Interpellation of Oddone: Botana assures that private investment has "collapsed" and criticizes the exchange rate

Senator Sergio Botana launched a strong critique against Economy and Finance Minister Gabriel Oddone during a parliamentary interpellation, highlighting a severe downturn in private investment and a "silent deterioration" of the labor market. Botana asserted that the current economic policies are creating a "two-tiered" job market, with one segment experiencing real wage increases while another faces unemployment.

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The investment private that has collapsed

Botana specifically challenged Oddone's assertion that "Uruguay will always be expensive." The senator argued that the high cost of doing business stems from "unlimited spending, inefficient public services," and protectionist policies favoring importers. He pointed to the high cost of energy as a deterrent for new businesses and criticized the exchange rate, noting that the dollar closed 2025 at 39 Uruguayan pesos, an 11.4% decrease from the end of 2024.

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the silent deterioration of the labor market

Citing a report from the Autonomous Fiscal Council, Botana warned of risks, including lower-than-expected growth, which impacts tax collection. He explained that low inflation, combined with a weak exchange rate, reduces tax bases, further straining public finances. Simultaneously, low inflation increases the real value of indexed expenses like salaries and pensions, negatively affecting the fiscal balance.

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the minister tells us: ‘Uruguay will always be expensive.’ It will be if it continues with unlimited spending, with inefficient public services in which the interested party dictates, with those that must be maintained and then hiring a private individual to do the job, and protected importers who set the margin they want.

The senator also raised concerns about the proposed changes to the AFAP (Administradoras de Fondos de Ahorro Previsional) pension system, warning that they put "the only secure money a worker has in Uruguay" at risk. Botana emphasized that controlling government spending, rather than increasing fiscal pressure, is the key to economic improvement.

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the exchange rate closed in 2025 with the dollar at $ 39, 11.4% less than at the close of 2024.