The European Liberal Youth LYMEC strongly critizices the idea of introducing a financial transaction or activity tax in Europe. This idea, rooted in socialist anti-globalization movements, these days is brought into the debate from different corners of the political spectrum in order to fish for populist sentiment.
LYMEC President
Alexander Plahr states: “Contrary to current public believe, financial transactions serve an important role for overall welfare and the functioning of our economy. The ability to use arbitrages (differences in price) is an imperative precondintion for the functioning of financial markets. A tax on financial transactions (formerly known as "Tobin tax") or the profits of financial activity would most certainly severely hamper the free flow of capital, one of the four freedoms upon which the EU is founded. Needless to say that it would naturally hit hardest with the small savers and drive capital out of the European economy.”
