Japan’s Prime Minister Naoto Kan said on Thursday that he would resign after getting a nuclear crisis and other disaster-related matters under control, raising the chances he can survive a no-confidence vote later in the day and quell a party rebellion.
Even if he stays in office a few more months, however, Kan will struggle to forge deals with a feisty opposition in a divided parliament as the government tries to thrash out policies to rein in Japan’s bulging public debt.
Speaking ahead of the vote, Kan said he would step down later. He gave no firm date.
“I would like for the younger generation to take over various responsibilities once I fulfill certain roles that I need to, as I work on handling the disaster,” a solemn Kan told a gathering of ruling Democratic Party lawmakers.
Some rebels in the ruling party had said they wanted Kan out sooner. But his predecessor, Yukio Hatoyama, told the MPs he agreed with the prime minister’s plan to step down after the outlook for an extra budget to fund rebuilding from the tsunami was clear. That would probably be around August or September.
Hatoyama, who leads a major group in the ruling party, had earlier said he would vote in favour of the no-confidence motion. His agreement looked likely to turn the tide in favour of the beleaguered premier. Other potential rebels also told the gathering they were in favour of party unity.
Kan, who took office almost exactly a year ago, is battling to control a radiation crisis at Tokyo Electric Power Co’s Fukushima nuclear plant, while trying to figure out how to pay for rebuilding the northeast region devastated by the tsunami, and prepare tax reforms to pay for rising social security costs.
The opposition needs the backing of around 80 of the 305 lower house members from Kan’s Democratic Party of Japan (DPJ) to pass the motion in the 480-seat chamber. Passage of the motion would force Kan to resign or call a snap election.
The DPJ rebels, who dislike his abrasive style and fear he is becoming an electoral liability, had wanted Kan to resign before the vote to pave the way for a coalition with the opposition to break a parliamentary logjam.
A lower house session to vote on the motion was to open at 1 p.m. (0400 GMT), with the vote expected around 3 p.m. (0600 GMT) after speeches for and against the motion.
The uncertain outlook has been keeping financial markets on edge.
“The no confidence vote could swing either way and the market appears unsure of the outcome,” said Yuji Kameoka, chief currency strategist at Daiwa Securities Capital Markets.
“The yen could be sold momentarily if the vote is approved. Even if the vote is defeated, a large numbers of ruling party defectors could still weigh on the yen against the dollar as it the market could take a more cautious view on the Japanese economy.”
