Politics in Japan has been dominated by the ongoing, but limited economic recovery and expectations about the next Diet elections which must be held by October 2000.

In October, Prime Minister Obuchi Keizo reconstituted his majority that now consists of his LDP, Ozawa Ichiro's Liberal Party, and the new version of the Komeito and has about 70 percent of the seats in the Diet. Obuchi's personal approval rate has hovered around 45 percent, and no one expects dramatic changes whenever the elections are held.

However, there is concern about the budget for the next fiscal year that begins on 1 April 2000. Critics say it is filled with pork barrel provisions that could boost inflation and slow the recovery. If tht happens, Obuchi himself may not survive as prime minister.

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