Japan’s Takaichi forges stunning election win

TOKYO: Japanese Prime Minister ruling coalition of Sanae Takaichi swept to a historic election win on Sunday, paving the way for promised tax cuts that have unsettled financial markets.

Takaichi, Japan’s first female prime minister who has cited Britain’s “Iron Lady” Margaret Thatcher as an inspiration, was projected to lead her Liberal Democratic Party (LDP) to as many as 328 of the 465 seats in the lower house of parliament. The LDP alone surpassed the 233 seats needed for a majority shortly after polls closed, marking one of its strongest electoral performances.

With her coalition partner, the Japan Innovation Party (Ishin), Takaichi’s bloc now holds a supermajority of two-thirds of seats, giving her the power to override the upper chamber, which is not under her control, and advance her legislative agenda more easily.

Calling the rare winter snap election — only the third postwar lower-house vote held in February — Takaichi defended major shifts in economic, fiscal and security policy that had drawn significant opposition. Voters trudged through heavy snow in parts of the country to cast ballots, with some polling stations briefly closing due to record snowfall.

Takaichi, 64, said the public’s support mandates her to “tackle these issues with all our strength,” stressing both economic relief and fiscal sustainability. Her key campaign promise to suspend the 8% consumption tax on food to ease burdens on households has rattled investors, who question how Japan — with the largest debt burden among advanced economies — will fund the plan.

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Analysts have warned that the proposed tax cut raises “big question marks” over funding and fiscal arithmetic, even as Takaichi vowed on Sunday to accelerate consideration of the measure while maintaining a focus on long-term financial stability.

Among the first to congratulate Takaichi was Taiwan President Lai Ching-te, who expressed hope that her victory “will bring a more prosperous and secure future for Japan and its partners in the region.”

Takaichi’s strong mandate could also accelerate her plans to bolster Japan’s defence capabilities, a move likely to further strain ties with Beijing, which has criticized her for what it sees as efforts to revive Japan’s militaristic past. Defence Minister Shinjiro Koizumi said on Sunday evening that the government intends to push ahead with policies to strengthen national defence.

The election outcome gives Takaichi a commanding position as she seeks to balance economic relief with fiscal discipline and navigate complex regional security dynamics.