Second Capital Plan Set for Fast-Track: This Week in Osaka December 26th 2025 to January 2nd 2026

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Each week, here at Osaka.com, we bring you a selection of some of the top stories about Osaka making the local and national news here in Japan. Sometimes it’s serious, sometimes it’s funny, but it’s always direct to you, from Osaka.

Bill to Make Osaka Japan’s “Second Capital” Likely to Pass Within Weeks

The JIP’s Grand Plan to make Osaka Japan’s Second Capital may soon be a reality.

2026 promises to be a big year for Osaka. As part of a loose coalition agreement to prop up the minority government of Prime Minister Sanae Takaichi, The Japan Innovation Party wants Osaka to become a “second capital”.

This week, as Takaichi’s LDP announced the return of parliament on January 23rd, they also confirmed that the Osaka Metropolis Plan is near the top of their priority list.

Under this plan, Osaka would take on a number of new responsibilities as Japan’s second capital. The bill also has some support outside of the JIP’s Kansai stronghold. People from various political stances have long argued that far too much of Japan’s economic and political power is centralized in Tokyo.

The move would also allow for a smooth transition of most of the government’s core functions to Osaka in the event of a national crisis.

Second Capital Plan Greenlit, But Seat Reduction Remains Uncertain

Many believe Japan’s parliament has too many members.

With the support of the LDP and some other opposition lawmakers, it seems likely that the Osaka Metropolis Plan, to create this second capital will indeed move ahead. However, the other major demand from the JIP in forming their coalition agreement with the LDP still has an uncertain future.

The JIP wants to see the number of seats in the House of Councilors, Japan’s lower house (equivalent to the US Congress or the UK House of Commons) reduced by at least 10%.

We’ve previously covered here on Osaka.com numerous complaints from voters about the disparity of vote weighting across Japan. The JIP believes that a cut to the overall number of representatives in the Lower House will go so way to alleviate this issue.

Others however, remain unconvinced. The opposition Democratic Party for the People reached a deal with the LDP to support their fiscal budget recently. In return, the LDP will raise the tax-free income threshold for working families. No such agreement has yet been struck however to approve the reduction in the number of parliamentary seats.  

Many political pundits believe that this “red-line issue” for the JIP could be the dealbreaker that eventually ends their fragile coalition with the LDP.

Osaka Sees in New Year, Residents Express Hope Amidst Anxiety

Shrine staff make final preparations ahead of New Year celebrations.

As midnight stuck on January 1st, Osaka was bustling. Across the city, trains continued running through most of the night, as citizens descended on local shrines to pray for good fortune in 2026.

2025 was a challenging year for Osaka. The highly divisive yet ultimately profitable Osaka Expo remains a bone of contention for many. 2026 will show us if the organizers are indeed able to follow through on their legacy plans for the event.

Those working in Osaka’s tourism industry will also hope for a thaw in diplomatic relations with China. The number of tourists visiting Osaka from Japan’s largest trading partner has fallen sharply since a diplomatic spat between the Prime Minister and China’s Consul General in Osaka. Neither side has apologized for their inflammatory remarks as of yet. However, both stand to lose economically the longer this feud drags on. So, Osaka residents I spoke to this week are cautiously optimistic that a return to diplomatic normality may come around soon enough.

However, considering the widespread complaints of “over-tourism” particularly in Kyoto and Osaka over the past couple of years, a return to the huge numbers of last summer seems unlikely.

Striking the right balance will be key in both ending this diplomatic fracas and keeping Japanese voters happy.

And Finally…

It’s been a tough season for Daizen Maeda so far, but Saturday’s Glasgow Derby is a chance for a fresh start.

Osaka’s soccer fans will have their eyes on Scotland this weekend. Osaka’s leading soccer star Daizen Maeda will lead Celtic into a crucial Glasgow Derby against their city rivals Rangers on Saturday evening Japan Time.

Fans are worried this may be the last time we see Maeda play in a Glasgow Derby. The forward has been linked with a move away from Celtic. He was reportedly set to move to an unnamed German Bundesliga side in late August, only for the move to fall through at the last minute.

However, the 28-year-old has recently indicated he could stay with Celtic until at least this summer, as he looks to cement his place in Japan’s squad for this summer’s World Cup. Despite this, his future remains uncertain and speculation is rife.

Saturday night’s game comes against an unusual backdrop, with both Celtic and Rangers toiling in the league behind early pace-setters Hearts. The Edinburgh side are looking to take the Scottish title back to the capital for the first time since 1960.

Meanwhile, in Glasgow, it’s a derby that both sides need to win, but also one that neither can really afford to lose, if they wish to challenge for the league title.

It’s been over 40 years since a team outside of Celtic or Rangers won the Scottish top division title. This weekend may go a long way to deciding if that streak remains intact.

That’s all for now but be sure to check back again same time next week for another round of this week in Osaka!

Author

  • Liam Carrigan

    As a six year resident of Osaka, Liam Carrigan knows the city inside and out.
    He writes regularly for a number of other online and print publications across the world.
    Originally from Glasgow, Scotland, Liam first came to Japan in 2006. Liam graduated from Edinburgh Napier University earlier that year with a BA in Journalism. He believes a reporter’s first allegiance must always be to the truth, no matter how inconvenient that truth may be.

    View all posts

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