Diet Session Ends with Gains and Losses

The Diet closed the extraordinary session on December 17th. While Prime Minister Sanae Takaichi was successful in passing a supplementary budget bill, she failed in implementing the agreement between the Liberal Democratic Party (LDP) and Japan Innovation Party (JIP) to reduce the seat of House of Representatives. As JIP does not show any intention to leave the coalition with the LDP, Takaichi seems to be satisfied with the result of the session. 

The 2025 extraordinary session started October 21st, 17days after Takaichi was elected the LDP president, and she was elected the prime minister on the first day of the session. The LDP and JIP agreed on forming a coalition on October 20 and she achieved approval from those parties, despite departure of Komeito from the coalition with the LDP, which lasted 26 years. Although the LDP-JIP coalition is in short of a simple majority in the Upper House, it passed the line of majority in the Lower House by including three independent lawmakers in their parliamentary group in the House.

 

Takaichi stressed her achievement in her first Diet session as the prime minister in her press conference on the final day of the session. “I could keep a promise to the people by delivering a supplemental budget which included measures for tackling price inflation that the people have been facing,” said Takaichi in the press conference. She insisted on her achievement of passing a bill for gasoline tax cut which were based on a multi-partisan agreement by six leading and opposition parties.

 

Those are major outcomes of the session. There are some policies that Takaichi could not achieve. A gridlock of discussion over reduction of seats in the Lower House was the biggest failure for Takaichi. Although LDP and JIP submitted a bill for the agenda to the Diet, it was not even discussed during the session. As the House has a rule that the change of election system needs broad consensus beyond the party lines, the seat-reduction bill was not proceed to a discussion at a committee level. The bill was postponed to the ordinary session of next year.

 

The opposition parties were putting priority on the bill for restricting political donations from companies and organizations. The Democratic Party for the People and Komeito have submitted a bill, for which the Constitutional Democratic Party support, to restrict donations to less local branches, the LDP strongly opposed it, because it would undermine the party’s system of receiving political funds. The bill did not pass the Diet in this session.

 

Takaichi made a careless speech during the session that “Taiwan contingency” might make a survival threatening situation in which Japan would use its force. Her comment caused furious response of China, exacerbating bilateral relations with Japan economically and diplomatically. Nevertheless, the opposition parties unintentionally helped her by declaring not to submit a non-confidence resolution against Takaichi Cabinet.

 

It is fair to say that the winner of this session was the Takaichi. The LDP was highly reluctant to the bills for seat-reduction and restriction of donation. Those bills were not enacted in the session. Loser was JIP which insisted on the seat-reduction as the “absolute condition” for forming a coalition with the LDP. However, no one in JIP has spoken of a possibility of leaving the coalition. It indicates JIP’s insistence on participating in policy implementation as a leading party. JIP’s firm position to stay in the coalition helps survival of Takaichi administration.

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