Australian fires may destabilise prime minister

Significance

The bushfires will wipe billions of dollars off 2020 economic growth and could push Australia’s economy into deficit in this quarter. Insurance claims already exceed 700 million dollars (417 million US dollars).

Impacts

• With climate disasters likely to become more intense, long-term investment will be needed to protect communities.
• Damage to Australia’s image will hurt tourism and intensify pressure for decisive action on emissions.
• Labor and the Greens could benefit from the coalition’s political difficulties and stance on climate change.
• The coalition will approach climate change mitigation as an economic issue, partly to avoid party splits.
• Fossil fuels’ economic importance means the Liberals will not change energy policies right away.