Top �� What's up around the Prime Minister �� June, 2002

The Eighteenth Meeting of the Council on Economic and Fiscal Policy (CEFP) Friday, June 21, 2002 The eighteenth meeting of the Council on Economic and Fiscal Policy was held at the Prime Minister's Official Residence. At the meeting, a decision was taken to adopt "Basic Policies for Economic and Fiscal Policy Management and Structural Reform 2002," which aims to advance structural reform and enhance the vitality of Japan's economy and society. Afterward, the report was handed to Prime Minister Junichiro Koizumi by council member Jiro Ushio. These Basic Policies represent the second step following up on the so-called "Basic Policies" adopted by Cabinet decision in June 2001, and Prime Minister Koizumi himself took the lead in compiling the policies and indicating their direction. As economic revitalization strategies, the Basic Policies identify six strategies and thirty action programs aiming for market creation by "expanding private sector businesses" through enhancement of Japan's industrial competitiveness and regulatory reform. Furthermore, the Basic Policies stipulate that tax reform is to be launched from FY2003, with a view to making the tax system broad, light and simple, and that, in principle, the financial resources to underpin tax reform must not be dependent on the issuance of government bonds. After receiving the report, Prime Minister Koizumi addressed the Council, stating, "I intend to see that this report is promptly adopted by Cabinet decision, and to make it the basic policy of the Government. Furthermore, I intend to take actions as quickly as possible on those matters that can be promptly implemented in order to take interim steps to revitalize the economy and overcome deflationary pressures."