Sanae Takaichi, an important figure in the Democratic Liberal Party (PLD), has won the internal training elections that has dominated Japanese political life for almost 70 years. Therefore, he is preparing to become the first woman to direct the country. Conservative assumed at the social level, however, is distinguished by a more interventionist approach in economic matters.
Sanae Takaichi has a priority: relaunching the budget dynamics of Japan, with an assumed budget. “The global trend is moving away from excessive budget austerity to adopt a responsible and proactive policy in which the public and private sectors collaborate to increase investments and solve social problems,” said the future chef of the government.
Specifically, its program results in an increase in public spending, specific tax cuts and inexhaustible support for a very complacent monetary policy. Sanae Takaichi believes that the Bank of Japan must follow the line set by the Executive.
This desire for recovery could delay the increase in early interest rates this month. The objective: stimulate growth, reflect inflation considered too close to 3 % and, above all, transform inflation extracted by costs into inflation carried by demand.
The return of “abenomics”?
This strategy remembers “Abenomics” by Shinzo Abe, of which Takaichi was a close ally. But the perverse effects of this policy, a bass and increase in the cost of living, have contributed to erode public trust towards the PLD and to feed a certain political instability. At the moment, markets seem to welcome themselves upon arrival: Japanese actions have reached new heights at the opening of this Monday morning.
Finally, at the diplomatic level, Sanae Takaichi shows a marked nationalism. It’s the slogan: “Japan is back!” In sight: China. The relations between Tokyo and Beijing have already been tense in recent months, and their explicit defense of Taiwan or his hard speech on historical issues should not appease them.
However, pragmatism could prevail: Japanese companies remain closely dependent on the Chinese market. Like Shinzo Abe, Takaichi could choose to defend political differences to preserve economic synergies and give new life to the Japanese economy.
Source: BFM TV
