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Kan promises fiscal reform, US ties

06-11-2010 19:09 BJT

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Japan's new Prime Minister Naoto Kan has vowed to tackle fiscal reform and strengthen ties with the United States. But his government has got off to a rocky start with one minister resigning over policy disagreements.

In his first policy speech to parliament as Prime Minister, Kan said Japan risks default if it neglects its ballooning public debt and loses market trust.

Naoto Kan, Japan's Prime Minister, said, "Japan is currently facing a difficult situation with the worst fiscal situation among developed countries. We cannot sustain public financing that overly relies on issuing bonds. As we can see in the euro zone confusion that started from Greece, there is a risk of default if the growing public debt is neglected and if trust is lost in the bond market."

Kan faces the urgent task of keeping economic recovery on track while trying to rein in its dependence on borrowing that has inflated Japan's debt to twice the size of its GDP.

Naoto Kan, Japan's Prime Minister, said, "We have an immense mount of debt and resolving it in a day is difficult. That is why we need to have drastic reform from now in order to obtain fiscal health."

Kan also emphasized Japan's relationship with the United States.

Naoto Kan, Japan's Prime Minister, said, "We will have the Japan-US alliance as the basis of our diplomacy and strengthen ties with Asian nations as well. I believe that the Japan-US alliance is a mutual wealth in the international arena, which backs up Japan's security as well as the stability and prosperity of the Asia-Pacific region."

Kan appointed a cabinet on Tuesday aimed at clipping the wings of a scandal-tainted party power broker and tackling the nation's economic woes.

But his cabinet got off a rocky start, as banking minister Shizuka Kamei who likes big spending stepped down over a policy disagreement.

But analysts say Kamei's departure improves the chance that Kan can forge ahead with efforts to address the country's huge debt.

 

Editor:Zhang Pengfei |Source: CCTV.com

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