Japan warns France’s new leader

has raised concerns among eurozone creditors, including Japan.
In Tokyo Finance Minister Jun Azumi told a regular news conference: “Our stance is unchanged.”
“We want (France) to do what has been decided so far, and I’d like to tell them about that if there is the opportunity,” he added, according to Dow Jones Newswires.
“I don’t know whether Mr Hollande will immediately act on what he has said in heated debates during the election cam-paign.
“But realistically, I think it is impossible (for European nations) to give up on fiscal-rebuilding efforts,” the finance minister said, adding that he was “convinced (Hollande) will respect this movement”.
Hollande ousted conservative Nicolas Sarkozy from the Elysee Palace on a platform promising growth rather than further cuts, which has worried many European leaders who fear it will lead to another region-wide crisis.
Azumi said on Monday that France’s new leader “fully understands” the need to rebuild Europe’s finances, despite his calls to review the European Union’s fiscal pact to include measures to spur growth.
But Japan and China — which hold huge amounts of European debt — raised concerns about the region’s future policies.
“I want him to act based on understanding the schemes and thinking that we, the IMF, and the G7 have cultivated up to now,” Azumi said.
Azumi also warned on Monday that the results in France and debt-strapped Greece could have a “destabilising” effect on mar-          kets.
Japanese Prime Minister Yoshihiko Noda congratulated Hollande after his win and said France was a “strategic partner” of Japan, according to a foreign ministry official, adding that they agreed to work together on Europe’s debt crisis and North Korea’s nuclear programme.
In communist China on Monday the state-owned Global Times, which is known for its nationalistic tone, said the anti-incumbent results in France and Greece bore out the dangers of democracy running to “extremes”.
Last month, Japan pledged about US$60 billion to the International Monetary Fund, calling the contribution a critical part of the organisation’s bid to boost a global firewall against Europe’s debt crisis.
Meanwhile, the euro skidded to US$1,2954 in early trade Monday after the results, its lowest level since late January, while also slumping to 103,22 yen at one stage, its worst since mid-February. However, it rebounded late Monday and on Tuesday it was at $1.3017 and 104.00 yen.
Japanese Prime Minister Yoshihiko Noda congratulated Hollande after his win and said France was a “strategic partner” of Japan, according to a foreign ministry official, adding that they agreed to work together on Europe’s debt crisis and North Korea’s nuclear programme.
Last month, Japan pledged about $60.0 billion to the International Monetary Fund, calling the contribution a critical part of the organisation’s bid to boost a global firewall against Europe’s debt crisis.
Azumi said at the time that Tokyo’s help was “crucial not only to the eurozone but also to Asia and Japan if we are to ensure that the crisis is completely over.”
The move came as the country struggles with a strong yen and sinking demand in key European markets, which has dented the export-oriented economy.
Tokyo has also been a regular buyer of debt issued by the European Financial Stability Facility bailout fund since last year.
A foreign ministry official on Tuesday declined to give updated details about Japan’s eurozone bond holdings.
However, Tokyo bought 13.0 percent of the eurozone rescue fund’s bond sale in December, worth about 260 million euros ($338.0 million), while purchasing 10.0 percent, or 300 million euros worth, in November.
That was lower than the average 20.0 percent purchased in three other bond sales from the start of the year.-AFP