On February 20, the National Assembly of Ecuador approved a significant reform law concerning the Organic Code of Territorial Organization, Autonomy, and Decentralization (Cootad). The law, which seeks to enhance the sustainability and efficiency of expenditure by decentralized autonomous governments (GAD), garnered 77 votes in favor, 71 against, and 2 abstentions, representing a narrow margin of approval. This assembly session took place at Ecotec University in Samborondón, with 150 legislators present, highlighting the urgency of the economic measures being discussed.

The support for the law came from a coalition including the Acción Democrática Nacional party, some legislators from the Pachakutik party, independent assembly members, and former members of the Revolución Ciudadana. The passage of this legislation reflects ongoing debates within the Ecuadorian government about the management of local governmental finances, especially in light of growing economic challenges. The law's primary advocate, legislator Valentina Centeno, emphasized the need for efficient distribution of resources, positioning the reform as a critical step toward improving public financial management at the local level.

As this law takes effect, its implications will likely be significant for the operations of decentralized autonomous governments across Ecuador. It aims to ensure that resources are allocated more effectively, which could lead to improved services and infrastructure for citizens. However, the narrow passage of the law indicates a divided assembly, suggesting that future reforms may be contentious and require careful negotiation between various political factions within the assembly. The evolving political landscape will be crucial in determining the law's impact on fiscal policies and local governance in Ecuador.