Japan Prime Minister Mori says he will resign

Confirming what everyone already knew the unpopular Japanese Prime Minister Mr Yoshiro Mori said today he had decided to resign…

Confirming what everyone already knew the unpopular Japanese Prime Minister Mr Yoshiro Mori said today he had decided to resign.

Former premier Mr Ryutaro Hashimoto jumped to the front of a pack of possible replacements.

"I think it necessary to restore public trust in politics under a new government and deal with a mountain of issues at home and abroad. Therefore, I have decided to resign," Chief Cabinet Secretary Mr Yasuo Fukuda, speaking at a news conference, quoted Mr Mori as saying at a morning cabinet meeting.

The long-awaited formal decision came a year and a day after Mr Mori stepped into the top job. He was put in the post by a cabal of ruling Liberal Democratic Party elders after his predecessor suffered a fatal stroke.

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It came just as Japan approved a package of economic steps to bolster its flagging economy by helping banks to tackle their mountain of non-performing loans and supporting the stock market.

LDP policy chief Mr Shizuka Kamei told reporters the package would be implemented no matter who became prime minister.

"This has been decided by a formal body and even if a new LDP president is elected, naturally these policies will be implemented," he said.

The LDP, the dominant party in Japan's ruling coalition, decided yesterday to hold an election to replace Mr Mori as party chief and hence almost certainly as prime minister on April 24th.