Executives of the Democratic Party of Japan and the Liberal Democratic Party are engaged in behind-the-scenes talks about forming a grand coalition after the next general election, sources said.
Senior members of the ruling party and the largest opposition force are examining ways to cooperate over passing bills to hike the sales tax, the sources said.
Behind the move is a growing sense of crisis among the executives that the local party led by Osaka Mayor Toru Hashimoto, regarded as a young and popular reformer, is poised to enter national politics — and potentially crush established parties at the next general election.