According to Asahi Shimbun, it is very likely that Kan will resign in June after the reconstruction (from the March earthquake and tsunami disaster) basic law passes by June 17. It is reported that the DPJ, the LDP, and Komei agreed with an amendment to the reconstruction bill but the LDP and Komei oposition, which control the Upper House, refused to discuss the second supplementary budget and deficit bonds with the DPJ unless Kan resigns. Even in the DPJ, there are increasing voices that demand Kan's resignation after the passage of the reconstruction bill, including the former Prime Minister Hatoyama and the current Secretary-General Okada.
In fact, there is even a possibility that the DPJ may form a coalition government with the LDP after Kan's resignation to implement the second supplementary budget for reconstruction. Both Okada and LDP's Tanigaki are in favor of this option (on the condition of Kan's resignation) and business leaders including Keidanren's Yonekura support this idea. Far from seeing a Prime Minister who can continue his position more than one year, we are likely to see another PM who can last only for a year when Japan needs a strong political leadership after the March natural disaster. It is ironic that Kan's resignation has become almost 100% certain exactly one year after he became PM (on June 8, 2010).

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Dr. Hiroaki Richard Watanabe, D.Phil. Oxford Lecturer, School of East Asian Studies, University of Sheffield

http://www.shef.ac.uk/seas/staff/japanese/watanabe.html
http://www.wreac.org/people/WREAC-People/Core-Researche
rs/Watanabe%2C-Hiroaki-Richard/details