Budget bust-up forces ANC to rethink GNU rules, Zille says forget it

Key Players and Disagreement

The article centers on a budget deadlock in South Africa's Government of National Unity (GNU), primarily between the African National Congress (ANC) and the Democratic Alliance (DA). The disagreement revolves around a proposed 0.5 percentage point VAT increase, opposed by the DA and other parties.

ANC's Proposed Solution

To prevent future impasses, the ANC is pushing for a formal, legally binding agreement to ensure coalition stability and support for future parliamentary motions. This proposal aims to create a more predictable political environment.

DA's Response

The DA, however, rejects the ANC's proposal, citing an existing Statement of Intent as the foundation of the GNU. They advocate for negotiation outside the public domain.

Negotiations and Future of the GNU

Bilateral meetings are ongoing between the ANC and other parties, including the DA, Freedom Front Plus, ActionSA, and Build One South Africa. The outcome will determine the future stability of the GNU and its ability to pass crucial budget bills. The ANC's willingness to reconfigure the GNU by including parties more aligned with its objectives adds another layer of uncertainty.

Potential Outcomes

• A new formal agreement securing coalition stability.
• The GNU remaining intact with amendments.
• The GNU collapsing or undergoing significant restructuring.
• The DA leaving the coalition.