Komeito Ends 26-Year Alliance with LDP
Japan’s long-standing ruling coalition has entered a crisis after the Komeito party announced it would end its 26-year partnership with the Liberal Democratic Party (LDP). The split comes as newly elected LDP leader Sanae Takaichi, who is set to become Japan’s first female prime minister, faces a critical parliamentary vote to confirm her position.
Komeito leader Tetsuo Saito revealed on Friday that the decision followed an “inadequate explanation” from the LDP regarding a political funding scandal that has rocked the ruling party. Saito confirmed that Komeito would not back Takaichi in the upcoming parliamentary vote, effectively stripping her of a secure majority.
Takaichi Calls Coalition Collapse “Extremely Regrettable”
Reacting to the announcement, Takaichi described the end of the coalition as “extremely regrettable,” noting the two parties’ long history of cooperation.
“We have worked together for more than two decades, even during difficult times in opposition. It’s truly unfortunate that our partnership has come to such an end,” she said.
Now, the LDP faces a 37-seat shortfall in the lower house, leaving Takaichi scrambling to form new alliances. Without Komeito’s support, she will need the backing of at least two smaller parties to pass key legislation and stabilize her government.
Political Future of Takaichi in Jeopardy
Opposition parties are already preparing to nominate their own candidates when parliament convenes later this month to elect Japan’s next prime minister. A simple majority will secure victory in the first round, while the top two candidates will proceed to a runoff if no one meets the threshold.
The LDP also lacks a majority in the upper house, compounding Takaichi’s challenges. Despite being Japan’s dominant party since World War II, the LDP now faces an uncertain future, with its internal divisions and public distrust threatening its grip on power.
Market Reactions and Economic Implications
Takaichi’s leadership initially inspired market optimism, thanks to her strong backing of Abenomics, the economic policy framework introduced by former Prime Minister Shinzo Abe. Her commitment to monetary easing and fiscal stimulus had briefly lifted Japanese stocks and weakened the yen.
However, analysts warn that Komeito’s exit could reverse those gains, leading to renewed market volatility. Investors are already bracing for what some call an “unwinding of the Takaichi trade,” as political uncertainty clouds Japan’s economic outlook.
A Critical Turning Point for Japan
The coalition’s collapse marks one of the most dramatic shifts in Japanese politics in decades. If Takaichi fails to secure parliamentary approval, Japan could be headed for political gridlock or even early elections—scenarios that would unsettle markets and challenge Tokyo’s global standing.
For now, all eyes are on how the LDP will navigate this political storm—whether it can rebuild alliances or face a historic loss of power after decades of dominance.