The recent warning by Bruce Mac Master, president of the National Association of Businessmen of Colombia (Andi), about the impossibility of declaring an economic emergency in Colombia sparked a heated network debate with President Gustavo Petro. Now the president is considering the possibility of declaring an emergency due to the failure of his funding bill (tax reform) in Congress, which he hoped would fill a missing item in the nation’s general budget (PGN) for 2026.
The economist assured in his X report that the alternative of economic emergency was out of the question and advised the Petro government to increase spending on public funds. “Colombia does not have the conditions to declare an economic emergency. “The government, which has increased the budget by more than 50% in nominal terms over the last three years, has pushed up government spending to unprecedented levels,” Mac Master said.
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President Petro responded, pointing out that the Andi leader’s statements were false, explaining that the Bank of the Republic’s interest rate increases domestic debt and that expenses are increasing because debts from the Fuel Price Stabilization Fund (Fepec) have been paid off. From their point of view, the situation is exacerbated by the fall in the international price of heavy oil. All of this, as already mentioned, justifies the declaration of a state of emergency.
“The budget will always grow bloated by the debt, which is fundamentally internal, and its implicit interest rate. And the growth of the nation’s current income will always be below the real growth rate of the economy, which is precisely depressed by the real interest rate of the Bank of the Republic.” This is why Andrés Pastrana declared a state of emergency during the 1998 crisis“, Exactly.
In his response to the president, the union leader criticized the head of state’s direct accusations against him: “As is his habit, he starts every argument and tries to delegitimize anyone who contradicts him.. “It would do the country a lot of good, President, if he focused on the arguments and not on attacking people.”
In addition, he assured that the country is currently facing the highest real interest rate in the region, a situation that he attributes to the financial policies implemented by the current government, which, in his view, have increased the financial costs for the state and worsened Colombia’s credibility in the international markets.
In his analysis, Mac Master explained that although the country had complied with the payment of all its debts, it was in an unfavorable position as a debtor. “Today we have an immense financial burden, even though we have paid off all our debts. That means, both in Colombia and in international markets, we are probably the borrower that pays the most for its risk.”
The president of Andi also questioned Petro’s energy policy, pointing out that the current government has deliberately reduced hydrocarbon production, which has had a negative impact on the country’s finances, since fossil fuels are a very strong source of income in Colombia. “He was literally dedicated to attacking our country’s greatest source of resources. And today he complains that there are no resources“, he claimed.
In addition, he criticized the fact that the executive branch prides itself on not producing oil or coal, resources that have historically been fundamental to the Colombian economy.
Regarding the management of public spending, Mac Master warned against excessive increases in certain items, especially in electoral programs, which he said lacked technical rigor. In addition, there is concern about corruption, which, in his opinion, means major financial losses for the country: “It has wasted immense resources.”.
“All this, not to mention the usual annual advance payment of future taxes, which would defund public finances in subsequent years. (…). Or the savings of Colombian pensioners, which he wants to liquidate on international markets in order to bring them to Colombia so that they can invest under fair conditions. Resources in the local market. These are not lies, President, and you know it,” he concluded.
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