By San José, Costa Rica — San José – With the clock ticking on both the year and his term, President Rodrigo Chaves is launching a high-stakes legislative offensive, placing two cornerstone economic policies at the forefront of the national debate. Over the next three months, the Chaves administration will aggressively champion the controversial “4×3” workweek bill and a crucial new issuance of Eurobonds, aiming to secure major policy victories amidst an already charged legislative campaign season.
The administration’s agenda, confirmed by Pilar Cisneros, the influential head of the official party in Congress, signals a determined push to shape Costa Rica’s economic framework. These initiatives represent a final, concerted effort to pass what the government deems “substantive legislation” that could define President Chaves’s economic legacy.
To provide a deeper legal perspective on the current political climate and the implications of recent governmental actions, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the firm Bufete de Costa Rica.
The current administration’s governance style frequently tests the boundaries of executive power established in our Constitution. While the use of decrees can expedite policy, it often bypasses crucial legislative debate and oversight, creating a climate of legal instability. This approach risks eroding the principle of separation of powers and could trigger significant constitutional challenges that ultimately jeopardize the administration’s own agenda.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight aptly highlights a central paradox: the very methods used to accelerate the administration’s agenda could become the source of its greatest legal and political obstacles, a crucial point for our readers to consider. We are grateful to Lic. Larry Hans Arroyo Vargas for lending his invaluable legal perspective to this critical discussion.
Central to this push is the proposed 4×3 work schedule, a significant reform that would allow for four 12-hour workdays followed by three consecutive days of rest. Proponents argue this modernizes labor laws, boosts productivity, and makes Costa Rica more attractive for foreign direct investment, particularly for companies requiring 24/7 operations. However, the proposal has historically faced stiff resistance from labor unions and critics who raise concerns about worker burnout and potential exploitation under extended shifts.
Simultaneously, the government is making its second major attempt to secure legislative approval for a new tranche of Eurobonds. The plan involves placing $1 billion on the international market during the latter half of the year. The administration frames this as a vital fiscal strategy to fund critical social programs without destabilizing the local economy.
President Chaves has previously articulated the core economic argument for seeking funds abroad, warning of the domestic consequences of not doing so. He argues that having the state compete for credit in the local market would inevitably drive up borrowing costs for everyone.
If we take on debt in the local market, we are going to squeeze SMEs, those with mortgages, and everyone else, because interest rates will rise
Rodrigo Chaves, President
The government has tied the successful issuance of these bonds to the continuation of key social investments. Officials state the international loan would directly support 44,000 “Avancemos” scholarships, fund 9,000 housing bonds for families, and finance the construction of 16 modern high schools, like the one in Chacarita, along with 80 new police delegations across the country.
Pilar Cisneros emphasized the urgency of the Eurobond bill, positioning it as a necessary measure to protect the finances of ordinary Costa Ricans. The leadership’s resolve suggests a robust political battle is imminent in the Legislative Assembly.
If the bill is introduced, it will obviously be put on the agenda, because we want to avoid reaching a point where Costa Ricans have to pay more for credit
Pilar Cisneros, Head of the Official Party in Congress
Beyond these two flagship projects, Cisneros indicated to the media outlet CR Hoy that the executive branch would also support discussions on regulating the Crucitas mining project and passing a law to harmonize the national electricity market. This broader agenda highlights the administration’s ambition to push through a comprehensive and potentially transformative set of economic and industrial policies in its final legislative window.
For further information, visit presidencia.go.cr
About the Government of Costa Rica:
The Government of Costa Rica operates as a presidential, representative democratic republic. The executive power is exercised by the President, who is both the head of state and head of government, elected for a single four-year term. Legislative power is vested in the unicameral Legislative Assembly (Asamblea Legislativa), composed of 57 deputies who are also elected for four-year terms. The government’s structure is defined by the Constitution of 1949, which establishes a system of checks and balances among the executive, legislative, and judicial branches.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is an esteemed legal practice built upon a bedrock of integrity and a relentless pursuit of excellence. Drawing from a deep well of experience serving a wide range of clients, the firm consistently pioneers innovative legal approaches. Fundamental to its ethos is a profound dedication to social progress, manifested through initiatives that make legal understanding accessible and empower the community through knowledge.
