Continuing tight fiscal policy may have aroused the public sentiment calling for a growth strategy in the two countries. It seems that French President-elect François Hollande has no intention to ignore the requirement of fiscal discipline. The new leader is simply saying that economic growth is important as well. The Franco-German summit scheduled next week is the center of attention. As for Greece, It is necessary to watch how the nation will take financial help from the global community.
The results of the French and Greek elections seem to have caused an overreaction in global financial market as the trend for stronger yen is evident in foreign exchange markets. Calm judgment is just needed.
It is necessary to leave room to reconsider requirement to obtain points under the system flexibly and improve the treatment.
Japan, China and Republic of Korea (ROK) need to discuss setting up free trade agreement with a sense of urgency because the FTA will become the core of ASEAN+6 wide integrated economic zones. The Japanese business community will urge the leadership of the three countries to facilitate talks for the trilateral FTA in parallel with the negotiations between China and ROK towards their bilateral agreement.