Venezuela High Court Gives Maduro Economic Crisis Powers
Venezuela's Supreme Court has approved President Nicolas Maduro's request for special powers to tackle a deepening economic crisis, overriding opposition from lawmakers to place the oil giant in a 60-day state of emergency.
In a ruling late Thursday, the court said the decree issued by the socialist president last month had entered into force, granting him expanded authority over the moribund economy of the oil-rich, cash-poor South American country for two months.
Last month's rejection of the decree by the National Assembly "does not affect its legitimacy, validity, entry into force and legal effect," the court ruled, saying lawmakers had not followed the proper procedures to reject the bid.
"This will make our task a lot easier," Maduro responded on state television after the ruling. He said he would announce the first measures in the coming days.
"The Supreme Court of Justice has spoken, its word is holy and must be respected by all parts of society and all institutions."
The decree gives Maduro's administration special temporary powers to take over private companies' resources, impose currency controls and enact "other social, economic or political measures deemed fitting."
Opposition lawmakers reacted with dismay.
"The Supreme Court cannot usurp the competence of the legislature," tweeted the deputy Juan Guaido.
Another lawmaker critical of the decree, Jose Guerra, charged that the court "considers itself a state within the state," charging that it "believes itself to be above the will of the people."
The opposition, which took control of the legislature in early January for the first time in 17 years, charges that Maduro has packed the court with his allies, as the political standoff between the two sides drags on.
Venezuela has the world's biggest known crude reserves but the price of oil has plunged over the past year and a half, slashing its revenues.
As a result, the country is suffering from crippling shortages of basic goods -- from coffee to cooking oil and diapers.
Lawmakers on Thursday urged Maduro to launch an international appeal for "humanitarian aid" to help stave off the threat of famine posed by the shortages.
Announcing the decree in mid-January, Maduro admitted Venezuela was in a "catastrophic" economic state, but said his emergency plan would allow the government to shore up its health, housing, education and food services.
Maduro has vowed to overhaul the country's system of production to shift it away from the oil revenue on which his social spending programs have relied.
The government says the plan would allow them to reach agreements with the private sector to stimulate production, but Maduro's opponents say it is a smokescreen for expropriations.
Lawmakers had voted by 107 votes to 53 to reject the measure, fearing along with trade unions and the business community that it could threaten private property and enterprise, destroy jobs and worsen economic hardship.
Analysts say the political standoff threatens to worsen the hardship that drove voters to hand the opposition a landslide election victory last month.
"The problem Venezuela has is that it lacks a mediator to settle the conflict of power, which complicates the situation even further," said Asdrubal Oliveros, head of analysis firm Ecoanalitica.
Experts have warned of the risk of a repeat of violent street clashes that left 43 people dead in 2014.
With sliding crude prices eroding the oil giant's export revenues, dollars have grown scarce -- sending the price soaring at black-market exchanges.
The country's inflation rate is among the highest in the world at over 140 percent, as the exchange rate chaos wreaks havoc on supply and demand in the import-dependent country.
Source: Agence France Presse
| Copyright © 2012 Naharnet.com. All Rights Reserved. | https://www.naharnet.com/stories/en/201941 |