(Provisional Translation) Observation by Prime Minister Junichiro Koizumi After the Intensive Discussion on the Reform of Systems and Policies August 30, 2002

The Koizumi Reform has entered into a new phase. Each Minister formulates bold structural reform plans of his/her own, and the Cabinet in unity realizes such plans. Through the Intensive Discussion at the Council on Economic and Fiscal Policies on 28, 29 and 30, I, envisioning with enthusiasm how Japan should be in the 21st century, intended to establish a new style of Cabinet with new political leadership to implement the reform of systems and policies. The Ministers took great initiatives in the top-down formulation of their reform proposals. I would like first of all to thank the Ministers as well as the members of the Council on Economic and Fiscal Policy who took part in the intensive discussion. I regard this Intensive Discussion as the first step towards early realization of the "Basic Policies for Economic and Fiscal Policy Management and Structural Reform 2002." The Ministers should continue to take initiatives and responsibilities for the implementation of the reforms. The Council on Economic and Fiscal Policy will also continue and deepen the discussion focusing on the important issues. The results of the discussion will be reflected to the FY 2003 budget as much as possible. I have entrusted Minister Takenaka with this focusing exercise. I observe that there remain systems and policies to be reformed in the areas which were not taken up this time. I expect that for the moment, fundamental reform plans be actively sought, digging down to the roots of systems, towards the formulation of "Guideline for Formulation of the FY 2003 Budget," or from a longer perspective. This 3-day Intensive Discussion strengthened my determination towards the reform anew. It has been a fruitful discussion indeed.