Raising public debt, structural reduction of interest, end of the economic crisis

This abstract was written after the Conference. The discussion concentrated on the measures to solve the strong problems of EU debt. It was realized that globalisation means globalization of public intervention also, if this has to be saved. The rules which must be managed at the global level, i.e. at the level of G20 as a start, are fundamentally two. The first one regards the current balance of payments equilibrium. Now big disequilibrium of balance of payments are structural, and in the last period regarded the EU in a heavy way. The second rule regards a fiscal system which governs the rate of interest, making it tend, net to taxation, structurally to zero. This constitutes the premise of a new launch of public debt, at least in Europe, to restore employment. In tendency the public deficit may be governed in such a way to absorb the saving which, near to full employment, would remain idle. This amount may be different among countries. The change in taxation of interests makes necessary a new fiscal reform, very far from the actual principles, but well capable to reach their abstractly declaimed tasks. These new rules of taxation, which develop really the ante reform schemes, need for some aspects a general coordination: for this, and to fix the amount of deficits in the new context, EU is still necessary. The paper goes into the problems which lead to such conclusions.