|
TOKYO - JAPAN'S main opposition party on Sunday signalled its disagreement with the government's choice of nominee to head the central bank, raising fears of a power vacuum when the current chief retires on March 19.
The government last week proposed former finance ministry heavyweight Toshiro Muto, 64, to head the Bank of Japan (BoJ), but the main opposition Democratic Party of Japan expressed concern that the central bank's independence may be compromised.
'We have been saying it is undesirable that the finance ministry has so much influence over the BoJ... I don't see any particular need to change this stance,' said Kan Naoto, acting head of the Democratic Party of Japan.
He said the party, which has the power to block the nomination in parliament, would make its final decision on whether to approve Mr Muto after seeing parliamentary hearings on him set for Tuesday and further deliberation by lawmakers.
If anything that could overturn the party's view on Mr Muto comes out of the process, 'then we can't say the possibility (of accepting him) is zero', Mr Kan said.
'If it's not the case, however, our basic stance won't change,' he told public broadcaster NHK.
'We can even call Mr Muto 'Mr Finance Ministry' as he, having served as vice finance minister for two years, is the finance ministry itself,' Mr Kan argued.
The ruling coalition led by the Liberal Democratic Party has a comfortable majority in the lower chamber of parliament but the nomination of the BoJ governor needs approval from the opposition-controlled upper-house as well.
If the ruling coalition and the opposition fail to come to terms on the next BoJ head, it would cause a power vacuum at the bank for the first time since the end of World War II.
Current governor Toshihiko Fukui's five-year term ends on March 19. The Democratic Party has demanded a parliamentary vote on the BoJ nomination on Wednesday, just a week ahead of Mr Fukui's departure. -- AFP
 |
Is this article useful to you?
|
|
|
|
|
|
| 
