Ladies and Gentlemen,
I would like to express my sincere gratitude to the EU-Japan Centre for Industrial Cooperation and the Japanese-German Centre, Berlin for inviting me to this conference. It is a great pleasure for me to speak to you at the beginning of this significant event this afternoon. I sincerely hope that in trying to address the question "Better regulation, why Japanese companies should get involved", some guidance will be provided for further discussions on the future direction of the Japan-EU partnership. As an introduction to today's discussion, let me briefly explain the on-going regulatory reform in Japan, and the importance of the regulatory cooperation between Japan and the EU.
The regulatory reform has been one of the top policy challenges in Japan, in particular, since 2001. It is an important instrument contributing to structural reforms such as the enhancement of safety and quality of life, regional revitalization, as well as the promotion of innovation contributing to economic growth.
As we understand, the regulatory reform is indispensable in enabling people to gain firsthand from economic upturn and the benefits of the reform as well as in allowing the government to achieve simple but efficient organization, in other words, government "with muscle but no fat."
Therefore, we must boldly and promptly seek for reform of outdated regulations which hinder innovation and economic growth. At the same time, the creation and coordination of new regulations are also needed in order to ensure and enhance the welfare of the people.
To pursue this daunting task, a Minister for this special mission was assigned in January 2001, and an advisory body to the Prime Minister of Japan, namely the Council for the Promotion of Regulatory Reform, was created in April 2001, which was reorganized in 2004 and 2007. The purpose of this Council is to deliberate and make proposals on important policy issues on regulatory reform.
Up until now, we have addressed regulatory reform in various fields, such as medical services, social welfare and childcare, education, agriculture, and employment. Consequently we have introduced some new policies. One example is 'Market Testing", under which the public and private sectors bid competitively to evaluate whether some public services, such as employment and vocational guidance services provided by the government, can be offered by the private sector. Another is the "Special Zones for Structural Reform" program under which some regulatory exemptions are permitted by local governments in order to encourage and support a local initiative for economic revitalization.
Currently, the Council is promoting further reforms in order to resolve some outstanding issues which are fraught with difficulties. In consideration of current economic and social circumstances, the Council is focussing on reforms through which people can quickly reap the benefits and regional economies are revitalized.
We are also aware of what is happening in the EU. The European Commission embarked on a programme for 'Better Regulation' in 2002 to simplify and improve the regulatory environment. Out of this sprang the three year programme which started operating in 2005 in the most heavily regulated sectors, such as cars, waste and construction, with other sectors to follow. The European Council also agreed to promote further actions regarding Better Regulation in March this year. I understand that you will hear about this process in a more detailed manner later.
Under the present business circumstances where more than 3100 Japanese companies have expanded their business in the EU, the EU's Better Regulation policies have a direct impact on these Japanese companies. Therefore they have been paying great attention to the progress of the 'Better Regulation' policy. Similarly, EU companies conducting business in Japan have found that Japan's Regulatory Reform has had a direct effect on their business activities.
Japan and the EU set up the Japan-EU Regulatory Reform Dialogue in 1994. This dialogue has been a framework for the betterment of both the Japanese and European business environment. Each year dialogues have been held both in Brussels and in Tokyo where both sides exchange views on regulatory reforms. The last 14 years of these Dialogues have resulted in a much improved regulatory environment on both sides.
Furthermore, the EU-Japan Business Dialogue Round Table held in Berlin this June made proposals to deepen Japan-EU economic integration in order to exploit the full potential of Japan-EU economic relations.
The challenges we face are not only to dismantle existing trade and investment obstacles, but also to tackle new issues such as the environment, energy, innovation, intellectual property rights, security and product safety.
In addition to our ongoing cooperation through several dialogues, we also welcome and study with care any new approach initiated by both industries for further economic integration between Japan and the EU.
In order to find ways of bringing Japan and the EU towards a more efficient regulatory environment conducive to new business and investment, this conference certainly offers a great opportunity. It is my hope that lively and substantive discussions in this forum will provide useful inputs for a more enhanced relationship.
Thank you very much for your attention.
