The first round of Constitutional reforms was a failure… but there is hope for a positive outcome next year
The economy is growing slowly but steadily (3.25% through September according to the Monthly Index of Economic Activity). The 2020 budget is consistent with this pattern and therefore will not be expansive, given the limitations of the Fiscal Responsibility Law (a 2.75% deficit ratio for 2020). The headlines during the last few months were not of an economic nature: the first stage of the Constitutional reform process, a promise of President Cortizo, bumped up against the pretenses of the legislators who modified the draft that the Executive had approved, adding articles that distorted the spirit of the reform, which was more transparency and modern governance in the relationship between the state powers. Cortizo took a strong position by criticizing the ill-advised initiatives of the legislators. The alleged corruption scandals of 2017-2018 as per the illegal transcripts of former President Varela and the possible involvement of former President Martinelli in the construction of the Metrorail also provided major headlines during the month.
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