European Commission officials have tirelessly pointed out for the past years the reason why the trade deficit is so large and why direct investment is very much a one-way movement. The trade and investment gaps have narrowed substantially, but they remain high in the eyes of businessmen and trade officials, in favour of Japan.
Diplomats sometimes talk about a different sort of balance of payments.
The sum of money transferred through government channels can often go to billions of dollars, but they receive less attention than the businessmen's balance of payments. There are increasing numbers of EU officials in influential positions, who recognize the implications of the diplomat's balance of payments. Japan is helping the EU's designated future members to overcome difficulties in their economic and social transition from Communism to a market economy, and assisting other countries, such as Russia and the Ukraine, whose stability is crucial to prevent a massive flow of refugees from flooding Europe. The EU has, on the other hand, been giving assistance to Asia's developing countries, whose stability and prosperity are a strong concern for Japan, and has recently agreed to commit itself to a multilateral effort to prevent nuclear proliferation on the Korean peninsula. The overall picture of mutual assistance can be grasped by comparing a few areas where Japan and the EU are engaged in activities which help the other to live in a stable environment.