In his New Year press conference at the prime minister's official residence Prime Minister Keizo Obuchi defined 1999 as a watershed year and declared that his cabinet would work to bring about "true affluence" by tackling five priority areas: economic recovery, employment, the environment, social security, and child care and education.

Prime Minister Keizo Obuchi, together with Chief Cabinet Secretary Hiromu Nonaka, Minister for Foreign Affairs Masahiko Koumura, and other government officials, paid his respects at Ise Jingu, Japan's premier Shinto shrine, in Ise City, Mie Prefecture. To mark the occasion he wrote out two phrases from the ancient Chinese classic known as the Shi ji (Book of documents) that provide the basis for the present reign name Heisei, signifying peace in heaven and on earth. Obuchi himself announced the new reign name in 1989, when he was chief cabinet secretary, upon the passing away of the previous emperor and the accession of the present emperor. Asked by reporters what he had prayed for, the prime minister replied, "I pray every day for well-being for all people, but today I also prayed for tranquillity for the nation."

Prime Minister Keizo Obuchi visited France, Italy, the Vatican, and Germany. Meeting with leaders of major European countries just after the introduction of the euro, he impressed upon them that Japan was a stable and reliable partner.

In France, his first destination, the prime minister met with President Jacques Chirac in Paris the night of January 7. The two leaders shared the perception that a stable euro-yen exchange rate was important for the stability of the international currency system and agreed to establish a new framework regarding exchange markets. After their meeting a joint press statement was released.

The prime minister arrived in Italy the night of January 8, and on January 9 he had an audience with Pope John Paul II in the Vatican, after which he met with Italian Prime Minister Massimo D'Alema at the government guest house in Rome. As in France, a joint press statement was released stating the two leaders' agreement on cooperation for reform of the international financial system, the importance of a stable euro-yen exchange rate, and the establishment of a new framework in regard to exchange markets while watching their trends even more carefully than before. Following the meeting the prime minister attended a luncheon in his honor hosted by Prime Minister D'Alema and his wife. Japanese soccer player Hidetoshi Nakata, now a member of Italy's Serie A pro soccer league, was also invited.

On January 12 the prime minister attended a welcoming ceremony at the chancellor's office in Bonn, Germany, his final destination, and then met with German Chancellor Gerhard Schroeder. They agreed to work together for the stability of international exchange markets, including euro-yen transactions. After the meeting a joint press statement was released.

Through his tour of three major countries participating in the program of monetary union the prime minister confirmed a cooperative approach to ensure stability on exchange markets.

Prime Minister Keizo Obuchi reshuffled his cabinet to reflect the newly formed coalition between his Liberal Democratic Party and the Liberal Party. The new cabinet had two fewer members than before (down from 20 members, not counting the prime minister, to 18) and included Liberal Party Secretary General Takeshi Noda as minister for home affairs. Most other cabinet members remained the same as before. Immediately afterward the new cabinet met for the first time at the prime minister's official residence. At a press conference following the cabinet meeting, the prime minister said, "We will cooperate on the basis of a new conservative ideal, and hope to play a major role for the sake of the people and the nation through a synergistic effect."

On the fourth anniversary of the Great Hanshin Earthquake, which devastated Kobe and surrounding areas, a memorial ceremony for the 6,430 victims of the quake sponsored by Hyogo Prefecture and other bodies was held at the Hyogo Prefectural Public Hall, Kobe. Those attending included Their Highnesses Prince and Princess Akishino, Prime Minister Keizo Obuchi, and members of victims' families. After opening remarks by Hyogo Governor Toshitami Kaihara, the prime minister addressed the assembly. "We will never forget the valuable lessons of this great disaster," he said. "I pledge our commitment to actively promoting comprehensive disaster countermeasures, including crisis management, in order to create a society in which people can live free of anxiety."

After attending a memorial ceremony for victims of the Great Hanshin Earthquake in Kobe, Hyogo Prefecture (see preceding item), Prime Minister Keizo Obuchi met with about 20 overseas students of Kobe University at the Hyogo International Students House, Kobe, responding thoughtfully to a variety of questions.

Representatives of participants in the eleventh cruise of the Ship for World Youth paid a courtesy call on Prime Minister Keizo Obuchi at the prime minister's official residence before setting off for the Solomon Islands, Tonga, Equador, Mexico, and other destinations. The prime minister encouraged the representatives, saying, "I hope you will build on the experiences and friendships gained through this project to become a bridge to the world and contribute to peace and friendship in the international community."

Prime Minister Keizo Obuchi delivered a policy speech to a plenary session of both houses of the National Diet on the opening of the legislature's 145th session. The prime minister delineated policies for "five bridges to the twenty-first century": bridges to the world, to prosperity, to safety, to security, and to the future.

Leader Mitsuhiko Horikiri and other members of the seventh Japanese contingent of the United Nations Disengagement Observer Force (UNDOF), providing transportation and other secondary support for UNDOF in the Golan Heights, Syria, visited Prime Minister Keizo Obuchi at the prime minister's official residence to pay their respects before departing on January 29.

Chiaki Mukai, John Glenn, and other crew members of the space shuttle Discovery paid a courtesy call on Prime Minister Keizo Obuchi at the prime minister's official residence. They presented the prime minister with a plaque bearing the Japanese flag that had been taken on the mission last November. In thanking them, the prime minister said that he thought space development through international cooperation was a superb achievement.