Economists on Tuesday generally welcomed the economic ministers in Prime Minister Junichiro Koizumi's new Cabinet, saying they expect the lineup to puncture the country's ballooning budget deficits by slashing wasteful spending.
In addition, many economists expressed hope the new team won't try to exert excessive influence on the Bank of Japan's monetary policy, which stands at a crossroads with the economy showing indications it is coming out of a protracted deflationary state.
"The focus of Koizumi's agenda is budget reconstruction," observed Ryutaro Kono, chief economist at BNP Paribas in Tokyo. He said Internal Affairs and Communications Minister Heizo Takenaka and Finance Minister Sadakazu Tanigaki, who has been reappointed, will likely be the driving forces to tackle the task.
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