Chavez to Get Powers to Remake Venezuela

Jan 31, 10:52 AM (ET)
By FABIOLA SANCHEZ

CARACAS, Venezuela (AP) - A Congress wholly loyal to President Hugo Chavez met at a downtown plaza Wednesday to give the Venezuelan leader authority to enact sweeping measures by presidential decree.

Hundreds of Chavez supporters wearing red - the color of Venezuela's ruling party - gathered in the plaza, waving signs reading "Socialism is democracy!" as lawmakers read out the proposed bill giving the president special powers for 18 months to transform 11 broadly defined areas, including the economy, energy and defense.

"The people of Venezuela, not just the National Assembly, are giving this enabling power to the president of the republic," said congresswoman Iris Varela, addressing the crowd next to the National Assembly.

Chavez, who is beginning a fresh six-year term, says the legislation will be the start of a new era of "maximum revolution" during which he will consolidate Venezuela's transformation into a socialist society. His critics, however, are calling it a radical lurch toward authoritarianism by a leader with unchecked power.

The former paratroop commander has already said he will use the law to decree nationalizations of Venezuela's largest telecommunications company and the electricity sector, slap new taxes on the rich and impose greater state control over the oil and natural gas industries.

A final draft of the law shows Chavez will also be allowed to dictate unspecified measures to transform state institutions; reform banking, tax, insurance and financial regulations; decide on security and defense matters such as gun regulations and military organization; and "adapt" legislation to ensure "the equal distribution of wealth" as part of a new "social and economic model."

Chavez also plans to reorganize regional territories and carry out reforms aimed at bringing "power to the people" through thousands of newly formed Communal Councils, in which Venezuelans will have a say on spending an increasing flow of state money on neighborhood projects from public housing to road repaving.

Lawmakers were scheduled to formally approve the law Wednesday in an outdoor session in Caracas' Plaza Bolivar, next to the National Assembly.

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