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Japan Leadership Race Starts

Reuters
Sep 13, 2007

Finance Minister Fukushiro Nukaga who has announced his intention to enter the race for the PM's position. (Koichi Kamoshida/Getty Images)
Finance Minister Fukushiro Nukaga who has announced his intention to enter the race for the PM's position. (Koichi Kamoshida/Getty Images)


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TOKYO—Japan's finance minister became the first to launch a bid to lead the country on Thursday as the ruling party scrambled to avoid a policy vacuum after Prime Minister Shinzo Abe's shock resignation.

Abe's year in office has been marked by scandals involving cabinet members and a disastrous election defeat in July. But the conservative leader's decision to step down now sparked criticism and concern that the ensuing confusion could stall vital decisions on policies such as tax and fiscal reform.

Finance Minister Fukushiro Nukaga, 63, said he would enter the race for president of the ruling Liberal Democratic Party (LDP) and hence premier.

"I think it is a politician's responsibility and duty to face this difficult time with determination. I want to take the lead," he told party members.

A former defence and economics minister, Nukaga has twice had to step down over scandals but was one of several veterans tapped by Abe for a revamped cabinet just last month.

Abe had said he was quitting over a stalemate in parliament but officials said health problems were also a factor. His doctor told a news conference he was suffering from a gastrointestinal disorder and would likely be hospitalised for three or four days.

LDP Secretary-General Taro Aso, a close Abe ally, is seen by many as frontrunner to take over, but any successor will still face a deadlock in parliament.

"It is questionable whether just replacing the prime minister will break through the political confusion," the Nikkei business daily said in an editorial. "No matter who is the next prime minister, managing the administration will be extremely tough."

Financial markets were stable, though concerns about political uncertainty remained.

Deadlock looms

The main opposition Democratic Party, which with small allies won control of the upper house in the July election, can delay legislation, including a bill to extend a Japanese naval mission in support of U.S. military operations in Afghanistan. A law mandating the mission expires on Nov. 1.

Other diplomacy could also be affected. Abe, an advocate of a bolder foreign policy who thawed chilly ties with Beijing, had been expected to visit China this year to keep up that momentum.

Aso may have the edge in the leadership race, but his closeness to the outgoing leader and a record of gaffes leaves doubts as to whether his victory is assured, analysts said.

Other names floated include former finance minister Sadakazu Tanigaki, former chief cabinet secretary Yasuo Fukuda, and party veteran Taku Yamasaki.

Media said Abe's maverick predecessor Junichiro Koizumi had flatly rejected a request to run again.

The LDP is considering choosing a new leader on Sept. 19 or 25, with many saying the party should not make undue haste.

"To turn this adversity into opportunity, we should seek candidates from a wider spectrum. This is a golden opportunity to convey the messages of candidates to the party members as well as the people," said former party secretary-general Tsutomu Takebe, who proposed holding the party poll on or after Sept. 25.

Snap election calls

The new leader is likely to head the LDP going into the next general election for parliament's lower house.

While the opposition has control of the upper house, the LDP and its junior partner have a large majority in the lower house, which picks the prime minister.

"Whoever becomes the next prime minister, he should be temporary and the public's confidence should be gauged with ... a general election," Yukio Hatoyama, the Democrats' No.2 executive, told reporters.

No poll for the lower house need be held until 2009, but some analysts say deadlock in parliament resulting from the opposition's grip on the upper house could trigger one sooner.

Abe, at 52 Japan's youngest prime minister since World War Two, took office last September with approval ratings of around 60 percent, but his support has dwindled due to lost pension records and a series of scandals that cost him five cabinet ministers, including one who committed suicide.


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