Japan's Democratic party discusses new ministry to oversee recovery

01 Sep 2009

Yukio Hatoyama, Japan's likely next prime minister, met senior party leaders on Tuesday to discuss a new cabinet, which is expected to include a new post to oversee strategy and steer the country out of the worst economic downturn since World War II.

Diplomacy particularly relations with top ally US was also expected to be high on the agenda.

Hatoyama's Democratic Party of Japan won a landslide mandate in the parliamentary elections over the weekend. Hatomaya has moved quickly to form a coalition with smaller allies and meet with senior leaders of his own party to assure a smooth transition.

Hatoyama will formally replace the Liberal Democarts' Taro Aso at a special session of parliament in the next few weeks.

Hotoyama's Democrats trounced the ruling Liberal Democratic party that has enjoyed almost uninterrupted power over the past 54 years. The party now has to address severe problems on the economic front, including record-high unemployment and rebuilding the Japanese economy, the world's second largest.

Analysts expect Hotomaya to move first to create a cabinet post to oversee fiscal policy and other top national strategy issues. He is also expected to name one of the party's most senior members to the post of finance minister.