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Free AccessUPDATE: Japan PM Abe Keeps Some Key Policymakers in Cabinet
--Updates With Official Announcement, Background
TOKYO (MNI) - Japanese Prime Minister Shinzo Abe on Thursday reappointed
some close allies in a cabinet reshuffle but also distribute ministerial posts
to various factions in the ruling party in a bid to refresh the image of his
scandal-plagued administration and cement his grip on power.
Among the key names, Deputy Prime Minister and Finance Minister Taro Aso,
76, will continue to support Abe, 61, in his efforts to overcome deflation and
raise the economy's low growth potential.
Abe also retained his key alley in the cabinet, Yoshihide Suga, 68, as
chief cabinet secretary. As the top government spokesman, Suga has been
defending Abe's economic, legislative and diplomatic policies.
Both Aso and Suga have been supporting Abe since the nationalist blue-blood
politician led his Liberal Democratic Party to a return to power in a landslide
win in late 2012 Lower House elections with the promise to "regain Japan" by
correcting the high yen, overcoming deflation and conducting more assertive
diplomacy.
Fumio Kishida, 60, who had held the post of foreign minister since Abe
returned to power until Thursday morning, moved to the LDP leadership team as
the chairman of the Policy Research Council.
"Abenomics has helped create jobs and raise wages but we still need to seek
a virtuous circle of economic growth and wealth distribution," Kishida told
reporters Thursday as he assumed the senior party post.
By pursuing Abe's reflationary economic policy mix -- aggressive monetary
easing, increased fiscal spending and structural reforms -- the government will
tackle income inequality and sluggish consumption amid rising corporate profits
and a modest economic recovery, he said.
Kishida was replaced by Taro Kono, 54, a liberal lawmaker from a political
family. Kono served as administrative reform minister from 2015 to 2016.
Initially Abe wanted to keep Kishida, a potential rival for the top party
position, and thus premiership, within the cabinet to maintain his loyalty but
Kishida wanted to gain more experience in ruling party policymaking in
preparation for a future bid for prime minister, press reports said.
In addition to diplomacy, Kishida temporarily served as defense minister as
Tomomi Inada, Abe's protege, resigned last Friday over a defense ministry
cover-up of daily activity logs on peacekeeping operations in South Sudan,
although she denied that she was directly involved.
Inada's resignation was widely expected as public support for Abe's cabinet
has continued to slide over its handling of political scandals, casting doubt
over his leadership ahead of parliamentary elections expected next year.
In another scandal, opposition parties have charged that Abe showed
favoritism to a close friend over plans to open a veterinary faculty in a
special deregulation zone as part of the government's growth strategy.
Prime Minister Abe's critics have said he has been too arrogant in
policymaking at the national level -- resorting to rushed voting on
controversial security bills -- on the back of the majority the governing
coalition holds in both chambers of parliament. But so far opposition forces in
the Diet have not been able to capitalize on the political scandals that
surround Abe.
Itsunori Onodera, 57, will lead the defense ministry amid a growing
security threat from North Korea's nuclear ambitions. He held the defense
portfolio for a few years from late 2012.
Abe also appointed Seiko Noda, 56, as minister of internal affairs and
communications who is also in charge of empowering women, in a bid to show he is
listening to various opinions in his party. She and Justice Minister Yoko
Kawakami, 64, are the only women in the new cabinet.
Within the LDP, some politicians are opposed to aggressive monetary easing,
which has so far failed to raise inflation to the Bank of Japan's target of 2%.
They have also called for a shift to stricter fiscal discipline, instead of
seeking to create demand through public projects.
Takeshi Noda, a former LDP tax panel chief who was removed by Abe, is
holding study sessions with other LDP lawmakers including Seiko Noda. They are
discussing an exit strategy for the BOJ's massive asset purchases and the need
to raise the sales tax to finance growing social security needs.
Ken Satio, 58, joined the cabinet as minister of agriculture, forestry and
fisheries. He belongs to an LDP faction led by Shigeru Ishiba, who plans to run
in the LDP leadership race in September next year to challenge Abe's bid for an
unprecedented third term as the party chief.
As part of its growth strategy, the government is trying to promote a
better work-life balance by slashing notoriously long working hours,
facilitating teleworking, realizing equal pay for equal work and reinforcing
day-care services.
In the previous cabinet reshuffle exactly a year ago, Katsunobu Kato, 61,
was charged with improving work-life balance as a cabinet minister. Now he will
also serve as the minister of health, labour and welfare and work on public
pension and medical service reforms.
Hiroshige Seko, 54, remains as minister of economy, trade and industry. In
the Abe government, he also served as deputy chief cabinet secretary.
Economic and Fiscal Policy Minister Nobuteru Ishihara, 60, was replaced by
Toshimitsu Mogi, 61, who was the head of the LDP Policy Research Council until
Thursday.
Among senior policymakers at the LDP, Toshihiro Nikai was reappointed as
secretary-general, as was Masahiko Komura as deputy party president.
--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com
[TOPICS: MAJDS$,M$A$$$,M$J$$$,MT$$$$,MGJ$$$]
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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.