Press Conference by Prime Minister TAKAICHI Sanae

[Opening Statement by Prime Minister Takaichi]

It has been determined that as Japan's 105th Prime Minister, I will continue to shoulder the heavy responsibility of this office.

One hundred and twenty days ago, in the election within the House of Representatives to designate the prime minister, I received 237 votes, a mere four votes over the threshold for a majority. In this way, as my administration was inaugurated, I felt as if I were walking on thin ice. This time, I was designated prime minister with a stable foundation, receiving more than 350 votes.

As I begin my remarks today, I wish to express my deep and heartfelt gratitude to the Japanese people, who in the recent general election placed their trust in the Takaichi administration, granting us the largest number of seats in the history of the Liberal Democratic Party (LDP), which dates back more than 70 years. I am determined to faithfully live up to the mandate you have bestowed on us. Taking the gravity of that responsibility deeply to heart, I will undertake political administration in a manner that is humble and yet bold, listening to a wide range of voices.

Some say that, with the LDP alone having secured more than two-thirds of the seats in the Lower House, I have been granted tremendous power, being given a "blank check." But I have no intention whatsoever to regard this situation as a free hand. I ask for the cooperation of opposition parties that are open to cooperating on realizing policies, just as I have until now. I will move forward with executing our very best policies as I listen humbly and sincerely to a broad spectrum of voices.

Some are also saying thoughtless things, such as, "So now you no longer need the Japan Innovation Party (JIP)." We have an unwavering relationship of trust with the JIP, which made the important decision to forge a new coalition with the LDP when we faced a difficult time last October upon the dissolution of our coalition with Komeito.

The LDP is deepening its cooperation with the JIP and in fact stepping up the pace, fully united as the Government and ruling parties. We will work to bring about the policies set out in the campaign pledges we advocated during the general election as well as the coalition agreement formally executed between our two parties.

The "Takaichi Cabinet 2.0" is now underway, starting today.

The members of the Takaichi Cabinet, whom I selected with confidence four months ago, are all, without exception, highly suited to spearhead our efforts in their respective policy areas. They are already pressing ahead full throttle towards realizing our policies. With the inauguration of the Second Takaichi Cabinet today, I have reappointed all of them.

In the recent general election, we received a powerful support boost from the Japanese public regarding our critical policy shifts of pursuing responsible and proactive public finances, fundamentally reinforcing our security policies, and strengthening the nation's intelligence capabilities. For these policy shifts, all of which the Takaichi Cabinet advocates, I believe the public is urging us to see them through, no matter what it takes.

I have a sobering feeling once more at how great the public's expectations are as we work to make the Japanese archipelago stronger and more prosperous.

First of all, in this Diet session, with regard to bills that must be enacted before the end of the current fiscal year [March 31], notably the budget for fiscal 2026 and tax reform bills, taking the stance that everything we do is with the intention of reassuring the Japanese people and building a strong economy, we will call on the opposition parties to cooperate with us as we work to have these bills passed at the earliest possible time. At the same time, we will call on them to participate in a nonpartisan National Council and cooperate on convening such a council at an early time.

In order to reduce the burden borne by middle- and low-income earners as they struggle to pay taxes and social insurance premiums and cope with higher prices, we will move forward with discussions on comprehensively reforming our social security and taxation systems, including designing a system for refundable tax credits, and emerge with a conclusion.

We will also consider on a fast-track basis the various implementation challenges -- such as the implementation schedule and the means of securing our financial resources -- that would accompany slashing to zero percent for a period limited to two years, without relying on the issuance of deficit-financing bonds, the consumption tax on all food and beverage items currently subject to the lower tax rate, as a way of reducing people's financial burden until the refundable tax credit system is introduced.

If we are able to secure the cooperation of the opposition parties, we aim to release an interim compilation of findings before summer and submit related tax reform bills.

At the very heart of the major policy shifts underway by the Takaichi administration is responsible and proactive public finances.

If we analyze the factors behind Japan's low potential growth rate, the thing that is overwhelmingly insufficient compared to other major countries is domestic investment. It is imperative for us to boldly promote investment through public-private collaboration, leveraging strategic investments that enhance resilience against potential crises, for which the government will take the lead and minimize various risks, as well as investments that promote growth, which will unlock the full potential of cutting-edge technologies.

Towards that end, we will fundamentally overhaul the way the national budget is created. We will enable policy support through the use of budgets which provide fiscal outlays across multiple fiscal years and funding that is provided over the long term. This will ensure predictability for both private-sector entities and local governments while also promoting corporate research and development and capital investment.

In addition, we will make a clean break from our current budget formulation process in which it is assumed that a supplementary budget will be compiled each fiscal year; we will instead allocate all necessary funds within the initial budget, to the extent possible.

While the budget for fiscal 2026 will be our first step towards breaking away, this is a major reform that will require roughly two years to carry out as we entirely revamp our budget formulation policy, beginning in earnest this summer at the stage of formulating budget requests for fiscal year 2027. Rest assured, we will carry these reforms through to completion.

Drawing lessons from Russia's aggression against Ukraine, countries are now urgently responding to new forms of warfare and strengthening their readiness. In Japan as well, we will expedite the revision of our Three Strategic Documents and conduct a fundamental reinforcement of our security policies. We will also undertake a strengthening of our intelligence capabilities. We will establish a system by which we, as a nation, increase our capacity for analyzing information, prevent crises before they occur, and strategically protect our national interests.

In concrete terms, in this Diet session, we will submit bills to establish a National Intelligence Bureau and also launch a Committee on Foreign Investment in Japan -- that is to say, a "Japan version" of the Committee on Foreign Investment in the United States (CFIUS) -- which will be charged with strengthening our national security framework for screening inbound foreign investment.

A country that never takes on challenges has no future. Many of the 18-year-olds who voted for the first time this year and many of our newborns will live to see the 22nd century. When that time comes, may Japan be both safe and prosperous.

And, may Japan be counted on by other countries as a bright beacon in the Indo-Pacific and as a nation of freedom and democracy.

My administration will build a country where young people feel proud of having been born in Japan, and where they can say with full confidence that the future is bright. The Takaichi Cabinet 2.0 will continue to take on challenges to make that a reality.

There are also the matters of constitutional reform, revisions to the Imperial House Law, and realizing a reduction in the number of seats in the Diet. 

The LDP will also continue to press ahead.

I speak from the heart when I say I will press ahead tenaciously under any circumstances.

We will take action as the “Cabinet of Determination and Progress That Takes On Challenges,” with our efforts bringing about a hopeful future and a stronger and more prosperous Japanese archipelago. I ask the Japanese people for their understanding and cooperation.

Thank you very much. This concludes my opening statement.