Venezuela extends 60-day economic crisis due to US trade barriers
Venezuela Renews Economic Emergency Decree for Another 60 Days
President Nicolás Maduro has renewed the Economic Emergency Decree (Decree 5.157) in Venezuela, which will remain in effect until October 7, 2025, with the possibility of an additional 60-day extension. The decree grants the Venezuelan government special powers to address emergency economic conditions in the country.
The decree enables the government to implement extraordinary economic measures to stabilize and manage the economy during the emergency. While specific measures allowed under Decree 5.157 were not detailed in the search results, such decrees generally permit interventions in pricing, production, trade, financial controls, and resource allocations to respond to crises such as inflation, shortages, or economic disruption.
Key points about the decree include:
- Duration: Effective through October 7, 2025, with a potential 60-day renewal.
- Purpose: To address urgent economic challenges by authorizing exceptional government actions.
- Implications: Enables rapid response powers that can impact economic policies, regulatory controls, and resource distribution to manage the emergency situation. This can affect domestic markets, inflation control, and public welfare measures.
Under the decree, the government is also allowed to:
- Suspend national, state, and municipal charges.
- Edit regulations that authorize public credit operations, their rescheduling, and supplements not provided for in the Special Debt Law.
- Collaborate with public powers, security organs, administrative police, and Armed Forces in the fulfillment of the measures of the economic emergency decree.
- Combat tax evasion and suspend the application of national tax exemptions.
- Create extraordinary mechanisms to combat tax evasion and suspend the application of national tax exemptions.
- Define administrative procedures aimed at protecting the national productive apparatus.
- Expand the maximum amounts of debt that can be contracted by the Republic.
- Authorize expenses from the National Treasury and other non-budgeted funding sources.
- Dictate other social, economic, or political measures deemed adequate for the economic and social stability of the country.
The renewal aims to continue defeating imperial sanctions, preserve economic balance, and ensure the full enjoyment of rights by the Venezuelan people. The declaration of the state of emergency is justified due to extraordinary circumstances affecting the Venezuelan economy.
The vice president, Delcy Rodríguez, made an announcement on the Telegram platform regarding the renewal. The announcement was accompanied by the publication of Extraordinary Gazette 6.924.
Venezuela is currently facing a 15% increase in tariffs imposed by the U.S., as well as 25% duties on the trade of oil and gas produced in the country, starting Thursday. The constitutional guarantee of legal reserve in economic, financial, and monetary matters remains suspended during the economic emergency situation.
For a comprehensive understanding of the scope and specific provisions of Decree 5.157, the complete text would be necessary. Interested parties can request the full text by email.
- The renewal of the Economic Emergency Decree by President Maduro indicates a shift in government policy-and-legislation, intended to manage war-and-conflicts and economic crises in Venezuela.
- This decree, which allows the Venezuelan government to implement exceptional measures in economics, politics, and regulations, is part of the general-news discussions regarding the country's ongoing economic emergency and efforts to counter imperial sanctions.
