The National Assembly of "Takaichi's Strong Leadership" Faces Issues with Consumption Tax Cuts, Active Fiscal Policy is Key to Market Response
The Takaichi administration has launched under a strong majority in the National Assembly, facing challenges regarding consumption tax cuts and fiscal policy directions.
The Takaichi administration, which achieved a decisive victory in the House of Representatives election, has just inaugurated its new system. Political scholar Harukata Takenaka points out that if the administration aims for a long-term regime, it requires a long-term perspective. As the government operates under Takaichi's dominant leadership, economic policies, particularly the proposed cuts in consumption tax, will be closely scrutinized. Takenaka emphasizes that the clear communication of fiscal strategies to uplift the economy and improve public welfare has resonated well with the populace, reminiscent of the compelling visions articulated by influential leaders in the past.
According to Takenaka, the substantial number of seats gained by the Liberal Democratic Party (LDP), reaching nearly 90% in single-member districts, showcases the impact of the electoral system, where the popularity of party leaders significantly influences outcomes. Takaichi's charisma played a crucial role in this success. Meanwhile, opposition parties struggled to consolidate their voting base, with the New Center Reform Union showcasing three major issues: the lack of time to establish their party name, internal disunity on security policies, and an absence of distinguishing policies apart from tax cuts. This fragmentation has weakened their appeal to voters effectively.
As Takaichi's administration solidifies its power, political dynamics within the government and parliament could shift significantly, placing further pressure on opposition parties to reconsider their strategies and unify their approaches. The future implications of Takaichi's governance will depend on her ability to maintain public support through effective economic policies and transparent governance, reflecting the need for robust debate in the upper house, where deliberation is critical. The electoral landscape suggests that the ruling party needs to navigate the public's diverse expectations while remaining responsive to market reactions regarding fiscal measures.