Default signals further slide for Puerto Rico in 2016
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Significance The island's government and public agencies hold 72 billion dollars of debt obligations, but migration to the mainland United States, political unwillingness to cut spending and constitutional difficulties have triggered a severe crisis. Federal US and Puerto Rican lawmakers are concerned that austerity-driven cuts to public services would only exacerbate the problems of the commonwealth. Impacts The Puerto Rican diaspora in Florida may punish Republicans at the ballot box in the event of federal inaction. Anti-gun-control policy 'riders' may scupper congressional efforts to aid Puerto Rico in March. Relief for Puerto Rico may become a vote-winning issue for Democratic presidential candidates in the party primaries.