New Peruvian president to be sworn in
Pedro Castillo will be sworn in today as Peru’s new president, beginning his five-year term on the 200th anniversary of Peru’s independence.
The official results of the election have been delayed for weeks due to allegations of voter fraud from right-wing contender Keiko Fujimori. Castillo declared victory on Monday, after the election authority found no evidence of fraud.
The presidential election came amid deep political divisions in Peru, which is struggling to cope with the world’s highest COVID-19 death rate per capita and a pandemic-related economic downturn. Peruvian’s have had to choose between two economic extremes, sparking fears that Castillo’s win will turn Peru towards communist models.
With Castillo yet to define key policy priorities, expect today’s inaugural speech to confirm Castillo’s intention to redraft the constitution to bolster the role of the state. Fears surrounding heavy taxation of major industries such as mining have already caused tremors among investors and the business community. However, Castillo plans to keep conservative Julio Velarde as Peru’s central bank president and Pedro Francke as his economic advisor, signaling moderation in his cabinet. Congressional fragmentation will likely slow implementation of his campaign promises, making fundamental change difficult in the short- to medium-term.
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