Colombia Declares ‘Economic Emergency’ After Tax Rises Blocked

Colombian President Gustavo Petro declared an ‘economic emergency’ after congress blocked his attempt to raise taxes.

The emergency is justified by a strained fiscal position, the need for higher spending on health care and security, and the rejection of the tax bill, according to the decree published Dec. 22.

The declaration allows the government to enact tax increases without congressional approval. The decree was signed by the whole cabinet.

Economic emergencies are normally reserved for extraordinary crises such as earthquakes and pandemics, and it is possible that the nation’s Constitutional Court will overturn it.

Earlier this month, congressional economic committees ...