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The Government of the Virtual Elected President, Andrés Manuel López Obrador (AMLO) hopes to obtain an economy of 1 to 2% of gross domestic product (GDP) by centralizing government purchases ] and by the fight against corruption said the finance secretary appointed by the virtual winner of the presidential elections.
Carlos Urzúa assured that the eventual government of AMLO will have a and that the autonomy of the Bank of Mexico (Banxico) will be respected.
In a conference call with investors, he said that e will maintain the free floating type trading system and acknowledged that inflation is currently under control.
"We strongly believe that tax and financial regulatory bodies should be managed in a transparent manner." He revealed that Arturo Herrera, who is an executive of the World Bank, will join the transitional team . Herrera and economic adviser Gerardo Esquivel are expected to assume leadership roles within the Ministry of Finance.
The five-month transition period will be an opportunity for to prepare the 2019 budget to be sent to Congress on December 15, Herrera said. He noted that the transition team hopes to work with the current government in the upcoming review of the line of credit with the IMF in November to support the renewal application.
Urzúa and Herrera assured that the new administration will aim to refocus the resources towards public investment. "In the medium and long term, we must change course, we must start with more investments," said Urzúa.
"We must have at least 5% of GDP in public investment: we will welcome any private, domestic and foreign investment We would like to have a very friendly environment for investors around the world "
They plan to reform pensions
After holding a conference call with investment funds, Urzúa said that they will try to improve the pension system, considered by experts as a time bomb because the state is increasing its debt to pay for it as life expectancy increases and as the base of retirees grows.
"The pension problem is accelerating over time," he said in an interview. "Yes, we intend to make a reform afterwards, but not for the moment, we will try to do it in the six-year period where everything else will be well set up."
An eye on finances
To ensure prudence in the management of finances, some non-governmental organizations (NGOs) proposed to establish a "tax council", with which Urzúa said they agreed.
"It could be a tax council but always taking into account the same role played by the CBO ( Congressional Budget Office ), which is a non-partisan body", he added.
In addition to winning the presidency, the party founded by López Obrador, Morena, could have a simple majority in both houses of Congress, which would help to enact, amend and repeal laws .
"I would say it's a bit easier for a government to do every day but it does not mean anything in terms of changes (…), we do not really think about changing anything it's the Constitution or the primary laws, "said Urzúa.
On Pemex, a Mexican public oil company in difficulty, whose hydrocarbon production has steadily declined in recent years, Urzúa said that all its "inefficiencies" should be assessed, including costs, investments, union costs and manpower.
"You have to analyze that because the costs of entry can be excessive labor costs, you have to see, you have to study the question, but all will be studied", a- he said.
López Obrador and his advisers also said that they were looking to reduce redundant or ineffective social programs and that they would focus on helping the elderly and the young.
According to information from Reuters
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