Joint Meeting of the Council on Economic and Fiscal Policy and the Council of New Form of Capitalism Realization

 
On June 7, 2022, Prime Minister Kishida held a joint session of the eighth meeting of the Council on Economic and Fiscal Policy and the ninth meeting of the Council of New Form of Capitalism Realization in 2022 at the Prime Minister's Office.
 
At the meeting, the participants discussed the draft of the “Grand Design and Action Plan for a New Form of Capitalism,” as well as the draft Basic Policy on Economic and Fiscal Management and Reform 2022.
 
Following the discussion, the Prime Minister said,
 
 “I am pleased to announce that we have today wrapped up the Grand Design and Action Plan for a New Form of Capitalism and the Basic Policy on Economic and Fiscal Management and Reform.
 
Regarding the Grand Design and Action Plan for a New Form of Capitalism, we will work on social issues involving a significant externality that cannot be solved by the market, with a view to transforming them into new sources for growth. We will formulate by the end of this year and implement concrete multi-year plans for start-ups, green transformation and measures to double asset income.
 
In the Basic Policy of this year, we have put forth an overall picture of the Kishida Cabinet's economic and fiscal policies that aim to realize a virtuous cycle of growth and distribution through planned and focused investment and regulatory and institutional reforms toward the realization of a new form of capitalism, while achieving economic recovery through flexible and agile macroeconomic management.
 
Then comes the stage for action. After the upcoming House of Councillors election, we will materialize comprehensive measures to push forward the policies we have decided today, thus allowing Japan to take the lead in structural changes in the economy and society, including in the energy sector.
 
At the same time, we must respond to changes in the international environment. The security environment surrounding Japan is increasingly severe, requiring us to accelerate the development of an architecture that will enable Japan to firmly defend itself.
 
At the May 23 Japan-U.S. Summit Meeting, I stated my determination to fundamentally reinforce Japan's defense capabilities and secure substantial increase of its defense budget needed to effect it, which received strong support from President Biden.
 
As included in the Basic Policy to be approved by the Cabinet at its upcoming meeting, we will fundamentally reinforce within five years our defense capabilities, which are the ultimate guarantee of national security. In order to establish defense capabilities that will enable us to firmly defend Japan well into the future, we will build up various initiatives, and then steadily secure the budget to effect what is needed. In doing so, we will discuss a set of three key issues: the content, the amount of the budget and the financing resources.
 
As for detailed plans, the Cabinet will make decisions regarding the new National Security Strategy, which will be formulated at the end of this year, and other documents. Based on the Cabinet decisions to be made, we will compile the FY2023 budget.
 
We will steadily advance those policy measures and various others that we have included in the policy finalized today.”