Ishiba Administration Seeks Alliance with Opposition Party
The Ishiba administration, facing a weakened position after the recent election, is planning to incorporate several economic measures proposed by the opposition Democratic Party for the People (DPP) into its upcoming stimulus package. This move is seen as an attempt to form a "partial alliance" with the DPP and secure its cooperation on key issues, including the supplementary budget, Diet votes, and future legislation.
The DPP has seen a significant increase in its Lower House seats, making it a valuable ally for the Ishiba administration. The administration hopes to leverage this alliance to overcome its lack of a majority in the Diet and push through its agenda.
Prime Minister Ishiba has explicitly stated his desire to incorporate policies from parties that have gained seats in the recent election, effectively referring to the DPP. He specifically mentioned the DPP's proposal to increase people's after-tax income, which aligns with the administration's goal of increasing real wages.
The administration plans to finalize the comprehensive economic package, including the DPP's proposals, for Cabinet approval around November 14th. A special Diet session will be convened shortly after, where Ishiba is expected to be re-elected as Prime Minister. Following this, the administration will compile a draft supplementary budget and aim to enact it by the end of the year.
The LDP has also begun considering establishing a forum for policy dialogue with opposition parties to gather their input on the draft supplementary budget. This move further demonstrates the administration's willingness to collaborate with the opposition to achieve its goals.
The DPP has expressed its openness to discussions with the ruling coalition and is willing to support the supplementary budget proposal if its priority policies, such as income tax cuts and measures to alleviate the burden of high energy costs, are accepted.
This potential alliance between the Ishiba administration and the DPP could have significant implications for Japan's economic and political landscape. It remains to be seen whether the two parties can find common ground and successfully collaborate on key issues.