Japanese Prime Minister Sanae Takaichi is set to mark the opening of a new parliamentary session by presenting a broad economic vision in which government policies help stoke private investment into key industries to secure the nation’s future.
In a speech Friday, Takaichi will likely outline plans to boost strategic investment, conduct “active but responsible” fiscal policy, and pursue assertive diplomacy. It will be her first address to parliament since she led the Liberal Democratic Party to a historic triumph in a snap election that gave the party a supermajority.
As part of her bid to coax more domestic investment, the premier will likely touch on creating a new approach to government spending that would span multiple years and obviate the need to roll out extra budgets every year.
“The government must take the step to urge bold investment based on cooperation between the public and private sectors,” Takaichi said in a news conference Wednesday as she emphasized the need to invest in both risk management and growth. “We will overhaul the very foundation of how we put together this country’s budget.”
She added that the government would support policies through multi-year budgets and long-term funds to make patterns of public spending predictable in hopes that doing so would encourage more private investment in capital along with research and development.
Takaichi may also give some indication in her speech of how she intends to revise the three security documents underpinning Japan’s defense posture that pertain to security strategy, defense strategy and a program for building capabilities.
Boosting Japan’s defense capabilities has been a pillar of her policy platform, and she is already overseeing the overhaul of these three areas. A revision could see more defense outlays and steps aimed at strengthening the nation’s defense industry.
In touching on these topics, Takaichi will likely burnish the image she has maintained of being a diplomatic hawk on China while also seeking to avoid needlessly inflaming tensions between the two nations.
In her four months in office, she has already shown a glimpse of how she might deal with China during her tenure. Despite pressure from Beijing, the premier has refused to retract comments she made in November indicating that a Chinese invasion of Taiwan could constitute a legal justification for Japan to deploy troops.
Over the weekend, officials from both countries continued their verbal sparring. After Chinese Foreign Minister Wang Yi warned Takaichi against a return to militarism, authorities in Tokyo refuted the insinuation, with Chief Cabinet Secretary Minoru Kihara citing global recognition of Japan’s “consistent contribution to the peace and stability of the international community.”
Takaichi’s defiant stance has been received relatively well domestically, where her strong approach to diplomacy has been among factors keeping her support levels at historically high levels.
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