Takaichi Retains Most LDP Leadership, Choosing 'Stability' Ahead of Tax Cuts

【Financial News Tokyo=Correspondent Hye-jin Seo】Sanae Takaichi, Prime Minister of Japan, retained most of the key leadership of the ruling Liberal Democratic Party of Japan (LDP) on the 16th. The appointments prioritized political stability and policy continuity as the government prepares to pursue major policies, including a consumption-tax cut bill, at next month’s extraordinary Diet session. Takaichi also plans to retain key cabinet ministers in a reshuffle the following day, maintaining the existing administration’s framework.
According to The Yomiuri Shimbun and NHK, the LDP held an extraordinary General Council meeting that morning and finalized its new leadership lineup. Deputy President Tarō Asō, 85, and Secretary-General Suzuki Shunichi, 73, retained their posts. Takayuki Kobayashi, 51, chairman of the Policy Research Council, and Yasutoshi Nishimura, 63, chairman of the Election Strategy Committee, also remained in place among the party’s four key leadership positions. Only the chair of the General Council was replaced, with Diet Affairs Committee Chairperson Hiroshi Kajiyama, 70, taking over from Haruko Arimura.
Prime Minister Takaichi said, "We have established an implementation structure that brings together the full strength of the government and the LDP to realize the important policy shifts included in our administration’s pledges."
After securing a landslide victory in the House of Representatives election in February and maintaining a 53% cabinet approval rating in an NHK poll this month, Takaichi placed greater emphasis on strengthening the current administration’s ability to implement its policies than on a sweeping overhaul.
The most notable appointment was that of the Diet Affairs Committee Chairperson, who handles negotiations with both ruling and opposition parties as well as Diet operations. Hideki Murai, 46, a six-term member of the House of Representatives of Japan and former deputy chief cabinet secretary with no cabinet experience, was appointed to the post. A politician in his 40s was chosen for a position usually held by a senior lawmaker with ministerial experience. Murai handled Diet coordination under the Kishida Cabinet and later served as deputy chair of the LDP’s Diet Affairs Committee, building practical experience.
The new leadership’s first task will be to pass legislation related to a consumption-tax cut at an extraordinary Diet session that could be convened as early as the 5th of next month. Takayuki Kobayashi, chairman of the Policy Research Council, said, "We will ensure that the consumption-tax cut bill passes in the next Diet session," adding, "We will pursue a budget that balances a strong economy with fiscal sustainability."
Because the ruling parties fall short of a majority in the House of Councillors, cooperation with opposition parties will also be necessary. Secretary-General Suzuki said, "Political stability is the most important thing for advancing policy shifts," and stated that the LDP would strengthen cooperation not only with its coalition partner, the Japan Restoration Party, but also with other opposition parties.
The LDP caucus in the House of Councillors replaced Secretary-General Junichi Ishii and appointed lawmaker Kazuhiko Aoki, 65, as chair of the Committee on Rules and Administration. The Asahi Shimbun analyzed the move as reflecting the prime minister’s wishes, citing a conflict between Takaichi and Ishii over handling Diet affairs. Prime Minister Takaichi explained, "I do not have the authority to appoint House of Councillors officers," saying the appointments had been decided by the chair of the House of Councillors’ caucus.
Prime Minister Takaichi is scheduled to carry out a cabinet reshuffle on the 17th. Key ministers, including Chief Cabinet Secretary Minoru Kihara, Finance Minister Satsuki Katayama, Foreign Minister Motegi Toshimitsu, and Defense Minister Shinjirō Koizumi, are expected to retain their posts. Ryosei Akazawa, Japan’s minister of economy, trade and industry, and Minister for Growth Strategy Minoru Kiuchi are also likely to remain in office. From the Japan Restoration Party, Secretary-General Hiroshi Nakatsuka is expected to join the cabinet for the first time.


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