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(L-R) Japan's Deputy Prime Minister and National Strategy Bureau Chief Naoto Kan, Finance Minister Hirohisa Fujii and Chief Cabinet Secretary Hirofumi Hirano listen to a speech by Prime Minister Yukio Hatoyama (not in picture) during a news conference at Hatoyama's official residence in Tokyo December 25, 2009. [Photo/Agencies] |
Possible Candidates
Hatoyama's support ratings have fallen under 50 percent in some polls due to concerns that he is unable to make tough decisions. Finding a successor for Fujii will be another test for him ahead of an upper house election in mid-2010.
Fujii's two deputies, Yoshihiko Noda and Naoki Minezaki, are possibilities for replacing Fujii, as well as other cabinet members such as National Strategy Minister Naoto Kan.
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"The concern in the market is whether there will be a delay in parliament deliberations on the budget," said Akitsugu Bandou, senior economist at Okasan Securities.
"It's better if a decision on whether he stays is made before parliament convenes. But it's also unclear whether there will be a smooth transition if a new person were to take over the job."
The government fears the economy could slide back into a recession this year as falling wages and persistent deflation dampen consumers' appetite to spend.
Japan approved on Dec 25 a record 92.3 trillion yen ($1 trillion) budget for 2010/11 that will inflate the country's debt.