Is the Republican majority good news?

The Republican majority at the Congress of the United States is not necessarily good news for the U.S. economy. Though the Republicans will lead the legislative agenda, it will not prevent the Democrat administration from delaying or vetoing the bills.

This with two main pitfalls as a result: first of all, legislative inaction could strengthen the rejection of the political system by the American citizens whose voter turnout remains low. This could either throw the all-Washington D.C. into the same pot or undermine the Democrat nominee for the 2016 presidential race if the Republicans managed to convince the political impasse was President Barack Obama’s fault.

Then, the cohabitation could send back the U.S. to the fiscal and budgetary cliff which had animated the year 2011 and triggered a markets’ 18% correction; simultaneously with an acute Eurozone’s crisis. The federal state’s debt ceiling could be reached again and prompt automatic budget cuts, known as “the sequester”.