Santiago Peña Palacios

Early life

Peña was born on 16 November 1978 in Asunción, Paraguay to José María Peña Nieto (a Paraguayan) and Ana María Palacios (an Argentine from Buenos Aires). He has two brothers: Manuel and Francisco Peña. Through his father's side he is a direct descendant of former dictator José Gaspar Rodríguez de Francia, considered to be Paraguay's founding father.

Education

Peña holds graduate degrees from the Universidad Católica Nuestra Señora de la Asunción (2001) and the School of International and Public Affairs, Columbia University (2003).

Academia

In 2004, Peña taught as an adjunct professor at the Catholic University of Asunción, teaching financial theory. In 2005, he became a professor of economic policy at the same establishment.

In addition, Peña has contributed to scholarship on monetary policy and finance. In 2017, he was invited by the Professor and current Ecuadorian ambassador to Chile Roberto Izurieta to participate as a visiting professor at the Graduate School of Political Management of the George Washington University in Washington D.C., where Peña shared his experience on public administration in Paraguay. He also was the thesis advisor of Geovanny Vicente, CNN columnist and professor at Columbia University.

Early career, Minister of Finance, and first presidential run (1999–2018)

Peña joined the Industrial Development Fund as an analyst in 1999 and served as an economist at the Central Bank of Paraguay from 2000 to 2009.

He was appointed as one of the four directors of the Central Bank of Paraguay in 2012, leaving his job at the IMF.

Ministry of Finance

Horacio Cartes picked Peña to replace Germán Rojas as finance minister in 2015, following Rojas's resignation on personal grounds. As Peña took office, Cartes described him as a "bright young man" who would reinvigorate Paraguay's economy in the face of low global soy prices and a slow regional export market.

As Minister of Finance in 2016 and 2017, Peña promoted the project to create the Superintendency of Retirements and Pensions.

Peña indicated, “There have already been situations of embezzlement with the case of the Pension Fund of the Binational Itaipú (Cajubi).”

The Itaipu Retirement and Pension Fund (Cajubi) and the Itaipu Workers' Union (STEIBI) opposed the project. In a joint press conference in November 2016, the two groups stated that they saw the plan as an “unconstitutional” violation, further describing the proposed legislation as “an imminent danger from a greedy person, who is looking for ways to extract money from people and who is the Minister of Finance.”

On May 17, 2018, Cajubi's director and legal advisor, Adelio Dolores Aquino, presented Cajubi's position against the creation of a Superintendency on the TV Unicanal's program Sin Vueltas.

As President, Peña continued to advocate for the creation of the Superintendency of Retirement and Pensions, arguing that it was necessary to prevent problems like the Cajubi case. “At some point, we will probably also have to pay for the embezzlement of the Itaipu Retirement Fund (Cajubi), which is another case, and that's because there isn't a public entity that is constitutionally obligated to do so,” he stated.

On December 14, 2023, Peña enacted Law 7253/23, creating the Superintendency of Retirements and Pensions in Paraguay.

Peña joined the conservative Colorado Party on 29 October 2016, having previously been a member of the Authentic Radical Liberal Party (PLRA) for 20 years since joining at the age of 17. Peña's membership in the Colorado Party caused controversy, with reports that he only joined the party after Horacio Cartes announced his intention to dismiss members of his cabinet who were not party members. Peña released a statement stating he had joined the party due to its focus on developing Paraguay, and claimed to be the descendent of one of the party's founders, Jaime Peña. Following this, an electoral court annulled Peña's membership to the PLRA.

2018 presidential election

In 2017, Peña ran for the Colorado Party's presidential candidacy in the 2018 general election, ultimately losing out to Mario Abdo Benítez, with Abdo Benítez winning 564,811 votes (50.93%) to Peña's 480,114 (43.29%).

Following his defeat in the Colorado Party's internal elections in 2017, Peña was elected to the board of Banco Amambay in March 2018. The bank was part of the Cartes Group, which was owned by former President of Paraguay Horacio Cartes, for whom Peña had served as minister of finance.

Presidency (2023–present)

Overview

In 2022, Peña ran successfully to stand as the Colorado Party's presidential candidate; he was widely seen as the candidate most closely aligned to former president Horacio Cartes, while his opponent, Arnoldo Wiens, was aligned with Abdo Benítez. Critics of Peña have said that if elected president, Horacio Cartes would be a grey eminence and that Peña would merely act as a mouthpiece for Cartes, who is sanctioned by the U.S. as "significantly corrupt". Colorado Party politician Blanca Ovelar said Peña would end up acting as a "secretary" to Cartes if he was elected. Cartes and his supporters in Congress had previously attempted to pass a constitutional amendment to allow Cartes to run for re-election, sparking riots in the country.

Peña was elected President of Paraguay, after winning 43.9% of the vote in the 2023 general election in April, defeating his closest rival Efraín Alegre by a difference of 15 percentage points. He was congratulated by outgoing president Mario Abdo Benítez, and presidents Luiz Inácio Lula da Silva of Brazil and Alberto Fernández of Argentina. Peña called for unity to address the economic challenges the country is currently facing. Peña was inaugurated on 15 August 2023. At 44 years old, he became Paraguay's youngest president since the restoration of democracy in 1989, surpassing Abdo Benítez, who was 46 when he assumed the role in 2018.

On 28 September 2025, protests began in Paraguay against Peña's government. Commonly described by the media as part of the Gen Z protests, they are the first mass-scale protests in the country since 2021, with the protests being inspired by the 2025 Peruvian protests.

Formation of the government

The government of Santiago Peña began on 15 August 2023 following his election as President of Paraguay. He was sworn in as president at the age of 44, becoming the youngest president of Paraguay since the restoration of democracy in 1989, surpassing Mario Abdo Benítez, who was 46 years old at the time of his inauguration. In the first days of his term, administrative reforms aimed at the reorganization of the executive branch and the centralization of state functions were promoted. One of the main changes was the creation of the Ministry of Economy and Finance, enacted on 23 August 2023. This new ministry absorbed the functions of the defunct Ministry of Finance, the Technical Secretariat for Economic and Social Development Planning (STP), and the Secretariat of the Civil Service (SFP). Carlos Fernández Valdovinos was appointed as the first minister of this institution. Likewise, the National Directorate of Tax Revenue (DNIT) was established through the merger of the Undersecretariat of State for Taxation (SET) and the National Customs Directorate (DNA).

As for the binational entities and other key institutions, Justo Zacarías Irún was appointed acting general director of Itaipu Binacional, while Luis Federico Benítez Cuevas assumed office as acting director of the Yacyretá Binational Entity (EBY). At the National Development Bank (BNF), the presidency was assigned to Manuel Ochipinti. For her part, Liliana Alcaraz was appointed minister of the Secretariat for the Prevention of Money or Asset Laundering (Seprelad).

Peña has stated his intention for his cabinet to be composed entirely or mostly of members of the Colorado Party. The president, vice president, and the other members of the cabinet took office on 15 August 2023.

Domestic policy

Peña has expressed his preference for a "small state", focused on providing security, public health, and education, leaving the rest to the private sector.

In February 2022, before assuming the presidency, Peña emphasized the need to turn government plans into state policies, especially in education and health. He proposed beginning a process of educational transformation in Paraguay, focusing on improving human capital as an engine of progress.

Carlos Giménez, Paraguay's minister of agriculture and livestock, stated in late February 2024 his opposition to the admission of people with "homosexual tendencies" to agricultural schools. He later apologized for "the interpretation of his statements". Santiago Peña regretted the remarks but kept him in office, without imposing sanctions.

In April 2024, Peña enacted the "Zero Hunger in Schools" law, passed by the Congress, a program that seeks to guarantee food for students in the country's public educational institutions. According to the newspaper ABC Color, the program excluded hundreds of children from special schools and inclusion support centers, leaving them without food. The Ministry of Education and Sciences (MEC) acknowledged the situation and proposed reviewing and correcting the scope of the program.

During the start of the school year in February 2025, Peña acknowledged deficiencies in school infrastructure, committing himself to improving the physical conditions of educational institutions to facilitate an adequate learning environment. He announced the construction of seventeen "large schools" in different regions of the country, intended to offer high-quality education and modern equipment, seeking to reduce school dropout and improve learning indicators. Peña expressed enthusiasm for this project and acknowledged that there were still challenges to overcome in the national education system.

In March 2025, the president highlighted the historic delivery of 430,000 school furniture items as part of the strengthening of the education system and the improvement of learning conditions. He announced the expansion of places for government scholarships, benefiting more students who passed the tests and met the established requirements.

Foreign policy

It is estimated that, by 15 April 2024, Peña had spent 50 of his 240 days of presidency abroad (or 20% of his presidency).

Peña and Javier Milei met on 9 December 2023 and agreed to "deepen" Mercosur. Peña stated that he had placed himself "at Milei's disposal" and attended his presidential inauguration in December 2023.

Paraguay's vice minister of commerce, Óscar Stark, stated on 13 December 2023 that the economic policy of the new Argentine government, which aspires to eliminate multiple exchange rates and move toward exchange-rate unification in the short term, works against the smuggler's business and is therefore favorable for Paraguay, and that "it is going to be much easier to talk than with the previous government".

Peña suspended negotiations with Brazil on the revision of Annex C of the Itaipu Treaty, alleging a supposed case of digital espionage by Brazilian authorities between 2022 and 2023. Critical sectors pointed out that the suspension favored Brazil by keeping frozen a key process to correct what they consider a historic disadvantage for Paraguay in the distribution of the benefits of hydroelectricity generated by Itaipu Binacional.

In security matters, in June 2024 the two countries agreed on a joint investment intended to improve connectivity in rural areas through satellite internet and to strengthen national cybersecurity. The United States committed USD 3 million for connectivity and US$3.1 million for cybersecurity in the Paraguayan armed forces. Likewise, in November 2024, the Ministry of Information and Communication Technologies (MITIC) and the United States Southern Command carried out a joint review of the Paraguayan government's computer systems, detecting and mitigating vulnerabilities.

In December 2023, President Peña received General Laura Richardson, commander of United States Southern Command, with whom he discussed cooperation projects in security and the fight against organized crime.

In the commercial sphere, in September 2023 the T-FAST program was renewed until 2025 through a memorandum of understanding, with the aim of reducing non-tariff barriers to agricultural trade and streamlining export processes. Likewise, in May 2023 a cooperation agreement between the United States Department of Agriculture and Paraguay's National Customs Directorate was extended for two years in order to facilitate agricultural trade. The agreement estimated a reduction of 14% in costs and 30% in product release times.

Political views

By the time of the 2023 election, Peña was considered a conservative politician who opposes the legalization of abortion and same-sex marriage. In May 2017, however, he had stated that he was in favor of same-sex marriage, while saying in regards of abortion that he was open for it to "be discussed in a sincere environment and without prejudice". He reversed position shortly afterwards following criticism from conservative sectors. During his 2023 campaign, he promised to create 500,000 jobs. He also ruled out raising taxes.

On foreign policy, Peña pledged to maintain Paraguay's diplomatic relations with the Republic of China (Taiwan). In May 2023, Peña announced that he intended to move the Paraguayan embassy in Israel from Tel Aviv to Jerusalem after being sworn in as president; a move that was previously made by Horacio Cartes in 2018, but reversed by Mario Abdo Benítez later that year. Peña eventually attended the inauguration of said embassy in December 2024. Peña and his government expressed vocal support for Israel during the Gaza war and the Twelve-Day War, with Paraguay siding with Israel during South Africa's genocide case against Israel.

As president, Paraguay restored diplomatic relations with Venezuela in November 2023; relations were strained since 2019. Relations between the two nations were broken again in February 2025, however, after Peña recognized Edmundo González as the winner of the 2024 Venezuelan presidential election. On the 2026 United States intervention in Venezuela, Peña stated that "it can only bring good news".

In February 2023, Peña said in an interview with Folha de S.Paulo that the military dictatorship of Alfredo Stroessner had resulted in "more than 50 years of stability in Paraguay". He further asserted that Stroessner, who came to power as a result of a coup d'état, had come to a power as a result of a "political agreement". Peña's comments were criticised by opposition politicians and activists, and he was accused of trying to attract conservative and ultraconservative voters within the Colorado Party.

Controversies

On 7 April 2025, Arnoldo Wiens (ANR) questioned Santiago Peña's administration, accusing him of failing to fulfill his campaign promises and of allowing a group close to the government to rapidly accumulate large fortunes. According to Wiens, the citizenry, especially in the interior of the country, has not experienced substantial improvements, and he called for greater transparency and commitment to the principles defended during the campaign.

A few days later, former deputy Édgar Acosta (PLRA) expanded the criticism, accusing the president of prioritizing his own business interests and those of his circle over the general welfare. In statements to ABC Cardinal, Acosta said that Peña had promoted changes to the Conflict of Interest Law in order to benefit his private ties, and that his name and those of his associates appear linked to various public tenders. In Acosta's view, this conduct confirmed the warnings made after Peña's election, which pointed to a government oriented toward benefiting a specific economic sector, in line with a broader strategy by cartismo to preserve its power through control of key resources.

On 21 April, the criticism intensified from the religious sphere. Bishop emeritus Mario Melanio Medina warned about the penetration of drug trafficking into state institutions and alleged that the judiciary was subordinated to illicit economic power. He accused the Colorado Party of acting in favor of private interests, contributing to social inequality and the deterioration of democratic institutions. Medina expressed concern about the lack of legal certainty, the weakness of the political opposition, and skepticism regarding the negotiations over Annex C of the Itaipu Treaty, stating that any eventual benefits would primarily favor Brazil.

Santiago Peña was criticized for his decision not to attend the funeral of Pope Francis. Peña's absence was regarded as a lack of reciprocity toward the affection shown by Francis for Paraguay, a deeply Catholic nation. Instead, Peña opted for an eleven-day trip to the United States to receive a private award.

Peña has also attracted criticism for his international trips, which have been perceived as excessive. By mid-May 2025, Peña was estimated to have made more than 40 international trips as head of state, at a cost of ₲4.000 billion (or US$585,000), and to have spent a total of 126 days outside Paraguayan territory. His supporters have defended these measures, arguing that they attract more private investment to Paraguay.

Honours and awards

Brazil:

São Paulo:

Grand Cross of the Order of Ipiranga (26 July 2023)

Taiwan:

Order of Brilliant Jade (8 May 2026)

Awards

In April 2025, Peña was awarded the AJC Gesher Award from the American Jewish Committee in recognition of his support of Israel. In May 2026, he received an honorary degree from the National Taiwan University of Science and Technology.