Takaichi outlines ambitious agenda in the face of constraints

key takeaways

• Prime Minister Takaichi Sanae outlined an ambitious agenda that aims to deliver domestic security and economic strength.
• While she has called for “responsible fiscal stimulus,” Takaichi’s program could swell government budgets, raising inflationary and market risks.
• Political constraints suggest a tension between Takaichi’s need to appear strong and decisive and the reality that compromises will be unavoidable.