Prospects for Early Election Looming in Japan

Tokyo, Nov. 10 (Jiji Press)--The view is spreading among Japanese government and ruling coalition officials that Prime Minister Shinzo Abe will call a snap election immediately if he decides to postpone an additional consumption tax increase. The House of Representatives is likely to be dissolved as early as Nov. 19 for a snap election, aides to Abe said Monday. If Abe makes such a decision, the election for the Lower House will take place on Dec. 14 or Dec. 21, sources familiar with the situation said. The Japanese government is scheduled to release preliminary gross domestic product data for July-September on Nov. 17. A series of meetings between government officials and private-sector experts on the consumption tax increase are set to end on Nov. 18. Abe intends to examine the data and outside opinions before making a final decision on whether to raise the 8 pct consumption tax to 10 pct in October next year as planned. Some officials in the government and ruling coalition argue that a decision to postpone the tax increase will lead to a loss of market confidence in Japan, while others insist that the tax increase will undermine already weak regional economies. Some speculate that even if Abe goes ahead with the tax increase, he will call a Lower House election. Abe has been losing some public support due to the recent resignations of two scandal-tainted cabinet ministers. Some ruling coalition lawmakers think that an early election would make it easier for them to maintain their seats because opposition parties are not prepared well. END