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Mexican president is isolated

September 29, 2009

PORTFOLIOS

* CALDERON: CHINA AND SPAIN AS EXAMPLES?

* GERMANY CHOOSES LOWER TAX BURDEN

* UP TAXES EQUAL TO ELECTORAL DEFEAT

DE JOSE A. PEREZ STUART

1 .- The electoral victory of the German Christian Democratic Party.

2 .- The loss of an absolute majority of the Congress Socialist Party in Portugal, and

3 .- The fall of the electoral preferences of the Socialist Party in Spain …

Direct consequence of an economic measure that Mexico seeks to impose the government of Felipe Calderón: the tax increase.

Indeed, in the elections held last Sunday in Germany and Portugal, the result is explained by the growing refusal of citizens to a rise in taxes encouraged by socialist or social democratic parties in these European countries. In Mexico, the ruling PAN party, that of a hybrid scheme of government is slowly being dragged towards social democracy, is being forced by the Calderon administration to support a higher tax burden for citizens, already affected by the highest unemployment rates in the nation’s history.

The proposal, initially launched by the Calderon government, under pressure and subsequently endorsed by the official party leadership PAN, has found widespread rejection response and thereby increased the loss of consensus presidential rule, a phenomenon never before seen in Mexico:

A) All opposition parties have rejected the government proposal.

B) All agencies of employers have also expressed opposition to the economic package that the government hopes for 2010.

C) No sector of society has come out in favor of the proposal, the flag of social democratic parties.

And to top it appears that officials of the Ministry of Finance, trying to stand up for the implementation of the charge, put as an example to countries where they are taking the same route, but concealing the high cost policy that has brought. Could anyone give an example to follow the tax increase in a country like China, under a communist dictatorship? Could anyone give an example to Spain, where the refusal to apply the higher tax burden is widespread? And why Mexican officials would not say that precisely the proposal to raise the tax burden on taxpayers had cost the Socialist party lost the elections in Germany?

Set as a role model to countries with communist or socialist government is, indeed, a bad omen …

* The pompous reception that was given to Manuel Zelaya in Mexico, like head of state.

* The search for alliances of his party, PAN, PRD with the Mexican Marxist, and

* Raising taxes, as they are doing communist and socialist governments …

They are a bad reference on what the country can expect in the coming years, particularly in the remainder of his term.

Some who have tried to anesthetize analysts have said there is nothing surprising, given that governments traditionally launch the idea to know the reaction and adjust according to the national mood. This argument is false, since what is traditionally done before to present the official economic package of proposals for next year, agreed with the various sectors of the national political and economic activity, through analysis sessions and discussion with their representatives: this is sndicales leaders, business leaders, legislators from the opposition.

In the present case, it is clear that not having carried out this work of building consensus for his economic package next year, has submitted to Mexican President Calderon to a serious erosion that has been presented as isolated, alone in his proposal.

Rejection has been widespread. The political cost, we insist, is enormous, and consequently the wear on the business of governing.

Germany has chosen a different path: that of reducing taxes.

Mexican president’s advisers seem to be leading the current government on a path of ambiguity, where the supports are lost. And less than three years of general elections is not a good sign.

Calderon has shown, since its inception, a tendency to seclusion in an intimate circle, narrow, while it estállevando political isolation and in the exercise of public function, loss of consensus, the social base.

perezstuart@gmail.com

http://mexicopointofviewperezstuart.blogspot.com

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