The author notes that the scope of public decision-making continues to shrink. The judiciary and regulatory authorities are independent of political power. Governments are largely powerless to reduce unemployment, deal with financial crises, protect the environment, integrate the European market, accommodate migrants … “Treating the world as a commodity” raises more and more questions from the public about the preservation of “common goods”. These include the planet, water, air, biodiversity, heritage, knowledge, etc. The notion of common goods is however subjective, because it depends on the desires of each individual, which are oriented towards work or leisure, consumption or solidarity, secularism or religion, etc. In order to remove “this veil of ignorance”, Jean Tirole invites everyone to apply a method initiated in the 18th century by Thomas Hobbes and John Locke, which consists of imagining the organization of the society in which one would like to live and the position that one would like to occupy there. The author shows that citizens – regardless of their social status and their professions – are subject to a growing number of incentives issued by the various institutions of the market economy. These incentives must serve the common good by framing its private uses. The purpose of economic science is not to prioritize common goods, but rather to show the issues attached to their preservation and to build the tools to better manage them. It is therefore at the service of a governance of common goods that is intermediate between the “all-State” and the “all-market”. In the war between economists, Jean Tirole has clearly chosen his side, displaying himself as resolutely liberal. Nevertheless, he supports the principle of a modern and efficient state that is capable of strategy in order to better regulate finance and prevent economic and social crises.
The dangers of securitization
The Draghi report proposes to relaunch “securitization” to increase the financing capacity of the European banking sector, arguing that it is lagging behind the US market in terms of fundraising. What is it about? Securitization is the sale by financial intermediaries of a portion of the loan receivables they have granted to investors seeking an investment. On the one hand, these intermediaries regain liquidity and thus renew their financing capacity, and on the other hand, investors, the new owners of these receivables, receive interest and principal repayments. Securitization is usually used by mortgage lenders that do not benefit from deposit accounts and thus find a way to obtain liquidity from specialized investors. This financial technique, encouraged by the authorities to banks, has all the appearance of efficiency and seems to respect the virtuous concern of maintaining their necessary level of equity to finance the economy; it hides, however, serious dangers. Because most securitizations are now “structured”. -Structured financial products Banks sell some of their receivables to investment funds, usually subsidiaries, to create financial investment products. The arrangement of these products consists of amalgamating receivables from various sources, from more or less defined sectors of activity, and whose solvency risk is variable. This amalgam of different quality receivables increases the profitability of the investment product, by integrating risky receivables which are by definition less well rated and at a higher interest rate. In addition to the arrangement fees they receive in return, banks are encouraged to get rid of their most fragile debts. Thus, CLOs (collateralized loan obligations) appear: amalgamated bonds of more or less vulnerable medium-sized companies; RMBS (residential mortgage-backed securities) amalgamated dependent mortgage loans in Anglo-Saxon countries of the value of the property, CMBS (commercial mortgage-backed securities) amalgamated commercial mortgage loans related to general commercial activity or ABS (asset-backed securities) which fall under consumer credit or automobile leasing. In total, not only are “structured” securitized products dependent on uncertain and volatile sectors of activity, but moreover, their profitability is partly based on risky receivables. Moreover, the distribution of these products to all global investors is favored by the concentration and interdependence of financial markets. Of course, the risk of default and thus the failure of a structured product, widely distributed, will concern all investors and all global markets. -The predictable vicious cycle Investors in these products, beneficiaries of the additional return due to the integration of risky assets will then be led to guarantee themselves by buying at the same time an insurance product called CDS (Credit Default Swap) from financial institutions issuing insurance. All the ingredients that caused the financial crisis of 2007-2009 are thus reunited. If subprimes, objects of dubious manipulations have disappeared from securitized receivables, fragile and uncertain receivables persist and continue to be disseminated in all the structured products we have just mentioned. And whatever the share of these fragile claims at high interest rates in each of these products, it is enough that one or a few of them defaults to contaminate the product itself, because here, by construction, the amalgam of claims prohibits the isolation of the components. Investors holding a structured product whose yield is reduced or is bankrupt, will immediately try to resell it and will then enter a cycle of asset devaluation and all, each in turn, will be forced to do so until the beginning then the loss of their own capital. Given the scale of the exchanges, we will not have to count on any issuer of CDS to absorb a default concerning all these investors: AIG, the main American insurance group and main issuer of CDS during the financial crisis of 2007- 2009 almost died and was saved at the last minute by the United States Federal Reserve which granted it a loan of 80% of its capital. Despite the recent history of the last major global financial crisis, today we see the development, once again, of these dangerous products for the sole purpose of luring investors to the detriment of awareness of the risk they may incur. And even more serious, these products can only harm the proper functioning of the financial markets themselves. The financial crisis could then spread rapidly to the global economy, giving way to a new recession. Added to this is the pressure exerted by the US private banking lobby on the regulatory authorities to call into question or at least reduce the weight of the stress tests. These tests, which measure the adequacy of the capital and liquidity held by banks to cope with crises, have been required since the 2007-2009 financial crisis and are intended to avoid taxpayers having to bail out their banks. The mandate of the new President of the United States, an apostle of deregulation, does not augur well for the future, other than arbitration against the monetary and financial authorities and recourse to blind laisser faire. It is likely that the beginnings of a new financial crisis are in the making, and given the value of the transactions carried out by the world’s financial markets, this crisis would be more serious than the last one. -The myopia of disaster A recent concept used in behavioural microeconomics, that of disaster myopia ( Guttentag / Harrington 1986 ), seems to us to be particularly appropriate to the situation. This concept formalises the behaviour of company directors who measure the occurrence of a risk or economic shock according to the memory they have of it. This memory depends on the length of time elapsed since the last occurrence of this risk or shock. When the probability of occurrence is considered almost zero, because it is too distant in time or even considered to have a random periodicity, then we can speak of disaster myopia. This attitude prevents the understanding and analysis of the warning signs of future difficulties and leads to them being accentuated by aggravating decisions because they forget the lessons learned from previous events. We can say that we are there….but this time, unfortunately, the “disaster
Jean-François COLOSSIMO ; L’Occident, ennemi mondial N°1. 250 pages ; Editions Albin Michel
After a scholarly work on the past of Russia and its perspective with the war in Ukraine, Jean-François COLOSSIMO tells the story of the ancient empires of the 19th century, Tsarist, Ottoman, Persian, Ging, Mughal which seemed to have disappeared forever. In reality, “they had only hibernated, they reappeared, radically transformed”; and this is the thesis of the book that explains how this reappearance took place, the consequences for the West (the enemy) and the measures that the West should consider to protect itself against this “surge of hatred” “War is declared”: this is the title of the first chapter, which describes how “the domestication of the masses inside necessarily corresponds to the domination of the peoples outside. Whoever says empire means exponential seizures and embezzlements, unlimited enlargement and enslavement in order to sanctify war. The following chapters explain, according to the author’s usual methodology, historical reviews of empires explaining the present, their unsuccessful Europeanization from the 18th century, their artificial westernization in the 19th century, their crazy totalitarian modernization in the 20th century, their cultural self-destruction. The book ends with a long development on “The Great Rearmament” through a recourse “to the old religious beliefs” to revitalize the oppressive and repressive “imperial” systems. After World War II, the old world became bipolar between the communist East and the capitalist West. On the one hand, the establishment of the new world requires the creation of a rational cult, where the human is completely detached from the divine. On the other hand, the restoration of the old world requires the creation of a streamlined cult where the human bends completely to the divine. The United States is subject to types of patterns similar to those of empires. America is its own religion. The founding narrative of the United States is that of a supernatural election to happiness. Oppositions, contrary to the initial analysis, are frontal. When quickly, writes the author, “the West became the imperial nickname of Washington,” the “opprobrium” that could only be thrown on the United States is in fact on the West, which has become “world enemy No. 1.” What is the situation of France? That of a great loneliness! Alone as a priority target for authoritarian empires to denigrate it in the eyes of “this fiction of the global South.” Alone, but also the only country in the European Union to hold the bomb. It must therefore rearm its power, redeploy its influence by “demonstrating that it has always been more than the West. Finally, the author defends the thesis that the real battle to be fought is not against de-westernization, but for de-globalization. Where we recognize that geopolitics meets the new economic expectations of the West. Basically, as General de Gaulle said: France’s policy is not made on the stock market. A statement that Jean François COLOSSIMO invited us to meditate on again! Review written by Dominique CHESNEAU
CLIMATE: FROM CONFUSION TO MANIPULATION – Editions l’Artilleur -193 pages – October 2024
Climatology is far from an exact science, and there is a great deal of research that does not support the one-sided conclusions of the IPCC, the political body created by Thatcher and Reagan. Since 1950, the World Meteorological Organisation (WMO) has been studying the major thermal oscillations in the Pacific Ocean. The “el niño” phenomenon occurs every 5 to 7 years and moves huge ocean masses from east to west, triggering torrential rains here, droughts elsewhere and giant fires in Australia and Indonesia. Its influence is global. The temperature peak (+2 degrees Celsius) lasts from nine to twelve months and is followed by a reverse episode of cold anomaly. Over the past 50 years, the WMO has observed no increase in the frequency or amplitude of the phenomenon. With such erratic behaviour, it is impossible to blame carbon dioxide, which is released continuously rather than in bursts every two to seven years. The author shows us that the planet’s climate system is above all an oceanic machine. The mechanisms involved – in these oscillations – lie at the bottom of the oceans, in the powerful underwater currents that link the Pacific and the Atlantic, via the Antarctic Circumpolar Current that plunges into the abyss here and rises up along the coasts. Euler’s fluid mechanics teaches us that a fluid flows because of a pressure difference between the back and the front. As far as the Gulf Stream is concerned (over a hundred kilometres wide and over a kilometre high), it flows because of a difference in thermal tension between the poles and the equator, because as long as the sun shines and as long as the Earth’s axis remains tilted, the pole will remain a cold spot and the equator a hot spot. The ocean’s thermal inertia explains the difference between continental and oceanic climates. Even in the polar regions, everything stems from this property of storage and resistance to temperature variations. The North Pole is less cold than the Antarctic, which sits on a rocky base. Everywhere on the planet, it is the ocean that dictates to the atmosphere and not the other way round. All the laws of climate identified by Euler, Fourier, Planck, Angstrom and Coriolis apply to us and cannot be reduced to the greenhouse effect alone. Planck’s law tells us that if the earth’s temperature were to rise by 1 degree, the amount of radiation sent back into the cosmos would instantly increase by 4%, causing the earth to cool. Life on Earth is entirely dependent on solar radiation. Without it, the planet would cool down very quickly. The Earth receives and re-emits millions of billions of watts of solar radiation into the cosmos, without which the Earth would have boiled over a long time ago, wiping out all life. It’s worth remembering this when so many people believe that it’s carbon dioxide that’s warming us up. First-year physics students learn to calculate the balance of incoming and outgoing radiation. The ratio of temperatures leads to a remarkable result that is equal to a simple ratio of lengths: radius of the sun to distance between the Earth and the sun. This equation says that our planet could see its temperature rise (or fall) to worrying proportions as a result of three changes: the diameter of the Sun, its surface temperature and its distance from the Earth. Taken as a whole, this explains the remarkable stability of the planet’s climate over thousands of centuries and argues against any dramatic acceleration. The climate is not driven by carbon dioxide; it is fundamentally regulated by the sun. In his book, the author tries to play it down. We are undoubtedly going through a phase of slow warming, but Planck’s response is a powerful brake on runaway warming, as the atmosphere-ocean system is able to moderate any lurching. For millions of years, the planet has been expelling its excess heat into space by radiation and internally by Fourier conduction and atmospheric convection – including Halley’s equatorial cell – three moderating effects that combine forces to ensure climate stability. As for the ideal culprit, C0². The sharp rise in temperatures at the time of the Vikings is in no way attributable to CO², as it enabled them to colonise Greenland and grow vines there before the cold returned. The decisive argument is provided by Al Gore himself. The inconvenient truth revealed to the public the ice cores taken from the depths of Antarctica. This fossil air is a precious archive, tracing the spectacular parallel between carbon dioxide levels and palaeo-temperatures over a period of 650,000 years. So have we returned to the great fears of the year 1000? It’s time to abandon facile emotion in favour of reason and describe the climate machine in all its complexity, governed by the placid inertia of deep ocean currents. Daniel HUSSON holds a doctorate in particle physics and is a lecturer in thermodynamics and Einstein’s relativity at the Université Louis Pasteur in Strasbourg. He is the author or co-author of more than seventy international scientific publications, and has also published the book Quarks, the story of a discovery. Review wrritten by Michel Gabet
The European Net-Zero Industry Act and the French Solar Pact
The European Union, in its resolute pursuit of energy transition and industrial sovereignty, is implementing the Net-Zero Industry Act (NZIA), an ambitious initiative adopted in June 2024 as part of the Green Deal Industrial Plan. This legislation aims to strengthen the production of clean technologies in Europe while responding to the U.S. Inflation Reduction Act (IRA). The NZIA sets clear objectives: meeting 40% of Europe’s clean technology needs by 2030 and accounting for 15% of global production by 2040. Key priorities include sectors such as hydrogen, photovoltaic solar energy, and carbon capture technologies. This initiative is part of a broader strategy to enhance industrial competitiveness, accelerate the energy transition, and significantly reduce carbon emissions. To facilitate this transformation, the NZIA introduces a simplified procedure for approving industrial projects related to Net-Zero technologies. Timelines have been drastically reduced: 12 months for projects under 1 GW and 18 months for those exceeding this capacity. A national ambition: the French Solar Pact France is actively investing in the development of its solar energy capacity. Between 2020 and 2024, solar installations grew from 2 GW to 3.3 GW, but the country remains far from its target of 6 GW of annual installations set by the government. To achieve this goal, the French Solar Pact calls for enhanced mobilization of public and private resources. Starting in 2025, ESG (Environmental, Social, Governance) criteria will be introduced into public procurement processes, with an incentive bonus for projects using solar panels manufactured in Europe. A strategic tax credit introduced in March 2024 is expected to generate €23 billion in direct investments and create 40,000 jobs in the French photovoltaic sector. Greening public procurement From 2025, public contracts exceeding €25 million will be subject to strict requirements: no products comprising more than 50% from third countries will be allowed. This measure aims to reduce reliance on foreign imports while stimulating local production. However, Europe’s current limited production capacity may pose challenges. Strengthening the competitiveness of local manufacturers and accelerating the industrial production of solar panels will be critical to avoid supply chain disruptions. Financial challenges While the NZIA encourages private investment and mobilizes existing public funds, financing remains a major hurdle. Current European resources, such as the Horizon Europe program and the Just Transition Mechanism, appear insufficient compared to the massive investments made by the United States through the IRA. Nevertheless, a potential dismantling of the IRA under a future U.S. administration could provide Europe with a window of opportunity to strengthen its capabilities in a redefined international context. Building energy sovereignty European solar industry players are taking action to address these challenges. Their commitments include promoting a solar panel performance index called InduScore, signing long-term contracts to secure supply chains, and deploying at least 30% InduScore-certified panels by 2025. However, China’s dominance in the global photovoltaic market remains a significant obstacle. With industrial capacities far exceeding Europe’s needs, China continues to pose a major challenge to European energy sovereignty. Conclusion: ambitions to fulfill The Net-Zero Industry Act and the French Solar Pact are essential tools for enabling Europe to meet its climate and energy objectives. Yet, several challenges remain: securing sustainable funding, reducing dependence on imports, and accelerating local production. The success of these initiatives will require close coordination between European institutions, national governments, and private stakeholders. In France, the Solar Pact represents a unique opportunity to position the country as a European leader in solar energy. To achieve this, it will take an ambitious vision, a stable regulatory framework, and adequate financial resources. Article written by Benoit Frayer
Sophia Majnoni d’Intignano, En finir avec les idées fausses sur l’Agriculture, Eds De l’Atelier, 2024, 166 pages.
In Putting an End to Misconceptions About Agriculture, Sophia Majnoni d’Intignano offers a lucid and well-documented analysis of the clichés surrounding French agriculture. Through 37 common misconceptions, she rigorously and thoughtfully dismantles often misunderstood notions while opening perspectives to rethink our agricultural model. One of the book’s key strengths lies in the author’s ability to combine expertise with accessibility. A trained jurist, she draws on her experience and knowledge to shed light on complex topics, whether they involve agricultural subsidies, environmental challenges, or issues related to food sovereignty. Far from simply denouncing problems, she offers a reflection that places agriculture at the heart of major societal choices. Majnoni directly addresses persistent myths such as “France is an agricultural powerhouse” or “Organic farming is excessively subsidized.” These analyses are supported by clear data and concrete examples, allowing readers to better understand the economic, social, and environmental dynamics at play. For instance, she highlights how agricultural subsidies, often criticized, are in fact distributed unequally, favoring large farms over smaller ones. The book also excels in demonstrating that agriculture and ecology are not mutually exclusive. On the contrary, Majnoni highlights alternative models, such as organic farming, presenting them not as utopian, but as credible and necessary solutions to current crises—be they climatic, sanitary, or economic. She also shows that reducing chemical inputs is not an insurmountable challenge but rather an opportunity for innovation in farming. Despite the complexity of the topics covered, the book remains accessible thanks to its clear structure and straightforward style. The division into thematic chapters—economic, nutritional, environmental, and societal challenges—makes it easier to grasp the many facets of French agriculture. The arguments are well-supported without falling into excessive technical jargon, making the work relevant for both specialists and the general public. Putting an End to Misconceptions About Agriculture is a valuable contribution for anyone interested in the future of French and global agriculture. Sophia Majnoni d’Intignano succeeds in clarifying often misunderstood issues while opening avenues for building a more sustainable and equitable agricultural model. This is an essential book to foster critical and democratic debate. Sophia Majnoni d’Intignano is a jurist. She has been working on ecological policies for over twenty years. She was responsible for energy issues and later director of Greenpeace’s programs. She is now the general delegate of the National Federation of Organic Agriculture. Review by Benoit Frayer
Bernard COHEN-HADAD, L’avenir appartient aux PME, Editions DUNOD, 156 pages, 2024
While many economic articles talk about the CAC 40 and ETIs on a daily basis, it’s worth remembering that French SMEs represent 150,000 companies, more than 4 million employees (29% of the workforce) and, symbolically, almost €1,000 billion in sales. The author places particular emphasis on the presence of SMEs in the local economic fabric, which they animate through the “presential economy”. This gives them a human and civic dimension, through the multiplicity and diversity of the skills they possess, as opposed to large companies that have often relocated tasks with lower added value. The first part is about “Better Living”. Here we find the ideas of benevolence, sharing the fruits of growth and working in the regions. The second part focuses on “breathing easier”. It explains the advantages for the ISR of digitisation as a “national cause” and the greening of funding. The final proposal on the EPZs does not call them into question but recommends a more concerted deployment schedule with businesses. The next part deals with the issue of “living together better”. This more committed section begins with a plea for support for SMEs through a redistributive supply-side policy. The author takes a stand on recent or pending reforms to the organisation of work (pensions, freedom to demonstrate peacefully, Sunday work, etc.). The fourth part, “Making better decisions”, is more political and advocates the courage of unpopularity. It recommends that the Left rethink its image of business and that the Right reaffirm its social and entrepreneurial values. And he concludes with the need to resume dialogue between stakeholders to ensure that SMEs are properly integrated into society. The final section, “Better integration”, makes recommendations on the integration of young people, immigration, difficult neighbourhoods and the place of religion. In the future, these SMEs will be faced with the challenges of mastering digitisation, increasing complexity (regulatory, fiscal, environmental) and the transfer of ownership. This book is very well structured, with many concrete proposals. The focus sections at the end of each part allow you to go further on a number of subjects (e.g. SMEs and the Circular Economy). We can’t help but appreciate this spotlight on SMEs, which are often overlooked at a time when new generations are looking to this type of business for its agility and human scale. After the “start-up nation”, the author recommends the “SME nation”. Quite a programme ! Bernard Cohen-Haddad is Chairman of CPME Paris Ile de France. He chairs a THINK Tank and the economic commission of CESER Ile de France. Review written by Olivier STEPHAN
20 ans qui bouleversèrent le monde, de Berlin à Pekin (20 years that shook the world, from Berlin to Beijing), Dunod, 2008, 596 pages.
From the famous annual Ramses report of the IFRI, Thierry de Montbrial’s book is a broad retrospective of the political and economic events that have marked the world for 20 years. The reader is impressed by the extent of the changes experienced by humanity. He is surprised to find that, despite its disagreements and dysfunctions, the European Economic Community – which became the European Union in 1992 – has exerted an increasing influence on other nations. He witnesses almost “live” the crises and the realizations of terrorism, financial bubbles, global warming … He observes the emergence of a new multipolar international system, both heterogeneous and global, marked by shared sovereignty. The author advocates a “variable geometry” regulation to adjust the devices (institutions, rules, systems) to the overall performance (economic, social, ecological) desired by civil society. These measures would respect the sovereignty of nation-states or federations of states. It would preserve the history of nations and the genius of peoples. Reading the book allows us to better understand the importance of the debates on global governance, revived by the current crisis. Review by J-J.Pluchart
DUDOUET F-X. and VION A., Sociologie des dirigeants des grandes entreprises (Sociology of the leaders of large companies), Eds La Découverte, collection repères, 2024, 125 pages.
The book deals with the controversial and fantasized subject of the leaders of large companies and contemporary administrations. The authors successively analyze the social and ethnic origins, genders, training, social networks, typical careers, functions performed, political and religious commitments, relationships to finance, diversity and ethics, etc. of senior executives around the world. They trace the evolution of these different parameters and compare them between national cultures. As good academics, they draw their reflections from the works of the most prestigious sociologists and economists: Weber, Veblen, Schumpeter, Marx, Bourdieu, etc. They also engage in useful semantic exercises, showing in particular the diversity of their titles: senior executive, “boss”, professional, president, managing director, Chief Executive Officer, director-manager, etc. The authors highlight the specificities of French leaders, both in terms of their education in the Grandes Écoles (X, HEC, ENA, etc.) and their status (more salaried), their backgrounds (more financial and/or organizational), their family backgrounds (more affluent), their careers (less international) and their networks (anchored in the senior civil service). The book is well documented and clearly written. It helps to demystify, at least partially, certain legends about “big heir bosses, rentiers and immovable”, who sit at the head of large Western companies. F-X. Dudouet is a research director at CNRS and A.Vion is a professor of sociology at the University of Nantes. Review by J-J. PLUCHART
PORCHER Simon, La fin de l’eau ?, Eds Fayard, 259 pages.
At the 2023 World Water Conference, the UN Secretary-General said, “We have broken the water cycle, destroyed ecosystems and contaminated groundwater.” We are heading towards a reduction in water resources because periods of intense drought harden the soil and during subsequent rains the water runs off and is no longer absorbed. The consequences are catastrophic, as the soil moisture content is too low for the groundwater to replenish itself. This will have consequences, among other things, on agricultural production, whose yields will decline and will lead to significant social consequences. The lack of water could become the main object of conflicts because drinking water is not a commodity like any other and it is not possible to depoliticize it because without water there is no life. Water is everyone’s business, the shortage concerns each and every one of us. It is essential to address water management in a comprehensive manner in relation to ecosystems, biodiversity and climate change because it is a factor of economic and human development. Access to water must be a priority today, otherwise adaptation to climate change will not be possible. Good water management is not relative to its ownership, but is a function of the ability to create good governance at the community level. Mechanisms must be built for large groups. The solutions to be adopted are necessarily local. Experiments in setting up rights of use already exist and make it possible to combine the market mechanism and public intervention. The financialization of water is not the solution. We must reinvent the economic model of water to limit waste and preserve the quality of the resource, this requires a better readability of the price, the reuse of treated wastewater, the desalination of seawater, the collection of rainwater as well as the collection of water from fogs in arid areas, the remuneration of the sobriety of consumers and producers as well as a better application of the polluter-pays principle. Simon Porcher is a professor of management sciences at the University of Paris Panthéon-Assas. His work focuses on the management and pricing of public water services. Chronicle by Michel GABET
