TOKYO—Japan’s incoming new prime minister Sanae Takaichi has approached an opposition party with a view to expanding the governing coalition to give it a working majority in parliament, reports said Tuesday.
The Liberal Democratic Party (LDP) and its longstanding junior partner Komeito have been in a minority in the lower and upper chambers since recent elections, making it hard to pass legislation.
The conservative Takaichi, 64, became president of the LDP on Saturday and is expected to become Japan’s first woman prime minister next week, replacing Shigeru Ishiba.
Takaichi the next day met Yuichiro Tamaki, who heads the Democratic Party for the People (DPP), with a view to expanding the coalition, the Yomiuri Shimbun and Mainichi Shimbun dailies reported.
Takaichi and Tamaki have in the past both put forward similar policies such as aggressive fiscal spending and tax cuts to boost the economy, as well as tougher rules around foreign workers. AFP
Takaichi has also said she wanted to expand the existing coalition possibly before she officially becomes premier.
Her appointment buoyed stocks on Monday but bond yields rose on concerns that any major spending could further worsen Japan’s public finances and fuel inflation.
An auction of 30-year Japanese government bonds that was closely watched for signs of investor jitters in the end drew solid demand.
Her appointment of Shunichi Suzuki, a former finance minister, as LDP secretary general was seen as signal to investors that the new government will not upset markets.
The LDP-Komeito coalition has governed Japan nearly continuously since they teamed up in 1999. AFP
