On the afternoon and evening of Saturday, February 14, the National Assembly of Ecuador commenced its first debate on the Organic Law Reforming the Organic Code of Territorial Organization, Autonomy, and Decentralization (Cootad) aimed at ensuring the sustainability and efficiency of spending by decentralized autonomous governments. This initiative, deemed urgent in economic matters, was supported by a report from the Economic Development, Productive Sector, and Microenterprise Commission, and was presented by President Daniel Noboa Azin.

During the session, 16 legislators participated, and while Assembly member Xavier Lasso proposed a motion to deny and archive the urgent project, it failed to garner the necessary votes for approval. The central goal of this bill is to establish clear fiscal rules to guide local government spending towards public investment and the provision of basic services, addressing concerns about the efficient use of resources by local entities.

As Ecuador faces significant economic challenges, the discussion around this bill is crucial, reflecting the government's efforts to promote fiscal discipline and manage resources effectively at the local level. With ongoing debates about public spending and economic recovery, the decisions made regarding this legislation will likely have lasting implications for the financial health of decentralized governments in Ecuador.