The state of our nation's economy has worsened considerably and is now in danger of falling into a deflationary spiral. Finding ways to avoid this spiral and to reinvigorate the economy is a matter of the highest importance for our country. For this reason and also to support the efforts of Prime Minister Koizumi to carry out reform, many are demanding that measures to respond to deflation be implemented as quickly as possible. Implementing these measures requires first that the problem of disposing of non-performing loans be resolved. This in turn requires 1) special inspections of major banks and the prompt disclosure of the actual state of their non-performing loans, 2) the clarification of policies for loan disposal and the stabilization of the financial system, and 3) the restoration of people's confidence in the financial system. We must never again allow a financial crisis to occur and are expressing our firm determination both at home and abroad to employ all available means to ensure that it does not. Some examples of this are 1) revising appropriate laws and facilitating the concentrated purchasing of non-performing loans by the Resolution and Collection Corporation (RCC), 2) calling for greater flexibility to be introduced into the Bank of Japan's finance policies, 3) expanding the operations of the Bank Equity Purchasing Corporation and discussing the simplification of and relief measures for the securities taxation system in order to revitalize the stock market, and 4) ensuring the integrity of financing for small and medium-sized enterprises. Along with the disposal of non-performing loans, the stimulation of demand and the revitalization of industry through private sector dynamism must be promoted. To reorganize structurally-depressed sectors of the economy and make industries located within in them internationally competitive, the ruling parties must unite and tackle these problems together. With the goal in mind of revitalizing the national economy, we will vigorously promote both urban renewal projects and those involving private finance initiative (PFI) measures. In addition, we will work to increase liquidity and vitality in the real estate market, spur acquisition of housing, and promote investment. We will also continue to honor the 30 trillion yen framework for issues of national bonds. Furthermore, in order to create truly effective demand, we will discuss the use of public finance measures and the Fiscal Investment and Loan Program in line with future developments. Policies must be fully mobilized to counter deflation. We call on the government and Prime Minister Koizumi to demonstrate leadership and act in tandem with the ruling parties to vigorously promote anti-deflationary measures. |