Final Statement by the Cercle des Économistes

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• Publié par: le-cercle-des-economistes
• Nombre de lectures: 18
• Langue: English

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Final Statement by the Cercle des Économistes

PR Newswire

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

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:

International

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.

Europe

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.

a. Independent governance mode, but with democratic legitimacy through qualified majority

decisions.

b. Principle of shared control of national budgets, with the objective of a Eurozone budget.

c. Counter-cyclical Growth and Stability Pact

France

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

a. Expand the "universities of excellence" approach to forms of education that generate

greater employability (Baccalaureate +3 - Bachelor's Level).

b. 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 http://www.lesrencontreseconomiques.fr

Anais Paccard - [phone] - [e-mail]

Cécile Draunet - [phone] - [e-mail]

Lorraine Lenoir - [phone] - [e-mail]