Kishida’s New Capitalism and its implications for EU-Japan relations

On 10 July 2022, The LDP's strong victory in the Senate elections following the attack on former Prime Minister Shinzo Abe provided Kishida with the authority and legitimacy to carry out his New Capitalism policies. "Kishidanomics" will address many issues impacting foreign economic policy, directly affecting Japan's historical partners such as the European Union.

On 7 June 2022, the Japanese cabinet approved the first annual fiscal and economic policy guidelines established under Prime Minister Fumio Kishida, as part of his “Grand Design for New Capitalism”. The “New Capitalism” plan pledges modernization of the Japanese economy through greater support of innovation, decarbonization, and digitalization, towards positive growth and a better distribution of wealth. In this EIAS Policy Brief, in light of the 8 July 2022 attack on Shinzo Abe and the senatorial elections following, we analyse what will Kishida’s economic policy focus on, and how it will substantiate itself in Japan and EU-Japan relations. You can read the Policy Brief here.

Author: Sarah Herman, EIAS Junior Researcher

Photo Credits: Commons WIkimedia