European Sovereign Debt Crisis

The European sovereign debt crisis has become the biggest risk factor to put down the world economy. It is feared that the turmoil in the bond and credit markets in Europe will have harmful effect on the real economy. Based on the consensus at the European leaders' summit, Eurozone member countries should responsively address fiscal reform. Japan should not afford to look at this situation with indifference. Through the promotion of comprehensive reform of social security, tax and fiscal system, Japan should demonstrate its strong determination to strengthen fiscal discipline to the rest of the world.

Comprehensive Reform of Fiscal, Tax and Social Security System

The reduction of Diet seats and the review of salaries for civil officials are critical but it would not be allowed to use the delays in these reforms for an excuse to postpone the comprehensive reform of fiscal, tax and social security system.

Decrease of Crude Oil Imports from Iran

Japanese companies are required efforts such as to seek new oil suppliers to avoid risks resulted from the decrease of crude oil imports from Iran. However, unless the situation deteriorates into a serious crisis, its influence on crude oil prices will be kept to the minimum.