UPDATED: A "principle agreement" has been reached within the Liberal party room on Nationals' leader David Littleproud's four policy demands (see below). This leaves the door open to reuniting the Coalition days after it appeared to have been shattered. There's no guarantee that the disagreement will be resolved automatically, as a Nationals party room is likely to follow. As a result, both leaders have agreed to delay announcing portfolio allocations.
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Australia’s political landscape is shifting.
Nationals leader David Littleproud has put the party’s split from the Liberals on hold while negotiations continue on a new Coalition Agreement.
The move follows intense discussions over key policy differences, including nuclear energy, regional infrastructure, and supermarket divestiture powers.
The pause signals a possible reconciliation, but tensions remain high.
The Nationals initially walked away from the Coalition, demanding immediate commitments to four policy areas before they would agree to a renewed Coalition Agreement with the Liberals. These were:
- Supermarket Divestiture Powers – A policy aimed at breaking up major supermarket chains if they are found to be abusing their market share.
- Support for Nuclear Power – A push to lift the moratorium on nuclear energy and explore its role in Australia's future energy mix.
- Regional Australia Future Fund – A proposed $20 billion fund dedicated to boosting investment in regional infrastructure and development.
- Telecommunications Universal Service Obligation – Ensuring all Australians, particularly those in remote areas, have access to basic telecommunications services.
Liberal leader Sussan Ley refused, insisting on a full policy review before making promises.
The split threatened to weaken the Opposition, but renewed talks suggest both sides see value in staying together.
Investors should watch for policy shifts that could impact the energy, retail, and infrastructure sectors.
Littleproud’s decision to delay the split comes after mounting pressure from party elders and MPs.
Many feared the Nationals would lose influence and resources outside the Coalition.
The Liberals, meanwhile, were preparing to announce an all-Liberal shadow cabinet, further complicating the situation.
The pause gives both parties time to reassess their positions and find common ground.
For global investors, the outcome of these talks could shape Australia’s regulatory environment.
The Nationals pushed for nuclear energy expansion and stronger regional investment.
If the Coalition holds, these policies could gain traction, affecting energy markets and infrastructure development. A permanent split, however, might weaken opposition influence, leading to unpredictable policy shifts.
The next few days will be critical.
Ley has agreed to reconvene her party room to discuss the Nationals’ demands. Littleproud, in turn, has paused his announcement of party spokespersons as a gesture of good faith.
Whether the Coalition survives or fractures permanently will depend on these negotiations.
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