Eastwards - Where - Hungary

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HUNGARY

How to get to Hungary?

Economic information and foreign trade

Legal framework

Official papers

Cultural heritage and gastronomy

Public holidays

State

Official name: Republic of Hungary
Area:35 919 km²

Administrative divisions: 19 counties (megyek): Budapest, Bács-Kiskun, Baranya, Békés, Borsod-Abaúj-Zemplén, Csongrád, Fejér, Gyor-Moson-Sopron, Hajdú-Bihar, Heves, Jász-Nagykun-Szolnok, Komárom-Esztergom, Nógrád, Pest, Somogy, Szabolcs-Szatmár-Bereg, Tolna, Vas, Veszprém, Zala

Cities:

Budapest (1,7 million people), Hungary’s foreign investment hub

Debrecen (205 000 people), centre of agricultural trade, traditionally famous for its fairs and livestock markets

Miskolc (190,000), the location of the metallurgical industries

Szeged (178,000), the main centre of a major agricultural centre, the Great Hungarian Plain, also noted for its chemical and synthetic-textile industry

Gyor (127,000), well-known for its tool-making industry

Population

Population:10,1 million people

Ethnic groups:
The majority (89,9%) is Hungarian, other ethnic groups:
Roma( 6%), German (2,6%), Serb (2%), Slovak (0,8%), Romanian (0,7%) Official language: Hungarian
Religion:Catholic 68%, Calvinist 20%, Lutheran 2%, Other 8%

Currency:

Official currency: Hungarian Forint (HUF)
Exchange rate: 1 EUR = 246,1 HUF (rolling, last update 24.02.03)

Politics

Political system: Parliamentary democracy
President: Ferenc Mádl
Prime Minister: Peter Medgyessy
Political parties: Alliance of Young Democrats - Hungarian Democratic Forum (FIDESZ-MDF) is a liberal party whose original attraction was in the youthful, libertarian attitude of opposition, first to the communists and later towards the conservatism and nationalism of the FKgP. From its liberal beginnings, the party has now taken up conservative, national and Christian themes, and criticised the economic reform policies of the MSzP government as 'too harsh'.
Hungarian Socialist Party is the direct successor of the Hungarian communist party, the Hungarian Socialist Workers' Party (MSzMP). Within the MSzP there are several loosely organised platforms. The ‘social democratic community’ is led by Ivan Vitany, author of the party programme and a popular figure. Tamás Kraus personifies the left wing platform, an unpopular neo-Marxist group with little support. While these platforms are small, consisting mainly of Budapest intellectuals and are ideologically motivated, another platform, the ‘socialist group’ is pragmatic, nationally oriented and has relatively large quantitative support, especially with the unions. It is led by the ambitious leader Sándor Nagy.
Alliance of Free Democrats has been troubled by internal struggles. SzDSz now defines itself as a social-liberal people's party. Support is found especially among the middle classes, liberal intellectuals and entrepreneurs.
Elections: Next elections for Presidency in 2005
Next elections for Parliament in 2006
Referendum for EU accession in April 2003

Climate
Climate Dry continental climate, with cold winters and warm summers.
Average temperature Average temperature in January is -1ºC and in July is 27ºC. Rainfall is heaviest in early summer.

Time zone

Hungary is one hour ahead of standard GMT, in the same time belt as most Western European countries. There is no time difference between Belgium/Germany/the Netherlands and Hungary.

How to get to Hungary?

By plane

Budapest: direct flights connecting Budapest to major European cities by MALEV, Austrian Airlines, KLM, Swissair, Air France, Lufthansa, AlItalia, Delta.
There are no flights to other Hungarian cities.

By car

Budapest: You can reach Budapest easily via Prague-Bratislava or via Vienna. Modern highways that join at Mosonmagyarovar connect the Austrian and Slovakian capitals to Budapest via Györ. The M5 under construction will soon link Athens with Budapest via Beograd and Szeged, the M7 connects Budapest to Zagreb, with only part of it still to be built.

Debrecen, Miskolc, Szeged: via Budapest. Unfortunately, the Hungarian road network is built up with Budapest as its central hub. It’s not easy to avoid this large and traffic jammed city. A ring road around Budapest is planned and partially finished.

Take care about the payment system: for some highways you need a vignette, which can be purchased at the border, for others you need to pay a toll.

Driving distance Budapest-major European cities

	Km	Driving time (hours)
Amsterdam	1 413	13,5
Belgrade	365	5
Berlin	861	9,5
Bratislava	206	2,5
Brussels	1 370	13
Bucharest	797	10,5
Copenhagen	1 252	15,5
Frankfurt	974	9,5
Ljubljana	445	6
London	1 690	17
Munich	658	7
Paris	1 497	14
Prague	520	5
Rome	1 199	12,5
Sofia	748	9,5
Vienna	248	2,5
Vilnius	1 109	15
Warsaw	674	9
Zagreb	351	4,5

Infrastructure:

Hungary has a relatively good road network (188 203 km of road). M1 motorway connects Vienna to Budapest via Gyor. Budapest is connected by motorway to the touristy Lake Balaton area as well as Miskolc and Kesckemet.

Giving Hungary’s strategic position as transit and target country, plans to extend the existing road network exist and they include projects to complete all connections to the borders and link Hungary to EU and international road networks by 2030.

Budapest is the main road and rail hub of the country. Budapest has three train stations, one where most international trains arrive (Kelety) and two others for internal connections. Out of the total 7 785 km of railway track, 2 628 km is electrified. Undergoing projects are aimed at reducing travel time on rail, developing the country's transit role, improving competitiveness and using of ecological technologies.

The main international airport is the Ferihegy Airport, located 20 km from the heart of Budapest. There are regional development projects aiming to transform former military airports into civilian airports.

Wages:

Average gross salary (2001): 440 EUR
Wages are considerably higher in Budapest. Wages are rising, on average 10-20% per year.
Average wage for a manual labourer: 204 - 250 EUR
Average wage for economist leaving university: 750 - 1 000 EUR

There are great variations in the income and wage level between Hungary’s regions. Budapest, the capital, has the highest wages, and generally wages are going up (10-20% yearly). Therefore when looking for staff, it is important not to pay exuberant wages, as they will not motivate your local staff at all, but on the other hand beware not to pay too low wages, as they will without doubt demotivate your local staff. Eastwards takes care of your recruitment of local top management, sales and financial management or specialists, and will consult you on which wage packages are most suitable for the job responsabilities and place of employment you offer.

Economic information

	2000	2001
Inflation	10%	9,1%
Real GDP growth rate (change to previous year)	4%	1,1%
GDP per capita	4 000 EUR	5 100 EUR
Unemployment	6,6%	5,7%

Trade with Germany

	2001	Percentage of the total
Exports to DE	12 171 mil. EUR	26,6%
Imports from DE	9 406 mil. EUR	14,5%

Trade with the Netherlands

	2001	Percentage of the total
Exports to NL	1 570 mil. EUR	3,4%
Imports from NL	784 mil. EUR	1,2%

Trade with UK

	2001	Percentage of the total
Export to UK	1 468 mil. EUR	3,2%
Imports from UK	1 112 mil. EUR	1,7%

Trade with Belgium

	2001	Percentage of the total
Exports to BE	1 119 mil. EUR	2,4%
Imports from BE	859 mil. EUR	1,3%

Trade with EU

	2001	Percentage of the total
Exports to EU	33 983 mil. EUR	74,3%
Imports from EU	37 535 mil. EUR	57,8%

Legal framework for doing business in Hungary - types of companies

Company limited by shares - Részvénytársaság (Rt.)
Limited liability company - Korlátolt felelosségu társaság (Kft)
General partnership - Közkereseti társaság (Kkt.)
Limited partnership - Betéti társaság (Bt.)
Trade association - Egyesülés
Joint enterprise - Közös vállalat (Kv.)

For further information on establishing a company in Hungary, please contact us.

Official documents

EU citizens do not need a visa or an international passport. The national identity card is enough.

Cultural heritage

Budapest is one of the most beautiful European capitals with a rich Austro-Hungarian and some Turkish architectural heritage. Famous landmarks include the Parliament building, the Opera House, and the district of Buda castle. Close by Budapest is Esztergom, a small town dating back to the Roman Empire, which has been the seat of Catholicism in Hungary for centuries and which has a dome resembling the Dome of Rome. Other historic cities on the Danube are Visegrád, the 14th century home to the Hungarian kings and Szentendre, a village museum. Hungary has considerable geothermal resources (at 2,000 meters depth, the rock temperature exceeds 100 degrees Celsius) which are used currently for the heating of agricultural facilities, public and residential buildings, and as water supply for baths and swimming pools.

Historic cities: Budapest, Székesfehervar, Veszprém, Pécs
Smaller historic places: Sopron, Eger, Holloko, Szentendre, Eger, Esztergom
Nature: Lake Balaton, Pusta, mountains around Holloko, National Park of Hortobágy, knee of the Danube at Visegrád

Gastronomy

Hungarian cuisine is quite spicy, paprika and garlic are to be found in almost all national dishes whereas cherries are a favourite for dessert. Hungarian wines have earned a reputation of high quality, especially the Tokay wines. The Hungarian cuisine bears the influence of the early settlers in the Great Hungarian Plain coming from Central Asia, and it bears a touch of Turkish, German, Austria, Croat, Serb, Slovak and Czech cuisine.

The traditional Hungarian goulash is a stew of meat, onions and potatoes spiced up with paprika. Soups figure prominently in the diet and are usually enriched with sour cream. Other traditional dishes include bográcsgulyás (cauldron goulash), Erdélyi leves (Transylvanian soup). Side dishes include potatoes, noodles and dumplings. For dessert, cherry or apple strudel is most common. A wide variety of breads and pastries enrich everyday meals. Palinka, a traditional Hungarian brandy, is made from pears or apricots.

Prices

	HUF	EUR
bread	160-250	0,65-1,02
0,5 l of beer	150-250	0,6-1,02
1 cup of coffee	120-250	0,48-1,02
1 bottle of wine	200-4 000	0,8-16,3
1 liter of milk	110-180	0,4-0,7
1 kg of chicken meat	400-650	1,63-2,65
1 liter of petrol	245	1
1 liter of diesel oil	220	0,89
Taxi services	500	2/km
Average cost of meal	2 000	8
Real estate/m2	120 000-300 000	489,8-1 224,5
1 movie ticket	1 000	4
Average cost of lodging	17 150- 24	500 70-100

Safety

Budapest can get quite scary at night, especially in the city center, with call girls and bar tenders chasing after you. At daylight, it is a normal European capital city, so common sense will prevent you from most difficulties. Outside Budapest, Hungary is a safe country.

Working hours

Public institutions	08.00 - 16.00
Business offices	08.00 - 17.00 (usual)
	09.00 - 12.00 (Saturdays)
Banks	09.00 - 14.00/16 (Mon-Thu)
	08.00 -13.00 (Fridays)
Department stores	10.00 - 18.00 (weekdays)
	09.00 - 13.00 (Saturdays)
Shops (grocery stores)	08.00 - 19.00/20.00 (weekday)
	09.00 - 14.00 (Saturdays)
Shopping centres	09.00 - 21.00

Public holidays

	2004
New Year’s Holidays	January, 1st
Memorial Day	March, 15th
Good Friday	April, 9th
Easter Monday	April, 12th
Labour Day	May, 1st
Constitution Day	August, 20th
Republic Day	October, 23rd
All Saints Day	November, 1st
Christmas Holidays	December, 25th- 26th
New Year’s Eve	December, 31st

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