EU ambassador to Guatemala says attempts to undermine democracy Hurt economy

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By LatAm Reports Editor

Thomas Peyker, European Union ambassador to Guatemala, reiterates that there was no fraud in the elections in Guatemala, but an attempt at a coup d’état

The European Union ambassador to Guatemala, Thomas Peyker, posted on his X-ed and a message referring to the political situation in Guatemala and points out that attempts to undermine democracy and the electoral process impact the country’s economy.

Peyker wrote: “All attempts to undermine democracy and the electoral process in Guatemala are causing very negative impacts on the country’s economy.”

In addition, he pointed out that in Guatemala there was no fraud in the general elections of this 2023 but there was an attempt at a coup d’état.

The publication was accompanied by a note by Bloomberg in which it was reported that the Guatemalan Bonds reported a decrease due to the political crisis in the country.

Guatemala’s dollar bonds were the most valuable on Monday, December 11, among sovereign securities in emerging markets, as attempts to reverse the outcome of the presidential election could turn the nation into a global pariah.

This is indicated by a publication of the specialized news agency Bloomberg, explaining that the bonds regressed along the curve: the titles with a winning in 2050 fell – by noon – 1.7 cents to 85.10 per dollar, the largest fall in more than two months.

The collapse came after prosecutors – from the Public Prosecutor’s Office – called for the invalidation of Bernardo Arévalo’s election victory a month before he is sworn in as president.

The prosecutors’ request poses the biggest threat to date for Arévalo’s inauguration, scheduled for January 14. The United States and the European Union have repeatedly criticized attempts to prevent Arévalo from taking office, and have threatened harsh measures.

Given the risks, investors should be cautious about buying low, Barclays strategists Néstor Rodriguez and Jason Keene wrote, Bloomberg says.

Context

The publication also indicates that the harsh criticisms of the international community show that any break in the democratic order would probably be widely condemned and Guatemala could quickly become a pariah state.

Arévalo won the presidential election in August with a promise to take tough action against corruption.

On Friday, the Public Prosecutor’s Office called for the annulment of the 2023 elections for president, vice president and Congress, ensuring that there were irregularities in the counting of votes.

U.S. Undersecretary of State Brian Nichols said in a X-ray publication that these measures endanger Guatemala’s pro-market reputation and will receive a strong response from the U.S. U.S.

Arévalo described the case as an attempt to “coup dump,” absurd, ridiculous, and perverse state – and insisted that he will assume the presidency in January. In recent weeks, his followers have taken to the streets to defend his electoral victory.

This article has been translated from the original which first appeared in Prensa Libre