Sanae Takaichi Nears Historic Appointment as Japan’s First Female PM

Tokyo, Japan – Hardline conservative Sanae Takaichi is on the verge of making history as Japan’s first female prime minister after securing backing from the right-wing opposition Japan Innovation Party (Ishin). The coalition pact gives her the support of 231 seats in the parliament’s lower house, just two short of an outright majority, but sufficient for a parliamentary vote on Tuesday, October 21, 2025.

“I very much look forward to working together … in an endeavour to strengthen Japan’s economy and transform the country,” Takaichi said during the signing of the formal coalition agreement with Ishin leaders, Osaka Governor Hirofumi Yoshimura and parliamentary head Fumitake Fujita.

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The Coalition Pact: Policies and Compromises

The coalition agreement includes specific policy commitments and deadlines, designed to align the LDP with Ishin’s agenda. Key concessions to Ishin include:

• Cutting 10% of parliamentary seats to streamline government operations.
• Suspending the consumption tax on food for two years.
• Advancing small-government policies favored by Ishin lawmakers.

This coalition comes 10 days after the collapse of the 26-year LDP-Komeito alliance, which ended following Takaichi’s election as LDP leader. Ishin’s support has effectively secured her premiership and avoided a potential loss of power for the ruling party for the first time in over a decade.

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Market Reaction and Parliamentary Strategy

Investors reacted positively to the coalition deal, anticipating a boost in government spending. The Nikkei share index closed up 3.4%, while the yen weakened on expectations of fiscal expansion.

While Takaichi needs only a majority of ballots cast to win in the parliamentary vote, she will still need to court additional opposition groups to advance key legislation, including the upcoming supplementary budget.

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Takaichi’s Economic and Fiscal Agenda

Known as a fiscal dove, Takaichi has advocated for higher spending and targeted tax cuts to ease inflation pressures on consumers. She has criticized the Bank of Japan for raising interest rates, while analysts expect her policies to support rising stock prices and a weaker yen.

Some analysts note that Ishin, traditionally advocating for budget cuts, could impose limits on Takaichi’s fiscal ambitions, creating a balancing act between expansionary measures and small-government priorities.

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Defense, Immigration, and Social Policies

Takaichi is a security hawk with plans to revise Japan’s pacifist postwar constitution to recognize the role of its military. She supports increased defense spending to deter regional threats, particularly from China.

A regular visitor to the Yasukuni Shrine, which honors Japan’s war dead and convicted war criminals, Takaichi’s actions have drawn criticism from some Asian neighbors.

She also opposes policies allowing women to retain surnames after marriage, citing the importance of maintaining traditional values, and advocates for stricter immigration rules to address perceived economic and social challenges.

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Ishin’s Role in Takaichi’s Government

At present, Ishin will not hold ministerial posts in Takaichi’s cabinet, opting instead to ensure that its policy priorities are effectively implemented within the ruling coalition. Osaka Governor Hirofumi Yoshimura emphasized the party’s lack of prior government experience, noting:

“Right now, we’re still a group of lawmakers with no experience in government. So, rather than asking for a ministerial post, we want to first focus on realizing our policies as part of the ruling coalition.”

This cautious approach allows Ishin to influence government priorities without immediately taking on formal administrative responsibilities.