Prime Minister Shinzo Abe attended the second Government-Labor-Management Meeting for Realizing a Positive Cycle of the Economy at the Prime Minister's Office.

During the meeting, discussion took place on the "current situation and issues surrounding the manufacturing industry and small- and medium-sized enterprises (SMEs)" and "Government initiatives towards realizing a positive cycle of the economy."

Based on the discussion, the Prime Minister said in his address,

"Since the inauguration of the Abe administration at the end of last year, we have been using non-traditional methods for monetary policy, fiscal policy and the growth strategy in an attempt to overcome deflation. Since then the atmosphere has surely changed. We have first of all exerted every effort to change the stagnant atmosphere created by deflation. The real work begins from here on out. Some time ago, when we decided to raise consumption tax, we also decided on an economic policy package. This economic policy package contains policies which are different from the past in both their scope and reach. For the continued enhancement of corporate competitiveness as well, we have made plans such as those to reduce taxes on investments. As part of that, there has been the major criticism that even if we reduce corporate tax rates, it is not so simple to pass those savings onto wages; that those savings will not be reallocated toward wages. Indeed, as Mr. Yoshikawa said, Japan is not a socialist country, so the state cannot decide the wages given by private corporations. However, in the past, during the New Year's period, we made a request that companies use revenues to offer bigger bonuses, and 64 companies offered bonuses 7% higher than they had in the previous year. This is a value that rivals the era of the bubble economy, and 132 companies increased the amount of bonus they offered by 5%. At the time there were those who criticized that there would probably not be any companies that would respond to that request, but that was how it turned out in the end.
Today Chairman Yonekura as well talked about efforts to connect improvements in corporate revenues to the enhancement of wages and employment. From President Toyoda and Chairman Kawamura too we heard very encouraging statements from the perspectives of the public nature and public utility of corporations.
Indeed, as Japan's deflation grew prolonged, Japan has been the only country to experience deflation the entire time. Hearing everyone's comments today, I was strongly encouraged that we will likely be able to overcome deflation in a way that only Japan can.
The economic policies that we are now advancing are being watched by the world. I believe that everyone will truly come together as one, like we have today, in our attempt to overcome deflation, and that if we succeed, it will demonstrate a new economic model to the world.
I want to close my remarks by stating that we in the Government will exert every effort. At the same time, on the management and labor side, I would like to express my gratitude for and request your cooperation in shifting toward the implementation of whatever you are each capable of."