Costa Rica: Tax Reform Increasingly Difficult to Achieve

Fitch Ratings is warning that political fragmentation faced by the new government makes correcting the fiscal problem affecting the country very difficult.

Tuesday, April 8, 2014

The rating agency also highlighted as an issue the fact that "it is not yet fully clear how President-elect Solis will address the fiscal problem."

"The fiscal deterioration involves challenges in stabilizing the budgetary burden and the ability of authorities to respond to external shocks that may come in the future, which could erode the business climate and consumer confidence."

"The new administration could benefit from the increased concern that exists regarding the fiscal deficit, following attempts made by the outgoing government to highlight the country's fiscal problems."

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Which way will Costa Rica go now?

April 2014

The President elected with 80% of the votes in the second round, historian and professor Luis Guillermo Solis will have to clear up as soon as possible the uncertainty surrounding the practical line of his government.

Editorial

When it is not essential, as it apparently is, to say in every place what the voters from each district want to hear, the President-elect Luis Guillermo Solís will have to make concrete decisions, and implement them:

Costa Rica: Port Concession Not Under Political Threat

March 2014

The Presidential candidate Luis Guillermo Solis has promised to respect the contract with the Dutch company APM for the construction of a new container dock at Moin.

The likely winner of the presidential election has backtracked on his campaign ads which stated he would "review the ports concession contracts."

Costa Rica: Proposal to Set Public Sector Wages According to Productivity

January 2014

The presidential candidate from the Libertarian Movement party is proposing freezing the state's payroll and implementing productivity based wages.

The Libertarian Movement (Movimiento Libertario) party said that a new government would slow hiring in the public sector and apply wages according to productivity, as they are applied in the private sector.

Elections in Costa Rica: Poll Creates Uncertainty

January 2014

The virtual tie in the polls of candidates from the left, center and right is causing concern among employers.

With less than three weeks to go before the elections for the Presidency and Members of the Legislative Assembly, a poll has shown there is a tie for the top position, according to voter intentions, out of the three parties with distinct government programs, generating uncertainty about the changes to the business environment which could occur during the next term of government in the country.

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