Photo: EFE.

Bolivian President called an urgent meeting with the mayors of the country’s departmental capitals to address the escalating national crisis triggered by Supreme Decree 5503.

Bolivian President Rodrigo Paz has called for a meeting with the mayors of the nine departmental capital cities and El Alto, in order to address Supreme Decree 5503, through which his government declared an estate of emergency, establishing a broad package of exceptional measures affecting the country’s monetary, fiscal, productive, energy, and social policies.

RELATED: Bolivians Mobilize in Rejection of Rodrigo Paz’s Fuel Price Hike

The meeting has been called amidst the dialogue that the Executive Branch has begun to undertake with various sectors regarding the adopted measure, as well as the mobilizations carried out by other groups opposing the austerity decree.

Prices increased by 86% for gasoline and 162% for diesel compared to the subsidized cost that was in effect for more than 20 years.

In response to the far-right administration’s move to eliminate longstanding fuel subsidies, members of Bolivia’s main labor union, the COB, staged a nationwide strike on Monday against the measure.

Bolivia's Social Organizations Protest Fuel Subsidy Cut. Photo: EFE.

Bolivia’s Social Organizations Protest Fuel Subsidy Cut. Photo: EFE.

Supreme Decree 5503 Measures

  • The Central Bank of Bolivia is now authorized to use previously restricted tools: external credit lines, currency swaps, issuance of international financial instruments, and Treasury-backed guarantees.
  • The “Single Window for Strategic Investments” is created to centralize the evaluation and approval of projects.
  • A special regime for promotion of both national and foreign investment is created. It also enables investment contracts with normative status, approved by supreme decree, and establishes dispute resolution through conciliation and arbitration.
  • For projects deemed strategic (mining, hydrocarbons, energy, agribusiness, infrastructure, export manufacturing), a fast-track procedure is established with a maximum 30-day review period. “Positive administrative silence” (automatic approval) becomes the rule, and officials will face penalties for missing deadlines.
  • General tax relief measures to reactivate the economy are introduced. Specifically, the decree reduces the tariff to 0% for importing key machinery, industrial equipment, and inputs until 2026, aiming to lower production costs and stimulate private investment.
  • The Tax Administration is empowered to prescribe (cancel) interest and penalties on tax obligations from before October 2025.

Bolivia: los trabajadores van a huelga general indefinida contra el gobierno ultraderechista de Rodrigo Paz, títere de EEUU. Recortó subsidios y desató una inflación brutal: diésel +83%, luz +50%, comida +100%, buses +163%.
Otro #Milei: saqueo exprés y entrega del litio a #Trump pic.twitter.com/Ih4SjBmBm0

— Manel Márquez 🍉 (@manelmarquez) December 21, 2025

Text reads: “Bolivia: workers go on an indefinite general strike against the ultra-right government of Rodrigo Paz, a U.S. puppet. It cut subsidies and unleashed a brutal inflation: diesel +83%, light +50%, food +100%, buses +163%”.

From teleSUR English via This RSS Feed.