LatinNews Daily - 25 June 2018

Costa Rica: Local trade unions are participating in a 24-hour national strike to protest against the tax reform and austerity measures proposed by President Carlos Alvarado, which aim to reduce Costa Rica’s fiscal deficit. The country’s fiscal deficit reached 6.2% of GDP in 2017, and it is calculated that it will reach 7.1% of GDP this year if a tax reform is not passed, according to central bank (BCCR) projections. The national association of public and private sector workers (Anep) union, the largest trade union in the country, called for the strike on 14 June along with other unions. It declared that the proposed reforms, which include the freezing, and in some cases reduction, of public sector salaries, and the levying of value added tax (VAT) on some sales and services, will impoverish the working class. On 22 June, the minister of the presidency, Rodolfo Piza, met with union leaders and asked them to cancel the “unjustified” strike, however no solution was found. Nonetheless, Piza announced that the government’s invitation for dialogue remained open and that on 29 June talks with the unions will resume.  

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