Takaichi to Retain Finance, Foreign and Defense Ministers, Maintaining Cabinet’s Core Structure

【Financial News Tokyo = Correspondent Hye-jin Seo】Japanese Prime Minister Sanae Takaichi plans to retain the key ministers overseeing finance, foreign affairs and national security in a cabinet reshuffle scheduled for this month. The move is intended to preserve the cabinet’s core structure and ensure the stable pursuit of major policies, including a cut in the consumption tax on food, ahead of the cabinet’s first anniversary.
According to Japan Broadcasting Corporation (NHK) on the 6th, Prime Minister Takaichi has begun coordinating plans to retain Finance Minister Satsuki Katayama, Foreign Minister Motegi Toshimitsu and Defense Minister Shinjirō Koizumi. Chief Cabinet Secretary Minoru Kihara is also expected to remain in his post.
Prime Minister Takaichi plans to carry out personnel changes in the Liberal Democratic Party of Japan (LDP) leadership and a cabinet reshuffle this month. Rather than pursuing a sweeping overhaul, she appears to be prioritizing policy continuity and stability in governing by retaining key ministers.
The decision to retain Finance Minister Katayama is seen as a move to ensure the smooth implementation of the Takaichi administration’s economic and fiscal policies, including a cut in the consumption tax on food and a new cash benefit program. The Japanese government plans to lower the consumption tax rate on food from the current 8% to 1% for two years starting in April next year, then restore it to 8% in April 2029.
The retention of Foreign Minister Motegi and Defense Minister Koizumi is interpreted as reflecting a desire for continuity in foreign and security policy. Japan faces a series of important diplomatic engagements ahead and plans to revise three key security-related documents, including the National Security Strategy, by the end of this year.
Stability within the party was also taken into consideration. Foreign Minister Motegi and Defense Minister Koizumi were among those who competed against Prime Minister Takaichi in last year’s LDP presidential election. Their continued inclusion in the cabinet is seen as an effort to embrace major factions within the party and maintain the administration’s political cohesion.
Within the LDP leadership, Vice President Tarō Asō and Secretary-General Suzuki Shunichi are also expected to remain in their posts. With Prime Minister Takaichi retaining most of the key figures in both the cabinet and the party leadership, the reshuffle is expected to focus less on personnel renewal and more on stable governance and the continued pursuit of major policies.
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