The The Constitutional Court tied its hands and feet or sent the Government to the freezer, who in the coming months of the year will have to be satisfied with performing daily administrative tasks and not worry about the future of the country. Judgment of the Court It also calls into question the effectiveness of other regulations that the Government had in preparation. This is what experts believe after learning that the Court did not give way to the Productive Development Decree Law, also known as free zones.

In accordance with Alberto Acosta Burneo, editor Weekly analysis, The court closed the door to the Government so that it could make any thorough reform and therefore the next projects it had in mind – Stock Exchange, Public Finance – would not have a place, he says.

It is about the fact that the Court, which was supposed to verify the constitutionality of the decrees, in the case of the Decree on Free Zones, did not only rule on the constitutionality, but also on whether it was an urgent issue in the economic matter.

In its majority opinion, the Court indicated that the decree “do not per se the norm of economic urgency in accordance with what is required in the exceptional scenario provided for in Article 148 of the Constitution”, This is based on the fact that it would not satisfy the criterion of immediacy of the economic effects of the proposed measures in relation to “convincing circumstances”. Due to the long-term implications for the economic model, the Court considers that the proposed regulation requires an appropriate and exhaustive technical-parliamentary discussion in which different sectors can participate.

The court then understands that Economic urgency has nothing to do with anything important. For Acosta Burne, the Government has no way to overcome this new problem and would rather it be up to them to continue to manage on a day-to-day basis in administrative matters. “The problem is that there is nothing above the Court, so it can do nothing but wait for the mandate to expire.” Perhaps he could try a decree announced on the need to deal with the El Niño phenomenon, which is more like a bankruptcy law, which would try to help the manufacturing sector overcome the losses caused by the incident.

According to Acosta Burneo, what happened with the cross of death is not what the Government expected, which at first thought it could carry out the administration without the weight of the Assembly. In fact, without the Assembly, the Government is limited, because there is no longer the filter of this co-legislator, but the filter of public opinion, which is much stricter and more diverse. It is much more difficult to agree among millions of citizens.

He also comments on it With this sentence, the Court has just established a precedent in the sense that the death cross can be a mechanism for reducing tension in the future, but in which the Government renounces deep, structural changes. “Come in Freezer Luck, where do investments, consumption stop. We are also entering consecutive election periods that increase uncertainty. This is not a good time for anyone,” says Acosta.

In the meantime, Napoleón Santamaría, an economic analyst, agreed that the Constitutional Court, with its statement on the decree on free zones, is telling the government of Guillermo Lasso to stop thinking about the state, that he only devotes himself to solving the pressing issues of his government. That new laws for national development are the task of the new president and the new assembly.

According to Santamaria, the Court’s arguments are that the decree:

According to Santamaria, this is a the “very dangerous message” that the Court sends to the Government not to worry about the country’s future, but to delegate and transfer power to the new government. “Sad for the country,” he said.

About the topic, The Minister of Production and Foreign Trade, Julio José Prado, expressed regret for the Court’s decision. He explained that the issue of investments is key to the Government’s plan. And reminded that this is the third time that the Government is trying to submit this proposed regulation. He sent it for the first time in October 2021, but it was not accepted. The second time was in February 2022 when only the subject of investment was sent. To finally shorten it again, now only on free zones.

He explained that there were businessmen ready to invest as soon as the law came into force, but now these initiatives have been stopped. He asserted that it was the Court’s mistake to consider that the investments are not urgent because their consolidation will be seen in the medium and long term. He added that from the moment it is known that there is a clear and attractive law, investors begin plans, projects, and pre-operational phases. Excitement is starting to build around the investment, he said.

Last Friday, the Constitutional Court issued two statements on the decree law sent by the Government. He gave the green light for the first one, which dealt with lowering taxes for citizens. However, he denied the issue of free zones. These days, the Government will send to the Official Register a tax regulation that would become the law of the Republic, as established by the Constitution, during this period of death on the cross. Until June 19, the text had not been sent to the Official Register.