Final Statement by the Cercle des Économistes

Jul 11, 2012, 04:00 ET from Le Cercle des Economistes

AIX-EN-PROVENCE, France, July 11, 2012 /PRNewswire/ --

2012 Aix-en-Provence Economic Forum Ends, For a Rebound in the West

We are not "declinists" - the fate of advanced countries is not written in stone.

What will the next wave of innovations be? And what about the impact of demographic transition? How can worldwide savings be harnessed and long-term investment funded? What will happen with global, commercial and financial imbalances? These are the four types of uncertainty that the United States, Japan and Europe must confront in order to remain driving forces in the new world order and return to sustainable growth.

The Cercle des Économistes outlines eight recommendations:


  1. Coordinate debt-reduction policies within the G7, in order to avoid non-cooperative debt-rescheduling efforts and exchange-rate strategies. Simultaneously promote liberalisation of exchange rates in emerging countries.


  1. Hold further discussions on the debt-reduction schedule in the Eurozone, especially for Spain, and even carry out restructuring. Debt is not problematic if it finances long-term industrial risk.

  1. For countries in macroeconomic trouble, mobilise structural funds to finance a decrease in the unit of labour costs. These funds are under- or misused when they could set off a real fiscal devaluation.

  1. For countries which industrial production enables them to get going again, bring borrowing rates back to acceptable levels.  Europe is heading for a partial pooling of debts through the purchase by the ECB of government securities or use of the European stability mechanism.

  1. A fiscal committee to complete the banking and the monetary union.
    1. Independent governance mode, but with democratic legitimacy through qualified majority decisions.
    2. Principle of shared control of national budgets, with the objective of a Eurozone budget.
    3. Counter-cyclical Growth and Stability Pact


  1. Improve commercial profitability through a massive transfer of employer social-security contributions to the CSG. In addition, eliminate certain pensions, upscale in exposed sectors, and encourage long-term future savings thereby set off the positive supply shock that France needs.

  1. A vigorous policy for the youth
    1. Expand the "universities of excellence" approach to forms of education that generate greater employability (Baccalaureate +3 - Bachelor's Level).
    2. Single, open-ended employment contract, accompanied by flexibility.

  1. To reduce public and private debt, a point-based retirement system with individual choice of retirement age and an objective of balance over thirty years.

The full statement can be consulted at

Anais Paccard - +33-06-24-62-55-45 -
Cécile Draunet - +33-06-15-51-66-19 -
Lorraine Lenoir - +33-06-03-53-92-13 -

SOURCE Le Cercle des Economistes