New LDP Leader Ishiba’s Economic Vision Points To Continuity, Tax Reform; Prime Minister-To-Be Hopes to ‘Solidify’ Kishida’s Efforts, Battle Rising Prices

The Yomiuri Shimbun

13:33 JST, September 28, 2024

The newly elected president of the ruling Liberal Democratic Party, Shigeru Ishiba, has expressed his intention to basically carry on the economic policies initiated by Prime Minister Fumio Kishida. The economic measures Ishiba highlighted as part of his campaign platform include addressing high prices and labor market reforms, which have also been central focuses of the Kishida administration. By emphasizing continuity with Kishida’s approach, Ishiba aims to present a sense of stability. However, it remains to be seen how he will inject his own unique direction going forward.

In a press conference held on Friday following the LDP presidential election, Ishiba emphasized, “We must solidify the hard work that President Kishida has done to overcome deflation.” He also added, “I wish to further accelerate the ‘new form of capitalism’ [advocated by the Prime Minister].”

When addressing measures against rising prices, Ishiba noted that there will be a “time lag” before wage increases exceed the rise in prices. He stated, “I want to carefully assess what policies will be effective for food and energy,” but he refrained from clarifying whether he would extend the current subsidies for electricity and gas costs.

Among Ishiba’s pledges, his labor market reforms are nearly identical to those of the Kishida administration. One area where a distinctive approach could be seen is his proposal for a more dynamic corporate tax system. He remarked, “There is still room to raise corporate taxes,” but with a general election on the horizon, the hurdles for tax increases are high, and the challenge for Ishiba will be in demonstrating his ability to push such measures through.