Magazine Politique

« Global financial crisis. European debt crisis and reform of international monetary system », Dominique Strauss-Kahn, 19 décembre 2011

Publié le 20 décembre 2011 par Davidmourey25

Voici le texte intégral du discours prononcé par Dominique Strauss-Kahn lors du Forum annuel Netease dont j’ai déjà fait écho ici :

Oui, « La Zone Euro est un radeau sur le point de sombrer » selon DSK !

2012 NETEASE ANNUAL ECONOMIC CONFERENCE

Beijing, December 19th-20th, 2011

« Global Financial Crisis, European Debt Crisis and

Reform of International Monetary System »

by

Dominique Strauss-Kahn

2012 NETEASE ANNUAL ECONOMIC CONFERENCE

 

1. But let’s start with the structural problem.

We are living through a dramatic change in the global economy.

Does this mean the beginning of the end of the period of dominance by advanced economies?

2. This brings me to my second major point. Is the IMS working properly ?

And if not, what needs to be done to improve it ?

How can we promote more effective global adjustment?

Can we make cross-border capital flows safer?

How can we enhance global liquidity?

How can reserve asset diversification be promoted?

3. Turning now to my last point, the epicenter of the current crisis: Eurozone Debt.

This crisis is of course a debt crisis.

On top of the debt problem sits the ‘austerity policy-setting problem’

Against this background, the posture of European political leaders has, first,

been denial of the problem.

The last episode in Brussels on December 9th was just one more example

4. So where do we stand ?

None of the main problems has been addressed: no central budget, no institutional centre, no lender of last resort, no expansion of monetary policy (which would help solve the competitiveness problem if inflation were comparatively lower in the debtor and problem countries), not to talk about the lack of labour force mobility.

The only good news is that Eurobonds have not been banished. This is helpful even if they are only one tool among others and not the essential political step forward which is required.

This inability to solve the Greek and other similar cases reveals essential European political weaknesses. I do not buy the argument that if the Greek case were solved then the problem would go to Italy, not least because of the fact that the Italian economy can live with current borrowing rates for a rather long time thanks to the long maturity of its debt.

I believe that if for once the Eurozone shows that it has correctly understood the problem,

that the markets would follow.

But not before. Lenders will not return in the absence of that act of political recognition.

Day after day the choice becomes clearer.

We Europeans can try to stay put in the middle of the river, attempting to roll forward

an ever increasing snowball of debt and inevitably bringing on ourselves a long period

of low growth with its accompaniment of social unrest.

Or we can try, as many are beginning to suggest, to go back to the original river bank

and accept the dismantling first of the Eurozone, and afterwards as I believe of the Union.

In this case our future is decline and submission to our powerful cousins from overseas.

Or we can decide to make the crossing to the far bank and this is the right thing to do.

It means going further in building the European Union, it means understanding

that although we may belong to the French, the German or, dare I say it,

to the British tribe, that from the perspective of a globalised world,

and indeed from Beijing where you and I are today, we are seen as Europeans.

Then the challenge will not be technical, it will be democratic.

A lire

Dominique Strauss-Kahn

Oui, « La Zone Euro est un radeau sur le point de sombrer » selon DSK !


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