The President of Ecuador, Guillermo Lasso, on May 17, 2023 declared the
"Crossover death", the same one that is protected in Article 148 of the Constitution giving him the power to dissolve the National Assembly.
It may only apply in the following cases:
- When the Assembly has assumed functions that do not fall within its constitutional competence (subject to approval by the Constitutional Court).
- Serious political crisis and internal disturbance.
- Repeated and unjustified obstruction of the implementation of the National Development Plan.
The President of the Republic invoked the second and was able to do so since he is still within the first three years of his mandate. Once the crossover death has been decreed, in the next seven days the National Electoral Council must call both legislative and presidential elections. That is, the members of the National Assembly leave and new authorities, a new president and all members of his government are elected.
Once the Assembly is dissolved, President Lasso has the power, by decree-law, to legislate exclusively in the economic sphere. It must justify to the Constitutional Court that the decrees are of an urgent nature in economic matters. Many of President Lasso’s initiatives have already been blocked by the National Assembly, and the Executive is now presented with the opportunity to implement the economic laws that have been part of his government plan.
These urgent economic reforms include:
TAX REFORM:
The spirit of this law is inspired by the principle of favorability for the taxpayer. They are changes to reduce the payment of income tax and will take immediate effect once they enter into force, as all these decrees will have to go through the review of the Constitutional Court, which will review that do not go against constitutional principles.
FREE ZONES:
This law is intended to attract foreign investment. It should be remembered that in 2022 this law was sent to the assembly and was filed, now it is the opportunity of the Executive to pass it and enter into force.
INVESTMENT LAW:
According to government projections with this law is expected to arrive up to 30,000 million in private investments until 2025.
• Promotion of public-private partnerships.
• Greater control of the stock market.
• Reforms to the telecommunications sector.
LABOR CHANGES:
This law, if implemented, provides for a parallel system of hiring workers under more flexible rules than those currently in the Labor Code. It is aimed at reducing unemployment.
REFORMS TO THE ECUADORIAN SOCIAL SECURITY INSTITUTE:
This law would allow the financial sustainability of the pension system of the Ecuadorian Social Security Institute (IESS).
OIL SECTOR:
This law would aim at allowing Petroecuador to delegate its fields to private investment in production, which would bring the possibility of increasing oil production.
As we said before, all these laws will have to go through the Constitutional Court which will have to decide if there is no unconstitutionality in them. If so, they would enter into force immediately upon promulgation.
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Source:
https://www.elcomercio.com/actualidad/negocios/posibles-reformas-codigo-laboral-enciende-alarmas-muerte-cruzada.html
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