Mexico president signals new cabinet changes after finance minister move


Source: Reuters

Mexican President Andres Manuel Lopez Obrador said on Thursday he will be making adjustments in his administration following Sunday’s elections in which his allies lost lower house seats.

Lopez Obrador did not give additional details of what other changes he was contemplating following the announcement on Wednesday that he would tap his finance minister to run the central bank and a close ally to lead the finance ministry.


Cordero warns Congress against lowering IVA (in Spanish)

La Crónica de Hoy, 9/15/2010

Mexico’s Finance Minister Ernesto Cordero Arroyo, admitted yesterday that the 2011 spending budget proposal is “not what Mexico deserves,” but warned that lowering revenue (by lowering the IVA) and raising the fiscal deficit at the same time, as the opposition has proposed, would put the country at risk of falling into an indebtedness that could push it into another crisis, such as those of 1976, 1982 and 1986.  Addressing the Chamber of Deputies, Cordero explained and defended the 2011 economic package.

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Read about the opposition’s response…

Read El Universal’s editorial, “Cordero y el lobo,” which argues that “the decision to pay more or less taxes will not be based on statistics; it will be the result of the balancing act between ‘el catastrofismo panista y el revanchismo priísta.’ “

Mexico’s economy: Reasons to be cheerful?

Duncan Wood, CSIS, 1/21/10

On Tuesday January 20th, Mexico’s Finance minister Ernesto Cordero gave a speech at the Mexico Institute of the Woodrow Wilson Center for International Scholars and outlined the factors that give him confidence for his country’s economy and government finances. Focusing on the fundamentals of Mexico’s recovery from the brutal recession of 2009, Cordero stressed that federal government support to the economy during last year in fact saved jobs, kept the construction industry going, and prevented as many as three million people from slipping into poverty. Now with recovering exports, a depreciated peso, rising consumer confidence, strong banks, stabilizing oil production and continued infrastructure  spending, Cordero claimed that Mexico is well-placed to improve its competitiveness and productivity in 2010-2011. Furthermore, the finance minister argued that a series of proposed reforms this year (political, sectoral and competition policy-based) will provide an additional boost to the economy.

The overall tone of the minister’s speech was solidly optimistic and indeed there are reasons to believe that the Mexican economy is set for renewed growth. But the fundamentals of the Mexican economy are less encouraging.

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