Japan PM Vows To Institute Virtuous Cycle

Prime Minister Shinzo Abe vowed Sunday to end the country’s deflation and create a virtuous cycle that would lead to wage increases, calling for an early passage of spending bills to prop up the economy after the scheduled sales tax hike next April.

Speaking at a congress of the ruling Liberal Democratic Party in Tokyo, Abe also called for continued cooperation between the LDP, which he heads, and its junior coalition partner, the New Komeito party, to achieve “substantial results.”

The LDP, meanwhile, adopted a working policy at the meeting to hold gatherings across Japan aimed at rewriting the country’s U.S.-drafted Constitution.

The New Komeito remains cautious about moves within the LDP toward rewriting the war-renouncing Constitution or loosening constitutional limits on the activities of the country’s Self-Defense Forces abroad.

Saying that the economy has been recovering since the LDP replaced the Democratic Party of Japan in power, Abe said his LDP-led government in the past year or so has managed to “blow away the thick black clouds hanging over Japan.”

“We will seek to translate improvements in corporate earnings into wage increases,” said Abe in his speech at the party congress. “We must create a virtuous economic cycle.”

via Mainichi

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