Panama’s President Mulino: “I Don’t Work With Mercy” in the Face of the Teachers’ Strike

President José Raúl Mulino warned the National Assembly and the teachers’ union on Thursday that he would veto without hesitation “any law that he considers unconstitutional ” regarding educators’ right to strike.  The statement comes in direct response to a proposal by Representative Jairo Salazar that seeks to grant teachers the power to be absent for up to 60 days without the dreaded salary deduction.  During his press conference, the president said: “Education is not solved with paid strikes; it is solved by working, modernizing, and updating educational processes.”  The president faced the possible approval of the initiative. “I don’t work with mercy when it comes to the interests of the country’s education ,” he declared, sending an unequivocal message to those seeking laws that, in his opinion, “affect the normal development of the education system.”

Immovable Cabinet

On the other hand, despite criticism from deputies and the low ratings given to several ministers, Mulino ruled out any cabinet changes , stating that he was “satisfied with the results” of his team after 15 months in office.  “Not all ministries execute at the same pace , but I’m satisfied with the results,” he stated, downplaying criticism and “low ratings.” He emphasized that if he needs to rotate, he will, but that “at this time, no changes” are contemplated. 

Budget Adjustment

In addition, it was announced that the Government has convened an extraordinary Cabinet meeting for next Monday, October 13, to evaluate the Budget Committee’s recommendations on the 2026 General State Budget proposal.  Deputy Minister of Economy Eida Gabriela Sáiz announced that the Ministry of Economy and Finance is receiving recommendations to make the necessary adjustments before the first debate in the Assembly.

$150 Million for SMEs

In an economic relief announcement, Mulino confirmed the creation of a $150 million Guarantee Fund for SMEs, developed jointly by the National Bank of Panama, the IDB, and the MEF, seeking to finance small and medium-sized businesses.  The program, which will guarantee up to 50% of loans up to $600,000, could grow to $900 million. “We want entrepreneurs to know that the State is on their side,” Mulino said.

International Lists

Finally, the president addressed the progress made toward removing Panama from international lists, both as a non-cooperative jurisdiction of the European Union (EU) and as an illegal fishing jurisdiction.  The government acknowledges that, for now, Panama will remain on the EU list. Vice Foreign Minister Carlos Hoyos explained that the process is technical and requires tax reforms that will be presented to the Assembly before February 2026, seeking to modernize the tax system without eliminating the territorial model.  Regarding the “yellow list” of illegal fishing, Hoyos explained that controls on vessels have been strengthened, a step “vital for national exports.”