Just over a decade ago Budapest was trapped in a communist-era time warp; these days it is a city that is seriously going places. Communism is well and truly history – the young are eager to adopt Western European values, while remaining in a deep relationship with Hungary's fascinating past. The traditions and history of the Magyar people are still vitally important, as is the ubiquitous mobile phone, in a Hungary that has been a member of the European Union since May 2004.

The key to Budapest lies in its history, marked by alternate periods of great wealth and prosperity and devastating eras of political and social upheaval. The Magyars view their history not in black and white but in gold and silver. The first Golden Age coincided with the reign of Renaissance King Matyás (1458-90). The second Golden Age was symbolised by the 1896 Millennium celebration in Városliget (City Park) and the Silver Age was the 20th-century inter-war period, when the likes of Evelyn Waugh and the Prince of Wales frequented Budapest's spas and casinos. Balanced against the good times, however, there is the Turkish victory over the Hungarians in 1526 (with the ensuing rebuilding of Buda as a Turkish capital); the Hapsburg rule that continued to deprive Hungary of its autonomy until 1867; the devastation caused by World War II; and Russian control, only lifted in 1989. These significant events have turned the Hungarians into a flexible and resilient race, proud of their national heroes.

The modern Budapest was born in 1873, when Buda, Óbuda and Pest were officially joined. Today, the city is composed of 23 districts (kerületek), each designated on maps, street signs and addresses by Roman numerals (I to XXIII). Buda and Pest still remain distinct, however, creating an interesting west bank-east bank contrast. Hilly Buda is situated in the west, with its narrow cobbled streets and mixture of medieval and neo-classical buildings almost totally reconstructed after World War II. Flat Pest lies to the east, with its wide boulevards and art deco styles. The city is a mixture of Turkish, Venetian, Empire and art nouveau in a crazy mosaic of mismatching styles.

Budapest has a continental climate, with extreme differences in temperature between the winter and summer months. Snowfall is frequent in winter and rain is fairly common all year round. Almost two million people live in this cosmopolitan city (while roughly a quarter of the country's population live in the greater metropolitan area), making Budapest the political, intellectual, commercial and cultural capital of Hungary.

EU membership and a flurry of new budget airline routes have made the streets noticeably more crowded as other Europeans discover the charms of a city that not only boasts beautiful architecture, but also offers visitors first rate attractions. These days booming Budapest is clearly a city on the move in both the realms of tourism and business; not even the record-breaking floods of spring 2006 could hold back the inexorable tide.