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ECONOMY > External Relations

Germany, UK unwilling to heed Abe’s plea for active spending 

  • May 7, 2016
  • , Asahi, Mainichi, Yomiuri, Nikkei, Sankei, Tokyo Shimbun
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All Saturday morning papers reported on PM Abe’s four-nation European tour, noting that he failed to persuade German Chancellor Merkel and British PM Cameron to support his efforts to forge a G7 consensus for active fiscal spending to shore up the global economy. The dailies speculated that when hosting the Ise-Shima Summit in late May, the Japanese leader will probably try to persuade the two European leaders to abandon their fiscal conservatism with the ultimate goal of justifying his possible decision to postpone the planned hike in the consumption tax, which some claim will contradict active spending and cripple the Japanese economy. Nikkei said while the U.S. basically supports increased spending by other G7 members, it would prefer to avoid doing so at home in order to maintain fiscal balance. Nikkei projected that Abe may not be able to enlist G7-wide support for his call for concurrently adopting loose monetary policies, active fiscal spending, and structural reforms.

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