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Regulation of the global economy

Published on December 12, 2014
Reply given by M. Michel Sapin, Minister of Finance and Public Accounts, to a question in the National Assembly (excerpts)
Paris, December 10, 2014


While the most horrendous effects of the last financial crisis of 2008-2009 have slightly faded, the causes themselves haven’t yet disappeared. We mustn’t lose sight of the fact that today we must still implement regulation of global finance and also – we’re doing so and I’ll tell you how – apply mechanisms to combat all those activities which evade all forms of ethics of whatever nature and end up, for example, encouraging tax evasion and optimization.

You’re right, we must indeed act at international level, because when it comes to globalization of this nature, when it comes to movement of capital, it’s the only level at which we can be effective.

As you know, what the international community has chosen is to work at the level of the G20, which brings together the world’s 20 largest economic powers, namely of course the European and North American powers but also all the large emerging powers, particularly in Asia, which also have this desire for regulation.

In fact, we’re continuing global regulation. It’s been done in the banking field: for example, in Europe, we yesterday adopted the final provision necessary for establishing banking union, so as to cut the link between responsibility for banks and national budgets – budgets paid for by all taxpayers.

We must go further, particularly in combating tax optimization. We’re doing so with several bodies, such as the OECD, which has made proposals in this area. I’ve also suggested to my Italian and German colleagues that 2015 should be the year when major principles in combating tax optimization are actually implemented at European and global level./.

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