Policy Proposals  Comprehensive Strategy   Keidanren's Requests for the New Administration

(Tentative translation)
October 13, 2015

The progress of Abenomics since Prime Minister Abe took office in December 2012 is continuing to reinvigorate the Japanese economy. However, there are also risk factors for the future, including concerns over the slowdown in China and other emerging economies. Japan stands at a crucial juncture in its effort to rid itself of deflation and achieve tangible economic revitalization. The government also needs to enhance the credibility of Japan's public finances. Now is the time for the political leadership, the government, and the private sector to work together in mobilizing all the policies and resources at their disposal to ensure that the effort bears fruit.

Abenomics has entered its second phase. As the new cabinet was established, the Abe administration achieved a tremendous result in reaching broad agreement on the Trans-Pacific Partnership Agreement. The business community has high expectations for the new "three arrows" of Abenomics. Under the leadership of Prime Minister Abe, Keidanren urges the new administration to devise and swiftly implement specific policies in these areas. In particular, Keidanren expects the new administration to resolutely address the key policy issues listed in the attachment, making the generation of a virtuous economic cycle the highest priority.

Recognizing that the business community has a leading role to play in promoting economic growth, it will cast off the deflationary mindset, engage in bold and proactive management initiatives, and boost capital expenditure and R&D investment to further strengthen and expand revenue bases and generate new growth opportunities, as well as earnestly cooperating in the implementation of the new administration's policies.


1. Accelerate Post-Earthquake Reconstruction and Create a New Tohoku

  • Form innovation clusters in the Tohoku region and create an attractive investment environment
  • Rebuild the lives of those affected by the disaster and promote sustainable urban development

2. Steadily Implement "The Plan to Advance Economic and Fiscal Revitalization" Aimed at Achieving Primary Surplus by Fiscal 2020

  • Reduce primary deficit to 1% of GDP by fiscal 2018
  • Implement consumption tax increase as scheduled in April 2017
  • Reform social security systems by streamlining benefits and reducing insurance premiums

3. Formulate and Implement Comprehensive Economic Policies Based on Economic Trends and Other Key Factors

  • Promptly reduce effective corporate tax rate to below 30%
  • Implement bold regulatory and institutional reforms to boost corporate vitality
  • Take measures to stimulate mid- to long-term consumption

4. Ensure Stable and Economically Viable Energy Supply

  • Speed up process of restarting nuclear power stations once safety is assured
  • Overhaul feed-in tariff system for renewable energy
  • Build international framework for fair and effective climate change measures that is capable of balancing economic and environmental needs and involves participation by all major emitters

5. Promote Scientific and Technological Innovation Policies

  • Create new core industries in fields including the Internet of Things, artificial intelligence, and robotics
  • Foster and support venture companies
  • Strengthen cyber-security measures
  • Promote smooth introduction and private-sector applications of the Social Security and Tax Number System

6. Facilitate Regional Revival

  • Enhance competitiveness of core regional enterprises and promote tourism and agriculture
  • Implement measures for disaster prevention, disaster mitigation, and strengthening of national resilience

7. Swiftly Bring TPP Agreement into Force and Build FTAAP by 2020

  • Promptly conclude negotiations for the Regional Comprehensive Economic Partnership and the Japan-China-Korea Free Trade Agreement
  • Promptly conclude negotiation for the Japan-EU Economic Partnership Agreement
  • Further strengthen relations with other countries, especially in Asia

8. Implement Measures to Achieve Target Fertility Rate of 1.8

  • Expand childcare support funded by general tax revenue
  • Encourage inflow of foreign human resources

9. Encourage Active Workplace Participation of Women and Professional Development

  • Create work-style-neutral tax and social security systems
  • Build platforms for diverse and flexible work styles
  • Reform education systems to foster human resources capable of taking an active role globally and those capable of promoting innovation

10. Ensure the Success of Tokyo Olympics and Paralympics

  • Use the hosting of the Games as an opportunity to strengthen growth
  • Leave a lasting legacy beyond the hosting of the Games