Lack of official results from the March 1st elections creates uncertainty among employers and undermines the country's image as a destination for foreign investment.
Representatives from the Salvadoran Association of Industries (ASI) argue that "... the political environment in the country could deter foreign investors. " In addition, this could affect the disbursement of Fomilenio II.
Industrialists are pointing to political and legal uncertainty, high crime rates, corruption, bureaucracy and red tape as the main factors that are keeping away investors.
According to the Salvadoran Association of Industrialists (ASI), the government is not providing the right conditions in the country for the economy to grow, but, on the contrary has adopted tax reforms, which do not contribute its reactivation.
Industrial unions are pointing to "constant and unnecessary" confrontations between Funes and employers which is degrading the investment climate.
The President of the Salvadoran Association of Industrialists (ASI) accused Mauricio Funes of a "lack of investment" in the country, and that his statements undermine the climate of confidence needed to attract investment.
The Manufacturers Association of El Salvador is urging the Government to make changes to the legal framework that regulates the electrical system.
The current legislation does not give priority to supplying the system with power generated from renewable sources, limiting investment in such projects.
Javier Siman, president of the Salvadoran Association of Industries (ASI), said that electricity prices are not competitive to the extent that 50% of the generator matrix depends on of energy from oil. "As the worldwide economy starts growing oil will become more expensive and it will affect us. We have to rely less on oil-based energy, and rely more on energy sources such as solar, geothermal, biomass and wind power," he added.