December 21, 2000
Financial Services Agency

High-Level Meeting with the European Commission

A High-Level Meeting co-chaired by the European Commission and the Japanese Financial Ministry took place at the European Commission in Brussels on 11 December 2000. Mr. Yoshio Okubo, Deputy Commissioner for International Affairs, and other representatives attended the Meeting from the FSA.

The following is the Press Release announced after the closing of the Meeting.

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EU-Japan High-Level Meeting on Financial Issues

This year's annual EU-Japan High-Level Meeting on Financial Issues took place at the European Commission in Brussels on 11 December 2000.

Mr. John F. Mogg, Director-general of DG Internal Market, European Commission, and Mr. Giovanni. Ravasio, Director-general of DG Economic and Financial Affairs, European Commission hosted the meeting. They were also accompanied by officials from their respective DGs.

As the Japanese delegation, Mr. Haruhiko Kuroda, Vice Minister of Finance for International Affairs, and Mr. Tadashi Iwashita, Senior Deputy Director General of the International Bureau, both of the Japanese Ministry of Finance, and Mr. Yoshio Okubo, Deputy Commissioner for International Affairs, Japanese Financial Services Agency were accompanied by officials from their respective Ministry and Agency. This is the first time that representatives from the FSA have attended these consultations in Brussels.

The meeting was co-chaired by Mr. J. Mogg, and Mr. G. Ravasio on the Commission side, and by Mr. Kuroda on the Japanese side.

Fruitful discussions were held in a friendly atmosphere on issues including macro-economic developments in Japan and the EU, regulatory and supervisory developments in the financial services, and developments in the markets in Japan and the EU.

In the morning session, the agenda covered exchanges of information on financial services in the EU, in Japan and at the international level. Both regulation and market developments were discussed.

The Commission side presented the EU Financial Services Action Plan and elaborated on the need for sound prudential regulation, including on a consolidated basis. Distance marketing, accounting and financial reporting as well as securities trading in the EU were described.

The Japanese side reported on Japan's progress on financial system reform. It also described recent measures in the Japanese financial services area with a focus on insurance and banking, including the changes in the Deposit Insurance Law and the Insurance Business law.

The EU-Japan Regulatory Reform Dialogue and Japanese and European proposals regarding financial services were touched upon. Both sides also exchanged views on the WTO negotiations regarding financial services.

Other topics included the recent changes in the Japanese financial administration, and the follow-up to the EU-Japan Summit that took place in July 2000.

In the afternoon, the focus moved to macroeconomic issues. The Commission side explained the current economic growth supported by sound macro and structural policies in the euro area and the economic impact of the euro development. The importance of EMU was emphasized. Both sides exchanged views on the developments in the world economy, such as the impact of oil price rises and the slow-down in the US economy.

The Japanese side described the current economic situation and recent measures intended to support the recovery in the Japanese economy, such as the new economic package. They also noted the current fiscal position, the effort to enhance accountability and efficiency of fiscal policy, and the importance of fiscal consolidation after achieving the full recovery.

On international issues, the Commission side explained their work on regional co-operation in the Balkans. The Japanese representatives presented Japan's views on its role in Asian regional co-operation.

Overall, this year's High-Level Meeting successfully promoted a deeper appreciation of the shared views on the common challenges facing the two partners in the area of financial issues.