Turkish Daily News
Oct 20 2006

An ‘innovative’ open letter to a French presidential candidate
Friday, October 20, 2006

This letter is to salute your courageous and visionary call last
Thursday for expenditures by European Union governments in the areas
of research and development and in innovation to be exempt from the
budgetary constraints of the Growth and Stability Pact, the so-called
‘Maastricht Criteria.’ Your ‘blueprint’ outlined last week touched on
many important areas, from labor standards to agriculture. It is
consequently my hope that the breadth of your vision and blueprint
does not lead to neglect by the media and others of the specific
incentives to boost intelligent spending on R&D and innovation. For
yours is without question the most original idea I have heard in
recent years to revitalize Europe’s technology-based industries and
prepare them for a future in which they can compete without resorting
to ‘flight’ to the United States or ‘outsourcing’ to low-cost China
and India. In short, this dimension of your set of proposals deserves
a thorough airing.

David Judson
Mme. Segolene Royal:

This letter is to salute your courageous and visionary call last
Thursday for expenditures by European Union governments in the areas
of research and development (R&D) and in innovation to be exempt from
the budgetary constraints of the Growth and Stability Pact, the
so-called "Maastricht Criteria." Your "blueprint" outlined last week
touched on many important areas, from labor standards to agriculture.
It is consequently my hope that the breadth of your vision and
blueprint does not lead to neglect by the media and others of the
specific incentives to boost intelligent spending on R&D and
innovation. For yours is without question the most original idea I
have heard in recent years to revitalize Europe’s technology-based
industries and prepare them for a future in which they can compete
without resorting to "flight" to the United States or "outsourcing"
to low-cost China and India. In short, this dimension of your set of
proposals deserves a thorough airing.

I hope you will forgive the temerity of a journalist’s resort to
the device of an "open letter" to offer my praise. But given the fact
your R&D proposal came on the same day as the unfortunate vote in
France’s Parliament to censure those who disagree with a particular
interpretation of events surrounding the collapse of the Ottoman
Empire at the beginning of the 20th century, I am sure you will
understand my motives. The history of the tragedy that befell the
Armenian people in 1915 is a separate matter. But as that vote has
set in motion a train of political events that may well stalk
relations between France and Turkey for many years, the timing of
your proposal on European economic regeneration may well be a source
of hope for the continuation of productive dialogue and collaboration
between the two countries.

The reasons for this are two:

First, Turkey is deeply engaged in its own debate about nurturing
and supporting the concept of innovation. Books on the topic go
through multiple printings, innovation is frequently in the headlines
of virtually all the press and the importance of innovation is one we
champion in my own newspaper, Referans, the national business daily.
With strong academic networks and a student population that is more
than twice as large as that of any other European country, Turkey has
much to contribute to innovation in the broader European context in
life sciences, IT, engineering, agro-industry and in many other
sectors. Turkey’s resources in this area are, in my view, key to
restarting the so-called "Lisbon Agenda" of 2000 that seeks to make
Europe the world’s most competitive economic bloc.

The second reason goes to the underlying logic in your proposal of
exempting expenditures in support of long-term economic
sustainability from the constraints of short-term fiscal accounting.
As you are aware, Turkey is well on the way to orienting its own
economy to the terms of the EU’s "Growth and Stability Pact." But
Turkey also faces an additional fiscal burden imposed by the
International Monetary Fund (IMF). I refer to the IMF-imposed
requirement to maintain a budgetary surplus exclusive of interest of
6.5 percent. This criterion leaves planning for Turkey’s 2007 budget
with a current shortfall of some YTL 6 billion, a sum equivalent to
about 3.25 billion euros. At this juncture, the logic and elegance of
your proposal is something that should be brought to the attention of
the IMF, not just as it relates to the case of Turkey but perhaps as
its potential relates to the health of other emerging economies as
well.

I wholeheartedly support your view as you expressed it last
Thursday that "There is a demand for the French in Europe and a
demand for Europe in the world." There is also a demand in Turkey, in
Europe and the world for the kind of economic thoughtfulness you so
articulately put forward last week at a moment when our attentions
were elsewhere.

I would certainly appreciate your forwarding of this letter to
those members of your economic policy team who might assist us in
exploring the specifics of what you propose. Similarly, if either you
or anyone on your team might envision a trip to Turkey, we would be
pleased to host you as guests and provide you with a broad forum for
the further sharing of your ideas.

With kind regards and best wishes for your success,

David Judson

Managing Editor

Referans