Tokyo, February 9: According to exit polls, Japanese Prime Minister Sanae Takaiichi’s coalition is poised for a significant victory in Sunday’s elections, paving the way for tax cuts. The market has shown some apprehension, anticipating an increase in military spending to counter China.
Public broadcaster NHK reports that Takaiichi’s Liberal Democratic Party (LDP) and its coalition partner, the Japan Innovation Party (known as Ishin), could secure 366 of the 465 seats in the lower house. This would grant them a supermajority, facilitating their agenda. Estimates suggest that the LDP alone could win 328 seats, indicating a substantial victory.
The Japan Times states that if the LDP, which held 198 seats before the election, wins 310 or more seats, it will gain control of two-thirds of the lower house. This would assist the LDP-led coalition, which includes the Japan Innovation Party (JIP), in overcoming challenges due to a lack of majority in the upper house. If key bills and budgets are not passed in the upper house, they can be approved in the lower house with a two-thirds majority.
At 64, Takaiichi, Japan’s first female prime minister, chose this winter election to leverage her rising personal approval ratings after taking leadership of the ruling LDP late last year. This strategic move has turned into a winning gamble for her.
Voters have been drawn to her straightforward, hardworking image. However, her nationalist views and emphasis on security have strained relations with powerful neighbor China, while her promises of tax cuts have rattled the market.
