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Economy/MacroArticle

Bolivia’s Congress censures economy minister, threatens reform agenda

Lower house votes to remove Jose Gabriel Espinoza after failure to appear before lawmakers; President Paz’s government calls vote unconstitutional and plans legal challenge.

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Elena Kovač · Central Banks Desk · 20 Aug 2026 · 04:05 · 1 min read
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Bolivia’s Congress censures economy minister, threatens reform agenda

Bolivia’s lower house of Congress voted on Tuesday to censure Economy Minister Jose Gabriel Espinoza, a move the government of President Rodrigo Paz described as unconstitutional and a setback to its economic reform agenda.

The motion passed with 91 votes in the 166-member chamber, falling short of the 111 required for a two-thirds majority but still sufficient under internal congressional rules. Lawmakers cited Espinoza’s failure to appear before Congress to address questions on monetary policy, macroeconomic planning and fuel shortages as justification for the censure. Espinoza stated he had traveled to Santa Cruz to resolve diesel supply issues before departing for Brazil, describing the dismissal as a symptom of "extreme" politicization.

Presidential spokesperson Jose Luis Galvez said Espinoza could pursue legal remedies within 24 hours, the constitutional window for the president to remove a censured minister. Galvez argued the vote was invalid, asserting that internal congressional procedures cannot override constitutional requirements and that the resolution lacked sufficient support.

The political confrontation coincides with Paz’s administration seeking approval for a financing program negotiated with the International Monetary Fund in July. The program, aimed at stabilizing Bolivia’s economy and easing fuel and foreign currency shortages, still requires endorsement from both Bolivia’s Congress and the IMF Executive Board. The administration has also faced scrutiny over an alleged purchase of an Audi vehicle at a price below market value, which Espinoza attributed to a paperwork error.

The constitutional dispute is expected to be resolved by the nation’s top tribunal, the Constitutional Tribunal, after Espinoza indicated he would exercise his constitutional rights.

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
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Written by
Elena Kovač
Central Banks Desk

Elena covers macroeconomic data and policy across the eurozone, translating industrial output, inflation and growth figures into what they mean for markets.

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