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==Foundation==
The party was founded by [[Ichiro Ozawa]] and 48 other diet members who were in the [[Democratic Party of Japan]] (DPJ) after the DPJ government of [[Yoshihiko Noda]] voted to increase the consumption tax from 5% to 10%. The inaugural meeting was held at the parliamentary museum on 11 July 2012.<ref name="yomiuri20120712">{{cite web |url= http://www.yomiuri.co.jp/dy/national/T120711004574.htm|archive-url= httphttps://archive.is/20120714010923/http://www.yomiuri.co.jp/dy/national/T120711004574.htm|dead-url= yes|archive-date= 14 July 2012|title= Ozawa, DPJ rebels create new party|date= 12 July 2012|work= Daily Yomiuri Online|publisher= The Yomiuri Shimbun|location= Japan|accessdate= 13 July 2012}}</ref> The diet members included 37 [[House of Representatives of Japan|lower house]] members and 12 [[House of Councilors|upper house]] members.<ref name="yomiuri20120713">{{cite web |url= http://www.yomiuri.co.jp/dy/national/T120712003925.htm|archive-url= httphttps://archive.is/20120716041336/http://www.yomiuri.co.jp/dy/national/T120712003925.htm|dead-url= yes|archive-date= 16 July 2012|title= Uncertainty reigns after passage of reform bills|date= 13 July 2012|work= Daily Yomiuri Online|publisher= The Yomiuri Shimbun|location= Japan|accessdate= 13 July 2012}}</ref> By the end of the month the party had become the third largest in the lower house behind the DPJ and the [[Liberal Democratic Party (Japan)|Liberal Democratic Party]] (LDP)<ref>{{cite web |url= http://www.shugiin.go.jp/index.nsf/html/index_kousei2.htm|title=会派名及び会派別所属議員数|trans_title= Party names and numbers of affiliated members|date= 31 July 2012|work= |publisher= The House of Representatives|location= Japan|language= Japanese|archiveurl=https://web.archive.org/web/20120809072459/http://www.shugiin.go.jp/index.nsf/html/index_kousei2.htm |archivedate=9 August 2012 |accessdate= 29 June 2016}}</ref> and the fourth largest bloc in the upper house behind the DPJ, LDP, and [[New Komeito]].<ref>{{cite web |url= http://www.sangiin.go.jp/japanese/joho1/kousei/giin/180/giinsu.htm|title=会派別所属議員数一覧|trans_title= Numbers of affiliated members by party|date= 18 August 2012|work= |publisher= House of Councillors|location= Japan|language= Japanese|archiveurl=https://web.archive.org/web/20120819184608/http://www.sangiin.go.jp/japanese/joho1/kousei/giin/180/giinsu.htm |archivedate=19 August 2012 |accessdate= 29 June 2016}}</ref>
 
==Goals==
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==Plans for alliances==
Ozawa told his aides: "It'll be all right if we do it like the [[Olive Tree Coalition]]." Possible coalition partners would be the [[Osaka Restoration Association]] of Osaka mayor [[Toru Hashimoto]], [[New Party Daichi – True Democrats]], the Genzei Nippon party of [[Takashi Kawamura (politician)|Takashi Kawamura]], the Aichi is Top of Japan party of [[Hideaki Ōmura]] and a possible party to be founded by Tokyo governor [[Shintaro Ishihara]].<ref name="yomiuri20120702">{{cite web |url= http://www.yomiuri.co.jp/dy/national/T120701002319.htm|archive-url= httphttps://archive.is/20130218182630/http://www.yomiuri.co.jp/dy/national/T120701002319.htm|dead-url= yes|archive-date= 18 February 2013|title= Ozawa has hard road ahead / Plan for 'Olive Tree' coalition may be unworkable, observers say|date= 2 July 2012|work= Daily Yomiuri Online|publisher= The Yomiuri Shimbun|location= Japan|accessdate= 13 July 2012}}</ref> He may also seek an alliance with the [[Social Democratic Party (Japan)|Social Democratic Party]].<ref name="jt20120712">{{cite news|url= http://www.japantimes.co.jp/text/nn20120712a1.html#.T__GaGNn785|title= Ozawa creates new party to counter Noda|first= Masami|last= Ito|date= 12 July 2012|newspaper= The Japan Times|issn= 0289-1956|publisher= The Japan Times Limited|location= Japan|page= 1}}</ref>
 
On 9 July 2012, Governor [[Takuya Tasso]] of [[Iwate Prefecture]], historical home to the Ozawa family and the [[Iwate 4th district|district]] that Ozawa represents, announced that he would cut ties with the DPJ and join the new party.<ref name="jt20120710">{{cite web|url= http://www.japantimes.co.jp/text/nn20120710a6.html#.T__GZWNn785|archive-url= https://web.archive.org/web/20120713064721/http://www.japantimes.co.jp:80/text/nn20120710a6.html|dead-url= yes|archive-date= 13 July 2012|title= Iwate governor to part with DPJ and join Ozawa's planned party|date= 10 July 2012|work= The Japan Times|publisher= The Japan Times Limited|location= Japan|accessdate= 13 July 2012}}</ref>