Aso Faction Continues Amid Departures, Mogi Faction Faces Growing Exits

Prime Minister Sanae Takaichi moved to contain political pressure on July 14 by confirming that she will attend intensive Budget Committee deliberations later this week, as the final days of the Diet session turned into a test of her parliamentary management, economic policy credibility and conservative legislative agenda.

The Fukuoka Prefectural Assembly is facing mounting scrutiny over its use of public funds after revelations that assembly members spent about 45 million yen in one year on overseas inspection trips, including a Hawaii visit that cost nearly 12 million yen for four members.

Neyagawa in Osaka Prefecture has approved Japan's first citywide tax on vacant homes, imposing a new municipal levy at a rate of 35% on owners in addition to existing fixed-asset taxes from fiscal 2029.

Taro Yamamoto, leader of Reiwa Shinsengumi, announced on July 10 that he will resign as party leader and retire from politics, citing both a speeding violation that resulted in criminal penalties and ongoing health problems.

Prime Minister Sanae Takaichi’s economic strategy came under renewed scrutiny on July 8 as the government considered softening language in its long-term policy blueprint that had raised concerns over political pressure on the Bank of Japan, while the administration continued to face Diet tensions over its legislative agenda before the current session ends next week.

Japan, the United States and South Korea have agreed to work together to promote the introduction of next-generation small modular reactors, signing a memorandum of cooperation at a foreign ministers' meeting in Turkey on July 7.

Prime Minister Sanae Takaichi and Japan Innovation Party leader Hirofumi Yoshimura held talks on July 7 as Diet deliberations remained stalled over opposition resistance to two bills Ishin is seeking to pass, including legislation to cut the number of lawmakers and a bill to establish a secondary capital.

Opposition parties boycotted Diet deliberations after accusing the ruling bloc of forcing debate on bills to cut the number of lawmakers and create a secondary capital system, leaving committee sessions to proceed without them and exposing widening rifts not only between the ruling and opposition camps but also within the government and ruling coalition.