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Weekly Report - 03 July 2014 (WR-14-26)
PANAMA: Varela takes office
Juan Carlos Varela and his new conservative El Pueblo Primero (EPP) coalition government took up the reins of power on 1 July. A necessary deal reached between Varela’s Partido Panameñista (PPA) and its traditional rival Partido Revolucionario Democrático (PRD) the previous day on “legislative governability” will allow him a narrow majority in the 71-member unicameral legislature. While this improves Varela’s chances of making good core pledges to reduce living costs, improve public security and strengthen institutional transparency, how far this alliance will continue remains to be seen given the notorious brevity of such arrangements. Varela himself had struck a deal with his predecessor, Ricardo Martinelli, only for it to fall apart two years into Martinelli’s term.
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