Defense Minister Koizumi Raises Nuclear Discussion, Sanae Token Scandal, Sub-capital Bill Battle... Challenges Continue for Takaichi Administration

Defense Minister Koizumi Says Nuclear Deterrence Discussion Should Proceed 'Without Taboos' Speaking at a press conference at NATO headquarters, Defense Minister Shinjiro Koizumi argued that discussions including nuclear deterrence should proceed in light of the severe security environment. The Prime Minister has also mentioned revising the Three Non-Nuclear Principles, which could mark a turning point in Japan's security policy. 1

'Sanae Token' Scandal: Secretary Denies Involvement in Sworn Statement, but Pursuit Persists Regarding the scandal involving the alleged creation of defamatory videos and the cryptocurrency 'Sanae Token' reported by a weekly magazine, on the 22nd Prime Minister Takaichi submitted her secretary's sworn statement to the House of Representatives Budget Committee. The secretary denied any involvement, but opposition parties including the Kishida faction are calling for a sworn witness hearing, and the debate over accountability continues. 23

Sub-capital Bill: Opposition Lays Out Conditions; Passage on 24th Unclear The ruling parties aim to pass the Sub-capital Bill at a plenary session of the House of Councillors on the 24th, but the opposition is resisting by demanding clarification of cost burdens. The ruling parties are also struggling to secure a majority, and the political situation at the end of the Diet session remains unpredictable. 45

Half of Economists Predict BOJ Rate Hike in December, Citing Takaichi Administration Pressure In a Bloomberg survey, half of 52 economists said the Bank of Japan's next interest rate hike would be in December. About 60% cited Prime Minister Takaichi's dovish leanings as a factor holding back action, once again highlighting the government's influence on monetary policy. 6

Prime Minister's '0 to 3 Hours Sleep' Post Draws Flak; Chief Cabinet Secretary Comes to Defense Prime Minister Takaichi posted on X that since taking office, she has been consistently getting 0 to 3 hours of sleep per night. As opposition parties criticized this as contrary to work-life balance, Chief Cabinet Secretary Hayashi asked for understanding of the Prime Minister's stance, saying she is 'doing her best for the people.' 78

Government to Launch Expert Panel on Foreign Resident Regulation Within the Month The government plans to set up an expert panel within the month to consider measures for 'quantitative management' of foreign residents. Based on the discussions, it will formulate a 'population strategy' including numerical targets during the current fiscal year, and this is drawing attention as a flagship initiative of Prime Minister Takaichi. 9

Growing Muslim Population Sparks Tensions: Mosque Arson and Cemetery Issues Come to Light Along with the expansion of the Muslim community in Japan, friction has surfaced in cases such as a suspicious fire in Hokkaido and a cemetery issue in Oita. While efforts to accept tourists are progressing, challenges remain numerous for integration as residents. 10

Japan and Philippines Mark 70 Years of Diplomatic Ties; Security Cooperation Deepens to 'Quasi-Alliance' Japan and the Philippines are marking 70 years of normalized diplomatic relations, and security cooperation is accelerating, including the start of negotiations on a GSOMIA. With an eye on China's increasingly active operations in the South China Sea, the two leaders confirmed a comprehensive strategic partnership. 11