Crossing The Pain Threshold

March 2008 | Political Risk Analysis

BMI View: The government has suffered a major defeat in the referendum on charges for health services and university tuition. While a major public reverse for the Socialist Party, the vote does not by itself change the thrust of the government's policy agenda, nor will it presage a change of administration. However, it will likely focus minds on the left of the party on the social costs of the much needed fiscal austerity and adjustment plan.

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