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Australian Labor Party Faces “Ugly News” About the Economy After Winning Elections

Anthony Albanese’s Labor Party was approaching securing a majority government on Sunday as the full range of losses suffered by Scott Morrison’s right-wing coalition government in the Australian federal elections was revealed.

Labor has taken the lead in a number of narrow-margin seats, including Bennelong, a former Sydney seat held by former Conservative Prime Minister John Howard. It also led Boothby, which has been held by the Liberal Party since 1949. As a result, it will bring it closer to the 76 voters needed to form a government without the support of a crossbench.

Supporters of Albanese Euphoria on Saturday night After Morrison admitted defeat in a contest over economic and national security, he was swayed by Labor and independents in protest of the coalition’s climate and social policy. However, the next government will face the daunting task of fulfilling election promises to improve wage growth and productivity.

The soon-to-be-31-year-old Prime Minister of Australia faces a cost-of-living crisis caused by a sharp rise in inflation and rising interest rates, undermining the claim that Morrison’s government is a better manager of the economy.

Extroverted liberal treasurer Josh Freidenberg, who is to lose his independent seat, defended his record on Sunday with the lowest unemployment rate in half a century and “budget revenue over 70 years.” Pointed out the fastest improvement. When the economy recovers from a pandemic.

However, Stephen Cucouras, who served as economic adviser when former Prime Minister Julia Gillard took office, and Jim Chalmers, the new Treasury Secretary, said in a few days during discussions between the Australian Treasury Department and the Australian Reserve Bank. He said he would receive “ugly news”. .. “Jim was handed a proverbial shit sandwich,” he said.

Shane Oliver, chief economist at AMP, said inflation has been at its highest level since the early 1990s, pushing up interest rates. This was consistent with record high household debt-to-income levels, rising budget deficits, and the risk of a wage price spiral.

“The fiscal mass era facilitated by very low inflation and very low interest rates is over. To relieve inflation and interest rate pressure, the new government really speeds the pace of deficit reduction or budget repairs significantly. We need to start significant economic reforms in the areas of labor relations, taxes, competition policy and education to improve and increase productivity, “he added.

Saul Eslake, founder of Corinna Economic Advisory, said Labor could have inherited a “powerful” economy, but tried to deal with inflation and further deterioration with its biggest trading partner, China. He said it could interfere. .. “Given Australia’s fiscal deterioration during the pandemic, there is limited room for strong fiscal policy in response to the shock.”

Albanese has a very narrow mission after conducting a secure campaign to avoid promising major reforms.

“In order to make a lasting difference in Australia’s mid-term, keeping in mind that the Australian Government was unable to secure a second term for the first time since 1931, Labor has a broader mission in the 2025 elections. We need to lay the groundwork, “outlook,” Eslake added.

These issues are inferior to those of the Liberal Party, which has been in the process of coalition with the local Kuomintang to record the worst results since 1983, when Labor Party Bob Hawke came to power.

The Liberal Party had only three seats in Melbourne, based on the latest forecasts, and could remain without seats in Adelaide and Perth after the Labor Party suffered major fluctuations. Expecting Greens, Queensland to “steal” a new generation of climate-focused female candidates who have lost their seats in the urban areas of central Sydney and Melbourne, and have no affiliations and wealthy seats. I lost the land.

The results in the Australian Senate were also tough for right-wing parties who handed over territory to progressive rivals ranging from the Greens to a single problem group, including the Legalized Cannabis Party.

Former Australian rugby union player David Pocock, standing on an independent ticket, is about to rob Canberra’s Senate from Zed Sesella, the Pacific Minister of the Morrison administration. That would mean that for the first time there is no Liberal senator representing the capital of the country.

Meanwhile, Pauline Hanson, a senator at One Nation who opposed climate change policy, could lose a senator in Greens, Queensland.

Albanese will probably need to rely on support from Greens or Senate independents to pass the bill.

On Monday he will fly to Tokyo to attend Leaders meeting When the final election results come out, the “quad” security group in his first action as prime minister

There he will meet US President Joe Biden, Japanese Prime Minister Fumio Kishida, and Indian Prime Minister Narendra Modi. “This is an opportunity to send a message that there are government changes and policy changes such as climate change,” Albanese said on Sunday.

The message spread to the Pacific Ocean, and Albanese promised to pay more attention. Fiji’s Prime Minister Frank Bainimarama celebrated Albanese’s focus on climate change. “Of all your promises to support the Pacific, nothing is more welcome than your plan to put climate first,” he wrote on Twitter.

Software billionaire and climate activist Mike Cannon Brooks told the Financial Times on the eve of the election that Albanese’s climate goals weren’t very ambitious, but he’s positive that he’s one step ahead of the Morrison administration. He said it was. Make the country an “international climate criminal”.

Australian Labor Party Faces “Ugly News” About the Economy After Winning Elections

https://www.ft.com/content/44a8a791-70ec-4701-841e-2f61da28df32 Australian Labor Party Faces “Ugly News” About the Economy After Winning Elections

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