Japanese Prime Minister Kishida’s rival is urging the coronavirus stimulus package

TOKYO, September 2 (Reuters) – Former Japanese Foreign Minister Fumio Kishida, who challenges Prime Minister Yoshihide Suga as head of the ruling party, said on Thursday that an economic stimulus package worth “tens” was needed. trillion yen “to fight the coronavirus pandemic.

Kishida also said that Japan must keep interest rates very low to support the economy affected by the pandemic, providing the clearest signal so far that expansionary monetary and fiscal policies would remain in place if replace Suga.

The winner of the Liberal Democratic Party (LDP) leadership race is almost certain to be prime minister given the majority of the party in the powerful lower house of parliament.

“Many countries indicate that, for the time being, they will maintain the expansive steps of fiscal and monetary policy. Japan must not be left behind,” he said at a news conference, distancing himself from his previous statements and pointing out the need to re-dial the ultra bank of Japan. -foot politics.

Kishida also said that as party leader, he would seek to restore socio-economic activities almost to normal in early 2022, criticizing that the current treatment of the pandemic is too slow and too slow.

Kishida said the stimulus package should be compiled “quickly” and include cash payments to non-permanent workers and others who will be affected by measures to contain the flow of people.

The contest to lead the party is scheduled for Sept. 29 and the government is studying a plan to hold general elections on Oct. 17.

‘IN THE BEST OF CASES’

On Wednesday afternoon, the Japanese Minister of Digital Transformation became the first cabinet member to openly serve to support Kishida.

The move marked another twist during roller coaster week that saw the unpopular Suga come close to calling a quick election Tuesday night, only to disprove reports on Wednesday morning after seniors of the party, including his powerful predecessor Shinzo Abe, intervened to stop him. .

In a series of maneuvers to cling to his job, Suga will have to remove his unpopular long-term ally Toshihiro Nikai from a key LDP position. It is part of a reshuffle that is expected next week and will likely bring several well-known names to the two positions of the party executive and Suga’s cabinet as the prime minister struggles to bolster his support.

Kishida said Suga’s coronavirus policies were fragmented and partial and said the government should move urgently.

“In crisis management, it is more accurate to take on the worst case scenario, rather than believing that enough has been done,” it is necessary, ”he said.

Kishida established plans to create a new government agency to oversee the management of health crises, complete vaccinations before November, and provide government assistance for the development of oral medications for COVID-19 treatment.

“I would like the legislation to be revised so that state and local governments have strong authority to curb the movement of people and ensure medical resources,” Kishida said.

When he launched his candidacy last week, he said he wanted to reduce income gaps and support economically vulnerable people, such as workers with insecure jobs and women, in contrast to Suga, who has stressed self-sufficiency before the public support.

“Suga has focused on helping businesses, such as grants for corporate loans. Kishida, on the other hand, emphasizes supporting household income instead of businesses,” said Daiju Aoki, a Japanese economist at head of UBS SuMi TRUST Wealth Management. “While both call for expansive fiscal policies, this point is clearly different.”

Discreet 64-year-old Kishida has been poorly ranked in polls about the next prime minister preferred by voters, but now the head of an LDP faction is seen as a promising meeting point for lawmakers looking for a new leader before the lower house elections.

Suga, 72, took office last September with support of around 70%, but his ratings have dropped to lows of less than 30% as Japan struggles with the worst wave of COVID-related infections. 19 and many of its LDP lawmakers fear for their seats.

Reports by Antoni Slodkowski, Tetsushi Kajimoto and Kiyoshi Takenaka; Additional reports by Leika Kihara; Edited by Michael Perry and Gerry Doyle

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