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Japan military reform poses threat to Abenomics

Japan’s Prime Minister Shinzo Abe will this week push ahead with plans to loosen rules governing the military, even as analysts warn this could squander political capital needed to pursue tough economic reforms.

The military reform, a significant shift in Japan’s pacifist outlook, is just one piece of legislation scheduled for approval this summer.

Parliament normally closes in June but, according to political analysts, Mr Abe is set to prolong the current session into August as he pursues economic reform. The summer of legislation will be crucial for the prime minister’s Abenomics stimulus, which is aimed at ending 20 years of on-and-off deflation and restoring the country to sustainable growth.

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