BERLIN (REUTERS) - Japanese Prime Minister Shinzo Abe kicked off his one-week tour of Europe on Wednesday by telling a German business audience that he was confident his country would soon win its battle against years of deflation.

Mr Abe said in Berlin, shortly before talks with Chancellor Angela Merkel, that under his leadership, the Japanese economy had grown "and is in the process of freeing itself from long-lasting deflation".

Policymakers in Europe, including European Central Bank chief Mario Draghi, have played down the threat of Japanese-style deflation affecting the region.