Japan warns over debt default
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The new Japanese Prime Minister, Naoto Kan, warned that the country could default on its borrowing unless it cuts its massive public debt, which is already twice the size of the nation's GDP. Mr Kan, who took over last week, has made tackling the debt a top priority.
"We cannot sustain public finance that overly relies on issuing bonds," he told parliament. "As we can see in the eurozone confusion that started from Greece, there is a risk of default if the growing public debt is neglected and if trust is lost in the bond market." Mr Kan spoke hours after his banking minister, Shizuka Kamei – an advocate of big spending – said he would quit, thereby making reform more likely. Mr San is widely expected to double Japan's sales tax, which currently stands at 5 per cent.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments