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Cabinet confirmation is a respite for Peru's Castillo

Tuesday, August 31, 2021

Significance

The vote of confidence will provide some leeway to the embattled Castillo presidency. Although critical of government policies, centrist and centre-right parties feared that a ‘no’ vote would add to problems of economic and political instability and facilitate an eventual dissolution of Congress by the executive.

Impacts

  • The government will threaten a fresh vote of confidence to counteract renewed congressional opposition.
  • Some cabinet changes are already in prospect.
  • Plans to reform the constitution will be placed on the back burner for the time being.
  • The government will push ahead with tax increases in order to lower the fiscal deficit.
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