Japan businesses call for stable politics after LDP's election defeat
"We face a slew of structural issues that need to be tackled from a medium- to long-term perspective," Yoshinobu Tsutsui, head of Japan's biggest business lobby Keidanren, said, citing measures to address elevated prices, tax reforms to fund soaring social security costs and promotion of a free and open international economic order.
"We strongly hope for a stable political environment," centering on the ruling coalition of the Liberal Democratic Party and its junior coalition partner Komeito, added Tsutsui of the Japan Business Federation.
The upper house election defeat for the ruling parties followed their setback in last October's election for the more powerful House of Representatives, raising the specter of policy gridlock if they fail to secure cooperation from opposition forces.
Takeshi Niinami, chairman of the Japan Association of Corporate Executives, called the ruling coalition's setback "a sign of growing public anxiety over the government's handling of state affairs."
During the election campaign period, the LDP sought to woo voters with pledges to distribute cash handouts to ease the pain of the cost-of-living struggles, while opposition parties called for tax cuts.
Niinami said the oppositions parties that made significant gains in the election should "present more concrete and feasible policies and responsibly fulfil the expectations of the public."
Meanwhile, Ken Kobayashi, chairman of the Japan Chamber of Commerce and Industry, warned that the political situation will become "fluid" following the upper house election.
But he noted, "We cannot expect sustainable economic growth without political stability."
Regardless of any change in ruling coalition structure, it should be one that gains confidence from inside and outside the country, he said.
Masanori Katayama, chairman of the Japan Automobile Manufacturers Association, expressed that the ruling and opposition parties join hands to "move various policies forward quickly toward solving difficult tasks in and outside the country."
The upper house election, which is held every three years, came at a critical time for Japan as it proceeds with negotiations with the United States on tariffs, with the deadline for President Donald Trump's so-called reciprocal levies looming on Aug. 1.
Among the tariff measures already implemented by Trump, a 25 percent levy on U.S.-bound cars is seen as a heavy blow to Japan's economy, in which the auto sector is a major driver of growth.
© KYODO
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