Takaichi Charts a Course for Revival: Strong Economy, Security, and Unshakable Resolve

Prime Minister Sanae Takaichi delivered her first policy speech to the Diet on October 24, outlining an ambitious roadmap to restore Japan's economic vitality, reinforce national security, and rebuild public trust in politics. Speaking with characteristic determination, Japan's first female prime minister declared her commitment to "turning anxiety into hope" and "building a strong and prosperous nation."

Takaichi began by emphasizing stability as the foundation of governance, stating that without political stability, neither economic growth nor robust diplomacy could be achieved. Underlining this belief, she highlighted the formation of a new coalition government between the Liberal Democratic Party (LDP) and Nippon Ishin no Kai, an alliance she framed as a "broad policy consensus" aimed at Japan's revival. The new administration, she promised, would welcome constructive policy proposals from across the political spectrum, so long as they align with the coalition's basic principles.

Turning Inflation Anxiety into Growth

The prime minister devoted much of her speech to addressing Japan's most pressing concern: the rising cost of living. "Responding to inflation is the government's top priority," she said, pledging to deliver swift and tangible relief. While calling for wage increases that outpace price hikes, she stressed that such growth must be sustainable and supported by government policy rather than imposed unilaterally on businesses.

Takaichi announced plans for a new economic stimulus package and a supplementary budget to be submitted to the Diet. The measures will include subsidies to ease fuel costs, with the government aiming to abolish temporary tax rates on gasoline and diesel within the current Diet session. She also promised immediate support for hospitals, care facilities, and small businesses struggling with higher operating costs, alongside electricity and gas subsidies to help households through the winter.

Rejecting blanket handouts that had failed to win public approval in past elections, Takaichi vowed instead to take "targeted, careful action" on each area of public concern. She also committed to advancing policies, such as the expansion of the part-time income threshold ("the ¥103,000 JPY ($660 USD) barrier") to ¥1.6 million ($10,250). In addition, she announced the introduction of free high school tuition and school lunches from April 2026.

A Vision for Growth: From Crisis Management to Innovation

At the heart of Takaichi's economic philosophy lies what she called "responsible proactive fiscal policy." The government, she said, would spend strategically to drive a virtuous cycle of higher incomes, stronger consumption, and increased tax revenue, without raising tax rates.

Her long-term vision centers on what she described as "crisis management investment": forward-looking public and private investment in areas vital to national resilience, including defense, food, energy, health, and disaster prevention. She announced the launch of a Japan Growth Strategy Council to guide such efforts, with particular focus on cutting-edge technologies like artificial intelligence, semiconductors, space, biotechnology, and cybersecurity.

"By transforming global challenges into engines of growth," she said, "Japan can once again stand at the forefront of innovation." Takaichi also reaffirmed support for the shift "from savings to investment," pledging to develop strategies that unleash the power of finance to stimulate both national and regional economies.

Agriculture, too, featured prominently in her address. She announced a five-year framework for agricultural reform, leveraging advanced technologies such as AI analysis and sensor-based systems to boost productivity and exports. "We will create a profitable agriculture, forestry, and fisheries sector that supports Japan's food security and revitalizes regional economies," she declared.

Building a Resilient Nation

Takaichi placed strong emphasis on disaster prevention and crisis management, pledging to accelerate preparations for the establishment of a National Disaster Management Agency in the next fiscal year. Japan, she reminded lawmakers, is one of the world's most disaster-prone nations. Citing the Nankai Trough and Tokyo inland earthquakes as urgent risks, she called for "comprehensive prevention and pre-disaster measures" utilizing digital and satellite technology.

Social security reform was another central theme. She called for the creation of a national conference involving multiple parties and experts to discuss the integration of tax and social security systems, as well as sustainable approaches to medical and elderly care. 

She also reiterated her long-standing commitment to women's health. The PM highlighted the establishment of the Women's Health Comprehensive Center and promised expanded research and diagnostic networks nationwide.

Diplomacy and Defense

Turning to foreign policy, Takaichi pledged to restore "a Japan that blossoms at the center of the world." She reaffirmed that the Japan–United States alliance remains the cornerstone of Tokyo's diplomacy and security strategy. The Prime Minister promised to strengthen deterrence and response capabilities through closer cooperation with Washington and key partners such as South Korea, the Philippines, Australia, and India.

On defense, she announced plans to accelerate spending to reach 2% of GDP within this fiscal year, in line with Japan's national security strategy, and to revise the country's three key security documents in 2026 to reflect evolving threats. "Japan must take the initiative to fundamentally strengthen its defense capabilities," she said, pledging to improve both the defense industrial base and the treatment of Self-Defense Forces personnel.

Takaichi also reiterated her firm stance on key international issues: rejecting North Korea's missile provocations, calling for the swift return of Japanese abductees, condemning Russia's invasion of Ukraine, and stressing the importance of building "a strategic mutually beneficial relationship" with China while safeguarding Japan's national interests.

Governing Through Conviction

Closing her address, Takaichi invoked the spirit of the Meiji reformer Yoshida Shoin, quoting his words that one must "begin from one's own place and act steadily." For Takaichi, that place is Japan itself, a nation whose "latent strength and dignity," she said, she deeply believes in.

"Politics is not about making decisions alone," she concluded. "It is about talking together, struggling together, and deciding together." With these words, she invited all parties and citizens to take part in "Japan's new first step" toward revival.

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Author: Daniel Manning