Wednesday, June 9, 2010

Cautious welcome for Japan's new government

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Former Democratic Party of Japan's secretary general Ichiro Ozawa

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Japan's new Prime Minister Naoto Kan (R) receives a certificate from Emperor Akihito (L)

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Japan's new Prime Minister Naoto Kan (front, C) and his cabinet

Japanese media gave a guarded welcome Wednesday to Prime Minister Naoto Kan's new government, which took office weeks before key elections pledging to reinvigorate the world's second-largest economy.

A sense of cautious optimism greeted Japan's new centre-left leadership a day after Kan unveiled his cabinet and vowed to create a "vigorous country", restore its public finances and mend strained US relations.

The media has until now praised the 63-year-old's humble beginnings as the "son of a salaryman" and drawn a contrast with the privileged background of his predecessor Yukio Hatoyama, the millionaire grandson of a prime minister.

But the press warned Wednesday that Japan's fifth premier in four years needed to match words with action and restore credibility to Japan's recent merry-go-round of governance that some fear has eroded its standing.

"We hope that the prime minister will show, through his actions, his resolve to break away from 'escapism politics' of avoiding decisions on serious issues," the Nikkei business daily said in its editorial.



While the elevation of Kan to the top post has created a surge in popularity for the Democratic Party of Japan (DPJ), editorials warned that the government now needed to issue detailed policy responses to Japan's challenges.

"Unless he steadily produces good results as a prime minister, the public's support will not last for a long time," the top-selling Yomiuri Shimbun said.

"What is desired is a drastic shift of policies and political strategies," the Yomiuri said, reflecting the perception that Hatoyama's previous administration offered a dithering lack of leadership.

In a testy editorial, the conservative Sankei Shimbun urged Kan to draft "persuasive" plans to bring fiscal health to the debt-ridden government coffers.

There are fears that Japan faces a potential fiscal timebomb with public debt ballooning towards 200 percent of gross domestic product, with the risk of it detonating illustrated by Europe's current fiscal crisis.

Kan has said putting Japan back on a path to fiscal health is his biggest challenge, a change of tone from the previous administration, and has appointed fiscal hawk Yoshihiko Noda as the steward of Asia's biggest economy.

Noda has hinted that the new administration may have to roll back spending pledges made by Hatoyama, while Kan has advocated raising consumption tax and capping the issuance of government bonds next year.

"They must review policies with high fiscal burdens and prioritise. They must honestly apologise to voters for promises they cannot keep and explain their plans for the future," the influential Asahi Shimbun said.

Kan must "withdraw the pork-barrel spending in the campaign promises and clearly show the time and the size of tax increase, with the consumption tax at its center," the Sankei said.

The new leader has signalled his desire to rebuild ties with Washington damaged by a row over an American airbase that led to the tearful resignation of his predecessor last week after less than nine months in office.

The post-World War II Japan-US security alliance is "the cornerstone" of Tokyo's diplomacy, Kan said Tuesday, days after speaking with President Barack Obama.

Hatoyama stepped down after reneging on an election pledge to move the unpopular Futenma airbase off Okinawa island, giving in to Washington's demands but enraging locals and splitting his ruling coalition.

Newspaper editorials also approved of Kan's move to reshuffle the party leadership to sideline DPJ heavyweight Ichiro Ozawa, dubbed the "Shadow Shogun", whose funding scandals have damaged the party's credibility.






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