Global General

Special

Newsmaker

Asia Pacific

America

Middle East

Europe

Africa

Japan finance minister warns of opposition landslide

(Agencies)
Updated: 2009-08-25 16:22

Pensions top voter worries

Voters may not have high hopes for the novice Democrats, but many seem ready to give them a chance.

"I would like to let them try once and see how much they can do," said Hiroshi Sugimoto, a 43-year-old wine bar owner who plans to vote for the Democrats.

"It's going to be tough for Yosano."

Investors in Japan's stock market would generally welcome a Democratic Party win if it breaks the policy deadlock created when opposition parties won control of the upper house in 2007, allowing them to delay legislation.

But analysts worry the Democrats' promises to spend more on households with steps such as child allowances, toll-free highways and aid for farmers might inflate a public debt already equal to 170 percent of GDP and push up bond yields. The opposition says it could fund the steps mostly by cutting waste.

"If the Democratic Party were to win, a landslide victory would be better. Otherwise, policies would lack a specific direction," said Kazuhiro Takahashi, a general manager at Daiwa Securities SMBC.

"Once a change in the government becomes a reality, risks related to that change and the Democrats' ability to lead the country will be in focus."

The Sankei newspaper said the LDP could see its number of seats more than halved to around 130 while its junior partner, the New Komeito, would have trouble keeping its current 31 seats. But it said that with more than 30 percent of voters yet to make clear their views, the situation was fluid.

Seeking to attract voters back to the ruling camp, Yosano took a swipe at the opposition's spending plans.

"It wouldn't be easy for the DPJ to realise its pledges as fiscal conditions are tough," he said.

Prime Minister Taro Aso is trying to convince voters that only an experienced LDP can handle problems such as an economy struggling to emerge from its worst recession in 60 years and security threats from unpredictable neighbour the Democratic People's Republic of Korea (DPRK).

But worries about Japan's creaking pension and health care systems topped the list of issues voters are focusing on in the election, the Sankei reported, with more than 30 percent saying it is their main concern. That was nearly double the figure who see the economy as the top priority.  

   Previous page 1 2 Next Page  

   Previous page 1 2 Next Page