{"id":2032,"date":"2026-01-06T17:39:23","date_gmt":"2026-01-06T17:39:23","guid":{"rendered":"https:\/\/colombialegaledge.co\/?p=2032"},"modified":"2026-01-12T17:35:32","modified_gmt":"2026-01-12T17:35:32","slug":"economical-emergency-decree-explained-in-plain-english","status":"publish","type":"post","link":"https:\/\/colombialegaledge.co\/en\/economical-emergency-decree-explained-in-plain-english\/","title":{"rendered":"Economical Emergency Decree Explained in Plain English"},"content":{"rendered":"\n
\"Monochrome<\/span>
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Economical Emergency Decree Explained in Plain English<\/h2>\n<\/div><\/div>\n\n\n\n

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On December 22nd, 2025, president Gustavo Petro’s cabinet issued Decree 1390\/2025 to declare an economic emergency in Colombia for a period of thirty days<\/strong>. The reasoning behind this decision, according to president Petro, is that Colombia is facing a fiscal crisis after Congress did not approve the government’s proposed fiscal reforms on two occasions in the past year. The preface of Decree 1390 also quotes reasons for the economic emergency related to increased internal debt, post-pandemic economic difficulties (at a worldwide level) and increased expenses with no income to balance the country’s economy overall.<\/p>\n\n\n\n

Even though the economic emergency can be declared void<\/strong> (we know this can be confusing, but keep reading for a detailed explanation), it’s still important to understand how this mechanism of economic emergency works and how certain taxes could potentially increase, thus affecting certain economic sectors and business models.<\/p>\n\n\n\n

What Does an Economic Emergency Even Mean?<\/h2>\n\n\n\n

Article 215 of the Colombian Constitution allows the president to declare a state of economic, social or ecological emergency or of major public disaster for thirty days which can be extended for a total maximum period of one year<\/strong>. The decree that declares the state of emergency must be:<\/p>\n\n\n\n

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  1. Reasoned<\/li>\n\n\n\n
  2. Signed by the President and all the ministers<\/li>\n\n\n\n
  3. Exclusively aimed at addressing the crisis and preventing the extension of its effects<\/li>\n\n\n\n
  4. Related to matters that have a direct and specific connection with the state of emergency<\/li>\n\n\n\n
  5. And it may, on a temporary basis, establish new taxes or modify existing ones, which shall cease to apply at the end of the following fiscal year, unless Congress, during the subsequent year, grants them permanent status<\/strong>.<\/li>\n<\/ol>\n\n\n\n

    In this particular case, the President presented a reasoned decree, signed by himself and all his ministers, in which he aims to establish new taxes and modify existing ones<\/strong>. <\/p>\n\n\n\n

    However, thanks to the principle of balance of power established in the Colombian constitution, the decree still has to face two additional controls:<\/strong><\/p>\n\n\n\n

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    1. The Constitutional Court<\/strong> must exercise control over the decree’s form, content, purpose, connexion with the causes that led to the state of emergency and, overall, use their criteria and case law to ensure no arbitrary decisions take place and\/or are masked under a state emergency declaration.<\/li>\n\n\n\n
    2. According to Article 215 of the Colombian Constitution, Congress<\/strong><\/a> must also analyze the proposed decree and:\n