At the Centre of Europe

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1 Budapest is a robust, full-blooded city, which suggests the strength which Europe could and should possess, if it found a way of making use of all its multiple energies Claudio Magris, cultural historian and writer At the Centre of Europe Hungary s capital occupies a strategic position between the eastern and western states of the European Union. From the beginning Budapest has committed itself to support programmes promoting a unified approach to urban problems, and it is aiding the cities of countries which joined the EU after Hungary in their efforts to narrow the gap in quality of life. Budapest was already campaigning for the interests of cities long before Hungary s complete integration into the EU in Initially it did this as a member of the Eurocities organisation of cities, then in association with the work of UCUE (Union of Capitals of the European Union), and then through direct links forged with EU bodies. With the aid of its permanent office in Brussels, Budapest also takes an active part in the lobbying activities of Cities for Cohesion and the Capital Cities and Regions networks. Our goal is that, since more than half the population of Europe now lives in cities, they should have a say in EU decision-making commensurate with their importance, and that cohesion funds and conditions should pay more attention to the interests of metropolises. As long ago as 2003 Budapest proposed that in the programme period the Cohesion Fund support should extend to urban public transport. It also called attention to the special problems of cities in what were still at that time candidate countries: the problems of decaying city centres and housing estates built under State Socialism. The European Commission s Third Cohesion Report of 2004 mentioned public transport as an area to receive support from the Cohesion Funds. In order that the urban dimension should be better represented in EU decision-making, Budapest initiated the setting up of the working group in the European Parliament dealing with urban questions. Increased focus on urban problems is guaranteed through the support of the Visegrád countries and the capitals of UCUE. As a result of our joint initiative, the decision-making bodies of the European Union included developments linked to public transport and urban rehabilitation in the types of project which may be supported through Cohesion and Structural Funds. European cities have jointly succeeded in making the support of cities part of the mainstream of structural policy and in raising recognition of its importance in the period after Budapest is now one of the main organising forces in the Central and Eastern European region. Uniting zones of all sizes across the city, we are committed to increasing Budapest s international competitiveness, and at the same time ensuring that the urban area is pleasant and liveable for its residents.

2 Budapest in European organisations for cities In 1996 the Hungarian capital became a member of Eurocities, the network comprising more than one hundred European cities. From the first, it took part in the work of the East-West Committee, and in 1998 became the chair of that committee. During its chairmanship its primary priority was the preparation of cities in candidate countries for accession to the EU. The outstanding achievement of this period was the document prepared by the Committee on the special development needs of Central and Eastern European cities. In addition to UCUE and Eurocities, Budapest plays an active role in the work of other organisations for cities. Since 2008 it has been a member of the ACR+ (Association of Cities and Regions for Recycling and for Sustainable Resource Management) international network, which was created in 1994 at the instigation of the Brussels Metropolitan Region. The network is made up of regions, towns and cities that feel a responsibility to use sustainable energy sources and, in waste management, place great emphasis on reduction and recycling. Through sharing experience, the members of the network help local authorities to develop efficient waste-management strategies, and to introduce environmentally friendly technical solutions. Since 2000 Budapest has taken part in the work of the Economic Development Forum, played a leading role in the working group dealing with Structural Funds, and has also kept in close contact with other working groups in the Forum. In as deputy chair of the Forum, then in as chair, it focused on making the Forum s work more effective. It also highlighted the need to strengthen the role of cities in stimulating economies and building up internal links within urban regions, and it successfully took the lead in urging acceptance of support for rail transport. In 2008 Budapest was voted onto the twelve-member Executive Committee of Eurocities, with the highest number of votes given to any of the candidates. During its three-year membership Budapest will concentrate on harmonisation of development in the Union s old and new Member States, raising the profile of urban areas in new Member States, and preparation for Hungary s presidency of the EU, which starts in spring The network also makes it possible for local authorities and the European Commission to communicate on regulations being prepared in the EU. As a member of the International Association of Educating Cities since 2001, Budapest has run the organisation s Central and Eastern European office, which seeks to strengthen co-operation between members through continuously updated interactive communication technology.

3 The Brussels Office In 2003 Budapest opened its office in Brussels, in order to develop a direct line of communication between European Union organisations and the Hungarian capital. The activities of the office have greatly contributed to promoting the interests of the Hungarian capital to European decision-makers in Cohesion policy, in EU policy in the area of urban transport, and in other areas of specialist urban policy. Since its foundation it has guaranteed Budapest s presence at annual institutional open days every spring, when all EU institutions open their doors to the public (the Budapest stand is in the Committee of the Regions building), and also at the autumn Open Days event, in which specialist introductions to regions and cities are given in the form of seminars. Challenges for the future Our international links The Hungarian capital maintains strong links with numerous cities across the world. The city is twinned with Vienna, Berlin, Frankfurt am Main, Lisbon, Sarajevo, Tel-Aviv, New York and Fort Worth, among others. In addition to these, it has drawn up co- operation agreements with dozens of European, Asian and American cities and regions. The aim here is that, through implementing successful programmes, to guarantee sustainable development, and to improve the quality of life of urban populations. Detailed co-operation agreements exist with Florence, Hanoi, Shenzhen, Jakarta, Moscow, Krakow and Tirana. In the future Budapest will work to ensure that cities play a bigger role in EU decision-making. We are striving for the creation of a competitive, liveable city a leader in its region, and one recognised throughout Europe. We regard our most important tasks as the following: Climate change and energy policy: at the beginning of 2009 Budapest joined the Covenant of Mayors, and in so doing committed to a 20% reduction in its own CO2 emissions through the formulation of a sustainable energy action plan, going beyond the requirements of the EU 2020 targets. The future of cohesion policies / review of EU budgetary spending: our aim is that after 2013 cities will continue to receive substantial support. The Danube Strategy (currently in preparation): we see it as important that all towns and cities on the Danube should take part in preparing the strategy, which is why we joined the initiative for regions on the Danube. Urban mobility / transport: Budapest plays an active part and makes proposals in the debates of the European Commission on action plans for urban mobility. Hungarian Presidency of the EU in 2011: our aim is that during the Hungarian Presidency in the spring of 2011, the urban dimension should be a part of the presidential programme, and that Budapest should host a conference on urban policies is the European Year for Combating Poverty and Social Exclusion: Budapest has joined the group of Eurocities members which are preparing the organisation s thematic programmes, and has made an application for the URBACT II Roma integration programmes.

4 Budapest, the capital of European innovation The ministers of the European Union responsible for research and innovation programmes decided unanimously in 2008 that the headquarters of the European Institute of Innovation and Technology (EIT) should be located in Budapest. Budapest s rivals for this honour were Jena in Germany, Wroclaw in Poland, Sant Cugat del Vallès in Spain, and Vienna and Bratislava (bidding jointly). During the selection procedure the Hungarian capital had an advantage over its competitors in that it was not the base of any other EU agencies, and that its geographical location means that it is also open and accessible to countries outside the EU. Budapest is the country s only true innovation centre, and more than 70% of the Hungarian R+D sector s gross product is concentrated in the capital. Budapest is home to 44% of the nation s research centres, 60% of employees in R+D, and two-thirds of R+D expenditure; thus the average amount of expenditure per researcher in Budapest is double the average for Hungarian researchers outside the capital. The driving engines of the modern economy pharmaceuticals, telecommunications and information technology are concentrated in Budapest. The EIT is of strategic importance to Budapest because it directs Europe s attention towards Hungarian scientific life, it can encourage investment and mobilise private capital. The institute can be a facilitator for collaboration between higher education institutions, research organisations and private companies, and it can strengthen university workshops. The foundation of the EIT is an important step at a European level also, as it can help to narrow the technological gap between the continent and its competitors in the US and Eastern Asia. The innovation centre will be based in the city s Infopark. European developments With the support of the European Union, Budapest will implement in the programme period numerous developments which will radically change the city s life. Our target is to increase the city s competitiveness, the ability of Hungary s less-developed regions to narrow the gap between themselves and more developed regions, and promotion of economic and social prosperity in the European community. The Hungarian capital is preparing dozens of projects, primarily for infrastructure, as a result of which the Hungarian state has so far decided on around million forints of support, allocated in three rounds to twenty investment projects. Budapest has been able to allocate 95% of the funds available to it within the Central Hungarian Operative Programme. Budapest has so far received support for construction of the Metro 4 underground line and the Central Sewage Treatment Plant, the renovation of Szabadság híd ( Liberty Bridge ), the building of a spine road running through Csepel Island (District XXI), the Rákoskeresztúr (District XVII) bus corridor, and noise barriers on the approach section of the M3 motorway. In addition to these, the government has allocated funds for the renovation of Margit híd ( Margaret Bridge ), the City Park Ice Rink, and Szent Imre ( Saint Emeric ) and Uzsoki utca ( Uszoki Street ) hospitals, the creation of new regional integrated vocational training centres, P+R facilities, and an integrated water management scheme for the South Budapest region. Budapest has also made applications for the construction of the Metro 4 underground line, development of tram lines 1 and 3, the revitalisation of Népliget ( People s Park ), and renewal of sewer lines in the city. In 2009 the Hungarian capital will submit funding applications to the EU for the development of cycle transport infrastructure, construction of the South Buda bypass road, modernisation of the BKV (Budapest Public Transport) traffic control system, the Heart of Budapest programme (aimed at reviving the city centre and calming traffic), and the development of a system of bus lanes. Transport and public utilities services, the development of education and healthcare infrastructure, and renewal of the historic city centre open up new perspectives to Budapest: they will also stimulate the economy, and significantly improve the quality of life in Budapest

5 City of Muses What other sort of city could Budapest possibly be? A Paris, an Amsterdam, a Stockholm? Would we really recline attractively on the Danube s banks? Are our bridges just a beautiful, reflected illusion? Would we have an insider s knowledge of back-street restaurants, of a little pub or better still a woman, a lady where goose liver fried whole in onion and cloves would delight our senses (better than we could get in Lyon); and would there be these vibrant coffee-houses with their sensual, fin-de-siècle decadence In a word: atmosphere! This peculiar, echoing, hidden dance which differentiates cities from each other and faces in the street, which our own bathe in and are reflected in, so that we can know something of ourselves that we couldn t know anywhere else Let s get to the point: we are a little double-lidded jewellery box in the lap of the Carpathians. Péter Esterházy, author There are seasons when Budapest is almost drenched with the joy of living: from spring to autumn, at any rate. Major events include the internationally famous Budapest Spring Festival, the summertime weekend cultural and entertainments programmes held on a Chain Bridge off limits to cars, the Budapest Búcsú ( Farewell Festival ), the hugely popular Sziget Festival (the Island music festival), the Budapest Autumn Festival of contemporary arts, and the Festival of Crafts. In addition to these is a host of venues dedicated to culture and recreation Danube boats, riverside promenades, pedestrian streets, museums, coffee houses, theatres, cinemas, galleries and fashionable dive bars which ensure that everybody can find activities that suit them. Naturally the city does not go into hibernation for the winter, either: major tourist attractions such as the Vörösmarty Square (Vörösmarty tér) Christmas Fair guarantee this.

6 It is not only Budapest s receptiveness to leading artistic endeavours from the wider world that makes it a truly multicultural city, but also its acceptance and promotion of minority cultures. This open-minded spirit has helped create, among other events, the Roma Arts Festival and the Jewish Summer Festival. The latter has been organised annually for the past ten years, and is now one of the most visited series of cultural events in Budapest. In summer a host of open-air events invade the capital s cultural landscape. The joyous celebration of freedom that is the Budapest Búcsú ( Farewell Festival ) and the symphony concerts staged in Heroes Square (Hősök tere) always attract large numbers of city residents and tourists; so too does the series of events over the summer months called Summer on the Chain Bridge. For years it has been a summertime custom in Budapest for world-famous musicians to perform in free open-air concerts. The unchanging feature of these performances of light classics and classical music is the Budapest Festival Orchestra, under the baton of its conductor Iván Fischer. Budapest, Festival City Here it is impossible to be bored. In Budapest there is a continuous flow of events and likewise a never-ending parade of world-famous Hungarian and foreign artists and exhibitions makes its way through the city. The Budapest Spring Festival (mentioned above) has created a tradition of jointly celebrating Hungarian and world culture, with its Hungarian and foreign classical and contemporary concerts, dance productions, theatrical performances and art exhibitions. This festival forms a cultural bridge linking the art of the continent s eastern and western halves, and since 2005 it can boast the European Cultural Award. The capital s other major, internationally famous series of cultural events is the Budapest Autumn Festival: a new, progressive, experimental showcase for contemporary arts established barely more than one and a half decades ago. The Sziget Festival a week-long popular music event staged every August on Hajógyári ( Shipbuilding ) Island quickly gained an international reputation; it has, over several years and under several names, attracted huge audiences with its programmes of famous musicians.

7 Cultural Alternatives The A38 Hajó ( Boat A38 ) is an extraordinary alternative cultural institution, which broadens the range of challenging programmes on offer to residents and tourists alike by staging high-quality Hungarian and foreign jazz, contemporary, experimental, folk and world music performances. It also plays an important role in Budapest s city marketing, as a member of Europe s most important network of independent civic cultural venues and organisations: Trans Europe Halles. An important, regularly repeating programme is the My City festival series, in which a famous personality will present a subjective guided tour of his or her chosen city, creating an entertaining introduction through musical events, exhibitions and specialist discussions, and do the same for Budapest in a similar series abroad. An almost obligatory destination for Budapest residents and visitors is the Hungarian House of Photographers, opened eight years ago in the late nineteenth-century block of studios once occupied by Manó Mai (one of that period s most famous photographers). Housed in the same building is the Budapest Gallery, which is continually staging new exhibitions. Similarly worth a visit are the Metropolitan Zoological and Botanical Gardens, which attract at least one million visitors a year, and which regularly add new display areas and plant and animal species to their collections (first seen more than 140 years ago). The Hungarian capital is not only rich in traditional productions tied to permanent buildings or venues: numerous alternative venues, temporary groups and spontaneous performances also add spice to Budapest s cultural menu, thus enabling it to always remain fresh and exciting. Aquincum Museum in Óbuda is an unmissable sight which features finds from the ancient Roman imperial border town, and in which objects never previously displayed are on view in a recently acquired building. The Wenckheim Palace which houses the Budapest Szabó Ervin Library in the heart of the city is worth visiting, not only for its marvellous exterior, but also for the richest archive collection on the subject of Budapest; another attraction in this building, which underwent complete renovation a few years ago, is its collection of English language material, acquired from the British Council. This historic yet also modern building is part of an entire network of libraries in every district across the city, and these are also being renovated in sequence.

8 We have not yet even mentioned some of the country s most famous state-owned cultural institutions: the State Opera House on Andrássy út (Pest s Champs Élysées ); the Fine Arts Museum in Heroes Square (Hősök tere); the Transport Museum and Vajdahunyad Castle in the City Park; the Palace of the Arts and the National Theatre, recently built on the bank of the Danube at the foot of Lágymányosi Bridge; the Millenáris Centre a former factory site in Buda transformed into a high-quality arts complex; and the Buda Castle complex, where one finds the Budapest Historical Museum, the National Gallery and the Széchényi Library. The list could be extended much further. We are also proud of one of our most well-known and acclaimed cultural ambassadors: the Budapest Festival Orchestra. Recently music critics voted the orchestra among the ten best in the world the first time such an honour has been achieved by an ensemble from Central and Eastern Europe. The Festival Orchestra was formed as part of a Budapest City Council initiative in 1992, changing from an informal ensemble into a permanent orchestra. In more recent years it has operated as a foundation enjoying solid state and city council support, and it entertains the music-loving public with more than thirty sensational concerts in Budapest every year. In 2009 the Festival Orchestra launched a year-long Hungarian cultural festival in the USA with a highly successful concert at New York s Carnegie Hall. The orchestra also wins plaudits under the direction of Zoltán Kocsis, and it contributes to popularising of the work of Béla Bartók worldwide. An abiding asset of ours, that stands comparison with anywhere in Europe, is a theatre and art-house cinema network offering a uniquely diverse range of programmes (the latter won the Europa Cinemas Award a few years ago). Presentations by the Katona József Theatre, the Radnóti Theatre or the Művész Cinema are of famously high quality, and extremely popular; but a dozen other theatres and cinemas should also be visited, because all of them have their own atmosphere, a unique repertoire and loyal audience.

9 World-famous Spa Culture When one explores Budapest, one encounters at every turn restaurants offering both the special flavours of Hungary and of the world; one also finds bohemian bars, popular with the young and with foreigners, hidden away in old courtyards. Near the Danube and at the foot of the Buda Hills there are historic thermal baths, blending architectural beauty with the pursuit of health. Budapest is one of the best-endowed cities in the world in terms of thermal and medicinal waters. Budapest s unique thermal bath culture, supplemented by traditional lidos, is a long-standing attraction for visitors from both outside the capital and from abroad. Of the thirteen historic, protected thermal baths currently operating in the country, around nine are in Budapest. Some of the hot springs on the Buda side of the Danube were already being used by the Celts and the Romans. Across the city hot water comes up to the surface in a total of 130 locations, providing 30 million litres of tepid water and 40 million litres of hot water every day not many cities boast such an asset. The Széchenyi Baths are in the City Park, the Gellért Baths are at the point where Gellért Hill meets Szabadság Bridge, and the Lukács Baths in District II offer comprehensive therapy. The major renovation works carried out here, and the appeal of our other thermal bath complexes contribute to raising Budapest s health and tourist services to an even higher level.

10 Budapest for Visitors Tourism is now one of the city s sustaining resources. Historical circumstances have contrived to make Budapest a multilingual, multicultural, colourful and receptive city, and we do not want to give up this tradition. Barely a few years ago our city produced the most dynamic growth in tourism of any European city, and today the trends are still favourable, as tourism from European and overseas countries is increasing at an annual rate of 10-20%. It is no coincidence that here more than one hundred thousand people make a living either directly or indirectly from tourism, and that the industry contributes 8-8.5% of Hungarian GDP. Budapest Tourism Office Kht. strives to create favourable conditions for the development of tourism in the capital through marketing activities and information services, accommodation and events publicity, ticket services, sale of gifts and the operation of information offices. In the range of tourist attractions on offer, special emphasis is given to internationally famous series of cultural events which significantly enhance the city s appeal; examples are the Budapest Spring Festival, the Budapest Búcsú (Farewell Festival ), the Sziget Festival, the Budapest Autumn Festival, and atmospheric open-air events such as Summer on the Chain Bridge or the Christmas Fair in Vörösmarty Square (Vörösmarty tér).

11 Famou s Hungarians some o f t h em st ill ac t ive in Budapest 72 hours) it provides one adult and one child (no older than 14) free travel on public transport, and free or reduced rate admission to sixty museums and other attractions. Holders can enjoy sightseeing, cultural and folklore events at a reduced price; they can play sport, rent a car, and visit restaurants and thermal baths for less; and the card also provides travel insurance at no extra cost. The Budapest Card can be bought not only at underground stations, hotels, the airport and larger foreign tour operators. It can also be ordered online at As we are at home here with both tradition and development, take our word for it: Budapest is worth the visit, a city worth discovering! György Faludy poet, translator György Konrád author György Kurtág composer György Ligeti composer Péter Eötvös composer Ferenc Puskás footballer Mari Törőcsik actress Béla Bartók composer Zoltán Kodály composer Zoltán Kocsis conductor, pianist Iván Fischer conductor Ferenc Lehár operetta composer, conductor Miklós Jancsó István Szabó Andrew Vajna Ignác Semmelweis pioneering physician Loránd Eötvös physicist Ányos Jedlik inventor of the dynamo Donát Bánki inventor of the internal combustion engine Ottó Bláthy inventor of the transformer Leó Szilárd nuclear physicist Ede Teller nuclear physicist János Neumann mathematician, developer of the computer Albert Szentgyörgyi Nobel prizewinning physician György Békésy Nobel prizewinning physician Dénes Gábor Nobel prizewinning physicist György Hevesy Nobel prizewinning chemist Imre Kertész Nobel prizewinning author János Harsányi Nobel prizewinning economist György Soros Ernő Rubik inventor László József Bíró inventor of the ballpoint pen

12 City of Verve Budapest is the loveliest city on the Danube Budapest gives one the physical sense of being a capital, with the urbanity and grandeur of a city that has played its part in history Even the giantism afflicting the metropolis takes on this old-time grace, which seems to make room for provinciality and offers itself as a background for joie de vivre, with its riverside embankments and long boulevards in which life seems to flow happily and gloriously, with the pulsing of a robust, uncaring health. Claudio Magris, cultural historian and author Budapest plays an exceptionally dominant role in the life of Hungary, as the sort of powerful economic and administrative centre which is equalled by few capital cities in Europe. There are significant advantages and disadvantages to this. Budapest is on the one hand the most highly cultivated Hungarian city, with a higher general standard of living, better infrastructure and employment opportunities and uniquely diverse services; on the other hand, its concentration of economic and administrative functions results in congested roads and public transport, and more pollution. It is therefore necessary to simultaneously achieve rapid and healthy urban development. From the beginning, the City Council has laid great stress on large-scale projects capable of improving standards of living generally, increasing the city s liveability and its future prospects for capital investment; the aim is not merely creation of a youthful image for Budapest, but preservation and renewal of the city s essential values.

13 Budapest, the Engine As far as figures are concerned, Budapest is clearly the country s economic engine, since although only 17% of the Hungarian population lives here, 37% of the nation s GDP is produced in the capital, with another 10% produced in the surrounding areas. For this reason they invest 7500 billion Forints annually in the capital s region, a further 2000 billion in the agglomeration, and just 4500 billion in the rest of the country. An even better indicator that Budapest is worth investing in is that the amount of their own capital that foreign companies have brought to the city has increased by 124% in four years. While per capita GDP in Budapest is three times the Hungarian provincial average, at the beginning of the millennium it was still only twice the average. Hungarian per capita GDP is 35% lower than the EU average, but in Budapest it is 20% higher. The country s main economic, logistics, transport and tourist activities are concentrated here, meaning that Budapest fulfils its commitments not only to itself and its residents, but also to Hungary. Budapest organisations annually contribute 45% of the nation s total investment. This means that around three times as much new investment capital is created per capita in Budapest than outside. In Budapest the economy is stimulated by the creation of an additional thirty-two firms every day. The employment rate in the capital is far higher (57%), and the unemployment rate is far lower (4.2%) than nationally (7.6%). Unemployment is also significantly lower than the EU average (6.5%). Since the fall of Communism the capital can claim the largest share of business partnerships, with the figure currently standing at 40%; this also means that every week more than two hundred new Budapest-based enterprises are helping to drive the country s economy. Several facts attest to the ongoing transformation of Budapest s economic structure. In the past ten years the majority of investment has been concentrated in the service sectors, with the result that the number of people working in them has doubled. Currently the service sector accounts for 50% of the workforce living in Budapest, which is 17% higher than the national average. Seventy-five per cent of foreign capital of which almost two-thirds has come into Budapest since the fall of Communism - now flows into the service sector, mostly into the property / real estate, economic services and financial brokerage areas. A significant contribution to the competitiveness of our economy is made by the fact that, even by European standards, the proportion of value added in services is significant, standing at 80%. Another factor is that the driving forces of a modern, high technology economy are concentrated here: pharmaceutical manufacturers, telecommunications, IT and media companies. Budapest offers investors a highly qualified work force, developed infrastructure and a continuous flow of knowledge industry centres; the latter, through collaboration between high technology enterprises and universities of European standing (numbering many Nobel prize-winning scientists among their alumni), have helped bring the Hungarian capital to the forefront of innovation. The City Council also contributes to Budapest s development. In recent years we have spent an average of Forints per resident on operations and development: approximately of this has been spent on the city, and on operating schools, hospitals, care homes and cultural institutions. Through continuous development we wish to create the sort of favourable investment climate which can enable investors to bring their new services and developments to the capital.

14 Meanwhile, Budapest is rapidly moving forward. We have started rebuilding the city from the foundations up, with renewal of the sewage and water supply networks, gas supply and district heating lines, and dilapidated roads. The tempestuous history of the last century and the neglect of the communist era left our historic buildings and once stunning public buildings and districts in a state of extreme disrepair. In response we created an urban rehabilitation fund for the renewal of entire blocks and action areas, and we seek to protect our particularly noteworthy protected buildings through our historic buildings preservation fund. Since the fall of Communism, tens of thousands of buildings have been restored through joint action between owners and local councils, and although much remains to be done, some projects which have received international awards speak for themselves: the rehabilitation of city blocks in Ferencváros (District IX) and Józsefváros (District VIII), the renovated Central Market Hall (Nagyvásárcsarnok), and the reconstruction of buildings linked to the complete renewal of the southern part of Váci utca ( Vác Street )and Andrássy út ( Andrássy Street ). We have also laid great emphasis on the rebuilding of the poorer areas of the city. In two districts distant from each other our social urban rehabilitation programmes have been aimed at engaging local residents in the revival of their surroundings. In addition to improving buildings, squares and parks, we are also promoting initiatives on law and order, educational standards, expansion of the social welfare network and job creation. City of the Future These small but important details are bound together by the renewal of roads and bridges; by investments in healthcare and social welfare; by the city schools output of highly trained specialists and outstanding Hungarian scientists and artists; by the renovation and promotion of our worldfamous theatres and our cinema network; and by the almost continuous series of artistic festivals and fairs running from spring to autumn. Together, all of these things make Budapest a city of the future; here everybody Hungarian or foreign, from the capital or the provinces can find what is to them economically and culturally important, spectacle, entertainment and homeliness. The City Council consistently directs receipts from tax payments made by businesses towards those projects which add value. Over the course of eighteen years, a total of 1500 billion Forints worth of business tax the city s main independent source of income was received by Budapest s twenty-four local authorities. It is an indication of the strengthening of the approximately 320,000 companies operating in Budapest that year on year they have contributed ever larger sums to developments: while in 1991 the total stood at a mere 1.1 billion Forints, in 2008 they assisted development of the Hungarian capital with contributions of 195 billion Forints. Thus at least a quarter of the city budget can be spent financing new development, and in some years the figure is more than 40%. here we invest loans raised on the basis of favourable credit ratings issued by large international credit-rating agencies Moody s and a Standard & Poor s among others since we know that if we create a favourable economic climate, not only will it benefit companies and private individuals relocating here, but also ensure our position among the most competitive European regions. This attitude has led us to entrust the organisation of certain services to specialist operators through the complete or partial privatisation of local authority companies, and to direct the funds thus acquired towards further developments. Today private investors are involved in the operation and development of Budapest s Gasworks, Water and Electrical supply companies, to name a few.

15 A Year in the Life of the City There are also developments here which can be counted among the largest public projects in the entire continent. Such, in the area of public transport, is the construction of the new Metro 4 underground line, an EU-funded project which will connect the city s eastern and western areas to the centre. Another such project is the Central Sewage Treatment Plant: a huge environmental protection development which will completely cleanse the Budapest stretch of the Danube. These projects will be completed and contributing to making the Hungarian capital healthier and easier to travel around by 2011; then, as host city for the presidency of the European Union, Budapest will be even more in the spotlight. If we consider only the projects starting, in progress and coming to completion in a single year, we can clearly see the seriousness of the City s renewal intentions. Several developments and renovation projects focused on the Danube will be carried out in A number of projects will be in progress above it, below it, and on both banks. In the first half of the year excavation works under the river on the tunnel for the new Metro 4 underground line will reach Fővám tér ( Customs House Square ) on the Pest bank of the river, connec- ting it with Gellért tér ( Gellért Square ) in Buda. Above ground the renovation of Szabadság híd ( Liberty Bridge ) will be completed, and the renovation of Margit híd ( Margaret Bridge ) will begin. Erzsébet híd ( Elisabeth Bridge ) will soon receive new illuminations. A main sewer linked to the new Central Sewage Treatment Plant is being constructed under the Danube s embankments, and by the autumn work on this as well as widening of the embankments themselves will reach completion. Rehabilitation of the Közraktárak (Public Warehouses) will also continue. In brief, the Budapest of the future will use the Danube as its foundation stone, just as in the nineteenth century the construction of Lánchíd ( The Chain Bridge ) represented the first step in Budapest s unified development. The year s biggest project promises to be the renovation of Margit híd, together with the addition of illuminations and a cycle route, which will be completed in The bridge will be completely closed to traffic, but throughout the work pedestrian and public transport one of Europe s busiest tram routes, incorporating Siemens trams which were bought brand new only a few years ago will continue to operate. The first stage in the renovation of Szabadság híd the renewal of the tram line has already come to an end, and this year sees completion of its rebuilding, the installation of illuminations and reopening of the traffic lanes. By the time cars are able to cross over from Gellért tér to Fővám tér, the excavation equipment for the Metro 4 underground line will also have made the journey under the riverbed. Thus, as with Metro 2 underground line, a new Danube crossing parallel to the existing bridges will when the new line is finished increase physical links between Buda and Pest. In 2009 the most important work on the underground line will be tunnel excavation: according to the programme, the drilling equipment will finish tunnelling works on the 7.3 kilometres between Etele tér ( Etele Square ) and Baross tér ( Baross Square ) by early Meanwhile, of course, the stations will be being built apace, and internal construction work will continue wherever drilling has already been completed. In 2009 the first Alstom train carriages are also arriving for the Metro 2 underground line, which underwent complete renovation over a five-year period. Completely automated Alstom train carriages will operate on the Metro 4 underground line as well. Similarly, the extension of tram lines 1 and 3 will serve to link districts on either side of the Danube. If the European Union tender is successful, tram line 1 will be one kilometre longer, and tram line 3 will be 720 metres longer. Tram line 1 will cross Lágymányosi híd ( Lágymányos Bridge ), and its terminus will be in Budafoki út ( Budafok Road ). The new tram stops will make it easier to reach Infopark and the Lágymányos university campus. The new section of tram line 3 will extend to the Ráckevei HÉV (suburban rail line), and the long - distance and city buses operated by Volán and BKV respectively on Soroksári út ( Soroksár Road ) at the upper station in the Pesterzsébet district. Here a new intermodal transport hub will be created. On both lines there will be an integrated investment, involving new stops, new vehicles and track reconstruction.

16 Another project will also underline the importance of Danube crossings to the life of our city, as well as enhancing the World Heritage site of the Danube riverside panorama. Illuminations on Erzsébet híd ( Elisabeth Bridge ) located between the 160-year-old Lánchíd ( Chain Bridge ) and Szabadság híd ( Liberty Bridge ) will be installed with Japanese financial assistance, and on Hungarian national holidays the bridges pylons may be lit up in the colours of the nation s flag. Renewal will also extend to the areas neighbouring the Danube. Two projects are in progress which will significantly strengthen the complete restructuring of Budapest s central areas, the city s liveability, and its attractiveness to commerce and tourism. The so-called Heart of Budapest Programme will be an integrated programme incorporating rehabilitation of public space, landscaping and traffic calming; the project area covers the streets and spaces which form the gateway to the city centre. A continuous urban promenade will be created from The Chain Bridge south to The Public Warehouses, and a new city centre high street punctuated with city squares and diverse shopping facilities is planned. This will cross the Kiskörút ( the Lesser Ring Boulevard ), which skirts the city centre. All this links into another programme, which will create a new Forum a square devoted to community functions and an associated building group on the Kiskörút side of the City Hall. The City Hall Forum and its associated buildings were designed by Erick van Egeraat the winning entrant in an international design competition and are due to be built at the beginning of the next decade. As far as the development of social services is concerned, the premature births ward in the nation s largest children s hospital will be extended and rebuilt. Reconstruction works will also start on Szent Imre (Saint Emeric) Hospital and Uzsoki úti (Uzsok Road) Hospital regional healthcare centre. The restructuring of Budapest s vocational training will continue with the construction of four new regional integrated vocational training centres and the development of technical facilities, funded from a successful EU tender. The vocational training centres are places for practical training, complete with the latest equipment; other institutions carrying out vocational training will be linked to these four, educating young people in a number of fields (including technical and financial/ economic ones), according to the needs of the market. Alongside these, a further four middle schools will be refurbished this year. And last but not least, one of Central Europe s largest urban rehabilitation projects combining the resources of local authorities and private companies will continue at Corvin sétány ( Corvin Promenade ) and its surroundings. Budapest Looks Forward Alongside the above-ground developments associated with the Metro 4 underground line, and the construction of a pedestrian street in the city centre as part of Heart of Budapest Programme, the most important project will be the part-privately financed Public Warehouses (Közraktárak) development. The CET ( Central European Time ) cultural and leisure centre due for completion in the summer of 2010 will be a new symbol for Budapest. Between the renovated historic port buildings and the continuous series of embankment promenades and terraces there will rise an imposing 160-metre-long, undulating, whale-shaped structure in glass, steel and aluminium. The architect is Kas Oosterhuis. The three-year road renewal programme is continuing, in which 38 kilometres of the city s main roads will be resurfaced. Two hundred new waste recycling collection points will bring the total number of such facilities in the city to one thousand one hundred, helping to reinforce Budapest s environmentally conscious character. All of the above developments are based on a consistent urban policy document which contains the blueprint for the city s medium-term future: The Podmaniczky Programme. Alongside a clear set of values, this programme sets out strategic aims, the achievement of which is the guiding principle for not only the City Council, but for all players in the city s development. Among other things, the Programme outlines the priority of Danube riverside developments, congestion relief, the renewal of city-centre areas and the creation of suburban district centres, as well as marking out a series of further projects aimed at economic revitalisation and infrastructure development. The programme aims to renew and modernise the city s transportation, buildings, environment, public sanitation, schools and hospitals in a series of 130 interconnected developments running until 2013 and utilising approximately 2100 billion Forints of local authority, state, EU and private sector funding. Budapest has therefore been changing before our very eyes, from the ambitious newcomer of the past, through the present regional centre with its huge reserve of new opportunities, to its future as one of the most promising of world cities. At the same time Budapest will always remain a city of values and of feelings: it is impossible not to love this city when we can see, beneath sweeping interrelationships and permanent activity, small delights to wonder at