Takaishi’s bid to become Japan’s first female prime minister is in doubt as ruling coalition splits news

The LDP leader calls the collapse of the coalition “very unfortunate” as the party faces a 37-seat deficit in the parliamentary majority.

Japan’s Komeito Party announced its withdrawal from its coalition with the Liberal Democratic Party Newly elected leader Sanae Takaishi She is awaiting a parliamentary vote to confirm her as Japan’s first female prime minister, which is now in jeopardy.

Tetsu Saito, leader of the Komeito Party, told party members on Friday that the 26-year partnership collapsed due to an “inappropriate” interpretation by the LDP of its handling of the political financing scandal that has rocked the ruling group.

He said Komeito would not support Takaichi in a parliamentary vote expected later this month. In response, Takaishi said that the collapse of the country’s ruling coalition was “very unfortunate.”

“We have cooperated for the past 26 years, including when we were out of power,” the LDP chief said of his junior partner, Komeito. “It is very unfortunate that this relationship has come to such a conclusion.”

Takaishi, who was chosen by the LDP as its new leader on Saturday and leans toward the party’s right wing, is now 37 seats short of a majority in the lower house of parliament. Without Komeito, it would need the support of at least two other parties to pass the legislation.

Opposition parties can present their candidates when Parliament meets to vote on the next prime minister.

Any candidate who receives a simple majority in the first round wins approval. If not, the two candidates with the most votes will go into a runoff.

The Liberal Democratic Party also has a minority in the less powerful upper house of parliament. It ruled Japan for most of the postwar period.

The selection of Takaishi as leader of the Liberal Democratic Party last week dampened market expectations for a near-term rate hike, sending stocks higher and weakening the yen.

It is known for its strong support of the stimulus policies adopted by former Prime Minister Shinzo Abe under the slogan “Abenomics.”

Komeito’s departure could unravel the so-called “Takaishi trade,” which was driven by investor optimism about fiscal stimulus.