Ecuador’s Lasso faces ongoing pressure post-protests

Significance

The vote came after two weeks of national strike action led by the Confederation of Indigenous Nationalities of Ecuador (CONAIE). Lasso responded to the strike by declaring a state of exception, limiting protest rights. CONAIE called off the action on June 30 after Lasso agreed to reduce fuel prices, reform extractives policies and establish a commission to address other demands.

Impacts

• International investors will be concerned about the economic disruption caused by the protests and the possibility of renewed action.
• Heightened tensions between the executive and legislature will further complicate Lasso’s economic reform agenda.
• The government might need to increase borrowing to cover the costs of the protests and respond to CONAIE’s demands.