( Spanish) — The first 100 years of the government of President Gustavo Petro have been completed amid ups and downs that have put him at the center of some controversies at the start of his government.
From divisive proposals, such as a tax reform that always causes discomfort in the country, going through the price of the dollar that skyrocketed in the first months of his government, an energy transition proposal, which has been received with nervousness by some sectors, and Until a controversy over some down jackets for private homes, President Gustavo Petro and his government have had to go out to put out some fires in just 100 days of government.
“We have a president who seems to continue campaigning with a fairly inexperienced cabinet that tends to talk more than necessary and generate unnecessary scandals that have serious effects, for example, on the exchange rate, with the price of the dollar, a bank that works for him , has already approved more and higher taxes for Colombians and total peace, two of its main laws,” political analyst Ricardo Galán told .
And, although the start has been difficult, the truth is that recent surveys have given support to his management. An Invamer poll gives 49.7% approval of the way he is carrying out his job as president and 42.7% disapproval. And another survey, from the National Consulting Center, gave 61% a positive image for Petro compared to 23% a negative image, according to polls published a week before the 100 days.
These are some controversies in the 100 days of Petro.
Colombian President Gustavo Petro looks on during a joint press conference with Spanish President Pedro Sánchez after a meeting at the Casa de Nariño presidential palace during an official visit to Colombia August 24, 2022 in Bogotá, Colombia. (Photo by Guillermo Legaria/Getty Images)
A dollar that reached all-time highs
The price of the dollar has been one of the most criticized issues in the first 100 days of Petro’s government, as it reached all-time highs of 5,100 pesos per unit. On August 7, the day he took office, the price was around 4,300 pesos per dollar.
And although his Minister of Finance, José Antonio Ocampo, has promised “a responsible macroeconomic policy”, the truth is that after Petro’s victory in the elections there was a nervousness in the markets regarding the tax reform, which added to the international context High inflation, cuts in the supply chain and the rise in energy and food fueled by the war in Ukraine, caused the Colombian peso to depreciate.
Currently, the price of the dollar is around 4,800 pesos, a drop that according to Petro has to do with the impact of US policy on the world economy.
“[El precio del dólar] It’s going down because there were elections in the United States,” Petro told reporters during his visit to France last week. “It’s just that any sneeze in the world can cause a rise or fall because the world economic system is currently highly unstable and he’s sick.”
The Petro rejected the notion of some analysts that his remarks make the dollar price go up or down, saying it is due to a broader context.
“All these people who estimate the rise or fall according to what Petro says or does not say, well they are totally wrong. What we have is a very vulnerable, very unstable and sick economic system throughout the world,” Petro said. last november 10.
The swing of declarations for the energy transition
One of Petro’s campaign promises was an energy transition from the oil- and coal-dependent matrix to renewable energy. And with it, put an end to extractivism, through a “gradual de-escalation”. But one thing is a proposal as a candidate and another, carry it out.
Petro’s proposal to open the possibility of not continuing with new oil exploration contracts in the country, one of the segments of the economy that generates the most income for Colombia, caused uncertainty in some sectors.
“In general we have seen a strong impact on the Colombian markets, particularly the dollar, and also on interest rates, to the extent that this proposal generates a lot of uncertainty,” Daniel Velandia, director of economic research at Credicorp, told . Capital in Bogota.
Much was said then about the possibility that the oil industry was going to collapse, but Petro has responded to these criticisms and said that the “exploitation and exploration contracts for current hydrocarbons continueIn addition, responding to criticism from his opponents who falsely claimed that “oil and gas will be banned,” Petro said that nowhere in Colombia “neither oil nor gas has been banned” and that these will continue to occur normally.
Tax reform ran out of key taxes
It is common for a tax reform to be something less attractive for many citizens and political containers, but Petro’s managed to pass in the Chamber and Senate in these first 100 days, of course not without strong criticism from both sides of the aisle.
In the first place, the necessary impulse that Petro needed to finance the social programs, which are the banner of his government, remained to be seen, since although Petro sought to raise 25 billion pesos with this reform, with the modifications suffered by the In passing through the legislature, the text will raise 20 billion pesos (about US$ 4,000 million).
And from the tax reform, after political ups and downs and much controversy, the proposal to tax higher pensions was withdrawn. According to the calculations of the Minister of Economy, José Antonio Ocampo, this implied taxing 0.2% of pensioners with a tax of around 20%.
That tax fell, as did the reforms to taxes linked to oil and coal. Petro announced at the end of October a modification of the income tax surcharge paid by the oil and coal sectors. The contribution they make will depend on the international price of the products, so that if prices reach a certain low point there will be no surcharge.
Other taxes proposed by sectors close to the government, such as taxes on churches, were left out. One article proposed to tax a rent of 20% to the churches for activities that do not have to do with worship, education or charity, according to congresswoman Katherine Miranda, author of the proposal. But although it was approved in the Chamber, the text did not pass in the Senate and in the conciliation between the two chambers it was not approved, so in the end it fell.
Protests in less than 100 days
People march to protest against a tax reform proposed by the government of leftist President Gustavo Petro, in Bogotá, Colombia, on October 29, 2022. (Credit: Raul ARBOLEDA/AFP).
The first two months of the Petro government had not been fulfilled and the opposition called for marches at the end of September rejecting, among other things, the tax reform, the increase in fuel prices, what they called the “deinstitutionalization” of the country on behalf of the departure of dozens of high-ranking soldiers in this government and the reactivation of relations with Venezuela, the latter one of Petro’s key policies.
Thousands of people marched against Petro at the end of September in different cities of the country.
The controversy of the down for the presidential private house
Finally, the administrative decisions of the government were not without controversy. At the beginning of October, a series of million-dollar purchases to furnish the private homes of the president and vice president became known, which were criticized even from his own party and his allies.
These are two purchases by the Administrative Department of the Presidency, Dapre, one for 93 million pesos in household appliances (about US$20,000 at current exchange rates) and another for almost 80 million pesos in lingerie and household linen (about US$17,500 ).
Criticism erupted as the purchases occurred in the midst of a state spending austerity plan announced by the president. Petro said that the purchase of bedding is intended for service people. According to him, the conditions for the employees of the Casa de Nariño were “absolute discrimination regarding their food and their rooms.”
