Closing Statement of the Rencontres Economiques d'Aix 2011

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

- 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.

• Placing youth back in the heart of exit- strategy public
  policies

   13. Redirecting intergenerational transfer towards
the young, making it more favourable in terms of inheritance
tax.

   14. Introducing a single employment contract.

The full declaration is available at href="www.lesrencontreseconomiques.fr/">www.lesrencontreseconomiques.fr

Press contacts

Anais Paccard: +33(0)6-24-62-55-45 - href="mailto:anais.paccard@cercledeseconomistes.fr">anais.paccard@cercledeseconomistes.fr

Cécile Draunet: +33(0)6-15-51-66-19 - href="mailto:cecile.draunet@consultants.publicis.fr">cecile.draunet@consultants.publicis.fr

Lorraine Lenoir: +33(0)6-03-53-92-13 - href="mailto:lorraine.lenoir@consultants.publicis.fr">lorraine.lenoir@consultants.publicis.fr

.