Tony Abbot and his Liberal National coalition won the Australian elections this weekend and I think it will be AUD positive as his party may finally take steps to revive the $1.5 trillion economy and cut unnecessary spending from the Australian budget.
I look forward to the work he will do and the impacts it will have for Australia and the economy. He will face an uphill battle on this tax reform, and I am monitoring what is happening on that front as it will be a huge boost in my opinion if he succeeds to reduce taxes. I am more and more bullish on Australia and share the minority view on the Australian currency.
Tony Abbott controls the lower house, but not the upper house, so he doesn’t quite have a full mandate to pass all economic reforms. I understand the balance of power in the upper house is shared between 6-8 independent senators and minor parties, of which Tony Abbott will have to woo six of them to pass anything.
On the upside, one of the minor parties in the upper house is libertarian. (Liberal Democrats) Now that their name is in the media, we can expect further libertarian support in the next election in 3 years.
The winner of Australia’s election, Tony Abbott, on Saturday promised wholeheartedly to form a competent and trustworthy government after defeating Prime Minister Kevin Rudd.“I can inform you that the government of Australia has changed,” the conservative challenger told the gathered supporters. "For just the seventh time in 60 years the government of Australia has changed.“I now look forward to forming a government that is competent, that is trustworthy, and which purposely and steadfastly and methodically sets about delivering on our commitments to you, the Australian people.”. If he is faithful and colors the economy we expect the AUD to rise surely.
Now that their name is in the media, we can expect further libertarian support in the next election in 3 years.