Swoboda: "€1.7bn LIBOR fines must fund fight against youth unemployment"
In a preliminary ruling, European Union regulators this week fined six financial institutions* a total €1.71bn for deliberately manipulating London and euro financial benchmarks. Further investigations in other financial institutions' related activities are ongoing. The Socialists and Democrats Group in the European Parliament is calling for the fines to be used for youth employment measures in the framework of the European Youth Guarantee.
Hannes Swoboda, president of the Socialists and Democrats Group in the European Parliament, and Roberto Gualtieri MEP declared in a conference on EU democracy in Rome:
"Irresponsible gambling and recklessness provoked the outbreak of the financial crisis. Exacerbated by structural deficiencies, the banking sector carries significant responsibility for the economic downturn that has resulted in over 26 million unemployed people in Europe today and a crisis which has threatened democratic development in Europe.
"Manipulating the London interbank offered rate (Libor) and others is proof of the profit-obsessed ignorance that started the crisis. Youth unemployment is the most pressing – and simultaneously the most costly – consequence of this crisis. With a restricted European budget, the imposed fines should immediately be used to finance youth employment measures, notably the implementation of a European Youth Guarantee."
*The six are: Deutsche Bank, Royal Bank of Scotland, Citigroup, RP Martin, Société Générale, JPMorgan.