Strengthening Bonds and Navigating Challenges

Swiss Ambassador Jean-François Paroz's tenure epitomizes the intricate dance of diplomacy — adapting to shifting currents while upholding core principles, fostering economic prosperity while addressing challenges, and celebrating cultural ties that transcend borders. In an interview with Diplomacy&Trade, the Ambassador explored the nuances of his second term in Hungary, delving into the shifting political landscapes, economic partnerships, cultural connections, and the ambitious Swiss-Hungarian Cooperation Program.

Ambassador Paroz's second term is marked by his resolute determination to evolve his approach, reflecting the
changing dynamics of Hungary and Switzerland, as well as his own growth. "When I started my second term here in Hungary, I was determined not to repeat my previous mandate," JEAN-FRANÇOIS Paroz reveals. “Hungary has changed, Switzerland has changed and I have changed.” The landscape has indeed transformed since his first term, with Hungary showing newfound confidence and successes, while Switzerland's relationship with the European Union evolved, accompanied by tensions and resolutions.
The Ambassador candidly acknowledges Hungary's isolation due to its official narrative about the war in Ukraine, which is hardly understandable for many European and NATO partners. "This narrative has created negative impressions and reactions in Switzerland as well," he says, emphasizing Switzerland's clear stance against Russia's intervention in Ukraine. He underscores the importance of maintaining peace without compromising principles, while highlighting the increasingly strained relations between Hungary and the EU. Although this does not directly impact Hungarian-Swiss relations, Switzerland keeps a keen eye on these developments as it seeks to safeguard Swiss interests. “The increase of the nationalistic character of Hungary’s economic policy against the backdrop of high inflation and the freeze of EU funds is a bothersome development for Switzerland and Swiss investors,” he notes.

Strategic goals for a positive future
In the face of challenges, Paroz charts a course to strengthen the Swiss-Hungarian relationship and advocate for collaboration. "Because of the war in Ukraine, the image of Hungary has become somewhat negative in Switzerland." This, he believes, affects his role as an Ambassador. “When there is negative media coverage about governance and transparency issue, I find myself on the defensive in my work as Ambassador and I have to present more expressions of concern to our Hungarian partners,” the Ambassador says. One of his prime objectives is to enhance Switzerland's visibility and communicate its positive contributions across Hungary, extending beyond Budapest.
A centerpiece of his strategy is the second Swiss-Hungarian Cooperation Program, initiated in late 2022. This 10-year program, focused on research and development, small- and medium-sized enterprises, energy efficiency, healthcare, and more, seeks to tangibly reduce social and economic disparities. Paroz asserts that the program isn't a political endeavor but a practical means to create lasting change on the ground. “Switzerland is providing 85% of the funds for all the projects included in the program. My country has committed roughly 90 million Swiss francs to the program whose main goal is to reduce social and economic inequalities and to better manage migration in Europe,” Ambassador Paroz notes.

Building prosperity
Switzerland's economic footprint in Hungary is substantial, with Swiss companies employing over 31,000 Hungarians. Paroz commends the ongoing success stories, spotlighting Nestlé's expansion of its pet food production facility in Bükk, MSC's logistics hub in Gönyű, and Stadler's capacity growth. “MSC, the shipping company, is building a multi-model logistics center in Gönyű. The center will be a hub on the Danube connecting ships and the railway. This is a project of outstanding importance, as the war in Ukraine has proven that alternative means and routes for transportation are vital,” notes the Ambassador. This economic relationship isn't just about job creation, Paroz stresses, but about fostering prosperity throughout Europe. He acknowledges that there is continued interest on the part of Swiss investors in Hungary and notes that there is a shift towards investing in innovative sectors with higher value added, such as medtech.

Addressing challenges
However, Paroz stresses that the Embassy and Swiss authorities have challenges in Hungary that they need to address. "In terms of values and mutual trust, things are not always going in a good direction. Some measures taken by the Hungarian government are having a direct negative impact on Swiss companies," he states. Paroz brings up the example of special taxes having been levied on construction companies in 2021 and government officials going on record saying that Hungary must take advantage of the war in Ukraine to expel foreign investors from the construction industry. “As a partner with Swiss interests in the Hungarian construction industry, we cannot accept this. And when government measures are taken that essentially force foreign investors to sell their company in Hungary and make them unprofitable, you are entering into a practice that is not acceptable between friends. We have an ongoing dialogue about the issue but this is a critical moment,” the Ambassador notes.

Cultural Bridges and Exchange
Beyond the political and economic spheres, cultural exchanges remain a vital bridge between Switzerland and Hungary. Paroz shares that while these interactions are primarily driven by institutions, performances by Swiss artists have enriched Hungary's cultural landscape. He highlights the performance of the Orchestre de la Suisse Romande at the Palace of Culture in Budapest, of Swiss conductor Charles Dutoit collaborating with the MÁV Symphony Orchestra, and Swiss jazz musicians taking the stage at the Opus Jazz Club in Budapest. The Embassy will continue to organize Swiss Days in various Hungarian cities, engaging in dialogue with economic partners and nurturing cultural ties. We have had Swiss artists taking the stage in Veszprém as part of the European Capital of Culture programs there and the upcoming International Book Festival will also provide a platform for intellectual exchanges.