Tag: Economy of Japan

With the huge election victories of February 8 recorded in history and having been re-elected in her current position, Japanese Prime Minister Takaichi Sanae vowed major shifts on policy with the intention to make the nation stronger and more prosperous, according to a news report by Kyodo News.

To put things in perspective, posted below is an excerpt from the news report of Kyodo News. Some parts in boldface…

Prime Minister Sanae Takaichi on Friday pledged major policy shifts to make Japan “stronger and more prosperous,” citing expansionary finance for economic growth and efforts to boost intelligence and defense capabilities to address security challenges.

In her first policy speech since being reelected prime minister by parliament earlier this week, Takaichi also expressed her willingness to cooperate with the opposition despite her ruling party’s historic landslide victory in the Feb. 8 general election.

Takaichi said she will promote “responsible and proactive” fiscal policies and measures to encourage domestic investments in crisis management and promising fields.

“My Cabinet will end the long-running practice of excessive fiscal austerity and insufficient investment for the future,” said Takaichi, who became Japan’s first female prime minister in October and was reelected Wednesday. “We will intensely press, press, press, press and press the switch for growth.“

Takaichi vowed to speed up discussions on a two-year suspension of the 8 percent consumption tax on food and beverage items, aiming to draw an interim conclusion before the summer at a cross-party “national council” and submit related bills swiftly.

With prolonged inflation in mind, the government will not rely on deficit-covering bond issuance for the suspension, which would be a stopgap to help households until the envisioned introduction of an income tax deduction and cash handout system, she said.

“By fully mobilizing these measures, we will create a virtuous cycle of investment and wage hikes,” Takaichi said.

Japanese prime ministers usually deliver policy speeches in January after the start of ordinary Diet sessions, but this year the session ended in one day as Takaichi dissolved the House of Representatives on Jan. 23 for a snap election, leading to her address during a 150-day special session that started Wednesday.

In the election, Takaichi’s Liberal Democratic Party and its coalition partner, the Japan Innovation Party, won more than three quarters of the lower house’s 465 seats, well above the two-thirds threshold required to override the House of Councillors to push through bills.

In the upper house, the LDP-JIP bloc remains in a minority.

Takaichi said she hopes to work with opposition parties in realizing policies, quoting from a Chinese classic, “With trust, we act in righteousness, with righteousness, we fulfill our mandate.”

She called for cooperation to ensure the early enactment of a draft initial budget for fiscal 2026 starting April, which before the snap election had been expected to pass by the end of March, and of tax reform bills.

To prevent “unjustifiable foreign interference” in Japan, Takaichi said her government will establish a ministerial-level committee and upgrade the existing Cabinet Intelligence and Research Office to a national agency.

A conservative with hawkish security views, Takaichi also said she expects a deeper public debate on amending the war-renouncing Constitution, a long-held LDP goal, and revising the Imperial House Law for a “stable imperial succession,” amid a decline in the number of imperial family members.

As for diplomacy, Takaichi said she will visit the United States next month, if possible, to “further strengthen a relationship of trust” with President Donald Trump, describing the bilateral alliance as the linchpin of Japan’s foreign and security policies.

Regarding China, she reiterated Japan’s commitment to building “constructive and stable” ties and continuing communication, amid bilateral tensions sparked by her remarks in parliament in November that an attack on Taiwan could prompt an intervention by Japan’s defense forces.

Takaichi said Japan is facing “the most severe and complex” security environment of the postwar era, pointing to China’s intensifying military activities and attempts to “unilaterally change the status quo by force and coercion” in the East and South China seas.

Also touching on North Korea’s missile and nuclear development programs and Russia’s invasion of Ukraine, Takaichi promised to update three key security and defense policy documents this year and “strategically evolve” Japan’s free and open Indo-Pacific vision.

Let me end this piece by asking you readers: What is your reaction to this development? Do you think Prime Minister Takaichi and her cabinet will be able to achieve the goals of their agenda while convincing the opposition to cooperate? Do you think Japan will be able to secure itself better from the combined hostilities of Communist China and North Korea? Do you think strong economic growth can be achieved within the next few years?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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