INSTANT VIEW - Japan PM calls poll as party at risk of defeat

TOKYO (Reuters) - Japanese cabinet members signed off on Prime Minister Taro Aso's plan to dissolve parliament's lower house on Tuesday for an expected August 30 election, as polls show his ruling party in danger of a historic defeat.

KEY POINTS:

-- A victory for the opposition Democratic Party of Japan would end more than 50 years of almost unbroken rule by the conservative Liberal Democratic Party and raise the chances of breaking a political deadlock that has stymied policy implementation as Japan struggles to emerge from recession.

-- It would also usher in a government pledged to pay more heed to the interests of consumers than companies, to wrest control of policy from bureaucrats to cut waste, and to adopt a diplomatic stance less subservient to close ally the United States.

-- All ministers signed off on Aso's plan, though there had been speculation that Finance Minister Kaoru Yosano might oppose it and either resign or force Aso to fire him.

COMMENTARY:

ROBERT FELDMAN, CHIEF ECONOMIST, MORGAN STANLEY

"From my viewpoint as an economist, this election is about productivity. Japanese are worried about the sustainability of their system, the sustainability of their living standards and in that context, they are looking for some changes in policy approach. They are looking for efficiency in government, and they seem sceptical that the LDP (ruling Liberal Democratic Party) will deliver that."

"Some of the ideas put forward by the Democrats already do work in that direction. Some don't."