The president of Ecuador, Guillermo Lasso, announced the application of a measure called “cross death”. This action implies the dissolution of Congress and the calling of general elections to renew all positions, including the Presidency of the Republic.

During a message addressed to the nation, Lasso highlighted the need for a new political and social pact to overcome the serious political crisis that Ecuador is currently facing, a situation that unfortunately worsens every day.

The president accused the National Assembly, which is mostly made up of the opposition, of “destabilizing” his government during the two years of his administration, including the current impeachment process against him.

Lasso affirmed that this constant obstruction has generated a deep political crisis and an internal disturbance, which is reflected in the little trust that Ecuadorian society places in the National Assembly. Therefore, with the objective of providing a constitutional solution to Ecuador, the president has decided to exercise the power granted by article 148 of the Constitution of the Republic to dissolve the National Assembly.

Consequently, Lasso has requested the National Electoral Council to immediately call legislative and presidential elections, with the purpose of completing the rest of the term of office.

In accordance with the provisions of Article 148 of the Ecuadorian Constitution, “the President of the Republic may dissolve the National Assembly when, in his opinion, it has assumed functions that do not correspond to it constitutionally, after a favorable ruling from the Constitutional Court; or when he repeatedly and unjustifiably hinders the execution of the National Development Plan, or in the event of a serious political crisis and internal commotion. This power may be exercised only once during the first three years of his mandate.”

K. Tovar

Source:

(Reference image source: Element5 Digital, Unsplash)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada Lasso dissolved Congress and called for elections apareció primero en Bitfinance.

The Latin American and Caribbean regions are the most susceptible to a possible recession in the US economy, according to the report ‘The vulnerabilities of Latin America and the Caribbean in the face of a US recession.’ published by Fitch Ratings.

Among the reasons, the credit rating company points to the geographical proximity of both regions and the various transmission channels, which links them enormously to the economic cycles and policy decisions of the United States, whose economy could enter a recession from of the second quarter of 2023, according to the latest report from Fitch Ratings.

Specifically, the main transmission channels to Latin America and the Caribbean are trade, remittances, tourism and commodity prices. “The South American economies have limited trade links with the US, but are indirectly affected through the impact on world trade and commodity prices,” they explained from the rating agency.

However, within these regions, the different economic characteristics of the countries mean that the impact can “vary considerably”. Thus, for example, the lower foreign demand from the US mainly affects Mexico due to its dependence on exports, as it represents one of Washington’s three main trading partners. In this regard, it should be remembered that a large part of Central American exports are demanded by the US, although these countries tend to have a more diverse export market base.

Risk in remittances

Weakening US household income and employment could jeopardize migrants’ ability to send remittances home and discourage tourism. Remittances account for more than 20 % of the GDP of some Central American countries, making the Caribbean and Central American economies vulnerable to a “sudden stop” in tourist arrivals.

In addition to the recession in the United States, there are challenges for frontier markets, since more expensive external financing could complicate policy options, and for the more developed economies of the region if their current account deficits are large.

Finally, when it comes to credit ratings for Latin America and the Caribbean, Fitch Ratings expects “limited pressure.” Any impact on the ratings will ultimately depend on the magnitude of the US economic shock and the ability of each country to absorb it.

Click the link to subscribe for free to our news and media group on Telegram: https://t.me/G_ELSUMARIO_News

Source: dpa

La entrada Latin America and the Caribbean, the regions most exposed to a recession in the United States apareció primero en Bitfinance.