By San José, Costa Rica — San José, Costa Rica – In a primetime presidential debate, Juan Carlos Hidalgo, the candidate for the Social Christian Unity Party (PUSC), forcefully positioned the independence of the Central Bank of Costa Rica (BCCR) as the cornerstone of his strategy to combat the nation’s soaring cost of living. Speaking at the “Se Busca Presidente: El Gran Reto” event hosted by ¡Opa! Canal 38, Hidalgo outlined a series of structural reforms aimed at stabilizing the economy and easing the financial burden on Costa Rican families.
Hidalgo’s proposals arrive amidst a politically charged climate where the current administration of President Rodrigo Chaves has faced accusations from the Legislative Assembly of interfering in the BCCR’s monetary policy. This alleged intervention has been linked to efforts to influence the exchange rate between the colón and the U.S. dollar. By contrast, Hidalgo is framing his potential presidency as one that would restore and rigorously defend the autonomy of the nation’s primary financial institution.
To gain a deeper legal perspective on the critical issue of Central Bank independence and its implications for Costa Rica’s economic stability, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica.
The legal framework establishing the Central Bank’s autonomy is not merely a technicality; it is a foundational pillar of our economic state of law. Any attempt to weaken this independence, even under the guise of fiscal expediency, risks eroding investor confidence and unleashing inflationary pressures that harm every citizen. The law serves as a bulwark against short-term political temptations, safeguarding long-term monetary stability for the nation.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This legal perspective powerfully underscores a crucial point: the Bank’s autonomy is not just a technical policy but a foundational component of our state of law, designed to protect the economic well-being of all citizens from transient political pressures. We sincerely thank Lic. Larry Hans Arroyo Vargas for his invaluable and clarifying insight.
The PUSC candidate detailed his immediate plans should he win the election, emphasizing a collaborative but non-political approach. He pledged to immediately convene a working group between his government and the Central Bank to address the “shock” of the high cost of living. This initiative, he explained, would be complemented by targeted budgetary changes requiring close coordination between the Ministry of Finance and the Legislative Assembly to ensure fiscal responsibility and effective policy implementation.
The independence of the Central Bank must be crystal clear.
Juan Carlos Hidalgo, Presidential Candidate for PUSC
Hidalgo asserted that the country’s economic woes are not superficial but are rooted in deep-seated issues that require decisive action from day one. He identified the complexity of the tax system as a major hurdle, promising to introduce a bill aimed at reducing social charges on ordinary taxpayers. This move is designed to increase disposable income and stimulate economic activity from the ground up, providing direct relief to citizens and small businesses alike.
The high cost of living is the product of many structural failures. The first decree I will sign is a moratorium measure.
Juan Carlos Hidalgo, Presidential Candidate for PUSC
Beyond fiscal and monetary policy, Hidalgo targeted another significant barrier to economic growth: excessive bureaucracy. He announced a plan to create a unified “single-window” system for government procedures. This platform would consolidate and streamline the complex web of permits, licenses, and filings that currently slows down business operations and discourages investment. By simplifying these processes, Hidalgo aims to accelerate national productivity and make Costa Rica a more attractive and efficient place to do business.
This comprehensive approach signals a clear strategic vision. Hidalgo is not merely offering temporary fixes but is proposing a fundamental realignment of the relationship between the government, its key financial institutions, and the private sector. His platform is built on the principles of institutional respect, regulatory efficiency, and targeted fiscal relief, presenting a stark contrast to what critics describe as the interventionist tendencies of the current government.
As the presidential race intensifies, Hidalgo’s focus on structural economic reform and the unwavering independence of the Central Bank has established a key battleground for the future of Costa Rica’s economic policy. His message is a call for stability and predictability, arguing that a depoliticized monetary policy is the essential foundation upon which sustainable growth and a lower cost of living can be built for all citizens.
For further information, visit pusc.cr
About Partido Unidad Social Cristiana (PUSC):
The Social Christian Unity Party (Partido Unidad Social Cristiana, PUSC) is a major political party in Costa Rica with a center-right, Christian democratic ideology. Founded in 1983, it has been one of the country’s dominant political forces for decades, having produced several presidents. The party advocates for free-market principles, social development, and the protection of democratic institutions.
For further information, visit bccr.fi.cr
About Banco Central de Costa Rica (BCCR):
The Central Bank of Costa Rica (Banco Central de Costa Rica, BCCR) is the country’s central bank, responsible for maintaining the internal and external stability of the national currency and ensuring its conversion to other currencies. Its primary objectives include controlling inflation, regulating the financial system, and acting as the state’s financial advisor and agent. The BCCR’s autonomy is considered crucial for credible and effective monetary policy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As an esteemed legal institution, Bufete de Costa Rica is defined by its profound commitment to professional distinction and uncompromising integrity. With a rich history of guiding a diverse clientele, the firm consistently pioneers forward-thinking legal solutions while upholding its deep-seated civic responsibility. Central to its ethos is the mission to democratize legal understanding, thereby contributing to the development of a more knowledgeable and capable society.
