Japan PM set to step down

Japan's unpopular prime minister Naoto Kan confirmed today he would step down as head of the ruling party this week if two key…

Japan's unpopular prime minister Naoto Kan confirmed today he would step down as head of the ruling party this week if two key bills were enacted, clearing the way for a new leader to try to cope with the country's nuclear crisis and slew of economic ills.

The race to become Japan's sixth leader in five years was blown wide open yesterday when former foreign minister Seiji Maehara (49) decided to run.

That cut the chances of finance minister Yoshihiko Noda, a fiscal conservative. The support base for the two men overlaps in the Democratic Party of Japan (DPJ) - and whoever is elected next week as leader of the party with control of the lower house will become prime minister.

Mr Kan told a parliamentary panel: "On Friday if the two pending bills pass parliament by then, I will resign as head of the DPJ. Then, when the new leader is chosen, I will quit as prime minister."

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Japan's new leader must grapple with a soaring yen that threatens exports, rebuild from the March earthquake and tsunami, end a nuclear crisis at the crippled Fukushima plant and forge a new energy policy - all while trying to curb public debt and cure the ills of a fast-ageing society.

But concerns run deep as to whether the next prime minister will fare any better than his predecessors in the face of a divided parliament and ruling party split by policies and personal feuds.

Mr Kan, whose voter support has sunk below 20 per cent, pledged in June to step down after achieving certain tasks. With key bills expected to pass this week, the DPJ is set to pick a successor on August 29th. One of those bills, to promote renewable energy sources such as solar power, was approved by a lower house panel today.

Mr Maehara is a security expert who has irritated China by warning about its growing military might and has lately put beating deflation at the top of his policy list. Japanese media said he would announce his candidacy later today.

At least five other lawmakers are considering a run at the nation's top job, including farm minister Michihiko Kano (69). An 11-term veteran, his policies are vague but he could win backing from those keen for an experienced hand at the helm.

Mr Noda (54) had hoped to win the backing of Mr Maehara - the most popular potential candidate among voters - in his push to replace Mr Kan. The prime minister has come under fire for his response to the triple March disasters despite public backing for his vision of a future free of dependence on nuclear power.

Reuters