Japan’s Prime Minister Shigeru Ishiba has apologised to his Liberal Democratic Party (LDP) but defied tradition by refusing to resign following the party’s loss for the first time in 70 years of control of both houses of parliament. For the time being Ishiba is being allowed to continue in office to preside over crucial talks with Donald Trump over 25 per cent tariffs threatened from August 1st.
Few doubt the LDP, which remains the largest party in the Upper House, will then face a sharp leadership battle with the likely prospect of a winner emerging from the party’s right to try to claw back the voters who defected to small hardline parties on Sunday.
The weekend’s Upper House election saw two-thirds of the 124 seats up for grabs going to opposition parties. The LDP, in power for all but a handful of years since 1955, lost the majority it held with coalition partner Komeito. It had already lost control of the more powerful Lower House in October.
Populist parties of the right made major gains, most notably, Sanseito, a new party pushing Maga-like anti-immigrant and tax cutting politics. It warns of a “silent invasion” of foreigners and promises to put “Japanese First”. It ended up with 14 of the 248 seats. Striking gains were also made by the Democratic Party for the People, up from nine seats to 22.
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Both parties won over younger voters with appeals to strengthen the military – some Sanseito candidates calling for Japan to build nuclear weapons – and cut a consumption tax that has paid for pensions to support Japan’s growing retired population. Inflation, particularly the soaring price of rice, was a central grievance.
The vote has left Ishiba’s administration vulnerable to no-confidence motions although the upper house has less power in this regard. But the LDP’s insistence on fiscal restraint, and a very jittery government bond market worried about Japan’s ability to refinance its huge debt, make any concessions to opposition parties to pass policy all the more difficult.
