On 12th, Nikkei Business Paper says the Japanese government and the ruling party have recently announced their basic thoughts on the comprehensive economic measures, which will take handling high prices and promoting energy efficiency as its main contents, and the detailed contents will be determined in August.
This countermeasure, drawn up by the newly-elected minister of state for economic and fiscal policy Mr. Kaoru Yosano under the indication of Mr. Yasuo Fukuda in person after he finished the reshuffle of his Cabinet, contains the following three parts. Firstly, solve the issues of high prices, low income of non-regular employees and food safety, so that people can feel safe and relieved. Secondly, transit to a sustainable community, deal with the high oil and grain prices through energy efficiency, and construct residences with long service life. Thirdly, assist enterprises to adapt to new price system, and provide financial support to the small and medium enterprises in a difficult position caused by rise in price. Although Mr. Kaoru Yosano has implied the possibility of formulating Budget Amendment,
It is hard to draw on financial fund on a large scale if Japan would like to insist on the route of financial integrity. Mr. Yasuo Fukuda says, the Japanese government will spare no efforts to reduce unnecessary expenses, and will keep close negotiation with the ruling party from now on, to confirm the detailed content of the policy.
However, the Paper says, if no vivid economic growth strategy is drawn up, the economic countermeasure will just bring about limited effect, even though the Japan government can ensure certain financial resources. In Japan, the existence of administrative restrictions in some fileds has led to difficult reduction in price, while alleviation and cancellation of the restrictions are confronted with comparatively large resistance from the related fields, which is not mentioned in the countermeasure. In fact, the economy decline in Japan is out of excessive relying on overseas market demand. Now, Japan needs to expand domestic demand on the basis of avoiding issuing subsidies recklessly. |
