The Liberal Democratic Party elected Takaichi, 64, to regain trust from a public angered by rising prices and drawn to opposition groups promising big stimulus and clampdowns on foreigners.
But this is not assured as the party and its coalition partner lost their majorities in both houses under Ishiba in the past year.
A former internal affairs minister with an expansionary economic agenda, Takaichi inherits a party in crisis.
“Recently, I have heard harsh voices from across the country saying we don’t know what the LDP stands for anymore,“ said Takaichi in her speech before the second-round vote.
Takaichi, who says her hero is Margaret Thatcher, Britain’s first female prime minister, offered a starker vision for change than Koizumi and is potentially more disruptive.
Such a policy shift could spook investors worried about one of the world’s biggest debt loads. Takaichi has also raised the possibility of redoing an investment deal with U.S. President Donald Trump that lowered his punishing tariffs in return for Japanese taxpayer-backed investment.
She also favours revising Japan’s pacifist postwar constitution and suggested this year that Japan could form a “quasi-security alliance” with Taiwan, the democratically governed island claimed by China.
If elected, Takaichi said she would travel overseas more regularly than her predecessor to spread the word that “Japan is Back!” Takaichi is expected to hold a press conference around 0900 GMT. - Reuters
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