Monday, May 11, 2026

Referendum is Laura Fernández’s “ace in the hole”

With 31 pro-government deputies, the new president can call a referendum whenever she wants

Q COSTARICA — With an ambitious agenda that includes the approval of the 4×3 work schedule, the sale of the Banco de Costa Rica (BCR), gold mining in Crucitas, and the development of the Government City complex, President Laura Fernández began her term last Friday.

This is a work agenda that will involve much dialogue, negotiation, and even clashes with political parties, so it is very likely that her intentions will face fierce opposition.

However, Fernández has an ace up her sleeve to carry out her tasks and approve these projects and other initiatives she desires, such as a new expropriation law, the Limón marina and cruise terminal, a reform to the organic law of the Comptroller General’s Office, and the law harmonizing the electricity market.

The ace is her power to call a referendum or public consultation whenever she thinks it’s necessary.

In essence, a referendum is a mechanism of direct democracy that allows citizens to approve, modify, or repeal laws through popular vote, as was done in 2007 when Costa Ricans voted to approve the Free Trade Agreement (FTA) with the United States.

The possibility of holding a referendum could be considered by the new president, given that the new blocs of the Partido Liberacion Nacional (PLN) and the Frente Amplio (FA) will have 17 and 7 legislators, respectively, which would allow them to delay the approval of certain bills for months or even years.

In fact, a single legislator could be capable of obstructing the legislative process if they have a thorough understanding of the legislative rules, as is the case with the elected legislators José María Villalta and Edgardo Araya, of the Frente Amplio.

In the initial case, having 31 pro-government legislators means securing the needed 38 votes in the Legislative Assembly only requires support from a few opposition members.

The other option is for the president to ask the elections tribunal—Tribunal Supremo de Elecciones (TSE)— to organize the referendum. For this, just 29 lawmakers need to approve the request.

The second possibility is for the president to request the elections tribunal, the Tribunal Supremo de Elecciones (TSE) to hold the referendum. In this case, the decision must be validated by only 29 legislators for the process to begin.

The final method to trigger a referendum is by gathering signatures from 5% of registered voters. Considering the president’s current approval ratings, this shouldn’t be too difficult.

Referendums can only be held once a year and only six months before or after presidential elections.

In referendums, Costa Ricans vote on a bill, or even several bills at the same time, and only have to choose between “yes” or “no.”

Fiscal, budgetary, pension, and state credit matters are off-limits to referendums. Changes to the Constitution and decisions on minority issues are also prohibited, according to the Constitutional Chamber or Sala IV as it is often referred to.

Everything else is permitted, such as the closure and merger of institutions, the sale of a state bank sich as the BCR, legalizing marijuana, promoting mining, approving the 4×3 work schedule, and the Limón marina and cruise terminal, among others.

What does Laura Fernández intend to do?

President-elect Laura Fernández has been quite clear about the projects she intends to promote along with her caucus of 31 representatives. To help with this, she named former president Rodrigo Chaves as the Ministro de la Presidencia (Chief of Staff). One of his key jobs is to keep the lines of communication open between the Executive and Legislative branches.

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27 March 2026 - At The Banks - Source: BCCR

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