In an analysis published in “The Guardian” on July 25, 2026,[i] it was emphasized that Japanese Prime Minister Sanae Takaichi’s economic policies bear similarities to those of former British Prime Minister Liz Truss, and that Takaichi could therefore share Truss’s fate in the near future. Known for her liberal economic policies, Liz Truss took radical steps to implement low taxes and a balanced budget after taking office in September 2022; however, following a negative market reaction, the government was forced to backtrack, and Truss remained in power for only 50 days.[ii] In Japan, meanwhile, the Takaichi administration—which announced an expansionary economic plan to break the long-standing cycle of stagnation—has clearly laid out an inflationary vision, a move that has not only alarmed many investors but also increased pressure on the markets.
The government of Prime Minister Takaichi, which advocates increasing government spending to foster greater economic growth and, in this regard, positions the government as “an actor that channels capital to critical sectors,” views increasing defense spending and supporting domestic production in this sector as among its primary objectives. Despite the risks posed by Japan’s massive debt burden and budget deficit, Takaichi’s adoption of a proactive economic model, without offering a plan for additional funding sources to support it, is leading to a further increase in inflationary pressures.
Japan’s new investment plans targeting strategic defense sectors can be explained by the deterioration of the country’s security environment in recent years. Viewing neighboring actors such as Russia, North Korea, and China as potential and actual threats to its national security, Japan has pursued a radical course in its security and defense policies over the past fifteen years. For example, on November 7, 2025, Sanae Takaiçi stated that a potential Chinese intervention in the Taiwan Strait could provide an opportunity for Japan to intervene militarily; this proactive stance drew a strong reaction from China.[iii]
Sanae Takaiçi, known as the “Iron Lady,” has succeeded in drawing the world’s attention to Japan, particularly due to the proactive defense and security policies pursued toward China. Under Takaiçi’s leadership, Japan’s further departure from its status as a pacifist nation is leading to a deterioration of the security environment in the Asia-Pacific and a race to escalate tensions. It can be said that during this period, Japan has transformed into a partner that actively projects power within the U.S. alliance.
Another striking parallel between Japan and the United Kingdom is the chronic political instability and frequent changes in prime ministers that have characterized the internal political dynamics of both countries over the past six to seven years. In the United Kingdom, leadership crises, which gained momentum with the Brexit process and have continued under Theresa May, Boris Johnson, Liz Truss, and Rishi Sunak, have created a similar picture of political turbulence to that seen in Japan following Shinzo Abe’s resignation, with the administrations of Yoshihide Suga, Fumio Kishida, and, most recently, Sanae Takaiçi.
This fragility in domestic politics and conflicts between factions within political parties make it difficult for both actors to pursue long-term, consistent, and predictable strategic courses in global politics. The short lifespan of governments prevents the institutionalization of radical economic and military decisions, and this situation brings with it a distinct fragility or vulnerability, particularly within the U.S. alliance.
There are striking similarities between Liz Truss’s partisan and pro-war stance on the Ukraine Crisis and Sanae Takaiçi’s proactive approach to defense and security. For example, during the Russia-Ukraine War, Liz Truss emerged as one of the most “hawkish” actors within the Western alliance; she completely rejected any possibility of negotiation or compromise with the Putin administration. The war in Ukraine has been labeled an issue affecting not only Europe but the security of the entire world, particularly Taiwan. In this vein, Liz Truss has argued that the North Atlantic Treaty Organization (NATO) must globalize, and she has also sought to expand the United Kingdom’s military presence on a global scale in line with her “Global Britain” vision.
Similarly, Takaiçi’s hawkish stance on the Taiwan Strait is fueling concerns that Japan is “embarking on a dangerous path of neo-militarism.” This is because Takaiçi advocates for radical changes, such as lifting restrictions on lethal weapons exports and increasing the defense budget. Just as in the case of Takaiçi, Liz Truss also adopted a tough and uncompromising stance during the Ukraine Crisis, explicitly referencing Margaret Thatcher’s “Iron Lady” legacy. However, Truss’s hawkish approach to defense and security policies was pursued without public support, and her government lasted only 50 days. Looking again through the lens of Japan, Takaiçi is following Shinzo Abe’s hawkish line and, much like Truss, is being referred to by the title “Iron Lady.” Furthermore, by adopting a hardline rhetoric against China and North Korea, she is focused on both consolidating her position within the U.S. alliance and securing the support of the right-wing nationalist faction in domestic politics.
Consequently, the hawkish and proactive defense and security policies pursued by Japan and the United Kingdom in recent years—though differing in their geographic scope—exhibit significant similarities in terms of strategic objectives, rhetoric, and alliance architecture. While the United Kingdom focuses on Russia’s revisionism in the North Atlantic and Eastern Europe, Japan has concentrated on China’s regional hegemony and threats originating from North Korea in East Asia. Furthermore, while the United Kingdom advocates for a more global NATO and provides escalatory military aid to Ukraine, Japan is abandoning its pacifist structure to develop “counter-attack” capabilities and is demonstrating active power projection within the U.S. alliance. However, these proactive moves in the defense and security sectors could prove decisive for the tenure of both the Japanese and British governments. Consequently, Takaiçi may share the same fate as Truss not only because of the steps she has taken in the economic sphere but also due to her actions in the defense and security sectors.
[i] “Can Japan avoid a Liz Truss-style shock as its PM embarks on a giant spending spree?”, The Guardian, https://www.theguardian.com/world/2026/jul/25/japan-sanae-takaichi-investment-plan-liz-truss-economy, (Date of Access: 28.07.2026).
[ii] “The mini-budget that broke Britain – and Liz Truss”, The Guardian, https://www.theguardian.com/business/2022/oct/20/the-mini-budget-that-broke-britain-and-liz-truss, (Erişim Tarihi: 28.07.2026); “Will Britain follow Japan’s great growth gamble?”, Cityam, https://www.cityam.com/will-britain-follow-japans-great-growth-gamble/, (Date of Access: 28.07.2026).
[iii] “Japan rebukes Chinese diplomat as Taiwan furore escalates”, Reuters, https://www.reuters.com/world/china/japan-protests-extremely-inappropriate-comments-by-chinese-envoy-2025-11-10/, (Date of Access: 13.01.2026).
