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Edition: U.S. Article Comments (0) Email Print Reprints Full Focus Best of the week Our top photos from the past week. Full Article Best pictures of the year Read Murdered Alabama children were tortured: documents 09 Dec 2010 Senior diplomat Richard Holbrooke critical after surgery 12 Dec 2010 Grocery chain A&P files for bankruptcy 12 Dec 2010 Three New Orleans policemen convicted in Katrina death 09 Dec 2010 Iran not a rogue state: Australia 12 Dec 2010 Discussed 166 Obama unveils tax deal with Republicans 87 WikiLeaks founder Assange arrested in Britain 69 Special Report: STD fears sparked case against WikiLeaks boss Watched Bejeweled bra exposed in NY Thu, Oct 21 2010 Row over vote orgasm video Fri, Nov 19 2010 Bill Clinton backs Obama tax plan Fri, Dec 10 2010 Japan ruling DPJ presses kingpin for ethics panel Tweet This Share on LinkedIn Share on Facebook By Yoko Kubota and Linda Sieg TOKYO (Reuters) - The No. 2 leader of Japan's ruling Democratic Party (DPJ) urged powerbroker Ichiro Ozawa to appear before a parliamentary ethics panel over a funding scandal and said the party would have to decide the... Factbox Powerbroker Ozawa's shadow haunts ruling party Sun, Dec 12 2010 Related Topics World » Japan » Japanese Prime Minister Naoto Kan (R) walks in front of Chief Cabinet Secretary Yoshito Sengoku as he leaves a news conference to mark the end of the parliament session, at his official residence in Tokyo December 6, 2010. Credit: Reuters/Toru Hanai By Yoko Kubota and Linda Sieg TOKYO | Mon Dec 13, 2010 2:33am EST TOKYO (Reuters) - The No. 2 leader of Japan's ruling Democratic Party (DPJ) urged powerbroker Ichiro Ozawa to appear before a parliamentary ethics panel over a funding scandal and said the party would have to decide the matter if Ozawa refused. The bickering could delay decisions on a draft of the budget for the year from April 1 and related tax reforms, including a corporate tax cut companies want to boost global competitiveness. It has also sparked speculation that the Democrats could unravel, stoking political upheaval as the government struggles to pass bills in a divided parliament and bolster a weak economy. DPJ Secretary-general Katsuya Okada told a news conference that party executives had entrusted him with a decision on the matter, which has sparked strife in the party. "The issue is one of the reasons obstructing the operation of parliament and ... could affect elections," Okada said. He added that he wanted to meet Ozawa soon and resolve the issue quickly, but sidestepped questions about what would happen if Ozawa declined to explain himself in parliament. The DPJ swept to power last year, ending more than half a century of almost non-stop rule by its conservative rival. But the scandal dogging veteran party strategist Ozawa has helped to slice voter support for Prime Minister Naoto Kan's government to about 25 percent. "The problem at the moment is that we've got a lot of huge problems in Japan and they are just not being dealt with," said Nicholas Smith, director of equity research at MF Global FXA Securities in Tokyo. "Foreigners are watching this very closely." Party strife, he said, would affect a wide range of policies from a possible future rise in the 5 percent sales tax to fix Japan's debt-laden public finances to passage of the state budget from next April 1 and a proposed cut in corporate income tax. A judicial panel has ruled that Ozawa, 68, must be indicted on suspicion on falsification of reports by his political funding organization. He has denied any wrongdoing and could well refuse to appear before the panel, which has no authority to force him to attend. DISMAL ELECTION SHOWING Okada seems to hope that sending a signal about the need for Ozawa to explain himself might help to win support in parliament from the second-biggest opposition party, the New Komeito. The rift, however, has fanned concerns that Ozawa might bolt the DPJ as he did in 1993 from the Liberal Democratic Party, sparking a chain reaction that briefly ousted the party. 1 2 Next World Japan We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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