The Liberal Democratic Party and the Liberal Party launched policy discussions Wednesday, and while the two took several steps toward forming a coalition, a major hurdle remains -- consensus on a consumption tax cut.
The Liberal Party is pushing hard for a cut, and some in the LDP, desperate to alleviate the ruling party's minority standing in the Upper House, appear willing to use it as a bargaining chip.
But for now, the two sides are bridging other issues. During a meeting in the morning, LDP Secretary General Yoshiro Mori and Liberal Party Secretary General Takeshi Noda agreed that the two parties will continue to hold close discussions and seek common ground on key policies.