The Democratic Party of Japan (DPJ), which could fall short of an outright majority in the election according to local media, have already reached out to the Your Party for a possible alliance.

The Democrats have a big majority in the lower house but need to win a majority in an upper house election on July 11 to avoid policy deadlock.

“Your Party won’t do things together with the DPJ,” said Yoshimi Watanabe, leader of the party and a former banking minister who left the then-ruling Liberal Democratic Party (LDP) last year.

“The issue for this election is whether you choose the DPJ or the LDP, both of which favor big government, bureaucrats’ control and higher taxes, or the Your Party, which stands for a small government, private initiatives and economic growth,” he told a news conference. But some analysts believe the Your Party could still align with the DPJ, depending on the outcome of the election.

The Asahi daily reported on Saturday that the Your Party could take about nine seats, more than doubling the number of its incumbent lawmakers. It was up in the air whether the DPJ and their current tiny ally, the pro-spending People’s New Party, could get the 56 seats they need to keep a combined majority.

“If the DPJ gets 54 seats maybe the Your Party will join, but if it is 50-51, they will smell blood and see the possibility of a major party realignment by refusing to join the government,” Columbia University professor Gerry Curtis said.

Prime Minister Naoto Kan vowed this month to consider doubling the sales tax, low by global standards, to 10 percent to mend the country’s tattered finances.

But the Your Party wants to cut wasteful spending and tap government reserves before raising the tax from the current five percent.

Watanabe also said if the DPJ-led coalition failed to win a majority in the upper house, it was bound to cause a rift within the Democrats, which could lead to a major realignment in Japan’s political party allegiances.