Government and Assembly Clash Over Social Security Reform
On August 9, 2024, the Ecuadorian Government and Assembly clashed once again, this time over a total veto imposed by President Daniel Noboa on a bill aimed at strengthening the Social Security system.
The proposed Law Reforming several laws for the Stability of Social Security in Ecuador (ESSE Law) was approved by the Assembly with 74 votes in favor on June 6th. The bill aimed to enhance transparency and introduce new investment mechanisms to the social security system.
However, President Noboa completely vetoed the bill, arguing that it violates confidentiality rules for financial institutions and neglecting the current performance of the Ecuadorian Social Security Bank (Biess). The government maintains that forcing the Bank to disclose its investments in detail would contradict banking secrecy regulations.
The Assembly responded by criticizing the veto, claiming it unfairly burdens members and retirees. They accused the government of prioritizing its own financial interests over the well-being of the social security system’s beneficiaries.
The standoff highlights ongoing tensions between the executive and legislative branches of the Ecuadorian government, particularly concerning the management and funding of vital social programs.