CARACAS: Venezuelan President Nicolas Maduro's move to decree an "economic emergency" seeks to make the ascendant opposition share the political cost of the South American oil giant's economic mess, analysts say.
The decree, which gives Maduro 60 days of extraordinary powers to combat a deep recession and triple-digit inflation, was issued Friday and now passes to the opposition-controlled National Assembly, which must approve it, reject it or demand changes within eight days.
That presents a conundrum for the fractious opposition coalition, the Democratic Unity Roundtable (MUD), which rode voters' frustration to a landslide victory in legislative elections last month.
"It's a trap by Nicolas Maduro's government to share the political costs with the opposition," said economist Luis Oliveros.
While the decree may allow Maduro to take "some measures" to right the sinking economy -- such as cutting huge gasoline subsidies -- it contains few new ideas to fight the crisis, he told AFP.
Instead, it challenges the so-far unsullied opposition to dive into the trenches of governance.
Opposition lawmakers must now decide whether to fight the socialist leader's interventionist economic model or sign off on his plans, however grudgingly, and share the responsibility, Oliveros said.
If they choose to fight, it would give him ammunition to blame MUD if the recession deepens, as many economists predict it will.
The speaker of the National Assembly, Henry Ramos Allup, has been scathing in his criticism of Maduro, but nevertheless promised the opposition would study the decree.
The measure gives the administration special powers to commandeer private companies' resources, impose currency controls and take "other social, economic or political measures deemed fitting."
With concern mounting over just how far those powers reach, the administration sought to soothe fears Monday by denying that the decree allowed the expropriation of private companies.
"People are saying the decree creates a kind of 'express expropriation.' That's a lie," Trade and Industry Minister Miguel Perez Abad told a meeting of business owners.
Comments
Comments are closed.