Takaichi Re-Elected as Japan's Prime Minister, to Announce Policy Agenda Tonight

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Financial News Tokyo correspondent Seo Hye-jin reported that Sanae Takaichi, Japan’s first female prime minister and president of the ruling Liberal Democratic Party (LDP), won a landslide victory in the prime ministerial designation vote held in a plenary session of the House of Representatives of Japan during an extraordinary Diet session convened on the 18th, and was thus re-elected as prime minister, according to Japan Broadcasting Corporation (NHK) and other Japanese media. 
Takaichi, who took office as the 104th prime minister in late October last year, dissolved the House of Representatives early on the 23rd of last month in a bid to strengthen her political base. In the general election held on the 8th, the Liberal Democratic Party won more than two-thirds of the seats, and as a result she was elected as the 105th prime minister as widely expected.
A separate prime ministerial designation vote is also held in the House of Councillors of Japan, but when the results of the House of Councillors and the House of Representatives differ, the vote in the House of Representatives takes precedence. For this reason, Takaichi’s re-election as prime minister was assured.
\rAfter attending the imperial investiture ceremony for the prime minister and the attestation ceremony for cabinet ministers at the Imperial Palace in Tokyo, Takaichi will launch her second cabinet later in the day. However, she has decided to keep all current ministers in their posts without any reshuffle.
\rAs in the first cabinet, the Japan Restoration Party, the LDP’s coalition partner, will remain in a position of "cooperation from outside the cabinet" without holding ministerial posts. The government is considering shifting to full participation in the cabinet at the time of the reshuffle that is customarily carried out in the autumn.
Together with the Japan Restoration Party, Prime Minister Takaichi is expected to focus on strengthening national security and pursuing responsible, proactive fiscal policy.
\rShe plans to hold a press conference at the Prime Minister’s Official Residence of Japan on Monday night to outline the basic direction of her administration. She is expected to call on opposition parties to cooperate on cutting the consumption tax and introducing a refundable tax credit. 
\rAccording to a draft of her policy speech confirmed the previous day, Takaichi plans to state in her policy address on the 20th, "To drive economic growth, we will boldly promote measures to encourage investment through multi-year budgets and long-term funds so that companies can more easily engage in research and development and capital investment." 
She will also announce a plan to present, in quantitative terms, the impact of government support in stimulating private investment in the "Japan Growth Strategy" to be released this summer. 
On concerns about fiscal deterioration, she is expected to say that the government will curb the growth rate of outstanding debt within the range of the economic growth rate, thereby lowering the ratio of government debt to gross domestic product (GDP). She will also stress the importance of fiscal discipline in light of market concerns over worsening public finances.
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sjmary@fnnews.com Seo Hye-jin Reporter