Society | Apr 09

Behind the scenes, an LDP power struggle over record-size economic package

As the Cabinet approved on Tuesday a record-breaking ¥108 trillion emergency stimulus package in response to COVID-19 ravaging the nation’s economy, the deep-seated rivalries it has amplified within the ruling Liberal Democratic Party were hidden from view.

The fundamental elements of the government’s plan come from proposals made within the party, spearheaded by the LDP’s policy research council chairman Fumio Kishida, who is also seen as a viable successor to Prime Minister Shinzo Abe.

But the lead-up to the massive proposal, put forward on March 31, was shaped by behind-the-scenes political maneuvers, amid an internal struggle between LDP forces backing Kishida and those plotting to deflate his rising influence. Some members were still showing displeasure over the proposal at a party meeting this week.

As Kishida seeks to seize momentum, and gain wider appeal by demonstrating leadership abilities and making media appearances, multiple hurdles have stood in his way as was demonstrated in the compilation of the party’s coronavirus response.

The difference between the two sides manifested itself most significantly in the proposal’s centerpiece: the cash handout. It was initially discussed on a much larger scale, to total around ¥12 trillion — or ¥100,000 per person.


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