Marseilles October 10, 2009

For five years, the Mediterranean Institute and the Circle of the Economists combined their efforts to claim a further economic integration of the countries of the South and North of the Mediterranean.  This is why they had estimated the surplus of annual growth tied to this stronger relationship between countries, to approximately 1% per year for the countries of the South and 0.3% for those of the North. This would require open codes of investment of liberalization of the markets and in particular of the agricultural markets and services. They had also expressed their wish to see creating a specific financial institution intended to favour the transfers of funds.

Today, conscious of the global economic situation and concerned to see it deteriorate in the years 2010 – 2011, they underline the major impact that this shock could have on the Mediterranean countries. These difficulties were highlighted in the latest report of FEMISE.  Although growth continues in a certain number of countries of the South Mediterranean, but at a much lower level than previous years. This deterioration plays a fundamental role on the intervention capabilities of different factors, including central banks, endangering at the same time in the long term the solvency of certain Sovereign states, the employment markets and policies against poverty.  All this would obviously not be without the risk for a social and political equilibrium in the Region.

Within this logic, the Mediterranean Institute and the Circle of Economists stress the absolute necessity to finally implement regional Mediterranean policies. The priority is simple: to establish a vast market allowing to balance at much higher levels than those nowadays, supply and demand of goods and services.  This requires to cross in a significant way a decisive stage in monetary integration.  Beyond the existent, it is necessary to promote the establishment of stable exchange rates between main currencies of the region, mainly around the euro; this passes by the establishment of an institutionalized device which allows making use of solidarity between central banks of the region. These devices can take various forms but must in the long term consolidate a monetary zone to promote regional exchanges.

The Mediterranean Institute and the Circle of Economists also remind their wish to see the creation of a Mediterranean Development Bank which, alone, would allow to bring a true answer to the problems of financing of the economies particularly of SMEs, essential gateway for job creation.