Weekly Report - 25 October 2012 (WR-12-42)

A law to sell off state lands in the Colón free trade zone (FTZ) has delivered the latest political embarrassment to President Ricardo Martinelli, whose backtracking over various unpopular initiatives has become a defining feature of his government. The latest U-turn – which saw Martinelli promise to repeal the law, just four days after its approval – has not only revived doubts over government spending which emerged over another ditched initiative (his proposal in June to sell government shares in the telecoms and energy sectors [WR-12-24]). It has also reignited concerns over police brutality after clashes with protesters left three dead, including a nine-year-old boy.