How to setup a good collation?

Example database on a Unix system:

CREATE DATABASE test
TEMPLATE = template0
ENCODING = 'UTF8'
LC_COLLATE = 'hu_HU.UTF-8'
LC_CTYPE = 'hu_HU.UTF-8'
CONNECTION LIMIT = -1;
\c test
create table a (name text collate "hu_HU.UTF-8");
insert into a values ('a');
insert into a values ('á');
insert into a values ('Á');
insert into a values ('b');
insert into a values ('e');
insert into a values ('é');
insert into a values ('É');
insert into a values ('o');
insert into a values ('ó');
insert into a values ('ö');
insert into a values ('U');
insert into a values ('Ü');
insert into a values ('Z');

select name from a order by upper(name) asc;

Results in:

"a"
"b"
"e"
"o"
"U"
"Z"
"á"
"Á"
"é"
"É"
"ó"
"ö"
"Ü"

Which is bad. The good order should be the following:

"a"
"á"
"Á"
"b"
"e"
"é"
"É"
"o"
"ó"
"ö"
"U"
"Ü"
"Z"

What is wrong with my collaction setup?

Thanks,

Laszlo