Statement by Prime Minister Junichiro Koizumi Concerning the Cabinet Decision on the Structural Reform and Medium-term Economic and Fiscal Perspectives in response to the report by the Council on Economic and Fiscal Policy (CEFP)

January 25, 2002

The Council on Economic and Fiscal Policy (CEFP) compiled a report on the Structural Reform and the Medium-term Economic and Fiscal Perspectives to show a future profile of Japan's economy and society as its goal and a clear prospect for medium-term economic and fiscal management, mainly through structural reforms, to attain this. Upon receiving this report today, my Cabinet decided on the "Reform and Perspectives" as government policy. My Cabinet will combine this "Reform and Perspectives" together with the "Structural Reform of the Japanese Economy: Basic Policies for Macroeconomic Management", decided by the Cabinet in June last year; the so-called Basic Policy, to further accelerate the promotion of the structural reform. We should not forget that Japan, even in comparison with other countries in the world, can still take pride in some of its important foundations that include a high level of basic academic prowess, affluent private financial assets, social stability and rich nature. What is important is, as is demonstrated in the "Reform and Perspectives", that we maintain these foundations and strengthen them. Furthermore, we should construct an economy and society in which each and every individual could live up to his or her capability, engaging oneself in innovation and creation. By sharing this future perspectives with the people of Japan and deepening their compassion towards the structural reform, I am convinced that we can accelerate the reform, overcome the deflation within the two year intensive adjustment period. We can eventually achieve steady economic growth lead by private sector demand, attain a sustainable fiscal structure and the economic and social profile as described in the "Reform and Perspectives." I hereby earnestly ask the Japanese people for their understanding and cooperation.