Paraguay: internal elections, austerity, and border with Bolivia

Politics: internal elections under suspicion and legislative oversight

Municipal internal elections recorded episodes of violence, irregularities, and arrests for vote buying. In Congress, lawmakers are demanding transparency regarding consulates abroad. Paraguay and Bolivia completed the full border demarcation after 87 years, and warnings emerged about pens with microcameras used to record votes.

Woman arrested with seven other people's ID cards in Arroyos y Esteros during electionsHoy, ABC Color
Municipal primaries marred by violence and irregularities in Lambaré, San Lorenzo, and MbocayatyLa Nacion
Deputy Cleto Giménez requests report from Foreign Ministry on Paraguayan consulates abroadEl Nacional
Paraguay and Bolivia complete full border demarcation after 87 yearsLa Nacion
Alert over mass purchase of pens with hidden cameras to record votes in ParaguayEl Nacional

Economy: austerity decreed, persistent informality, and EU-Mercosur agreement

The government enacted an austerity decree for 2026, but analysts advocate structural reforms in public procurement and the Fiscal Fund. Informality affects 60% of workers and accounts for 20.5% of GDP. An IPS audit uncovered a scheme that concealed employer debts exceeding G. 7.670 billion. The EU-Mercosur agreement guarantees zero tariffs for 95% of Paraguayan exports to Europe, and the forestry sector grew 4.6% in volume and 9% in value through May.

Agribusiness: soy in the Chaco approaches the Eastern Region and expanding pork sector

The soy harvest in the Chaco reached an average yield of 2.4 t/ha, approaching the Eastern Region. The pork chain projects strong expansion, with a 43% increase in exports. Parlasur condemned the violence in Bolivia and called for respect for the democratic clause of Mercosur.

Infrastructure: private airfield, binational bridge, and solar plant in the Chaco

The first private airfield integrated into a residential complex was inaugurated in Itapúa, with an investment of US$ 17 million. Brazil and Paraguay are negotiating the expansion of operations at the Puente de la Integración, with disagreement over light vehicle transit. ANDE held a public hearing for the bidding of a 140 MW solar plant in Loma Plata. The commuter rail project in Asunción was questioned as a concealed 30-year debt.

Security: EPP, drug trafficking, and air cooperation with the US

The EPP has carried out 17 kidnappings since 2001, raising more than US$ 3 million. Producer Almir de Brum was released after three months in captivity. Uruguayan Marset used Paraguay as a base for cocaine trafficking to Europe and Africa. Paraguay launched the Cielo Guaraní Soberano program with US support to strengthen air security. A failure in the National Police's Quantum system prevented background checks and document issuance.

Society: heritage, justice, and abandonment in the Chaco and Asunción

A judge defends the separation of property regime as asset protection for women. A former APF leader received a fifth conviction for false testimony. Residents of Toro Pampa remain isolated for nearly a month due to heavy rains. The family of a young person injured by a drunk driver faces debts and fights for justice. An architect warns of the abandonment of 450 historic properties and the depopulation of downtown Asunción.