Japan’s ruling coalition has collapsed after the Komeito party, the junior partner to the Liberal Democratic Party (LDP), announced it was ending its alliance with the ruling bloc over disagreements on political funding regulations.
Komeito leader Tetsuo Saito said Friday that talks with Sanae Takaichi, the LDP’s new leader, had failed to resolve their differences, marking a dramatic political setback for Takaichi even before she officially assumes the post of prime minister.
“The two parties are no longer in a coalition,” Saito told reporters in Tokyo. “Komeito will not vote for Ms. Takaichi in the upcoming parliamentary vote for prime minister, nor will we recommend our members support LDP candidates or campaign with them in future elections.”
The announcement ends a partnership that has underpinned Japan’s political stability for nearly 25 years, ensuring consistent majorities for successive LDP-led governments.
Following the news, the yen briefly strengthened, touching 152.39 per U.S. dollar before trimming gains, as investors reacted to the potential political uncertainty ahead.
The collapse of the coalition comes at a challenging time for the LDP, which has already suffered sharp losses in both chambers of parliament after a year of disappointing election results and mounting public anger over funding scandals.
Without Komeito’s backing, Takaichi — who recently succeeded former Prime Minister Fumio Kishida as LDP leader — is still expected to secure enough votes to become Japan’s next premier, as the LDP remains the largest party in both houses. However, the loss of its long-time partner is expected to complicate the passage of key legislation, including next year’s budget.
Despite the split, Saito said his party would remain open to limited cooperation on select policy issues. “We will continue to work with the LDP where our goals align, especially on matters concerning national security and disaster response,” he said.
The breakdown of the coalition marks one of the most significant realignments in Japanese politics in decades, raising fresh uncertainty about the direction of the new government and its ability to govern effectively.
