Reuters Attack on ARU...
MONTECRISTI, Ecuador, June 20 (Reuters) - EcuadoreanPresident Rafael Correa will bolster his authority this year ifvoters approve a new constitution extending state control overthe economy and opening the way for his possible re-election.
If ratified in a referendum, opponents fear the newconstitution could stunt much-needed investment in SouthAmerica's No. 5 oil producer and undermine key institutionsalready susceptible to political interference.
The constitutional changes hint at leftist Correa'slong-term plans for the OPEC member, where controlling theeconomy -- and therefore cash flow to the military -- is key tosurvival after his three predecessors were toppled by streetprotests and congressional turmoil.
Correa, a popular former economy minister who says he wantsto wrest power from corrupt elites, already has foreigninvestors jittery over his drive to renegotiate oil and miningdeals. He pledges to annul some foreign debt, which he brandsas "illegitimate" deals signed by past governments.
Alberto Acosta, head of the government-controlled assemblyrewriting the constitution, told Reuters it will allow thestate to take a majority stake in oil and mining deals thoughit is still unclear how that will happen.
"We have to regain the state's role in those sectors," saidAcosta, a close Correa ally. "We would like joint ventures ...with a state majority stake, but there could be exceptions." |
