ELDR Focus Year

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.”

The European Liberal Youth LYMEC calls for a sharp reduction of budget deficits in Europe as a question of justice across generations.

LYMEC President Alexander Plahr comments: 'We applaud the recent decissions by the Spanish and Portugese governments to reduce their budget deficits as well as the strong intention of the newly elected conservative-liberal government in the United Kingdom to return to fiscal responsibility. However, these are merely cautious first steps in the right direction.

The accumulation of ever-higher amounts of public debt by governments across Europe is a ticking time bomb for coming generations and cannot go on any longer. Instead of taking a mortage on the future, today’s politicians should only spend as much as they collect in taxes.'