Berliner Boersenzeitung - A new vision for Japan

EUR -
AED 4.172583
AFN 72.714994
ALL 94.095258
AMD 416.93039
ANG 2.034203
AOA 1042.439173
ARS 1678.393563
AUD 1.646838
AWG 2.045106
AZN 1.932124
BAM 1.95366
BBD 2.282559
BDT 139.397284
BGN 1.921128
BHD 0.428303
BIF 3385.787417
BMD 1.13617
BND 1.47037
BOB 7.831145
BRL 5.903087
BSD 1.133338
BTN 106.927973
BWP 15.464853
BYN 3.22531
BYR 22268.937374
BZD 2.279363
CAD 1.613407
CDF 2579.106417
CHF 0.921088
CLF 0.026568
CLP 1045.651444
CNY 7.715164
CNH 7.728059
COP 3916.992467
CRC 515.823542
CUC 1.13617
CUP 30.108512
CVE 110.140459
CZK 24.263314
DJF 201.818011
DKK 7.474359
DOP 66.785364
DZD 151.644677
EGP 56.259632
ERN 17.042554
ETB 180.253457
FJD 2.574679
FKP 0.863433
GBP 0.861405
GEL 2.999465
GGP 0.863433
GHS 12.746587
GIP 0.863433
GMD 82.364658
GNF 9930.989042
GTQ 8.646261
GYD 237.121874
HKD 8.907746
HNL 30.35879
HRK 7.533145
HTG 148.124464
HUF 354.06242
IDR 20476.060681
ILS 3.389111
IMP 0.863433
INR 107.255213
IQD 1488.383059
IRR 1562290.935301
ISK 143.997977
JEP 0.863433
JMD 178.622739
JOD 0.805514
JPY 183.844277
KES 147.167707
KGS 99.358247
KHR 4556.042688
KMF 493.097649
KPW 1022.553644
KRW 1756.627155
KWD 0.351815
KYD 0.944449
KZT 549.268583
LAK 25069.596973
LBP 101492.423899
LKR 381.944839
LRD 206.260402
LSL 18.848876
LTL 3.354815
LVL 0.687258
LYD 7.277995
MAD 10.697607
MDL 20.116607
MGA 4831.642929
MKD 61.621185
MMK 2385.4291
MNT 4071.833326
MOP 9.152312
MRU 45.526079
MUR 54.75243
MVR 17.553721
MWK 1973.527785
MXN 19.891724
MYR 4.680112
MZN 72.597053
NAD 18.849181
NGN 1562.427472
NIO 41.594972
NOK 11.221204
NPR 171.083805
NZD 2.013504
OMR 0.436864
PAB 1.133318
PEN 3.887952
PGK 4.973595
PHP 69.722796
PKR 315.39418
PLN 4.2841
PYG 6925.382454
QAR 4.141347
RON 5.232743
RSD 117.37322
RUB 85.441876
RWF 1665.460754
SAR 4.266307
SBD 9.148389
SCR 15.044871
SDG 681.702207
SEK 11.070417
SGD 1.473589
SHP 0.848266
SLE 28.174058
SLL 23824.926728
SOS 647.684732
SRD 42.401842
STD 23516.430757
STN 24.473404
SVC 9.916961
SYP 125.583284
SZL 18.765698
THB 37.928752
TJS 10.477437
TMT 3.976596
TND 3.337505
TOP 2.735626
TRY 52.962799
TTD 7.697432
TWD 36.197931
TZS 2975.557203
UAH 50.960498
UGX 4193.258468
USD 1.13617
UYU 45.468786
UZS 13613.845773
VES 705.281089
VND 29904.001617
VUV 136.136759
WST 3.156026
XAF 655.218994
XAG 0.019775
XAU 0.000283
XCD 3.070557
XCG 2.042526
XDR 0.814896
XOF 655.227635
XPF 119.331742
YER 271.118684
ZAR 18.750127
ZMK 10226.89091
ZMW 20.456229
ZWL 365.846365
  • CMSC

    -0.0190

    22.046

    -0.09%

  • RBGPF

    0.0000

    61.3

    0%

  • RIO

    1.0800

    95.11

    +1.14%

  • NGG

    0.5900

    83.42

    +0.71%

  • CMSD

    -0.0900

    21.93

    -0.41%

  • VOD

    0.0500

    13.86

    +0.36%

  • BCE

    0.0000

    23.2

    0%

  • GSK

    0.8000

    51.89

    +1.54%

  • RYCEF

    -0.1600

    18

    -0.89%

  • RELX

    -0.2300

    30.92

    -0.74%

  • BCC

    2.1000

    79.76

    +2.63%

  • JRI

    0.0100

    12.58

    +0.08%

  • AZN

    2.6600

    185.68

    +1.43%

  • BTI

    1.0900

    62.48

    +1.74%

  • BP

    -0.1400

    37.72

    -0.37%


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.