On this sunday Shigeru Ishibaʼs government faces a tough test as Japanese citizens cast their votes in a nation-wide election. The ruling Liberal Democratic Party (LDP) and its partner Komeito might loose their control over parliament due to recent fund-raising issues and price increases
The polls show that Ishiba (who got his job just last month) could see his coalition drop below the needed 233-seat mark: experts think LDP might give up 50 seats while Komeito could end up with less than 30. The Constitutional Democratic Party might get up-to 140 seats which would be their best result since they beat LDP about 15 years ago
The economic effects of this vote are getting markets nervous; the Nikkei index dropped 2‚7% last week. The Bank of Japans plans to raise rates could face problems if new coalition partners (like Innovation Party or DPP) join the government - they dont support such moves
Main voter worries include:
* Rising costs of everyday items
* Need for tax cuts
* Wage increases
* Political funding rules
The ruling partyʼs handling of donation problems isnt helping their case - Ishiba says its all done but might let some problem politicians back in government positions. Any new coalition deals would need careful talks about money issues; DPP wants to cut sales tax in half while Innovation Party focuses on stricter rules for political money (which could make things harder for LDP)