Date first published: 07/08/2025
Key sectors: all
Key risks: governance; democratic backsliding; political stability; gang violence
Risk development
On 31 July the ruling New Ideas (NI) party – which dominates the National Assembly – passed a bill with 57 votes in favour and three against, allowing indefinite presidential re-election, extending terms from five to six years and eliminating run-offs. The reform enables President Nayib Bukele to seek another term and shortens his current mandate to align presidential, legislative and municipal elections in 2027, sparking fears of descent into one-party rule.
The bill’s passage came shortly after the Foreign Agents Law entered into force on 7 June. Approved by the National Assembly on 20 May, the law imposes a 30 per cent tax on non-governmental organisations receiving international funding.
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