Mexico's Fiscal Reform: Reshaping the system

Sep 25, 2013

Mexico’s much-anticipated fiscal reform offers something for everyone, including a number of surprises

Announced on September 8, just a few hours after 50,000 protestors marched blocks away against the government’s energy reform plans, the Mexican president Enrique Peña Nieto labeled the package a "social reform".

With the latest proposals, Peña Nieto aims to quell opposition to his reform agenda while keeping the left-wing PRD party on board for the Pact for Mexico, the agreement between Mexico’s three main parties that paves the way for a range of economic reforms.

In a nod to the left — and a historic first for Mexico — the measures will create a social safety net: universal social security for workers in the formal sector, unemployment insurance and a pension of $80 per month for...

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