Protests in Ecuador last night

(from Euronews)

Thousands of demonstrators have taken to the streets across Ecuador. This is the third week of protests; people are angry about new tax legislation tabled by the government of President Rafael Correa.

Bills have been introduced to raise taxes on inheritance and capital gains. This has hit hard in Ecuador, where 95 percent of businesses are family-owned.

The reform is currently being debated in Ecuador’s National Assembly.

In Guayaquil, the city’s mayor told the crowd that Ecuador is going through a difficult time, both politically and ideologically. Describing the situation as a “class war”, Jaime Nebot accused the government of dividing the country, following the same path as the government of Venezuela.

After eight years in power, Rafael Correa says the protests are aimed at destabilising his government. With an economy based on high oil prices, the Ecuadorian government has had to introduce a series of measures to counter a 50% decline in revenue.

The president says the new laws will create greater equality.

(from CNH Tours)

The protests in Quito caused delays to those wishing to move around the city, as reported by our travel agent friend there.   The protests have been facilitated by a growing opposition to the president's desire for a constitutional changed which would allow him to sit for a third term.  

We have heard of no significant impact on visitors to Ecuador. 

For more interesting background on Ecuador, its economy, dollarization, and where things are thought to be headed, see this:  http://news.investors.com/ibd-editorials/062415-758828-ecuador-weakens-us-dollar-as-its-official-currency.htm 

 

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