Shinzo Abe urges stimulus as LDP returns to power in Japan
Tokyo, Japan (4E) – Three years after being out of power, Japan’s Liberal Democratic Party (LDP) is once again at the helm of the government after securing a landslide victory on Sunday.
With the sweeping victory by the conservative coalition of Liberal Democratic Party (LDP) and New Komeito (NK) that won two-thirds of the seats in Japan’s Diet, Abe will be elected as Prime Minister where he is expected to form a new cabinet on Dec. 26 during a special session of the parliament’s lower house.
The 58-year-old Abe is set to replace outgoing Prime Minister Yoshihiko Noda and will return to his previous position that he left five years ago due to health reasons.
Kyodo News reported on Sunday that Abe’s government will put forward a plan for fiscal stimulus to boost the slowing economy. The report also said that he may select former Prime Minister Taro Aso as the government’s new finance minister when he announces his Cabinet on Dec. 26.
Abe ran on a platform of increased infrastructure spending and the Bank of Japan taking “unlimited easing” to help the country emerge from a decade-long deflation.
Abe said on Sunday that he will wait for next year’s second-quarter figures to determine the timing of the 5 per cent sales tax hike. The sales tax will climb to 8 per cent in April 2014 and 10 per cent in October 2015.