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2024 May Be More of the Same, but Hungary Is Ready for It: A Buzz Interview with Laszlo Hajdu of HP Legal

2024 May Be More of the Same, but Hungary Is Ready for It: A Buzz Interview with Laszlo Hajdu of HP Legal

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With Hungary's economic and legal outlook plugged into global uncertainties and no shortage of those, two market sectors still stand out in terms of potential – energy and agriculture – according to HP Legal Partner Laszlo Hajdu, who, looking at the fundamentals, shares an optimistic view of the country's future.

"The global economic landscape this year seems to be predominantly influenced by three major factors: the ongoing war in Ukraine, tensions in the Middle East, and the upcoming US elections," Hajdu begins. "These events are pivotal and their developments are crucial to monitor as they hold significant sway over the global economy, and, consequently, our country."

Focusing on Hungary, Hajdu says that he is "quite optimistic" about its market. "Specifically, two sectors show great potential – energy and agriculture. There’s a positive momentum in the energy sector, particularly with the introduction of important legislation aimed at boosting renewables like wind projects and energy storage projects," he explains. "This shift is largely a strategic move to reduce our dependency on Russian energy." Moreover, he is of the view that "this is a positive direction and reflects the government's proactive approach to diversifying energy sources." Additionally, he says that, in the agriculture sector, "there are several promising green-field development projects in the pipeline, which indicates a healthy level of activity in this sector."

In terms of the Hungarian M&A mid-market, Hajdu does not expect significant growth in the number of transactions compared to 2023, because yield expectations are still too high. Therefore, he says, "there is a notable trend of Hungarian businesses expanding abroad."

Hajdu then reports that the banking and finance sector in Hungary is closely aligning itself with the developments in the energy and agriculture sectors. "There are already several financing deals in the pipeline," he says. "The direction looks promising, especially with the government's support. The national bank's decisions on interest rates will also play a crucial role in enhancing lending activity."

Hajdu also highlights a particular legislative movement: "One notable aspect is the introduction of government pre-emption rights on certain transactions," he says. "This has been viewed differently by market players; some see it as a major obstacle, while others don't perceive it as a significant hindrance," he explains.

Ultimately, Hajdu adds that he expects the "legal sector in Hungary is likely to remain stable, similar to last year. Despite macroeconomic challenges, this year could be a period of consolidation. The struggles of last year are likely to stabilize, which should be beneficial for the legal market overall."

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

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