A basic common factor of this grim scenario is the disparity between the pound and the euro

The economy of Wales is performing in stark contrast to that of south-east England. Gross domestic product per head in Wales is 78% of the UK average; that of south-east England is 117%.

Wales has lost 38,000 manufacturing jobs since 1990. The coal industry has been killed off; steel is rapidly following suit.

Agriculture lost more than 6,000 jobs over the past two years and now faces the foot-and-mouth body blow.

Tourism struggles against cut price and currency-assisted overseas competition.

Over-strong pound

A basic common factor of this grim scenario is the disparity between the pound and the euro. A sustainable 15% reduction in the parity of the pound would work wonders.

But it cannot be achieved when the Bank of England is instructed to gear its policy to one single consideration - the level of inflation - and to ignore unemployment.

The parity of the pound should be adjusted downwards by reducing interest rates. Any inflationary pressure should be taken up by taxation.

Tackle regional disparity

Plaid Cymru seeks significantly stronger regional policy to stimulate investment and jobs in those areas currently suffering from low income, persistent unemployment and low activity rates.

Specifically, we seek variations in taxation in the Objective 1 areas of the UK as recommended in the recent Welsh affairs select committee's report.

Plaid calls for: