October 9, 2020
1. Lower house approves elimination of trusts
After a difficult week in Congress regarding the disappearance of federal trusts, the Chamber of Deputies approved the extinction of 109 trusts, with which the federal government would obtain additional MXN $68.4 billion (USD $3.23 billion).
During the vote, only 12 reserves were accepted, and the Natural Disaster Fund, Science and Technology Fund and MyPimes, among others, will not disappear 30 days after the law comes into effect, but will continue to operate through June 30th, 2021. The opinion will be sent for debate and possible approval to the Senate.
2. Infrastructure plan announced to support economic revival
President Andrés Manuel López Obrador and the private sector announced an economic reactivation plan, which will support 39 infrastructure projects in the energy, communications, environment, and water management sectors, with an accumulated investment of MXN $297.34 billion (USD $14.04 billion).
Carlos Salazar Lomelín, President of the Business Coordinating Council, indicated that these projects hope to generate a positive impact on the country’s economy in order to confront the crisis caused by the pandemic, in addition to sending a message of unity and stability with the government.
3. MORENA seeks to bring together mid-term elections and popular consultation
Senator Ricardo Monreal, Senate Coordinator of the majority MORENA party, made public an initiative seeking the popular vote to prosecute former presidents in the framework of the midterm elections of 2021, in order to save resources.
Legislators from the PAN, PRI and Citizen’s Movement pointed out that if they want to bring former presidents to trial, they must present the corresponding evidence and complaints, in addition to considering that carrying out both exercises on the same day can influence the decision of the voters.
4. Ministry of Finance rejects tax increase
Gabriel Yorio, Undersecretary of Finance, indicated that the authorization to publish the Consultation Statement of Article IV of the International Monetary Fund (IMF) is an exercise in transparency that promotes debate and exchange of experiences among the international community. However, he rejected the suggestion that the IMF increase taxes on items such as sales tax (VAT) or income tax.
On the other hand, Agustín Carstens, Director General of the Bank for International Settlements (BIS), explained that due to the duration and continuation of the pandemic, governments will not be able to avoid an increase in bankruptcy claims even though they have maintained uninterrupted support.
5. INE ready for the 2021 elections
Lorenzo Córdova, President of the National Electoral Institute (INE), said they are ready to organize the 2021 elections, which will be the largest and most complex yet. Likewise, he indicated that, although there are still aspects to be defined, the INE will fulfill its mandate and carry out the first popular consultation, to bring former presidents to trial, in the case that Congress approves the measure.
After several challenges, the Electoral Tribunal approved the new project of the President Magistrate, Felipe Fuentes, with which the process for the renewal of the leadership of MORENA can continue according to the current conditions and guidelines. The magistrates agreed that the complaints received were invalid and only represented a delay in the process.