The mid-term elections of November 7, 2006 marked the end of Republican control of Congress for the first time since 1994. With a 51-49 majority in the Senate and a small but comfortable majority in the House, the Democrats, led by Senate Majority Leader Harry Reid (D-Nev.) and Speaker of the House Nancy Pelosi (D-Calif.), will have control of powerful committee leaderships that will alter the outlook for many of our clients.

Despite the shift in power, do not expect a total Jihad on American business, particularly in highly regulated, high consumer “touch industries” such as healthcare, energy, and financial services. In a large number of races where a Democrat replaced a Republican, the margin was very small and a significant number of new House Democrats are more conservative than their House leadership. Moreover, both parties are now looking toward the 2008 presidential election and are largely expected to move to the center, in order to attract the support of independent voters who have held the balance of power in recent elections.

That said, with the narrow majority obtained by Democrats in both chambers of Congress, there will be no shortage of conflicts, which will result in more opportunities for business to insert its voice into debates through media coverage.

One of the most significant signals for change to come out of these elections may be the public’s adamant views against corruption. Expect to see a lot of emphasis on anti-corruption measures and a push for companies to conduct their business with even more transparency.

The Ogilvy PR Washington Public Affairs team in has been actively monitoring all the new developments on Capitol Hill. Below are some detailed thoughts on how the leadership shift will affect our clients in various industries.

—Robert Mathias, Managing Director, Washington