PANDAS AND PUBLIC DEBT
However, Takaichi has not had everything her own way, particularly with regard to worries about her stewardship of the public finances of Asia’s number-two economy.
She followed up a US$135 billion stimulus package aimed at easing the pain of inflation – a big cause of voter discontent – with a campaign promise to suspend a consumption tax on food.
Japan’s debt is more than twice the size of the entire economy, and in recent weeks yields on long-dated bonds have hit record highs, causing jitters worldwide.
“Various parties are proposing policies like abolishing the consumption tax. While that might be fine for now, I’m very worried about whether such measures are truly responsible for the generations that come after us,” voter Taku Sakamoto, 49, told AFP.
“My biggest concern is not just the present, but what will become of Japan going forward,” he said.
Takaichi’s election triumph may also cause consternation in Beijing.
Barely two weeks in office, Takaichi – seen before assuming the premiership as a China hawk – suggested that Japan could intervene militarily if Beijing sought to take self-ruled Taiwan by force.
China regards the democratic island as part of its territory and has not ruled out force to annex it.
With Takaichi having days earlier pulled out all the stops to welcome US President Donald Trump, Beijing was furious with her unscripted remarks.
It summoned Tokyo’s ambassador, warned its citizens against visiting Japan and conducted joint air drills with Russia. Japan’s last two pandas were even returned to China last month.
Trump has not publicly weighed in on the spat but endorsed Takaichi last week as a “strong, powerful, and wise leader, and one that truly loves her country”.
Margarita Estevez-Abe, associate professor of political science at Syracuse University, said the China episode raised Takaichi’s popularity even more.
“Now she doesn’t have to worry about any elections until 2028, when the next upper house elections will take place,” Estevez-Abe told AFP before the election.
“So the best scenario for Japan is that Takaichi kind of takes a deep breath and focuses on amending the relationship with China.”
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