Japan set for first female prime minister after ruling party finds coalition partner

The ruling Liberal Democratic Party and the Japan Innovation Party have agreed to form a coalition government, setting the stage for the country’s first female prime minister, Kyodo news agency reported on Sunday.

Kyodo said Sanae Takachi, leader of the conservative LDP, and Hirofumi Yoshimura, head of a small right-wing group called Ishin, are set to sign an agreement on Monday sealing their alliance.

Ishin’s co-head, Fumitake Fujita, had raised hopes of a deal on Friday, saying the two parties had made “major progress” in coalition talks.

Ishin lawmakers will vote for Ms. Takachi in an election to elect the prime minister in parliament on Tuesday, but they do not intend to send ministers to her cabinet, at least initially.

That would be less than the full coalition that the LDP maintained with the Komeito party until the junior partner left the coalition this month, raising concerns over the stability of the incoming government.

Mr. Fujita told reporters on Sunday evening that talks were in the final stages and that his fellow lawmakers had entrusted Mr. Yoshimura and him with the responsibility of taking the final decision.

He said his decision would be announced on Monday, but declined to go into details.

Mr. Fujita said, “I don’t know how the picture we paint tomorrow will be evaluated, but I think we are moving toward tomorrow with the relationship of trust deepening significantly and I believe the other side is thinking the same.”

Ms Takaichi’s path to becoming Prime Minister Shigeru Ishiba It seemed almost certain after he won the presidency of the long-ruling LDP earlier this month. But Komeito abandoned its 26-year-old alliance with the LDP, prompting a flurry of talks with rival parties to select the next prime minister.

In an effort to get Ishin on board, the LDP offered to ban donations from companies and other organizations and work toward exempting food items from Japan’s sales tax, Kyodo said.

Ishin has proposed to abolish tax on food items for two years.

Ms Takaichi, a fiscal advocate, has called for more spending and tax cuts to relieve consumers from rising inflation and has criticized bank of japanDecision to increase interest rates.

She favors revising Japan’s pacifist constitution to recognize the role of its expanding military.

Ms Takaichi is a regular visitor to the Yasukuni shrine for Japan’s war dead – including some executed war criminals – which is seen by some Asian neighbors as a symbol of the country’s past militarism.