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Kyodo News agency said Monday that the embattled prime minister is expected to announce in the coming days when he will leave office. It quoted senior lawmakers of the ruling Democratic Party of Japan as saying that Mr. Kan is considering resigning in July to avoid legislative stalemate.
The government is seeking to pass the second supplementary budget in July to fund additional relief measures for the victims of the March 11 earthquake and tsunami.
The ruling Democratic Party needs opposition help because it lacks a majority in the upper house,
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Japanese news media say that Prime Minister Naoto Kan is likely to step down in exchange for obtaining opposition support to pass a new extra budget and a bill the government needs to issue deficit-covering bonds.
If Mr. Kan decides to resign,
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s situation is much worse than Europe&rsquo