Ruling Bloc's Election Defeat Threatens Key Government Policies

The government is facing potential disruption after the ruling coalition's loss in the general election on Sunday, which is likely to influence critical policies moving forward. This includes an economic package that is expected to be developed in the coming month, but the defeat may hinder its progress.

In light of the coalition losing its majority in the House of Representatives, Prime Minister Shigeru Ishiba is actively attempting to gather support from opposition parties to maintain stability within his administration. However, achieving effective coordination among the different political parties to address the ongoing issue of inflation could present significant challenges.

Moreover, the resulting political uncertainty following the election may slow down the process of preparing the fiscal budget for 2025. Such delays in addressing the budget would have adverse effects on citizens' daily lives, raising concerns about the overall economic impact of the government's shake-up.