US Venezuela 'military option' warning will backfire

Significance

Trump’s statement will provide a fillip for President Nicolas Maduro. This will prove temporary, though. The country faces a spiralling economic crisis and a debilitating credit crunch, with bond repayments of 3.8 billion dollars falling due in October and November.

Impacts

• Amid the economic and political turmoil, expectations of a sovereign default will heighten.
• The new Constituent Assembly will be emboldened to adopt more aggressive measures against government critics.
• Regional neighbours that agreed the Lima Declaration face a possible political backlash if seen to be at the bidding of the White House.