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Japan Diary


November 18, 2012

In Japan election again but the financial cliff has been avoided

Japan will have a general election in one month. For the ruling Democratic Party now is the least damaging timing, because the opposition parties are not ready and because they may end up in pulling each other's leg and eating up the votes of the largest opposition party, the Liberal Democratic Party.

The absence of power for one month will not affect the economy so much, largely because the laws which enable the government to issue bonds have just been adopted in the Diet.
The government will now be able to implement this year's budget, avoiding a Japanese version of "financial cliff". In this sense Premier Noda has acted in a responsible way.

China may utilize this opportunity to enforce its claim on the Senkaku Islands, but Noda's reaction will be firm.

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