As a result of appropriate policy management by the second Abe administration, an end to deflation is now in sight and a virtuous economic cycle is beginning to emerge in Japan. The biggest and most urgent issue now facing Japan is to grasp this opportunity to put the economy back on a solid growth path to enhance people's living standard, as well as to chart a course towards full recovery from the Great East Japan Earthquake. In particular, it is important that initiatives to energize regional economies and to prepare for the 2020 Olympic and Paralympic Games in Tokyo drive the spread of this virtuous economic cycle throughout the country.

Keidanren urges the new administration to continue prioritizing economic revitalization and display strong leadership in boldly addressing the key policy issues listed below.

Keidanren will earnestly cooperate with the new administration to implement policy and, recognizing the role of private enterprise in driving growth, strive for economic revitalization by encouraging proactive management that promotes innovation and strengthens global competitiveness.

Key Policy Issues

1. Accelerate the pace of post-earthquake reconstruction efforts and link them to the creation of a new region.

2. Create a level playing field in the international business environment by lowering the effective corporate tax rate and securing stable energy supplies at a reasonable price, including the prompt restart of nuclear power stations once safety is assured.

3. Promote science and technology and decisively reform regulations and systems with a view to speeding up innovation and creating new business models.

4. Prioritize social security benefits programs and make them more efficient while steadily raising the consumption tax rate, in order to place public finances on a sound footing.

5. Create platforms for diverse and flexible work styles to support corporate efforts to utilize personnel effectively, including encouraging the active participation of women in the workforce. Promptly reform the education system to foster human resources capable of taking an active role globally and those capable of promoting innovation.

6. Steadily reinforce measures to address Japan's falling birthrate, aging society, and shrinking population, including improving the childcare environment and making use of foreign workers.

7. Invigorate regional economies by promoting the core regional industries of agriculture and tourism, taking disaster prevention and disaster risk reduction measures, strengthening national resilience, and facilitating private sector participation through private finance initiatives and public-private partnerships.

8. Achieve high-level, broad economic partnerships by such means as swiftly concluding negotiations for the Trans-Pacific Partnership, Regional Comprehensive Economic Partnership, Japan-China-Korea Free Trade Agreement, Japan-EU Economic Partnership Agreement, and Japan-Colombia Economic Partnership Agreement. Promote overseas expansion of infrastructure through joint efforts of public and private sectors. Further strengthen relations with neighboring Asian countries.