/C O R R E C T I O N/ - Le Cercle des Economistes

Jul 06, 2009, 09:36 ET from Le Cercle des Economistes

AIX-EN-PROVENCE, France, July 6 /PRNewswire/ -- In the news release, "Ten Proposals for Getting Out of the Crisis and for a New Global Balance" issued on 6 Jul 2009 12:00 GMT, by Le Cercle des Economistes over PR Newswire we are advised by a representative of the company that there hqave been multiple changes made to the content of the release as originally issued inadvertently.

    Complete, corrected release follows:

    Ten Proposals for Getting Out of the Crisis and for a New Global Balance

    - 9th "Rencontres économiques" in Aix-en-Provence
    - Final Statement From the "Cercle des économistes"

There is a great temptation to hope for a rapid exit from the current economic difficulties, The "Cercle des économistes" wishes to distance itself from this reassuring point of view, insofar as it prevents the institutional reforms and coordination vital for the emergence of a new growth model. Contrary to popular belief, this period may be favourable to France.

If appropriate frameworks for negotiations are not found for all issues related to international economic tensions, a recovery of the world economy cannot be envisaged for several years. The damage will be enormous, particularly for European countries, our country (France) and even more for the least developed countries.

A response consisting of half-measures could increase poverty, unemployment, populism and could lead to tragic events such as conflicts and food crises, and does not let us envision a global economic upturn for some years to come, maybe for more than three years.

The world has been struck by four economic shocks with combined effects: the monetary crisis; latent conflicts between emerging countries and countries of the OECD; transformation of consumer demands on an unexpected scale; ageing of the global population.

The likely outlook for the world economy can be predicted for the next six months, but the unknown factor resides in its recovery during the second half of 2010.

The situation is serious and requires drastic decisions.

The ten proposals set out by the "Cercle des économistes":

At the global level

1) Establishing the G20 as a worldwide economic coordinating body in place of the G7/G8, responsible as well for problems relating to trade, exchange rates and stabilisation of raw-materials prices.

2) By the end of 2009, strengthening the banking and finance regulation undertaken in London, before the consensus between Anglo-Saxon countries and the rest of the world fades away.

3) Strengthening the Financial Stability Council's and the IMF's functions in anticipating and resolving financial imbalances and the IMF. Reassessment of IMF voting rights.

4) Holding an International Conference at the end of the first quarter of 2010 to reform rules relating to world governance: THE RENAISSANCE CONFERENCE. This decisive initiative is essential to make the G20 the arena in which conflicts at a global level can be resolved.

    In preparation for this Conference, the G20 should:

    - Create new tools for stabilizing monetary zones, making possible a more
      balanced distribution of central bank exchange reserves;

    - Undertake analyses of global needs by 2015 in the areas of energy and
      the food industry, and implement production mechanisms that improve the
      balance between supply and demand in these markets;

    - Devise new mechanisms for transferring public funding towards countries
      in the Southern hemisphere to compensate for private funding, with the
      goal of doubling public aid for development within five years;

    - Take charge of the implementation of commitments that will be made in
      the post-Kyoto era during the Copenhagen Conference in December of next
      year, in particular at the financial level and with regard to better
      management of the climate as a global collective asset;

    - On the economic level, one imperative for the G20 is to not raise
      interest rates before lasting growth returns, at the earliest by the
      end of 2010.

At the European level

6) Coordinated strengthening of plans in support of the labour and investment markets in growth sectors. Real implementation of the Lisbon strategy.

7) Give the European Central Bank and the Eurogroupe, working in collaboration, the resources to manage exchange rates.

8) Rapid organisation and publication of real European banking "stress tests".

At France's level

9) Massive restart of investment at the end of 2009 and beginning of 2010. Reach a consensus on the sectors to be favoured, as well as on the types of funding and methods of loan investment.

10) Allot one-quarter of the resources devoted to boosting the higher education and research sector to partially resolve unemployment among the young. Massive orientation of employment policies to aid in the fight against exclusion and in particular towards extending and securing career paths.

    In this context, seeking structural reforms is more necessary than ever.
    Read the full statement on: http://www.cercledeseconomistes.asso.fr

    Press Contacts:

    Julie Dardelet
    Publicis Consultants
    Tel: +33-6-33-85-96-83

    Lorraine Lenoir
    Publicis Consultants
    Tel: +33-6-79-81-06-44
    E-mail : lorraine.lenoir@consultants.publicis.fr

    Mathilde Lorenzi
    Circle of Economists
    Tel: +33-6-24-62-55-45
    E-mail: m.cercledeseconomistes@wanadoo.fr

SOURCE Le Cercle des Economistes