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

June 16, 2023
[Provisional translation]
On June 16, 2023, Prime Minister Kishida held a joint session of the ninth meeting of the Council on Economic and Fiscal Policy and the 20th meeting of the Council of New Form of Capitalism Realization at the Prime Minister's Office.
At the meeting, the participants discussed the draft for revision of the “Grand Design and Action Plan for a New Form of Capitalism 2023,” as well as the draft Basic Policy on Economic and Fiscal Management and Reform 2023.

Following the discussion, Prime Minister Kishida said,
“Today the Councils compiled the revised Grand Design and Action Plan for a New Form of Capitalism, the Big-Boned Policy (Basic Policy on Economic and Fiscal Management and Reform), and other documents.
As Japan is facing structural changes and challenges that can be considered as a turning point for our era, positive trends have surfaced, such as the largest wage increases for the past 30 years and a large appetite for investments in the corporate sector.
We will speed up efforts to bring a new form of capitalism into reality in order to expand these current movements further vigorously.
First, we will push ahead with investments in people, structural wage increases, and labor market reforms. We will build a society where people can choose their own working styles if they wish to do so, regardless of employment status, age, sex, or disability, and their spontaneous learning will be rewarded by higher incomes or job changes.
In addition, we will fundamentally reinforce children and child-bearing policies to reverse the trend of a declining birthrate.
Furthermore, we will proceed with fostering startups that seek to resolve social issues and making domestic investments, creating a virtuous cycle of growth and distribution.
Under public-private collaboration, we will expand investments in green, economic security, artificial intelligence (AI), semiconductors and batteries, and other strategic fields, which tend to suffer from underinvestment if we just leave them to markets and competition, so that we can realize sustainable and inclusive growth.
In this year’s G7 Hiroshima Summit, we reached a common understanding on the importance of aiming for lasting growth through investments in people and supply-side reforms.
With a view to creating a socio-economy befitting a new era in Japan, we gave this year’s Big-Boned Policy the subtitle ‘Accelerating New Form of Capitalism – Expanding Investments in Our Future and Realizing Structural Wage Growth –.’
Based on the policies compiled today, going forward, we will give concrete shape to budget formulation and structural reforms and then swiftly put them into action, thereby shaping a socio-economy where the entire public can have bright hopes for their future.”

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