LDP and JIP Reach a Deal for Coalition

The Liberal Democratic Party (LDP) and Japan Innovation Party (JIP) agreed on forming a coalition to lead a new government on October 20th. Explaining their partnership to push Japan forward, the leaders of LDP and JIP shared conservative agenda for their coalition to implement, including constitutional amendment and security policies. The JIP, after all, offered a helping hand to the LDP, which was falling after departure of Komeito.

The LDP President, Sanae Takaichi, and JIP leader, Hirofumi Yoshimura, and co-leader, Fumitake Fujita, signed the agreement for coalition. In their press opportunity after the signature, Takaichi stressed that it was a political cooperation between parties with common basic agenda. Yoshimura insisted that they were responsible for building a country which future generations would be proud of.

 

The agreement noted that the two parties would establish multiple discussion bodies on prohibition of political donation from companies and organizations, sub-capital initiative alternative to Tokyo, social security reform and constitutional amendment. On political donation, about which Komeito left the leading coalition with disappointment to LDP’s reluctance to the reform, JIP gave time for the LDP until the end of Takaichi’s term as LDP president in September 2027.

 

The LDP accepted JIP’s idea of introducing sub-capital system by setting up a discussion committee during the extraordinary session of the Diet this fall and pass related bills in the ordinary session next year. The sub-capital initiative is fundamentally important for JIP, which has failed twice in achieving approval from citizens in Osaka for Osaka Capital Initiative.

 

Those two parties are known as active for constitutional amendment. They agreed on establishing a committee for the draft of amendment and submit it to the Diet in FY2026. They did not determine a specific timing of concluding social security reform. The LDP is going to consider two-year moratorium of consumption tax on foods, which were campaign promise of JIP in the Upper House election in July.

 

One reason that the JIP decided to join the coalition was LDP’s approval of reduction of Diet seats. The agreement noted that they would aim at passing the bill for reducing 10 percent of members of the House of Representatives in the extraordinary session this fall. However, some opposition parties argue that this issue needs broad consensus among the parties.

 

As the consequence of policy agreement, Takaichi is likely to be elected the prime minister on October 21st, as the first female premier in Japan. The opposition parties have failed in electing alternative person for the prime minister. The Constitutional Democratic Party of Japan decided to vote for its leader, Yoshihiko Noda, knowing that he would not win the election.

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