Japan PM promotes rival, dumps finance minister

by Sanjay Jha | August 1, 2008 at 01:20 am

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In a big cabinet reshuffle fledging Japanse Prime Minister has dumped his finance minister and inducted his rival. With dipping ratings Prime Minister Fukuda wants to erase doubts about his leadership skills and boost the low ratings that threaten his grip on power after just 10 months in office, although a delay in deciding on the reshuffle has reinforced charges of indecisiveness.

Struggling Japanese Prime Minister Yasuo Fukuda will appoint popular rival Taro Aso in a key ruling party post and replace his finance minister, Japanese media said, as part of a shake up aimed at boosting his support among voters.

Fukuda, whose ratings are languishing around 25 percent amid complaints that he is indecisive, will tap current party secretary-general and former finance ministry bureaucrat Bunmei Ibuki for finance minister, private broadcaster NTV said.

Fukuda probably wants to draw on Aso's popularity to improve the ruling bloc's chances in a general election that must be held by September 2009 and could well come sooner, analysts said.

But a new line-up, which Japanese media said would probably see Fukuda replace more than half of his cabinet, was unlikely to end speculation over a snap election and could leave unclear the direction of policy as the global credit crisis hits the economy.

Ibuki earlier told reporters that Fukuda wanted the new cabinet to tackle the economic pain from high commodity prices.

"As we are facing difficulty with the direction of the economy, including rising raw material prices, although there are relatively few Japan-led factors, we need to address this issue," he said.

"Also, we need to restructure the country's economic system in response to structural changes from an ageing society and a declining birthrate."