With Prime Minister Junichiro Koizumi firing off a barrage of reform proposals aimed at turning the ailing economy around, his foes, including fellow Liberal Democratic Party lawmakers and bureaucrats keen to protect vested interests, are drawing battle lines.

But observers say Koizumi, backed by record-high public approval ratings, has so far been skillful in handling those resisting his reform agenda.

One example was when the Council on Economic and Fiscal Policy, the top economic advisory body to the prime minister, drafted policy guidelines May 31.