00:00We spoke last time when Prime Minister Takaichi was still struggling to form a coalition.
00:04She was still struggling to become Prime Minister at that point.
00:07This is a historic landslide victory. What changed?
00:11Yes. Well, this is, it's really historic.
00:14I think this is the largest, I think, vote the LDP alone received from the people in the history.
00:22And then I think she, her popularity rate is unprecedented, extremely high.
00:30And especially for the young people, and then also the non-partisan people,
00:34like who doesn't really pay attention to the politics,
00:38they are now turned to seeing the Takaichi-san as a new leader
00:42who can change Japan in a very positive manner.
00:46Yeah, I think she has, what, about 90% support rate from young voters
00:49or something like that going into the elections.
00:51But does this mean then that that suspension of the sales tax for two years,
00:57it's a given at this point?
01:00Yeah, of course, we have to, the next step is we are going to have the national board
01:06with the other parties together to discuss and then formulate the designing of the,
01:14then also schedule of the tax cut reduction, consumer tax reduction.
01:18But I think since we have two-thirds, and then I think Prime Minister Takaichi herself is very keen on this issue,
01:27especially for the food and then the vegetable and all this, you know, necessary items.
01:32So I think that will go pretty smoothly.
01:36I want to talk a little bit more about the fiscal concerns,
01:39but also just about her resounding victory.
01:42Does this also put on the table constitutional revision at this point?
01:48Yes, in the, I think in the due course, I would say,
01:51because constitutional reform is a really important issue,
01:55but it needs people's consensus.
01:58You know, you shouldn't really divide a nation for this issue.
02:01Plus, I think the more urgent policies are still awaiting before the constitutional reform,
02:08such as recovering the economy in the first place,
02:11and also making the defense capability stronger.
02:14So the other issues need to be tackled before, I think.
02:19And those issues, the economy, defense,
02:23then do you expect perhaps more pushback,
02:27especially from investors when it comes to fiscal spending,
02:30just because of the concerns around the health of the economy?
02:33Or could the victory actually allow investors to be a bit more calm
02:38to whatever Prime Minister Takaichi has in store?
02:42Well, in the middle, but I would say the latter,
02:44because I think we need to, we means the LDP and our government needs to explain
02:51more, I think, convincing manner that the responsible,
02:56responsible, proactive fiscal policy that Prime Minister Takaichi is proclaiming
03:01is not a reckless fiscal policy at all.
03:05It's responsible because, for example, take the example
03:08that the assurance of the national deficit bond,
03:12the amount has decreased from the previous government.
03:14So it's not, the direction itself is not like reckless,
03:20unresponsible, you know, fiscal policy,
03:23but it's more like choosy about where to,
03:26where the government will invest.
03:29It's more strategic, like AI, quantum computing space,
03:34or the shipping.
03:37So, you know, yes, we will spend,
03:41no hesitance for spending unnecessary area,
03:44but we will also cut off the unnecessary subsidies,
03:48or we will be very choosy.
03:50So we need to be, we need to explain more about the concept,
03:54and then reassure the investors
03:57to see our fiscal balance is not unhealthy,
04:01and also we have very strategically minded.
04:05Then, I think the market will understand what GOJ wants to do.
04:12Rui, you talk about fiscal policy,
04:15talk to us about foreign policy as well.
04:17You, as a former diplomat,
04:19how do you see, perhaps,
04:21given this convincing victory for Takaichi-san,
04:25has that perhaps opened a door
04:27and a shift towards how she's perceived on the global stage?
04:34The agenda is stronger and more prosperous Japan.
04:40And the stronger part is not only defense, but economy.
04:44But I think strong Japan can serve the region much better.
04:48Now that the U.S. already announced the national strategy
04:53that they will focus on the Western Femisphere,
04:57so each region needs to be taken care of by the regional countries,
05:00which means Japan needs to take care of its own region.
05:03And I think we will be more independent
05:05and more creative about, you know,
05:09strengthening the partnership with the regional countries
05:11or the countries which share the strategic interests.
05:16So I think the strong Japan
05:19and then the strong leadership, Japanese leadership,
05:22will serve the region for peace and stability more.
05:27What do you see as the outlook for U.S.-Japan trade ties,
05:30especially as the two leaders,
05:33Trump and Takaichi, are also set to meet?
05:38Oh, yes.
05:38Yes, we are expecting a very,
05:40we can show a very strong tie between Japan and U.S.
05:45The Japan-U.S. alliance stays very strong,
05:47or even more stronger,
05:48that will also serve the stability of the region.
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