InfoAnda - Analysis: Mexico 2012 frontrunner stirs reform optimism |

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Afghanistan at a glance | 19 November 2009
Major quake hits Indonesia, tsunami warning lifted | 12 February 2009
Oracle software sales surge, shares rise | | 17 December 2010

Suicide bombers attack Afghan police compound | 7 June 2010

Forum Views () Forum Replies ()

Read more with google mobile : Analysis: Mexico 2012 frontrunner stirs reform optimism |

Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Davos 2012 Technology Media Small Business Legal Deals Earnings Summits Business Video Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Politics Politics Home Election 2012 Issues 2012 Candidates 2012 Tales from the Trail Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Bernd Debusmann Gregg Easterbrook Nader Mousavizadeh James Saft Lucy P. Marcus David Cay Johnston Bethany McLean Edward Hadas Hugo Dixon Ian Bremmer Mohamed El-Erian Lawrence Summers Susan Glasser The Great Debate Steven Brill Breakingviews Equities Credit Private Equity M&A Macro & Markets Politics Money Money Home Global Investing MuniLand Unstructured Finance Linda Stern Mark Miller John Wasik Analyst Research Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Life & Culture Health Sports Arts Faithworld Business Traveler Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Full Focus Video Article Comments (0) Full Focus Editor's choice Our top photos from the last 24 hours. Full Article Best photos of the year Follow Reuters Facebook Twitter RSS YouTube Read In ad for newsletter, Ron Paul forecast "race war" 8:56am EST Gaunt George Michael says "fortunate to be here" | 2:13pm EST Four ex-players sue NFL alleging brain damage 22 Dec 2011 Analysis: What's the plan if North Korea collapses? 3:24pm EST VW agrees to kick the "Crackberry" habit 11:09am EST Discussed 252 In ad for newsletter, Ron Paul forecast ”race war” 129 Slumping Gingrich promises sharper counter-punch 114 North Korea state TV says Kim Jong il has died Watched Earthquake strikes New Zealand Thu, Dec 22 2011 Reuters Today: Toyota sees record sales in 2012 Thu, Dec 22 2011 Huge fire in San Francisco Thu, Dec 22 2011 Analysis: Mexico 2012 frontrunner stirs reform optimism Tweet Share this Email Print Related News Mexican election favorite dents image with gaffes Tue, Dec 20 2011 Strong earthquake rattles Mexico, killing two Sun, Dec 11 2011 Anlaysis: Mexican ruling party smears rivals with drug gangs Mon, Nov 28 2011 Mexico's early frontrunner formalizes presidential bid Sun, Nov 27 2011 At least 26 bodies dumped in Guadalajara Thu, Nov 24 2011 Analysis & Opinion The year in review for the American middle class Washington Extra – A man and his dog Related Topics World » Mexico » Enrique Pena Nieto, former Mexico state governor and a presidential candidate for the Institutional Revolutionary Party (PRI), delivers a speech to his supporters on stage after filing for candidacy for his party in Mexico City November 27, 2011. Credit: Reuters/Carlos Jasso By Michael O'Boyle MEXICO CITY | Fri Dec 23, 2011 3:26pm EST MEXICO CITY (Reuters) - Investors frustrated with years of gridlock on economic reforms in Mexico now believe the best chance for progress lies with the party that has done most to prevent change over the last decade. Enrique Pena Nieto of the opposition Institutional Revolutionary Party, or PRI, has a commanding poll ahead of the presidential election in July and, if its support holds, the PRI could win the first ruling party majority in Congress in 15 years. Pena Nieto, 45, has pledged an ambitious reform agenda that backs some of the very policies his party has blocked since 2000, when a victory by the conservative National Action Party, or PAN, ended seven decades of PRI rule. The reforms include boosting tax revenues and allowing more private investment in the state-run oil industry. The failure of Mexico's political leaders to reach a deal on those issues is blamed for holding back the economy. Growth has averaged about 2.2 percent during the past eight years - barely half the rate for Latin America and the Caribbean as a whole. Investors say failure to liberalize the labor market, improve a paltry tax take and attract more foreign investment could condemn Mexico to years of weak growth and threaten its credit rating. They hope that PRI leaders who blocked reforms over the past decade will push them through if they win back power. "The PRI knows good and well that this is going to blow up in their faces," said Alonso Madero, who manages $4 billion in fixed income assets at Actinver in Mexico City. "Eventually it will be in their interest to approve many things they rejected in the past," he added. STRONGER PESO EYED The PRI currently holds just under half the 500 seats in Mexico's lower house. But it only has a quarter of seats in the 128-member Senate due to a poor showing in 2006 elections. A clear victory for Pena Nieto next year could restore to the PRI the congressional majority it lost in 1997. Ever since then, bickering between Mexico's three major parties has scuttled a host of economic and political reforms. Legislative inertia sapped confidence in President Felipe Calderon's PAN, which has been battered by a drugs war that has claimed more than 45,000 lives in the last five years. The PAN could still mount a strong campaign in the presidential election but is very unlikely to win a majority in Congress. Provided it ousts the PAN, the PRI could change its position and back a value-added tax on food as part of a wider overhaul of public finances. "If they want to hold onto the presidency for a couple of terms, it's clear they need to do something different to move the economy in the right direction," said Will Landers, the head of BlackRock's $8.5 billion Latin American equity fund. The risk of a fresh economic slump in the United States, where Mexico sends nearly 80 percent of its exports, makes the need for reforms in Mexico even more pressing. Polls show Pena Nieto with a big lead over his rivals although the gap has narrowed this month as he has stumbled with a series of gaffes. If Pena Nieto does win, J.P. Morgan economist Gabriel Casillas expects Mexico's peso currency to rocket back by about 18 percent next year to 11.80 per dollar, spurred by a wave of inflows into bonds and stocks due to optimism on reforms. Behind Pena Nieto's campaign is Luis Videgaray, a protege of former finance minister Pedro Aspe, who helped lead a reform drive in the 1990s. Videgaray is respected by investors who see him as Pena Nieto's likely pick for finance minister. During Aspe's time, Mexico became a emerging-market darling, negotiated the North American Free Trade Agreement and privatized pension funds. But investors have since turned their attention to faster-growing economies like China and Brazil. WEAK TAX TAKE Mexico's weak tax revenues have been a major worry, and past administrations have chosen to bleed the state-run oil giant Pemex rather than levying new taxes. With nearly a third of the economy off the books and ample corporate loopholes, Mexico has one of the lowest tax takes in Latin America. Excluding oil income, the state collects taxes worth around 11 percent of gross domestic product. Oil revenues fund nearly a third of the federal budget and the country's dependence on finite crude supplies was the main reason credit rating agencies downgraded Mexico in 2009. Pena Nieto devoted a whole chapter of his new book "Mexico - la gran esperanza (the great hope)" to fiscal reform, pledging to simplify taxes and expand the taxpayer base. He has yet to offer details of his plans, but argues that a shake-up could bolster Mexico's economic potential and fund an overhaul of its ailing justice system. "For these transformations to become reality, a bigger public budget is needed," Pena Nieto wrote. Doubts still linger about whether the 45-year-old will be able to carry out his reform plans, with his calls to open up Pemex to private investment in exploration, production and refining likely to face strong opposition from unions. Since Mexico nationalized the oil industry in 1938, public support for the policy has helped shield Pemex and its bloated workforce from allegations of corruption and inefficiency. "Pena Nieto is promising a lot of things he will not be able to deliver when it comes to private investment in Pemex," said Mexico City political analyst Fernando Dworak. (Additional reporting by Miguel Angel Gutierrez; Editing by Dave Graham and Kieran Murray) (michael.oboyle@thomsonreuters.com; Tel: +5255-5282-7153; Reuters Messaging: michael.oboyle.reuters.com@reuters.net)) World Mexico Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Advertise With Us Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

Other News on Saturday, 24 December 2011
Analysis: What's the plan if North Korea collapses? |
Russia test-fires two new nuclear missiles |
UK's Prince Philip in hospital after chest pains |
Day of violence in northern Nigeria kills at least 24 |
Syria's Alawites are secretive, unorthodox sect |
Analysis: Mexico 2012 frontrunner stirs reform optimism |
Thousands sign up for new Russian protest |
RIM now faces legal challenge on BBM trademark |
U.S. shoppers less than merry after online glitches |
Amazon may benefit as digital goods sales jump |
Indian courts challenge Facebook, Google content: report |
Intel's smartphone guru angles for smooth landing |
FBI computer system delayed again after snag |
Etta James on breathing machine in Calif. hospital |
Tyler, The Creator arrested for vandalism |
China film stirs passions anew before Japan PM visit |
Michael Buble brings Christmas to CityVille |
Corrected: Zhang, Bale blossom together on Flowers of War |
UK's Prince Philip, 90, has heart surgery |
Cuba to free 2,900 in sweeping amnesty |
Fuel pipeline blast kills 11 in Colombia |
Yahoo board continues talks on Asian deal: report |
Mel Gibson, wife finalize divorce |
Taylor Swift, T-Bone Burnett on Hunger Games album |
Robert De Niro welcomes baby girl |
Mourning Syrians rally for Assad |
Yemen forces fire to stop marchers demanding Saleh |
Former South Korean first lady to go North to mark Kim's death |
Nigeria sect clashes kill at least 68
Somalia appeals against U.S. wire transfer closure |
French health minister says implant boss must answer |
Gaza's thriving tunnel imports unleash building boom |
Christmas pilgrims pray for peace in Bethlehem |
As Kodak struggles, Eastman Chemical thrives |
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph		BlogMeter 1.01