Weekly Report - 06 May 2010 (WR-10-18)

The government of President Alvaro Colom this week hailed a breakthrough after congress ratified a law authorising the issuance of US$562m in bonds to finance the remainder of the 2010 budget. The move is vital given the persistent refusal of the opposition (dictated by the powerful private sector lobby Cacif), to approve much-needed tax reform. It also follows the recent formalisation of an electoral alliance between the ruling Unidad Nacional de la Esperanza (UNE) and centre-right Gran Alianza Nacional (Gana) as well as horse-trading with other political groups, indicative of more general pre-electoral manoeuvring ahead of the legislative and presidential contest in May 2011.
 
Even with the latest deal with the Gana, which has courted the UNE off and on since last year, Colom still lacks a majority, plagued as ever by the notorious fractiousness of party politics in Guatemala. The ruling party has a mere 33 deputies (some 20% of the 158-seat congress), considerably down from the 51 with which he won the 2007 election following the emergence last year of a dissident bloc, Lí­der [WR-09-21]. With the 24 Gana votes, Colom can now count on a third of seats, leaving him still highly dependent on other parties, including the 26-strong Lí­der, to push through legislation.

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