WE WILL REFORM FINANCE

FOR A CIVIL AND JOINTLY RESPONSIBLE ECONOMY

 We are facing the most serious economic crisis ever happened.

An event caused and fed by the uncontrolled explosion without any rules of a globalized financial industrialisation, who planned to create a worthless economy based on debts.

Consequently, the great financial bubble has hit the real economy and is still producing dreadful results on employment, with the risk of an accelerated social disintegration process.

The causes of the crisis are well known: the dependence on oil, daily burned on Earth, the deregulation pushed by financial markets, the explosive increase of debts and financial instruments, the reduction of family incomes with the following demandr of loans, the birth of a new class of super-managers, who have distorted the role of the market as a meeting point for savers (single or joint) and companies.  

 The main cause that drove the financial crisis was “Hyper finance”:

a system freedoom of movement to the Hedge Funds, letting a new type of investors transfer their own financial risk on the companies, burdering them of debts (private equity), a system that allows the unregulated financial market, composed of “derivatives” and options to influence the real economy, especially the raw materials prices, with crippling effects on food goods and in southern under developed countries of the World. Today, the fair value of the “derivatives”  now existing on the market is about 480 trillion dollars, more than ten times the WGDP (World Gross Domestic Product). It’s absolutely necessary to switch off the plug !

 Regarding the Financial Markets, we must : 

1.     Establish a supranational Authority for the regulation of financial markets  (controlling the “derivatives”, hedge funds, private equity, merchant bank, etc …)

2.     Close Tax Heavens.

3.     Limit the leverage of each dealer (not over than 10 times the value of their assets) and the maximum amount for each investor in respect of his own assets.

4.     Insert a cap for the incentives related to financial operations for top and middle managers and for all their subordinates. (for example up to the maximum amount of 10% of the personal year salary).

5.     Obligate the financial operators to fully inform the customers about their financial instruments (such as loans, funds, bonds, etc…)

6.     Revise the rules for granting  credit to small and medium-size business companies and social cooperatives  (with a revision of “BASILEA 2”), introducing some instruments of guarantee for the public administration and their affiliated companies.

Regarding the Tax System, we must :

7.     Set up a new financial tax for Stock Exchange transactions regarding currencies and derivatives or similar, designating the amounts in favour of humanitarian objects such as the Millennium Goal.

8.     We must adjust the taxation between current account taxes and capital gain obligations ones (actual range of  27% - 12,50%), doubling the taxation on the commissions paid by customers in the case of a performance lower than 10% of the benchmark, and assigning the amount to support microcredit.

9.     Increase taxation on polluting and energy wasting goods, assigning the incomes to new investments on public transports.

10. Adopt a taxation system that rewards social responsible investments, both individual or collective (for example Retirement Funds).

11. Set up a fixed tax on rents (for example 20%), a bonus for weakest citizens with the right to a first house, assigning the incomes to a new patrimonial fund.

12. Introduce fiscal premiums for the enterprises being certified of Social Responsibility and  that maintain ratings for at least three years. 

Regarding the Legality, we must : 

13.       Lower the “usury rate”, comparing it with the BCE Prime Rate and with a specified spread, clearing up money transfers and imposing fiscal penalties on the use of  cash money and checks in order to hamper criminal business.

14.       Restore the obligation of legal persecution for the crime of balance  falsification.

15.       Increase the development of commercial enterprises that use the confiscated assets of racket (organized crime) by reducing the necessary time of  appropriation within 6 months and  establishing public funds for this development.

16.       Limit the production and the exportation of weapons to the only countries that ensure peace in their influence area,  which have an high rate of social internal cohesion and democracy, who protect freedom of religion and thought, who limit the possession of arms, who accept the supervision of the United Nations and who pay close attention to disarmament, nuclear energy, toxic gas and cluster bombs. 

Regarding the Supportability, we must : 

17. Entrust an Authority with the control of the price of raw materials for energy and food in order to ensure the stability of their value especially for non-financial operators.

18. Detail specific rules for manager bonuses with a maximum salary cap compared to the average workers’ retribution (for example not more than 15 times, including the stock options, which are to be bound some way).

19. Establish by law that essential resources (water, gas, electricity, networks and public transports) must be safe from financial speculation, giving to water its “original value as a natural resource accessible to everyone”