Japan's ruling coalition ally proposes vast economic stimulus measures

10:43, June 17, 2010      

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The People's New Party (PNP), a small member of Japan's ruling bipartite coalition, called for a 100 trillion yen (1.09 trillion U.S. dollars) stimulus package to spur economic growth over the next three years, in its campaign manifesto unveiled Wednesday for the upper house elections expected in July.

The stimulus package announced by PNP leader Shizuka Kamei, as part of the party's campaign platform, purports to achieve at least 5 percent economic growth by establishing a zero interest, tax free government bond as well as tapping into special government reserves, postal savings and insurance funds.

The pro-spending PNP seeks to address the nation's tattered finances through aggressive expenditure to jump-start Japan's sluggish economic recovery, however the recent resignation of Kamei as banking minister, following a row with the dominant Democratic Part of Japan (DPJ) over postal reform policy, may impede the progress of the party's proposal according to some political pundits.

The right-leaning PNP Wednesday also said it opposed the DPJ's policies of allowing voting rights to foreign permanent residents in Japan as well as allowing the option of dual surnames to married couples.

If the DPJ win a majority in the upper house election, they would no longer have to rely on their coalition partner to pass bills in the upper house and in this event, whilst the PNP would most likely opt to stay in the coalition, the party's clout would be lessened and its plans to block the DPJ's fiscal reform policies severely reduced.

Should the DPJ fail to gain a majority in the less powerful upper house, post election jockeying to partner with other smaller parties is widely expected.

Source: Xinhua


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