengers craving adventure and relaxation may start out on a journey with only a 4-hour lead time if the kiosk offering Ultra Last Minute trips – a joint plan of Budapest Airport and operators of charter flights – is implemented in Terminal 2 of Ferihegy Airport.

Passport Applications Overseas For British Expats In Hungary
"What is changing and how does it affect me? - From 16 February 2010 you will be able to apply for your passport direct to the UK’s Passport Production Centre in Dusseldorf using a secure delivery service. Further details about how to use this new service will be published on the Embassy’s website in Hungary in February.

Budapest Calling
"At Budapest Ferihegy International Airport, the airport serving the Hungarian capital, the three-storey Sky Court passenger building is being built to connect Terminal 2A and Terminal 2B. The project involves the construction of 40,000 sq m of new terminal area and the complete refurbishment of 55,000 sq m of existing facilities. It includes a pier featuring eight new aeroplane jetties, with a second pier with a further eight jetties to be built in the future."

Hungary Malév Increases Passenger Count 6% yr/yr In 2009
"Hungarian Airline Malév carried a total of 3.3 million scheduled and charter passengers in 2009, 6% more than in the previous year (excluding long-haul passengers). This enabled the carrier to up its market share by two percentage points to 43.5%, Malév has announced on Monday.

Take Out Insurance Together With Your Air Ticket Booking
"Enjoy trouble-free travel with our latest online service! Choose from two travel insurance products specifically developed for you by Mondial Assistance Group and Malév, available when you book your air ticket: travel cancellation insurance and full travel insurance (sickness, accident, baggage insurance).

Delays At Budapest Airport Possible Due To Strike
"Delays to Malév services are likely today due to a strike by ground handling staff. Malév requests its passengers departing from Budapest to arrive at the airport in plenty of time, that is, approximately 1 hour earlier than the usual check-in time for flights.

Busy End Of Year For Malév
"The pre-festive period is usually characterised by a high turnover in aviation. Malév’s November results confirm this trend, since its number of passengers increased by 6% in the last but one month of the year and 5% at an annual level.