France-Hungary: strategic relationship

For Diplomacy and Trade, French Ambassador René Roudaut speaks about the realization of his goals, the issue of transparency and the need for stability and predictability in investor relations in Hungary as well as developing cultural relations.

When taking up his position as French Ambassador to Hungary in 2007, René Roudaut set several goals for himself. These included increasing the coordination of French and Hungarian positions concerning prioritized EU matters such as common agricultural policy, energy, research and development; backing the efforts of French companies trading or investing in this country; developing cultural links, the cultural presence of France as well as cultural cooperation between the two countries. In an interview with Diplomacy and Trade, he speaks about the realization of these goals, the issue of transparency and the need for stability and predictability in investor relations in Hungary as well as developing cultural relations.

The French Ambassador finds a parallel situation between the year after his arrival and 2011: “in 2008, there was intense preparation for the French EU Presidency, and now, we are in the time of the Hungarian EU Presidency.” For the latter, France provided useful assistance. “There have been lots of meetings of specialists between the Hungarian and French administrations at all levels in the past few years,” the Ambassador explains. “The political relations between the two courtiers are cordial and rich, not only at the government level but also at a level we often forget about: the local partnerships between towns, between counties. We have nearly 120 of them.”

French investors

As for helping French companies present in this country, “I must say this has been the most time demanding aspect of my job. The two countries managed to agree upon a strategic partnership agreement signed two years ago. Despite a difficult economic and financial environment, our companies showed interest in Hungary,” he adds. Of course, the time of crisis has been difficult for everybody. There have been some Hungarian government decisions, like the French shareholder Suez Environnement being expelled from the local waterworks by force in the southern Hungarian city of Pecs, which “had a negative effect on the perception of international investors. It is simply devastating for the image of the country,” Rene Roudaut points out.

“Investors perfectly understand that the government has to face a tough situation to balance its budget. Nobody likes to pay taxes but the investors sort of understand the crisis taxes. The big problem here is the lack of predictability and the lack of stability of the fiscal framework. This is what I insist on, as do many of my fellow ambassadors here in Budapest, when discussing issues with the government administration. We insist on the necessity of having a clear framework and a minimum of stability and predictability. We all have examples of decisions which have been taken without any consultation. Cooperation is in the interest of the companies and should be in the interest of the government, as well,” he stresses.

Cultural issues

Regarding the cultural link, Rene Roudaut is proud to say that “we now have at least 12 French-Hungarian bilingual sections in secondary schools all over Hungary. Also, students can obtain ten French or Franco-Hungarian diplomas mainly in business management and law. In addition, the French language is taught in the French Institute and in the five major Hungarian cities.” There is also a series of intellectual exchanges between the Hungarian and French institutions. In Budapest, there have been two great exhibitions recently: Monet and Cezanne, while Parisians can attend the exhibition of the Eszterhazy collection. Since last September, Hungarian is an official language for bachelor degree in France.

Rene Roudaut believes exchanges are beneficial in business life, as well. At the end of this January, he was in the group of ambassadors who met Prime Minister Orban to discuss transparency. “We covered the subject quite freely and he agreed on better coordination; better exchanges between the business community, the diplomats and the administration. He even suggested the establishment of a sort of investment council for regular exchanges and problems raised by the business community. We’re working on it now, and we’ll see what comes out of it,” the French ambassador concludes.