Tuesday, February 22, 2011

Japanese Ruling Party Suspends Ex-Leader, Architect of Historic Legislative Takeover

Japan's ruling party has suspended former leader Ichiro Ozawa, following his indictment on charges of violating campaign finance laws.
Ozawa was formally charged January 31 with falsifying fund-raising reports for the Democratic Party of Japan, which he guided to its first landslide victory in the 2009 elections. The victory ended the near five-decade rule of the conservative-leaning Liberal Democratic Party.
The DPJ suspended the 68-year-old Ozawa for the duration of his trial, after he rejected repeated calls from Prime Minister Naoto Kan to voluntarily leave the party.
In a statement Tuesday, Ozawa said there is no rationale for the suspension.
Mr. Kan's approval ratings have plummeted to 20 percent since taking office last June, due to Japan's stagnant economy and massive public debt. He is dealing with a revolt from 16 members of his own party who have vowed to oppose his $1 trillion budget and a plan to increase the nation's five percent sales tax. All of the rebellious lawmakers are allied with Ozawa.
The revolt means Mr. Kan will not have the necessary votes to push the bill through Japan's lower house of parliament, despite the DPJ's majority hold on the chamber, increasing the possibility he will be forced to call a snap election.