The European debt problem triggered by the Greek crisis this year provides a good opportunity for both Japan and Germany to start fiscal consolidation efforts in the face of mounting public-sector debts, experts from the two countries told a recent symposium in Tokyo.
Germany has to "re-establish" its post-World War II social market economy model as its welfare expenses have ballooned, they said. Japan needs to pursue more deregulation while seeking new ways of providing safety net for its workers, they noted.
The experts were speaking at the June 18 symposium jointly organized by the Keizai Koho Center, the Japanese-German Center Berlin and Konrad-Adenauer Stiftung under the theme "The social market economy in Europe and its implications for Japanese businesses." Mikio Sugeno, a senior writer for the Nikkei business daily's Financial News Department, served as moderator of discussions.