A note from Antonio O. Garza: Below you'll find ViaNovo's Snapshot look at Mexican President Felipe Calderón's State of the Union report. To learn more about ViaNovo or to subscribe to their publications, visit the firm's Web site.

VioNovo Snapshot

Mexican President Felipe Calderón presented his State of the Union report earlier this week and yesterday he laid out his priorities for the remainder of his term. Having lost his majority in the new Congress, the President's agenda faces significant hurdles. We discuss the latest developments in this issue of the Snapshot. I hope you find it informative.

To view the previous issue, please click here.

James S. Taylor

Calderón's Call for Change: Will Congress Heed the Call?

Mexican President Felipe Calderón delivered his third Informe (State of the Union address) Wednesday morning, calling on Mexicans to put aside political, party, and personal differences to work together for the good of the country. "We are at a defining moment in our history," the President declared, "In our hands is the decision of whether we continue with inertia or whether we push for the profound changes that are necessary to advance our country."

Understating Mexico's 'annus horribilis,' Calderón termed the past year "different" and noted that "diverse conditions" have tested the nation's will, spirit, and institutional strength. In a recounting of the year's challenges, the President surveyed the severe economic downturn brought on by the global economic crisis; the outbreak of the H1N1 pandemic; rising crime and unprecedented levels of violence associated with the fight against transnational drug trafficking organizations; a dramatic drop in oil production, and; a devastating drought.

Instead of being intimidated by the adversity, Calderón asserted, his administration had confronted it. He then went on to describe some of the actions taken and results achieved in each of the challenge areas he had mentioned, but stated that much remains to be done to fulfill his and the Mexican people's aspirations for the country.

The President spoke at the National Palace before an audience comprised of governors, mayors, diplomats, academicians, union leaders and members of the newly constituted Mexican Congress. The President offered his goals for his remaining three years in office in a 10-point plan for reform, which included these areas for government action:

1. Reducing poverty.
2. Achieving universal health coverage.
3. Providing quality education as a path to a better future.
4. Undertaking a fundamental reform of public finances so that declining revenues from the oil sector are offset by more rational government expenditures and improved tax collection.
5. Undertaking structural economic reforms, particularly in the energy sector, to enhance the competitiveness and job-creation potential of public companies.
6. Reforming the telecommunications sector so that it is more competitive and provides the technology and services necessary for economic development and growth.
7. Modernizing the legal framework for labor in order to boost productivity, but without reducing workers' rights.
8. Reforming basic government regulations to facilitate and simplify business operations and to address the needs of citizens efficiently and effectively.
9. Deepening and broadening the fight against organized crime and strengthening the Rule of Law in the country.
10. Undertaking further reforms to the political system, including reform of electoral laws and the handling of disputes and conflicts, so that government can function well at all levels.

How receptive Calderón's audience will be to his call for national unity is an open question. The political atmosphere during Tuesday's speech was tense, a consequence of the shift in power of the 500-member Lower House of Congress. The new PRI majority wasted little time in flexing its political muscle, finding constitutional grounds that compelled the President to shift the timing for his speech by a day.

But the PRI faces a delicate balancing act as it eyes 2012 and the opportunity to re-capture the Presidency for the first time since 2000. Facing a still-popular President - Calderón's approval ratings remain in the low 70s according to recent polls - the party is wary of giving the President too much of what he asks for and wants to offer a clear alternative for voters. But many of the reforms Calderón is seeking are widely acknowledged as necessary for bolstering the country's economic prospects coming out of the recession. Making the tough choices now could clear the way for greater success during the next sexenio.

Calderón opted for the higher ground in his speech, saying that it is an urgent time for action and that he would begin meeting with various groups and engage in a dialogue so as to decide what is best for Mexico. With the hard realities confronting the country's leaders, many observers feel there will never be a more appropriate time for real change.