Tag: Japan

Japan’s Prime Minister Junichiro Koizumi has dissolved the lower house of parliament and called an early election for 11 September.

The move follows the defeat in the Upper House of his landmark proposals to reform the country’s postal system.

The vote was a huge blow to Mr Koizumi, who staked his reputation on the issue.

One minister has resigned over his decision to call an early election, and his divided party may now face a close race in the poll.

The postal reform would have transformed Japan Post, with its 3 trillion dollars of assets, into the world’s largest bank.

Postal reform sounds like an unlikely issue to stake a government on, but Japanese Prime Minister Junichiro Koizumi is doing just that.

Now Koizumi’s privatisation campaign is coming to a final showdown, with the future of his government hanging in the balance.

In a bold challenge to opponents in his Liberal Democratic Party, Koizumi wants a quick vote in the upper house of Parliament, likely within days, that could finally settle the battle over privatisation, or force him to call general elections.

Koizumi suggested that a failure of the package could lead him to dissolve the powerful lower house of Parliament.

“If the bill is passed, then the house won’t have to be dissolved, so I’d like everyone to try their best,” he told reporters on Thursday.

Just how high the stakes are in this battle has become apparent in recent weeks.