What Comes Next for Japan’s Ruling Party After Its Election Setback

The Liberal Democratic Party has ruled Japan for all but about four years since the movement’s founding in 1955, but lost its majority in an election on Oct. 27, creating political uncertainty at a time of heightened global anxieties. A new government must be formed by the end of November, with both the LDP and the main opposition party seeking enough support from smaller parties to run the world’s fourth-largest economy. LDP policy priorities such as tax hikes to pay for increased spending for the military may have to be adjusted to win over the small parties, most of whom want tax cuts and more money for households.

The center-right LDP and its long-time junior coalition partner, Komeito, have so far indicated they are trying for a minority government and not seeking a new partner. This means they’ll need to cooperate with some of the smaller parties on issues where they agree. It also means the LDP may struggle to set and implement its political agenda.