PM Takaichi vows policy shifts to forge a strong, prosperous Japan

In her first policy speech since reelection as prime minister by parliament earlier this week, Takaichi also expressed her willingness to cooperate with the opposition despite her ruling party's historic landslide victory in the Feb. 8 general election.

Sanae Takaichi said she will promote "responsible and proactive" fiscal policies and measures to encourage domestic investments in crisis management and promising fields.

"My Cabinet will end the long-running practice of excessive fiscal austerity and insufficient investment for the future," said Takaichi, who became Japan's first female prime minister in October and was reelected Wednesday. "We will intensely press, press, press, press, and press the switch for growth."

Takaichi vowed to speed up discussions on a two-year suspension of the 8-percent consumption tax on food and beverage items, aiming to draw an interim conclusion before the summer at a cross-party "national council" and submit related bills swiftly.

With prolonged inflation in mind, the government will not rely on deficit-covering bond issuance for the suspension, which would be a stopgap to help households until the envisioned introduction of an income tax deduction and cash handout system, she said.

"By fully mobilizing these measures, we will create a virtuous cycle of investment and wage hikes," Takaichi said.

Although Japanese prime ministers usually deliver policy speeches in January after the start of ordinary Diet sessions, this year the session ended in one day as Takaichi dissolved the House of Representatives on Jan. 23 for a snap election, leading to her address during a 150-day special session that started Wednesday.

In the election, Takaichi's Liberal Democratic Party and its coalition partner, the Japan Innovation Party, won more than three-quarters of the lower house's 465 seats, well above the two-thirds threshold required to override the House of Councillors to push through bills.

In the upper house, the LDP-JIP bloc remains in a minority.

Takaichi said she hopes to work with opposition parties in realizing policies, quoting from a Chinese classic, "With trust, we act in righteousness, with righteousness, we fulfill our mandate."

She called for cooperation to ensure the early enactment of a draft initial budget for fiscal 2026, starting April, which, before the snap election,  had been expected to pass by the end of March, and of tax reform bills.

To prevent "unjustifiable foreign interference" in Japan, Takaichi said her government will establish a ministerial-level committee and upgrade the existing Cabinet Intelligence and Research Office to a national agency.

A conservative with hawkish security views, Takaichi also said she expects a deeper public debate on amending the war-renouncing Constitution, a long-held LDP goal, and revising the Imperial House Law for a "stable imperial succession," amid a decline in the number of imperial family members.

As for diplomacy, Takaichi said she will visit the United States next month, if possible, to "further strengthen a relationship of trust" with President Donald Trump, describing the bilateral alliance as the linchpin of Japan's foreign and security policies.

As reported on Thursday, Prime Minister Takaichi's 2nd cabinet has begun work.