The smaller coalition partner Komeito is leaving the government coalition with the Liberal Democratic Party (LDP), after nearly 25 years of joint rule.
The two parties need to "go back to the drawing board", announces Komeito's leader Tetsuo Saito after negotiations with the LDP. He says that his party is not being heard regarding its demands and that it will make it "totally impossible" for them to nominate Sanae Takaichi as prime minister.
Sanae Takaichi was elected leader of the LDP a few days ago and as such has been on her way to becoming prime minister - and the first woman in that position.
Komeito is reported to have objections partly to how Takaichi has handled revelations of corruption among LDP representatives and partly to her more conservative orientation.
Komeito leader Saito says, however, that the party still supports a budget proposal and other legislative proposals that the coalition had drawn up together.
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