Dated as of Budapest, November 15^th, 2011

Economists and lawyers of the Hungarian Social Forum – Social Roundtable refused the position of the Central Bank of the European Union in relation to the Hungarian regulation on the closing payback made possible for the aggrieved parties of the crediting practice in Hungary. Frankfurt denied Hungary’s right to remedy one of the most serious problem of the Hungarian society, namely the foreign currency crediting problem, burdening that on the extra profits of the banks.

The declaration of Hungarian Social Forum (HSF) – Social Roundtable (SR) disclosed on Tuesday in Budapest declares that the governmental endeavours on the complete release of the social tension became elementary national interest even in case the European Central Bank proves to be against it.

In its statement dated on November 4^th, signed by Vítor Constáncio vice-president the European Central Bank challenged the Hungarian government for their breaching of their preliminary consultation obligation undertaken vis-à-vis the European Central Bank in connection with the regulation on the closing payback, and expressed its disapproval because of the consequences of the legal regulation in relation to the banks and the financial judgement of the country.

HSF cannot understand what sort of financial interest results in debilitating the inner cohesion of the EU by allowing one of the most serious problems of the Hungarian society to inflame. The foreign currency lending crisis affects cca. one third of the Hungarian population.

As the ECB made no suggestions on the possible solutions, HSF requests the ECB not only to take objections against the partial arrangements passed within national competence in favour of solving the situation, but also to show the way out from the social crisis that was caused by foreign banks ruling the Hungarian internal market.

HSF asked: how could measuring with different standards be allowed in the centre and in the peripheries? Why single market regulations did not prevail as far as crediting practice was concerned? What sort of authorisation allowed the Western European parent banks to provide defective products in Hungary (and other, former socialist countries), which products they were forbidden to sell in their parent countries?

In HSF’s opinion, position of the ECB raises also the issue of the sovereign right to the national development, since the foreign currency problem is still unsolved, which affects the complete economical growth of Hungary. Who is to grant our own growth instead of us? Which EU regulation prescribes that a country is obliged to preliminary consultation with the European Central Bank on the prevention of an internal obstruction that hinders the country’s development?

HSF explains that answering the above questions has important national aspects, but furthermore it is also main interest of the EU, as solution of the financial crisis considerably depends on the fact how the extra profits of the big financial groups will be re-arranged for social development purposes.

Disclosed by: HSF – SR