1 Month On, Takaichi’s Leadership Style Proving Double-Edged Sword

Tokyo, Nov. 21 (Jiji Press)–With Friday marking one month since Prime Minister Sanae Takaichi took office, the new Japanese leader’s plain speaking is proving to be both an asset and a liability. A government source said that Takaichi’s straight talk has been favorably received by the public. The approval rating for her cabinet has been high in media opinion polls, standing at nearly 70 pct. Some in the ruling bloc of Takaichi’s Liberal Democratic Party and its new coalition partner, Nippon Ishin no Kai (Japan Innovation Party), are apparently hoping for an early dissolution of the House of Representatives, the all-important lower chamber of the Diet, Japan’s parliament, for a snap general election. Meanwhile, her parliamentary remark earlier this month on a possible Taiwan contingency has worsened Japan-China relations, and many in financial markets are skeptical of the prime minister’s signature “responsible and proactive” fiscal policy. Takaichi now faces the challenge of producing concrete results. No Preparation for Taiwan Remark “We have steadily advanced our policies both in domestic and foreign affairs,” Chief Cabinet Secretary Minoru Kihara said at a press conference Thursday, highlighting the achievements of the Takaichi administration during its first month. “While bracing ourselves, we will realize our policies one by one,” the top government spokesman said. Takaichi handled diplomatic events well soon after her inauguration Oct. 21, welcoming U.S. President Donald Trump to Japan and holding meetings with Chinese President Xi Jinping and South Korean President Lee Jae-myung during her trip to South Korea for an Asia-Pacific Economic Cooperation forum summit. She actively engaged with foreign leaders, dispelling concerns about her shy personality, for a strong start to her diplomatic career, with a Foreign Ministry official giving “a perfect score” to her actions. During deliberations at the Lower House Budget Committee on Nov. 7, Takaichi said that China’s use of force against Taiwan could create a critical situation for Japan’s existence, allowing the country to exercise its right to collective self-defense. This drew the ire of Beijing, which took a series of retaliatory measures. A Japanese government official admitted that this remark was not something that had been prepared ahead of time. Triple Market Whammy In her first parliamentary policy address Oct. 24, Takaichi vowed to adopt measures to tackle soaring prices as her immediate priority, rejecting her predecessor Shigeru Ishiba’s plan to give cash handouts to all citizens, a measure he pledged for the July 20 election for the House of Councillors, the upper chamber. She instead is seeking to deal with inflation by abolishing the provisional surcharges on the gasoline tax and the gas oil transaction tax, and increasing financial aid to lower household electricity and gas bills this winter. In a bid to win opposition cooperation, Takaichi also said the government will increase child allowances by 20,000 yen per child. This would lead to the size of the government’s comprehensive economic package, planned to be adopted by the cabinet Friday, swelling to around 21.3 trillion yen. Securing alternative funding to make up for revenue falls from the abolition of the gasoline and gas oil tax surcharges was postponed to the end of the year. Although people close to the prime minister have emphasized that she made considerations for fiscal discipline, financial markets were hit by the triple whammy, or the weakening of the yen, Japanese stocks and Japanese government bonds, amid fears that increased government spending will accelerate fiscal deterioration. Speculation persists that Japan may face a situation similar to the 2022 financial turmoil called the “Truss shock” in Britain, which was triggered by concerns over fiscal soundness under the country’s then Prime Minister Liz Truss. Whether Takaichi’s policies will gain the market’s confidence will be a key test for the administration. Possible Early Lower House Dissolution Takaichi’s working style differs significantly from that of former prime ministers. Her study session held at the prime minister’s official residence from around 3 a.m. on Nov. 7 to prepare for deliberations at the Lower House Budget Committee that day has stirred controversy. She usually returns home, to the apartment for Lower House members in Tokyo’s Akasaka district, before 8 p.m. if she has no official duties. Unlike her predecessors, Takaichi has not held evening meetings to gather information and build relationships since taking office. Given the high public approval for the Takaichi cabinet, a lawmaker close to her said, “We need to bear in mind the possibility that the Lower House will be dissolved at the end of this year although the prime minister is not thinking about a breakup at the moment.” Meanwhile, an LDP lawmaker who has served as a cabinet minister expressed caution over a possible snap election, suggesting that public support for the party has not recovered from the slump caused mainly by its high-profile “slush funds” scandal. “Currently behind the (Takaichi cabinet’s) high popularity are expectations that she can do something,” a government source said. “The hard work begins now.” END [Copyright The Jiji Press, Ltd.]