GOVERNANCE: ROLE OF THE STATE
     

EURONEWS reported 14 July on Redefining the post-crisis state, what is next for the US and Europe?

THE GATHERING ÉCONOMIQUES d’AIX-en-PROVENCE 2011 finalized the declaration – 'LE MONDE DANS TOUS SES ÉTATS', with fourteen extremely important recommendations.

We have spent twenty years to changing relationships between states and markets, the assumption being that to be effective the role of government should be confined to the production of public goods and to ensure market stability. Next two contribution to sessions create insights;

- 'States, the new situation in Europe: How the Eurozone will be resolving its crisis' from Wolfgang Münchau and
- 'How far transfer of sovereignty?: The world of super-citizens, semi-states and competing capitalisms' from David Rothkopf.

To Musgrave, an American economist of German heritage who wrote The Theory of Public Finance (1959), the state is supposed to have three functions:

1. production of public goods;
2. stabilization of the situation;
3. the establishment of rules of fairness (to redistribution, to prevent too much poverty).

However, these three functions have been challenged in their expansion:
  • limiting production of public goods (public allowance, private management with competition such as the telecom frequency);

  • the claim that government intervention in markets was against productive and markets rebalance themselves (in that Thatcherism has prevailed in continental Europe);

  • limitation rules of fairness with remuneration set by the market.

The crisis has challenged the division of responsibilities between states and markets, and the fact that the management contracts to be effective and new questions arise:

- The movements of boundaries are they transient or lasting?

- How to make the state more effective? - How do you allocate the roles of states and markets?

- The return of the state is going there not be a source of conflict more serious?

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Also
Jean Monnet Centre of Excellence, the project on challenges of European politics, affects governance. During the first Annual Conference of European Union Researchers called 'The European Union: Seeking Responses for Emerging Challenges' in April 2011, a very wide range of topics pertaining to the (new) challenges of the EU was faced and were panels selected as 'Non-state actors and the EU', 'The changing role of the EU in the world' and 'Implementation and coordination in the EU's multi-level system of governance'. The last panel delivered the presentation 'Economic governance: From intentions to results', which presentation explains a definition of governance, shows obstacles in the way and ends with conclusions.