Prime Minister Naoto Kan invited the head of the largest opposition party to join his cabinet as the government stepped up efforts to build political support for its battle to contain the nation’s deepest postwar crisis.
Sadakazu Tanigaki, who heads the Liberal Democratic Party, told reporters yesterday in Tokyo that Kan had called him to propose he become vice prime minister for earthquake reconstruction, an idea rejected by the LDP’s leadership. Kan also met yesterday with former leaders of his ruling party.
Kan is asking other parties for cooperation, rather than a coalition, Yukio Hatoyama, Kan’s predecessor as premier, told reporters in Tokyo yesterday after meeting with him. Ichiro Ozawa, whom Kan defeated last year for leadership of the Democratic Party of Japan, and Seiji Maehara, who resigned as foreign minister this month, also attended the Cabinet Office gathering.
The ruling DPJ failed to break an impasse in parliament before the March 11 earthquake when the opposition refused to approve legislation needed to let the government sell deficit- financing bonds. On the morning of the 11th, Kan, 64, had sought to head off calls for his resignation as he became engulfed in political-donation turmoil.
“It seems likely that the disaster will break the gridlock in parliament over the issue of the financing bill, which is near-term positive,” Andrew Colquhoun, the Hong Kong-based head of Asia-Pacific sovereigns at Fitch Ratings, said in an interview with Bloomberg Television last week.
Tanigaki said that he told Kan “it’s not time for changing the cabinet members, you should devote yourself to help refugees and manage the reactors issues.”
Shu Watanabe, vice-chairman of the DPJ’s counter-disaster council, had earlier today indicated the government wanted LDP members to join it.
“We proposed to the opposition to form a cabinet for saving this country -- this is a way of saying, let’s put aside political differences and put all our efforts into rehabilitation and reconstruction,” Watanabe said in a panel discussion on TBS television yesterday.
In one sign of prospects for cooperation, the DPJ last week signaled it may ditch campaign promises in order to secure funds for earthquake reconstruction efforts.
Japan’s record debt burden limits its capacity to increase borrowing without further endangering its sovereign-debt rating and leading to higher funding costs. Public debt is about twice the size of gross domestic product.
Japan’s rating outlook was lowered to negative from stable by Moody’s Investors Service Feb. 22 on concern that political gridlock would constrain efforts to tackle the debt burden. The ranking is Aa2, the company’s third highest. Standard & Poor’s cut its grade in January to fourth highest.
For now, bonds have rallied as investors sought a haven with a slump in equities after the earthquake, which killed thousands and crippled a nuclear power plant, spurring the danger of spreading radiation.
The disaster has changed the political landscape since Kan on the morning of the temblor faced a battle to remain in office. He told lawmakers that day he “had no idea” a political contributor to his office wasn’t a Japanese citizen, violating campaign rules.
The Asahi newspaper reported Kan received 1.04 million yen ($12,900) from a South Korean resident. A similar charge prompted Maehara, who was the most favored person to become prime minister in a Sankei newspaper survey published March 1, to resign March 6.
Sadakazu Tanigaki, who heads the Liberal Democratic Party, told reporters yesterday in Tokyo that Kan had called him to propose he become vice prime minister for earthquake reconstruction, an idea rejected by the LDP’s leadership. Kan also met yesterday with former leaders of his ruling party.
Kan is asking other parties for cooperation, rather than a coalition, Yukio Hatoyama, Kan’s predecessor as premier, told reporters in Tokyo yesterday after meeting with him. Ichiro Ozawa, whom Kan defeated last year for leadership of the Democratic Party of Japan, and Seiji Maehara, who resigned as foreign minister this month, also attended the Cabinet Office gathering.
The ruling DPJ failed to break an impasse in parliament before the March 11 earthquake when the opposition refused to approve legislation needed to let the government sell deficit- financing bonds. On the morning of the 11th, Kan, 64, had sought to head off calls for his resignation as he became engulfed in political-donation turmoil.
“It seems likely that the disaster will break the gridlock in parliament over the issue of the financing bill, which is near-term positive,” Andrew Colquhoun, the Hong Kong-based head of Asia-Pacific sovereigns at Fitch Ratings, said in an interview with Bloomberg Television last week.
LDP Opposed
The Liberal Democratic Party, which ruled Japan for almost all of the postwar period until the DPJ unseated it in 2009, has pledged cooperation on a stimulus package to help rebuild from Japan’s record earthquake.Tanigaki said that he told Kan “it’s not time for changing the cabinet members, you should devote yourself to help refugees and manage the reactors issues.”
Shu Watanabe, vice-chairman of the DPJ’s counter-disaster council, had earlier today indicated the government wanted LDP members to join it.
“We proposed to the opposition to form a cabinet for saving this country -- this is a way of saying, let’s put aside political differences and put all our efforts into rehabilitation and reconstruction,” Watanabe said in a panel discussion on TBS television yesterday.
In one sign of prospects for cooperation, the DPJ last week signaled it may ditch campaign promises in order to secure funds for earthquake reconstruction efforts.
Debt Burden
“We must secure funds to deal with this massive disaster,” Katsuya Okada, secretary general of the Democratic Party of Japan, told reporters on March 15 in Tokyo. “We have to decisively” review spending plans including campaign promises such as childcare handouts and toll-free highways, he said.Japan’s record debt burden limits its capacity to increase borrowing without further endangering its sovereign-debt rating and leading to higher funding costs. Public debt is about twice the size of gross domestic product.
Japan’s rating outlook was lowered to negative from stable by Moody’s Investors Service Feb. 22 on concern that political gridlock would constrain efforts to tackle the debt burden. The ranking is Aa2, the company’s third highest. Standard & Poor’s cut its grade in January to fourth highest.
For now, bonds have rallied as investors sought a haven with a slump in equities after the earthquake, which killed thousands and crippled a nuclear power plant, spurring the danger of spreading radiation.
New Political Landscape
Japanese government bonds posted the biggest weekly gain in five months March 18. The benchmark 10-year yield retreated six basis points since March 11 to 1.21 percent at Japan Bond Trading Co. The yield spread with 40-year debt widened to the most in three years on speculation the government will increase debt issuance to finance rebuilding.The disaster has changed the political landscape since Kan on the morning of the temblor faced a battle to remain in office. He told lawmakers that day he “had no idea” a political contributor to his office wasn’t a Japanese citizen, violating campaign rules.
The Asahi newspaper reported Kan received 1.04 million yen ($12,900) from a South Korean resident. A similar charge prompted Maehara, who was the most favored person to become prime minister in a Sankei newspaper survey published March 1, to resign March 6.
0 التعليقات
Post a Comment