Venezuela Election Won't Resolve Policy Uncertainty

The majority obtained by the Venezuelan opposition's Mesa de Unidad (MUD) in the National Assembly will not dispel uncertainty regarding the timing and nature of the government's policy response to the current economic crisis or reduce the risk of social instability and further political polarization, Fitch Ratings says. According to results released late Monday, MUD may have obtained between 107 (a qualified majority) and 112 seats (a two-thirds majority). A qualified majority allows for the introduction of Enabling Laws, removal of Ministers, and potentially the appointment of new members to the electoral court. A two-thirds majority would give MUD the power to introduce and change some laws, submit laws for referendum, make changes to the constitution, call a constituent assembly, remove members of the Supreme Justice Tribunal and appoint electoral court members. More…