Part 12/13:
However, the coalition’s slender majority—only 231 seats—means sustained support from minor parties is essential for passing legislation. Taro’s regional roots and populist reform agenda may clash with the LDP’s traditional fiscal conservatism, posing challenges to policy coherence.
In the short term, this political development has rekindled optimism, with analysts pointing to the potential for Japan to adopt its most expansive policy in over a decade. Yet, experts caution that increased spending and looser monetary policy could strain Japan’s fragile fiscal position, already burdened by the world’s highest debt-to-GDP ratio.