Lymec-PM: Today's State debts: a time bomb for the young generation (04. Dezember 2009)
The European Liberal Youth (LYMEC) expresses deep worries about the drastically rising State debt in Eurozone Member States. In Greece, this year's deficit will soar to 12.7 percent of GDP, more than twice the previous government's projection. Thirteen out of the sixteen Eurozone members currently violate the budget discipline criteria, accumulating ever more debts. Some Member States are even said to be drifting in the direction of State bankruptcy.
LYMEC President Aloys Rigaut stated: "The Stability and Growth Pact's rules of a maximum deficit of 3% of GDP and a national debt below 60% GDP are there for a good reason. This discipline is necessary for the stability of the Euro, for low interest rates, for the credibility of our economic policy, and the free-riding of certain Member States is in this respect totally irresponsible. Who will pay for this spending frenzy? Yes us, the young generation. Demographic ageing is already a sufficient burden; let's not add a new one to that. Today's debts are tomorrow's taxes."
Vice President Alexander Plahr added: "We welcome that finance ministers at the last ECOFIN meeting outlined a timetable for budget cuts. However, we call on Member States to be more ambitious! Every additional Euro debt over the three percent maximum is hurting the credibility of our common currency. And every single cent is a heavy burden on coming generations, which will have to repay all that debts by their taxes.
We therefore call for more intergenerational fairness and more seriousness when dealing with the stability of our currency. This rising State debt is a time bomb that needs to be defused fast – a task that all Eurozone countries have to contribute to. Politicians will finally have to learn to say no to calls for subsidies or company rescue packages in order to consolidate their budgets."
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