The competitiveness of the Germany improved

What lesson are you getting strong turbulence that across Europe and the euro since the crisis, Greek

What Europe experienced critically in recent weeks is the direct consequence of the transfer of a huge debt private, product of the financial bubble, on the public debt. This crisis had the merit of having finally led public opinion of the European States to become aware of the importance of the problem. It is also evidence of non-original of the creation of the euro area which has set up a monetary union without economic and fiscal coordination. We entered the crisis with a level of public deficits already too high, because the rule fixing authorized maximum deficit of a country member of the Union to 3 of GDP implied to be close to balance in the senior cycle. And yet, we are in a period of extremely low interest rates: 100 points higher rates of interest database, it is an additional cost of almost 1 of GDP or about 10 of increase in the deficit. This situation just trigger reduction policies, both by the expenditure by the recipe, deficits in most European countries. The word rigour should not scare, it simply means that the public resource is rare and that it must be managed as such. Without the necessary discipline, the excitement of the debt will necessarily be a social economic and increasing cost and risk of us to lose our sovereignty. But, of course, this reduction of the deficits must be carried out with the concern not to impede the resumption.

The rescue plan set up by the European Union to come to the aid of too indebted countries is not before any intended to protect the banking system

What is now at stake, they are not banks, is the economy. Even the balloon which proved with the US subprime crisis had benefited the world economy, only in the banking sector, the reverse is also true. The banking system is the bloodstream of the economy... That said, the origin of the crisis is in the weakness of the US banking system regulation.

Have you been surprised by the European reaction to the risk of contagion

What was done during the weekend of 8-9 May has been well done. But it is a step which will find the fullness of its meaning if Europe takes the consequences of the factual solidarity of the euro area, may establish a pattern of coordination of public finances and to give the means to enforce. It is to ensure that countries that are part of the euro area are more found in this situation. That investors funding sovereign debt are not taken regularly panic because they have the feeling that mathematically debt cannot be repaid.

A large number of economists believe requires further integration with budget transfers between States. What do you think

Historically, it has been in Europe for relatively large transfers. The structural funds which benefited the Italy, the Spain, the Portugal and the Greece for example accounted for these countries, considerable additional resources. In my view, the subject today is more of a greater integration of fiscal policies. We are facing a new world. With real empires emerged, in China, India or Brazil, which have growth rates substantially higher than ours. And while the United States, that is announced for the umpteenth time in decline a year and a half, are reset, even if it is more difficult than in previous cycles. Over the past two years, the difference in growth between Europe and its major competitors widened, sometimes incredible way as with China. Europe is therefore facing technological challenges, innovation, adaptation which require that we exceed the purely national framework. The Franco-German axis has more than ever intended to extend other initiatives that only rescue plans developed at the height of the crisis. Initiatives which should go towards more integration, so that Europe becomes a true territory, an attractive centre for investment and growth.

In France, has criticized the German growth model too turned towards exports and not enough towards the development of its domestic market. Do you see a core of truth

German public finances were better managed than others. The competitiveness of the Germany improved. It is in surplus. The unemployment rate is lower than ours almost by 2 points. Criticism to which you refer is that of the poor student who asks that it lowers the level of the examination. I do not share the.

In recent weeks, the Germany appeared to be attempted alone. See you more integration-ready

Which could give this impression, this is the internal political context prevailing during the crisis. But the force with which the German Chancellor embraced the European rescue plan shows the strength of its commitment. It is clear that the Germany has now a healthier than other countries situation and that this adds to his natural weight. That the crisis also reveals, is that national sensitivities, the report to the State, cultural reflexes, are very different between the

members of the Union. Integration is not an easy route, but we have, in my view, no other choice.

What is the real part of the speculation in the matter

The answer is difficult. You're not operator on the market with the speculator label or non-speculator. Speculation feeds of the real. The objective situation of the Greece provided grounds for intervention the speculators. The measures that the Germany has just adopted, although of limited scope because that purely national, indicate a route.

Need more regulation

Yes, for example, coverage tools are designed to enable businesses to protect themselves from economic risks. Short sales of securities of companies do not have the same utility. Need to find forms of control which do not become themselves new sources of disruption: for example, the excesses of securitisation explained in part by the constraints on the own funds of banks. We thought a moment that the concern of regulation would be shared after the crisis by everyone as it was spent near the brink. But there is that our visions differ quite widely from those of the anglo-saxon universe that remains deeply hostile to the regulation. Therefore take custody also not to penalize the financing of the European economy by imposing excessive prudential rules that we virtually only apply.

You are an investor, do you consider that we bailed out That the situation lends itself to opportunities

With the crisis of 2007-2008, the balloon is deflated and the liquidity of the credit has become lower. We expect that the asset prices decline. But there are still lot of capital not invested. This is the case in the United States, 450 billion dollars for the Fund and in Europe, we are above the 100 billion. The savings rate is still quite high, even more than before the crisis (17 in France today compared to 14). Interest rates are very low and will no doubt remain that for some time. The banks need to generate banking product and begin to lend again. But the gap between buyers and sellers is very important, especially for European assets.

The crisis creates a situation cleaned up for funds

Funds fulfil an essential function: we bring liquidity where the stock market or industry cannot be solutions. The period 2004-2008 was atypical for the Fund. During this period, the expansion of the bubble inflated yields as much as the work of investors. The idea that the duration of detention of a society is of twelve to twenty-four months is not our business. To actually create value, funds must help companies find growth. Our company, Weinberg Capital Partners, specializing in "midcaps", conducted since 2006 seven investments and did for the time being no surrender. We also launched in 2008 a real estate fund we have only just begin to invest, but prices seemed to us to be too high.

Is it not in train to attend the formation of a new bubble

The memory of the financial and sometimes short and there may be, in any case, a return to point bubbles on certain types of assets. But I do not think a general bubble, the danger is reverse. This question also refers to a return of inflation. One would think that a risk of slippage is given funding facilities granted by central banks and the recent decline of the euro. But economies open with high unemployment rates, engagement of a wage-price spiral seems to me little obvious. As industrial, it is almost 20 years I have raw materials prices and wholesale prices increase during certain phases of the cycle that it transmit to retail prices. But the no doubt essential condition is to avoid the return of protectionism.

Are you willing to a questioning of the tax shield

This world must participate in the effort. The tax shield is the result of a bad tax, the ISF. The good solution would be to delete it, even create a new slice of the income tax. The ISF has been starting France of many taxpayers who previously paid their taxes here. It has weakened.

In a company, the Board of Directors stops the strategy with the Executive Director in respect of the interests of the shareholders and all stakeholders, participates in the control of Auditors, appoints leaders stop their remuneration. I am a partner of reflection for the Director General, Chris Viehbacher is the organizer of the work of the Council. The distribution of roles is clear: I have been Chairman of Board for fifteen years and must be no ambiguity on the distribution of responsibilities.

You have to take the Presidency of Sanofi, after that of Accor until February 2009. What is your design for this function

In a company, the Board of Directors stops the strategy with the Executive Director in respect of the interests of the shareholders and all stakeholders, participates in the control of Auditors, appoints leaders stop their remuneration. I am a partner of reflection for the Director General, Chris Viehbacher is the organizer of the work of the Council. The distribution of roles is clear: I have been Chairman of Board for fifteen years and must be no ambiguity on the distribution of responsibilities.