Challenges mount as Panama’s Varela enters final year

Subject

Presidential difficulties.

Significance

President Juan Carlos Varela’s position is becoming increasingly weak as he approaches his final year in office. Not only have protests against him shut down the port city of Colon, but the congressional opposition is mounting an attempt to take control of the legislative agenda. Alongside ongoing allegations of links to various corruption scandals, Varela will have little leeway to make progress on his policy goals ahead of elections in May 2019.

Impacts

• The CD and PRD are aligned against the government but this alliance will splinter closer to the elections in 2019.
• The new credentials commission will likely appoint new Supreme Court justices sympathetic to the opposition.
• Any further protests have the potential to disrupt supplies to and from the Colon Free Zone, weighing on economic activity.