Colombia Proposes New Economic Emergency to Tackle Flooding

Written on 02/11/2026
Josep Freixes
The Colombian government is preparing a new economic emergency decree to address the consequences of flooding in the Caribbean. Credit: @UNGRD / X.com.

The floods that have severely hit several areas of Colombia’s Caribbean region have once again brought to the forefront the debate over how to finance a state response that is far from routine. Due to this, the Colombian government might declare an emergency after the flooding.

Amid the start of a year marked by heavy and unusual seasonal rains, the Colombian government announced that it plans to seek a new declaration of economic and social emergency to mobilize additional resources to address the humanitarian crisis, rebuild infrastructure, and support the thousands of victims who have seen their homes, crops, and livelihoods swept away by the water.

The Caribbean region — particularly the departments of Cordoba, Sucre, and Bolivar — is reporting severe damage following river overflows, landslides, and persistent rainfall that have not only caused mass displacement but have also left communities isolated and basic services at risk.

The Ministry of Finance estimates that close to 8 trillion pesos (approximately US$2.18 billion) would be needed to comprehensively address these impacts and restore the social and productive fabric of the affected area.

This projection, presented during a Cabinet meeting in Monteria, underscores the fiscal dimension of a climate crisis that threatens to expand, as authorities insist that these events are “extraordinary and unforeseeable” and justify the use of exceptional constitutional mechanisms.

Colombia proposes a new economic emergency to tackle flooding

The government’s proposal comes at a time of economic and political complexity. At the end of December, the executive branch had declared an economic emergency that allowed for the adoption of extraordinary fiscal measures without congressional approval, in an attempt to close a deep fiscal gap following the failure of several tax reforms.

However, the Constitutional Court provisionally suspended that decree, arguing that the criteria of “extraordinary and unforeseen” required by the Constitution were not met, thereby reopening the debate over the legitimacy of such executive powers in times of budgetary strain.

In light of this situation, President Gustavo Petro and his team have publicly insisted that the government “cannot remain paralyzed” in the face of disasters in the Caribbean and other regions of the country, and have raised the possibility of declaring a new economic emergency if the Court does not lift the suspension of the previous decree.

This new declaration would not only be aimed at financing reconstruction after the floods, but could also include a series of tax measures to raise the necessary resources in a context of fiscal deficit.

The core of the government’s fiscal strategy under this new emergency would be the creation of an extraordinary wealth tax on legal entities, with the aim of raising most of the nearly 8 trillion pesos (approximately US$2.18 billion) estimated to be required.

Yesterday, the government held a council of ministers meeting focused on the flooding situation in Monteria, the capital of the department of Cordoba, the region most affected by the inclement weather. Credit: Ovidio González / Presidency of Colombia.

The government defends that there are conditions for an economic emergency

Under the proposal presented by Finance Minister German Avila, this tax would apply to companies with net assets exceeding 10 billion pesos (approximately US$2.7 million), with progressive rates that could rise to as much as 1.2% for high net worth holdings.

According to the Ministry, around 15,000 companies would be affected by this measure and would contribute to financing the emergency plan.

In this regard, the government argues that the disaster caused by the rains meets the legal conditions required to request this state of economic emergency.

“These are clearly unforeseen and unpredictable events, and for that reason, we have considered that, to address this situation, it is once again necessary to establish a measure of economic emergency, through which the government can access additional resources to confront this new, unforeseen, and exceptional event,” Avila stated at the council of ministers.

Although the burden of the tax would be concentrated on business sectors with greater assets, the measure has sparked intense political and economic debate. Supporters of the government say that it is a fair way to distribute the tax burden at a time of extreme need, while critics warn that imposing new taxes in a scenario of economic slowdown could discourage investment and affect the business climate.

In addition, some political sectors have questioned the constitutionality of using states of emergency for strictly fiscal purposes, arguing that it could set a dangerous precedent for future administrations.

Heavy rains and a deficit that complicates the response

The 2026 rainy season and the flooding in Colombia have surprised experts and authorities with their intensity, especially in regions that historically do not experience such high levels of rainfall at this time of year.

The phenomenon has left thousands of families affected and has raised questions about disaster risk management and investment in preventive infrastructure.

Meanwhile, humanitarian response efforts continue with the mobilization of aid by the National Unit for Disaster Risk Management (UNGRD) and coordination with local authorities.

In light of this situation, the executive has reaffirmed that without access to extraordinary resources, it will be impossible to meet recovery and reconstruction needs, and has urged the Constitutional Court to be consistent with the emergency reality the country is facing.

With the economy under pressure and intense political debate over financing methodologies, in a highly polarized electoral context, Colombia is seeking ways to address the damage caused by unusual rainfall in the first few months of the year, which has had a huge impact on people, crops, and livestock in a region that will need all the help it can get to recover, such as an economic emergency due to flooding in Colombia.