TOKYO — Japan on Monday pressed Greece to swiftly form a new cabinet after pro-bailout parties won a weekend election, and called on European leaders to “urgently” strengthen the region’s financial sector.
Markets breathed a sigh on relief Monday after the conservative New Democracy party won most votes in Sunday’s poll, narrowly beating the anti-bailout Syriza group, easing fears Athens will exit the eurozone.
But Chief Cabinet Secretary Osamu Fujimura, the government’s top spokesman, said Japan wanted Athens and Europe’s leaders to build on the result.
“We will be paying close attention to upcoming negotiations to form a coalition” government, he told reporters in Tokyo.
“We hope that a stable government will be launched early and make progress towards stabilizing markets… We hope that European countries will urgently take measures to strengthen its financial sector,” he added.
Traders have grown increasingly worried about Europe’s lenders after Spain recently accepted a loan worth up to 100 billion euros ($125 billion) to rescue its troubled banking sector.
Speaking after a meeting of G7 finance chiefs in Los Cabos, Mexico, Japanese Finance Minister Jun Azumi said: “Greek political risks have yet to be wiped out, but I believe (Greece) has overcome one, big peak.”
Europe is a major market for Japanese products and Tokyo is a significant buyer of eurozone bonds, with officials saying Japan’s fragile economic recovery was heavily tied to the continent.
Sunday’s result helped alleviate fears of a victory by anti-austerity parties who had threatened to tear up an international bailout package, which was seen as a prelude to Greece exiting the eurozone.
“Countries should cooperate to stabilize market swings and we hope G20 leaders will issue a strong political message at the Los Cabos summit,” the government spokesman said.
source: japantoday.com
