Japan's Council on National Strategy and Policy on Wednesday decided on a basic strategy for the revitalization of the nation and set a target of achieving a median 3 percent economic expansion between fiscal 2011 through 2020.
The office of Prime Minister Yoshihiko Noda -- himself the council's head -- will formalize the basic strategy by the end of this year, with the policy widely expected to be in-line with the economic growth and revitalization scheme originally introduced by Naoto Kan, Noda's forerunner.
The basic strategy also seeks to address the nation's lingering deflation and has taken into consideration downside pressures both at home and abroad.
"I believe this cannot be done without looking at the issues of the European crisis the world is currently facing. Speaking from this perspective, the recent sovereign risk issue of Europe basically stems from the fiscal problems of each country," Noda said recently at the 2nd Council on National Strategy and Policy meeting.
The Japanese leader also said that endorsing free trade could be efficacious in aiding Japan's economic expansion target.
"Against the backdrop of concerns over the possible emergence of protectionism, we need to formulate a strategy with a resolve to promoting free trade. It was from that perspective that I recently announced that Japan would enter into consultations with the countries concerned toward participating in the negotiations of the Trans-Pacific Partnership (TPP) Agreement," Noda said.
He also said that he wished for trade and investment talks with other economic powerhouses in East Asia, including China, the world's second-largest economy, to be concluded at the nearest opportune moment.
"Japan hopes to accelerate the discussions of Japan-China-ROK Free Trade Agreement (FTA) and to work towards the completion of an investment agreement among the three countries before the end of the year," said the Japanese leader.
Noda concluded that he wished the strategy to form the basis of the budget for fiscal 2012, stating: "Our discussions are aimed at formulating a basis strategy for the revitalization of Japan and if possible I would like to utilize such a basic strategy in the formulation of the budget for fiscal 2012."