Following Finance Minister Germán Ávila's announcement of an economic emergency to raise 16 trillion pesos for the 2026 budget, major Colombian business associations including Fenalco, Andi, and the National Business Council have urged the Constitutional Court to review and potentially suspend the measure, arguing it fails constitutional tests amid concerns over economic stability.
Building on the government's December 19 declaration of an economic emergency—prompted by Congress's rejection of a tax reform that left a 16 trillion peso (2.9% of the 546 trillion peso budget) hole—business leaders escalated their opposition by sending formal letters to Constitutional Court President Jorge Enrique Ibáñez.
Fenalco President Jaime Alberto Cabal warned that the decree would undermine economic stability, legitimate confidence, and legal security. He argued that attributing the emergency to the tax reform's failure disregards Congress's legislative powers and lacks unforeseeable triggers, such as fluctuations in oil prices or interest rates, calling for provisional suspension.
Andi President Bruce Mac Master labeled it 'profoundly unconstitutional,' noting it as the tenth emergency in three years and fourth under President Gustavo Petro. He contended there is no justification for deeming a 2.9% shortfall a grave disruption. The National Business Council and Aliadas echoed these sentiments, referencing prior alerts from the Autonomous Fiscal Rule Committee about foreseeable fiscal issues.
Economic analyses bolster their case: a 2010 Banco de la República report highlighted how corporate patrimony taxes distort SMEs by curbing credit, investment, productivity, and jobs, describing them as 'confiscation of business capital.' Fedesarrollo Director Luis Fernando Mejía emphasized that the shortfall is under 3% of the budget, making claims of severe disruption untenable.
The groups requested urgent court review, even during judicial vacation, to avert irreversible damage.
