In his first general-policy speech before the Diet on Friday, Prime Minister Naoto Kan showed that while he will inherit the major policy line of his predecessor Mr. Yukio Hatoyama, he will make a clear departure in economic policy, calling for serious efforts to reconstruct state finances.
Financial reconstruction is inevitable in the long run. But utmost care must be taken to prevent the economy from cooling down. As Mr. Kan said, in the short run, the government and the Bank of Japan must do their best to pull the nation out of deflation.
At the outset of his speech, he correctly stated that his biggest task is to regain people's trust in politics in the wake of Mr. Hatoyama's resignation over his and former Democratic Party of Japan Secretary General Ichiro Ozawa's involvement in funds scandals and the mishandling of the issue of the relocation of the U.S. Marine Corps Air Station Futenma, Okinawa.