- Comprehensive Economic Measures
- Tax Reform
- Japan-China Relations
- Foreign Exchange Market
- Restart of Kashiwazaki-Kariwa Nuclear Power Plant
- Internal Reserves
- Exchange of Views among Government, Labor and Management
- Improper Acquisition of Information by Seconded Employees from Nippon Life
Comprehensive Economic Measures
(In response to a question about how to assess the unstable market indicators before the cabinet decision on comprehensive economic measures, and what positions were communicated at the Council on Economic and Fiscal Policy during the formulation process) Recent market movements clearly reflected speculation about future fiscal management, but I believe the markets have settled down over the past few days. I see these comprehensive economic measures as demonstrating the Takaichi administration's strong commitment to placing top priority on measures to address inflations while swiftly advancing crisis management investment and growth investment. The supplementary budget needs to be passed and executed quickly to avoid downside risks to the economy, respond to U.S. tariff measures, and address high prices.
At the same time, following Prime Minister Takaichi's concept of responsible proactive fiscal policy, I place importance on ensuring fiscal sustainability over the medium to long term and maintaining market confidence. It is crucial to continue communicating our commitment to fiscal consolidation with due regard for market confidence. On this point, considering that this fiscal year's government bond issuance is expected to fall below last year's level even after the supplementary budget, I recognize that appropriate consideration has been given. Looking ahead, the Council on Economic and Fiscal Policy will likely discuss how to set goals for medium- to long-term fiscal consolidation as we develop the Basic Policy on Economic and Fiscal Management and Reform. I intend to offer my views grounded in the need to maintain market confidence.
Tax Reform
(In response to a question about what perspectives are expected and which reform items Keidanren particularly emphasizes as tax reform discussions intensify toward year-end) I expect discussions to focus on achieving a strong economy by advancing crisis management investment and growth investment as advocated by the Takaichi administration.
When reviewing special tax measures, two things matter: we need clear prioritization because they are "special measures", and we need a tax system that can maintain international competitiveness. With that said, let me comment on specific measures. Tax incentives for research and development are essential to becoming a science and technology-oriented nation that Keidanren advocates. We need a system that keeps pace with other countries in terms of Japan's attractiveness as an investment location, encouraging R&D investment, and improving predictability. As for tax reduction measures related to capital investment, measures like tax credits and immediate depreciation are important to improve predictability and support future growth. Furthermore, regarding the wage increase promotion tax system, as Keidanren works toward further establishing the strong momentum for wage increases, this tax measure is crucial for helping small and medium-sized enterprises and loss-making companies secure stable resources for wage increases.
Japan-China Relations
(In response to a question about how to assess Prime Minister Takaichi having no contact with the Chinese side at the G20, and what is expected of the government regarding future Japan-China relations) Japan-China relations are among the most important bilateral relationships for Japan, and political stability is essential for mutual economic and business exchanges. Japanese and Chinese leaders have already confirmed the broad direction of comprehensively advancing a strategic relationship of mutual benefit and building a constructive and stable relationship. Within this broad framework, I expect the government to further strengthen communication at all levels and across all fields, working through mutual efforts to resolve issues and outstanding matters. Going forward, we need to build a bilateral relationship where understanding develops and cooperation happens through exchanges not only between leaders but at all levels and across all fields.
Foreign Exchange Market
(In response to a question about views on the Japanese yen exchange rate following the start of the Takaichi administration) I see recent exchange rate movements as reflecting market speculation about future fiscal management and the monetary policies of the Bank of Japan and overseas central banks. Both a strong yen and a weak yen have positive and negative impacts on the overall economy and people's lives, but exchange rate stability matters most. Last week the rate temporarily moved to around 157 yen per dollar, but I believe the exchange rate has calmed somewhat now that the scale of the comprehensive economic measures has become clear. We need to keep communicating our commitment to medium- to long-term fiscal consolidation to maintain market confidence.
(In response to a question about the appropriateness of foreign exchange intervention by the government) Fundamentally, exchange rates are driven by economic fundamentals, but in reality there are also short-term fluctuations caused by speculator activity. Generally speaking, foreign exchange intervention can serve as a cooling measure when sharp fluctuations occur over a very short period, but I believe the government will make appropriate judgments while monitoring exchange rate trends. In any case, the weak yen trend itself needs to be fundamentally corrected. I hope the government will pursue policies that both maintain market confidence and further strengthen our economic fundamentals. In other words, we need to achieve crisis management investment and growth investment to firmly raise potential growth. Beyond that, we must continue working on medium- to long-term fiscal consolidation and secure market confidence. I expect the Bank of Japan to pursue appropriate monetary policy to sustainably achieve the price stability target of around 2 percent.
Restart of Kashiwazaki-Kariwa Nuclear Power Plant
(In response to a question about impressions of Niigata Governor Hanazumi approving the restart of Kashiwazaki-Kariwa Nuclear Power Plant) I warmly welcome the decision by Governor Hanazumi of Niigata Prefecture to approve the restart. This decision resulted from the Governor himself carefully gathering opinions from prefectural residents and local mayors while pursuing safety assurance for the plant with Tokyo Electric Power Company and the government through thorough deliberations over an extended period, and I deeply respect this. I also want to express my gratitude to the people of Niigata Prefecture, who have contributed so greatly to supplying electricity to various industries and residents in the Tokyo metropolitan area.
As Governor Hanazumi of Niigata Prefecture said he will confirm, I want the government to take the lead in maximizing the use of nuclear power as a decarbonized power source by promptly advancing disaster prevention measures like developing evacuation roads. Additionally, I want Tokyo Electric Power Company to ensure thorough safety measures at the nuclear power plant and focus even more on fostering understanding among prefectural residents by communicating safety assurance activities in increasingly accessible ways. I also expect the Niigata Prefectural Assembly that begins on December 2 to conduct forward-looking discussions toward the restart while building on the background and deliberations that led to the Governor's decision.
Keidanren will also continue to communicate the growing need for nuclear power as DX (Digital Transformation) and GX (Green Transformation) are increasingly called for, while advocating for nuclear safety. We also want to advance exchange and collaboration with Niigata's business community and contribute to revitalizing the regional economy.
(In response to a question about whether the inspection of Kashiwazaki-Kariwa Nuclear Power Plant on December 1, following the inspection of Onagawa Nuclear Power Plant in September, stems from concern over delays in restarting nuclear power plants in eastern Japan) That's exactly right. In November last year, I visited Unit 7 of Kashiwazaki-Kariwa Nuclear Power Plant to confirm safety conditions in particular. This time, now that technical preparations are complete, I plan to inspect Unit 6. Through this inspection, I want to confirm the status of hardware safety measures based on lessons learned from the Fukushima Daiichi Nuclear Power Station. Beyond that, I would like to see with my own eyes not only the state of communication within the plant but also software aspects like the staff's ability to respond to emergencies.
Internal Reserves
(In response to a question about views on corporate internal reserve accumulation, amid criticism of the corporate savings rate at the Council for Japan's Growth Strategy) Excessive accumulation of internal reserves has been identified as a reason companies haven't been investing over such a long period. It's certainly true that during the roughly 30 years under deflation, management focused on cost-cutting and emphasized preserving employment over raising wages. We plan to release recommendations for corporate governance reform soon. The greatest mission of corporate managers is how to allocate resources like human capital, tangible assets, and financial capital. Allocation destinations include capital investment, research and development investment, human capital investment, and investment in new fields. They also includes returns to shareholders like enhanced dividends and share buybacks, as well as allocations to internal reserves.
While companies are criticized for accumulating internal reserves excessively, internal reserves themselves serve a valid purpose as a buffer against risks companies face. I believe it's crucial for managers themselves to autonomously deploy resource allocation functions for multiple stakeholders, including social contributions and philanthropic activities across various dimensions. While internal reserves are admittedly relatively large compared to overseas, Keidanren intends to call for directing them toward investment through recommendations on corporate governance reform and other means going forward.
(In response to a question about approaches to returns for workers) Wage increases and comprehensive improvements in treatment must be positioned as investment in people. This means viewing personnel costs not as costs but as investment toward improving and enhancing future productivity, and positioning them as investment that also boosts worker motivation and promotes workers' own growth and value enhancement. Based on this understanding, in the forthcoming 2026 Report of the Committee on Management and Labor Policy, we will articulate Keidanren's determination to aim for further establishing the strong momentum for wage increases and will call on companies to actively implement investment in people.
Exchange of Views among Government, Labor and Management
(In response to a question about position toward the exchange of views among the government, labor and management being held for the first time under the Takaichi administration today) The theme is the 2026 spring labor-management negotiations. As a social responsibility, Keidanren wishes to express its determination to work with strong commitment toward further establishing the powerful momentum for wage increases. We intend to call for this going forward with particular focus on establishing consideration of base pay increases as the standard for wage negotiations. Additionally, after emphasizing the need to transform the managerial mindset itself toward an investment-driven model that expands capital investment, research and development investment, and human capital investment, I want to express that Keidanren will lead the way in working toward further establishing the strong momentum for wage increases, particularly as human capital investment.
Since taking office, Prime Minister Takaichi has repeatedly stated that creating an environment that enables continuous wage increases is precisely the government's role. Today, I wish to express both our expectations for the government to prepare this environment and Keidanren's determination to firmly undertake this as a stakeholder.
Improper Acquisition of Information by Seconded Employees from Nippon Life
(In response to a question requesting a summary of the case involving improper acquisition of information by seconded employees from Nippon Life) I must deeply apologize for causing tremendous concern and inconvenience not only to our customers but also to society, financial institutions, and as Keidanren chairman, to our member companies. Among the causes of this problem is the fact that while making relationships strengthening with financial institutions through secondees a mission, we also placed expectations on the importance of information gathering in general. Those expectations ultimately created a bias at the staff level toward acquiring information in inappropriate ways. This is in no way the responsibility of the staff members themselves. I recognize the cause lies in how expectations regarding the mission of such secondees fostered a culture that led to inappropriate information acquisition.
(In response to a question about views on initially not disclosing details of sanctions against related executives) The reason for not proceeding with disclosure was the judgment that this case posed no risk of violating laws, was not a serious criminal matter, and did not require fundamental reconstruction of company-wide governance. However, it's undeniable that this case had broad social impact, and after promptly reconsidering based on opinions from society and stakeholders, we arrived at disclosing details of sanctions against the responsible executives today.
(In response to a question about whether market confidence has been obtained regarding the reasons initially given for not disclosing details of sanctions against related executives) I cannot immediately judge whether the term market confidence is appropriate here, but in any case, it's clear that public trust in Nippon Life has been significantly damaged. We must reflect on this, make efforts to prevent recurrence, and furthermore achieve overall restoration of trust. Taking this case seriously and based on this understanding, we arrived at the decision to sanction related executives, including voluntary return of a portion of my own compensation.