Japanese visit
May 5, 2009
Earlier this year, Japan criticized Germany for its reluctance to offer up additional government spending measures to stimulate the economy. Yet although Japan and Germany have taken different approaches to dealing with the current recession, Japan's premier praised Germany's initial handling of the crisis.
"Germany did a lot to stimutlate the economy, in a positive manner and even very early on, and I must ascertain that Germany was better than Japan because they reacted more quickly," Aso said at a press conference following his meeting with German Chancellor Angela Merkel.
Aso also noted that his plan to give money to Japanese consumers who trade in old cars for more fuel-efficient models was based on a similar German "cash for clunkers" program. That plan has been credited with boosting car sales in Germany.
A different approach
"There is a whole series of similarities between Germany and Japan," Merkel said of the two global economic powerhouses, whose leading export markets have suffered badly as a result of the economic crisis.
Germany is trying to avoid the type of long-term stagnation and deflation, which characterized Japan's so-called "lost decade" in the 1990s.
The leaders diverged on the subject of future tax increases to fund economic recovery programs, a proposal Japan is considering.
"Each country has to go its own way in fighting the recession," Merkel said. "What we need now are signs of encouragement and hope, and I don't think the announcement of tax increases for Germany is a way of generating the growth we need."
Global warming a concern
Aso was in Berlin on Tuesday as part of a three-day trip to Europe, where he is also meeting with European Union leaders. In addition to the economy, environmental issues were high on Aso's agenda.
Japan is ready to cooperate with the EU on a new international deal to curb global warming, Aso said, remarking that "our generation is responsible for solving this problem."
"The main polluters need to take responsibility here. Japan and Germany, and the other industrialised nations, need to take a leading role," Aso said.