Finally Japan is to get its first female PM, after newly-elected LDP leader Sanae Takaichi inked a deal with Nippon Isshin no Kai (the Japan Innovation Party) to provide the votes needed to vote her in.
However, the 44 Isshin Diet votes carry a high price, with Takaichi forced to align her program with her coalition partners, a right-leaning, vaguely populist party whose support is based in the Osaka area. Isshin are believed to have extracted the following eye-watering concessions from Takaichi in return for their support:
- A ban on Corporate and Organizational Donations to political parties. Ishin has long campaigned against "money politics," viewing this as a vital reform to restore public trust in politics.
- Food Sales Tax Exemption. Isshin wants to remove the consumption tax (currently 10%) on food items for a temporary period, easing inflation pressures on households.
- Establishment of a regional "backup capital" (i.e. Osaka) to decentralize functions from Tokyo in case of disasters or emergencies.
- Lower social insurance premiums for working-age people, with greater entitlements.
- Reducing the number of seats in the Diet by around 10% to cut government costs and save taxpayer money.
None of these reforms will be easy for the LDP and, when push comes to shove, we can expect the fragile coalition to splinter and fall apart, with Takaichi losing power. Six months in office would be optimistic.
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