Last Updated Mon, 08 Aug 2005 08:44:54 EDT
CBC News
Japan's Prime Minister Junichiro Koizumi surprised his country on Monday with an election call after losing a crucial economic reform vote in parliament.
Japan's Prime Minister Junichiro Koizumi. (AP file Photo)
INDEPTH: Japan
Voters in Japan will head to the polls on Sept. 11.
The election call came after defections from Koizumi's Liberal Democratic Party (LDP) resulted in his losing a vote to privatize Japan's postal system.
The vote was defeated by 125 to 108.
Postal reform is a cornerstone of a sweeping economic package Koizumi has wanted to implement since he swept to power in 2001.
After losing the vote, Koizumi called an emergency cabinet meeting and decided to dissolve the lower house of parliament.
The defeat highlights serious divisions within Koizumi's party, and observers say the party could split into several camps once the campaigning begins at the end of August.
"I will smash the old LDP and forge ahead with a new LDP," Koizumi is quoted as saying after the vote.
Some parliamentarians called the move a mistake.
"There is no justification. It's like suicide bombing," said LDP lower house lawmaker Housei Norota, who had opposed the bills.
The postal service has an estimated $3 trillion US in holdings, including banking, life insurance and mail delivery.
Privatization would result in Japan Post becoming the world's largest bank.
CBC News
Japan's Prime Minister Junichiro Koizumi surprised his country on Monday with an election call after losing a crucial economic reform vote in parliament.
Japan's Prime Minister Junichiro Koizumi. (AP file Photo)
INDEPTH: Japan
Voters in Japan will head to the polls on Sept. 11.
The election call came after defections from Koizumi's Liberal Democratic Party (LDP) resulted in his losing a vote to privatize Japan's postal system.
The vote was defeated by 125 to 108.
Postal reform is a cornerstone of a sweeping economic package Koizumi has wanted to implement since he swept to power in 2001.
After losing the vote, Koizumi called an emergency cabinet meeting and decided to dissolve the lower house of parliament.
The defeat highlights serious divisions within Koizumi's party, and observers say the party could split into several camps once the campaigning begins at the end of August.
"I will smash the old LDP and forge ahead with a new LDP," Koizumi is quoted as saying after the vote.
Some parliamentarians called the move a mistake.
"There is no justification. It's like suicide bombing," said LDP lower house lawmaker Housei Norota, who had opposed the bills.
The postal service has an estimated $3 trillion US in holdings, including banking, life insurance and mail delivery.
Privatization would result in Japan Post becoming the world's largest bank.
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