Sheila A. Smith
October 21, 2025, marked a historic first for Japan. The Japanese Diet elected Takaichi Sanae, the leader of the Liberal Democratic Party (LDP), to the country’s highest office. As Japan’s first female prime minister, Takaichi brings a fresh face to a country that has struggled with gender equality, especially in politics. But as prime minister, Takaichi will take on a complex agenda. By the end of next week, she will meet the leaders of the United States, China, South Korea, and others at a round of Asian multilateral gatherings.
But the bigger task may still be managing the politics at home. Takaichi leads a party that has slipped severely in popularity, and new younger parties have risen to pose a serious challenge to the idea that only the LDP can generate good ideas for governing Japan. Serious losses in both Lower House and Upper House elections this past year forced the LDP to form its government from the minority. A long-standing coalition with the Komeitō helped, but this fell apart when Komeitō president, Saitō Tetsuo, failed to gain Takaichi’s agreement to limit corporate funding of political parties. Takaichi apologized for losing Komeitō but worked quickly to craft a new coalition with the Ishin no Kai (Japan Innovation Party). This secured support for her bid to become prime minister, but the coalition document released on Monday suggests that work still needs to be done to clarify shared goals. Ishin’s leaders, Fujita Fumitake and Osaka Governor Yoshimura Hirofumi, told their members on Sunday that they will wait and see how the LDP fulfills its promises. Takaichi will need to manage this new relationship carefully to keep this new partner on side.
Within her party, Japan’s new prime minister also has some bridges to build. Three out of four competitors for the LDP leadership are included in her new cabinet. The fourth, Kobayashi Takayuki, became head of the influential LDP policy research council. But the larger issue of the party’s identity may take time to resolve. A series of money-in-politics (seji to kane) scandals, growing differences over policy priorities, and lingering personal rivalries still plague the conservatives. The demand for new fundraising rules for political parties comes from opposition parties but also from within her own party. Economic challenges will undoubtedly be at the top of her priority list, given cost-of-living concerns expressed by Japanese voters, but there is no consensus within the LDP on how to fund short-term aid to households while crafting a longer-term growth strategy. When the LDP ruled from the legislative majority, either on its own or in coalition with Komeitō, these differences could be managed in-house. But now Takaichi will need to craft agreements with opposition parties to pass the government budget and legislate new policy initiatives while keeping her own party and her new coalition partner aligned.
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