What Ireland and Hungary Can Learn from One Another

CEU Business School and the Embassy of Ireland, in association with the Irish Hungarian Business Circle and Enterprise Ireland, hosted their first Business Forum titled “Doing Business in Central Europe, Some Comparisons with Ireland” on April 9. The Irish Ambassador to Hungary Kevin Dowling, MBA Director of CEU Business School Zoltan Buzady, Country Managing Partner at PwC Hungary Nick Kos, and Professor of Finance at CEU Business School Peter Szilagyi compared the cultural heritage, financial reality, and investment opportunities in Ireland and Hungary, and pointed out what the two countries can learn from one another.


Assistant Professor Buzady discusses distances in business. Image credit: CEU/Daniel Vegel

In his opening remarks  Buzady introduced the work of CEU Business School and broadly outlined how countries can cooperate in the world of business. “Business has become international thus it requires international management,” he said. Outlining what needs to be taken into account when considering doing business abroad, Buzady highlighted how geographic, economic, regulatory, and cultural distance can be key factors. He also presented how countries can be categorized as linear, active or reactive based on how they think about and conduct business.


Ambassador Dowling compared the past of Ireland and Hungary. Image credit: CEU/Daniel Vegel

Ambassador Dowling referred back to Buzady’s remarks on distance, and drew a comparison between Hungary and Ireland. “We share a common future as member states in the European Union,” he pointed out after highlighting the similarities in the two countries’ pasts. Dowling underlined the importance of the EU in shaping Ireland since the country’s accession in 1973, saying “the EU is a strong accelerator of economy in Ireland.” He mentioned how the country dealt with gender inequality and “the Troubles” in Northern Ireland, the two most severe issues in need of substantial reform in the 1970s. “Developing a modern society in Ireland is a work in progress,” he added. “Countries with a strong civil society are more open to small and medium business,” Dowling found. After outlining how trade and especially export is essential for small countries with small economies, such as Ireland and Hungary, Dowling gave the floor to Kos.


Managing Partner at PwC Kos discussed how Ireland and Hungary can use their tax environment as an incentive. credit: CEU/Daniel Vegel

Kos’s  presentation clarified what CEOs are thinking and where they see the global economy going. It explained Ireland’s success, discussed how Ireland and Hungary can use their tax environment as an incentive, and how they could attract Foreign Direct Investments. Summarizing the findings of the 17thGlobal CEO Survey conducted last year, Kos said CEOs are now more confident in global economy than in the growth of their own companies. In Hungary, CEOs’ confidence grew by 29%, while it didn’t change in Ireland.

Comparing the business threats in both countries, Kos pointed out that there’s a lack of trust in business in Hungary, while in Ireland there’s a shift in consumer spending. In his view, both countries should prioritize creating a skilled workforce, and realize that innovation and adding values are the way to growth. Ireland was ranked the “best country to invest in” by Forbes in 2013, and in Kos’s opinion, it was due to

 the ease of doing business in the country and the fact that Ireland has a “favorable tax regime.” “In Hungary, we have a challenge to attract investors. In Ireland, we have a challenge to innovate,” Kos concluded.


Professor Szilagyi gave a on Ireland’s management of the financial crisis. Image credit: CEU/Daniel Vegel

Szilagyi gave a comprehensive presentation on Ireland’s exemplary management of the financial crisis. In 2010, Ireland received €68 billion bailout from the EU and by March 2013 the Irish government returned to financial markets and is rated investment-grade by Moody’s. “How Ireland moved from close to bankruptcy to becoming solvent again is unheard of,” Szilagyi claimed. “The Irish government was very disciplined in mitigating the crisis.” However, the debt and asset overhang problem in Ireland results in banks not having enough money to credit small and medium businesses. Even though domestic financial problems still need to be solved in the country, “Ireland spearheaded the transition from the crisis,” Szilagyi concluded.

The event was sponsored by CEU Business School and the Embassy of Ireland, in association with the Irish Hungarian Business Circle and Enterprise Ireland.