Japanese voters handed a stinging electoral defeat to the ruling party Sunday, exit polls showed, rejecting a proposal to increase taxes and handicapping a fledgling government struggling to keep the world's second-largest economy from financial meltdown.With public spending at more than double its GDP, Japan is trying to manage its ballooning debt while also addressing high unemployment and stagnant growth. Prime Minister Noto Kan has warned the country could face a Greek-style meltdown it it does not get its finances in order-possibly by raising the sales tax.
But projected losses in elections for the upper house of parliament indicate voters have rejected his solution, and will make it difficult for his government to effectively revive the economy. (AP 7/11)
