Following is the gist of remarks made by Mr. Takashi Imai, Chairman, Keidanren, on the scheduled press conference of 10 April 2000. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.
In reading the state address of Mr. Mori, the new Prime Minister, I find his proposals which sums up to: Revive the Japanese economy; to make the country safe place to live; and to make Japan globally reliable, are good and sound in principle. It is the most urgent task to draw a concrete policy framework based on these principles before the soon-to-be-held general election. Without saying, all budget-related bills and laws governing corporate restructuring (splitting of companies) must be passed before the Diet will be resolved.
Soon following the election, it is especially important that Mr. Mori's policy framework includes a grand-design of the Japan's 21st Century economy. Overhaul of taxation system, welfare system, and realignment of and budgetary measures for local government are the three most important fields which need to be stipulated. In longer term, Keidanren hopes that the new government will continue socio-economic restructuring, including regulatory reform, education reform, etc.
State of the Japanese economy seems to keep improving. Even though downturn was observed in the last two quarters of 1999, I believe brighter figure during the first quarter of this year. It is unnecessary to consider drafting a large supplementary budget at this moment so that the government must steer its spending policy to growth-neutral after confirming three or four consecutive quarterly growth. It must be remembered that to bring Japan to this path, it is a sincere hope of the Japanese business to keep the foreign exchange rate at the current level and to have the Bank of Japan to keep zero-interest policy for a while.