The ruling Liberal Democratic Party and New Komeito were close to striking a compromise deal Thursday over whether -- and how -- to strip the Finance Ministry of its policymaking power, officials of the two parties said.
Although party officials say a compromise would pave the way for the Diet to pass related bills, it would also pave the way for Japan to regress in its attempts to initiate true reform.
The two parties began talking with the main opposition Democratic Party of Japan in early February about an agreement reached in the fall that calls for the Finance Ministry to be stripped of all its financial policymaking power no later than Jan. 1, 2000.