Skip to comments.Peņa Nieto expands power as reform beckons
Posted on 03/08/2013 10:50:52 PM PST by JerseyanExile
Mexicos ruling party has substantially increased the presidents power and cleared the way for an ambitious agenda of economic reforms.
Institutional Revolutionary party (PRI) members convened for their national assembly agreed on Sunday to open the possibility of creating a bigger role for private investment in the protected energy sector, as well as changing the partys position on extending value added tax to certain foods and medicine.
The changes, which brush away internal rules that have barred PRI members of congress from backing such measures, are a necessary first step in Enrique Peña Nietos plans to pass energy and tax reforms this year. Mr Peña Nieto, a 46-year-old former state governor, is pinning his presidency on these reforms to turn Latin Americas second-largest economy into one of the worlds most dynamic emerging markets with annual average growth rates of up to 6 per cent up from between 3 and 4 per cent now.
The idea is to blow open Mexicos resource-rich but underdeveloped oil and gas sector in a way that could attract tens of billions of dollars in private investment in the coming years. At the same time, the government hopes that tax reform, including extending VAT to processed foods and medicine, could deliver the necessary funds to pay for infrastructure and social development programmes.
In addition to the changes to the PRIs internal statutes on VAT and energy, PRI delegates appointed Mr Peña Nieto head of the partys permanent political commission. The move ramps up Mr Peña Nietos clout within the party, placing him at the centre of the PRIs most important decision-making body.
(Excerpt) Read more at ft.com ...