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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Japan PM Aso calls election, risks historic defeat Tue Jul 21, 2009 1:30am EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Yoko Kubota and Yoko Nishikawa TOKYO (Reuters) - Japanese Prime Minister Taro Aso dissolved parliament's lower house on Tuesday for an election on August 30 and vowed to restore voters' faith in his fractious ruling party, which polls show is in danger of a historic defeat. A victory by the opposition Democratic Party of Japan would end more than 50 years of near-unbroken rule by the conservative Liberal Democratic Party and raise the chances of breaking a deadlock caused by a divided parliament that has stymied policy implementation as Japan struggles to emerge from recession. It would also usher in a government pledging to pay more heed to consumers than companies, to wrest control of policy from bureaucrats to cut waste, and to adopt a diplomatic stance less subservient to close ally the United States. "This is a major, revolutionary election to allow politicians to take the lead in Japanese government," Democratic Party leader Yukio Hatoyama told party members. "We should face it with a sense of historic mission." Many investors in Japanese financial markets would welcome an end to the prolonged political stalemate, but some analysts worry that the Democrats' spending plans will inflate an already huge public debt and likely push up government bond yields. "I think that for the short-term, hope that the Democrats taking power will cure the parliamentary paralysis and lead to smooth passage of bills and policies will outweigh any worries about uncertainty," said Noritsugu Hirakawa, a strategist at Okasan Securities. "Over the longer term, there's questions about how the Democrats will fund all their social programs, and this may eventually weigh on the market." A spate of opinion polls show the Democrats well ahead of Aso's LDP among voters, though close to 30 percent are still undecided. For a graphic tracking the polls, click: here PARTY CHAOS Aso's announcement of his election plan last week -- one day after the LDP was trounced in a closely watched Tokyo assembly poll -- sparked chaos in the LDP, with critics trying to oust him from the top party post. Party heavyweights blocked the move, but agreed Aso should appear at a meeting of LDP lawmakers to hear their complaints. In remarks carried live on nationwide TV, Aso apologized for his failings and admitted that the party's internal chaos had contributed to recent local election losses. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Pressure grows on Honduras, violence feared Swine Flu H1N1 virus spreading too fast to count The World Health Organization says that the H1N1 flu pandemic is the fastest-moving pandemic ever and that it is now pointless to count every case. Full Coverage | Slideshow Flu outbreak means lost summer for Mexican tourism Blog: Graphic timeline of global flu pandemics Factbox: How to fight flu spread More International News Pressure grows on Honduras, violence feared | Video NATO urges allies to do more in Afghanistan Guantanamo report on detainee policy delayed Mumbai attacker in surprise guilty plea Bosnian Serb pair jailed for burning Muslims alive More International News... Video Japan calls election Play Video More Video... Related News SNAP ANALYSIS:Japan election could bring historic change 20 Jul 2009 INSTANT VIEW: Japan PM calls poll as party at risk of defeat 20 Jul 2009 SCENARIOS: Japan set for change of govt with Aug 30 election 20 Jul 2009 FACTBOX: Policy challenges facing Japan's next government 20 Jul 2009 FACTBOX: Japan's Democrats outline policies for candidates 20 Jul 2009 Editor's Choice Slideshow A selection of our best photos from the past 24 hours. 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