Most of the key issues stated in our "Action Program 2011" still stand high to be tackled. In the second term as Keidanren chairman, our priority will be given to the following five challenges; (1) acceleration of innovation, (2) facilitation of EPA/FTA network, (3) promoting "Doshusei" or a wider regional system, (4) improvement of business environment through reform of tax system, economic law and social security system. They are all tough, but need to be solved.
The approval is welcome because the law is essential for international cooperation toward the extermination of terrorism. A bill should be thoroughly debated for the Japanese people and the national interest in the Diet. It must come first. The next step is to pass the draft without delay. The right process matters. It justifies the result. The constitution gives the green light to the Lower House to pass a bill rejected by the Upper House by a two-thirds majority.
Special taxation measures laws have their own backgrounds, purposes and legitimacy. They live with time limit and can be reviewed as time goes by. When doing so, the influence on people's life and national economy should never be ignored. The point is to get tax payers' understanding. A policy debate on this issue is urgently needed not to confuse the society.
Japan has an advantage over the US when it comes to business people's views on their national economy. Japanese companies enjoying good performance will extend capital investment because they still feel shortage of their facilities. Housing investment on the decrease due to the aftereffect of the building standards law reform will also recover without doubt. Export companies are robust in mind and body even in the tendency towards a strong yen. Although the Japanese economy may face difficulties partly because of the slow-down of the US economy during the first half of 2008, it will get better in the latter half of the year to attain the real annual growth rate 2%.