Very full hall, has a very special importance. For two reasons. The theme of our annual meeting this year is to build a Common Future in a fractured world. If the world is fractured today, it is because of the consequences of political, economic, climate and technological and social change which confront us. That it shown, today, is no longer so much the battle between the right and the left which upset our ideological force, but the confrontation between those who embrace change and those who proactively change things for this new world. Taking advantage of all opportunities from revolution part revolution 4. 0. On the other hand, those resistant to change the look for salvation in the past and illusion is in. You are being welcomed here because you are a symbol of his. Andy which we badly need which we are waiting for to guide us in this new world. For thend reason importance of your presence here, lies and the fact that 2018 will certainly be a decisive year for the future of the european union. We have a great opportunity and as passionate and convinced european. I am also who lived the second world war. But, thanks to the european union, we have economic and political stability. Which is a guarantor for peace in our region. That is important to people of my generation. Since your election, mr. President , just eight months ago, you have been able to restore confidence in france. Given back hope not only to young people, but all generations, including mine. Thank you for having come to us. Regularly toome dev off. Thank you for coming again today. And wegrateful to you hope to share your prospects and perspectives. Thank you. Thank you very much professor douglas. I would also like to salute the Vice President of this forum. I think this is an important choice that you have made this welcome i would like to our Vice President. Friendsas all of the year and the hall. At this moment he should be talking about globalization in this place, almost cut off from the rest of the world by snow. And for sure, when you look outside, you are in this building and it could be hard to believe in Global Warming. Obviously and importantly, you didnt invite anybody skeptical with Global Warming this year. [laughter] so this might prevent present a se so this might present a series of challenges. Today, regarding the environment, mitigating the challenges in france and in europe, this i will review for you and continue with the drive. Lets not be naive. Globalization is going through a major crisis. It requires, from international organizations, state companies, civil society, in order to find and implement. Onal organizations, state companies, civil society, in order to find and implement. And this is the reason why i to choose decision such a topic for this year and the reason i came here today is to make a call for action. France has been very much affected by a lot of social change. And globalization and what is at stake. , but not really sure about that. Thed to fight with nationalist party. Why . You have a lot of fears, a lack of understanding about current. Lobalization atst, when you look unemployment. It is not completely fixed. Just to get out from globalization. That gives me a special responsibility. The responsibility of building a france that is prosperous and open to the world. But also a france that is capital at recognizing and standing alongside those that have been forgotten and left behind by globalization. Ensurethe same time, to that you are working for the working class. That is the challenge. It is a different principle of that institution. It is very simple and straight. It make france more competitive, more innovative, in order to find a precise and fear system. And make it more competitive in an actual european way, which is the way we will succeed. And i just want to wrap up strategy. Word of chance, we definitely need less and more brains. Has all of the talents in the country. But women and men have to adapt to changes and be trained in an efficient way. So we started to reform indepth ingain our Education System order to better educate and train our people. We decreased in these rankings and we have that system. The rules ining have different access to provides better access to universities. And more importantly, to invest more and reform that education and training system. This reform, we will launch. Important reforms and training. To deliveris a call on the strategy and to train people in this current environment. Want to accompany people in this global change, you have to empower them. The bestars and years, answer from both left and right in france was used to protect people by explaining i will protect you from any change. Sometimes we have to accelerate some change, providing the actual direction which is to educate or retrain in order to find a new job. During what will invest five years, 50 billion euros in education and retraining. , streamline,plify and make much more efficient all of this. Time, we will massively fight for research and development. Differentrengthen the tax credits and the fiscal mechanisms. Createtop of it, we will a new 10 billion 10 billion some for innovations. Finde indicate billions to the innovation programs. Again on research and this human capital. On this reform agenda, it is precisely investment in capital. In such an economy that you perfectly know, which is the economy of innovation and competencies. It is a very competitive financing system. Oriented toore loans. The direct environment for innovations. Pass the surface of reform in order to reallocate. This part of the reforms, as a global european and global initiatives. And i think we can risk this by facilitating to a more defined group for a good and sustainable project. By decreasing corporate taxes, in order to decrease the corporate tax, we at 33 to be fair. In order to have bigger forms on Capital Gains and we will have a us tax which will make by lifting taxes and wages. And by reducing the cost of workforce and capital, we have arranged for frances attractiveness. And this is only one of them. The savings in our capital, the destruction and innovation. The third pillar is about acceleration and flexibility. Education is the key to protect people. You know what facilitates this change . The different companies, startups, or large caps can sometimes change of this model andriy adapt to global uncertainty. That is why we passed last year. It is very important in our labor market. What we see in a nutshell is to realize france on germany and northern europe. It can be defined by law, and much more rules defined by the consensus. , much more adapted to your Business Environment and for reallocation. It is much more productive at home. And i think it is very much waited for. Acceleration and flexibility is also a series of microeconomic reforms. And that is what we are betting energy, housing, transportation, andder to reduce the plus at this sector. That is why we have that for me. It is competitiveness. On one side, productivity on the other side. Why . A lot of people, balance will come. Jobs. N create a lot of [indiscernible] ,f we can create a lot of jobs we pass a series of reforms in order to accelerate this group strategy. Especially reducing co2 emissions. Close all of these stations by 2021 during this mandate. [applause] it will step up the fight. With the project, now writing in france. And i would say, its about change. This cultural change is now a preference for simplification. France has a preference for regulation and taxes. Think that we manage some of the economies and inequalities. We correct different qualities by taxes and regulations. In this correction, it definitely weakens our competitiveness. We will have a strategy to prevent it. At the same time, we simplify and we streamline processes. [indiscernible] for this change of mindset. And were going crazy with a number of new regulations. Number touce the change the administration and the number of people. We have to guarantee stability for people. Investors. Citizens. Thatdimension about fiveyear strategy. It is brandnew. The taxes, and they change the rules because feasibility is part of this cultural change. , and it willategy not change. That is my personal commitment and the commitment of the whole government. And the next question is about risk. Was for britain to fail and for bidden to succeed. I mean, as you can see, it reduces the weight. It should be not easy to fail. Failure, the cost of to come back and to try, and. Acilitate those successes and to be granted for those successes. And we have to reduce the cost of failure. To succeed in the current environment, that is the change we are making in france. And because france is a nation of entrepreneurs. It is a nation of people loving this kind of risk. And i think it was a big mistake. And the big mistake, when you look at our history regarding myt ladies and gentlemen, first message is that france is back. Frances back at the core of europe. [applause] because you dont have french success without european success. And for me, all of the initiatives and reform im going to part with this european strategy. I see a lot of european leaders, and my very good friends. And altogether, we work very hard to have this common strategy. I know that Angela Merkel expressed a few hours ago, the vision. And we worked very closely in that direction. I just want you to believe that the core strategy for me for the coming years, and especially the year, is to manage refoundation of all europe. We have to take on issues of energy, digital, migration, and investment. This is a 2018 program. But this year will be the year where we have to redesign the 10 year strategy for europe. Europe has a responsibility and a role to play because of china and the u. S. Dna in terms of freedom,hips between justice, fairness, individual rights is unique. This kind of balance between the values in europe. It is very different in the u. S. You dont have this kind of freedom in china. It is not a big discovery. Globalization our and approach was made in europe, this, we want to avoid need a stronger europe. [applause] my view is that we have to redesign the 10 year strategy because it is such an overnight strategy. We need more ambition in order to have a more sovereign, united, and democratic europe. Migration, digital comic energy, development, finance, investment. The core of what makes you sovereign in this current environment, we have to build our common policies. I am not naive. We will never build something 27. Iciently ambitious at and honestly, i dont want to say it is impossible to build it at 27. Need more ambition for vant garde an a europe to build on this. If some people are ready to be more ambitious with integration and one makes you and what makes you sovereign in this global environment, to defend your values and interests, lets move. Openindow and the door is all the time. But those who dont want to move thesed should not block people in the room. [applause] with such an ambition, we will make our europe much stronger, much fairer, much ambitious in much moreairness, and able to deliver a consistent message of what we want to do in this current environment. Delivered a very long speech in september last year, and we worked very hard, but i do hope with my friends here present in this room we will Work Together to have come at the end of this year, this common strategy for 10 years in order to provide visibility to all people and to the rest of the world about the fact that europe is able to be this. My friends, i must make a confession. Id like france to find its place in world competition, and i think that the condition for that is that europe should be stronger and should succeed in finding a new ambition. But that is not an end in itself. Economic growth is not an end in itself. I often think that we have made mistakes in our speeches. Weve said things are going to get better because we will have growth. I think there are a lot of countries where you can have one or two points more growth, but it doesnt resolve all the issues. And Economic Growth is not an end in itself. It is a means to an end. This search for Economic Growth has sometimes led us to forget what people are prepared to accept in order to achieve it. The globalization crisis we are going through today is linked precisely to that. The world is fragmented by a series of economic, geopolitical phenomena, some of which could have been anticipated and which are associated with that fracture. We thought or some people thought that everybody was ,oing to resolve the problems emerging countries or newly emerging countries. That is not the case because the growth is the structurally less equitable. I think whether it is the International Institutions or ngos, theres really only 1 that get richer. I think you got the financials financialization. The economy really keeps encouragement for people with the most talent, so you cannot define a onestop solution unless we coordinate our tax issues because otherwise talent will disappear. We have tried that method. It doesnt work, and it is not going to work if you dont coordinate your positions. We are living in a wonderful world. Distances are shorter and shorter. But in our societies, everything is being refragmented. We have societies made of nomads which take advantage of globalization and whose lives are much closer to those in bombay and san francisco, to the people who live just across the hall. Think that the interests are then brought apart and set of rock together. Few kilometers from here there are people that think that solution is to get out of globalization, and there are more and more people who are now convinced that that is the right option. Having said that, it means we have a major challenge to meet. Is not just a challenge for governments, first of all because governments and states for many years now are probably going in the wrong direction. There is a political challenge. A lot of governments think you need to be more nationalist. Ok, were not doing very well to close our borders. Then there are challenges which people fight about. My gregory rhodes, terrorism ,igratory roads, Terrorism Technology changes. Unless we are able to cooperate, we will not be able to take advantage of our advantages. And that means you are actually dragged downwards, and that is from meeting our fears and concerns. We are being fractional eyes and weight fractionalized and we weve got our own approach. We got alternative solutions. But all those structures grow out of a period of history. We saw what happened when you aopt a noncorporation noncooperation approach between governments were there are a lot of real fears. We have beens now going in the wrong direction. Social law, tax law, all of those are subjects in which are the basis of the state. We have really seen a weakening of the positions. I have told you what france is doing. In france was really liking behind the rest of europe france was really lagging behind the rest of europe. But when i look at dynamism in the world today, we have a form. F dynamism we should be reducing our tax. There is no limit, a race to the bottom, people are saying. Think of the social benefits if convince the middle classes and the working classes that globalization is good for them. It is not true. It is just not true. Are moving trade, we back again towards strategies which are based on noncooperation, greater protectionism, fragmentation. We are undoing what globalization has been able to achieve, and in terms of climate change, i think that many people in paris in december have not been able to live up to our commitments. If we are not able to deliver concrete results, how are we going to explain to people that they are going to be more vulnerable . On all these issues that we are , we have added a number of subjects which we have not even seen. Andlerated migration logical change, what you explained, professor. There are new forms of inequality. I think that once again we feel that we are not really cooperating as we should be. We havent established an organization at the world level which looks at all the changes that will be ushered in by Artificial Intelligence and big data. We have no common strategy. In europe we dont even have a strategy, either. In the United States there is a strategy to allow the private sector to do whatever it wants. Tools on, we use those our devices and internet platforms, but they have privatized everything with all the consequences in terms of perhaps undermining the right to confidentiality, and everything has been done public with the control of data that are not the standards we want. We have never had a multilateral approach on something which could lead to millions of jobs and change the way we live our lives. They could change medicine, or the knowledge i have about you in terms of our capacity to be cured, as well as national identity. I dont want to paint too big a picture, but i think that we are encouraging technological change, but unless we are very careful and put a framework here , we really going to start looking like darwin. To live in a totally darwinian world, i dont know if it is very good. Certainly it is not good for our populations and for people who want to live in a democracy. What are the challenges we face, and how do we come up with a response . Apart from what we are doing in our own countries and what needs to be done in europe, i think we ave got to reconnect framework which provide for the common good. The common good is also something which exists such as sustainable health, human rights, and those common goods can never really be renounced. In our strategies and approaches, weve got to actually spell them out. Be able to regulate those common goods in a cooperative manner. I say that for governments, but also the private sector. Quite honestly, i say to you frankly today, is that approach doesnt present produce results, my job will be to achieve that, and i hope that the private sector will come to france and help create jobs, but even in my country, this idea of leaning to globalization, if i cannot explain to the people than it is good to them and that it will help them to develop their own lives in 5, 10, 15 years, they will be the nationalist extremists who want to get out of the system, and they will win, and it will happen in every country. So you cannot just say, what are we going to do it is terrible what are we going to do . It is terrible when you got nationalists or extremists or people who have terrorist messages when they win. The challenge is now. The question is, do we know how to establish a new global contract, a compact not between governments . It is not included in the investment models and models of banks and onto the doors, each one of these people understand they have a part to play in this Global Compact, it wont work because there will always be somebody who is going to be tempted not to cooperate because there will be a real premium for free riding. I think that today we are in a situation where, and our globalized world, a majority of powers are becoming free riders of our global system. That is the system we have today , and this new Global Compact has to be founded around three thent commitments right to invest, share, and protect. Let me just say a few things about these duties. For States Invest and the private sector, health and particular, that there is probably one area where we are not doing enough, and that is education. I was talking about the strategy we are developing in france. We have to do the same thing at the european level. I think that throughout our world and particularly in those areas in the greatest difficulty, the world today we , 2 3 of million adults whom are women, who dont have basic literary skills. If there is one priority, it is to invest in education and the education of girls in particular. [applause] if you dont invest in education, there will be no growth in the country. That means we are going to have a continuing creditor type continuing creditor type education. Pe in sometimes for cultural and asons, there solutions can be found in women. Certain countries have regressed in terms of education. This is something we cannot keep quiet about. In view of that we need to invest massively in education. 2015 there were more than 101 million children who were not going to school, 53 million girls. Axt week i will be with president to try to develop a partnership or education. Alls important to an have the government here agree on that. In thenvest one euro education of girls, otherwise you are investing for the short term. If you are going to open a mine or some sort of transport and for structure, fantastic. Sometimes you will get state aid and theres a lot of financing to help you achieve what you want, but also do something which will stabilize the country now, and so i think that there must be investment in education. There has to be a Publicprivate Partnership here. I think this is absolutely fundamental, and i think investment and development having a more ambitious strategy than we have today is indispensable if we want to avoid this fragmentation. The second duty is the duty to share values. Sharing of values is older than us, and it has always been something that has irrigated capitalism. That there is a crisis of contemporary capitalism. Process,obalization thetalism has become capitalism of superstars. The spreading of value is no longer equitable. Atot of people dont look how their work is written rate it. A waywe have to establish to share value more fairly. To have a way of creating better incentives, not only financial and environmental. I am not just speaking about tax. If theres a greater social and environmental spots ability to companies, i am talking about the right to share growth and , andss when it is obtained the criteria for investment there will be surveillance of how investments are made, and that will ensure sustainability. If we are able to achieve that we will have a sustainable sharing capitalism. We cannot afford to make mistakes. There are companies that have been around for a long time that had a strategy to share value added where there are incentives for employees, some with better incentive plans than others. I think the solution has to be found amongst investors, and i think there has to be greater equality. When i talk about sharing value added in the companies, we also need to speak about gender equality. In france we have a strategy in order to try and overcome some of the gaps between men and women in the fiveyear period. With the World Economic forum, we are launching an initiative to have greater visibility in the private sector, and i wanted to welcome your commitment in this area. I think at the same time, collectively we need to go further, and i would like us to welcome the commitments of the g7, who said he would but this at the heart of the canadian presidency. I would like to express my support to him. I think there is another important subject which i sketched over when i was talking about the challenges of the greater world. The contemporary world. It is the problem of tax. If we want to share value better, we need to have a more coordinated tax approach at the global level. I thinkhe bottom there is a collective impetus to be provided. The ocd has done a lot of good work in this area, and thanks to that we have been trying to prevent the erosion of a tax base. We have signed a multilateral treaty. France is in the process of establishing a ratification process. Now, i would invite the United States and china to enter into countries if the two the treaty. If the two countries dont join, we will be able to achieve very much. This is the Real Partnership to avoid tax erosion. We need to have a peaceful basis for tax cooperation which avoids the optimization strategies of certain companies, and i think a more element here. If you believe all the things youve heard and that you think are pertinent and the things that you have said during the speeches in davos, you cannot do tax optimization at hi optimization as it is being done today. Otherwise it would mean that youre going to say my business is going to have to finance common goods. On that subject i think we need unbridled tax ultimate station all demise ultimization. Want wet we all cant be hypocritical about that. The same time, there is how do i say to my country, youre going to become a champion, when the real champions dont pay any taxes and the startup does . How can i say that technological change is fantastic when those champions create the change that i welcome and they dont pay taxes . Model, and that is obvious, so we got to put an end to an unjust system, and we got to do this together because otherwise we all worry we will lose a competitive edge. We havent been able to organize ourselves. There have been tax hubs that have been created. It is something that is in the common good of the world, the major digital players provoke disruptions. Those disruptions are going to destroy millions of jobs around the world. We are going to have to reach rain these millions of people who are going to lose their jobs, so education is a common good and have to be financed. With those who destroy the jobs dont help us to finance the training or reaching of people, how my going to explain this to the working and middle classes . Weve got to find a good framework for tax cooperation. I hope we will find that in europe this year. I hope well achieve the same thing this year with oecd, and i also hope this will be done at the international level. Refindingo means vitality of cooperation in terms of finance and trade as we had after the crisis in 2008. I would just like to share a few proposals with you on this. I am in favor for the ims beginning it the imf beginning a mandate to survey the entire Financial Systems, particularly those areas which escaped regulation. [applause] we have created the imf. It has its legitimacy. It looks at what governments are doing in the financial sector, but it doesnt look at the least deregulated parts of the sector. Bitcoin, crypto currencies, shadow banking, the most aggressive operators on the financial markets, the ones that can deregulate the whole system. They are not being looked at by the imf, so we got to have a discussion, and i hope we are able to do this within the framework of the g20. I know they want to really put argentina in the forefront of this leadership role, and i think that they will be a very Important Role to be played by g20. That will give us the possibility to give more space to regulation. Howlso need to think about we are going to regulate the major players. The companies that are the major players. I would mention them, but theres also a lot of destabilization because of technological change. We dont have a framework to regulate that. Whenever going to stop innovation . We are going to stop this at some point. At one point or going to say, Artificial Intelligence is a disruptingause it is not only our productive systems, but our relations with or our attitudes towards privacy . It also calls into question a number of philosophical principles. I think we need to have a framework of International Cooperation in order to promote technology so that we can promote our startups, but weve also got to establish principles which cannot be decided by economic players, but rather by governments. I think that there too we should have a kind should have a conversation with in the context of the g20. It is to protect people. Protecting in terms of financing terrorism, providing people with social protection. That is very important if we want to promote globalization. I think it shows the Important Role that can be played by governments and states. For decades, people have said it is the end of government, or the private sector will take over, but i think to be able to meet all these challenges you need to have governments and International Cooperation. On the societal aspect, we have to stop this question of rolling back all our social benefits. We need to have a discussion in the g20 to ensure that any monitoring being done by the imf and other major bodies, there must be monitoring of all those that can promote social cohesion. I think that in europe when we provide help, particularly in the cohesion plans, we look at factors such as social convergence. We need to have certain criteria which allow us to measure social convergence, and we shouldnt be asking countries to roll back their social systems in order to take things down to the lowest level possible. Which doesnt provide the minimum protection that societies require. I think that is an area where i hope we will be able to create a andogue between the imf established a list of criteria. In terms of client in terms of climate protection, a lot has been said. We have committed to a lot of things, but we are still not up to the commitments. An enormousne amount of work. It has maintained its efforts position ined its the agreement of paris. India is also very important. I think that is very important in the transition, but we now need to follow through and respect the paris agreement. Must go aan union little bit further and create if we dont do that, we wont be credible. We have a co2 market and we have to have a new price for it, and we have got to try to change the production model. In china a few weeks ago and i was impressed by the Diplomatic Initiative by the sident, who mentioned the one belt one Road Initiative has to be in line with the goals. It cannot be called based. And cannot be it cannot be coalbased. Thirdly, we need to continue going further, and i hope that by 2020 we will have an environmental pact, which will and ensure justice for our citizens in terms of protecting the environment. The private sector must also live up to its commitment. I hope that all the investors, all of the donors that have signed up will begin to regularly show that there is a real commitment by the private sector, and finally, it is the Financial System which has to take or accompany this change. I think financing is very important. You cannot finance a transformation without it. We also need to finance and develop a model, which is sustainable. Fundamental role to play. In the european union, in the eurozone, we need to find a way green financial center, which accelerates these transition models. In terms of social protection, we need to provide production to our societies and peoples. I think that is an essential subject. Let me share a few of my convictions. The first is that we are committed in fighting against terrorism. These are committed to fighting a lot of forces. Some of these terrorist forces were organized in different ways in different parts of the world. Againsttruggle terrorism, we need to work within our partners both at the military and diplomatic level, that there are certain basic principles that must be respected. That has to be done multilaterally. I dont think we can believe that multilateral framework allieve that can multilateral framework. Acting in a multilateral way means that that we could put Regional Power such as north korea and iran, but leading to the fracturing of certain regions. The struggle has to be done within the framework with the political approach and diplomatic approach. Sometimes we have created solutions that have led to terrorism, believing that simply trying to get rid of a tyrant, that it would solve all of our problems. Opt to self to replace the sovereignty of people and their sufferings. Only state or political Sustainable Solutions will allow us to achieve a result and allow us to fight against terrorism. Frustrationent being rekindled in these countries, so we have got to not only win the war against terrorism, but we have got to create the conditions for durable peace and areas of the world which are engaged in this struggle. Im thinking of the middle east, but i am also thinking of africa. Think our cooperation is important. We have got to in peace building as well. Everything is linked. We have got to get meaning to globalization, which would bring it to these parts of the world, and that is why diplomatic activities is inseparable from our military policy. If you fight against terrorism in a country, you have no Development Strategy here if you have no education strategy for that country, now, you might one day win, but the next day, the causes that led to terrorism will not have been eradicated. And i think everything is linked. Terrorism has come back to a certain region. We werent able to provide a development, education policy. Lake haduction of the led to an economic and moral crisis in the region. That is why jihadists have been fight. Fighting against terrorism is a military option, but it also requires a diplomatic solution. I will finish up on this point. Contracthat the social has to involve all of the stakeholders. We have got to fight against riders. Ters free we should not have trade agreements with countries to countries that do not respect health or social conditions. Should not have agreements with certain powers of they do not meet our criteria. We ought to have a consistent agenda in terms of protecting the public. I think it would be much better that we come together and prevent it from increasing. A new global and shared framework. This framework should be based cooperation and not a fascination on new power. It would be a huge mistake. It means we have now a tremendous responsibility, because this new framework, this pact is to protect our common good and our people. The answer is in this room. In a certain way, our new a geographical or technological one. Is much more it is much more our commitment. Are our own frontier in our own conscience. To makemmit ourselves our current civilization more sustainable, if we commit , to take to enable into consideration longterm complexity and not just shortterm returns so we can converge and build a new for ouration and good people, resuming this great idea of progress, we have the solution. Businesses,nment, we just have a question do we decide to do it or not . This is now. Thank you. [applause] two days before President Trump delivers his first state of the union address, watch past addresses today at noon on american tv featuring Ronald Reagan in 1982, president George H W Bush in 1990, president bill clinton in 1994, and president barack obama in 2010. Raising taxes will not balance the budget. It will encourage more spending and less private investment. Slow economicwill growth, reduce production and destroy future jobs making it more difficult for those without jobs to find them and more likely that those who have jobs could lose them. And so, i want to ask you to try to balance the budget on the backs of the taxpayers. At the education summit, the governors and i agreed to look for ways to help make sure that