Editorial

15:13 JST, July 26, 2025

The ruling and opposition parties should recognize that the era when tax and fiscal policies could be implemented without much concern for the cost of interest payments on debts is over. Under the new power balance in the Diet, they must cooperate on responsible policies.

As a result of the House of Councillors election, the ruling coalition of the Liberal Democratic Party and Komeito has become a minority in both houses of the Diet. Therefore, the opposition parties, which have advocated such measures as consumption tax cuts, are expected to intensify their offensive, and there is a growing sense of caution in the market over fiscal deterioration.

The fact that Japanese government bonds are being sold off, causing long-term interest rates to rise, may be a sign of this concern. The rate surged to 1.605% on July 25 — the highest level in about 17 years.

During........

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