Fighting to the finish | Japan Daily Briefing
The ruling parties have not conceded on electoral reform yet, but
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A busy week ahead, with the Diet session ending on 17 December and the Bank of Japan announcing its next policy decision on 19 December. The Liberal Democratic Party (LDP) and Ishin no Kai are still looking for a path forward for electoral reform with three days left in the Diet session, Ishin no Kai is reluctant to contest a general election now, and the LDP and the Democratic Party for the People (DPFP) could be drawing closer together.
The week ahead
Ahead of the closing of the Diet session on Wednesday, 17 December, the House of Councillors is expected to vote on the supplemental budget on Tuesday, 16 December.
The Bank of Japan will hold a policy board meeting, at which it is expected to vote for an interest rate increase to 0.75%, from 18-19 December. Governor Ueda Kazuo will hold his press conference on the afternoon of 19 December.
The Ministry of Finance releases November trade figures on 17 December, while the Ministry of Internal Affairs and Communications will release November inflation data on 19 December.
The ruling parties are aiming to finalize the FY2026 tax plan by 19 December.
The Cabinet Office will issue its monthly economic report for December on 19 December.
Ruling parties refuse to concede on electoral reform
Neither the Liberal Democratic Party (LDP) nor Ishin no Kai has formally abandoned their effort to pass a joint legislative proposal that would reduce the number of lower house seats in the absence of an alternative electoral reform plan.
At an LDP meeting in Morioka on Sunday, 14 December, LDP Secretary-General Suzuki Shunichi said that although the Diet session is scheduled to close on 17 December, if it appears that there is a pathway for passing the bill, extending the session could be an option. His Constitutional Democratic Party (CDP) counterpart Azumi Jun replied that it is baffling for the LDP, after stonewalling attempts to advance political funding reform, to now say that it is urgent to move immediately to cut the number of legislative seats.
Senior party officials also debated the issue on NHK’s Nichiyō Tōron, showing the parties completely deadlocked over how to proceed, with the opposition parties still united in their opposition to the automatic reduction mechanism. It remains highly unlikely that the LDP and Ishin no Kai will be able to overcome opposition resistance to bringing the bill up for discussion before Wednesday.
