Opposition Jobbik will propose a parliamentary resolution to get the central bank set a currency exchange rate target in addition to the existing inflation target, party deputy leader Dániel Z Kárpát said on Thursday.
Jobbik has been shocked by the government taking out hundreds of billions of forints from Hungarian families’ pockets by deliberately weakening the forint, Kárpát told a press conference.
Forint Reaches Yet Another Historic Low
The government’s motivation for weakening the forint is to convince multinational companies to invest more in Hungary, he said, adding that support should rather be granted to Hungarian SMEs.
Prime Minister Viktor Orbán’s real strategic partners are the multinationals that have signed partially secretive strategic agreements with the government, he said. Jobbik wants these agreements to be re-negotiated because they “do not necessarily serve the interests of Hungary’s national economy and certainly not the interests of Hungarian employees,” he said.
Socialists demand explanation for weak forint
The opposition MSZP (Socialist Party) demands an explanation from the government and the central bank for the “historic low” rate of the national currency compared to the euro and an indication of future exchange rates, a party lawmaker said on Thursday.
The forint is trading at 340 against the European currency, László Szakács told a press conference, adding that a weakening national currency benefits only the multinational companies.
Will Historic Low Forint Lead to the Introduction of the Euro?
These companies are gaining profits because it costs them less in euros to pay a forint equivalent in wages to their employees, he said.
Hungarian households at the same time face increasing prices in almost all walks of life, Szakács said.
Viktor Orbán’s government has created “a tax haven” for multinational companies allowing them to pay only one-tenth of the “public burden” their employees ought to pay, he said.
The Socialists call for cutting taxes on wages and ending the reduction of taxes on capital, Szakács said.
In the featured photo: Dániel Z Kárpát (Jobbik). Photo by Tamás Kovács/MTI