There should not be much resistance in the legislature to the project of organic law for investment attraction, strengthening of securities market and digital transformation, as it does not address sensitive issues. However, the plenary of the Assembly has denied this in false arguments that it has opened the door to privatization of state resources. The rest of the issues are behind.

Those who voted to reject the project also argued that they could not thoroughly review a comprehensive text (250 articles) within 30 days, which is a deadline for urgent projects. It attracts attention because projects of equal or more opportunities have been processed in the past

The rejection of the investment law project also shows that the legislature did not have the power to improve the executive proposal, which is not new. The same thing happened last year with the Emergency Bill for Economic Development and Financial Sustainability, which was enacted by the Ministry of Law. The assembly made no contribution.

Now, through the assembly, more weighty issues, such as labor and social security reforms, need to be passed in addition to ratification of free trade agreements. A trade agreement with Mexico or the country’s entry into the Pacific Alliance must be approved by the legislature in order to take effect. What has happened with the investment law has put the government’s plan at risk, which could be politically ineffective.

Furthermore, if the Assembly blocks projects that are not very sensitive, the chances of approving structural reforms are reduced, which is equivalent to maintaining stability.

This means that no major change should be expected in the amount of foreign investment, which is about 1 1 billion a year when other countries in the region receive 20 times more. Local or foreign investment is not the end in itself, but it makes it possible to achieve the desired objectives, such as the creation of formal employment. This requires an increase of over 5% per annum and can only be achieved through investment.

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