this was the year of the food riots. We are already abovethe 2008 peak.Lastly, the international monetary disorder in which welive has generated an unprecedented increase in tradeimbalances. It is very simple. Trade imbalances havedoubled since 2000.CLIMATE CHANGE/ DEVELOPMENT/DIGITAL ECONOMYThe third characteristic - and I will come back to thesolutions later; I think it is best to look at possiblesolutions after sharing our analysis with our partners.Naturally, if the analysis is not shared, if we do notagree on the analysis, we cannot agree on thesolutions. The third characteristic takes the form ofglobal challenges: climate change and developmentchallenges, which call for global responses. I will say again, and I will keep saying that we haveallocated and pledged US$100 billion a year todeveloping countries, starting in 2020. That was apromise. That was Copenhagen. How can we keep thiscommitment, when our countries have unprecedentedbudget deficits, without tackling the issue ofinnovative financing? Innovative financing is a criticalissue for France.The "new" G8 should launch the public debate atpolitical level. At my meeting with President Obama, Iwas very pleased that he agreed with us that at the G8we should have a very informal discussion about theInternet. Note that the idea is in no way to contain thedevelopment of the Internet and its content. The Internet represents progress, there is no doubtabout that. The Internet gives everyone the possibilityto access universal knowledge and no one woulddream of repressing this positive development. Yet the Internet does raise substantial topics fordiscussion for us leaders. The G8 is made up of eightextremely modern economies in which the Internet ishighly developed, so it is the right forum for discussingthis issue.France will hold a forum on the eve of the DeauvilleSummit with the G8 countries' leading players in the digital economy. I believe that the time has come to trust one another and build a model based on the combination of our skills, by listening to whatthe major Internet actors have to say, and I am surethey are most responsible and will listen to what wehave to say, so we can find the way forward to acivilised Internet.I set out to give you an outline of the challenges.Obviously, we are not starting from scratch and our presidency's first priority is to ensure that thedecisions taken at the last five G20 summits are putinto practice.FINANCIAL REGULATIONThis is the case, in particular, with financial regulation.In less than two years, considerable progress has beenmade, even though, as I know all too well, publicopinion finds it hard to believe. It is true all the same.New rules on bank capital, hedge funds - nowregulated where they answered to no authority before -bank taxes introduced to curb systemic risk, and thesupervision of bonuses, on which everyone now agrees.I see that Morgan Stanley has announced it willhenceforth defer payment of 60 per cent of itsbonuses. This is a little more than we asked for.On the long untouchable tax havens, 600 taxtransparency and information exchange agreementshave been signed since April 2009. Thirteen countrieshave waived banking secrecy for tax purposes. And we will have the first evaluations from the GlobalForum on national legal frameworks so that we canstart making decisions.Development will be a second major challenge for the G20.I would like our double presidency to prioritise Africa.We will focus our efforts on infrastructures. At theCannes Summit, we will adopt a list of concreteprojects, with their financing, that will be launchedimmediately. The high-level panel tasked withidentifying these projects will be chaired by TidjaneThiam, Chief Executive of worldwide insurance groupPrudential and former Ivorian Minister of Planning andDevelopment. I thank him for accepting this mission.The third element is innovative financing. I was just talking about this. France is in favour of a taxon financial transactions. France considers that thistax is morally sound, given the financial crisis we'vejust been through, that this tax is useful to dissuadespeculation - I can explain this if you have anyquestions - and that this tax is effective for finding newresources for development. I am well aware that this tax has great enemies andadversaries standing in its way. We will endeavour toconvince them. We will work with Mr Meles, PrimeMinister of Ethiopia, who has produced an excellentreport, and France will ask a civil society figure to findinnovative solutions at the border between the privateand public sectors. France believes that the tax on financial transactionsis the best solution, but that it cannot alone solve theentire question of innovative financing. We're thereforeprepared to discuss other solutions, even though wefeel that this tax on financial transactions - and I can018G8 MEMBER COUNTRIESPhoto: © OT Deauville/Patrice Le Bris
explain this when I answer your questions - is the best formula.SOCIAL PROTECTIONRegarding employment and social issues, the socialpartners will be fully involved in the G20's work. Wewill be holding the first ever Social Summit on the eveof the G20 Summit, alongside the Business Summit.There is no reason why we should have a BusinessSummit and not a Social Summit. And the question forFrance is how to give the International LabourOrganization more weight in global governance. Francewould like us to consider setting up a minimumstandard of universal social protection. That is not to say a single social model, which makesno sense, but a minimum standard, and France willnot resign herself to the fact that the eight ILOconventions on fundamental labour rights have notbeen ratified by all the members of the G20, whichare, for the most part, also members of the ILO. Whenyou arere a member of an organisation, you ratify the standards produced and adopted by thatorganisation.INTERNATIONAL MONETARY SYSTEMOn the instability of the international monetary systemand commodity price volatility: the currency debateran right through 2010. Some even spoke of acurrency war. The truth is we have been living with theinstability of the international monetary non-systemsince 1971. To say that a monetary system exists is aserious mistake. There has not been one since 1971.I have read many things, so allow me to address anumber of these points. First of all, France does not want to go back to a fixedexchange rate system. It would be a contradiction towant to bring back a fixed exchange rate system whenwe criticise the euro's volatility for not correspondingto economic realities. Fixed exchange rate systems characteristically do notadapt to the realities of the economy. France does notwant to challenge the dollar, which plays an eminentrole and should be a strong currency, as PresidentObama so often says. And France does not supportadditional capital controls. Those are thefundamentals. Yet having refused these three things,is there a single person in the world who could say thatthe international monetary system works well or thatthere's no problem?We do not want to address these questions from anideological angle, but from a pragmatic one. Ourambition is to agree with our partners on concreteproposals. Our position is simple. It can be summed upG8 MEMBER COUNTRIES019?