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New PM cements Japan power shift New PM cements Japan power shift
(40 minutes later)
Japan's parliament has elected Yukio Hatoyama prime minister, handing power to an untested government that faces tough economic and social challenges. Japanese Prime Minister Yukio Hatoyama promised economic revival and strong US ties, hours after taking office.
His Democratic Party of Japan won a huge poll victory last month, ending more than 50 years of almost unbroken rule by the Liberal Democratic Party. In a news conference, he vowed to deliver a "people-oriented society", quick economic improvements and frank but trusting ties with Washington.
Mr Hatoyama said he was excited by the prospect of changing history. "The battle starts now," he said. Mr Hatoyama's Democratic Party of Japan won a huge poll victory last month, ending 50 years of almost unbroken Liberal Democratic Party rule.
The new prime minister announced his cabinet shortly after his confirmation. His untested government now faces tough economic and social challenges.
He named former DPJ leader Katsuya Okada as foreign minister and Hirohisa Fujii, a veteran bureaucrat, as finance minister. The new cabinet will be sworn in by Emperor Akihito later in the day.
Former DPJ leader Katsuya Okada becomes foreign minister and Hirohisa Fujii, a veteran bureaucrat, takes over as finance minister.
Another former DPJ leader, Naoto Kan, will head a new National Strategy Bureau set up to oversee the bureaucracy. He also becomes deputy prime minister.Another former DPJ leader, Naoto Kan, will head a new National Strategy Bureau set up to oversee the bureaucracy. He also becomes deputy prime minister.
The cabinet will be sworn in by Emperor Akihito later in the day.
The defeated LDP, meanwhile, will hold an election later this month to choose its new leader, after former Prime Minister Taro Aso stepped down.The defeated LDP, meanwhile, will hold an election later this month to choose its new leader, after former Prime Minister Taro Aso stepped down.
Domestic focusDomestic focus
The DPJ has entered into a coalition deal with two smaller parties, the Social Democratic Party and the People's New Party, and controls both houses of parliament.The DPJ has entered into a coalition deal with two smaller parties, the Social Democratic Party and the People's New Party, and controls both houses of parliament.
HATOYAMA GOVERNMENT The DPJ has never held government beforePromises to increase social spending, on health, education and child-careSays it will fund spending by cutting bureaucratic wastePromises climate cuts and better ties with AsiaSays it will seek a more "equal" alliance with the US Will Japan's global ties change? Challenge ahead for Hatoyama Profile: Yukio Hatoyama Japan's new cabinet: Key figuresHATOYAMA GOVERNMENT The DPJ has never held government beforePromises to increase social spending, on health, education and child-careSays it will fund spending by cutting bureaucratic wastePromises climate cuts and better ties with AsiaSays it will seek a more "equal" alliance with the US Will Japan's global ties change? Challenge ahead for Hatoyama Profile: Yukio Hatoyama Japan's new cabinet: Key figures
Its priorities now include tackling a rapidly ageing society and an economy still struggling after a brutal recession.Its priorities now include tackling a rapidly ageing society and an economy still struggling after a brutal recession.
The party says it will wrest control of policy-making decisions from bureaucrats and deliver more people-centric policies.The party says it will wrest control of policy-making decisions from bureaucrats and deliver more people-centric policies.
It has promised to increase social welfare spending, prioritising areas such as health and education. It has also promised climate cuts and a foreign policy that is less closely tied to the US.It has promised to increase social welfare spending, prioritising areas such as health and education. It has also promised climate cuts and a foreign policy that is less closely tied to the US.
The DPJ was elected as a wave of discontent with LDP rule swept across Japan.The DPJ was elected as a wave of discontent with LDP rule swept across Japan.
Professor Phil Deans, from Temple University in Tokyo, said people had become tired of the old system.Professor Phil Deans, from Temple University in Tokyo, said people had become tired of the old system.
"It was extremely effective in developing Japan into a very rich, very important nation," he said, "but it had reached its limits.""It was extremely effective in developing Japan into a very rich, very important nation," he said, "but it had reached its limits."
Opinion polls have shown many people did not vote for the DPJ because of their policies - but because they wanted change.Opinion polls have shown many people did not vote for the DPJ because of their policies - but because they wanted change.
Analysts say the electorate will be watching the DPJ closely to see if it can deliver.Analysts say the electorate will be watching the DPJ closely to see if it can deliver.
The BBC's Roland Buerk, in Tokyo, says that in defeating the LDP, Yukio Hatoyama has already achieved what many people thought for years was impossible.The BBC's Roland Buerk, in Tokyo, says that in defeating the LDP, Yukio Hatoyama has already achieved what many people thought for years was impossible.
But now the difficult part - governing Japan - begins, our correspondent says.But now the difficult part - governing Japan - begins, our correspondent says.

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