Legal action against state guarantees for banks

CADTM, the international network of committees against the illegitimate debt of third world countries, now working mainly within the European Union, filed a formal complaint against the Belgian State. ATTAC Liège and ATTAC Bruxelles2 joined the action. The Belgian government granted a state guarantee of no less than 54 billion Euros, about 15 % of Belgian GDP, to the creditors of Dexia, a Belgian-French bank in difficulties.

This guarantee, according to Eric Toussaint, chairman of CADTM, is not a solution, but will worsen the situation of public finances in Belgium. The government gave powers for twenty years to the Minister of Finances and this constitutes a major violation of democratic principles. Indeed, parliament has not been consulted. CADTM is not against the fact that banks receive help, but it does require a democratic debate on the conditions and a debt audit is necessary to see what part of debts are illegitimate.

Belgian tax payers have already paid in the past three years around 17,6 billion Euros for saving banks. At the same time, the welfare state is being slowly dismantled and living conditions certainly do not improve.

This legal action is a major step in reclaiming democratic powers for the institutions and for the citizens.