'Will resign immediately': Japan PM Sanae Takaichi if ruling coalition loses majority in upcoming general election

Japanese Prime Minister Sanae Takaichi said on Monday (January 26) that she would step down immediately if her ruling coalition fails to secure a majority in the House of Representatives in the upcoming general election. Speaking during a televised debate among party leaders ahead of the official campaign period, Takaichi said the snap election was called to seek voter approval for a new governing alliance between the Liberal Democratic Party (LDP) and the Japan Innovation Party (JIP).

She described the coalition as a significant political realignment and said she was prepared to accept the electorate’s verdict. The election campaign officially begins Tuesday, with voting scheduled for February 8. Takaichi also signaled plans to introduce legislation to temporarily eliminate the consumption tax on food items, potentially during an extraordinary session of the Diet later this year. She said the measure is aimed at easing the burden on households grappling with rising prices. Meanwhile, Yoshihiko Noda, co-leader of the newly formed Centrist Reform Alliance, which brings together the Constitutional Democratic Party of Japan and Komeito, said the opposition intends to prioritize the needs of residents and push for political change.

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Ahead of polls, Takaichi vows to push through tax cut

Takaichi has further pledged to enact the proposed tax cut within the next fiscal year, if circumstances allow. She dissolved the lower house last week, saying she wanted a clear public mandate for her economic agenda. While analysts believe the LDP is well-positioned to perform strongly in the election, the party lost its parliamentary majority in 2024 following a series of political funding scandals. Even with a solid victory, Takaichi would still need support from opposition parties to pass legislation requiring approval from the upper house.

Known for her support of proactive fiscal policy, Takaichi has championed measures to counter the rising cost of living. However, her proposals, including a possible two-year suspension of the food tax, have unsettled financial markets and raised concerns over Japan’s already heavy debt load. Those worries have contributed to a weakening yen and a sell-off in government bonds. The softer currency risks increasing import costs, complicating efforts to control inflation.

Takaichi said the government stands ready to respond to speculative market activity while maintaining a commitment to fiscal discipline. Investors remain alert to potential currency intervention, especially after recent signals suggesting US authorities may now tolerate such action. Reiterating her position, Takaichi said she would relinquish power if her coalition falls short in the election, adding that she intends to campaign with determination and optimism until voters cast their ballots.