Peru’s ruling Marxist party claimed on Thursday, that President Pedro Castillo’s government has drifted to the right, and that it will refuse to endorse a ‘caviar cabinet’ in the opposition-controlled Congress.
Last week, Castillo reshuffled his government, swapping his far-left prime minister and other ministries with more conservative politicians. Castillo was an elementary school teacher who ran for the Peru Libre party and won an unexpected election earlier this year.
The move to the centre has supported Peru’s financial markets, but it has triggered a division within his socialist party’s hard-core section, indicating a more challenging political environment ahead for Castillo, who came to power by promising enormous and significant reforms.
Castillo’s unanticipated election to the presidency startled markets and investors, who were concerned about his campaign promises of massive mining tax reform and proposals to rewrite the market-friendly constitution.
His new prime minister, Mirtha Vásquez, a moderate left-wing lawyer, declared that changing the constitution was not a priority. Castillo also just announced that central bank chief Julio Velarde would remain in his position, indicating that policy will remain stable.
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