Presidet Mauricio Funes accused legislators from his own party of being "populist and irresponsible", for passing a bill eliminating the basic fee on fixed telephony.
The country's two main political parties, FMLN (party in power) and ARENA (opposition), teamed to pass a bill eliminating the basic fee for fixed telehony.
América Móvil, Telefónica, Tigo and Digicel, the telecommunications companies who operate in the country, have announced they could withdraw from the country if the measure comes into effect.
It seems that not everyone in Funes' Government shares his objective of making investors feel secure.
Referencing policies implemented by Chilean governments, Rafael Castellanos wrote in Laprensagrafica.com: " 1) It is necessary to enlarge the social security network and 2) To reduce poverty we need growth, and to grow we need to attract foreign investment, and for this we need to make investors feel safe, we need them to be sure that the Government won't change the rules at any moment, in the long term required for obtaining returns over investments. Those are two key pillars for Chile's success".
The transition process of the Salvadoran government is proving that alternation of power contributes to sound political practices.
Observable facts in the current transition process between the government of the outgoing ARENA party and the incoming FMLN party, are positive signs up until now and differ sharply from other transitions.
The editorial from Sunday, May 24 2009 in Laprensagrafica.com analyzed and welcomed this year's pragmatic politics, giving reasons for this: "There had never before been a transition from one government to another like the one that is taking place this time. There had never been an occasion with so much political and citizen expectation with regard to the make-up of the incoming head’s cabinet. Transparency in public accounts, also driven by the pressure of the fiscal crisis, rather than being a cause for friction, has served to encourage understanding between parties."
The new government of El Salvador faces a difficult economic reality
El Salvador elected a new president on March 15. Mauricio Funes of theFMLN party will take the presidency in what appears to be a difficult adjustment period for the global economy and particularly for El Salvador because it will have to face a disproportionate impact from the US recession and narrow external liquidity conditions.
The Salvadoran Bank Association will request the SSF to release the $261 million imposed due to the elections.
In late 2008, the Financial System Superintendent (SSF) ordered a 3% increase in liquidity reserves which were at 25% for the protection of deposits if there was a bank run. This increase represented $261 million for the banks which will request for the money to be released as soon as possible.
In declaring himself the winner, Funes emphasized his commitment to respecting the rule of law and constitutional norms.
In a speech with a moderate tone, the winning candidate expressed his conviction to the strengthening of national reconciliation, referring to the peace agreement reached 20 years ago to end the civil war. He stressed his determination in ensuring the democratic functioning of Salvadoran society, freedom of expression and religion, and the consolidation of national unity.
According to a poll by CID-Gallup, El Salvador's presidential election could be very close. 39% of respondents would vote for Mauricio Funes while 35% would back Rodrigo Ávila.
The article published by Angus Reid Global Monitor on its website states: "In September 2007, Funes became the FMLN’s presidential nominee. In March 2008, Ávila, a former National Police chief, won ARENA’s three-candidate internal nationwide primary."
This special report by Fitch examines the credit risk dynamics of El Salvador as it coincides with the end of a political cycle in the country.
Financial pressures and external liquidity, exacerbated by political uncertainty during a pre-electoral period, led Fitch to modify the Prespectives of the IDRs of sovereign risk in the long-term regarding foreign and local currency in October 2008.
With 46.3% of the votes counted, the Elections Tribunal announced that the FMLN had won 37 seats, three more than its main rival, the right-wing Nationalist Republican Alliance.
According to europapress.es: "When confirmed, these results will give the FMLN will have five more lawmakers than in the previous legislature, and would control the Legislative Assembly, the unicameral organ that is made up of 84 lawmakers, with the support of some of the minority parties, according to the 'El Salvador' daily. The old guerrillas managed to improve in the results especially in the eastern part of the country, which is historically unfavorable to the FMLN.
Candidate Mauricio Funes met with Mexican magnates Carlos Slim and Ricardo Salinas promising to respect their investments in case he wins the elections.
Funes, former news anchor for CNN, is the favorite to win the elections to select a successor to president Elias Antonio Saca from the right. If he wins, it would be the first time that the ex-guerrilla Farabundo Marti Front for National Liberation (FMLN in Spanish) is in power.
Future lawmakers are willing to facilitate mining in the country, but with certain conditions that will prevent contamination.
With the joke that if a congressman found gold under his house he would vote in favor of a law to allow him to excavate all the metal, invitees to the debates of congressional candidates for the central zone made it clear that they are in agreement to regulate mining, which has been an important topic due to the interest by several companies in digging on Salvadoran soil.
ARENA choose businessman Arturo Zablah as running mate for Rodrigo Avila for the March 2009 presidential election.
"I have invited him to be on the presidential ticket," Avila announced last night at a press conference at ARENA headquarters, surrounding by fully session of COENA, lawmakers, and department heads from the Party.
Almost at the same time that Avila was making the announcement, President Antonio Saca said at another event that with the nomination of tickets running mate - which he said was a "message of opening" - the moment had come once again for the party "close ranks" behind Avila.
With the presentation of their candidates for mayors and lawmakers, the political parties will start an "intense battle" this week in preparation for the general elections in 2009.
"What we are going to see this weekend, is the start of an intense battle to win over electors of which an average of 20% have still not yet decided who they will vote for," the director of the Public Opinion Institute at the Francisco Gavidia University, Mauricio Henriquez. For Henriquez, the major political parties make an effort to publicly present their candidates, since in surveys most of the population believes that lawmakers "do not work for the people."
The candidate for FMLN, which is topping voting polls, said that if he wins the presidency in 2009 he will continue with a dollarized economy and up hold all trade agreements that are in force.
Funes acknowledge that his party, the Farabundo Marti Front for National Liberation (FMLN), opposed the dollarization which begun in January 2001 from the start.
Mauricio Funes, FMLN candidate, has an advantage of 10 points over the ARENA candidate, Rodrigo Avila, when it comes to votes.
There is no viable third option, so one of these two will be the one who guides the destiny of the country until 2014.
The main argument of the FMLN candidate is that ARENA has governed the country for 20 consecutive years (four presidential administrations) and has not managed to solve the main problems of the majority of the people. Even in the 21st century, a great part of the populace does not have access to potable water, electricity, and much less a education that will allow them to come out of poverty.