Peru's Fujimori Government Seeks Legislative Powers for Reforms in Security, Taxes, Labor

The government of Peruvian President Keiko Fujimori has formally requested legislative powers from Parliament, seeking authorization to issue norms and implement reforms across a range of sectors. The primary focus of these proposed changes lies in security, prison systems, taxation, and labor laws, areas where the administration anticipates the most substantial transformations.

This request marks a significant step roughly one month into Fujimori's term. While the administration had initially intended to present this request within its first week, public criticism surrounding certain proposed reforms in an earlier draft prompted a reconsideration and revision of the proposal. The finalized document, approved by the cabinet this week, was submitted to the legislature on Friday for processing.

Among the notable proposals is the reform of legal frameworks to enable the classification of criminal organizations as terrorist entities. Additionally, the government aims to modify regulations governing the proportional use of force by police and armed forces. The administration also intends to overhaul the prison system, which currently holds approximately 100,000 inmates in facilities with a combined capacity of only 40,000. "Drastic measures" are being considered, including the construction of new prisons and the relocation of low-risk inmates to disused military barracks under the control of the armed forces.

Economically, Fujimori's administration plans to introduce incentives and support for the formalization of small and medium-sized enterprises (SMEs). It also seeks to establish a framework for productivity bonuses and performance incentives within the private sector. Furthermore, the government intends to adjust the public holiday schedule, moving most mid-week holidays to the nearest Monday to boost productivity and domestic tourism through extended weekends. Changes are also planned for tax and agricultural matters, as well as water management and mining concessions.

The request for legislative powers faces its first hurdle in the Chamber of Deputies, where the ruling party lacks a majority. Approval from this chamber is necessary before the proposal can advance to the Senate, where Fujimori reportedly holds the support of half the senators.