Jose Agustin Ortiz Pinchetti: Pena Nieto Approaches His Hour of Truth Jose Agustin Ortiz Pinchetti - La Jornada
go to original August 5, 2013

In the next ten weeks, the future of the Peña Nieto regime will be defined: a hybrid between democracy and plutocracy. Peña Nieto will have to decide on the energy, tax and political reforms. He won't be able to avoid his responsibility or back down, and it will be difficult to impose them.

Peña Nieto will calculate between the pressure of interest groups, to whom he owes his position and who want to reform the Constitution in order to gain the oil revenues, while maintaining their tax havens where they do not pay taxes, and shift the tax burden to the masses, while limiting the political reform so that it won't endanger their conservative hegemony. On the other hand, he will face resistance from the majority or a large, politicized portion of the population who don't want to de-nationalize Pemex, or a VAT [value added tax] on food and medicine, or a political reform that cheats them.

I think we are all in agreement that it is necessary to reorganize Pemex, beginning with controlling the voracious union, the corrupt administration and the brutal tribute [paid to the government] that keeps it from being competitive. The oil industry is linked to our historical identity. In fiscal matters more resources and progressive reforms are needed. Those who have more need to pay more, in order to provide 400 billion pesos [USD$31.6 billion] in tax revenue. And, in politics, we need the money and the media to be controlled to ensure free and fair elections.

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