TOKYO // Japan's ruling party faced the prospect of political gridlock today as bad losses in weekend parliamentary elections undermine its attempts to reduce the ballooning budget deficit and revive growth in the world's second-largest economy.
Half of the 242 seats in the upper house of parliament were up for grabs on Sunday. The ruling Democratic Party of Japan won only 44 seats - far below its stated goal of 54 - while opposition parties made major gains.
That leaves the Democrats and their tiny coalition partner with 110 seats in the chamber, well below their majority of 122 before the vote. The conservative Liberal Democratic Party won 51 seats, bringing its total to 84.
Prime minister Naoto Kan's party will retain power because it still controls the more powerful lower house. But the results are a dramatic contrast to the Democrats' landslide victory just a year ago, when they seized control of parliament and ended the rival Liberal Democrats nearly unbroken 55-year rule.
The Democrats did not appear to be reaching out to other parties to join their coalition today - and none showed an interest in coming on board. Mr Kan said early today that the party might seek the cooperation of other parties on a policy-by-policy basis.
Without a majority in the upper house, the Democrats will find it difficult to move ahead on their agenda, which includes cutting wasteful spending, making government more open and creating a solid social security system as the population rapidly ages and shrinks.
In office just a month, Mr Kan warned that Japan's finances could face a Greece-like meltdown if it doesn't cut back on soaring debt - twice the country's GDP - and suggested raising the sales tax as a solution.
But voters, already suffering from the economic downturn, rejected that idea.
"The sudden announcement increased voter distrust toward Mr Kan. No one is sure what he is going to come out with, and the feeling is that he may suddenly renege on past promises," said Koichi Nakano, a political science professor at Sophia University in Tokyo.
Mr Kan acknowledged defeat early this morning, saying he failed to fully explain his proposal to raise the sales tax from 5 per cent to as much as 10 per cent in coming years.
While many voters say a tax hike may be inevitable, they want a more detailed discussion first.
"If we look at the deficit, it's reasonable to raise taxes to 10 per cent, because we really have to revitalize the economy," said Sadako Fukano, 71, a housewife in Tokyo. "However, the prime minister's explanation as to where he's going to spend the tax money wasn't enough."
While Japan's public debt is serious, analysts say any comparison to Greece is an exaggeration, because most government bonds are held by domestic investors, who are unlikely to dump them.
Sunday's results also underlined deep public disappointment over how the Democrats had reneged on their campaign promises. Chief among them was former prime minister Yukio Hatoyama's failure to move a US Marine base off the island of Okinawa, which along with a funding scandal chased him from office last month.
Mr Kan, a former finance minister with roots in grass-roots activism, enjoyed support ratings of more than 60 per cent when he took office in early June.
But that plunged after he proposed the tax hike. As the elections neared, Kan backtracked and promised there would be no tax increase until after the next lower house election, which must be held within three years.
The swing in public opinion has emboldened the opposition and raises the specter of gridlock on key legislation such as the budget. Smaller parties quickly distanced themselves from the ruling Democrats today.
"Even if there was an offer to form a coalition, we wouldn't do so," said lawmaker Yoshimi Watanabe, who heads the new Your Party, which won 10 seats.
Japan is deeply invested in worldwide markets, and slow growth here can have a significant impact on the global economy. Mr Kan said his experience as finance minister made him keenly aware of the need to keep Japan's economic engine running and not seek short-term fixes.
But now, Mr Kan may struggle to achieve his policy goals.
"Because of political compromises ... 'bold' measures of either fiscal restoration or fiscal stimulus are unlikely to be taken, and the government measures are likely to be neutral or small for the economy," Takuji Aida, an economist with UBS in Tokyo said in a note to clients.
Mr Kan said he planned to keep his job and does not plan a major shake-up of the cabinet, though he must defend his post in party polls in September. He vowed to press on with economic reforms even if they are not easy to stomach.
"I sincerely and humbly accept this result," he said. "I will continue to push for responsible government."
* AP
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Tomato and walnut salad
A lesson in simple, seasonal eating. Wedges of tomato, chunks of cucumber, thinly sliced red onion, coriander or parsley leaves, and perhaps some fresh dill are drizzled with a crushed walnut and garlic dressing. Do consider yourself warned: if you eat this salad in Georgia during the summer months, the tomatoes will be so ripe and flavourful that every tomato you eat from that day forth will taste lacklustre in comparison.
Badrijani nigvzit
A delicious vegetarian snack or starter. It consists of thinly sliced, fried then cooled aubergine smothered with a thick and creamy walnut sauce and folded or rolled. Take note, even though it seems like you should be able to pick these morsels up with your hands, they’re not as durable as they look. A knife and fork is the way to go.
Pkhali
This healthy little dish (a nice antidote to the khachapuri) is usually made with steamed then chopped cabbage, spinach, beetroot or green beans, combined with walnuts, garlic and herbs to make a vegetable pâté or paste. The mix is then often formed into rounds, chilled in the fridge and topped with pomegranate seeds before being served.
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Global state-owned investor ranking by size
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Managing the separation process
- Choose your nursery carefully in the first place
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- Be patient. Your child might love it one day and hate it the next
- Stick at it. Don’t give up after the first day or week. It takes time for children to settle into a new routine.And, finally, don’t feel guilty.
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UAE currency: the story behind the money in your pockets
Types of fraud
Phishing: Fraudsters send an unsolicited email that appears to be from a financial institution or online retailer. The hoax email requests that you provide sensitive information, often by clicking on to a link leading to a fake website.
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* Nada El Sawy
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more from Janine di Giovanni
How to come clean about financial infidelity
- Be honest and transparent: It is always better to own up than be found out. Tell your partner everything they want to know. Show remorse. Inform them of the extent of the situation so they know what they are dealing with.
- Work on yourself: Be honest with yourself and your partner and figure out why you did it. Don’t be ashamed to ask for professional help.
- Give it time: Like any breach of trust, it requires time to rebuild. So be consistent, communicate often and be patient with your partner and yourself.
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Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
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Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
How the bonus system works
The two riders are among several riders in the UAE to receive the top payment of £10,000 under the Thank You Fund of £16 million (Dh80m), which was announced in conjunction with Deliveroo's £8 billion (Dh40bn) stock market listing earlier this year.
The £10,000 (Dh50,000) payment is made to those riders who have completed the highest number of orders in each market.
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Company Profile
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Married Malala
Malala Yousafzai is enjoying married life, her father said.
The 24-year-old married Pakistan cricket executive Asser Malik last year in a small ceremony in the UK.
Ziauddin Yousafzai told The National his daughter was ‘very happy’ with her husband.
Gothia Cup 2025
4,872 matches
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116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
