Prime Minister Takaichi Pushes Economic Package, Seeking Opposition Party Support

By Kojiro Tanikawa and Wataru Hayashi / Yomiuri Shimbun Staff Writers

17:11 JST, November 5, 2025

Prime Minister Sanae Takaichi expressed her determination to swiftly compile an economic package centered on measures to combat rising prices, calling on opposition parties to cooperate during a question-and-answer session in the House of Representatives on Tuesday.

Her appeal for cooperation stems from the fact that, despite her Liberal Democratic Party having formed a coalition with the Japan Innovation Party, the ruling bloc still lacks a majority in both the House of Representatives and the House of Councillors.

Takaichi is poised to strive for careful Diet management and steadily pursue policy implementation.

The prime minister delivered her policy address on Oct. 24. However, due to a series of diplomatic engagements, including a visit by U.S. President Donald Trump to Japan, the representative interpellations did not begin until 11 days later. This was an unusual schedule.

Having made an excellent diplomatic debut, Takaichi will now focus on domestic affairs.

On one such matter, the abolition of the provisional gasoline tax surcharge, the Liberal Democratic Party initially proposed to the opposition parties that it be eliminated in February of next year.

However, since the opposition parties insisted on abolishing it before the end of the year, Takaichi and Finance Minister Satsuki Katayama ultimately decided to abolish it by the end of this year instead.

As a result, six parties from the ruling and opposition blocs, including the LDP and the Constitutional Democratic Party of Japan, reached an agreement at the end of October to abolish the tax on Dec. 31.

When asked by CDPJ head Yoshihiko Noda to clearly state that the surcharge would be abolished by the end of the year, Takaichi responded, “We will act firmly based on the results of discussions among the parties.”

Broad cooperation

Takaichi also reiterated her intention to introduce a system that combines tax relief and cash payouts, a so-called “tax credit with cash payments,” to alleviate the tax and social insurance premium burden on those in low-income and middle-income brackets.

When Noda said, “Shouldn’t we call upon other parties and hasten the design of the system?” Takaichi responded, “We will establish a national council to facilitate careful discussions with the opposition parties included.”

Even combining the parliamentary groups of the LDP and the JIP, they are three seats short of a majority in the lower house and four seats short in the upper house. The speaker of the House of Representatives and the president of the House of Councillors are not counted toward the totals.

Given that the ruling bloc needs to gain the cooperation of opposition parties and independent lawmakers to form a majority for each budget and bill, Takaichi aims to secure broad cross-party cooperation.

Consideration for Komeito

The LDP’s priority is to keep Komeito, which withdrew from the coalition, engaged so that the ruling party can advance its policy implementation.

The government decided on the Basic Policies on Economic and Fiscal Management and Reform in June and the preliminary budget requests for next fiscal year, with Komeito’s consent.

According to one senior official, this has led to high expectations within the LDP that further agreements with Komeito are likely.

Meanwhile, JIP co-leader Fumitake Fujita touted the coalition with the LDP as a “full-fledged reform-minded conservative coalition government.”

He emphasized that “the unity of conservative forces is indispensable” for resolving issues left unaddressed for 80 years since the end of the war, calling it “the dawn of Japanese policy.”

However, the LDP and the JIP face a dilemma in that the more they implement policies with a clear conservative focus, the more they are likely to alienate Komeito, putting Takaichi in a difficult position for steering the government.