The newly elected president of the ruling Liberal Democratic Party, Shigeru Ishiba, has expressed his intention to continue the economic policies initiated by Prime Minister Fumio Kishida. Ishiba’s campaign platform includes addressing high prices and labor market reforms, which have also been central focuses of the Kishida administration. By emphasizing continuity with Kishida’s approach, Ishiba aims to present a sense of stability. However, it remains to be seen how he will inject his own unique direction going forward.
In a press conference held on Friday following the LDP presidential election, Ishiba emphasized the need to solidify President Kishida’s efforts in overcoming deflation. He also expressed his desire to further accelerate the “new form of capitalism” advocated by the Prime Minister.
Regarding measures against rising prices, Ishiba acknowledged that there may be a time lag before wage increases surpass price rises. He stated that he wants to carefully assess which policies will be effective for food and energy but did not clarify whether he would extend current subsidies for electricity and gas costs.
While many of Ishiba’s labor market reforms are similar to those proposed by the Kishida administration, one area where a distinctive approach could be seen is his proposal for a more dynamic corporate tax system. He mentioned that there is still room to raise corporate taxes but acknowledged that with an upcoming general election, it will be challenging to implement such measures.
Shigeru Ishiba intends to continue with Prime Minister Fumio Kishida’s economic policies while also injecting his own unique direction. His focus on addressing high prices and implementing labor market reforms aligns with previous government priorities. However, specific details regarding policy implementation and potential changes remain unclear at this stage.
