Peru's governance problems are set to increase

Significance

The resignations followed police raids on Boluarte’s home in the context of a corruption probe known as ‘Rolexgate’, prompting some legislators to demand her impeachment. The new scandal comes shortly after a package of new constitutional reforms allowing members of Congress to stand for re-election in 2026 either for a restored Senate or the Chamber of Deputies.

Impacts

• Boluarte’s impeachment, which would require 87 votes, is unlikely to prosper.
• Political uncertainties will complicate governance, both prior to and after the 2026 elections.
• Increased political strains between Lima and the rest of the country are likely.
• Foreign investors will remain wary of political instability.