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Business fears fallout from political instability as Obuchi quits
[October 20, 2014]

Business fears fallout from political instability as Obuchi quits


(Japan Economic Newswire Via Acquire Media NewsEdge) Business leaders on Monday expressed their concern about political instability in Japan, after the newly appointed trade and industry minister stepped down over a funding scandal.

The timing of the resignation by Economy, Trade and Industry Minister Yuko Obuchi is not favorable for Prime Minister Shinzo Abe, who has been touting his government as one which promotes opportunities for women in society. Sources said Justice Minister Midori Matsushima, another female minister in the Cabinet, will also resign over a possible election law violation.



"The impact will be significant because the scandal involved the female minister who had drawn the most attention" within Abe's new Cabinet launched in September, an executive of a major trading house said, referring to Obuchi.

The resignation also comes as Abe is dealing with a range of difficult economic issues, including deceleration in growth, a planned additional consumption tax hike next year, and ongoing negotiations for a free trade agreement with the United States and some other Pacific countries.


"Any confusion in national politics is significantly negative at a time when (the government) must clearly explain Japan's position internationally over issues such as the TPP (Trans-Pacific Partnership) trade agreement," an executive of a large carmaker said.

A senior official at a leading steelmaker showed some understanding toward Obuchi's resignation, while adding that the government must ensure that the scandal would not delay any discussion on whether the country would restart idled nuclear reactors once they are confirmed safe.

"It is an urgent task (for Abe) to stabilize the government's footing," an executive of a major electronics maker said, while a senior official of a large retail-chain operator hoped that Obuchi will "take responsibility properly and make a comeback." (c) 2014 Kyodo News

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