Abe Set to Boost Majority, Opening Way for Abenomics
Prime Minister Shinzo Abe is set to expand his coalition’s two-thirds parliamentary majority in a general election today, enabling him to push on with an economic program aimed at ridding the country of deflation.
Abe’s Liberal Democratic Party is likely to win about 300 of the 475 seats in the lower house, according to a media poll published Dec. 12, more than the 294 before he dissolved parliament last month. Combined with coalition partner, Komeito, he will retain a “super majority,” of more than 317 seats, allowing the lower chamber to over-ride upper house decisions.
About 104 million Japanese will be eligible to vote, with balloting beginning at 7 a.m. and ending at 8 p.m., when media will begin releasing projections of the result based on exit polls. Turnout was running below levels in the previous election as of 4 p.m., and is forecast to slip to a postwar low on a combination of voter apathy and heavy snow falling in parts of the country.
The 60-year-old premier has focused his campaign on the need to continue with economic policies that have weakened the yen and boosted stock prices since he took office in December 2012.
“I voted for the LDP because I support Abenomics,” Shiho Matsuno, a 37-year-old who works in finance in Tokyo, said outside a polling station in Saitama prefecture, north of the capital. “I expect the Abe administration to act aggressively for the economy and markets,” she said.
Economic Recession
The economy slipping into recession in the third quarter was the latest sign that many Japanese weren’t benefiting. A convincing win could give Abe four more years and an opportunity to make good on promises to restructure the economy that have been slow to materialize.
“It will certainly give him more time to do the structural reforms,” said Uri Dadush, senior associate at the Carnegie Endowment for International Peace. “Whether he will do the structural reforms is a different matter,” he said, adding that Abe already has a “massive majority.”
In his final campaign speech yesterday evening in Akihabara, a Tokyo district known for electronics stores, Abe said it was his mission to have small business owners feel the “warm winds of recovery.”
Voter Turnout
Voter turnout was down 5.8 percentage points as of 4 p.m. compared with the previous election, with 29.1 percent of ballots cast, according to data from the Ministry of Internal Affairs and Communications.
About 13.2 million ballots were cast as of yesterday in pre-election day voting, accounting for 12.6 percent of eligible voters and an increase of 9.3 percent from the comparable period ahead of the 2012 election, according to the ministry.
A victory would be a mandate for Abenomics and jump start reforms where they have slowed, Deputy Chief Cabinet Secretary Hiroshige Seko said in an interview on Dec. 5. Changes to agriculture, corporate governance and health care, as well as promised measures to make it easier for women to work, have some way to go and in many cases face resistance from lobby groups.
Abe announced he would dissolve parliament on Nov. 18, a day after data showed the world’s third-biggest economy had slipped into a recession after a sales-tax increase in April choked consumer demand and growth. He said the recession didn’t mean that the unprecedented monetary easing, spending and structural reforms of Abenomics were a failure and asked voters for a new mandate to complete his economic program.
Opposition Voter
Masae Asakawa, a 34-year-old Yokohama resident, said she voted for the Democratic Party of Japan after backing the LDP in the previous election.
“Abenomics is taken up every day in the media, but in real life, even in financial terms, I can’t see any positive change at all,” said Asakawa. “The Democratic Party of Japan is the biggest opposition party, so I expect my vote to be a catalyst for change toward dynamic politics.”
The government is considering an extra budget worth as much as 3 trillion yen ($25 billion) to help the economy recover, according to people involved in the discussions. Seko said the stimulus would be the government’s top priority after the election.
Government Secrets
Abe’s popularity has been damaged by the passage of a bill stiffening penalties for leaking government secrets and a cabinet resolution re-interpreting the pacifist constitution to allow Japan to defend other countries.
The approval rating for his cabinet has fallen to 42 percent from a peak of more than 70 percent in April last year, according to Nikkei newspaper polls. The drop in support hasn’t hurt him in the election race with the opposition in disarray and voter attention focused on the economy.
The main opposition Democratic Party of Japan has failed to garner support with a campaign aimed at drawing attention to the negative effects of Abe’s policies, which include falling real wages and small businesses suffering from the yen’s slide.
The DPJ is likely to keep close to the 62 seats it held before the election, the Nikkei said, based on a national poll of about 29,000 people from Dec. 9-11.
The ruling coalition is likely to take seats from the Japan Innovation Party and the Next Generation Party, which are set to suffer serious losses, the Nikkei said. The Japan Communist Party, by contrast, may double its seats to 15 or 16.
To contact the reporter on this story: Isabel Reynolds in Tokyo at ireynolds1@bloomberg.net
To contact the editors responsible for this story: Andrew Davis at abdavis
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