The Tamesis
Japanese Prime Minister Sanae Takaichi said on Monday she would call a national election this week to seek support from voters for increased spending, tax cuts and a new security strategy.
Taka City plans to dissolve parliament on Friday ahead of an early vote on February 8 for all 465 seats in the lower house of parliament. The poll will be her first electoral test since becoming the country’s first female prime minister three months ago.
“I stake my political future as prime minister on this election,” Takaichi told a news conference on Monday. “I want the public to judge directly whether they will entrust me to run the country.”
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She pledged to end the 8% excise tax on food within two years, adding that her spending plan would create jobs, increase household spending and boost other tax revenue.
The government estimates that the prospect of such tax cuts will reduce its annual revenue by 5 trillion yen ($32 billion), and the yield on Japan’s 10-year government bonds rose to a 27-year high early on Monday.
Calling an early election would allow Takaichi to capitalize on strong public support to tighten control over the ruling Liberal Democratic Party and solidify its alliance’s fragile majority.
The election will test voters’ appetite for more spending at a time when the rising cost of living is a top public concern.
A poll released last week by public broadcaster NHK showed that prices were the biggest concern for 45% of respondents, followed by diplomacy and national security (16%).
Defense spending increases
The city government plans to formulate a new national security strategy this year after the city government decided to speed up military build-up and increase defense spending to 2% of gross domestic product, a sharp departure from Japan’s decades-long practice of capping such spending at around 1%.
The market did not set a new spending target beyond that level, but rising tensions with China over Taiwan and disputed islands in the East China Sea, coupled with U.S. pressure on allies to spend more, could push defense spending higher.
“China has conducted military exercises around Taiwan and is increasingly using economic coercion by taking control of critical supply chain materials,” she said. “The international security environment has become more severe.”
last week, China bans export of Japanese military items Has civilian and military uses and includes some critical minerals.
The Liberal Democratic Party and the Isin Party will hold elections on February 8, coinciding with Thailand’s planned national elections for a total of 233 seats. Takaichi said her goal was for the coalition to maintain its majority in the lower house.
Her main challenger will be the centrist Reform Alliance, a new party formed by the largest opposition Japan Cadets and Komeito, which ended a 26-year alliance with the Liberal Democratic Party after right-wing lawmaker Takaichi took over.
The parties hold a total of 172 seats.
Earlier in the day, a party official said the new political group may propose permanently scrapping the 8% food sales tax.
“Now is probably her best chance to capitalize on this extraordinary popularity,” said Jeffrey Hall, a lecturer in Japanese studies at Kanda University of International Studies.
But he added that victory might not be that simple as opposition parties united against her.
- Reuters Additional editing by Jim Pollard
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