Japan's new PM Takaichi promises 2% of GDP for defense
What's the story
Japanese Prime Minister Sanae Takaichi has announced plans to increase the country's defense spending to 2% of its gross domestic product (GDP) in her maiden policy speech. The hike would be implemented by the fiscal year ending March 2026. Takaichi, who is known for her hawkish stance on China, emphasized the need to strengthen security partnerships with allies such as the United States and South Korea.
Strategic partnerships
Takaichi addresses military developments in neighboring countries
In her speech, Takaichi referred to military developments in China, North Korea, and Russia as "serious concerns." She also hinted at working closely with partners to tackle the Chinese challenge in the region. Takaichi further said that Japan "will strengthen cooperation with like-minded nations which share fundamental values and with countries of the Global South."
Strategy update
Update national security documents by end of 2026
Takaichi also announced plans to update three national security documents by the end of 2026. These include security strategy, defense strategy, and a defense buildup program. By increasing defense spending, Japan will join Western nations that have vowed to raise their defense spending to 2% of GDP by the end of the current fiscal year.
Economic focus
Prime minister lays out economic policies
In addition to defense spending, Takaichi also laid out her economic policies in the speech. According to Nikkei Asia, Takaichi announced that the basic income deduction will be increased to 1.6 million yen ($10,500) this year. Takaichi also stated that a tax exemption system for low-income households would be implemented, as well as legislation to repeal a temporary petrol tax.
Challenges ahead
Challenges ahead for Takaichi's government
While Takaichi gained enough votes to become PM, her coalition will still have to shop around for opposition backing to pass crucial bills. Takaichi, a supporter of slain PM and Donald Trump confidant Shinzo Abe, ended the ruling Liberal Democratic Party's 26-year coalition with the pacifist Komeito and replaced it with the right-wing Japan Innovation Party, also known as Ishin. Ishin, like her, wants to revise Japan's pacifist constitution, boost the military to deter China, and ease arms export restrictions.