The Birth of Japan’s First Female Prime Minister and the Launch of a New Administration

On October 21, 2025, Sanae Takaichi, president of the Liberal Democratic Party (LDP), was elected Japan’s 104th Prime Minister in a parliamentary vote, becoming the first woman in Japan’s constitutional history to hold the nation’s highest office. The leadership election was held on October 4 after former Prime Minister Shigeru Ishiba resigned, taking responsibility for the LDP’s electoral defeat. Born in Nara Prefecture, the 64-year-old Takaichi is a veteran lawmaker who has served as Minister for Internal Affairs and Communications, Minister for Economic Security, and LDP Policy Research Council Chairperson. She is known as a staunch conservative closely aligned with former Prime Minister Shinzo Abe. Following her appointment, she was formally inaugurated at the Imperial Palace and immediately began forming her cabinet — officially launching the “Takaichi Administration.”

A notable aspect of this new government is the major realignment of the ruling coalition. The Komeito party, which had been in a coalition with the LDP for more than 25 years, left the ruling bloc after Takaichi’s rise to party leadership, marking a significant political shift. To maintain power, the LDP negotiated with other parties and eventually signed a policy cooperation agreement with the Japan Innovation Party (Nippon Ishin no Kai). The Innovation Party joined as a partner through “external cooperation,” meaning it holds no ministerial posts, forming what could be described as a “loosely structured coalition.” However, even with Ishin’s support, the LDP still lacks a majority in both houses of the Diet, making this a minority government. While Takaichi has made history as Japan’s first female leader, she also faces the difficult task of maintaining stability in a divided parliament. She has downplayed speculation about an early general election, saying, “I don’t have the luxury of talking about dissolving the Diet right now,” emphasizing her focus on policy implementation over political maneuvering.

Economic Policy: Hopes and Challenges for Expansionary Fiscal Management

Prime Minister Takaichi has pledged an “active fiscal policy” approach, positioning herself as a successor to former Prime Minister Shinzo Abe’s economic framework, known as “Abenomics.” In her inaugural press conference, she identified “combating rising prices faced by citizens” as her immediate top priority, expressing her determination to balance economic growth with social stability. Her government plans to revitalize Japan’s economy through large-scale fiscal spending, tax cuts, and continued monetary easing. Markets reacted positively to her economic stance: on the day of her election, October 21, the Nikkei Stock Average hit an all-time high, reflecting investor optimism over potential economic revitalization under Japan’s first female leader. Many analysts suggested that her leadership could mark a breakthrough in overcoming Japan’s long-standing stagnation and signal a new phase of growth.

However, concerns persist about the sustainability of Japan’s massive public debt. The government’s debt now exceeds twice the nation’s GDP—the worst among advanced economies. Investors have grown increasingly cautious about Japan’s fiscal credibility, with fears of long-term funding shortages fueling a weaker yen and rising long-term interest rates. Critics warn that Takaichi’s pro-spending stance could shake market confidence unless paired with a credible fiscal discipline strategy. The Japan Innovation Party, now cooperating with the LDP, advocates for “small government” and fiscal prudence. As a result, observers expect Ishin’s involvement to serve as a moderating influence on the administration’s expansionary tendencies.

Satsuki Katayama, appointed as Japan’s first female Finance Minister and a close ally of Takaichi, is also known for her pragmatic stance—described as “fiscally proactive but not extreme.” Economists predict that under Takaichi and Katayama’s leadership, fiscal policy will likely emphasize balance rather than unrestrained stimulus. As Japan faces the dual challenge of stimulating the economy while maintaining fiscal sustainability, all eyes are on how the country’s first female prime minister will navigate this complex economic landscape.

Diplomacy and Security: Conservative Vision and Global Relations

In foreign and security policy, Prime Minister Takaichi is expected to steer Japan in a more overtly conservative direction. She has declared that “defense and national security will be central pillars of my administration,” emphasizing her commitment to strengthening Japan’s defense capabilities and deepening strategic alliances. She intends to uphold the previous administration’s plan to raise defense spending to 2% of GDP and to advance Japan’s counterstrike capabilities—known as “enemy base attack” capability—to bolster deterrence.

At her first press conference, Takaichi named her administration “The Cabinet of Determination and Progress,” vowing to “build a stronger Japan.” She also expressed her intention to meet soon with U.S. President Donald Trump (as of 2025) to elevate the Japan-U.S. relationship “to a new level.” Takaichi has long paid visits to the controversial Yasukuni Shrine and has been a vocal advocate for revising Japan’s pacifist Constitution, particularly Article 9. Earlier this year, she also mentioned the idea of establishing a “quasi-alliance” with Taiwan, signaling a hardline stance toward China even at the risk of diplomatic strain. Some analysts see her leadership as a turning point marking Japan’s political shift further to the right.

At the same time, her proactive approach could strengthen Japan’s partnerships with key allies such as the United States, the U.K., and Australia. She is expected to make her diplomatic debut at the APEC summit in November, where she plans to promote Japan’s leadership in the Indo-Pacific region. Her cabinet lineup reflects a balance between experience and generational renewal—appointing Shinjiro Koizumi as Defense Minister and veteran diplomat Toshimitsu Motegi as Foreign Minister. As the world watches Japan’s first female prime minister take the global stage, attention will focus on how she manages Japan’s role amid rising geopolitical tensions and shifting power dynamics.

Gender and Social Issues: Symbolism and Reality

Sanae Takaichi’s rise to power marks a historic milestone for gender equality in Japanese politics. In a nation where every prime minister before her was male, her appointment shattered the symbolic “glass ceiling” and drew worldwide attention. Yet, her political ideology remains staunchly conservative, and her main support base lies among older, right-leaning male voters. Takaichi has openly opposed introducing separate surnames for married couples and the legalization of same-sex marriage—stances that align with the LDP’s conservative faction despite growing public support for these reforms.

During the LDP leadership race, she promised to “reflect women’s perspectives in policymaking” and pledged to increase female cabinet representation to “Nordic levels.” However, in her newly formed 19-member cabinet, only two ministers—including herself—are women. Among them, Finance Minister Satsuki Katayama made history as Japan’s first female to hold the post, while Economic Security Minister Kimi Onoda became the other. This results in a female representation rate of just 16%, far below her stated goal. Critics argue that “while the arrival of a female prime minister may slightly improve Japan’s global gender ranking, in reality, little has changed.” Indeed, Takaichi’s appointment does not automatically translate into greater equality in workplaces or politics, and the path toward gender parity remains long and uncertain.

Still, Takaichi’s ascent holds symbolic power. Often compared to former U.K. Prime Minister Margaret Thatcher, whom she admires deeply, Takaichi has modeled aspects of her leadership on the “Iron Lady’s” decisiveness and discipline. Her tenure may test how far Japan’s first female leader can push reform within the framework of a traditionally conservative society. Beyond politics, Takaichi is also known for her love of heavy metal music and once played drums in a student band—a contrast to her stern public image. Supporters in her home district describe her as a “tough yet compassionate leader” who listens closely to others, embodying both resilience and empathy in her political style.”