Major Japanese business groups on Friday expressed concern over the possible political instability arising from the Komeito party’s withdrawal from its coalition with the ruling Liberal Democratic Party.
Yoshinobu Tsutsui, chairman of the Japan Business Federation, called the development “regrettable,” urging in a statement for the swift establishment of a stable political framework to enable timely policy implementation.
The federation is Japan’s most influential business lobby, and is known as Keidanren.
With Komeito leaving the coalition, the LDP will remain a minority government in the powerful House of Representatives unless it brings in at least two relatively large opposition parties, marking Japan’s biggest political shift in a quarter century.
“It would be problematic if n…
Major Japanese business groups on Friday expressed concern over the possible political instability arising from the Komeito party’s withdrawal from its coalition with the ruling Liberal Democratic Party.
Yoshinobu Tsutsui, chairman of the Japan Business Federation, called the development “regrettable,” urging in a statement for the swift establishment of a stable political framework to enable timely policy implementation.
The federation is Japan’s most influential business lobby, and is known as Keidanren.
With Komeito leaving the coalition, the LDP will remain a minority government in the powerful House of Representatives unless it brings in at least two relatively large opposition parties, marking Japan’s biggest political shift in a quarter century.
“It would be problematic if national politics came to a standstill. I hope the political vacuum will be kept as short as possible,” Ken Kobayashi, chairman of the Japan Chamber of Commerce and Industry, told reporters.
With Komeito citing differences over their response to a political funds scandal within the LDP as the main reason for ending the alliance, Kobayashi emphasized the need for compromise and cooperation among political parties, saying, “I want (lawmakers) to think about Japan as a whole rather than party interests.”
Sanae Takaichi, a conservative lawmaker, was only elected LDP president on Saturday and has yet to be designated prime minister by parliament.
Komeito’s departure not only puts her selection in doubt, but has also made the outlook for anti-inflation measures, and other policies that directly affect people’s daily lives, even more uncertain.
In an NHK television program on Thursday, Takaichi pledged that if she becomes prime minister she will immediately instruct the drafting of economic measures to tackle the cost-of-living crisis and compile plans for a supplementary budget for fiscal 2025 to fund the measures.
But even if Takaichi becomes prime minister, she would need opposition support to manage parliamentary affairs, leaving the timing of the passage of budgets and bills uncertain.