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Sanae Takaichi to Become Japan’s First Woman Prime Minister as LDP Strikes Surprise Coalition with JIP
Historic shift in Japan ! Sanae Takaichi is on the brink of becoming Japan’s first-ever female Prime Minister after the ruling LDP formed a sudden coalition with the Japan Innovation Party (JIP). The surprise move shook up Tokyo's political scene and sent the Nikkei index to a record high, with investors hopeful for bold reforms and economic stimulus.
Political Earthquake in Tokyo: What Just Happened?
In a dramatic last-minute twist, Japan's ruling Liberal Democratic Party (LDP) struck a coalition deal with the Japan Innovation Party (JIP) late Monday evening. This clears the way for Sanae Takaichi, 64, a prominent conservative and longtime LDP figure, to be elected as the country’s first female Prime Minister.
“After a night of deep thought, I called Takaichi-san this morning to confirm our coalition. We will formally sign the agreement at 6 PM,”
said JIP co-head Hirofumi Yoshimura.
The move comes just a day before Japan's powerful lower house is scheduled to vote for the next PM-its fifth in just five years.
Who Is Sanae Takaichi?
- Former Internal Affairs Minister
- Protégé of late ex-PM Shinzo Abe
- Known for her strong nationalist views
- Supports aggressive monetary easing and increased public spending
- A China hawk, but recently softened her tone to attract broader support
Takaichi’s bid to lead was temporarily derailed after LDP’s 26-year alliance with the Komeito party collapsed, citing:
- LDP’s failure to reform party funding rules after a slush fund scandal
- Concerns over her past visits to Yasukuni Shrine, seen as a nationalist symbol
- Her tough rhetoric on China relations
Markets React: Nikkei Soars to All-Time High
The news of the new coalition agreement between LDP and JIP sent the Nikkei 225 index soaring 3%, crossing 49,000 points for the first time in history.“Investors are optimistic that Takaichi will roll out pro-growth and stimulus policies similar to Abenomics,”
said Yutaka Miura, Mizuho Securities.
Why Did Investors Cheer?
- Expectation of fiscal stimulus
- Potential for lower food taxes (a JIP agenda)
- Push for corporate donation bans, boosting transparency
- Political stability after years of leadership changes
What Comes Next?
Even with the coalition, LDP and JIP remain two seats short of a clear majority in the lower house. However, Takaichi is still likely to win the vote due to runoff rules that only require her to beat her opponent-not achieve a majority.
If confirmed, Takaichi will immediately face a challenging agenda:
- Finalizing a pending trade deal with the Trump administration in the U.S.
- Cutting Russian energy imports, as requested by Washington
- Addressing Japan’s shrinking population and ageing society
- Rebuilding trust after years of scandals and falling LDP support
JIP’s Role in the New Government
While JIP is now part of the ruling coalition, it will reportedly not take any cabinet positions. Instead, the party has committed to pushing reforms, including:
- Zero consumption tax on food
- Banning political donations from corporations and organisations
- Reducing the number of lawmakers to cut government costs
These populist measures are gaining attention among younger voters and could shake up traditional Japanese politics.
Why This Matters for Asia and the World
Sanae Takaichi stepping into Japan’s top role isn’t just historic-it could mark a new era of leadership in Asia’s second-largest economy. Her economic views echo Shinzo Abe’s Abenomics, but her rise also signals a more assertive Japan on the global stage.
Global Implications:
- Japan’s approach to China and Taiwan may harden
- Stronger alignment with U.S. defense interests
- Major implications for global supply chains and trade
Expert Take:
“This isn’t just a gender milestone-it’s a strategic pivot for Japan’s economy, foreign policy, and political structure,” says Professor Naoko Arita, Tokyo University.
(Source-The Mint)
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