My recession-busting plan aims to restore people’s faith in the future

IT is good to see political leaders across the world acting to stimulate growth in public confidence.

May I suggest the time is right to implement a few further steps that will complement these confidence-building measures at EU level.

The steps I propose are:

1. EU leaders meet to implement a dynamic anti-recession plan across the union with immediate effect. They appoint a leading businessman as recession-busting supremo for the EU — someone of the calibre of Richard Branson or French business leader Claude Bébéar. They would have 12 months in the role with powers to override EU institutions and commissioners for that period.

2. Implement a further 100 point reduction in the euro base rate to act as a real stimulus and to copperfasten the survival of the euro system.

3. Implement similar reductions in non-euro EU currencies.

4. Require banks receiving taxpayer guarantees and capital to pass on this reduction fully in their lending rates. If there are any objections, individual banks should be told non-compliance will result in their guarantees being withdrawn.

5. Pay particular attention to reducing margins on business overdraft rates to pre-credit crunch levels.

6. Require energy suppliers to pass on the equivalent in local currency terms of the 40%-plus US dollar reduction in oil prices. Ensure this flows through to transport, heating and general energy costs. If energy suppliers object, tell them that a windfall profit tax will be introduced. Also point out to them the benefits of the reduced borrowing costs they will have for capital projects.

7. Call in the leading representatives of management and unions and ask them to agree a 12-month wage freeze — including withdrawal of all bonuses during this period.

8. The aim would be to reinforce a managed EU approach, ensuring that interest rate reductions are sufficent to reduce borrowing stress and encourage business activity. It is only by stimulating business activity through the restoration of confidence among the general public that the whole negative scenario will be turned around. People are concerned not just about bank problems but directly about job security and pensions. This is the moment to gain their commitment to these initiatives.

Whatever is done needs to be done quickly and with a firmness that our public and private institutions may not be used to. Hence the very real need for a political leader to drive this forward for the next 12 months.

Donal Fellows

Cois na hAbhainn

Bailick Road

Midleton

Co Cork