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
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Japan Today
5 minutes ago
- Japan Today
S Korean military plane entering defense zone 'regrettable': Japan
Japan's top government spokesman said Friday it is "regrettable" that the Self-Defense Forces were forced to scramble fighter jets after a South Korean military airplane entered the Japanese air defense identification zone without notice earlier this month. Chief Cabinet Secretary Yoshimasa Hayashi told a press conference that the government has asked South Korea to take measures to prevent similar incidents, while calling Seoul an "important partner" with which Tokyo will continue to "closely collaborate." On Thursday, South Korea's Yonhap News Agency reported that SDF fighters scrambled to deal with a South Korean C-130 transport aircraft after it accidentally entered Japan's air defense identification zone on July 13. The C-130 initially intended to overfly Japanese territory for a military exercise in Guam, but it failed to obtain Japanese authorities' permission in advance due to insufficient communication. The plane subsequently took a flight course to avoid Japan. Bad weather and the need for refueling forced the airplane to change the route again and make an emergency landing at the U.S. military's Kadena Air Base in the southern Japanese prefecture of Okinawa, triggering the SDF's response, Yonhap reported. An air defense identification zone is a wider area than sovereign airspace and is defined by each country for national security purposes. © KYODO
Yomiuri Shimbun
35 minutes ago
- Yomiuri Shimbun
Prime Minister Ishiba to Step down: Make Announcement Early to Allow Quick Formation of New Administration
Perhaps Prime Minister Shigeru Ishiba is thinking that he cannot toss out his administration given the schedule of important domestic and diplomatic events ahead. However, if Ishiba, having now become a lame duck, delays the announcement of his resignation, he will only prolong the political chaos. Ishiba initially indicated he would stay in office after his ruling coalition suffered a crushing defeat in the House of Councillors election, but now he likely is resolved to step down. It is believed that the conclusion of tariff negotiations with the United States prompted his decision to resign. However, on the surface, Ishiba still asserts a desire to run the government. During a meeting with three former prime ministers — Taro Aso, Yoshihide Suga and Fumio Kishida — he made no clear statement on whether he would step down, he said. In the ruling Liberal Democratic Party, including in its local organizations, there is a growing movement calling for Ishiba to step down. In accordance with party rules, a campaign has begun to collect signatures to bring forward the party presidential election. If a majority of the party's Diet members and representatives from its prefectural chapters support this motion, a presidential election is supposed to be held. When the party presidency becomes vacant part way through a presidential term, for example, the party rules allow for the LDP's Diet members to vote on a leader at a general meeting of lawmakers in both houses, with no vote by rank-and-file members. This is meant to minimize as much as possible the risk of a political vacuum. With Ishiba's three consecutive losses as LDP president — in last year's House of Representatives election, the Tokyo Metropolitan Assembly election and the recent upper house election — it is obvious that he no longer has the people's trust. It is quite natural that there is a movement within the LDP calling for Ishiba to step down. However, Ishiba has indicated he will meet with U.S. President Donald Trump after an agreement was reached in Japan-U.S. tariff talks. In August, memorial services are scheduled to be held on the anniversaries of the end of World War II and the atomic bombings of Hiroshima and Nagasaki. The Tokyo International Conference on African Development (TICAD), in which Japan has long taken the lead, will be held in Yokohama from Aug. 20 to 22. Ishiba plans to attend all of these events. Lawmakers close to Ishiba believe that a formal announcement of his resignation will be made after these events. However, if he delays his announcement, the party will not be able to officially start the process of choosing a new president. Japan's credibility abroad will suffer if intra-party strife intensifies and politics continues to be unstable. It would also be difficult for the ruling parties, which now comprise a minority in both houses of the Diet, to find a partner with whom to work toward a new coalition. In fact, Yoshihiko Noda, president of the Constitutional Democratic Party of Japan, has called for Ishiba's resignation, saying, 'Will he stay in office by ignoring the will of the people?' Seiji Maehara, co-representative of the Japan Innovation Party, has also rejected the idea of forming a coalition with the Ishiba administration, and indicated that if the JIP were to cooperate, it would be with a 'post-Ishiba' LDP. In order to quickly choose a new party president who can readily cooperate with the opposition, Ishiba should announce his resignation soon, taking the formal agreement in Japan-U.S. tariff talks as his main achievement in office. (From The Yomiuri Shimbun, July 25, 2025)
NHK
an hour ago
- NHK
Japan PM Ishiba meets other party leaders to explain US tariff deal
Japan's Prime Minister Ishiba Shigeru has told leaders of the ruling and opposition parties that the country's tariff deal with the United States was reached in a way that meets the national interests of both sides. The party leaders met on Friday morning. The participants alongside Ishiba were: Noda Yoshihiko of Constitutional Democratic Party of Japan, Maehara Seiji of Japan Innovation Party, Tamaki Yuichiro of Democratic Party for the People, Saito Tetsuo of Komeito, Kamiya Sohei of Sanseito, Oishi Akiko of Reiwa Shinsengumi and Tamura Tomoko of Japanese Communist Party. Ishiba said at the start of the meeting that since he made a proposal to US President Donald Trump in February, the Japanese side consistently called strongly for US officials to prioritize investment over tariffs. The prime minister went on to say that this has resulted in an agreement that meets the national interests of Japan and the US while protecting what needs to be protected. He noted that he received various opinions at the three previous meetings of party leaders, and expressed gratitude for their suggestions. Ishiba is believed to have explained the contents of the deal with the US, expressed intent to take all possible measures to support domestic industries, such as consultations on financing, and asked for the leaders' cooperation.
