Claim of Unconstitutionality of New Education Bill

ECUADOR - In Brief 12 May 2021 by Magdalena Barreiro

The Constitutional Court received yesterday a claim of unconstitutionality of the new education bill. The claim brilliantly explains the legal violations this bill exhibits and also provides a complete and fair explanation of its negative fiscal and economic implications. This claim was submitted --as expected --by an independent citizen and not by a member of the inner circle from the future president Guillermo Lasso. The Observatory of Fiscal Policy will be also sending an official communication supporting this claim and emphasizing not only on the fiscal unsustainability of this bill, but also on its potential domino effect if other sectors lobby for similar benefits.The constitutional process is not a fast one, as the Court has to accept the claim as a first step, then it has to hear all the involved parties --those in favor including the legislators who voted for this bill and those against it including representatives from the Ministry of Finance. The bill would take effect in July, so we all expect the Constitutional Court will rule on this issue opportunely. This is in our opinion the main challenge Guillermo Lasso will face from day one of his mandate. However, the new methodology to estimate the price of derivatives, especially the price of diesel, will be another early headache as the transportation sector has started a series of strikes and demonstrations demanding to reinstall the full subsidy on this derivative. Lasso has not appointed yet the new Ministry of Oil and has not issued any statement yet regarding this matter.

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