By Ernesto Estremadoiro, El Deber:

Bretel: “Paz May Not Reach His First Year in Office Unless He Makes a 180-Degree Turn”

[Given the length of the original article, here is only a summary]

Bretel: "Paz puede no llegar a su primer año si no da un giro de 180 grados"

President Paz’s administration has been marked by the economic crisis

Political scientist Guillermo Bretel warned that President Rodrigo Paz’s administration is facing mounting pressure from the economic crisis, political scandals, social unrest, and the lack of a legislative majority. He said the government risks a governance crisis before completing its first year unless it makes a “180-degree turn.”

Speaking on EL DEBER’s Dinero program, Bretel argued that while fuel and dollar shortages were inherited from the previous administration, the government has failed to resolve them and public confidence has continued to erode. He also criticized what he described as administrative improvisation and the distraction caused by political controversies.

To address the crisis, Bretel proposed liberalizing the fuel market, allowing private fuel imports, reducing the fiscal deficit, and securing financing from international institutions such as the IMF, IDB, and CAF. He said any reduction in fuel subsidies should be accompanied by temporary social protections for vulnerable groups.

The analyst stressed the need for legal certainty and political stability to attract investment and urged Paz to build a broad parliamentary coalition capable of passing structural reforms. He argued that negotiations on a case-by-case basis are insufficient for governing effectively.

Bretel also dismissed the government’s 50-50 revenue-sharing proposal as a solution to the economic crisis, calling instead for fiscal discipline focused on reducing bureaucracy and losses in state-owned enterprises without harming health, education, or public investment.

While acknowledging that Paz still has time to change course, Bretel warned that continued economic deterioration, inflation, scandals, and legislative weakness could further undermine the administration’s legitimacy. “He may not even reach his first year,” he said.

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