Agreement with Indigenous people: Ecuador's President withdraws controversial fuel decree

After days of violent protests, the government of Ecuador wants to withdraw the controversial decision to increase fuel prices. On Sunday evening the government and the leadership of the indigenous peoples agreed after long negotiations.

After the agreement between head of state Lenin Moreno and representatives of the Confederation of Indigenous Peoples (CONAIE), the cancellation of subsidies for fuel prices will be revised by a joint commission. In turn, the CONAIE ended eleven days of protests across Ecuador, as its leader Jaime Vargas said.

The government had cut subsidies on fuel prices to clean up public finances. The measure was taken as part of the International Monetary Fund (IMF) requirements for a $ 4.2 billion loan.

The resulting increase in diesel fuel prices by more than 100 percent sparked protests from indigenous peoples and trade unions. "One day it took $ 20 for the tractor, the next day it was $ 45, it was not enough to bring the kids to school," said Leónidas Iza, one of the CONAIE leaders, in the televised dialogue with Moreno.

The joint commission, with the assistance of the UN Mission in Ecuador and the Episcopal Conference, is to draft a new decree aimed at preventing the abolition of fuel subsidies affecting the poorer sections of the population.

More than 500 injured in protests

In the sometimes violent clashes oil facilities were temporarily occupied, the Parliament stormed - and imposed by the government a curfew and even used the military; the capital Quito was at times a civil war theater. The violence cost at least five lives until the weekend, more than 500 were injured. More than a thousand protesters were arrested.

Whether the agreement reached brings peace into the country, is questionable. For last, it was only superficially about the increase in gasoline prices. It is no longer just about unpleasant austerity measures of the heavily indebted state, displeasing the population, but about the head of Moreno. The demonstrators accuse the 66-year-old of having handed over his land to the International Monetary Fund (IMF), thus driving the population into financial and social hardship.

• An analysis of the underlying causes of the controversy and the current state crisis can be read here: Uprising against the IMF