Speculation is mounting that Prime Minister Junichiro Koizumi will call a general election this year, as old guard politicians continue to hamper his reform drive and leave him appearing increasingly forlorn.

Some lawmakers predict Koizumi will dissolve the 480-seat House of Representatives and call an election, possibly in the summer, in an effort to bolster his political clout and find a breakthrough in the battle against deflation.

Others say the feasibility of his structural reforms has been dented by weaker-than-expected economic data, including falling stocks and high unemployment, particularly in the second half of 2002.