The world economy is in shape as a whole. The U.S. economy is going through the current adjustment period. These positive factors help us expect that the Japanese economy will steadily expand to the level of more than 2.5% real economic growth rate in FY 2006.
I agree with Prime Minister Abe that 'there is no fiscal reform without further economic development'. In the process of the reform, raised consumption tax can be used to meet the unavoidable revenue shortage. The figure of the tax hike is not visible yet, but the time can be guessed: the year of 2009 when the coverage rate of basic pension funds by the National Treasury goes up from one third to one half.
The visit was a big success. Prime Minister Abe has been saying that Japan should strengthen relationship with Asian countries while keeping close ties with the U.S., the political decision was great and he proved to be a man of action.
It is unforgivable, uncivilized act and it is only natural that international community is going to take harder attitude toward North Korea. Following the Japanese government's policy on this issue, private companies will take a very careful consideration of business activities with the country.
It was a fruitful trip. Economic relationship between Japan and EU countries is close and solid. European political and business leaders share our views on some extremely important issues such as the necessity of immediate reopen of the WTO talks. These are what were reconfirmed in our dialogue with the leadership of Europe.