Takaichi’s Smartest Move Yet? The Political Shock of Naming Satsuki Katayama Finance Minister

Prime Minister Takaichi, who has experienced caring for both her parents as well as nursing her husband

Prime Minister Sanae Takaichi (64), appointed as the 104th Prime Minister and the first woman to hold the office, revealed that on October 25 she held a phone conference with U.S. President Trump while visiting Malaysia, and conveyed that strengthening the Japan–U.S. alliance is the administration’s top priority in foreign and security policy.

A Japan–U.S. summit meeting is scheduled for the 28th, and Takaichi’s leadership abilities will be put to the test.

Among the cabinet members supporting Prime Minister Takaichi are rivals from the presidential race: Shinjiro Koizumi (44) appointed as Defense Minister, Toshimitsu Motegi (70) as Foreign Minister, and Yoshimasa Hayashi (64) as Internal Affairs and Communications Minister. Along with Takayuki Kobayashi (50), already serving as Policy Research Council Chair, she has assembled a characteristically strong and weighty lineup by placing her rivals in key cabinet and party positions.

At her inaugural press conference, Prime Minister Takaichi described the current situation of a minority government as a difficult departure, and stated confidently:

“This is a cabinet of decisions and progress. Together with the people, we will move every policy forward—one step, even two steps.”

A Liberal Democratic Party insider said:

“Her work balance remark caused controversy among the public, but inside the LDP, it made clear her determination and left a good impression. Everyone in the party knows that she returns weekly to her family home in Nara to help care for her parents—taking out the trash and so on—and that she supports her husband, Taku Yamamoto (former House of Representatives member, 73), who suffered a stroke. So when she said she would work, work, and work, you could feel her extraordinary resolve.”

Many LDP lawmakers reportedly felt reassured by Takaichi’s single-minded pursuit of the prime ministership.

Meanwhile, one particular cabinet appointment has become a hot topic within the party:

“The most brilliant move was appointing Satsuki Katayama (66) as Finance Minister,” said the same LDP insider.

“Prime Minister Shigeru Ishiba (68) tried to campaign on a consumption-tax cut during the upper house election, but in the end the Ministry of Finance pushed through a mere 20,000-yen benefit payment instead. Even the promised abolition of the 1.03-million-yen income barrier in cooperation with the Democratic Party for the People was quietly smothered by the ministry and then–Tax Commission Chair Yoichi Miyazawa. But with Katayama, the Ministry of Finance won’t be able to easily talk her down.”

He consistently ranked first in the nation on high-school mock exams

That is why expectations within the party are high for Katayama as “Finance Minister.” A Nagatachō insider spoke about her true character:

“Katayama was such a prodigy that she consistently ranked first nationwide in high-school mock exams. So even within the elite group of the University of Tokyo and the then–Ministry of Finance, her abilities were reputed to be outstanding. On the contrary, Katayama probably thought, ‘Everyone around me is an idiot,’ haha. Unlike someone like former Tax Commission chairman Miyazawa, who seemed to simply follow the Finance Ministry’s lead, Katayama’s personality is such that she looks down on Finance Ministry bureaucrats from the start. For the Finance Ministry, she is probably the last person they wanted as minister, while for Prime Minister Takaichi, she is the perfect person to tame the troublesome Finance Ministry.”

When Katayama arrived at the Finance Ministry for the first time as minister on October 22, she responded to reporters’ questions by saying:

“I am overwhelmed with emotion to be able to return as minister.”

She seems deeply honored by Prime Minister Takaichi’s appointment and is reportedly highly motivated.

Regarding this personnel decision, political commentator Harumi Arima said to our site:

“What makes this appointment impressive is that it also carries major significance for the upcoming summit with President Trump, who will soon visit Japan. As Finance Minister, Katayama may not appear prominently in public, but one of the major agenda items is a substantial increase in defense spending. Katayama, who became the first female budget examiner and has overseen defense budgets, understands financial flows down to the smallest detail. If she sees fit, she can cut certain budget areas and redirect funds toward defense—without simply obeying Finance Ministry bureaucrats, but by making her own decisions.”

The Finance Ministry is said to wield the greatest power among all government ministries. Now Katayama has returned there as its minister. Will she prove to be a powerful engine for realizing Prime Minister Takaichi’s policies?