Hungary goes west first

The language

The common language in Hungary is Hungarian. It belongs to the Finno-Ugric branch of the Uralic language group and is the only non-Indo-Germanic language spoken in Central Europe. Alongside Hungarian, minority languages are widespread: With regard to Romani, the language of the Romany people, the figure varies; it is spoken by up to 5% of the population of Hungary. 0.4% of the population speak Croatian.

Manners

Good manners are a sign of a good background in Hungary. Hungarians are very sensitive to impoliteness. It is easily taken as an insult. Even if the language is difficult to learn, you should quickly absorb common courtesies such as “köszönöm” (thank-you), “kérem” (please) and “bocsànat” (excuse me).

Hungarians are formal in manner and gallant towards women. In greeting women, a light bow is usual, but kissing the hand is passé. Nowadays, the usual greeting phrase is “Csókolom” (Tschokolom – kiss the hand), which is, however, rejected by younger women. The business greeting rituals, of the kind when business cards are exchanged etc, are not very different from the usual ones in Europe. Be careful: on Hungarian business cards the surname is written in front of the first name. With regard to shaking hands, there is a rule – the lady holds out her hand first to the man. However, this is done by fewer and fewer Hungarian women, so that it often is the case that while men greet each other with a handshake, women do not.

With regard to business wear, too, things are more conservative than in Germany, for example. However, the guest is not expected to conform. Making fun of the typical outfit of foreign business people is widespread and meant to be humorous. With male visitors from Germany, it is the blue shirt with a funny tie which causes people to smile, with female visitors, it is the trouser suit. Hungarian women are often very fashionably and strikingly dressed. With foreign females, this outfit could possibly give an unprofessional impression.

Absolute punctuality with regard to business meetings is expected from foreigners as a matter of course. It is better to arrive five minutes too early than too late. That shows a disdain for the person, or even the company, which can put a strain on the following discussion. In private matters, trivial lateness is the norm.

Little presents are very positively received both at private and business appointments. They do not need to be valuable, but show an interest in the person. Something typical from the visitor’s country, with reference to the receiver: confectionery, a delicacy or a drink. Red roses or chrysanthemums for ladies are taboo. Red carnations are unambiguously connected with Socialism.

At the first meeting, the Hungarian company almost always makes an invitation. It is usual after the negotiations are over to resume the discussions in a restaurant – “at the white table” as the Hungarians say. There, the atmosphere is beneficial, but it requires time. The business traveller should bring this with him, and plan his further meetings taking this into account.

The transition between a business and a private meeting is fluid since the atmosphere at business meals with Hungarians is really private. It is a question of building relationships and not primarily about business. Merry drinking bouts in the evening are hardly to be feared. Hungarians are very family oriented and like to go home early. Incidentally there is zero-tolerance for drink-driving.

With regard to invitations to someone’s home, flowers for the hostess are a must. In contrast to business appointments, over-punctuality is out of place where private invitations are concerned. A little lateness gives the host some more time for the preparations: traditional Hungarian cuisine is very complicated to prepare and the guest is expected to recognise this. Business friends like to meet each other for communal sporting activities. Tennis is still high on the list, bowling is popular and golf is gradually catching on. As well as this, some Hungarian business partners invite to yacht cruises on the Lake Balaton.

Eating and drinking

Hungarian dishes count as relatively heavy food in comparison with other European meals. A popular dish with the Hungarians is pörkölt, frequently called the national dish, which is falsely described as goulash not only in the German-speaking world. The goulash (gulyás) cooked in Hungary is, in contrast to pörkölt, a soup. The soup is traditionally cooked in a cauldron (bogrács). This dish in restaurants is served without fail in a little individual cauldron.

Invitations to a restaurant, both at midday and in the evening, are very popular and widespread. They serve above all to get to know the business partner better, or to strengthen and cultivate good relationships. Topics such as family, hobbies, sport and travelling are on the conversation menu, and not business matters. Nevertheless, certain conventions remain in place: table manners are important – above all towards women, who are treated gallantly and with respect. In larger circles, short speeches are usual – a welcome from the host and thanks and appreciation from the guest of honour. Hungarians wish each other bon appetit with “Jó étvágyat” (Joo eetvaadjot) and glasses are raised with the word “Egészségédre” (Ägeesscheegeedrä), which you must take care to pronounce properly to avoid misunderstandings.

An old Hungarian vow not to make a toast with beer is not usual today. Nevertheless, sympathy points are scored if a foreigner knows about it: For 150 years, the Hungarians did not want to make a toast with beer, which the Austrians had done so extensively on the occasion of the suppression of the Hungarian Revolution of 1848. On the subject of wine: Hungarians are justifiably proud of their wines, which should be preferred to foreign ones.

The host pays the bill and should do this as discreetly as possible, for example, by excusing himself briefly from the table, handing the waiter his credit card and signing the bill. The tip is often included. If not, it is usual to give at least 10% extra. Even high-end restaurants do not always accept credit cards.

Infobox*

Area:
39,030 km²

Population:
10.05 million (January 2008)

Capital City:
Budapest (approx. 1.7 million inhabitants)

Political system:
Parliamentary democracy with a single house parliament

Administrative structure:
Centralised administration system

Official language:
Hungarian

Currency:
Forint (HUF)

Memberships:
EU, ILO, IMF, UNO, UNESCO, FAO, UNICEF, WHO, UNHCR, ITU, GATT, WMO, UPU, ICAO, IMO, UNCTAD, UNDP, UNIDO, WIPO, INTERSPUTNIK, UNEP, OSCE, IFC, World Bank, EBRD, Council of Europe, CEFTA, OECD, NATO, WTO, International Criminal Court, International Tribunal for the Law of the Sea, EFTA, Visegrad Group.

*As of March 2008

The Economy*

The Hungarian economy is experiencing weaker growth at the moment. Gross Domestic Product (GDP) grew by only 1.3% in 2007. One reason for this can be seen to lie with the rigid fiscal policies of the government which has led to decreasing economic activity in the public sector. The main engine for growth continues to be the industrial sector with a growth rate of +6.2% in comparison with 2006 while agriculture and the construction sector have registered negative growth in the region of low 2 digits.

Hungarian economic policy now has to confront the difficult task of pushing ahead with consolidation of the state finances whilst maintaining and even improving the country’s international competitiveness. After re-election in 2006 the Liberal-Socialist government coalition has pursued a strict course of consolidation in the state finances which has reduced the deficit in the budget from 9.2% (2006) to 5.5% (2007). The most recent version of the convergence programme from December 2007 anticipates a further reduction of the deficit to 4.0% (2008) and 3.2% (2009).

Alongside the convergence programme, the most important guideline for Hungarian economic policy is the national development plan ‘A new Hungary: growth and employment 2007 – 2013’. Central to the plan – which decides the distribution of the approximately 22.4 billion Euros of EU subsidies (+ 3.8 billion Euros from the Hungarian state budget) provided for the period from 2007 to 2013 – are the extension of the transport network (particularly the railways), an increase in the share of renewable energy in the country’s primary energy consumption, measures to increase energy efficiency, modernisation of the administration (e.g. e-government) and public services, and support for Hungarian small and medium-sized companies which are so limited in their competitiveness in international terms. In parallel, the Hungarian Economic and Transport Ministry along with ITDH, the national marketing company, is pushing the advantages of the country, above all with its well developed infrastructure, the high levels of education, particularly in the sciences, as well as the favourable geostrategic situation of the country as the gateway to the Balkan states and to eastern Europe.

On the plus side, Hungarian exports for 2007 remained strong and dynamic: the value of exports (in €) for 2007 was 16.2% higher than that of the previous year. For the Hungarian economy, open and export-orientated, demand from EU states has been decisive: more than ¾ of Hungarian exports go to other EU countries, almost 30% to Germany alone. Germany is by far the most important destination for Hungarian exports.

*Status: October 2008

Climate

The inland location and the sheltering effect of the mountains ensure a relatively dry continental climate with cold winters and warm summers for Hungary. The mean temperatures in January lie between -3º C and -1º C, in July between +21º C and +23º C. The most abundant rainfall is to be expected in the early summer, the amount clearly reducing from west to east: Average rainfall is 800 millimetres in the west and 500 millimetres in the east.

Public holidays

15th March: Memorial to the Revolution and Freedom Struggle 1848/49

20th August: Official national public holiday, Festival of the Founder of the State and the first Hungarian king, Saint Stephen.

23rd October: Memorial to the People’s Uprising 1956 as well as the Day of the Proclamation of the Republic of Hungary 1989

CONTROL unlimited
October 2008