Japan’s voters decide the fate of Prime Minister Shigeru Ishiba’s government in an election that is likely to punish his coalition for a funding scandal and inflation, potentially ending his Liberal Democratic Party’s decade-long control.
According to opinion surveys, the LDP and its longtime partner Komeito will face a drubbing from voters, with the alliance potentially losing its parliamentary majority, as Japan grapples with growing living costs and increasingly strained relations with neighbor China.
Losing the majority in the lower house would drive Ishiba who has just been in office for a month, into power-sharing negotiations with minor parties, causing uncertainty in several policy areas, though no polls predict the LDP losing control.
According to a study conducted by the Asahi newspaper last week, the LDP could lose up to 50 of its 247 lower house seats, while Komeito could fall below 30, leaving the alliance with fewer than the 233 MPs required for a majority.
After purging certain LDP members, Ishiba claims the investigation is resolved but has not ruled out giving disgraced MPs government roles, thereby angering voters, according to experts.
The Democratic Party for the People (DPP) and the Japan Innovation Party are potential coalition partners, however, both have policies that contradict the LDP’s position.
The Innovation Party opposes future rate hikes, and the DPP leader believes the central bank was premature in raising rates, but the BOJ wants to gradually wean the world’s fourth-largest economy off decades of monetary assistance.
According to a study conducted by public broadcaster NHK, about 40% of respondents are most concerned about the economy and the expense of living.
It indicated that 28% desire a tax decrease, while 21% want to see their salaries continue to climb. Several parties have committed to raising wages, which may win votes but endangers smaller businesses that are struggling to keep up with rising prices.
Also Read: Japanese Regulators Audit Toyota HQ Over Certification Violations
