MARKET OPERATION and PUBLIC INTRESTS
     
Finance Department: Market operation and Public interests
Friday, 11 December 2009 hearing of preliminary advices of the Royal Society of Political Economy (KVS):

- arguments for an economy of prosperity approachopean Union;
- market operation, government subsidy and services of general common interest;
- liberalization of telecommunication: misson successful, operation finished?
- securing public interests in energy supply;
- about securing public interests in care: the role of markets and supervision.

Content of all the essays are related to the reform of the institution of European society. Main askings are how to prevent failures by government, how to manage organizations and how to change situations. These questions were not defined correctly and are guiding us to questions as do we suppose a market that is not present? Are used patterns correct? 3rd Quarter 2011 growth in exchange-traded funds (ETFs) has raised concerns The risk involved in the use of structured financial instruments by some of these funds in the form of total return swaps. The European Securities and Markets Authority (ESMA) recently held a consultation on ETFs and structured UCITS to gather evidence which should help it establish whether UCITS rules need fine-tuning to adapt to these vehicles

Thorough command of markets by governments is an opinion, but state aid should be controlled. Otherwise it is not an issue of compensation restricted in conformity with the market. (Altmark judgement). What counts is social interest of prosperity of society and public interest. Failure of markets, division and distribution, merit goods and assets and liablilities are items to pay attention to.
Market operation is related to secure interests. Considering the meaning within the EU: market operation is related to proper functioning of the internal market (health assurance, security, environment, ....).

The EU supervises on full honest competition and traces if memberstates fulfil provisions of the treaty. Securing common interest is reserved to 2 levels: the EU (who undermines sometimes protected positions, but seldom national interest - SGEIs, Services of General Economic Interest) and memberstates (they choose also by themselves).
The EU supervises on full honest competition and traces if memberstates fulfil provisions of the treaty. Securing common interest is reserved to 2 levels: the EU (who undermines sometimes protected positions, but seldom national interest - SGEIs, Services of General Economic Interest) and memberstates (they choose also by themselves). Societal interest is for example clean, reliable, payable. Public interests are for example external effects, public goods, market-power. And looking to health care payability, accessibility and quality are main items by which payability and quality are often swapped.

After the closing of the preliminary advices hearing, Prof Dr. A. Heertje arrived to receive the Pierson medal, due to his important contribution to economic science, the most prestigious Dutch decoration in economics is presented every 3 years.

Heertje devoted last decades indefatigable concerning science, but also for a better understanding of the economy amoung the public. That wide work-area has become more and more uncommonly due to specializations of specialized fields of study.

During the word of thanks Heertje plead not only for more humanity, but he also let knew he will contrive practical solutions to contribute to solutions of the present crisis. He analized a bad balance between relative simple conditions for the supply side and the continually more complicated and fragmented grown demand side.

Presentation Pierson medal to prof dr A. Heertje. 'Understanding something about economics, but knowing nothing about it'