Under such circumstances, the so-called “Japan premium” – the extra risk premium charged to Japanese financial institutions reflecting market participants’ heightened concerns over their creditworthiness – increased significantly.
In addition, our inflation rate – at over twice the euro area average – is becoming an ever increasing threat to our competitiveness and, hence, employment situation. I would reiterate, as we have stated for some time now, that this puts the onus back on prudent fiscal policy and appropriate wage and other cost developments to ensure stability.