Overview
- Takaichi instructed Liberal Democratic Party executives to compress lower-house deliberations on the fiscal 2026 budget, signaling a drive for swift approval despite likely opposition pushback.
- The special Diet session opens Feb. 18 for 150 days, when Parliament is set to re-elect Takaichi as prime minister and allow her to launch a second Cabinet expected to mirror her first.
- The LDP holds 316 seats and, with the Japan Innovation Party, controls about 352 of 465 lower-house seats, giving the ruling bloc the numbers to steer legislation through the chamber.
- Security priorities outlined by Takaichi include higher defense spending toward 2% of GDP, a new national security strategy, creation of a National Intelligence Bureau, and a bid to revise the constitution that would still require upper-house votes and a national referendum.
- A White House summit with President Trump is scheduled for March 19, while markets weigh her fiscal plans after equities jumped, bond volatility eased, and analysts questioned funding for tax relief such as a proposed cut on food consumption taxes.