In a jolt to Tokyo's political landscape, Komeito leader Tetsuo Saito announced on Friday that the party will end its more than 25-year coalition with the Liberal Democratic Party (LDP). The move also means Komeito will refuse to back new LDP chief Sanae Takaichi's bid for prime minister in the upcoming Diet vote.
Saito cited three sticking points: historical sensitivities around visits to Tokyo's Yasukuni Shrine, worries over exclusionary policies toward foreign residents, and a deepening political funding scandal. While the two sides found common ground on history and inclusion, they could not agree on Komeito's call for stricter controls on political donations.
Komeito has pushed for a cap of 20 million yen (about $130,000) per year on corporate donations to any single party, a limit that does not exist under current Japanese law. The LDP, by far the top recipient of corporate gifts, resisted tighter rules that it says could hamper political campaigning.
"Efforts to tackle politics and money are our top priority," Saito told reporters. "The LDP has not provided sufficient answers on how it will reform political funding."
Investors had dubbed the optimistic fiscal stimulus bets behind Takaichi's rise the "Takaichi trade," but Komeito's exit injects fresh uncertainty into market expectations for government spending and economic policy.
With Komeito out of the coalition, the LDP will now need support from opposition members to secure Takaichi's election—a challenging task in a fragmented Diet. The split marks a rare moment of realignment in Japan's ruling bloc and underscores the rising importance of transparency in political money.
Reference(s):
cgtn.com
