Aso not considering election this year due to financial crisis

TOKYO, Oct. 28 Kyodo - Prime Minister Taro Aso has decided not to call a general election this year, given the need to tackle the global financial crisis and deepening signs of economic recession, sources close to Aso said Tuesday.

Although his ruling Liberal Democratic Party's coalition partner, the New
Komeito party, is still calling for an election to be held on Nov. 30, as has
been widely speculated, Aso has told coalition members, ''For the time being I
simply cannot create a political vacuum. I will give priority to economic and
financial measures,'' according to the sources.
Aso's decision not to call an election at least until early next year could
well trigger an outcry from the main opposition Democratic Party of Japan,
which may up the ante in stalling current Diet deliberations in an attempt to
force an election it has repeatedly called for.
Slumping support rates for his Cabinet appear to be behind Aso's plan, and he
will likely focus on implementing the economic stimulus measures and hope for a
rise in popularity, analysts say.
Aso met New Komeito leader Akihiro Ota and other top leaders of the coalition
partner Sunday night, when he is believed to have revealed his decision against
calling an early election but failed to secure an agreement, the sources said.
Ota will likely again urge Aso to reconsider his decision at their meeting
scheduled for Thursday but Aso is unlikely to change his mind, the sources
said.
The immediate tasks facing Aso include drawing up and executing more economic
stimulus measures and soon enacting a bill to bolster the banking industry with
an option to enable public fund injections into local financial institutions.
Aso said the government will announce its additional economic stimulus package
on Thursday.
''I have given instructions that it (the package) clearly show that the
government has hammered out solid measures'' to improve the economy, people's
livelihoods and financial situations, Aso told reporters.
Deliberations on the bill began at the House of Representatives plenary session
Tuesday, with Aso seeking the DPJ's cooperation for its early enactment.
''The government will proactively agree to hold talks if there are specific
proposals from opposition parties and we would be able to promptly achieve a
better bill through Diet committee deliberations,'' Aso said in the session.
But the DPJ, which has been showing a cooperative stance toward Aso in managing
Diet affairs to pass key bills, such as one to extend Japan's refueling mission
in the Indian Ocean, in the hope that helping Aso clear his priorities would
lead him to call an early general election, is now likely to change its stance.
DPJ Diet affairs chief Kenji Yamaoka said the party will refuse to vote by the
end of this month on bills to continue the refueling mission and to help the
banking industry in the opposition-controlled House of Councillors.
''We will thoroughly deliberate necessary issues,'' Yamaoka told reporters.
Meanwhile, Aso will also likely state what role Japan can play in the current
financial upheaval at two summit meetings in November -- the Nov. 15 Group of
20 emergency meeting in Washington on the financial crisis and the Nov. 22-23
summit of the Asia-Pacific Economic Cooperation forum in Lima.
LDP Secretary General Hiroyuki Hosoda, who had been saying that an early
election would be preferable, indicated Tuesday he would support Aso's
decision.
''It is up to the prime minister if he wants to give most attention to the
unprecedented fall in stock prices and the financial situation,'' Hosoda said
at a news conference.
Aso, who came to power on Sept. 24, has until September next year -- when the
current four-year term of the members of the House of Representatives expires
-- to call an election.