Uruguay Proposes Sweeping Reforms to Boost Competitiveness and Lower Living Costs

Uruguay's Ministry of Economy and Finance has presented a comprehensive "Competitiveness and Cost of Living Reduction Law" to Parliament, marking one of the most significant microeconomic reform initiatives by the government of Yamandú Orsi. The bill, comprising 240 articles and spanning 160 pages, aims to enhance the country's economic landscape through several key areas: streamlining administrative procedures, facilitating foreign trade, promoting competition and innovation, and accelerating investment.

Economy Minister Gabriel Oddone described the initiative as a "modest but important reform of the State." While acknowledging Uruguay's progress in macroeconomic stability, institutional strength, fiscal responsibility, and low inflation over recent decades, the government recognizes that stability alone is insufficient for sustainable growth or improved public well-being. This reform seeks to address those gaps.

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A modest but important reform of the State.

The proposed legislation includes measures such as repealing a 1941 law that prohibited Sunday openings for butcher shops, alongside broader efforts toward deregulation and reducing bureaucracy. The bill emphasizes that regulatory measures must be "appropriate, necessary, and reasonable" to protect sectoral interests and manage risk, while avoiding unnecessary burdens on individuals and businesses.

To foster entrepreneurship, the bill proposes that certain projects or activities may not require prior authorization. Furthermore, it introduces a "positive administrative silence" regime, meaning that if the administration fails to act within stipulated deadlines for low-risk regulatory matters, the authorization will be considered granted. This initiative is set to be debated first in the Senate, with initial reactions from the opposition and the private sector being largely favorable.

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Regulatory measures and administrative requirements must be appropriate, necessary, and reasonable in order to protect the sectoral interest and the level of risk involved, safeguarding the rights of natural or legal persons requesting the procedure, avoiding unnecessary burdens, costs or delays.