Bolivia's Paz Endures a Week of Political and Economic Turmoil

Bolivian President Rodrigo Paz has endured one of the most turbulent weeks of his nine-month presidency, facing a confluence of political, economic, and legal crises that have exposed the fragility of his administration.

The most immediate blow came on Friday when Paz was compelled to dismiss Economy Minister José Gabriel Espinoza. The move followed a congressional vote to force him out, triggered by a scandal over his purchase of a luxury Audi for a fraction of its market value. Lawmakers also cited his absence from a hearing on the economy amid rising inflation and chronic shortages of fuel and dollars. Espinoza has denied any wrongdoing, attributing the purchase price discrepancy to a clerical error.

Paz initially resisted the congressional vote, calling it unconstitutional, but quickly reversed course. Analysts say the retreat revealed a weakened president, especially after the center-right National Unity party, a key legislative ally, broke with him last week over his reliance on decrees. The loss of Espinoza, the architect of Paz's pro-market reforms, comes at a critical time as the government seeks congressional approval for a $1.9 billion IMF deal and a $200 million World Bank loan.

Economic pressures are also mounting. The government's decision to raise diesel prices for bulk buyers by 84% this week has infuriated farmers and sparked calls for a strike. This follows last year's reduction of generous fuel subsidies, which drove up costs for ordinary citizens.

The week's most explosive development, however, was the arrest of Fernando Cerimedo, an Argentine political strategist with close ties to Paz. Cerimedo is charged with attempted femicide after his former partner, lawyer Nadia Beller, was shot three times outside a hotel. Beller, who is recovering from her wounds, claims the attack was orchestrated to silence her over evidence of corruption she says implicates Cerimedo and people close to the president. Cerimedo denies involvement.

Prosecutors have since raided properties linked to Cerimedo, seizing cash and equipment described as a "bot farm" of fake social media accounts. The government has downplayed his role, calling him a campaign adviser who is now only occasionally consulted. However, Vice President Edman Lara, whose relationship with Paz has soured, has described Cerimedo as a powerful, shadowy figure.

While Paz has weathered previous storms, including a near-eight-week siege of the government seat by protesters, analysts believe this combination of challenges represents his greatest test yet. As one expert put it, the president may survive, but the road ahead will be "very, very bumpy."