Arana’s Cabinet Secures Fragile Backing as Crime and Economy Dominate Agenda in Peru

On June 12, 2025, Peru’s Congress granted a vote of confidence to Prime Minister Eduardo Arana’s cabinet, according to official statements from the Peruvian government.

This decision followed a tense debate, with 62 votes in favor, 30 against, and 10 abstentions. The vote fell short of an absolute majority, but it allows Arana’s team to remain in office and continue its policies.

Congressional rules require a simple majority of 66 votes to confirm a cabinet. If the government fails to secure this, the cabinet must resign.

The outcome reflects a divided legislature and a government struggling to build consensus. Several opposition parties rejected the cabinet, calling it a continuation of previous administrations and criticizing its lack of new solutions for citizens.

Peru’s political scene remains volatile. President Dina Boluarte’s approval ratings have stayed in single digits since taking office in 2022.

The country has seen repeated cabinet reshuffles, impeachment attempts, and allegations of corruption, which Boluarte denies. The government’s stability depends on alliances with right-leaning parties and ongoing negotiations with Congress.

Crime has surged in Peru’s urban centers. Data from the National Institute of Statistics and Informatics show that 27.7% of urban residents reported being victims of crime in the last six months, up from 22.6% in 2022.

The government responded by deploying 1,000 police and 500 military personnel to the Pataz region after the murder of 13 miners. Authorities also arrested Miguel Rodríguez Díaz, known as ‘Cuchillo’, in Colombia for his alleged role in the massacre.

Despite political turmoil, Peru’s economy shows signs of resilience. The Economy Ministry projects 4% GDP growth for 2025, driven by strong mining exports and large infrastructure projects like the $3.6 billion Chancay port.

Peru supplies 12% of global copper and continues to attract foreign investment in mining, logistics, and agriculture. Inflation is expected to stabilize at 2%, and the government aims to keep the budget deficit at 2.2% of GDP.

The vote of confidence gives the government a temporary lifeline. However, persistent crime, political fragmentation, and social unrest remain serious risks. Investors and businesses continue to watch Peru closely, as stability is essential for sustained economic growth and trade.

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