The ‘Participation’ reform, a bill for the decentralisation of fiscal spending that guarantees higher transfers to regional governments and municipalities, is making its way through Congress and generating significant noise. The final form of the bill is not yet fully known. The initial proposal has been watered down, with the aim of limiting its fiscal impact. Overall, the proposal is seen as negative for Colombian assets and the COP, but the degree of risk premia to be added from here depends on the final bill covenants and implementation. The COP remains vulnerable to these and other local and external developments.