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Abe Faction To Dissolve Itself In Major Shakeup Of Japanese Politics
The Sankei Shimbun is reporting that the largest and most powerful faction of the governing Liberal Democratic Party (LDP) - the Abe faction, or 'Seiwa Policy Research Group' - will dissolve itself amid the continued fallout of a funding scandal. With PM Fumio Kishida and former LDP Secretary General Toshihiro Nikai also announcing the dissolutionof their factions on 19 Jan, this leaves a significant number of LDP lawmakers without factional homes.
- Given the LDP's strong hold over Japanese politics (having governed for all but six years since 1956), the various factions that sit (or sat) within the party perform important role. This includes determining party leadership and policy direction. Leaders have to balance factions' preferences when creating policy, while intra-party negotiations between the factions is critical at times of coalition building and during LDP leadership contests.
- As a result of the importance of LDP factions, the dissolution of a number at the same time risks a period of notable instability within the party, as individuals and unaffiliated groups of lawmakers jostle for influence.
- The re-making of political factions is likely to take some time. PM Fumio Kishida remains in a vulnerable position given the poor approval ratings for he and his Cabinet. With an internal LDP leadership contest due in the autumn, the re-formation or creation of new factions is likely to have a notable impact on Kishida's ability to retain office.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.