Japan's first female premier Takaichi pledges aggressive fiscal stimulus

Japan's newly appointed Prime Minister Sanae Takaichi has announced plans for aggressive fiscal stimulus measures to bolster economic growth during her first policy address to parliament on Friday. The landmark speech by Japan's first female prime minister outlined her administration's economic vision for addressing global uncertainty and persistent inflation pressures facing the world's fourth-largest economy.

Accelerated Defense Spending

In a significant security policy shift, Takaichi revealed that Japan will accelerate its defense spending timeline, reaching the NATO benchmark of 2% of GDP two years ahead of the previously scheduled target. The accelerated timetable represents a substantial increase from the current fiscal year's defense allocation of approximately $70 billion, which constitutes 1.8% of Japan's gross domestic product.

Parliamentary Reception and Political Context

The prime minister's policy address encountered a divided parliamentary response, with opposition legislators repeatedly interrupting her remarks while ruling party members and political supporters applauded her economic agenda. The contentious atmosphere reflects Japan's polarized political landscape as Takaichi begins her premiership following Tuesday's historic election that broke gender barriers in the country's highest office.

Economic and Strategic Positioning

Takaichi's economic program aims to position Japan for stronger growth amid challenging global economic conditions, though specific policy details and funding mechanisms remain to be elaborated. The combination of expanded fiscal measures and accelerated defense spending signals the new administration's dual focus on economic revitalization and enhanced security capabilities in a region facing increasing geopolitical tensions.