6 Jun 2013
Flash: Prospects for post-election reforms - Nomura
FXstreet.com (Barcelona) - Nomura economists note that Abe´s latest announcement has left the market feeling somewhat underwhelmed against expectations.
They note that it did not include any strategies in areas that have been debated in the Industrial Competitiveness Council and other forums and were initially expected to be implemented, including easing regulations for terminating employment, allowing the provision of a mixture of covered and uncovered medical treatments, deregulating corporate ownership of farmland, and lowering the corporation tax.
Further, with the Upper House election approaching, they feel that some of these reforms—and the political troubles that accompany them—are likely to have been pushed back. However, at the same time, they take a positive view of the announcement of strategies that take reform a step further, including allowing combined covered/uncovered treatment in the area of advanced medicine, and allowing drugs to be sold online. They write, “Debate will continue in the Industrial Competitiveness Council and elsewhere after the election, and as such we continue to see potential for the reforms not included in the latest announcement to be implemented further down the line.”
They note that it did not include any strategies in areas that have been debated in the Industrial Competitiveness Council and other forums and were initially expected to be implemented, including easing regulations for terminating employment, allowing the provision of a mixture of covered and uncovered medical treatments, deregulating corporate ownership of farmland, and lowering the corporation tax.
Further, with the Upper House election approaching, they feel that some of these reforms—and the political troubles that accompany them—are likely to have been pushed back. However, at the same time, they take a positive view of the announcement of strategies that take reform a step further, including allowing combined covered/uncovered treatment in the area of advanced medicine, and allowing drugs to be sold online. They write, “Debate will continue in the Industrial Competitiveness Council and elsewhere after the election, and as such we continue to see potential for the reforms not included in the latest announcement to be implemented further down the line.”