Following is the gist of remarks made by Mr. Takashi Imai, Chairman, Keidanren, on the scheduled press conference following monthly Chairman and Vice Chairmen's Meeting on 12 June 2000. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.
During the campaign towards 25 June House of Representative election, I hope all parties and candidates should put out their policies toward the four-year term ahead of them. From the business perspectives, a strong and stable regime will be essential to keep economic recovery on the track. It is also a must that such policies should be easily understandable. The campaign issues should include education reforms and fiscal reforms following the economic recovery.
Looking at quarterly estimate of GDP for the first quarter 2000, I want to remain cautious until the figures for the second quarter will be reported in September, before judging whether economic recovery is a real one or not.
The U. S. economy has been growing at the rate of 6% for last nine straight months and is over its real growth potential. Such exaggeration is caused by the bull stock market. As the result, interest rate in the U. S. is on rise, and we expect further rise in late June and/or in August.
Mr. Hatoyama of the Democratic Party is calling for reduction of exemption ceiling on personal income taxes and to replace this by a specific-purpose subsidy. I understand his arguments but such must be studied within a total overhaul of the taxation system.
Regarding non-bank companies joining banking, I welcome their venture spirit and hope their initiatives bring further prosperity to the peoples' lives. Administrative measures, as well as understanding between banks and new entrants are developing. I think agreement/consensus among all parties concerned will come shortly.
Regarding Keidanren-Nikkeiren merger, there are no progress as of today - we are still waiting for Nikkeiren to decide what they want to do. Expected role and task of business organizations should only include those which cannot be done by a company or an trade association -- therefore the output of organizations result in voicing collective opinions towards a reform.