The government and the ruling coalition have finally agreed on spending cuts -- at least 11.4 trillion yen over the next five years -- but only after overriding the objections of top Liberal Democratic Party executives in the House of Councilors.

Half of the Upper House is up for election next year, and traditionally the LDP would be busy trying to increase the budget pie, spurred on by strong demands from local and support organizations.

There is a common perception that the LDP has been changed under the five-year-long administration of Prime Minister Junichiro Koizumi. But has it really?