CopyMexico City Surprise: Calderon Takes ControlIQA

Just a few days ago a still controversial Felipe Calderon-only recently sworn in as Mexico's new President-took the world by surprise. Mexico City was marked by agreement rather than controversy, as the Mexican Congress showed unexpected approval for Calderon's 2007 budget.

Calderon's party-i.e., the PAN, or National Action Party-controls only some 40% of Congress (leaving it short of the majority required for constitutional reforms). However, it seems the parties represented in Congress are willing to put their differences aside when it really counts. The majority of the budget was approved, and after only a few days of debate.

Though a proposed soft-drink tax was nixed, increases in oil prices were deemed appropriate means for furthering highway, education and rural projects. In addition, social and pension programs pleased the hitherto cantankerous PRD (i.e., the Democratic Revolution Party, led by self-proclaimed "alternative Mexican President" Andres Manuel Lopez Obrador).

Calderon is bullish on fiscal, energy and labor reforms (much like his predecessor, former President Vicente Fox). The outdated Mexican tax system, plagued by low collection rates, and the ever-large issue of unemployment (and stemming the tide of emigration), are also on the agenda for the near future. Will Calderon succeed again? Major players have agreed to sit down and discuss the issues, so the answer to that question may well be "yes."

Best Regards,

Suzan Haskins
Editor / www.MexicoInsider.com
E-mail: Mexico@InternationalLiving.com.

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