Berliner Boersenzeitung - A new vision for Japan

EUR -
AED 4.231915
AFN 75.478945
ALL 92.969244
AMD 422.084219
ANG 2.062382
AOA 1056.683283
ARS 1719.831529
AUD 1.63381
AWG 2.074187
AZN 1.986632
BAM 1.954775
BBD 2.321983
BDT 141.97557
BGN 1.956081
BHD 0.434774
BIF 3446.608087
BMD 1.152326
BND 1.475133
BOB 13.597871
BRL 5.988406
BSD 1.152896
BTN 109.845844
BWP 15.519796
BYN 3.44324
BYR 22585.587613
BZD 2.318684
CAD 1.607201
CDF 2621.541304
CHF 0.937809
CLF 0.026771
CLP 1053.629371
CNY 7.771113
CNH 7.77267
COP 3628.178755
CRC 523.727711
CUC 1.152326
CUP 30.536636
CVE 110.204835
CZK 24.234623
DJF 205.302371
DKK 7.476003
DOP 67.315003
DZD 153.136343
EGP 57.869301
ERN 17.284888
ETB 186.485445
FJD 2.552287
FKP 0.852777
GBP 0.854277
GEL 3.007639
GGP 0.852777
GHS 13.200023
GIP 0.852777
GMD 85.272087
GNF 10127.734528
GTQ 8.796503
GYD 241.242483
HKD 9.042129
HNL 30.901934
HRK 7.535405
HTG 150.804213
HUF 364.354501
IDR 20603.587067
ILS 3.432893
IMP 0.852777
INR 109.944508
IQD 1510.301678
IRR 1584015.988505
ISK 141.977919
JEP 0.852777
JMD 182.513526
JOD 0.816962
JPY 183.707216
KES 148.949888
KGS 100.770608
KHR 4668.653768
KMF 493.196009
KPW 1037.093456
KRW 1631.19218
KWD 0.356288
KYD 0.960792
KZT 536.806253
LAK 26012.250333
LBP 103242.019778
LKR 385.376296
LRD 209.249394
LSL 18.628577
LTL 3.402519
LVL 0.69703
LYD 7.353145
MAD 10.70864
MDL 19.985783
MGA 4961.377494
MKD 61.492763
MMK 2419.811575
MNT 4144.530656
MOP 9.318474
MRU 46.081042
MUR 54.539713
MVR 17.814729
MWK 1999.143284
MXN 19.657954
MYR 4.711283
MZN 73.631224
NAD 18.628253
NGN 1570.239571
NIO 42.427941
NOK 10.948652
NPR 175.751626
NZD 1.973208
OMR 0.443073
PAB 1.152896
PEN 3.896324
PGK 5.099349
PHP 70.61688
PKR 320.235171
PLN 4.30659
PYG 6879.393511
QAR 4.203251
RON 5.236192
RSD 117.319073
RUB 95.527847
RWF 1698.202357
SAR 4.342555
SBD 9.29344
SCR 15.888464
SDG 691.976926
SEK 11.042047
SGD 1.475386
SHP 0.853719
SLE 28.289692
SLL 24163.709626
SOS 658.851741
SRD 43.40797
STD 23850.819565
STN 24.487269
SVC 10.087668
SYP 14982.541422
SZL 18.60984
THB 38.096767
TJS 10.664163
TMT 4.033141
TND 3.385269
TOP 2.774524
TRY 55.047529
TTD 7.818867
TWD 37.076426
TZS 3053.661295
UAH 51.51437
UGX 4276.739383
USD 1.152326
UYU 46.405471
UZS 13785.653303
VES 881.997779
VND 30014.056518
VUV 136.48471
WST 3.145838
XAF 655.610455
XAG 0.017589
XAU 0.000261
XCD 3.114219
XCG 2.077802
XDR 0.815369
XOF 655.613298
XPF 119.331742
YER 273.273944
ZAR 18.604278
ZMK 10372.318315
ZMW 21.697625
ZWL 371.048469
  • CMSC

    0.0100

    21.45

    +0.05%

  • NGG

    0.4100

    80.68

    +0.51%

  • RIO

    0.2300

    101.22

    +0.23%

  • BTI

    -0.9700

    55.84

    -1.74%

  • GSK

    -0.6000

    50.3

    -1.19%

  • BCE

    -0.2400

    23.13

    -1.04%

  • RBGPF

    0.0000

    72.16

    0%

  • RYCEF

    0.5500

    21.1

    +2.61%

  • AZN

    -0.2500

    158.5

    -0.16%

  • BP

    -0.2300

    42.93

    -0.54%

  • JRI

    -0.0200

    12.71

    -0.16%

  • VOD

    0.1900

    16.09

    +1.18%

  • CMSD

    -0.0400

    21.59

    -0.19%

  • BCC

    -1.2800

    84.25

    -1.52%

  • RELX

    -0.8200

    34.55

    -2.37%


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.