Australia: New election mooted to bust budget impasse Sydney Morning Herald
Former Reserve Bank board member Warwick McKibbin has suggested a new election may be needed to resolve the Senate impasse holding up key budget savings, as he lashed the political populism of the Greens and Palmer United Party. And Bank of America Merrill Lynch economist Saul Eslake has suggested a mini-budget was ”one of the options the government needs to think about” as consumer confidence falls, unemployment rises to 6.4 per cent and, if the political uncertainty continues, business confidence potentially falls. The comments came before a scheduled meeting between Joe Hockey and PUP leader Clive Palmer on Tuesday, with the Treasurer rejecting former treasurer Peter Costello’s call to drop the proposed $7 GP co-payment and declaring budget critics should not write off key measures.