Venezuela opposition says no to Maduro’s emergency decree

Venezuela opposition to reject President Nicolas Maduro's 'economic emergency' decree

Photo by: AFP (Archive)
Photo by: AFP (Archive)

Venezuela’s President Nicolas Maduro delivers his annual state of the nation report, in Caracas, Venezuela, Friday, Jan. 15, 2016.

Venezuela's opposition said on Friday it would not approve President Nicolas Maduro's "economic emergency" decree.

The decree would give Maduro 60 days of extraordinary powers to combat a deep recession and triple-digit inflation

"With this government's policies, we have no possibility [of resolving the crisis]," Jose Guerra, who heads the opposition-led congressional commission examining Maduro's decree, told local TV.

"It cannot be approved."

The aim of Maduro’s decree is to control the budget, companies and currency. But the opposition says he already has sufficient powers and insists Maduro is the real problem.

Economist Luis Oliveros has made some comments about the decree.

The decree proposes “some measures” to right the sinking economy - such as cutting huge gasoline subsidies - but contains few new ideas to fight the crisis, Agence France Presse has reported.

“Mr Maduro’s previous emergency decrees - he ruled by decree for most of last year - have resulted in zero economic policy changes,” said research firm Capital Economics.

“It’s difficult to see the economic crisis alleviating anytime soon.”

Venezuela depends on crude for 96 percent of hard currency revenue, but its oil barrel has plunged to under $22 - the lowest in more than 12 years. Imports have plummeted, leading to shortages, but the state has honored debt payments.

With about $10 billion in foreign debt due during 2016, markets are jittery about the possibility of a default, particularly at the back end of the year, when the heaviest payments are due.

AFP, Reuters, TRTWorld and agencies