1QUESTIONOF:Promoting responsible macroeconomic governance 2MAIN-SUBMITTEDBY: Germany 3CO-SUBMITTEDBY: France, Greece, United Kingdom, Singapore, Italy, Ireland, China 4 1THEECONOMICAND FINANCIALCOUNCIL, 2 3Recognizing that macroeconomic governance by every national government effects 4global economic stability and prosperity; and that now, more than ever with 5international currencies like the Euro and trade organizations like NAFTA, policies 6enacted by any governmental body are more than plausible to have great effects on the 7global economy; 8 9Noting that the consequencesfor misuse of economic policies are of a scale too large for 10decisions deciding the fate of the global economy to be left solely to national 11governments; 12 13Acknowledging the role of the International Monetary Fund (IMF) as the main forum for 14international economic policy cooperation; 15 16 1. Reducesfiscal and sovereign debt in the Euro-Zone by: 17 a. IMF imposing the following fiscal austerity measures to decrease 18 government spending on public sector goods in Greece, Spain, Italy, 19 Ireland, and Portugal: 20 i. freeze of public sector wagesuntil 2016, 21 i. reduced government pensions, 22 ii. halve spending on foreign aid by 2013, 23 iii. cut military spending by 30%by 2013 and a further 30%by 2014, 24 iv. increased taxation of demerit goods and luxury goods; 25 b. privatizing public sector firms and implementing fiscal accountability 26 for governments, 27 c. promoting sustainable economic growth through financial co-operation 28 between emerging economies and the Euro-zone, and through 29 prevention of excessively confident monetary policy, 30 d. writing off twenty five percent of Greek fiscal debt from non-Euro-Zone 31 creditors and twenty five percent from Euro-Zone creditors by June 32 2013; 33 34 2. Calls upon all members of the IMF to cooperate in support of reform of the IMF 35 to become a more authoritative position by: 36 a. improving the aggregate voting share of developing countries, 37 b. implementing consensusapproach decision making, 38 c. making the selection processof Managing Director more transparent 39 and open; 40 41 3. Recommends that the IMF insist on stricter financial management through 42 methods such as but not limited to; 43 a. promotion of regulations on and nationalization of banking systems 44 b. promotion of negotiable trade agreements 45 c. deterrence from governments borrowing a quantity surpassing a
5QUESTIONOF:Promoting responsible macroeconomic governance 6MAIN-SUBMITTEDBY: Germany 7CO-SUBMITTEDBY: France, Greece, United Kingdom, Singapore, Italy, Ireland, China 8 46 realistically repayable limit 47 d. promotion of joint ventures and foreign investment 48 e. strongly suggested alteration of national or international economic 49 policies acting strongly against the interests of the global economy; 50 51 4. Encouragesthe reduction of trade barriers between the indebted European 52 nations and developing nations to providing local firms in Greece, Spain, 53 Ireland, Portugal and Italy with accessto growing markets such as India and 54 China by: 55 a. pledging to grant market economy status upon China, to aid the process 56 of trade barrier reduction, 57 b. creating free trade agreements between Greece, Spain, Ireland, Portugal, 58 and Italy and developing nations such as but not limited to China, India, 59 and Brazil; 60 61 5. Recommends that an ad hoc panel consisting of technical and academic experts 62 be established with the intent of examining certain underlying principles on 63 which our current global macroeconomic policy is largely based and finding 64 potential solutions to any problems they discover, principles dealing with issues 65 such as, but not limited to: 66 a. monetary policy, 67 b. fiscal responsibility or lack thereof, 68 c. capital flows, 69 d. safety nets; 70 71 6. Encouragesnations to take into account the Global JobsPact when designing 72 current and ongoing policy packages,being mindful of the fact that it is a 73 general framework within which individual states can implement their own 74 policy; 75 76 7. Calls for adding a follow-up mechanism to the Conference of State Parties to 77 strengthen the United Nations Convention against Corruption, with the intent 78 of increasing accountability and decreasing corruption, including in the 79 mechanism: 80 a. self review, 81 b. active dialogue between the Conference of State Parties and individual 82 countries, 83 c. discussion of preliminary findings, 84 d. possible requesting of additional information; 85 86 8. Decides to remain actively seized on the matter.