TOKYO — Japan’s opposition Democratic Party for the People (DPP) will propose issuing five trillion yen ($32 billion, $1 = 157.8800 yen) in “education bonds” annually to double the spending on childcare, education and scientific research, a draft campaign platform obtained by Reuters showed on Monday.

The DPP will also propose lowering the consumption tax rate to 5% from 10% until the pace of wage gains exceeds the rate of inflation by 2%, the draft showed.

To fund various spending measures, Japan should use proceeds from investing 180 trillion yen worth of reserves set aside for currency intervention, another 280 trillion yen in pension reserves, as well as 90 trillion yen worth of exchange-traded funds held by the central bank, the platform showed.

Prime Minister Sanae Takaichi is widely expected to dissolve parliament’s lower house and call a snap election in February in her first major election test since taking office in October.

DPP currently holds the third-largest number of seats among opposition parties and enjoys popularity among younger voters with its focus on expanding tax breaks and increasing pay.

Depending on the election outcome, the party could influence government policies with its decision on whether to support parliament’s passage of the fiscal 2026 budget and a bill to allow government issuance of deficit-covering bonds, analysts say. — Reuters

TOKYO — Japan’s Prime Minister Sanae Takaichi said she will call a national election for February 8 to seek voter backing for increased spending, tax cuts, and a new security strategy expected to accelerate Japan’s defense build-up.

“I am staking my own political future as prime minister on this election. I want the public to judge directly whether they will entrust me with the management of the nation,” Ms. Takaichi said in a press conference.

She promised a two-year halt to an 8% consumption tax on food and said her spending plans would create jobs, boost household spending, and increase other tax revenues.

The prospect of consumption tax cut, which would reduce government revenue by 5 trillion yen ($32 billion) a year, according to government estimates, sent the yield on Japan’s 10-year government bonds to a 27-year high earlier on Monday.

The snap vote will decide all 465 seats in parliament’s lower house and mark Ms. Takaichi’s first electoral test since becoming Japan’s first female premier in October.

Calling an early election would allow her to capitalize on strong public support to tighten her grip on the ruling Liberal Democratic Party and shore up her coalition’s fragile majority.

The election will test voter appetite for higher spending at a time when the rising cost of living is the public’s top concern. A poll released by public broadcaster NHK last week found 45% of respondents cited prices as their main worry, followed by diplomacy and national security at 16%. — Reuters

AN IRANIAN official in the region said on Sunday the authorities had verified at least 5,000 people had been killed in protests in Iran, including about 500 security personnel, blaming “terrorists and armed rioters” for killing “innocent Iranians”.

The official, who declined to be named due to the sensitivity of the issue, also told Reuters some of the heaviest clashes and highest number of deaths were in the Iranian Kurdish areas in northwest Iran, a region where Kurdish separatists have been active and where flare-ups have been among the most violent in past periods of unrest.

“The final toll is not expected to increase sharply,” the official said, adding that “Israel and armed groups abroad” had supported and equipped those taking to the streets.

The Iranian authorities regularly blame unrest on foreign enemies, including Israel, an arch foe of the Islamic Republic which launched military strikes on Iran in June.

The US-based HRANA rights group said on Saturday the death toll had reached 3,308, with another 4,382 cases under review. The group said it had confirmed more than 24,000 arrests.

The Iranian Kurdish rights group Hengaw, based in Norway, has said that among regions where there were heavy security measures during protests in late December were Kurdish areas in the northwest. — Reuters

PARIS — France was moving closer to a 2026 budget deal on Monday after the government presented a last-ditch proposal that made concessions to most political parties, senior Socialist lawmaker Boris Vallaud told daily newspaper Le Parisien.

President Emmanuel Macron’s government lacks a majority in parliament and 2026 budget negotiations in the fragmented legislature have dragged on for months, forcing a rollover budget in the meantime to keep the country afloat.

Needing to win support from the Socialists without alienating conservatives, Prime Minister Sebastien Lecornu on Friday said he would no longer cut a tax rebate on pensions, and that a monthly income supplement benefit for low‑income workers would rise by some 50 euros per month for 3 million households.

Cheap meals for students in university canteens would be extended, and steps would also be taken to boost affordable housing. To help finance these measures, a corporate surtax on large companies, which was supposed to last only one year, would be extended through 2026 and raise 8 billion euros.

“The Prime Minister’s announcements allow us to imagine that we will not need to vote no-confidence,” Mr. Vallaud, who leads the Socialists in the National Assembly, told Le Parisien in comments published on Monday.

Mr. Lecornu’s office said late last week that it was impossible to adopt a budget by a vote in parliament, meaning he will have no choice but to bypass parliament either by invoking special constitutional powers or adopting the budget by executive order.

Both options would mean a no-confidence vote against the centrist government, making the Socialists’ support critical for its survival.

Mr. Vallaud said “assurances” were still needed on the reintroduction of a property wealth tax and the taxation of holding companies to improve the country’s deficit levels.

Mr. Lecornu repeated on Friday the budget deficit would be no higher than 5% of GDP, and possibly lower.

Cabinet ministers will meet on Monday to discuss options for pushing the budget through without a vote in parliament, government spokeswoman Maud Bregeon told Franceinfo on Sunday.

Budget Minister Amelie de Montchalin told BFM TV on Monday it was necessary to avoid the collapse of the government which would leave the country without a budget.

“Article 49.3 is a very dangerous path. Guarantees are needed”, she said, referring to an article in the constitution allowing the budget to be pushed through without a vote.

“The good news is that the prospect of early legislative elections is receding, and the government should remain in place for the moment,” ING analysts said in a note on Sunday.

“However, the final budget is far from business‑friendly, and the tax increases are likely to weigh on investment and hiring in 2026, with a negative impact on economic growth.” — Reuters

MADRID — The death toll from Sunday’s collision between a derailing high-speed train and a second oncoming train in southern Spain has risen to 39, with 152 people injured, state broadcaster RTVE reported on Monday, citing police sources.

The accident happened at 7.45 p.m. local time (1845 GMT) on Sunday near Adamuz in the province of Cordoba, about 360 kilometers (223 miles) south of the capital Madrid.

Over 200 trains between Madrid and the southern Andalucia region – including major cities Cordoba, Seville and Granada – have been cancelled throughout Monday, according to RTVE.

Prime Minister Pedro Sanchez has cleared out his agenda for the day, his office said in a statement on Monday.

Video from the scene shared on social media on Sunday showed rescuers pulling passengers from twisted carriages lying on their side under the glare of floodlights. Some passengers climbed out of smashed windows, while others were wheeled away on stretchers.

There were around 400 passengers on the two trains, most of them Spaniards traveling back to and from Madrid after the weekend. It was unclear how many tourists could be onboard as January is not holiday season in Spain.

The cause for the crash is not yet known, Spanish Transport Minister Oscar Puente told reporters at a press conference at Atocha station in Madrid on Sunday. — Reuters