Criticism of Colombia's economic emergency decree

Columnist Wilson Ruiz Orejuela criticizes the Colombian government's use of the economic emergency decree, arguing it stems not from an unexpected crisis but from political and fiscal management failures. He claims this measure erodes institutions and creates legal uncertainty. The piece, published on December 23, 2025, warns of the risks of concentrating power in the executive branch.

In his column titled 'When Governing Fails, the Decree Appears', published on occidente.co on December 23, 2025, Wilson Ruiz Orejuela examines Colombia's economic emergency declaration as a desperate government measure. According to the author, it does not arise from an 'external collapse or unforeseeable situation', but from 'fiscal disorder', a 'loss of trust', and an 'evident inability to build majorities in Congress'.

Ruiz Orejuela argues that the executive resorts to the decree because it has lost 'direction, political support, and the capacity to govern democratically'. He describes the mechanism as 'legally fragile', with the government aware that the Constitutional Court could strike it down, yet using it to 'force economic decisions'. This, he says, sends a clear political message and has immediate economic impact.

The columnist points out a key contradiction: the government acknowledges structural fiscal problems but presents them as an 'unexpected urgency'. 'Both statements cannot be true at the same time', he writes, stressing that structural issues demand serious reforms, not exceptional measures. In his view, this approach is 'improvisation' that breaks the balance of powers, turns Congress into a 'decorative actor', and erodes the rule of law.

Furthermore, Ruiz Orejuela warns that it creates 'legal uncertainty, scares away investment', and reinforces the idea that rules change based on governmental convenience. The measure includes no 'spending adjustment, no state reduction, no self-criticism', but rather 'more taxes and more power concentrated' in the executive. He concludes that governing should involve 'anticipating, dialoguing, and respecting the limits of power', and that confusing authority with imposition worsens fiscal problems instead of solving them.

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Colombian business leaders protesting outside the Constitutional Court, petitioning to block the government's economic emergency decree amid stability concerns.
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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.

The Constitutional Court suspended President Gustavo Petro's economic emergency decree from December 2025, an unprecedented move halting measures like a tax reform by decree. Huila representatives in Congress voiced divided opinions on the fiscal, legal, and political ramifications of this ruling. Some hail it as a check on an unconstitutional 'decree blitz,' while others decry the constraints on tackling the economic crisis.

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President Gustavo Petro signed Decree 1390 of 2025 declaring a 30-day economic and social emergency in Colombia after the Congress sank the financing bill. The measure aims to raise funds to cover a $16.3 trillion deficit and ensure essential services like health. The announcement sparks legal and political debate, with reviews pending from the Constitutional Court and Congress.

Seventeen Colombian governors, led by those of Antioquia and Valle del Cauca, have chosen to disobey a decree from Gustavo Petro's government that alters the liquor tax structure. They argue the decree causes irreparable damage to departmental funding for health and education. This action is backed by the Constitution for instances of poor government administration.

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Finance Minister Germán Ávila announced the declaration of an economic emergency following the failure of the tax reform, aiming to fund $16 trillion for the 2026 National General Budget. The draft decree includes taxes on assets, alcohol, cigarettes, and a special levy on hydrocarbons and coal. Business guilds such as Andi, ACM, and ACP question its constitutionality and effectiveness.

A federal judge in Campana declared invalid the presidential decree suspending the Disability Emergency Law and ordered its immediate application nationwide. The ruling rejects the Government's fiscal arguments and emphasizes protection of vulnerable rights. The Executive announced it will appeal the decision.

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Amid presidential debates, columnist Nicolás Ordoñez Ruiz highlights urgent challenges in public education, such as PAE funding, poor rural infrastructure, and school dropout. These issues could become structural hurdles for the next government if not addressed promptly. Declining royalty revenues complicate sustaining key programs.

 

 

 

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