Japanese opposition leader Ichiro Ozawa has decided to step down on Monday following a fundraising scandal, which has hurt his party's chances in the upcoming election. This move is expected to improve his party's prospects and potentially lead them to victory, ending the long-standing rule of Prime Minister Taro Aso's Liberal Democratic Party. Despite initial optimism, the Democratic Party's lead in polls has decreased after the scandal, creating uncertainty about the outcome of the election. Ozawa stated that his resignation is a sacrifice to strengthen party unity and secure a clear victory in the election. The Democratic Party aims to reduce bureaucratic interference, prioritize consumer and worker rights, and adopt a more independent diplomatic stance from the United States. Ozawa's departure is not expected to change the current political positions, but it may prompt the ruling LDP to introduce additional stimulus plans to attract voters. A spending package of 15 trillion yen is already making its way through parliament. Financial markets showed little reaction to Ozawa's resignation, with the yen trading slightly lower initially but remaining mostly unchanged throughout the day. Prime Minister Aso stated that Ozawa's resignation would not affect the timing of any upcoming elections, with speculation pointing towards a possible August vote. Hidenori Suezawa, chief strategist at Daiwa Securities SMBC, suggested that now that Ozawa is no longer in the picture, Prime Minister Aso may focus more on economic stimulus to attract voters instead of dissolving parliament. Analysts believe that while replacing Ozawa may increase the Democrats' electoral prospects, not all the negative effects of his leadership will be easily reversed. Independent political commentator Minoru Morita noted that there was widespread dissatisfaction with Ozawa, and his departure is seen as a positive development for the Democrats. Ozawa's departure could pave the way for a younger leader to take over, with potential candidates being former party leaders Katsuya Okada, known for advocating tougher climate policies and considered a top contender, and Seiji Maehara, an expert in conservative security policies. Other former leaders who served as Ozawa's deputies, Yukio Hatoyama and Naoto Kan, are also being considered as possible successors. Ozawa, a skilled campaign strategist, has been a prominent figure in Japanese politics for nearly two decades, having left the LDP and briefly replaced it with a pro-reform coalition. The impact of his resignation on the Democrats' prospects will depend, in part, on his replacement and how smoothly the transition occurs. "It is a necessary step in addressing the party's image issues." Gerry Curtis, a Columbia University professor and expert in Japanese politics, raised questions about the process of choosing the next leader of the Democratic Party, as well as how that leader would perform. According to a Democratic Party source, the next leader is likely to be chosen through a vote among party lawmakers, potentially happening within a week or 10 days. A survey conducted by the Yomiuri newspaper before Ozawa's announcement showed that the Democrats maintained a slight lead over the LDP, but many respondents questioned Ozawa's decision to stay on. Yukihiro Nakagawa, an executive at a precision machinery company, mentioned that he had planned to submit a blank paper when casting his vote if Ozawa had stayed, but is now considering voting for the Democrats depending on the policies they promise. A recent survey conducted by the Yomiuri newspaper revealed that 30 percent of respondents would support the Democrats in the upcoming election, while 27 percent would support the LDP. Some analysts believe that Ozawa's resignation may lead to renewed efforts within the LDP to replace the unpopular Aso, although others argue that finding a suitable successor may prove challenging and that Aso will likely strive to retain his position.