Closing Statement of the Rencontres Economiques d'Aix 2011

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Jul 11, 2011, 07:03 ET

AIX-EN-PROVENCE, France, July 11, 2011 /PRNewswire/ --

- Closing statement from Le Cercle des économistes: 14 key measures for setting new base for public action

The economic crisis has revealed the fragile nature of states, as well as the decisive role they play. Today, their very status is even permanently questioned by the markets. These three days of debate have led us to draw up proposals so that new forms of public intervention emerge out of the crisis, suited to taking on the challenges of global imbalances and poverty, and re-establishing strong and sustainable growth.

Strengthening governance at all levels of the global economy

1. Assigning a permanent secretariat to the G20.

2. Appointing a European Minister of Finance.

Supervising and regulating global finance

3. Re-opening negotiations on a sovereign debt restructuring mechanism.

4. Amending Basel III and Solvency II so that financial regulation is less pro-cyclical and does not discourage investment in long-term projects that are economically promising yet risky and illiquid.

5. The credit rating of sovereign countries is a public asset. For sovereign states, the only impartial and competent authority in this domain is the IMF. Credit-rating agencies are able to express their opinion except when a country benefits from IMF support programmes.

6. Allowing a common bond issue within the Eurozone (Eurobond).

Combatting poverty

7. Offering substantial, rapid, and unconditional economic aid to Tunisia and Egypt: the 40 billion promised by the G8 as part of a "sustainable partnership".

8. In developed countries, public deficit reduction in the next few years will automatically bring about a decrease in average available household income. The lowest 20% of incomes need protecting.

Gaining on potential French growth

9. Granting beneficial tax status to long-term investors.

10. Ruling out tax exemptions which have had no proven or discounted effects on growth. This does not apply to the French research tax credit Crédit Impôt Recherche.

11. Targeting public aid to sectors, and not firms, generating growth in which the competition already operates.

12. A diversified energy mix is essential for strong growth:

Nuclear power: strengthening the resources of supervisory authorities in order to guarantee transparency of information and safety of the activity.
Renewable energies: ensuring long-term and reliable funding.
Re-opening the debate on shale gas.