[Title] Press Conference by Prime Minister ISHIBA Shigeru

[Opening statement by Prime Minister Ishiba]

I apologize for calling this press conference at such short notice.

I have decided to resign from my position as the president of the Liberal Democratic Party (LDP). For that reason, I have just notified LDP Secretary-General Moriyama to implement the procedures for a party leadership election, that is to say, for an extraordinary party leadership election to be held when the party presidency becomes vacant during the term in office, in accordance with Article 6, Paragraph 2 of the LDP Rules. Accordingly, there is no need to undertake procedures for requesting an extraordinary party leadership election as laid out in Article 6, Paragraph 4 of the party rules. I would like Secretary-General Moriyama to commence with the procedures for electing a new party president.

It has been my strong belief that my administration had the duty to broker a path forward in our negotiations regarding the tariff measures imposed by the United States, which can rightly be called a national crisis. This past Friday, the signing of a Japan-U.S. memorandum of understanding on investment took place, alongside the issuing of a U.S. presidential executive order on the matter. Yesterday, I received a direct report on this matter from Minister Akazawa, upon his return to Japan. I feel that chapter has now come to an end.

I have long said that I will not cling to my post, and that I will make a decision at an appropriate time after accomplishing what needs to be done. I have also said that the responsibility for election results lies with me as the leader of the LDP. Having now finished a chapter in the negotiations on U.S. tariff measures, I believe that the appropriate time to make a decision is in fact now, and on that account, I have decided to pass the reins of government on to the next generation. Until the new party leader is chosen, I will steadily carry out all my duties to the Japanese people, and I will entrust the future to the new party leader and prime minister.

The fact that I have been able to serve as prime minister thus far for roughly one year despite our being a minority ruling party is thanks to the support of the members of the LDP, our coalition partner Komeito, and also members of the public, and I express my heartfelt gratitude for that. Thank you all most sincerely.

I did my utmost to engage in Diet deliberations that were sincere and full of integrity, befitting our "deliberative Diet" in which consensus building was achieved by transcending party lines. I made every effort to speak as much as possible in my own words.

I also wish to express my appreciation to all the members of the various political parties and factions who made efforts and provided cooperation to us during my tenure in office. I thank you all most sincerely.

As a result, despite being a minority ruling party, during last year's extraordinary Diet session and this year's ordinary Diet session, 67 out of 68 bills submitted by the Government, including on active cyber defense, were passed, and all 13 treaties were ratified. This outcome arose from people in the party and on the frontline putting in a tremendous amount of work. It was only thanks to them that we were able to achieve such an outcome.

My administration has undertaken various initiatives motivated by the desire to extend a helping hand to those undergoing true hardship and suffering. As one part of these, in the supplementary budget for fiscal 2024, we took measures providing benefit payments to low-income individuals and prioritized assistance grants. In fiscal 2025, we also raised the so-called "1.03 million yen barrier" -- the income threshold for second earners above which tax benefits decrease -- resulting in reductions in income taxes.

This past Friday, the minimum wage levels for all prefectures were compiled, with the results being a national weighted average minimum wage of 1,121 yen per hour, a record high, incorporating an increase of 66 yen per hour, also an unprecedented amount. As a percentage, this means a 6.3 percent rise in our minimum wage. This also contributes to a narrowing of the wage gap that exists among prefectures. Real wages for July were also announced the same day and showed the first positive increase in seven months. We attained this outcome thanks to the dedicated efforts of many people. The mindset in which wage increases are the key to our growth strategy has steadily permeated society and is now yielding fruit.

With regard to disaster management as well, from a desire to lessen the burdens borne by people suffering once a disaster strikes, we have worked to improve the living conditions in evacuation centers. Whether it be through providing light trucks with toilets built in, food trucks, or cardboard beds, my administration remains strongly committed to extending as much assistance as possible to those in the most trying situations and those going through the toughest times. We have doubled the number of personnel as well as the budget for the Cabinet Office's Disaster Management Bureau compared to fiscal 2024. In fiscal 2026, we are also establishing the Disaster Management Agency, led by a dedicated minister, which will be amply staffed by experts and receive a sufficient budget.

As one of the most disaster-prone countries in the world, Japan must also be the best worldwide in disaster response. That is my unwavering conviction. We must do everything possible to reduce the damage from disasters, which are increasing in both frequency and severity, as much as possible. I believe this is incumbent upon us as a nation. It is not a matter or whether, but when, large-scale disasters such as a major earthquake directly under the capital region or an earthquake in the Nankai Trough will occur. We must develop systems preparing for such contingencies without even a moment's delay.

We decided to promote increases in rice production beginning in fiscal 2025 because of the soaring rice prices we have experienced since fiscal 2024. We have decided to shift to a new rice policy to ensure that consumers are able to purchase rice in a stable manner while also safeguarding the income of motivated producers so that they can increase production free from worries. Ever since my time as Minister of Agriculture, Forestry and Fisheries in the Aso Cabinet over a decade ago, this has been a deeply held conviction of mine. From now, we will set about giving that policy concrete shape.

Expo 2025 Osaka, Kansai, Japan is another area the Government has been investing substantial effort. With attendance already surpassing 20 million, the expo is now expected to turn a profit.

Many foreign leaders have taken advantage of the opportunity of the expo to visit Japan. Including those leaders, since taking office in October last year, I have had over 150 summit meetings with the leaders of 89 countries and organizations.

It is against that backdrop that my administration has succeeded in further deepening the Japan-U.S. alliance, including through our tariff negotiations, as well as strengthening our cooperation with like-minded countries and building relationships of trust with a wide range of nations, including the ASEAN countries, India, and other Asian countries and nations in Oceania, Africa, and Latin America and the Caribbean. I have had a number of telephone and face-to-face meetings with President Trump. I have also had truly fruitful and sincere meetings with President Lee Jae Myung of the Republic of Korea and Prime Minister Modi of India.

We must further pursue understanding and solidarity with the countries of Asia. It is only natural that we reinforce our alliance with the United States of America, but at the same time, [we must strengthen our relationships with] Asian and African nations, as well as European nations, with which we have enjoyed deep ties for quite a long time. Over the past year, I have come to feel very keenly that Japan has an absolutely essential role to play in the world. I very much hope that the next party leader and prime minister will carry this idea forward. I wish to express my truly heartfelt appreciation to the many people who provided support for the diplomacy my administration pursued.

All that said, if I ask myself whether or not I was able to meet the expectations of so many people when I was elected Liberal Democratic Party president last September, I have a truly painful sense of remorse at my own shortcomings.

I have been advocating regional revitalization as necessary for Japan's economic growth and also for overcoming our dwindling birthrate and aging population problem. I myself grew up in an area outside of our major cities and I served as the very first Minister for Regional Revitalization. As one who truly and acutely realizes how our rural areas have declined, regional revitalization has been something I have most wanted to achieve.

It was with that frame of mind that I positioned Regional Revitalization 2.0 as "the Reiwa Era remodeling of the Japanese archipelago" and set to work on it as a key policy area. My administration doubled the new regional revitalization grants and also established the Escort Runner System for Regional Revitalization, through which national civil servants provide support for local governments in a manner that stays faithful to their needs.

Our objective was to build connections between the national government and local governments in rural areas by having personnel from both levels laughing together, crying together, and working hard together, with the national civil servants standing truly shoulder to shoulder with the local area civil servants, rather than the national government having a higher status or rank.

On that basis, we compiled a "Basic Concept" that looked a decade into the future, established the "Local Area Resident Registration System," and put forward a plan by which 10 million people would build up ongoing relationships with particular local areas. However, I firmly believe that if we are to break away from the heavy concentration of people and institutions in Tokyo and realize regional revitalization, even bolder and more powerful measures will be necessary. Regrettably, I must say that our efforts remain only halfway towards achieving that goal.

With regard to wage increases as well, while we are indeed seeing changes in the overall direction, it will be necessary for us to accelerate our measures further in order to ensure that wage growth outpacing the rise in prices becomes firmly rooted as a practice in our society and that people to feel it tangibly. We must transition into a society where anyone who wants to work is able to do so, regardless of age, in both our urban and rural areas, and for men and women alike. I firmly believe we must make it so that people are able to receive compensation that matches their labor. In particular, higher wages should be paid to those who support us in our daily lives in fields such as nursing care, welfare, and medical services.

We need further measures by the Government to make well-established in society the mindset that rising wages are natural and something to be expected. We must also formulate measures that promote and provide well-tailored support for changes in corporate behavior that increase the percentage of corporate income that goes to workers as wages.

In order to realize a virtuous cycle in which wage increases lead to greater consumption, we need a social security system that serves as a safety net, a social security system that is sustainable, and a social security system that will function properly in the next era as well. Ensuring peace of mind is an indispensable matter for both Japan as a nation and the Japanese people. While my view of consumption tax revenues as a valuable source of funding remains unchanged, I also feel with my whole being that the consumption tax and social insurance premiums impose an extremely heavy burden on those in the working generation, especially those in the lower income bracket.

In order to responsibly pass our social security systems such as our healthcare, nursing care, and pension systems on to the next generation, we must embrace the views of both ruling and opposition parties as we press forward with our discussions, including the allocation of the benefits and the necessary burdens.

With regard to our tariff negotiations with the United States, while I am confident that the agreement we recently concluded will serve as a cornerstone as we work to ensure Japan's economic stability and dramatically accelerate our economic growth, it does not mean the matter is fully resolved. What comes next is ensuring that the agreement is implemented. And, should any new concerns emerge, it will be necessary to respond appropriately.

This agreement was brokered based on the relationship of trust that exists between my administration and the Trump administration. Accordingly, it was incumbent upon my administration to fulfill that responsibility regarding its implementation. It is, therefore, a point of deep regret that this is how the situation has unfolded.

Japan's export product categories amount to some 6,000 in total, with over 4,000 of them being exported to the United States. We must thoroughly dispel the sense of anxiety felt by the companies and business operators dealing with each one of these export items and create a more robust economy in Japan. It is my earnest wish that the new administration will carry on with the relationship of trust enjoyed between the Japanese and U.S. governments and implement our agreement without fail.

We have steadily advanced the fundamental reinforcement of our defense capabilities in response to the most severe and complex security environment of the post-war period. Ever since I first assumed this post, I have been saying that no matter how magnificent our aircraft, land vehicles, or ships may be, they are useless without personnel to operate them. As for improving the treatment of Self-Defense Forces personnel, the human foundation of our defense, my administration established a meeting of relevant ministers and the Government has been working as a united whole to address this issue, with positive results already evident to some degree.

The other day, a military parade was held in China. Seeing the leaders of China, Russia, and North Korea standing side by side, I cannot help but feel grave concern, thinking that the security environment may become more severe in the future.

I underscored several times at the G7 Summit in Kananaskis as well that the security environments of Europe, the Middle East, and East Asia are all closely connected. The enhancement of Japan's deterrence, including ensuring the soundness of the United States' nuclear deterrence and preparing shelters [against missiles or other hostile threats], is a matter of urgency. Methods of combat are rapidly evolving, as we have seen in the fighting taking place in Ukraine. We must proactively undertake the reinforcement of our defense capabilities, acting to enhance our defense capacity through our own volition, not because someone told us to do so. At the same time, it goes without saying that we must cultivate trust with other nations through dialogue.

The abductions issue is, at its essence, a violation of national sovereignty and a time-sensitive humanitarian issue with no time to spare, as the abductees and the families of the victims continue to age. Returning to the starting point of the Japan-DPRK Pyongyang Declaration, my administration has worked to realize the return of all the abductees to Japan at the earliest possible date and to resolve the various outstanding issues of concern with North Korea. I feel the utmost regret that despite those efforts, we have been unable to achieve our aims.

Regarding political reform, last year, as LDP president, I set forth a course of action of abolishing policy activity expenses, disclosing the use of the allowance covering research, public relations, and accommodation expenses and returning any remaining funds, and establishing at an early time a third-party organization [to monitor and audit political funds] based on the amended Political Funds Control Act. And by the end of 2024, the amended Political Funds Control Act was enacted by the Diet. Nevertheless, we have still failed to dispel the public's distrust of politics, notably concerning issues of politics and money. This is for me a matter of the greatest regret. Our Liberal Democratic Party must set things straight.

Our LDP must never become a party that cares only about the present moment or only about itself. We are a conservative party that places emphasis on tolerance and inclusion. We must be a true party for the people. I have become increasingly concerned that if we, the LDP, should ever lose the public's trust, politics in Japan may well degenerate into shallow populism.

Despite my conviction that I have more things I need to accomplish, I have made the painful decision to step down. That is because I feel an unmistakable division might arise within the party if we proceed to confirming the intention to request an extraordinary party leadership election in accordance with Article 6, Paragraph 4 of the party rules. That is by no means what I intended.

It is my sincere and profound hope that all the members of the LDP share that outlook and will work together to overcome this difficult situation. If the Japanese public perceives us as no different from the old LDP, then the party has no future. We must achieve a complete overhaul of the party in the truest sense, equivalent to starting from scratch. I appeal earnestly to my fellow party members and our party supporters for their cooperation so that we transform today's turn of events into the first step towards that goal.

I extend my profound apology to all the Japanese people for resigning from office in this way. I apologize most sincerely. During my remaining tenure, I will devote myself fully to addressing the issues that the public is urging us to tackle. I sincerely ask for your understanding.

That concludes my opening statement. Thank you very much.