Top �� Speeches and Statements by Prime Minister

Statement by Prime Minister Junichiro Koizumi on the "Basic Policies for Economic and Fiscal Management and Structural Reform 2004" (Cabinet Decision) June 4, 2004

Japan has made a breakthrough from its long economic stagnation and is now entering a stage towards a new leap forward. With the progress in structural reform, factors that have suppressed the Japanese economy since the burst of the bubble are being eliminated, bringing about bright signs of reducing the outstanding amount of non-performing loans, decreasing unemployment rate and of recovery in the economy led by private-sector demand. The "Basic Policies for Economic and Fiscal Management and Structural Reform 2004" forms the basic strategy to nurture the "buds" of reform into a "large tree." First, the Government sets FY2004 as the final year of the intensive adjustment period. The Government will work intensively toward issues concerning regions and small and medium-sized enterprises, and employment with the intention to extend the bright signs to all corners of the nation. -The Government will review the state subsidies as a part of the efforts to realize regional revitalization and create a structure where regions utilize this resource with greater flexibility. It will also engage in efforts to revitalize and enhance the agriculture, construction and tourism industries. -The Government will enhance employment measures for the younger generations facing high unemployment rates and develop employment policies responsive to the situation of each region. -The Government will promote measures for economic revitalization including the "Strategy on Creation of New Industries" and economic partnerships with Asian countries. Defining the period between FY2005 and FY2006 as the "Period for Intensified Efforts", the Government will endeavor to implement a comprehensive reform, including the privatization of postal services, reform package of three issues, bold regulatory reform, security measures and ensuring safety of the people, and the social security system, in order to ensure a breakaway from deflation and strengthen new foundation for growth. The Government will concentrate its efforts on economic revitalization, while concurrently continuing with its efforts to advance structural reform under the "Basic Policies 2004" to establish a foundation for a leap of the Japanese economy in the 21st century. In this, I ask for understanding and cooperation of the people of Japan.