Sanae Takaichi the Politician: Her Persona and Trajectory

Before evaluating her administration, it is essential to re-examine the persona of the leader, Sanae Takaichi.
She is more than just a conservative politician from the LDP. Her career has been a continuous series of challenges against existing frameworks and the "glass ceiling."

The Origins of Her "Strength" as a Private Citizen

Surprisingly, her intense personality was shaped during her student days.
She was active as a heavy metal rock drummer and is known as a genuine motorcycle enthusiast, riding a Kawasaki Z400GP. This preference for "strength" and "intensity," along with the drummer's quality of keeping the rhythm and leading the ensemble, underpins her top-down political style today.

Furthermore, her robust view of the state cultivated at the Matsushita Institute, combined with her experience as a Congressional Fellow in the office of U.S. Congresswoman Pat Schroeder, forms the foundation of her pragmatic and tough diplomatic negotiation skills.

Political Career and Convictions

Since her first election in 1993, she has consistently advocated policies driven by the dual wheels of "National Sovereignty" and "Economic Growth."
She theoretically supported the promotion of Abenomics as the LDP Policy Chief, executed administrative reforms such as NHK reform and mobile phone rate reductions as Minister of Internal Affairs and Communications, and played a pivotal role in establishing the Security Clearance system as Minister for Economic Security right before her premiership. Her track record always lies in the fusion of "Defense (Security)" and "Offense (Economic Growth)."

While she describes herself as a "policy wonk" who obsesses over detailed data and logical construction, she also holds a staunch conservative ideology, as seen in her visits to Yasukuni Shrine.
This combination of "extremely high practical capability" and "unwavering strong ideology" is the driving force of the current Takaichi administration, while simultaneously serving as a spark for friction both domestically and internationally.

Introduction: 2025, A Turning Point for Japan

As of December 3, 2025, approximately one month has passed since the inauguration of the Takaichi administration. Amidst deepening global division and conflict, Japan has shifted its helm significantly from the previous "coordination-style" politics to a "unique path of autonomy."

In contrast to the previous administration's emphasis on "listening skills," Prime Minister Takaichi has normalized rapid decision-making through a top-down approach. This has brought intense tension and a certain kind of vitality to the bureaucracy and industrial circles.
While the departure from "indecisive politics" was a change long awaited by many citizens, the sheer speed of this shift has caused friction in various quarters.

This report comprehensively verifies the current administration's management, focusing on the progress of "Sanaemics," the reality of diplomatic and security policies, and the perspectives from Western nations.

Economic Policy Verification: Not "Sanomics" but "Sanaemics"

The economic policy, incorrectly labeled "Sanomics" by some overseas media and domestic reports, is correctly termed "Sanaemics."
It is a more aggressive economic doctrine that inherits the "three arrows" of Abenomics (bold monetary policy, flexible fiscal policy, and growth strategy) while adding a new pillar: "Crisis Management Investment."

1. From "New Capitalism" to "National Resilience Investment"

The core of Sanaemics lies in concentrating investment on national defense, energy, and advanced technology, even if it means temporarily shelving fiscal discipline.

In the FY2025 budget, "strategic fiscal spending" was executed on the largest scale in history, not only for defense spending increases but also for cybersecurity, quantum technology, and AI sectors. By unhesitatingly injecting massive funds into the market via government bonds as an "investment for the future," special demand has been created for domestic defense industries and tech companies, serving as a supporting factor for the Nikkei Stock Average.

2. A Major Shift in Energy Policy

Based on the Prime Minister's conviction that "there is no economic growth without energy security," energy policy has undergone a dramatic transformation. The acceleration of Next-Generation Innovative Reactors (SMRs) development and the restart process of existing nuclear power plants are being powerfully promoted.

Although public opposition remains strong, the establishment of a concrete roadmap towards stabilizing power supply and curbing industrial electricity rates has been highly evaluated by the industrial sector, including Keidanren.

3. The Dilemma of High Prices and Wage Hikes

On the other hand, the continuation of aggressive fiscal policy and monetary easing (maintaining a weak yen trend) has led to persistently high import prices.

While wage hikes are progressing at a high level mainly among large corporations, the "trickle-down" effect to SMEs and local economies suffering from cost-push inflation is only halfway there. Whether positive real wages can take root remains the administration's biggest Achilles' heel, determining its approval ratings.

Views on the Takaichi Administration from the U.S. and EU

How are Prime Minister Takaichi's hawkish diplomatic stance and aggressive fiscal policy perceived by allies and friendly nations? We summarize the "external evaluation" revealed through diplomatic and trade negotiations, such as the 2025 G7 Summit.

USA: Welcome in Security, Caution in Economy

Washington (the White House and the Pentagon) strongly welcomed the birth of the Takaichi administration from a security perspective.
In particular, the strengthening of deterrence against China, the increase in defense spending to over 2% of GDP, and legal developments in the cybersecurity field (such as discussions on introducing active cyber defense) are highly praised as a "qualitative enhancement" of the Japan-U.S. alliance. Japan's status as a "reliable ally" is higher than ever.

However, there is an air of caution in the trade and economic sectors. This is because Sanaemics, which prioritizes "investment to protect Japan," sometimes takes on a protectionist hue.
Specifically, the USTR (Office of the United States Trade Representative) continues to monitor whether supply chain reshoring policies based on Japan's Economic Security Promotion Act will become barriers to entry for U.S. companies. In summary, Washington's true sentiment is likely: "She is the best partner for security, but there are concerns about economic nationalism."

EU: Shared Values, Concerns over Fiscal & Environment

EU countries, especially NATO members, highly appreciate Prime Minister Takaichi's clear commitment to support for Ukraine and security in the Indo-Pacific. Japan's leadership in clearly articulating "the rule of law" and "opposition to unilateral changes to the status quo by force" functions as a crucial element in strengthening G7 unity.

On the other hand, European economic experts and media have raised concerns about Japan's fiscal sustainability (increasing debt) due to the continuation of Sanaemics' "bold monetary easing and fiscal spending."

Regarding environmental policy, comments from environmentally conscious nations like Germany and Nordic countries suggest "a difference in approach to decarbonization" regarding her realistic stance of emphasizing nuclear power and technological innovation (such as fusion) rather than relying solely on renewable energy. For the EU, the Takaichi administration is positioned as a "comrade in geopolitics, but a partner requiring discussion in economic and environmental policies."

Conclusion: Evaluation to Date and Future Outlook

Summarizing the trajectory of the Takaichi administration as of December 3, 2025, we conclude that "the speed of decision and execution is unprecedented, but managing the side effects remains a future challenge."

Achievements (Positive)

• Establishment of Economic Security:
  By implementing the security clearance system and strengthening supply chains for critical materials, the administration has completed the legal and practical framework, leveling the playing field for Japanese companies internationally.
• Enhanced Diplomatic Presence:
  Through a resolute diplomatic style of "saying what needs to be said," Japan has demonstrated a unique presence in the international community, particularly in its engagement with the Global South.
• Complete Dispelling of Deflationary Mindset:
  The strong will to achieve inflation targets has shifted the long-ingrained corporate mindset of "holding back investment," boosting R&D and capital expenditures.

Challenges (Negative)

• Concerns over Widening Inequality:
  Household support measures against rising prices were seen lagging due to fiscal discipline considerations. There are concerns about the widening gap between asset holders and non-asset holders.
• Division of National Consciousness:
  Divisions between the support base (conservatives) and critics (liberals/independents) have deepened regarding historical perceptions, including constitutional amendment and the Yasukuni issue, leading to continued polarized debate.

Closing: The Moment Sanaemics is Truly Tested

Prime Minister Sanae Takaichi is, for better or worse, a "fighting politician."
It can be said that 2025 was the year her "fighting stance" broke through Japan's stagnant bedrock regulations and diplomatic deadlock.

However, the year 2026, which follows the destruction, will demand a more delicate "politics of integration": what to build after the breakthrough, and how to gain public consensus for painful reforms.
Whether she can truly become "Japan's Iron Lady" will be tested from this point onward.

Advice and Opinion from the Author:

It is best to proceed with the current sense of balance. However, avoid catering too much to every faction. The public is not seeking a Takaichi administration that tries to please everyone.