J Update

Sanae Takaichi Cabinet submitted an   interim budget bill   for eleven days at the beginning of FY2026 to the Diet on March 27 th . The interim budget will be necessary to start some projects included in FY2026 budget bill which has not passed the Upper House. Although Takaichi hoped that the annual budget bill would pass the House by the end of March, it was impossible for the Liberal Democratic Party (LDP), not having s majority in the Upper House, to implement it.   Annual budget bill for FY2026 was submitted to the Diet on February 20 th  and passed the Lower House on March 13 th with approval of the LDP and its coalition partner, Japan Innovation Party, which had supermajority in the House. However, the discussion in the Upper House did not go smoothly. Opposition parties which occupy majority in the Upper House demanded enough discussion over substances of the budget bill.   Not having experienced in Diet affairs, such as negotiations with opposition parti...

The National Council on Social Security started substantial discussion on consumption tax cut and introduction of refundable tax credit for low-income families. In the   hearing  from organizations of business managers and labor union, they are more supportive for refundable tax credit than temporary tax cut for foods. The council built up its chape by participation of major opposition parties. Consumption tax cut became a major issue in the campaign of Lower House election in February. Prime Minister Sanae Takaichi argued that her Liberal Democratic Party (LDP) would introduce refundable tax credit after two-year moratorium of consumption tax on foods. Although the LDP had been skeptical about refundable tax credit, Takaichi insisted on it as the people demanded measures to mitigate damages from current price inflation.   In the meeting on March 25 th , policy leaders of parties heard from representatives of business leaders and workers. Japan Business Federation (Keidan...

Committee on Budget in the Upper House of the Diet on March 25 th   had  an intensive discussion on Prime Minister Sanae Takaichi’s visit to the United States and meeting with President Donald Trump. Takaichi explained why she praised Trump as a peacemaker, but avoided legal evaluation on U.S. attack on Iran. She did not say that Japan would or would not send troops to the Strait of Hormuz.   “Donald is the only person who can bring peace and prosperity across the world,” Takaichi said in the meeting with Trump at the White House on March 19 th . In the discussion of the committee, Takaichi explained that she had thought that it would be Trump who could lead the war in Middle East to a peace or improve international economy. She later corrected her description of “war in Middle East” to “battle in Middle East.” She revealed that she decided to use that expression while she sleeplessly deliberated on the plane from Tokyo to Washington.   From the beginning of U.S. att...

One of the focused topics in this special session of the Diet is criminalizing desecration of the national flag. While Prime Minister Sanae Takaichi has been a proponent of this rightwing agenda, there are lawmakers in her Liberal Democratic Party (LDP) who regard the legislation as too eccentric to protect human rights of the people. It is possible that the legislation will be resulted in simply patriotic declaration for paying respect to the national flag of Japan. The Penal Code  of Japan provides that damaging foreign flag is a crime. “ A person who damages, removes or defiles the national flag or other national emblem of a foreign state for the purpose of insulting the foreign state is punished by imprisonment for not more than 2 years or a fine of not more than 200,000 yen ,”  Article 92 of the law says. However, no law in Japan penalizes destruction of Japan’s national flag.   In post-war Japan, the government could not restore public confidence, since it had led t...

Political confrontation between Prime Minister Sanae Takaichi and the opposition parties over FY2026 budget bill in the Upper House resulted in concessive retreat of Takaichi. Her government announced that it would submit a provisional budget bill to the Diet, being afraid of its failure in passing the FY2026 budget bill within this month. It would be the first setback for Takaichi, who maintains high approval rate, after sweeping victory of her Liberal Democratic Party (LDP) in Lower House election in February 8 th .   Minister of Finance, Satsuki Katayama,  announced  on March 24 th  that her ministry would form a provisional budget “preparing for an unpredictable event.” The leaders of LDP in the Upper House visited the Prime Minister’s Official Residence and noticed Chief Cabinet Secretary, Minoru Kihara, that they would be unable to pass the FY2026 budget bill by the end of March.   Takaichi has been insisting that the bill should pass the Diet by the end o...

The coalition partner of ruling Liberal Democratic Party (LDP), Japan Innovation Party (JIP), is suffering from loss of identity, since it could not make a major progress in the Lower House election in February. Although it hopes to implement its campaign platform, including reduction of seats in the Diet, the party cannot have any viable perspective to make them happen. It cannot conclude that the decision of forming coalition with Sanae Takaichi administration has been right.   Soon after Komeito left the leading coalition with LDP last October, quibbling with Takaichi’s victory in LDP presidential election, JIP agreed with the LDP to make a new partnership. Although it had been criticizing policies of the long ruling party, JIP exchanged policy package for political reform. Leaders of the party believed that implementation of those policies would be the cause of forming a coalition with the political enemy for years.   JIP expected that being a coalition partner would contr...

Prime Minister Sanae Takaichi came back to Tokyo on March 21 st  from her meeting with the President of the United States, Donald Trump, at Washington, D.C. While she achieved a reputation that she suffered no major harm in the summit meeting, Takaichi exposed her unique style of diplomacy, which had not been seen in her predecessors. Although Japan made no significant progress in bilateral relationship with the U.S. in the meeting, she was successful in impressing that “charm” could build something in diplomacy with a figure of uncertainty. A video footage of Takaichi’s arrival at White House on March 19 th  was repeatedly broadcast in Japan. After getting off a car, Takaichi approached Trump, standing at the entrance, and hugged him with her arms tightly grabbed his right shoulder and left waist. It was something different from what the Japanese people thought a hugging to be. It was rather a tackling, explicitly performing a close relationship between the leaders of Japan a...

Prime Minister, Sanae Takaichi, had a meeting with the President of the United States, Donald Trump, at the White House in Washington, D.C., on March 19 th . In the meeting, Takaichi   explained  what Japan can do or cannot in the Middle East, where the U.S. was waging war with Iran. Receiving Japan’s offers of economic cooperation, Trump did not directly ask Japan’s contribution to its operation. Both leaders reconfirmed necessity of stabilizing situation in Taiwan Straits, as they had done five months ago.   Trump has been asking countries contribution to operation in Persian Gulf for safe transport of vessels through the Strait of Hormuz. He did not directly ask Takaichi the contribution, but expected Japan to “step up,” referring to spending money for stationing of 45,000 U.S. troops in Japan and to Japan’s 90 percent dependence of its oil through the strait.   In her remarks to the press after the meeting, Takaichi  stressed  that she had explained wha...

The Centrist Reform Alliance (CRA), Komeito and the Constitutional Democratic Party of Japan (CDPJ)   announced   that they would participate in the National Council on Social Security, a discussion body chaired by Prime Minister Sanae Takaichi. The Democratic Party for the People (DPP) had already   decided  to join the council. With participation of major opposition parties, the council will intensively discuss reform of social security system and consumption tax cut.   Established by Lower House members of Komeito and CDPJ, CRA has been reluctant to join Takaichi-led national council, arguing that she would attribute a predictable failure in implementing consumption tax cut to opposition parties, if they join it. Those three parties, however, decided to join the council to reflect their idea to government’s policies. The DPP also announced its participation with the same reason.   While Takaichi promised two-year moratorium of consumption tax cut on food...

2026 spring labor-management negotiations for wage hike reached its peak on March 18 th , when managers of major corporations  offered answers  to wage hike demands of labor unions. Reflecting price inflation caused by volatile international relations, most managers fully accepted the demands, exceeding the target set by labor side which was 5 percent. However, it is still unsure whether wage hike will overcome current price hike. The negotiation  started  on January 27 th , when the chairman of Japan Business Federation (Keidanren), Yoshinobu Tsutsui, and the president of Japanese Trade Union Confederation (Rengo), Tomoko Yoshino, had a meeting. In the meeting, Tsutsui showed willingness for wage increase by encouraging each company to standardize raising basic salary in the negotiation, while Yoshino remarked that the federation would set its target at 5 percent of wage hike to stabilize workers’ ordinary life.   Labor unions of major corporations made proposa...

Ministry of Land, Infrastructure, Transport and Tourism   released   official land price at the time of January 1 st , 2026. Average price of land in Japan rose by 2.8 percent from the previous year, consecutive rise for these five years, marking the highest increase from 1991 when it jumped up by 11.3 percent at the peak of historical asset bubble era. Land price in urban region of Tokyo and Osaka led the average going high, while some local cities showed slowdown. The land prices were categorized by how it is used. The land price for housing rose by 2.1 percent in average, the same ratio as that in previous year. Commercial land price went up by 4.3 percent, while it had been 3.9 percent in 2025. Price of lands for industries hiked by 4.9 percent, slightly grew from 4.8 percent of last year.   The land price in Tokyo and Osaka showed outstanding increase. In Tokyo, price of land for housing grew by 4.5 percent, and for commerce by 9.3 percent. They were 2.5 percent and ...

As President of the United States, Donald Trump, demands some countries to help his Navy to protect ships going through the Strait of Hormuz, Prime Minister Sanae Takaichi is facing a big question: Can Japan do it? While she recognizes the U.S. as the incompatible ally for Japan, there are legal restriction for Japan to send troops to a battlefield. Coming summit meeting with Trump in the U.S. later this week may cause Takaichi’s headache.   Trump  described  in social media that countries affected by Iran’s closure of the Strait of Hormuz, including Japan, would be sending warships to keep the strait open. Trump also  told  the press that Washington had contacted seven countries to secure the key sea lane. “I think China should help too because China gets 90 percent of its oil from the straits,” said Trump to  Financial Times .   Takaichi has been refusing legal assessment of U.S. attack in Iran, otherwise accusing Iran of its plan to develop nuclear ...

Sanae Takaichi Cabinet   approved   on March 13 th  a bill to establish National Intelligence Council (NIC). It was submitted to the Diet on the same day. The council is expected to coordinate all the domestic and foreign information which are collected by each ministry. However, some ministries have their own intelligence section. The key to success is whether the council can siphon sensitive information beyond the border between ministries.   The NIC will be chaired by the prime minister. Its members are supposed to be related ministers, including of foreign affairs, of defense, of economy or of police. They will discuss information on national security or activities related to terrorism. The information may include some from foreign countries, which will be collected through undercover activities in overseas.   That kind of intelligence has been dealt by each ministry or organization. National Police Agency  has  Foreign Affairs and Intelligence Dep...

Sanae Takaichi Cabinet approved   6 th  Basic Plan for Gender Equality   on March 13 th . The plan for the first time includes government’s consideration of “single description” of maiden name on official documents for convenience of married person in business or other opportunities. As rightwing lawmakers have been opposing dual surname system, Takaichi made one step forward to a flexible use of maiden name.   With a momentum of International Women’s Year of 1975, Japan has promoted measures for gender equality by setting up a section for the issue in the government. It legislated a basic act for gender equality in 2000. To implement principles provided in the law, including respect for human rights of men and women or improvement of institution in the society, the Japanese government has issued policy packages for gender equality. It released the 6 th  plan in March 2026.   Along with measures for enhancing treatment for woman, who are in less preferable ...

The FY2026 budget bill passed the Lower House and was sent to the Upper House on March 13. To prove her decision for February snap election of the Lower House to be good, Prime Minister Sanae Takaichi pushed the leading parties to accelerate the discussion on the budget bill as fast as possible. Backed by supermajority of her Liberal Democratic Party (LDP), the bill passed the Lower House within an extremely short period. It is still unclear, however, whether the bill will pass the Upper House by the end of March, as the prime minister hopes. Takaichi Cabinet submitted FY2026 budget bill to the Lower House on February 20 this year. The House’s Committee on Budget started discussion for it on February 27. Questions by senior members were made on February 27, March 2 and 3. For this scheduling, there was a consensus between leading and opposition parties.   However, rest of the schedule was mostly made by unilateral decision of chairman of the committee, Tetsushi Sakamoto, who was fr...

Prime Minister Sanae Takaichi   announced   on March 11 th  that the government of Japan would release its oil reserve with concern that current effective blockade of Strait of Hormuz by Iran would continue certain long period. International Energy Agency (IEA) simultaneously agreed on coordinated release of their oil reserve to maintain oil price of the world. However, the effect of their policy seems to be limited so far.   “Our import of oil will significantly decline after late March,” said Takaichi to the press in prime minister’s official residence. She told that the release would start on March 16 th  and she hoped retail price of regular gasoline to stay at the level of 170 yen per litter as average of all over Japan.   Takaichi insisted that her decision was independent from the decision of international organizations. It would mark Japan’s first independent release of oil reserve. However, ministers of Group of Seven had previously agreed on takin...

The severe accident in Fukushima Daiichi Nuclear Power Station (FDNPS) in March 2011 marked a major change in energy policy of Japan. It encouraged introduction of renewable energy with concern about dependence on nuclear power. However, development of renewable energy is slowing down these years with emergence of negative aspects in and out of Japan. It is necessary for the government of Japan to accelerate diversification of energy.   After the accident in FDNPS, all the reactors of nuclear power plants in Japan once stopped. Fourteen reactors resumed their operation as of 2025, but the ratio of nuclear power generation against all the sources of electricity in Japan  reduced from 25.1 percent in 2010 to 8.5 percent in 2023. People in Japan got skeptical about nuclear power generation as a safe source for electricity they need.   Instead, renewable energy increased its share in power generation in post-Fukushima era. Its share swell from 9.4 percent in 2010 to 22.9 perc...

Fifteen years have passed since East Japan Great Earthquake hit northeastern Japan and great tsunami wave washed coastal area of the region facing the Pacific Ocean on March 11, 2011. Over 26 thousand people are still in their evacuation, losing their home with radioactive contamination by severe accident in Fukushima Daiichi Nuclear Power Plant caused by tsunami. Although Japan has learned lessons from the disaster, it is still not ready for next great earthquake.   The earthquake  took  19,782 lives, most of whom were taken away by tsunami. 2,550 people are still missing. 122,053 houses fell down. The evacuees, which counted 470 thousand in the peak time, were reduced to 26 thousand, but they still cannot get back their home, because the government of Japan designates 309 square kilometers of land in Fukushima prefecture as unsuitable for living.   While coastal area of Miyagi and Iwate has mostly recovered from devastation of tsunami, Fukushima prefecture is still...