Bahrain readies austerity push, keeping wary eye on opposition | Reuters

Bahrain readies austerity push, keeping wary eye on opposition | Reuters:

Bahrain’s new parliament is expected to swiftly pass sensitive austerity measures needed to secure a Gulf aid package, but the U.S.-allied government may implement the belt-tightening in stages to avoid provoking public anger.

The Sunni-led authorities have kept a lid on dissent since a Shi’ite uprising in the island kingdom in 2011 was quelled with the help of neighboring Saudi Arabia, which fears instability in Bahrain will encourage unrest among its own Shi’ite minority.

But Bahrain, a cornerstone of U.S. military power in the region, could face a fresh test of its ability to curb opposition unrest as it implements reforms to subsidies and pensions required by Gulf Arab donors to avert a debt crisis.