Odebrecht claims prompt new impeachment push in Peru

Significance

Peru’s main opposition party, Fuerza Popular (FP), will support the bid by left-wing parties to initiate impeachment proceedings. Kuczynski will argue that political and economic stability will suffer if he is toppled.

Impacts

• Reform of the electoral system to limit corporate funding is unlikely to pass the present legislature.
• Suspension of major construction projects will stunt GDP growth this year.
• The sullied reputation of Peru’s political class will open space in the 2021 elections for those not yet accused of corruption.