The finances of Japan are in worse shape than those of Greece, according to Japanese Prime Minister Shigeru Ishiba. He expressed his concerns about Japan's fiscal situation amid discussions about tax cuts, which he deemed impossible due to the country's precarious finances. 'Our fiscal situation is undoubtedly extremely bad, worse than that of Greece,' he stated.
Within Japanese politics, there are calls to issue more government bonds to fund tax cuts. However, the Prime Minister fears that higher government spending is dangerous at a time when borrowing costs are already rising. 'It is important to recognize the dangers of a society and a world with interest rates.'
Ishiba also referred to the policy of Japan's central bank, which had maintained negative interest rates for years until last year. Since then, the central bank has raised interest rates multiple times. 'The government is not in a position to comment on interest rates, but the reality is that we are heading into a world with interest rates.'