Rift Threatens to Block Agenda

PERU - Report 05 Sep 2014 by Roberto Abusada
Executive SummaryThe souring relationship between Congress and the executive branch is likely to persist. There are already motions to impeach the minister of Energy and Mines (an effort we think will succeed). This will heighten political polarization, which could lead to the ousting of other ministers. So far President Ollanta Humala has voiced strong support for his energy minister, an able professional who is lacking in political skills. Another issue that could add political noise is the government’s announcement that it would reform the canon—the income-sharing scheme whereby subnatio...

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