Business

Japan's Prime Minister Sanae Takaichi announced the dissolution of the lower house of Parliament on Friday, setting the stage for a snap election on February 8. This decision aims to take advantage of her popularity, as she seeks to help her governing party recover from significant losses in recent years. However, this move will postpone discussions and voting on a budget intended to boost the struggling economy and tackle rising prices. Takaichi, who made history as Japan’s first female leader when she was elected in October, has only been in office for three months and currently enjoys strong approval ratings of around 70%. Takaichi's relationship with China has become more strained, especially after her supportive comments about Taiwan. Additionally, U.S. President Donald Trump has urged her to increase military spending, as both Washington and Beijing compete for military dominance in the region. The dissolution of the 465-member lower house allows for a 12-day campaign, which will officially begin on Tuesday. When house speaker Fukushiro Nukaga announced the dissolution, the gathered parliamentarians stood, shouted "banzai"—meaning "long live"—three times, and hurried out to begin preparations for the campaign. Takaichi’s strategy for an early election is to leverage her popularity to strengthen the governing majority in the lower house, which is the more influential chamber of Japan’s two-chamber Parliament. The scandal-plagued Liberal Democratic Party (LDP) and its coalition hold a narrow majority in the lower house following a 2024 election defeat. However, they lack a majority in the upper house and depend on support from opposition members to advance their agenda. Opposition leaders have criticized Takaichi for delaying the approval of a budget essential for implementing key economic policies. "I believe that the only option is for the people, as sovereign citizens, to decide whether Sanae Takaichi should be prime minister," she stated during a news conference on Monday when discussing the election plans. "I’m staking my career as prime minister" on this decision.