Statement by Prime Minister Junichiro Koizumi on the "Basic Policies for Macroeconomic Management and Structural Reform of the Japanese Economy" (Cabinet Decision) Responding to the Proposals of the Council on Economic and Fiscal Policy (CEFP)

June 26, 2001

In order to establish an economic and social system befitting the 21st century, and under the concept that "without reform there can be no growth," structural reform of economic, fiscal, administrative and social areas is the most important task charged to me as Prime Minister. It was to this end these Basic Policies were compiled in a report by the Council on Economic and Fiscal Policy (CEFP). In order to make clear to the people of Japan the importance of structural reform and to define a path down which Japan must progress in the future, these proposals laid out by the CEFP has today become government policy by Cabinet Decision.

These Basic Policies will become the pivot of economic and fiscal policies of the Koizumi Cabinet. The Policies incorporate a drastic solution to the issue of non-performing loans for economic revival and also include seven reform programs. These will be reflected starting in the budget for the next fiscal year, and will contribute to future economic and fiscal management.

In promoting these Basic Policies, it is my intention to see to it that through such methods and fora as town meetings and the mail magazine, I will be above to engage in vigorous dialogue with the people of Japan, thus enhancing the transparency of the policy process and incorporating constructive ideas into concrete policy.

Hereby I sincerely ask for the understanding and cooperation of the people of Japan.