Parliamentary Rebuke Highlights Domestic Pressure

January 2008 | Political Risk Alert

We reiterate our view that Iranian President Mahmoud Ahmadinejad is under increased domestic pressure as nearly a third of the country's population are facing gas and electricity shortages during a rare cold winter, in addition to accelerating inflation - CPI for Iranian month Aban (Nov-Dec) rose 19.1% y-o-y - and international isolation. Further support for our view has come from news that parliament overruled his decision to stop the implementation of a recently approved law that would supply gas to remote villages. Although the gas law had already been passed by parliament Ahmadinejad claimed it was against the constitution, and

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