LDP and JIP Reach Coalition Agreement

The LDP and reformist Japan Innovation Party have reached a basic coalition agreement that would pave the way for LDP leader Sanae Takaichi to become Japan’s first female prime minister, with party leaders set to sign the deal and JIP lawmakers due to back her in the parliamentary vote. The JIP does not plan to take ministerial posts initially, which could leave the incoming government fragile after Komeito’s 26‑year exit from the coalition. To secure JIP support the LDP agreed to pursue JIP priorities including banning corporate/organizational political donations and easing or exempting consumption tax on food, while the JIP is pushing broader reforms such as cutting Diet seats, promoting a “secondary capital,” restarting nuclear plants and adopting a tougher defence posture. Even with the pact the two parties remain about two seats short of a lower‑house majority, so Takaichi’s confirmation when an extraordinary Diet meets around Oct. 21 may depend on additional MPs or runoffs. Takaichi has signalled support for higher spending, tax cuts and constitutional revision, and her prospective premiership carries market and geopolitical implications ahead of a planned visit by U.S. President Donald Trump.