«It is a perverse subsidy,» said the President regarding fuels
The President of Ecuador, Lenín Moreno, announced that they will have an agreement, which will be socialized, regarding fuel subsidies. According to the President, «the good ending» of all this would be «the elimination of a subsidy.»
On Monday, February 17, 2020, the president said “it was very early (the issuance of Decree 883, which temporarily eliminated subsidies) and that there was not enough dialogue. «Yes, there was a lot of dialogue, but early or late it has a strong dose of subjectivity, what is early and what is late?»
The issuance of this Decree, according to the report of the National Assembly, originated the 12 days of protests nationwide, where there were about 9 people killed, several people lost their eye, and economic losses.
Lenin Moreno explained that several analysts agree that the fuel subsidy benefits those who smuggle fuels, who have high-end cars or who use it to make narcotics. «It is a perverse subsidy,» he said.
After the conflict – in October – several rounds of dialogue began. “We are about to have an agreement. Having everyone’s agreement is going to be very difficult, imagine. But we will try to socialize this agreement as soon as possible in order to reach a good end: elimination of a subsidy, whose resources, if they would be saved, would be allocated to the development of the field, which we have not stopped doing but would be reinforced ”, said the president.
On this issue, Vice President Otto Sonnenholzner, on February 12, said the diesel subsidy will not be targeted this year. “I understand that this year the president’s decision has been clear. Diesel is not going to be played, ”he said in a radio interview.
Source: Press Conference
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