August 30, 2019
1. Federal Electricity Commission reaches agreement with energy companies over contract disputes of gas pipelines
The Mexican government reached an agreement with energy companies following a regarding pipeline contracts and gas distribution rights with the goal of reducing fees for gas transport services.
During his press conference, President Andrés Manuel López Obrador confirmed that government and energy companies had reached an agreement to reduce fees from to USD $4.5 billion from USD $12 billion for a fixed-term. The President thanked business magnate and multi-billionaire Carlos Slim for facilitating the negotiations.
2. Anti-corruption NGO denounces opacity in social program Youth Building the Future
Youth Building the Future is considered the flagship social program of the President López Obrador Administration. The social program helps young people enter the labor market in order to boost long-term economic growth.
Anti-corruption NGO “Mexicans against Corruption and Impunity” carried out a study of the program, detecting many irregularities in terms of participant registration, lack of payments, firing of employees, recruitment of trainees, nepotism and absence of critical information in work centers, making it impossible to verify if they even exist. The NGO stated that transparency is especially important for this program’s evaluation and improvement.
3. Violence and crime rate increase in Veracruz
An attack on a pub in Coatzacoalcos, Veracruz was reported during the week; perpetrated by an armed group, resulting in 28 casualties. The incident received national coverage and led to the deployment of 600 security details from the National Guard and State Police in the municipality.
The Attorney General’s Office has begun to investigate this case linking it to organized crime. Violence and crime rates in the state have increased sharply, registering an uptick in delinquency cases and general cases of violence.
4. PRD leaders resign as political party launches Futuro 21 platform
Alejandra Barrales, former Candidate for the Head of Mexico City’s Government, and Juan Zepeda, a Senator on leave, published a letter announcing their resignation from Partido de la Revolución Democrática (PRD). The now former leaders of the PRD are especially influential in Mexico City and State of Mexico, which could lead them to be considered to reinforce other parties in anticipation of the 2021 elections.
This scenario unfurled after the PRD presented its Futuro 21 initiative, aiming to offer a platform to its members and politicians from other parties looking forward to 2021 elections. Political parties are reorganizing their structures after the overwhelming triumph of Morena in the past elections.
5. Mexico’s Central Bank cuts economic growth forecast, inflation to reach the predicted goal
Banxico, Mexico’s Central Bank, decided to cut the economic growth forecast for the country to 0.2% – 0.7% from 0.8% – 1.8% Banxico chief Alejandro Díaz explained the main reasons for the adjustment included a weaker economy than previously expected and a reduction in U.S. industrial production and plateauing oil production in Mexico.
The cut took place after Banxico’s decision to cut the interbank reference rate to 8%.