With the opposition in disarray and support for the ruling coalition rebounding, the government may well retain its two-thirds majority in the Lower House if it called a snap election. The chances of another delay in the sales tax hike would decrease while the likelihood of monetary policy remaining ultra-loose for a long time would rise. But it would matter little for the outlook for structural reform.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.