Policy Speech by Prime Minister TAKAICHI Sanae to the 221st Session of the Diet

(1) Introductory remarks

Following the results of the recent general election, I, having been designated Prime Minister, will once again take on the responsibilities of the office of Prime Minister.

I believe the public has strongly urged me to carry through with critical policy shifts, no matter what it takes.

To live up to those great expectations, we will bring into being one policy and then another as we work to manifest the policies that the Liberal Democratic Party (LDP) set forth in the campaign pledges it advocated during the general election as well as the content of the coalition agreement formally executed between the LDP and the Japan Innovation Party (JIP). We will carry out that heavy responsibility without fail.

I strongly wish to pursue this by joining forces with members of opposition parties who are open to cooperating with us in bringing these policies into being. I will listen to a wide range of voices as I engage in political administration in a manner that is humble and yet bold.

[As the ancient precept says,] "Through sincerity, practice righteousness; through righteousness, fulfill your life's purpose."

Taking as my foundation the vote of confidence bestowed upon me by the public, I will execute each policy in a faithful and steadfast manner in line with the policy address I am about to deliver.

I will make the Japanese archipelago stronger and more prosperous.

I will devote myself fully to achieving this mission of mine, building upon the policies we have implemented thus far.

(2) Bolstering Japan's strength as a nation

Over the course of last year's extraordinary Diet session, we undertook response measures to the rising prices now confronting people as our foremost priority. The prices of gasoline and diesel oil have declined steadily, based on our abolition of the provisional tax rate and the supplementary budget we enacted. Support for electricity and gas bills and support provided through grants to local regions for prioritized assistance are now beginning to reach the Japanese people. We will make even greater efforts to ensure their swift implementation.

At last, here in this Diet session, we will leverage the latent power of Japan and the Japanese people and set our broad-ranging policies fully into operation so that we are able to push ahead with robust economic policies as well as strong diplomatic and security initiatives.

We will sweepingly reinforce Japan's comprehensive strength as a nation, with a focus on our strengths in diplomacy, defense, the economy, technology, information, and human resources.

Toward that end, we will fundamentally transform how policies have been handled until now.

What lies at the very heart of this major transformation is responsible and proactive public finances.

(1) Responsible and proactive public finances to promote domestic investment

Japan's potential growth rate is sluggish compared to other major countries. However, data indicating our capacity for technological innovation and our labor efficiency compare favorably to other nations. The Japanese people possess latent strength.

What is overwhelmingly insufficient is our capital input -- that is, our domestic investment. We will carry out comprehensive efforts to promote it.

We will promote strategic investments that enhance resilience against potential crises that minimize various risks, including in the areas of economic security, food security, energy and resource security, health and medical care security, national resilience, and cyber security. We will also boost investments that promote growth, which will unlock the full potential of cutting-edge technologies in areas such as AI, semiconductors, and shipbuilding. By doing so, we will develop products, services, and infrastructure that contribute to the resolution of issues faced in common by countries around the world and make them available both domestically and internationally, which will then lead to Japan's growth.

We will also build a strong economy in which tax revenues shift toward an organic expansion, even without us increasing tax rates, by ensuring that people feel secure and at ease in their daily lives and livelihoods, increasing employment and income, and fostering in people a more positive attitude toward spending, with business profits then improving. By manifesting this economic virtuous cycle, we will increase the size of Japan's economic "pie" while also realizing wage growth that keeps pace with price increases. Let us work to have the Japanese people feel tangibly the fruits of growth, and turn people's unease and apprehension over their daily lives and the future into hope.

That is what responsible and proactive public finances aim to achieve. The Takaichi Cabinet will sever the trends of excessive austerity and underinvestment in the future, both of which have persisted for many years indeed.

Looking around the world, we find a major trend in new industrial policies in which governments take the lead as the public and private sectors join hands, aiming to resolve important social issues. Governments of countries across the globe are developing industrial policies that involve large-scale, long-term fiscal expenditures.

In this era when the world is engaged in intense competition over industrial policy, Japan should not hesitate to carry out the fiscal outlays necessary to realize economic growth.

In particular, in order to support efforts taken by both private-sector entities and local governments, it will be critical for us to ensure the predictability of budgetary allocations from the national government.

We will take that perspective as we discuss the Basic Policy on Economic and Fiscal Management and Reform for 2026 and fundamentally overhaul the way the national budget is created.

We will make a clean break from our current budget formulation process in which it is assumed that a supplementary budget will be compiled each fiscal year; we will instead allocate all necessary funds within the initial budget, to the extent possible. This major reform will take roughly two years to complete.

We will push forward ambitiously with investment-promotion policies through the use of budgets providing fiscal outlays across multiple fiscal years and long-term funds. This will enable business operators to engage in research and development and undertake capital investments with confidence.

In particular, with regard to strategic investments that enhance resilience against potential crises, investments that promote growth, and other investments that also contribute to GDP growth by generating returns that surpass the amount of the investments themselves, we will introduce an administrative mechanism with a separate heading in the budget over multiple fiscal years so that they also lead to reductions in our debt-to-GDP ratio.

At the same time, this in no way means we will pursue reckless fiscal policies that would undermine market confidence. We are already employing strategic fiscal policies while pressing ahead with administrative and fiscal reform, including our establishment of an Office for the Review of Special Measures Concerning Taxation and Subsidies, with Minister Katayama at the helm.

We will steadily reduce our government debt-to-GDP ratio by keeping the rate of expansion of government debt in check so as not to exceed our rate of GDP growth. In this way we will bring about fiscal sustainability and ensure that we maintain the confidence of the market. We will also formulate explicit concrete indicators for that purpose.

It is precisely this kind of fiscal policy, one giving ample consideration to fiscal discipline, that characterizes the responsible and proactive public finances pursued by the Takaichi Cabinet.

(2) Early enactment of the fiscal year 2026 budget and of key legislation

The starting point for all this will be the budget for fiscal year 2026 and tax reforms.

I ask for the Diet's cooperation in achieving the early passage of bills that must be enacted no later than the end of the current fiscal year [March 31], notably the fiscal 2026 tax reform-related bills, with all our efforts for the sake of the public. I also request that deliberations on the budget for fiscal year 2026 be conducted swiftly.

With regard to the measures scheduled to begin implementation with the new fiscal year [April 1], including our initiative to make education effectively free, here too, let us proceed in such a way that people's daily lives are not negatively impacted.

(3) Promoting investment through public-private collaboration

Under the Takaichi Cabinet's growth strategy, with the objective of bolstering our supply capacity, we will take bold measures that enhance predictability for business operators while placing emphasis on the societal rollout and application of advanced technologies.

With regard to 17 strategic fields, including quantum technologies, aviation and space, content, and drug discovery, we will institute comprehensive support measures from a multifaceted perspective that addresses both supply and demand aspects. These will include boldly promoting investment, supporting expansion into international markets, fostering human resources, conducting research and development, cultivating cooperation between industry and academia, ensuring that Japanese products are consistent with international standards, conducting government procurement, including defense-related procurement, and undertaking regulatory and institutional reforms. Notably, starting next month, we will set forth a roadmap for public-private investment in cutting-edge technologies and in fields where growth is expected.

This will serve as material for considering solutions to eight cross-cutting challenges. And, to what extent will private-sector investment be promoted, based on those solutions and government support measures? In the Japan Growth Strategy to be compiled this summer, we will clarify the extent in quantitative terms, while also making it possible to have a clear view of the contribution to GDP growth and to increased tax revenue.

We will deepen our efforts to make Japan a leading asset management nation, redirecting savings into investments, and promote the stable accumulation of financial assets by the Japanese people. This will lead to higher national income, which includes income other than wages, and revitalized domestic investment.

Furthermore, we will review the way corporate governance should be conducted and transform companies' resource allocation strategies, including returns to shareholders, to become growth-oriented, so that investments in both human capital and new ventures that contribute to long-term corporate growth are made more actively.

In addition, based on the feedback received from working people during the comprehensive review of work style reform, we will conduct a review of the discretionary labor system and move forward with introducing measures to ensure health when engaged in side jobs or concurrent employment while also advancing our considerations aimed at expanding flexible work styles such as telework.

Above all, when it comes to the switches to activate our growth, I will be pressing, pressing, pressing, pressing, and pressing them with full force and relentless energy.

(4)　Strategic investments that enhance resilience against potential crises: Economic security

Attempts at economic coercion are now becoming apparent, whereby control over upstream materials in global supply chains -- on which the world depends and which are widely used in commercial products -- is used to attempt to force other countries to comply with certain claims. Competition in cyberspace, maritime, and outer space realms is also escalating. It is incumbent upon us to ensure Japan's strategic autonomy and indispensability, and that need is intensifying further.

We will utilize the reserve fund within the fiscal year 2025 budget to bolster our rebuilding of supply chains that are free of reliance on specific countries and strengthen our cooperation with like-minded countries in order to break free of such reliance. We will pursue this through the collective efforts of relevant members of the Cabinet.

We will engage in support for critical services such as the laying of submarine cables; support for the expansion of business operations overseas that contribute to our economic security; the strengthening of infrastructure systems, including in healthcare; and the building of comprehensive thinktank functions.

We will also institute a Committee on Foreign Investment in Japan -- that is to say, a "Japan version" of the Committee on Foreign Investment in the United States (CFIUS) -- which will be charged with improving the effectiveness of screening inbound direct investment.

(5)　Strategic investments that enhance resilience against potential crises: Energy and resource security, decarbonization and green transformation

(Energy and resource security)

Energy serves as the foundation for people's daily lives and domestic industry, and a stable, low-cost supply of energy is indispensable for strengthening locational competitiveness.

From the perspective of energy security, it is imperative for us to further the usage of energy conservation technologies while also securing domestically produced energy. We will use decarbonized power sources to the greatest possible extent while ensuring supply chain resilience, premised on the understanding of local communities and due consideration for the environment.

Public and private sector entities will work in concert to accelerate the restarting of nuclear power plants whose safety has been confirmed by the Nuclear Regulation Authority. We will also press forward in bringing into concrete form the development and deployment of next-generation advanced reactors, aiming to construct replacement power plants within the nuclear power plant sites of operators possessing nuclear power plants that have been slated for decommissioning.

As for renewable energies, we will build supply chains domestically for perovskite solar cells and next-generation geothermal power plants, working in cooperation with allies and like-minded countries.

That said, it would be entirely counterproductive if the introduction of decarbonized power sources resulted in harm to the natural environment or posed risks to our supply chains. In particular, with regard to solar power generation, we will move forward in introducing and optimizing a series of regulations and systems, including the strengthening of our safety verification regulations and environmental assessments governing installations, conducting a review of our support systems related to power generation, and establishing recycling systems for panel disposal.

In addition, we will aim to bring about the early societal application of fusion energy, ahead of the rest of the world. Moreover, we will accelerate our efforts to realize a hydrogen society, as well as efforts related to resource development and sound material cycles. Notably, we will fast-track our efforts to utilize rare earth resources from the seabed in the waters surrounding the island of Minamitorishima.

(Decarbonization and green transformation)

To tackle climate change, a challenge faced by the entire world, we will press forward in making bold investments in green transformation (GX) from the perspective of strategic investments that enhance resilience against potential crises, and we will link decarbonization to growth.

In particular, we will promote industrial agglomerations aligned with green transformation and the integration of physical energy systems with digital technologies, thereby creating new kinds of industrial clusters.

Through the Asia Zero Emission Community (AZEC), we will also contribute to decarbonization in Asia while leveraging Asia's growth potential.

(6) Strategic investments that enhance resilience against potential crises: Reiwa-era measures to enhance national resilience

(Thoroughgoing disaster prevention and preventive maintenance)

The increasing severity and frequency of natural disasters has become an issue worldwide, with the impact of climate change a contributing factor. We will push ahead with Reiwa-era measures to enhance national resilience, thereby safeguarding the lives and the assets of our citizens. In tandem with this, we will actively develop overseas markets for our disaster prevention technologies and infrastructure.

To that end, we will submit legislation to establish the Disaster Management Agency within 2026. We will also establish Disaster Management Bureaus as local-level institutions.

Particular emphasis needs to be placed on exhaustively carrying out both disaster prevention and preventive infrastructure maintenance. We will undertake comprehensive risk assessments through simulations conducted by both the national and local governments, and we will reinforce our measures in terms of both hard and soft elements utilizing satellites and other technologies.

We will build a backup system for the capital's crisis management functions and, from the perspective of decentralizing the capital's functions and forming a multi-polar, decentralized economic zone, accelerate our consideration of the responsibilities and functions of both the capital and what is being referred to as the "sub-capital."

(Post-disaster reconstruction)

On March 11 fifteen years will have passed since the Great East Japan Earthquake.

"Without the reconstruction of Fukushima, there will be no reconstruction of Tohoku. And without the reconstruction of Tohoku, there will be no revival of Japan."

We will steadily advance efforts toward the decommissioning of the Fukushima Daiichi Nuclear Power Station of Tokyo Electric Power Company.

During the third five-year reconstruction and revitalization period starting from fiscal year 2026, we will work to bring resolutions to various challenges, including the return of residents who wish to come back, the rebuilding of lives and livelihoods through the resumption of farming and forest management, and industrial development envisaged under the Fukushima Innovation Coast Framework.

In particular, with regard to the removed soil and other matter stored at the Interim Storage Facility, we will press forward with managed recycling and reuse as part of reconstruction as we work to foster understanding, and we will concretize the roadmap toward final disposal outside Fukushima Prefecture after 2030.

January 1 of this year marked two years since the Noto Peninsula Earthquake. We are determined to restore the vibrancy of Noto and the smiles of its residents as soon as possible.

While more than 90 percent of the road closures on key routes caused by the earthquake and subsequent heavy rains have been lifted, we must not allow our efforts to end with mere restoration. We will rebuild livelihoods, revive and promote local industries and traditional industries that Japan proudly presents to the world, and press ahead vigorously with creative reconstruction.

(7) Strategic investments that enhance resilience against potential crises: Food security

It is essential to promote agriculture, forestry, and fisheries in order to ensure food security, in addition to safeguarding our national land. We will expand both supply and demand to bring about an improvement in Japan’s food self-sufficiency rate.

With regard to agriculture, in order to make full use of all farmland, we will secure a dedicated budget during the five-year period for implementing intensive measures to transform agricultural structures. On that basis, we will promote the consolidation of farmland into larger plots, implement well-tailored improvements in hilly and mountainous areas, and move forward with reorganizing shared facilities while making them more efficient.

We will also accelerate the development and implementation of smart agriculture technologies, including world-class plant factories, satellite data utilization, and AI-based analysis. In addition, we will strengthen the management foundations of businesses and promote the development of new crop varieties. These efforts will help to fundamentally enhance productivity.

We will ensure a stable supply of rice. To accurately assess supply and demand conditions, we will require relevant businesses to regularly report their inventory levels and shipment and sales volumes. In preparation for potential supply shortages, we will resume purchases for the government rice reserve and establish a private stockpiling system to complement the government reserve.

We will also enhance productivity in the forestry and fisheries sectors by utilizing smart technologies such as land-based aquaculture and airborne laser surveying.

We will work to cultivate demand and expand exports of agricultural, forestry, and fishery products and food items, including rice, with not only the Minister of Agriculture, Forestry and Fisheries, but also the Minister of Economy, Trade and Industry, the Minister for Foreign Affairs, and I myself personally taking the lead in developing new markets. Furthermore, by using legal protection of crop varieties to develop branded agricultural products and marketing that is well-aligned with target markets, we will increase added value and aim to build profitable agricultural, forestry, fishery, and food industries.

Expo 2025 Osaka, Kansai, Japan was a great success. We will also devote our full efforts to preparations and to building momentum toward the success of the International Horticultural Expo 2027 (GREENxEXPO 2027).

(8) Strategy for the future of regions

I have long called for making the Japanese archipelago stronger and more prosperous. No matter where people live, whether in farming, mountain, or fishing villages, in hilly and mountainous regions, or in any of our 47 prefectures, they should be able to live safely, have access to necessary medical and welfare services and high-quality education, and have opportunities to work. This is the Japan that the Takaichi Cabinet seeks to realize.

To achieve this, what is most important is building strong regional economies. We will advance a strategy for the future of our regions. We will solicit locally developed ideas tailored to the characteristics of each region and, while making full use of existing policy tools, including regional revitalization support measures and tax incentives, implement bold investment promotion measures in an integrated manner with infrastructure development that includes industrial sites. By harnessing these measures as we collaborate with prefectural governors and other local leaders, we will strategically foster industrial clusters across the country. In addition, we will support the growth of local industries that leverage attractive regional resources.

We will formulate a strategy to unlock the potential of Japan’s national and regional economies through finance. We will also develop an environment that will strengthen the management foundations of financial institutions that support regional economies.

We will also promote regional revitalization by leveraging the diverse attractions of each region, as well as culture and sports. At the same time, we will advance cultural and arts policies, including the succession, preservation, and utilization of cultural properties, such as food culture and traditional performing arts. Furthermore, while strengthening measures to address overtourism, including efforts to attract visitors to regional areas, we will promote sustainable tourism.

We will also maintain and improve the efficiency of administrative and essential services that support societies and economies outside our major urban areas. We will promote the use of AI and digitalization in the administrative sector as well as in quasi-public sectors such as healthcare, and develop a legal framework to support the efficient provision of essential services.

In order to maintain regional transportation and logistics, we will work to eliminate problems such as transportation gaps and shortages of drivers and other personnel by promoting relay transportation and digital transformation, and by establishing a framework that encourages collaboration among diverse stakeholders.

(9) Support for midsize, small- and medium-sized enterprises, and small-scale business operators

We will fundamentally strengthen the earning power of midsize companies that support quality employment, growth-oriented small- and medium-sized enterprises (SMEs) aiming to achieve annual sales of 10 billion yen, and small-scale businesses that underpin regional economies. In addition to hands-on, ongoing support initiated from the government side and assistance to enhance productivity and reduce labor requirements, we will thoroughly promote appropriate price pass-through and fair business practices, including in public procurement, and improve the environment so as to facilitate business succession and M&A.

(10) A prime opportunity at this very moment for raising wages as we accelerate efforts to promote domestic investment

Through these measures, the Government will not simply leave the responsibility for raising wages to business operators, but will instead work to create an environment conducive to sustained wage growth.

By realizing a strong economy that generates the driving force for wage increases, and by steadily implementing measures to address rising prices, including price reductions through the abolition of the provisional tax rates for gasoline and diesel, we will achieve sustained wage growth that outpaces inflation.

As indicated in the government’s economic outlook, real wage growth in FY2024 turned positive, and it is projected to remain positive in FY2025 and FY2026 as well. Let us build on this encouraging momentum and, through the power of policy, turn it into an even stronger wave.

(11)　Increasing people's take-home pay

We will also take measures to increase people's take-home pay.

As for disincentives for second earners within a household to earn more than 1.03 million yen in annual income, known as the “1.03-million-yen barrier,” we will increase the threshold to 1.78 million yen, from the standpoint of eliminating disincentives to work more as well as increasing the amount of earnings people have in hand.

In order to reduce the burden borne by middle- and low-income earners as they struggle to pay taxes and social insurance premiums and cope with higher prices, we will move forward with discussions in a nonpartisan National Council on comprehensively reforming our social security and taxation systems, including designing a system for refundable tax credits, and emerge with a conclusion.

We will also consider on a fast-track basis the various implementation challenges -- such as the implementation schedule and how we should secure the necessary financial resources -- that would accompany slashing to zero percent for a period limited to two years, without relying on the issuance of deficit-financing bonds, the consumption tax on all food and beverage items currently subject to the lower tax rate, as a way of reducing people's financial burden until the refundable tax credit system is introduced.

If we are able to secure the cooperation of the opposition parties, we aim to release an interim compilation of findings before summer and submit related tax reform bills.

By mobilizing a full spectrum of policies of this type, we will generate an economic virtuous cycle between investment and wage increases. Let us make the Japanese archipelago prosperous once again.

Outstanding scientific and technological capabilities form the foundation of a strong economy.

We will advance university reform and strengthen the foundations of our scientific and technological research, including in the area of basic research, and aim to build a new kind of technology-driven nation that achieves economic growth through innovation and secures Japan's position in the international community.

Japan has produced many outstanding research achievements. With regard to research and development in technological fields where strong growth is expected and the level of technical difficulty is high, such as AI, advanced robotics, and biotechnology, we will establish a certification system to vigorously promote investment by implementing tax and regulatory reforms in an integrated manner.

Startups are key drivers in bringing technologies into practical use. We will strengthen the Five-year Plan for Promoting Startups and accelerate the social implementation of advanced technologies. To this end, we will implement comprehensive support measures from multiple perspectives, including the promotion of domestic and international investment in ventures, regulatory reform, human resource development, and procurement by government agencies. In addition, we will expand our support framework and aim to create a large number of global unicorns.

Based on a strong economy, we will establish strong diplomacy and robust security.

As competition among nations intensifies, grows more complex, and becomes the norm, the free, open, and stable international order we have long embraced is now being profoundly shaken.

In this context, our country is facing the most severe and complex security environment of the post-war era. China has been intensifying its unilateral attempts to change the status quo by force or coercion in the East China Sea and the South China Sea, while expanding and intensifying its military activities in the areas surrounding Japan. North Korea continues to pursue improvements in its nuclear and missile capabilities.

Russia's aggression against Ukraine continues to this day. North Korea has dispatched troops to Russia, and there are concerns that there may be nuclear- and missile-related technologies transferred from Russia to North Korea in return. China is also strengthening its military cooperation with Russia.

Furthermore, the arena of diplomacy and security is expanding into new domains, including outer space, cyberspace, and the cognitive domain.

Under these circumstances, what is required is for Japan to think for itself and take the wheel, and to decide where we will head with a long-term perspective. Taking diplomacy and defense as two fields operating in tandem, we must resolutely safeguard our nation’s independence and peace, while proactively playing a role in guiding a world increasingly marked by division and confrontation toward openness and cooperation, so that Japan and the international community may prosper together.

The Takaichi Cabinet will pursue a policy of Responsible Japanese Diplomacy Creating Peace and Prosperity.

This year marks ten years since then-Prime Minister ABE Shinzo first advocated a Free and Open Indo-Pacific (FOIP). Over this period, geopolitical competition has intensified, and rapid technological innovation in areas such as AI and digital technologies, along with growing competition for dominance, has accelerated. In light of these developments, the need for countries to strengthen their autonomy and resilience is increasing.

We will strategically evolve our FOIP initiatives by reinforcing our economic foundations, including strengthening our data infrastructure and enhancing the resilience of supply chains for critical goods; creating opportunities for economic growth through public-private partnerships; and expanding cooperation aimed at fostering regional peace and stability, including through enlarging the scale of our Official Security Assistance (OSA) and Official Development Assistance (ODA). Let us work together to make the Indo-Pacific stronger and more prosperous.

Maintaining and expanding a rules-based free trading system is a cornerstone of Japan’s economic diplomacy. From a strategic perspective, we will seek to expand the membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and pursue amendments to the Agreement while firmly upholding its high standards. At the same time, we will explore the potential for further cooperation with ASEAN and the European Union.

The Japan-U.S. Alliance is the cornerstone of Japan’s foreign and security policy. If circumstances permit, I intend to visit the United States as early as next month. I will further strengthen my relationship of trust with President Trump and work to deepen Japan-U.S. relations across all areas, including security, the economy, and culture. In addition, we will work closely together to address challenges in various regions, notably East Asia.

If we are to ensure the smooth stationing of U.S. forces in Japan, gaining the understanding and cooperation of the Japanese people, including the people in the local communities directly affected, will be absolutely critical. We will continue also to work to mitigate the impact of U.S. military bases on local communities, including in Okinawa Prefecture. In particular, we will press ahead with the construction work for the relocation to Henoko, aiming to realize the total return of Marine Corps Air Station (MCAS) Futenma at the earliest possible date. We will also engage sincerely with the sentiments of the people of Okinawa and continue our efforts to build a robust Okinawan economy.

In addition, with the Japan-U.S. Alliance as the cornerstone, we will work hand in hand with countries with whom we share fundamental values and principles such as freedom, democracy, human rights, and the rule of law. We will further deepen multilateral security cooperation frameworks, including those of Japan-U.S.-ROK, Japan-U.S.-Philippines, Japan-U.S.-Australia, and Japan-U.S.-Australia-India. Furthermore, we will work together with ASEAN and European countries to address a wide range of global challenges.

With regard to the Republic of Korea, I welcomed President Lee to Japan last month. In the current strategic environment, in which the importance of Japan-ROK relations is growing, we will work to further strengthen our relationship through candid exchanges of views based on the relationship of trust between President Lee and me.

With regard to China, it is the consistent policy of the Takaichi Cabinet to comprehensively advance a Mutually Beneficial Relationship Based on Common Strategic Interests and to build a constructive and stable bilateral relationship. As China is an important neighboring country, and given the various pending concerns and challenges between us, we will continue communication and respond calmly and appropriately from the perspective of our national interests.

I am firmly determined to realize during my tenure the return to Japan of all abductees by North Korea. To that end, I am making every effort to open a breakthrough, without ruling out any options, including holding a summit meeting with Chairman Kim. Furthermore, North Korea’s nuclear and missile development, which poses an even more grave and imminent threat to Japan than before, is totally unacceptable.

It is important to bring Russia’s aggression against Ukraine to an early end. With that in mind, while fully respecting the will of Ukraine, we will continue to support Ukraine in cooperation with like-minded countries. Moreover, although we find Japan-Russia relations in a difficult situation, there is no change in the policy of the Government of Japan to resolve the territorial issue and conclude a peace treaty.

Since the formulation of the “Three Strategic Documents,” including the National Security Strategy, changes in the security environment, such as the emergence of new forms of warfare and the growing need to prepare for protracted conflict, have been accelerating across multiple domains. Japan must therefore proceed proactively with a fundamental strengthening of its defense capabilities. To this end, we will bring forward the revision of the Three Strategic Documents within this year.

We will also reorganize the Air Self-Defense Force into the Air and Space Self-Defense Force and newly establish a Space Operations Command. Recognizing that our Self-Defense Forces personnel are the foundation of Japan’s defense capabilities, we will push forward in improving their treatment and working conditions, including revisions to their pay structure.

It is also necessary for Japan to take proactive steps to shape a security environment that is favorable to our national interests. With regard to the transfer of defense equipment and technology, we will accelerate our review toward revising the so-called five categories under the Three Principles. This initiative will contribute to strengthening the deterrence and response capabilities of our allies and like-minded partners, while also reinforcing Japan’s defense industrial base and civilian technology base.

At the same time, we will ensure that the needs on the defense procurement side are clearly communicated to industrial circles, and will further develop an environment in which companies, including startups, can actively take on challenges in technology development, mass production, and the creation of new markets.

We will also further strengthen our maritime security capabilities and cybersecurity measures in order to complement the fundamental reinforcement of Japan's defense capabilities.

In the most severe and complex security environment of the postwar era, protecting Japan's national interests requires the timely collection and high-quality analysis of information, high-level integration of that information, and sophisticated, well-judged decision-making.

To strengthen the central coordinating function for intelligence, we will establish within the Cabinet a National Intelligence Council, to be chaired by the Prime Minister and composed of relevant ministers. We will also elevate the Cabinet Intelligence and Research Office to a National Intelligence Bureau, which will aggregate and utilize information from relevant agencies.

We will also make full use of the outcomes of our analyses and take all necessary measures, such as improving the design of our systems that prevent undue foreign interference.

(1) Education, human resources development, and supporting our youth

The foundation of national strength, particularly economic strength, is human capital. The Takaichi Cabinet will work to build up Japan's human capital.

We will further advance work style reform for teachers and school staff while strengthening instructional systems, thereby enhancing the quality of education -- the very foundation of human capital development.

We aim to make senior high school education effectively free starting this April. At the same time, we will continue to pursue senior high school education reform so that all senior high school students can access diverse, high-quality educational opportunities.

There is a need for human resource development that responds to structural changes in industry, such as advances in both digital transformation (DX) and AI. Industry, local senior high schools, technical schools, and universities, together with local governments, will work collaboratively to promote initiatives that cultivate the human resources necessary to enable industrial innovation.

We will also redouble our support so that all children and young people can have rich, meaningful experiences. In particular, we will conduct a large-scale fact-finding survey on young people who are prone to loneliness and social isolation and, based on the results, support efforts to help them to create bonds with society. We will also promote preconception care so that individuals can acquire accurate knowledge about sexuality and health and manage their well-being effectively.

(2) Enabling people to live and work with purpose and vitality

To unlock the full potential of the Japanese people, it is essential that children, young people, and indeed, every individual across all generations can play an active and vibrant role in society. Every Japanese citizen must be a key player in our nation. Let us strive to build a society free from unfairness, regardless of gender, disability or illness, generation, place of residence, or family circumstances.

To reduce the need for people to leave their jobs because of child rearing responsibilities, children refusing to attend school, or nursing care duties, we will promote the use of babysitting and support services for household chores by easing the financial burdens associated with them. We will also leverage the vitality of the private sector to create after-school spaces for elementary school children and further enhance services for the care of sick children.

We will also place greater emphasis on support tailored to family circumstances, including for low-income households with children, single-parent families, and young caregivers.

In addition, based on the acceleration plan that is part of our Children's Future Strategy, we will advance initiatives such as the full-scale implementation of the Day-care Program for All Children and improvements in the treatment and working conditions of childcare workers.

We will also formulate a new support program for the "employment ice age generation," [who have encountered career challenges as a result of entering the workforce when there were few job opportunities].

To accelerate responses to health challenges arising from sex differences, we will coordinate cross-disciplinary measures and develop clinical centers, with a particular focus on strengthening lifelong health support for women. We will also promote genomic therapies for cancer and intractable diseases, as well as initiatives based on the One Health approach.

(3) Realizing a comprehensive population policy and a society of well-ordered and harmonious coexistence with foreign nationals

(Comprehensive population policy)

The declining birthrate and population decline constitute a silent emergency that is steadily eroding Japan’s vitality. We will bolster relevant measures to reverse the trend of our declining birthrate.

However, even if these measures bear fruit, the population is expected to continue declining over the near term. It is therefore also necessary to advance measures to restructure our socio-economic systems in line with a shrinking population.

We will formulate and implement a coherent and comprehensive strategy addressing both of these dimensions.

(Measures to address the declining birthrate)

By realizing a strong economy, we will increase the incomes of people in our younger generations.

In addition to the policies on children and youth and the childcare support I mentioned earlier, we will also reduce the financial burden accompanying pregnancy and childbirth, including the costs of prenatal checkups and delivery.

(Rebuilding socio-economic systems in response to a declining and aging population)

In the context of our population decline, a dwindling birthrate, and an aging society, a national discussion is needed on the appropriate balance between benefits and burdens in the social security system, as well as on the role of income redistribution. We will engage in discussions in a National Council that transcend party lines, draw on the expertise of leading scholars and thought leaders, and emerge with concrete conclusions.

We will also give concrete form to a proactive preventive healthcare approach by advancing data health initiatives, strengthening insurer functions, supporting regional companies pursuing workforce health, and promoting cancer and dental screenings. By extending people's healthy life expectancy, we aim to enable them to remain active and play a supporting role in sustaining our society, including the social security system.

To maintain Japan's national strength and its social and economic vitality, it is necessary to consider the scale of the labor force that will be required in the future, taking into account the effects of productivity gains. We will undertake careful and steady deliberations, based on efforts to reverse the declining birthrate trend, raise labor force participation, and ensure the strict and appropriate employment of foreign nationals in accordance with the law.

(Realizing a society of well-ordered and harmonious coexistence with foreign nationals)

We must also be mindful that unlawful acts and rule violations by a fraction of foreign nationals have created situations in which members of the public feel anxiety and a sense of unfairness. We will ensure that Japan does not fall into xenophobia, responding firmly to problematic conduct, which will also benefit the vast majority of foreign residents who abide by the rules and properly pay taxes and social insurance premiums. That is what we mean by realizing a society of well-ordered and harmonious coexistence with foreign nationals.

We will vigorously promote the “zero illegal overstayers plan to ensure the safety and peace of mind of the public.” In particular, with respect to short-term visitors to Japan, we will submit legislation to establish the electronic pre-travel authorization system, JESTA. Through this measure, we will prevent the entry of foreign nationals who do not meet the entry criteria, while facilitating smoother entry procedures for bona fide visitors.

We will also advance our review of the appropriate regulatory framework concerning issues such as land acquisitions by foreign nationals and will compile the basic framework by this summer.

At the same time, we will enhance Japanese-language education for foreign nationals and promote greater understanding of Japan’s social systems and rules.

We will also work to ensure public safety and security across other areas.

We will work to deter and respond to criminal activities involving the malicious use of emerging technologies such as AI and drones, as well as to CBRNE terrorism; we will also strengthen consumer education.

We will steadily implement the measures set forth in our Comprehensive Measures to Protect the Public from Fraud 2.0 and aim to eradicate so-called anonymous and mobile crime groups. In particular, we will submit legislation to expand the scope of identity verification requirements at the time of mobile communications contracts and to enable new anti-fraud measures allowing officers to utilize fictitious bank accounts.

We will also submit legislation to establish specific procedural rules for the retrial system, while appropriately balancing the need for prompt relief from wrongful convictions with the principle of legal stability.

Bear-inflicted injuries have occurred across the country, posing a threat to people's daily lives. Based on the package of measures to counter bear-related damage compiled last year, we will ensure thorough population management through captures, including during the spring. We will also formulate a roadmap of countermeasures that includes medium- to long-term initiatives, with the aim of achieving appropriate separation between human communities and bear habitats.

I look forward to discussions progressing within and among the parties and parliamentary factions regarding what political funding should look like, the electoral system for the House of Representatives, and a reduction in the number of Diet members, with a view to further restoring trust in politics.

This year we mark the passage of exactly a century since the Showa Era began.

Japan has, since ancient times, preserved its unique culture, placed value on harmony, and developed through families and society providing mutual support.

As I reflect on the weight of those traditions and the history of Japan, I hope that our discussions here in the Diet deepen on the best way forward for stable Imperial succession and related matters, in the context of revising the Imperial House Law.

On April 29, we will hold a ceremony to commemorate the passage of 100 years since the start of the Showa Era. Let us too be dauntless as we take on challenges, drawing lessons from our predecessors, who lived through the tumultuous Showa Era, overcoming the war and numerous disasters to bring forth hope.

It is the Constitution that depicts the vision of the kind of nation we wish to build. Regarding constitutional reform, I have great hopes that constructive discussions transcending political parties and factions will gather momentum within the Deliberative Councils on the Constitution set up in both the House of Representatives and the House of Councillors and, at the same time, that discussions among the Japanese people, who are the final arbiters on this matter, deepen and become even more engaged than ever before, leading to the release of a Diet proposal at an early time.

A country that never takes on challenges has no future. Politics that only protects will never give rise to hope.

Many of the 18-year-olds who voted for the first time this year and many of our newborns will live to see the 22nd century. When that time comes, may Japan be both safe and prosperous.

And, may Japan be counted on by the rest of the world as a bright beacon in the Indo-Pacific and as a nation of freedom and democracy.

My administration will build a country where young people feel proud of having been born in Japan, and where they can say with full confidence that the future is bright.

We who are alive at this moment bear that tremendous responsibility.

Let us move forward together to take on the challenges of the future. Let us together advance politics that gives rise to hope.

Thank you for your kind attention.