Congressional and cabinet pressures mount in Peru

Significance

Cabinet changes threaten to undermine President Pedro Castillo’s support in Congress, while Congress seeks to limit the president's power to dissolve the legislature. Castillo is seeking to steer his government in a more centrist direction, alienating some supporters on the left. Parties on the right remain determined to increase their powers vis-a-vis the presidency.

Impacts

• Failure of the executive and legislature to find common ground will further jeopardise political stability.
• Business concerns over the government’s agenda will be mollified by rapid GDP growth.
• A rewrite of the constitution may fall off the policy agenda for the time being.