Meeting of the Council on Economic and Fiscal Policy

On April 21, 2025, Prime Minister Ishiba held the fifth meeting of the Council on Economic and Fiscal Policy in 2025 at the Prime Minister’s Office.

At the meeting, the participants engaged in discussions on global response as well as Regional Revitalization 2.0 and priority issues for sustainable local administrative and fiscal affairs.

Following the discussion, the Prime Minister said:

“Today, we held discussions on ‘global response’ as well as ‘Regional Revitalization 2.0 and priority issues for sustainable local administrative and fiscal affairs.’

With regard to the global response, the situation remains unchanged where U.S. tariff measures could potentially have a significant impact not only on Japanese industries and the economy, including the automobile industry, but also on the global economy, despite the partial suspension of some of the reciprocal tariffs.

Last week, Minister Akazawa visited the United States and commenced negotiations with the U.S. government. We will continue to strongly urge the United States to reconsider a series of tariff measures, while grasping and analyzing their impact on domestic industries and the economy, and ensuring all essential support, including providing cash flow assistance.

Japan will demonstrate its leadership to maintain and strengthen a free and open trade and investment regime. We will also expand domestic investments and enhance the resilience of supply chains to build an economic structure that is resilient to external shocks, while promoting foreign direct investments in Japan, including the utilization and review of (national strategic) special zones.

With regard to regional revitalization and local administrative and fiscal affairs, we held discussions from a wide range of perspectives, and received the following opinions from the private-sector members: regarding regional human resource development and initiatives to create unique added value, we should support these initiatives while properly assessing their impact through the establishment of appropriate key performance indicators (KPIs); we should comprehensively take into account the level of urgency and economic and social impact in steadily promoting the formulation and implementation of the Mid-term Plan for the Implementation of National Resilience based on priorities; and it is necessary to achieve economic growth exceeding 1%, continue reforms of social security benefits and contributions, and build a tax system with smaller imbalances over the long term, toward sustainable local administrative and fiscal affairs.

Based on today’s discussions, we will draw up a ‘Basic Concept’ for Regional Revitalization 2.0 and move forward with efforts toward enhancing disaster prevention and reduction, national resilience, and sustainable local administrative and fiscal affairs, thereby creating an ‘enjoyable Japan’ and ‘enjoyable regional areas.’ In doing so, we will advance evidence-based policymaking in regional areas and produce high results. That is all from me.”