Trade chief Mitsuo Horiuchi assured European Commission Vice President Leon Brittan on Monday that the Japanese economy will soon return to a stable recovery driven by domestic demand.During his meeting with Brittan, Horiuchi said a range of economic pump-priming measures, including 2.3 trillion yen worth of corporate tax cuts, will begin to revitalize the nation’s business activities from April onward, according to an official at the Ministry of International Trade and Industry.Horiuchi noted that a series of tax reduction measures will benefit foreign companies in Japan, expressing his encouragement for greater European investment in Japan. He also assured Brittan that the government is fully committed to restoring stability in its financial system, noting that transparency will be ensured, the ministry official said.Earlier in the day, Brittan expressed concern over Japan’s export-driven economy, Foreign Ministry officials said. Brittan made the remark at a meeting with Foreign Minister Keizo Obuchi.Brittan told Obuchi that Japan’s trade surplus with the European Union in the short term may be acceptable if Japan properly implements deregulation and macroeconomic policies, the officials said. Obuchi responded that Tokyo will continue to promote high-level dialogue with the EU on the issue of deregulation, they said.
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