5 September 2008 / REUTERS, TOKYO
Japanese economics minister Kaoru Yosano and former defense minister Yuriko Koike lined up on Thursday to challenge frontrunner Taro Aso in the race to become prime minister, setting up a clash over economic policy as Japan teeters on the edge of recession.
The winner likely will face an early general election -- possibly as soon as November -- Kyodo news agency said, as the main ruling Liberal Democratic Party (LDP) tries to capitalize on an anticipated wave of support for the new leader. Yosano has pushed for the Japanese government to curb its high public debt, while Aso has said that increasing state spending to stimulate growth is more important in difficult economic times. Koike's candidacy is backed by ruling party heavyweight Hidenao Nakagawa, who argues that Japan should cut wasteful spending and boost economic growth through structural reforms before raising taxes to tackle its tattered finances. Outspoken Aso, a 67-year-old former Olympic sharpshooter and a fan of comic books, is the top pick in voter polls to replace Prime Minister Yasuo Fukuda, who quit suddenly this week, but some in the ruling LDP worry he could derail fiscal reform.
