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4h ago

LDP and Ishin Set Coalition Deal, Clearing Path for Takaichi as Japan’s First Woman PM

The pact creates a minority administration two seats shy of a lower-house majority.

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Leader of Japan's ruling Liberal Democratic Party (LDP) Sanae Takaichi and Hirofumi Yoshimura, leader the Japan Innovation Party, known as Ishin, bow during a meeting at Japan's National Diet Building in Tokyo, Japan, October 20, 2025. REUTERS/Kim Kyung-Hoon
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Governor of Osaka and Japan Innovation Party Co-Representative Hirofumi Yoshimura takes part in a debate with leaders of other political parties at the Japan National Press Club in Tokyo, Japan, July 2, 2025. Tomohiro Ohsumi/Pool via REUTERS/File Photo

Overview

  • Ishin leaders said they will sign the agreement on Monday and will vote for Sanae Takaichi in Tuesday’s parliamentary ballot.
  • The LDP–Ishin bloc holds 231 lower-house seats, two short of a majority, meaning Takaichi can win via a runoff but will need other parties to pass legislation and a supplementary budget.
  • As part of the deal, the LDP agreed to pursue a temporary zero consumption tax on food, a ban on corporate and organisational donations, and cuts to parliamentary seats, with Ishin declining cabinet posts initially.
  • The arrangement follows Komeito’s exit from a 26-year coalition with the LDP after disputes over funding rules and Takaichi’s conservative stance.
  • Markets welcomed the development, sending the Nikkei to a record and weakening the yen, even as analysts caution the alliance is fragile with policy gaps and early tests including a visit by President Trump and the APEC summit.