March 15th, 2024


1. OAS to monitor elections, Tribunal orders review of polls

The National Electoral Institute (INE) announced that the Organization of American States (OAS) will send to Mexico the “largest” delegation in the history of the country to observe the elections of next June 2, in response to the invitation made to them. The president of the Institute pointed out that a mission from the Inter-American Union of Electoral Organizations (Uniore) will also visit Mexico.

Both organizations are expected to make observations not only on the organization of the election, but also on sensitive issues such as political-electoral and gender violence, as well as on the divisive use of polls. On this issue, the Electoral Tribunal ordered INE to investigate polls published by three media where Claudia Sheinbaum was positioned as the leader, after they may not comply with the corresponding law, which contributes to the debate on the need to better regulate the numerous polls that are published.

Forbes: OEA enviará a México a su comitiva ‘más grande’ para observar las elecciones del 2 de junio

Proceso: TEPJF ordena al INE investigar a Gurú Político por difusión de encuestas favorables a Sheinbaum

2. Court validates smoking areas

The Second Chamber of the Supreme Court of Justice of Mexico (SCJN) denied an injunction to the casino company Play City, which challenged the General Law for the Control of Tobacco, for having smoking areas in its closed rooms. The Court ruled that the regulation being challenged respects the principles of freedom of commerce, equality, non-discrimination and progressivity, so that in the resolution it was determined that, in places with access to the public, the exclusive areas for smokers must be located only outdoors.

The resolution provides greater certainty regarding the obligations of commercial establishments in the right to respect for health and coexistence. With this measure, regardless of the industry, purpose or activity of the businesses, they must guarantee spaces for coexistence between smokers and non-smokers, but outdoors.

Excélsior: Corte valida espacios para fumadores en establecimientos públicos

3. Supreme Court upholds cap on pension commissions

After retirement fund administrators, known as Afores, challenged the changes to the Retirement Savings System Law, the second chamber of the Supreme Court ruled that the reform is constitutional. The Afores administrators had objected to the creation of a cap on the fees they charge, which is now calculated based on the average of the fees charged in the pension systems of the United States, Chile and Colombia.

With this measure, the cap on fees remains in force, which managed to reduce the percentage charged by the fund managers. This percentage stood at 0.81% before the reform, with a historical rate of 2.0%. At present, nine of the ten institutions registered in the country will

El Economista: Suprema Corte avala tope a comisiones de las Afores

4. Moody’s upgrades outlook on Mexico’s banking system

The rating agency Moody’s changed its outlook for the Mexican banking system from “stable” to “positive,” after considering that banking institutions are taking advantage of favorable operating conditions to increase business volume and profits, while maintaining a diversified portfolio and a broad diversification of the industry. The non-performing loan portfolio, which represents 2.2% of the gross portfolio, remains low and fairly stable.

The agency noted that banks’ interest in expanding their retail lending will also be favored by solid formal employment, as well as wage growth and increased remittances, in addition to the fact that private consumption remains solid. It added that their investment prospects associated with nearshoring are also favorable, which will likely support long-term growth in commercial lending.

El Economista: Moody’s cambia a Positiva desde Estable perspectiva del sistema bancario de México

5. Public spending in Mexico increased 7 points

According to the Organization for Economic Co-operation and Development (OECD), Mexico’s public spending stood out among the 10 highest of the organization’s members, at 32% of GDP, which contrasts with 25% in 2019 at the beginning of President Andrés Manuel López Obrador’s administration and a maximum of 34% in 2022. This means that the Mexican government increased its spending by the equivalent of seven points of GDP, while its peers in the region barely increased it by eight tenths of a point.

The Organization also pointed out that Mexico is among the three countries that pay the highest net interest on public debt, paying 5.0% in relation to GDP, above the average of 3.9% in the region. It also reported that Mexico’s fiscal deficit is 4.3% of GDP, exceeding the Latin American average for the first time in eight years.

El Economista: Gasto público de México aumentó 7 puntos del PIB entre el 2019 y el 2022

Milenio: Déficit fiscal en México supera promedio de América Latina: OCDE