Prospects for Brazil to end-2021

Subject Prospects for Brazil to end-2021. Significance A Senate inquiry into the disastrous handling of COVID-19 by the government of President Jair Bolsonaro has further undermined his popularity, also affected by the pandemic’s social and economic consequences, including high unemployment and rising hunger. However, despite large anti-government demonstrations for the first time since the start of the pandemic, Bolsonaro retains the support of one in four and will likely double down on his bet on far-right populism.

Subject Prospects for Turkey to end-2021. Significance Deepening popular discontent, a growing opposition bloc and internal rivalries have put the ruling coalition on the back foot for the first time, but also made it more unpredictable. The economic recovery has continued, notwithstanding policy tightening, but the lira has been weak and inflation high. Unemployment is a significant concern.


Significance The MAS’s national-level appeal tends not to translate into support in localised elections, and a poor choice of candidates, particularly in El Alto, has proved self-defeating. Impacts Second-round gubernatorial elections will probably take place in six out of nine departments. Camacho, a far-right businessman turned politician, will use his newly gained legitimacy to harry the government. The Arce government will seek a modus vivendi with opposition mayors such as those of La Paz and Cochabamba.


Significance Erdogan adopted a relatively conciliatory tone and stopped short of declaring retaliatory measures, for fear of the economic consequences in particular, despite the fact that most Turks see Biden’s move as an insult and an attack on Turkish dignity. Impacts Ankara’s options for retaliation are limited but could include reduced military coordination with Washington in Syria and Iraq. Turkey could ask non-NATO US forces to leave, but closing the Incirlik air and Kurecik radar bases would hurt relations with NATO. The issue could be used internally to rally Turkish nationalist anger with the United States in support of the government.


Subject The Mexican government's advances towards greater gender equality. Significance President Enrique Pena Nieto has been active in promoting gender equality at home and abroad, and his government has repeatedly voiced its commitment to the UN's Millennium Development Goals, particularly regarding female empowerment. The Pena Nieto administration included a gender dimension in its National Development Plan for the first time, and has allocated significant resources to supporting women. Efforts have focused not only on the federal level, but also at state level, as illustrated by the signing of a collaboration agreement in December 2015 between the government and the National Conference of Governors. Impacts Bridging the gender gap across all government levels will be an expensive and difficult task, with uneven success across the country. Any reductions in domestic violence rates will require long-term efforts to change attitudes from the bottom up. Quotas that encourage the employment of women, regardless of merit, may perpetuate politics' reputation for being corrupt and nepotistic.


Significance The election for the House of Representatives, the lower house of parliament, will be the second since the constitution was revised in 2011. This specified that the leader of the party winning the largest number of seats should be given the first opportunity to form a government. The revision led to the moderate Islamist party, the Justice and Development Party (PJD), leading the government for the first time after its victory in the November 2011 poll. Impacts The election will focus attention on contentious reforms to pensions, subsidies and the education system. The months ahead will be dominated by speculation about party alliances and the likely shape of a future coalition government. The palace seems ready to accept a second term for Prime Minister Abdelilah Benkirane, but is also keen to see PAM within government.


Subject Uruguay's economic outlook. Significance The government has determined a fiscal adjustment, with tax increases for middle- and high-income earners, delays in public spending plans and a reform of military pensions, in a bid to address worsening public finances. It is the first time that the leftist Frente Amplio (FA), in government since 2005, has faced an adverse economic climate. Impacts Austerity in a context of 'stagflation' will generate political and trade union tensions. Rising unemployment will drive a deterioration in real family incomes. Growth will remain paltry this year and next.


Subject Political and economic consequences of austerity in the Netherlands. Significance The popularity of the Dutch governing parties has declined steadily since they came into power in 2012. The absolute winner in the polls continues to be the far-right Freedom Party (PVV) led by Geert Wilders. There are signs, however, that mainstream parties are coming back into favour, thanks to a combination of promising economic prospects and relatively stable immigration levels. Impacts The EU, healthcare provision, integration and care of the elderly are likely to be key themes during the election campaign. Calls for a referendum on the withdrawal of the Netherlands from the EU -- a 'Nexit' -- are likely to intensify. Prospects for the Labour Party in the next election will depend on whom the party elects as its leader.


Significance The government consists largely of newcomers and politicians with dubious links to the far right. It embarks upon a five-year reform programme for Austria which is thin on detail but could lead to radical changes. Impacts A tougher stance on migrants and asylum seekers could foster a wider reluctance in some EU states to accept refugees. Major constitutional changes are unlikely as the government would need the support of the SPOe or the small Neos party. Any extreme right-wing tendencies will concern Brussels and Israel, which will keep a close eye on the government. Austria will be an unpredictable ally, sometimes siding with Macron and at other times favouring alliances with Eastern European countries. The SPOe’s loss of office could lead to changes in personnel and programmatic position.


Subject Borisov’s third administration. Significance The government approved by parliament on May 4 is Prime Minister Boyko Borisov’s third since 2009. It is the first time his Citizens for Bulgaria’s European Development (GERB) party has joined in formal coalition with United Patriots (OB), a bloc comprising three nationalist parties. Two OB leaders, Krasimir Karakachanov and Valery Simeonov, are deputy prime ministers, but only the former combines this position with a portfolio (defence). OB’s third and most controversial leader -- Ataka party leader Volen Siderov, noted previously for rabid anti-NATO and pro-Putin statements -- has no formal government role. Impacts GERB has reaffirmed its domination of Bulgarian politics with minimal concessions to its formal coalition partners. The spectre of increased Russian influence over Bulgarian politics that worried some EU partners has seemingly dissipated. A firmer line against migration is likely as a sop to OB, but meaningful reform of the judiciary will again be strenuously avoided. Sofia’s worries about Turkey and the Western Balkans and its forthcoming EU presidency may make it more amenable to EU influence and advice.


Subject The economic outlook for China following the lifting of the COVID-19 lockdown. Significance The economic uncertainties due to the economic impact of the COVID-19 pandemic made this year’s National People’s Congress (NPC) unusually important. After GDP fell 6.8% year-on-year in the first quarter, the government for the first time announced no annual GDP growth target, indicating extreme uncertainty over the extent and durability of recovery. Impacts China’s industrial output will outpace export demand; trade tensions such as anti-dumping cases could rise. US-China tensions will rise, but both sides will be warier than last year of major moves that could jeopardise economic recovery. China’s commitment to high military spending is undiminished by its economic troubles; defence spending will rise as a share of GDP.


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