Japanese press predicts deepening crisis

No let up in sight for Tokyo stock exchange

The prospect of Japanese Prime Minister Yoshiro's Mori's early departure, far from calming fears of a recession, has brought speculation in the media that the country is heading for a period of deeper crisis unless Mori is replaced quickly and new policies are put in place.

The looming spectre of deflation has cast a black shadow on the nation's economy

Yomiuri Shimbun

Yomiuri Shimbun says the present cabinet will remain in office for more than another month, but that it cannot be expected to function normally.

"Furthermore, the transition period between the Mori administration and its successor could possibly create a political vacuum and further aggravate the current dysfunctional political situation," the paper says.

Deepening crisis

"The looming spectre of deflation has cast a black shadow on the nation's economy... At this juncture, further prolonging the political stalemate will give rise to more anxiety in markets and the general public and could deepen the crisis."

A leading Japanese industrialist also said the government should focus on stabilizing the political situation in the short term.

"If stock prices continue flagging with the end of the fiscal year approaching, the adverse effects on corporate performance would be immeasurable," Kosaku Inaba, chairman of the Chamber of Commerce and Industry, told Sankei Shimbun.

If he has decided to step down, he should dissolve his cabinet as soon as possible

Opposition leader Naoto Kan

But Nihon Keizai Shimbun sees the economic measures planned by the current government as symbolising its "lack of insight".

"Not only does the package appear rushed and crude in certain areas, but it also qualifies as an 'anything goes' plan, as Mori's government enters its final stage. It also conveys a purpose of what seems to be a last-ditch effort to merely postpone the inevitable."

The opposition also said there was no time for delay.

"I think if he has decided to step down, he should dissolve his cabinet as soon as possible," the leader of the Democratic Party of Japan, Naoto Kan, told NHK TV.

He too said the government's economic package was an attempt to boost Mori's image, and that it would be "ineffective in bolstering the economy".

Desperate efforts

A senior policymaker in Mori's party blamed the media itself for the cabinet's poor ratings, and said whoever replaced the premier would be just as unpopular if the media continued to snipe at them.

"We must make desperate efforts to hear opinions and demands of the people," Shuzuka Kamei said.

The members of his party appear to agree - a poll published by Yomiuri Shimbun shows that more than 60% of them think the next party leader should be elected by a one member, one vote system.

If he does not have any measures to take, then he had better quit

Tokyo governor Ishihara on Finance Minister Miyazawa

But the outspoken former Liberal Democratic MP and Tokyo governor, Shintaro Ishihara, attacked the party leaders' comments on the crisis as dull and unproductive.

He advocated more radical measures, dismissing Finance Minister Kiichi Miyazawa's remarks that Japan is close to fiscal collapse as "apathetic" and liable to deepen people's insecurity.

"If he does not have any measures to take, then he had better quit," Ishihara told Asahi TV.

BBC Monitoring, based in Caversham in southern England, selects and translates information from radio, television, press, news agencies and the Internet from 150 countries in more than 70 languages.