This Week’s “Nagata-cho” (1-8.Jan, 2014)

 On January 6, Prime Minister Shinzo Abe held the New Year’s Press

conference. In the address, Abe pledged to promote further his

economic policy dubbed “Abenomics” in light of the perception that

the economy has steadily turned upward from the ‘critical situation’

of one year ago, while reserving that it is still halfway of getting

away from the deflation. Also, given predictions of decreasing

consumption after the sales tax hike to 8% from April this year, Abe

vowed to deliver actual feeling of recovering economy to the people

firsthand by this spring. The idea is to let people throughout the

country feel the recovering economy by raising wages in mid- and

small-sized enterprises and revitalizing local economies in order to

achieve a “positive cycle” of economy and to regain the “strong

economy”.

 Abe has regarded the ordinary session of the Diet to be convened on

January 24 as “Diet to achieve positive cycle of the economy”. The

Cabinet has compiled the record largest 95.88 trillion yen of the

general account budget for FY 2014 in addition to the 5.46 trillion

yen of the supplementary budget for this fiscal year to finance the

economic measures to alleviate possible negative economic impacts of

the consumption tax hike in April.

 Furthermore, the Cabinet scheduled to revise the growth strategy by

middle of this year to promote structural reforms in the field of

employment, agriculture, medical care, etc., while implementing the

legislation of industrial competitiveness and special economic zones

steadily. Abe also mentioned decreasing of corporate tax rate by 2.4%.

 The government and ruling parties are willing to pass the

supplementary budget by early-February and the initial budget FY 2014

in March through the Diet. Yet, the opposition parties such as

Democratic Party of Japan have been repelled by the coercive tactic

taken by the ruling coalition in the year-end over the special

intelligence protection legislation, and there is likely a political

turmoil from the beginning of the ordinary Diet session.

 For more, Abe recognized the TPP as a “long-term strategy to form a

framework to secure prosperity of the Asia-Pacific region” and vowed

to carefully determine the final destination since it is a matter that

each country’s national interests confront each other. Over the

controversial 5 agricultural items, Abe sustained the conventional

recognition that the government has engaged in the negotiation while

holding both the aggressive and protective stances.

 Abe also emphasized his “proactive contribution to peace” stance in

the diplomatic aspect. In relation to South Korea and China, with

which Japan’s relationship has been worsened, Abe once again called

for summit meetings as the “door is always opened for dialogue.”

With regard to Abe’s visit to Yasukuni Shrine as well as Abe’s

determination toward reinterpretation of Constitution as to permit the

right to collective self-defense which have caused great concerns in

the neighboring countries, Abe said he would explain the intension

carefully to both the governments.

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