Fidesz MEP: the left is risking financial security

The left wing is risking the financial stability of Hungary and the region, a ruling Fidesz MEP said on Wednesday.

Enikő Győri said in a statement that in a European Parliament Committee on Economic and Monetary Affairs vote on Tuesday, “the left wing forced through its proposal concerning capital requirements which, if implemented, could make the currently stable banking sector more vulnerable in the European Union’s eastern and central European member states.”

Győri said it was “appalling” that Csaba Molnár, an MEP of the opposition Democratic Coalition, supported “a proposal that aims to weaken financial stability” in Hungary. “The banking sector in our region is dominated by subsidiaries of foreign, mainly western, European banking groups,” she said.

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“In line with the approved proposal, the parent banks in western Europe would be allowed to set a lower capital requirement in their subsidiaries,” she added. Győri said this would weaken the protection of deposit holders and undermine financial stability in the region.

She said that “the fight will continue” during talks between institutions “to enforce common sense and protect the interests” of central and eastern European countries, including Hungary. “Our chances are good because several member states hold a similar position to us…” she added.