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Paz Removes Economy Minister After Congressional Censure

This raises doubts about President Rodrigo Paz’s ability to secure congressional support for urgent economic reforms that underpin a key IMF financing program.

Overview

  • A presidential decree published Friday formally removed Economy Minister Jose Gabriel Espinoza and named Environment Minister Oscar Mario Justiniano Pinto as interim economy minister with no timeline for a permanent replacement.
  • Congress voted to censure Espinoza after he failed to appear to answer lawmakers’ questions about the handling of the economic crisis, and under Bolivia’s constitution a censure paves the way for dismissal.
  • Espinoza said he will ask the Constitutional Tribunal to review the censure and the Paz administration’s earlier statement that he would remain pending judicial review was superseded by the decree.
  • The cabinet change complicates the government’s push to win congressional approval for a package of economic reforms and the IMF financing program negotiated in July that still needs domestic and IMF Executive Board sign-off.
  • The political turmoil follows months of unrest triggered when the government removed long-standing fuel subsidies, which doubled fuel prices, drained foreign-exchange reserves, provoked nationwide protests and prompted a June state of emergency.