21 de enero de 2021
ÚLTIMAS NOTICIAS:
English - News

Mexico begins 2021 with legislative, economic battles with businessmen

 A woman walks in front of the Bank of Mexico headquarters in Mexico City on Jan. 10, 2021. 
EFE-EPA/Jose Pazos

A woman walks in front of the Bank of Mexico headquarters in Mexico City on Jan. 10, 2021. EFE-EPA/Jose Pazos

By Pedro Pablo Cortes

Mexico City, Jan 10 (efe-epa).- The Mexican government begins this year with new and controversial legislative battles with businessmen regarding employment, renewable energy, autonomous entities and the Bank of Mexico (Banxico), all of which could disrupt its plan for a quick economic recovery.

"They are really very important threats for Mexico's good economic progress," Prof. Luis Guimes, with the Mexicali campus of the CETYS Graduate School of Business, told EFE on Sunday.

Just this past week, the first of the year, President Andres Manuel Lopez Obrador revived old initiatives and new policies to overturn the "reforms of the neoliberal period."

The president defended the announcement of the Federal Electricity Commission (CFE) to take private renewable energy generators out of operation, blaming them for the massive blackout that affected 10.3 million people in December.

He also sparked indignation when he announced that he will seek to eliminate autonomous entities like the Federal Telecommunications Institute (IFT), the Federal Economic Competition Commission (Cofece) and the Energy Regulatory Commission (CRE).

"They don't work, they don't benefit the public, but it does cost a lot to maintain them," Lopez Obrador said at his Friday morning press conference.

The Business Coordinator Council (CCE), Mexico's top private sector organization, expressed its "concern" over the president's remarks warning that the economy "is starting out weak in 2021."

"In such difficult times as these for our country, when we all must be seeking alternatives to promote economic activity, it scarcely pays to attack productive sectors," said the organization.

To these measures can be added the president's initiative to eliminate work subcontracting, known as "outsourcing," and the reform that will force Banxico to buy dollars that the private bank cannot repatriate, a situation that puts the central bank at risk of receiving illicit cash.

The president and his party, the National Regeneration Movement, or Morena, warned that they will back these measures despite the fact that they had already negotiated with the private sector on the matter.

"The federal government, since it (came into office) has been a continuous attack on private initiative, above all on business organizations," Guemez said.

The uncertainty remains as Mexico deals with the Covid-19 pandemic, which has infected more than 1.52 million Mexicans and killed 133,000 of them.

The health crisis led to a 9.6 percent contraction in the country's GDP during the first nine months of 2020.

The president and the Treasury and Public Credit Secretariat (SHCP) estimate that the Mexican economy contracted by 8 percent in 2020 but that it will have a 4.6 percent rebound in 2021.

However, Guemez doubts the government's optimism.

"To get back to the GDP level we had in January 2019, four years of any government are not enough to attain the same size of the economy," he said.

The professor also warned that the reforms could endanger the US-Mexico-Canada Agreement, the government's main hope for rejuvenating the economy.

In particular, the initiative to eliminate outsourcing puts the five million workers who depend on it for their livelihoods, the director of Tallentia MX, Elias Micha, told EFE.

"We're seeing how dangerous it is to stigmatize subcontracting and it's even more dangerous to do it in a crisis year," the business leader said.

After the loss of a net of 700,000 formal jobs in 2020, the reform will prevent the government from meeting its goal of recovering all the jobs registered with the Mexican Social Security Institute by March, Micha said.

He noted that Mexico never has created one million formal jobs in a single year, and thus he questioned the president's promise.

"I don't see how, with the pandemic everything will get done. With an out of control pandemic, frankly it's very difficult to think there's going to be a jobs recovery in one quarter. We're thinking that if it happens it will take years," he said.

Comentarios

Histórico de noticias
Senate confirms Avril Haines as Biden's intelligence director

Washington, Jan 20 (efe-epa).- The United States Senate on Wednesday overwhelmingly confirmed Avril Haines as the country's new director of national...

Biden signs series of executive orders, many reversing Trump's directives

Washington, Jan 20 (efe-epa).- Newly-inaugurated President Joe Biden on Wednesday afternoon, after inaugural formalities were concluded and he had paid a...

"Democracy has prevailed," Biden proclaims in inaugural address

(Updates with more speech remarks, additional info)

Mexican business group: Renew ties with US after Biden's inauguration

(Update: changes headline, re-ledes with statement from business group)

Trump arrives in W. Palm Beach shortly before Biden is sworn in as president

Miami, Jan 20 (efe-epa).- Donald Trump arrived in Palm Beach, Florida, on Wednesday while still president, shortly before the inauguration of Joe Biden in...

Biden arrives in Washington to take the reins of a country in crisis

(Update 1: Adds details of inauguration ceremony, changes head, lede)

McConnell blames Trump for violent assault by supporters on Congress

Washington, Jan 19 (efe-epa).- The outgoing Senate majority leader, Mitch McConnell, on Tuesday accused President Donald Trump of provoking the violent...

Argentina registers 50 aftershocks, no deaths in 6.4-magnitude quake

Buenos Aires, Jan 19 (efe-epa).- Argentine President Alberto Fernandez traveled on Tuesday to San Juan province, on the western border with Chile, to tour...

Harris resigns as senator, Biden helps NGO 2 days before inauguration

Washington, Jan 18 (efe-epa).- Vice President-elect Kamala Harris on Monday resigned her seat as a US senator from California, while President-elect Joe...

Honduran private sector: Join forces to rebuild country

Tegucigalpa, Jan 18 (efe-epa).- The Honduran private sector is in a "state of calamity" due to the coronavirus pandemic, which has resulted in 134,111...

Guatemalan forces disperse migrant caravan on highway

Guatemala City, Jan 18 (efe-epa).- Guatemalan security forces on Monday dispersed a migrant caravan made up of more than 6,000 Hondurans looking to head...

Eccentric music producer Phil Spector dead of Covid complications

New York, Jan 17 (efe-epa).- Phil Spector, one of the most highly acclaimed modern music producers, the creator of the so-called "Wall of Sound," died on...

Argentina promulgates law making abortions easier to get

By Javier Castro Bugarin

Last year ties 2016 as hottest year in recorded history

Miami, Jan 14 (efe-epa).- Last year tied 2016 as the hottest year since records have been kept, according to a report published Thursday by NASA that...

Organized crime in Mexico selling fake Covid-19 vaccines

By Cristina Sanchez Reyes

Miami Beach holding festival showcasing tropical "Art Deco" legacy

By Ana Mengotti

Trump losing business support, putting future of his brand in danger

By Mario Villar

Trump asks supporters to avoid violence before inauguration

(Updates with Trump's 2nd video statement)

US Justice Dept. to charge several hundred in mob that invaded Congress

Washington, Jan 12 (efe-epa).- The US Department of Justice on Tuesday announced that it already has formally charged more than 70 people with assorted...

Brazil: China vaccine's 50.38 pct. effectiveness can halt pandemic

Sao Paulo, Jan 12 (efe-epa).- The anti-Covid vaccine developed by China's Sinovac pharmaceutical laboratory and which will be used and produced in Brazil is...

Congress calls for Trump impeachment despite Pence rejection

Update 1: Reworks lede, changes headline, adds info on impeachment attempt

US puts Cuba back on list of terrorism sponsors

Washington, Jan 11 (efe-epa).- The Donald Trump administration on Monday put Cuba back on the US list of sponsors of terrorism, from which that country had...

Twitter suspends more than 70,000 accounts sharing QAnon content

Washington, Jan 12 (efe-epa).- Twitter announced that it has suspended more than 70,000 accounts dedicated to sharing QAnon content following the attack on...

Buenos Aires: Argentine equine serum effective, safe for Covid-19 cases

Buenos Aires, Jan 11 (efe-epa).- The hyperimmune serum produced from horses in Argentina completed the last phase of its clinical studies and "demonstrated...