Prime Minister Sanae Takaichi marked half a year in power on Tuesday. She has advocated responsible and proactive public finances since taking office. However, full implementation of her flagship policies remains incomplete. The ruling coalition also holds a minority position in the House of Councillors.
Takaichi issued an instruction while reviewing growth strategy materials on Monday. She told officials to shorten certain parts of the report. The Prime Minister’s Office has taken the lead on securing crude oil supplies. Escalating tensions in the Middle East make this particularly urgent.
The supplementary budget for the previous fiscal year totaled 18.3 trillion yen. Parliament approved this budget in December last year. The current fiscal year budget cleared on April 7. Therefore, the Japan leadership test now focuses on implementing her own policies.
A bill to establish a national intelligence council is nearing final deliberations. However, opposition parties oppose separate anti espionage legislation. They argue that this bill will intensify government surveillance of the public. Takaichi also faces resistance on reducing lower house seats.
The consumption tax cut on food items represents Takaichi’s long cherished goal. A national council is currently discussing this proposal. Reaching a consensus has proven very difficult.
The ruling coalition remains in the minority in the upper house. Nevertheless, the LDP secured a landslide victory in February’s lower house election. The party now holds more than two thirds of total seats. Therefore, the government can pass bills even if the upper house rejects them. However, using such authority risks fierce opposition criticism.
Diplomatic challenges also test the Japan leadership test. Takaichi held two Japan US summits with President Donald Trump. Both meetings proceeded without major issues. However, relations with China have cooled following her remarks on a Taiwan contingency. Takaichi is now conducting telephone talks with Middle Eastern leaders. She aims to enhance Japan’s presence amid regional tensions. She also plans to promote a revised free and open Indo Pacific vision. A source close to her said she wants to stand on her own in foreign policy.
