I have an op-ed in The Conversation talking about the early election announcement.
Every election gives rise to regime uncertainty. That is the possibility that a change in government policy will adversely affect business. This is likely to happen irrespective of whether the government wins or loses the election. Even when government wins, elections are a time where a raft of new policies are presented to the electorate. Of course, when government changes hands, a lot of existing policy is changed (and new policies introduced). So I’m not convinced that announcing the date of the election will change any concerns the business community may have regarding future policy directions.
But we do now have an additional consideration. The date of the election is known, but the government is not in caretaker mode. Given the expectation that the government will lose the coming election, should it be in caretaker mode? Reasonable people can disagree on this point. After all, having the government in caretaker mode for eight months is a bit too long. Yet can the business community — and anyone else — be confident that announced policy will be implemented? I suspect not.
Please go through to The Conversation and read the whole thing – the clicks count.