At least 10 followers of Ichiro Ozawa, acting president of the Democratic Party of Japan, met Thursday to launch a faction within the opposition party.
They included those who had belonged to the Liberal Party before its merger with the DPJ in autumn. Ozawa did not participate in the meeting.
Sources close to the party said this development could intensify internal power struggles, as Ozawa is said to be critical of DPJ leader Naoto Kan.
While participants said the so-called small government research group will focus on studying policies such as tax and other reforms toward creating a more efficient government, observers said there was no denying that their political values were close to Ozawa's.