G-8 leaders call for stronger nuclear regulation, fiscal caution

Asahi.com: G-8 leaders call for stronger nuclear regulation, fiscal caution
Leaders of the Group of Eight industrialized nations called for a larger role for the International Atomic Energy Agency (IAEA) in ensuring nuclear safety in the aftermath of the crisis at Japan's Fukushima No. 1 nuclear power plant.

A final communique issued on May 27 at the conclusion of the G-8 summit in Deauville, France, pledged solidarity with Japan as it rebuilds following the Great East Japan Earthquake on March 11. The statement paid respect to those who died in the disaster and the courage of those who survived.

But the leaders also warned that a Japanese economy weakened by the disaster was a risk factor for the global economy and called on Japan to show fiscal responsibility in its efforts to fund its rebuilding process.

A bill to the government from reconstruction that could eventually reach 10 trillion yen ($122 billion) is seen as a major risk for the financial markets.

During the G-8 summit, Prime Minister Naoto Kan pledged that Japan would not withhold information about the Fukushima accident from the international community.

"It is the responsibility of Japan to share with the international community our experience following the Fukushima accident," he said. "We will provide the international community with all information related to the accident with the maximum possible transparency."

He suggested five measures to improve nuclear plant safety, including stronger IAEA guidelines and increasing the coverage of treaties related to nuclear safety.

The G-8 leaders' declaration included several of Kan's proposals, calling for more international conferences on nuclear safety and for emerging economies to sign up to international agreements.

Discussions on strengthening regulations are expected at a ministerial-level meeting of the IAEA to be held in Vienna from June 20.

The evaluation of the safety of existing nuclear plants as well as the standards of construction for new nuclear plants built in emerging economies are expected to be on the agenda.

But putting together international guidelines that would attract support beyond the richest nations may require compromise. Emerging economies are likely to argue that they cannot afford the newer, more expensive nuclear equipment that very strict regulation might require. Countries in areas where there are frequent earthquakes may also oppose tighter regulation in that area.

Meanwhile, Ben Rhodes, the U.S. deputy national adviser for strategic communications, told a May 26 news conference in Deauville held by White House officials that confusion in the supply chain in the wake of the quake and tsunami was an extremely important issue for the global economy.

The failure of parts deliveries from Japan forced auto factories in the United States to temporarily suspend production. U.S. Trade Representative Ron Kirk said those stoppages had demonstrated just how closely the two economies were interconnected.

At the May 26 G-8 session, Kan sought to allay concerns, explaining the efforts being made to get industrial production back on its feet.

He said, "We view the rebuilding process after the disasters as an important opportunity to resuscitate Japan, and we will make every effort in that area."

The G-8 declaration also pointed to the risks to the global economy from rising petroleum and food prices.

Monetary easing policies pursued by various governments after the financial crisis of 2008 helped to fuel increases and the effects of the large fiscal expenditures following that crisis are still being played out. The worsening of Japan's fiscal condition after the March 11 disaster is seen as a further risk factor.

A high-ranking official of an international organization said, "What experts are concerned about is the risk to the global economy from the advanced economies."