Cabinet confirmation is a respite for Peru's Castillo

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.