Fiscal reform protests.
President Carlos Alvarado is facing his most severe test since taking office in May, with his efforts to pass a long-awaited fiscal reform sparking strikes and protests across the country. Although the government has initiated a dialogue with trade unions, sustained opposition means that the fiscal reform is likely to be watered down substantially.
- Transport disruption will affect regional trade, compounding the transit problems caused by unrest in Nicaragua.
- The national strike’s success may encourage more such actions in future, potentially over public-sector wage increases.
- Alvarado’s weakness will increase the dominance of rival political parties in the legislature.