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EUROPEAN FISCAL: DE 2025 Budget Gap Grows; Political Risk Is Rising

CANADA: Politics Week: Trudeau Facing More Internal Dissent And Departures

CANADA: Politics Week: Trudeau Faces More Pressure To Resign

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COLOMBIA: De-Centralisation Bill Could Undermine Public Finances

COLOMBIA
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  • Bloomberg reports that Congress is discussing a bill that would substantially increase central government transfers to regions, potentially adding almost 15pp to debt over the next decade to 70% of GDP. The proposal would require the central government to transfer 46.5% of its revenue to provinces by 2036, from 26% currently, costing it over $76bn over the period, according to official estimates.
  • A technical study by the Finance Ministry has said that the proposal is not sustainable from a fiscal perspective and would undermine public finances, while BanRep co-director Steiner warned yesterday of a fiscal disaster if the bill was implemented. So far, the bill has already been passed by five of the eight debates needed for it to become law, but it is likely to be challenged in the constitutional court, if it is approved by Congress, as expected.
  • Today, no macro releases are expected, with the next publication scheduled to be September industrial and retail confidence on Monday, ahead of the BanRep MPC meeting on Oct 31.
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  • Bloomberg reports that Congress is discussing a bill that would substantially increase central government transfers to regions, potentially adding almost 15pp to debt over the next decade to 70% of GDP. The proposal would require the central government to transfer 46.5% of its revenue to provinces by 2036, from 26% currently, costing it over $76bn over the period, according to official estimates.
  • A technical study by the Finance Ministry has said that the proposal is not sustainable from a fiscal perspective and would undermine public finances, while BanRep co-director Steiner warned yesterday of a fiscal disaster if the bill was implemented. So far, the bill has already been passed by five of the eight debates needed for it to become law, but it is likely to be challenged in the constitutional court, if it is approved by Congress, as expected.
  • Today, no macro releases are expected, with the next publication scheduled to be September industrial and retail confidence on Monday, ahead of the BanRep MPC meeting on Oct 31.