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Andean Group - April 2016 (ISSN 1741-4466)
ECUADOR: Preparing for straitened circumstances
Even before the devastating earthquake struck Ecuador’s northern coastal provinces, the government led by President Rafael Correa was intent on pushing through fiscal and labour reforms in the face of a seriously adverse economic situation. The national assembly, controlled by the ruling Alianza País (AP), is debating a new tax reform bill that would raise the special consumption tax (ICE) on cigarettes and alcohol in an attempt to increase the tax take crippled by low oil prices. The Correa administration has also faced protest action from the country’s main trade union, Frente Unitario de Trabajadores (FUT), as well as social groups and indigenous movements against a labour reform.
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