Berliner Boersenzeitung - A new vision for Japan

EUR -
AED 4.177527
AFN 72.223742
ALL 94.547257
AMD 418.839095
ANG 2.036307
AOA 1043.442074
ARS 1680.137834
AUD 1.644822
AWG 2.047222
AZN 1.931234
BAM 1.961501
BBD 2.29176
BDT 139.953663
BGN 1.923115
BHD 0.42879
BIF 3394.976033
BMD 1.137345
BND 1.47629
BOB 7.862782
BRL 5.909299
BSD 1.137907
BTN 107.359012
BWP 15.526989
BYN 3.23824
BYR 22291.969929
BZD 2.288531
CAD 1.614934
CDF 2580.637098
CHF 0.921375
CLF 0.026542
CLP 1044.58337
CNY 7.723137
CNH 7.73632
COP 3918.530243
CRC 517.905159
CUC 1.137345
CUP 30.139653
CVE 110.749043
CZK 24.26407
DJF 202.128941
DKK 7.474509
DOP 67.046428
DZD 151.753733
EGP 56.31304
ERN 17.060181
ETB 180.440211
FJD 2.57239
FKP 0.864326
GBP 0.861795
GEL 3.002355
GGP 0.864326
GHS 12.766703
GIP 0.864326
GMD 82.458527
GNF 9980.206539
GTQ 8.68123
GYD 238.079825
HKD 8.917664
HNL 30.390087
HRK 7.537412
HTG 148.722223
HUF 354.183579
IDR 20434.571149
ILS 3.392616
IMP 0.864326
INR 107.42318
IQD 1489.92248
IRR 1563906.798376
ISK 143.999143
JEP 0.864326
JMD 179.34121
JOD 0.806397
JPY 184.024737
KES 147.175616
KGS 99.461383
KHR 4560.755034
KMF 493.608245
KPW 1023.611262
KRW 1757.079237
KWD 0.352157
KYD 0.948248
KZT 551.482744
LAK 25095.526127
LBP 101849.281014
LKR 383.4845
LRD 207.281831
LSL 18.868763
LTL 3.358285
LVL 0.687969
LYD 7.284673
MAD 10.708676
MDL 20.197521
MGA 4805.284556
MKD 61.642041
MMK 2387.896327
MNT 4076.044786
MOP 9.189125
MRU 45.573116
MUR 54.830822
MVR 17.572346
MWK 1975.568451
MXN 19.925097
MYR 4.688144
MZN 72.688087
NAD 18.868935
NGN 1564.612203
NIO 41.638593
NOK 11.209337
NPR 171.770431
NZD 2.013335
OMR 0.437312
PAB 1.137897
PEN 3.891992
PGK 4.985269
PHP 69.763066
PKR 316.239064
PLN 4.284272
PYG 6953.146413
QAR 4.145568
RON 5.232701
RSD 117.388821
RUB 86.095889
RWF 1667.348363
SAR 4.270703
SBD 9.157851
SCR 16.72142
SDG 682.407518
SEK 11.070096
SGD 1.474312
SHP 0.849143
SLE 28.196739
SLL 23849.568628
SOS 649.997351
SRD 42.445914
STD 23540.753582
STN 25.021599
SVC 9.956937
SYP 125.713173
SZL 18.868914
THB 37.957194
TJS 10.51958
TMT 3.980709
TND 3.340954
TOP 2.738455
TRY 52.902823
TTD 7.728461
TWD 36.192947
TZS 2978.63486
UAH 51.1657
UGX 4210.235978
USD 1.137345
UYU 45.652678
UZS 13665.205331
VES 706.010555
VND 29934.931047
VUV 136.277564
WST 3.159291
XAF 657.863127
XAG 0.019589
XAU 0.000282
XCD 3.073733
XCG 2.050715
XDR 0.816619
XOF 651.698432
XPF 119.331742
YER 271.399101
ZAR 18.744993
ZMK 10237.478201
ZMW 20.538509
ZWL 366.224756
  • CMSC

    -0.0190

    22.046

    -0.09%

  • RBGPF

    0.0000

    61.3

    0%

  • RYCEF

    -0.1600

    18

    -0.89%

  • GSK

    0.8000

    51.89

    +1.54%

  • BP

    -0.1400

    37.72

    -0.37%

  • VOD

    0.0500

    13.86

    +0.36%

  • BCE

    0.0000

    23.2

    0%

  • RIO

    1.0800

    95.11

    +1.14%

  • BTI

    1.0900

    62.48

    +1.74%

  • CMSD

    -0.0900

    21.93

    -0.41%

  • NGG

    0.5900

    83.42

    +0.71%

  • RELX

    -0.2300

    30.92

    -0.74%

  • AZN

    2.6600

    185.68

    +1.43%

  • BCC

    2.1000

    79.76

    +2.63%

  • JRI

    0.0100

    12.58

    +0.08%


A new vision for Japan




Sanae Takaichi’s election as prime minister in October 2025 has ushered in a historic and transformative period for Japan. She is the country’s first woman to hold the post and, with a small Conservative bloc in parliament, she must rely on cooperation from opposition parties to deliver her ambitious agenda. A protégé of the late Shinzo Abe and a keen admirer of Margaret Thatcher, she promised during her leadership campaign to reassert Japan’s economic might, strengthen national security and regain the trust of conservative voters lost to right‑wing rivals.

Reviving the economy through fiscal firepower
Takaichi’s economic agenda centres on aggressive public spending coupled with targeted tax cuts. Within days of taking office she began drafting a fiscal package worth more than ¥13.9 trillion, surpassing the stimulus enacted in the previous year. The package aims to cushion households from inflation, expand investment in growth industries and support national security. Among the key measures under discussion are the abolition of a provisional gasoline tax that has been in place since 1974, lifting the income tax exemption threshold from ¥1.03 million to ¥1.6 million and combining income tax deductions with cash benefits to provide relief without increasing headline tax rates.

A Growth Strategy Council has been established to steer these efforts. The panel will map out a medium‑term plan by next summer, identifying sectors such as artificial intelligence, semiconductors, shipbuilding, defence and telecommunications as priorities. Takaichi has already signalled her intention to invest roughly ¥1.7 trillion in Rapidus, Japan’s fledgling chipmaker, with the goal of tripling its overseas revenue by 2033. She has charged her ministers with developing domestic supply chains for semiconductors and AI and with supporting small and medium‑sized businesses through tax reforms and productivity‑boosting incentives. Her emphasis on “responsible and proactive fiscal policy” seeks to ensure that economic growth outpaces debt accumulation, even if the programme is financed through deficit bonds.

In addition to the stimulus package, Takaichi has pledged to transform Japan into a global asset‑management hub and to create a national disaster‑prevention agency. She advocates establishing a “secondary capital” outside Tokyo to decentralise government functions, and she has called for social security reforms to balance benefits and costs in an ageing society. Recognising that recovery from the Fukushima nuclear disaster remains incomplete, she instructed the new economy minister to prioritise reconstruction alongside growth initiatives. Energy policy features prominently in her plan: she wants Japan to leverage renewable energy and nuclear power to secure a decarbonised yet stable electricity supply.

Accelerating military modernisation
National security is another pillar of Takaichi’s platform. Breaking with decades of precedent, she intends to raise defence spending to 2 per cent of gross domestic product by the end of March 2026 — two years ahead of the timetable set by her predecessor. This acceleration will require an extra trillion yen through a supplementary budget and marks Japan’s largest defence build‑up since the Second World War. Her government has already begun revising the National Security Strategy, National Defence Strategy and Defence Buildup Programme to reflect the changing security environment, citing Russia’s invasion of Ukraine, regional conflicts in the Middle East and heightened pressure from China and North Korea.

The new administration’s alliance with the Japan Innovation Party, which shares a hawkish stance on China, removes the moderating influence of the pacifist‑leaning Komeito and liberates her to pursue constitutional change. Takaichi is a long‑time advocate of revising Article 9 of the Constitution to acknowledge the Self‑Defence Forces and relax restrictions on arms exports. Her coalition partners have floated proposals for a nuclear‑sharing arrangement with the United States, a radical departure from Japan’s longstanding non‑nuclear principles. She hopes to deepen ties with Washington and has signalled she will quickly meet President Donald Trump to discuss ways to strengthen the bilateral alliance. In the face of calls from some U.S. officials to raise defence outlays to 3 or even 5 per cent of GDP, she is likely to present a package of purchases ranging from American vehicles and soybeans to natural gas and attract U.S. investment in Japanese industries. At the same time, she has pledged to maintain a constructive relationship with China and to work with South Korea, Australia and India to support a free and open Indo‑Pacific.

A tougher line on immigration and foreign ownership
Alongside her economic and security initiatives, Takaichi has placed immigration at the heart of her domestic agenda. Despite acknowledging the need for foreign labour to offset Japan’s demographic decline, she has vowed to “set limits” on the number of foreign workers admitted through programmes designed to address labour shortages. In an early ministerial meeting on foreign nationals she argued that public anxiety stems from rule‑breaking by a minority of foreigners and announced plans to deny visa renewals to those who fall behind on pension or health‑insurance contributions. She has also instructed ministers to examine tighter regulations on land purchases by foreign nationals, particularly Chinese investors, and to develop a population strategy by fiscal 2026 with numerical targets for foreign residents.

Takaichi’s cabinet includes a minister specifically responsible for economic security and harmonious coexistence with foreign nationals. This official, Kimi Onoda, has been tasked with coordinating immigration policy, enforcing compliance and examining regulations on property ownership. The prime minister insists that her approach is aimed at ensuring fairness rather than promoting xenophobia. Critics, however, argue that the rhetoric and policies reflect a broader nationalist turn within the ruling party. During the leadership race she built support by invoking isolated anecdotes to justify restrictions on foreigners, echoing the populist “Japanese First” platform championed by right‑wing groups. Opponents warn that such measures could undermine industries that rely on overseas labour and exacerbate social divisions.

Managing minority rule and foreign relations
The political context surrounding Takaichi’s premiership complicates the implementation of her agenda. Her coalition is two votes short of a majority in the lower house, compelling her to seek backing from centrist and opposition parties to pass budgets and constitutional amendments. While she enjoys strong approval ratings in the early days of her government, observers question whether she can sustain momentum when her spending plans face scrutiny over Japan’s already‑high public debt.

Diplomatically, Takaichi must balance her hawkish instincts with regional realities. She reaffirmed Japan’s commitment to supporting Ukraine, pledged to secure the return of citizens abducted by North Korea, and called China an important neighbour despite labelling its actions a security challenge. In a symbolic nod to regional sensitivities, she refrained from visiting the Yasukuni war shrine during the autumn festival, a move interpreted as an attempt to ease tensions with Beijing and Seoul. Nevertheless, her regular visits in the past and her hard‑line views on wartime history continue to evoke suspicion abroad.

Sanae Takaichi’s rise to Japan’s highest office brings a blend of economic populism, military assertiveness and cultural conservatism. Her vision seeks to rekindle growth through massive public investment while rewriting the rules that have governed Japan’s post‑war pacifism and demographic openness. Whether she succeeds in changing Japan forever will depend on her ability to steer her minority government through political turbulence, manage relations with powerful allies and competitors, and reconcile a rapidly ageing society with the demands of globalisation.