Riding the Wave: US—Hungarian Relations at an All-time High
An Interview with Ambassador Simonyi in Business Hungary

By Gyula Bányai

Hungary wishes to play a constructive role in maintaining a balanced trans-Atlantic relationship between the United States and Europe, Hungarian Ambassador to Washington, András Simonyi, told Business Hungary in an exclusive interview. Simonyi, the country’s former NATO Ambassador in Brussels, stressed that complaints by American investors regarding Hungarian bureaucracy and red tape should be taken very seriously and urgently remedied.

BH: How do you view the relationship between Europe and America in the long term?

András Simonyi: During the last year and a half there have been substantial difficulties in the trans-Atlantic relationship. As I see it today, both sides – Europe and America – have decided to turn a new page and we both try not to look back, but to look ahead. There is no alternative to the trans-Atlantic relationship. Whether it is war against international terror, in Iraq and/or Afghanistan, whether it is trade, or scientific relations, there is really no alternative to close cooperation between Europe and the United States. Within that, Hungary has made it clear that it wishes not to choose between its trans-Atlantic and European ties. Hungarian foreign policy rests on these two pillars, of which both are very important. The trans-Atlantic relationship is, or will be back on track, and Hungary wishes to play a constructive role in maintaining this relationship.

BH: What are some elements of the US—Hungarian relationship that could be further strengthened?

AS: The relationship between the United States and Hungary should not depend on the actual composition of the government. It should not matter which party is in power in the two countries, because the relationship is between Hungary and the United States and not  between one party and another. The permanent features of US—Hungarian relations are as follows: obviously first and foremost political relationship and security, then economy, but increasingly what I consider the softer part of power, which is close cooperation in education,  culture, science and technology, health and humanitarian fields. Now, obviously, all need constant care. I see the US—Hungarian relationship as a high-maintenance relationship that needs constant care, like a good marriage. You want to make sure that there is continuity. And who says, a marriage cannot improve every single day?

BH: A new European Commission (EC) has recently been set up with former Portuguese Prime Minister José Manuel Durao Barroso as its president. What were initial reactions to the new EC in political and business circles in Washington?

AS: President Barroso is well known in the United States and is considered to be a supporter of a strong trans-Atlantic relationship. It is quite obvious that any European foreign policy that aims to be credible cannot be anti-American. Moreover, it should be constructive in terms of building security and political ties between the United States and Europe. Therefore, as I know, the new Commission has been welcomed in the US.

BH: Recently, the US Chamber of Commerce and the Brussels-based Eurochambers voiced criticism at certain aspects of, and obstacles to, trans-Atlantic trade, based on a survey conducted among members.

AS: It would be strange to imagine that an important relationship like US—Europe relations should be totally void of any disputes and discussions. That is not the issue. The issue is whether there is a political will on both sides to resolve these disputes. As far as I can see, each time there was a major disagreement on significant trade issues, in the end a solution was found, because it is in the interest of both the US and Europe to make sure that trade relations between the two sides of the Atlantic are not hampered.

BH: How would you evaluate the activity of AmCham in Hungary in the field of lobbying with the intention of improving the business climate in Hungary, enhancing bilateral trade and attracting more US capital investment, especially from small and medium-sized US companies?

AS:  They are doing a great job. First of all, I like the fact that the American Chamber of Commerce is involved in all the major political events that take place between Hungary and the US. The Hungarian authorities and Government really consider the American Chamber of Commerce an important part of the economic-business community. AmCham is instrumental in raising some controversial issues. I remember they were very active in discussing complaints by the pharmaceutical industry with the Hungarian Government. I think their role really is to act as a mediator between the different actors and I hope they continue to do that.  Where I would like to see more activity is AmCham promoting Hungarian small and medium-sized companies within the US.

BH: There have been complaints from American investors in Hungary regarding certain aspects of doing business in here. Do you believe Hungarian authorities will remedy these complaints?

AS:  I think we are, unfortunately, too bureaucratic. We have to break down bureaucracy. The so-called “one-stop shop” is not a matter of declaration. Just recently I heard a pretty clear complaint that in Hungary decisions take too long because of bureaucracy. In the business world, speed is the essence. We have to remedy this situation and we must take the complaints of investors very, very seriously. If the investor does not feel that he is welcome, served well for his money or treated professionally, then we have to change that situation urgently. My staff and I can do a lot to promote the image of Hungary, but a bad decision, a dissatisfied customer can destroy the image very easily. We must be aware that there are other countries in Europe, even in Hungary’s neighborhood that are strong competitors in the race for foreign direct investment. The ultimately decisive factor will be the level and quality of service we can provide.

BH: ITDH, Hungary’s trade and development office, has representative offices in New York, Chicago and Los Angeles. In your opinion, how efficient is ITDH?

AS: I like to rely on their organization and I have been participating in numerous activities organized by ITDH. More recently, I spent some time in Rochester where I spoke to an audience of 500 businessmen at an event organized by ITDH. But I’d like to see them strengthened. I think they should be supported more in Budapest. Their job in the US is to open doors, to talk to possible clients, but the greater part of the efforts has to be made in Budapest. Sometimes I feel that this support could be stronger.

BH: Austria has some two dozen honorary consuls in the US, while little is known about Hungary’s honorary consuls in America.

AS: We have almost two dozen honorary consuls in the US as well, and increasingly, the selection of honorary consuls is based on their ability to attract business. Diplomatic work is done in Washington, so their role really should be to promote Hungarian business interests all over the country. We have some quite excellent, outstanding consuls, for example in Boston, Chicago, Denver, Cleveland, and just recently we have installed a new honorary consul in Houston, Texas who comes from the business community. All of them work hard and constitute a very important part of our network in the US.

BH: What is Hungary’s image in the American media, based on interviews and press statements by visiting Hungarian political and business delegations?

AS: Let’s be realistic. It is much harder for Hungary to get into the news in the US than conversely. This is is simply because of importance, size and influence. However, I can’t complain, because in the last couple of years Hungary has had more publicity in the American media, including in the major television networks, such as CNN, Fox News, NBC, CBS, ABC, than ever before. All the major networks have been very positive about Hungary, which has an increasingly good image in the US. We enjoy such goodwill in the US that we have never enjoyed before. This is, of course, partly politics, but is also the result of the economic activities of American companies in Hungary, and Hungarian companies in the US. We have started to look at the American media in a slightly different manner lately. We talk a lot to local newspapers, local television stations. When I was in St. Louis together with Ambassador George Walker to promote Hungary as an investment destination, we talked to local newspapers, radio and television stations. And through the local media you can reach millions and millions of potential Americans clients.  I also think that we have to use the Internet in a smarter way. Given the fact that Hungary has an incredible resource in technology, it is quite amazing how little Hungary uses the Internet for its own promotion.

BH: How do you see the future of bilateral political ties?

AS: First of all, don’t forget, this year has been a very good one in US—Hungarian relations. Five Hungarian cabinet ministers visited the US and met their counterparts. Former Prime Minister Péter Medgyessy met with the US President in Washington, Secretary of State Colin Powell was in Budapest, and in September, the Speaker of the Hungarian Parliament, Katalin Szili, is visiting the US. And I hope this trend continues. True, this November, there will be elections in the US, however, there will be no change in US—Hungarian relations, because whoever is the winner of the American elections, I am sure, this relationship will continue the way it is now.

BH: And bilateral business?

AS:  In terms of business, we will have to get more sophisticated. The new Hungarian cabinet has to make sure that it makes Hungary a more attractive place for investments. We have to work hard; there is a lot of competition. Sometimes, I feel that we are really good but sometimes I feel we are lagging behind. Today it is a more difficult time to attract investments. So I expect Hungary to get smarter in this department. I’d like to see Hungary attract more investments in the field of technology, science and scientific research. I’d like to see Hungarian universities team up with American venture capital, with American universities and businesses to make sure that the scientific base we have is fully utilized. For instance, we have a technology center in the state of Virginia, established about a year ago, which is a success story. I am not only optimistic but I also think that right now we are riding a wave. Hungary has high standing, commands a lot of respect in the US. I can only hope that during the coming year, which will be the third of my tenure in the US, I will see increasing economic and business activity between the two countries.