Post #5092

The Balance of Power in Japan Has Rapidly Shifted in Takaichi’s Favor 🇯🇵 Japan’s conservative governing coalition has dramatically strengthened its grip on power after a landslide victory in Sunday’s elections in what will be seen as an early public endorsement of the new prime minister, Sanae Takaichi. Her Liberal Democratic party (LDP) was projected to win as many as 328 of the 465 seats in parliament’s lower house, well above the 233 it needed to regain the majority it lost in 2024. With her coalition partner, the Japan Innovation party, she now has a supermajority of two-thirds of seats, easing her legislative agenda as she can override the upper chamber, which she does not control. A smiling Takaichi placed a red ribbon above each winner’s name on a signboard at the LDP’s headquarters as accompanying party executives applauded. The 64-year-old, who called a snap election soon after becoming Japan’s first female prime minister last autumn, had vowed to resign if her coalition failed to secure a simple majority in the vote, which was held on a freezing day when many parts of the country were again hit by heavy snow. She will not, however, have long to savour her party’s victory. There are concerns over her management of Japan’s public finances and her ability to defuse a bitter row with China over the future of Taiwan. Takaichi sought to appeal to voters with a 21tn yen ($96bn) stimulus package aimed at easing the cost of living crisis, later promising to suspend the 8% consumption (sales) tax on food for two years – a 5tn-yen hit to annual revenue. Her spending plans have rattled financial markets and caused currency volatility, prompting some commentators to question her approach given that Japan’s debt is more than twice the size of its gross domestic product – the heaviest debt burden of any advanced economy. Speaking as exit polls showed her party cruising to victory, Takaichi, an admirer of Margaret Thatcher, said: “We have consistently stressed the importance of responsible and proactive fiscal policy. We will prioritise the sustainability of fiscal policy”. “We will ensure necessary investments. Public and private sectors must invest. We will build a strong and resilient economy.” Takaichi’s big victory means she will have more political room to follow through on key commitments such as consumption-tax cuts, said Seiji Inada, the managing director at the consultancy FGS Global. “Markets could react in the following days, and the yen could come under renewed pressure.” Blizzard conditions in some regions made visiting a polling station in Sunday’s election, the first held in mid-winter for 35 years, a test of endurance for many voters. Takaichi’s personal popularity – particularly among younger voters – has transformed the LDP’s fortunes since winning the race to succeed Shigeru Ishiba as the party’s president in October. Under Ishiba, the LDP and its then coalition partner, Komeito, lost their majorities in both houses of parliament amid public anger over a slush fund scandal and the rising cost of food and other basics. The LDP, which has governed Japan for most of the past 70 years, was helped, as in previous elections, by a fractured and uninspiring opposition. #balance#power#japan#takaichi#china#financial#markets 📱American Оbserver - Stay up to date on all important events 🇺🇸