SPECIAL REPORT

Mexico: First steps of the cabinet of Enrique Peña Nieto

Mexico, January 2013

BARCELONA BOGOTÁ BUENOS AIRES LIMA LISBOA MADRID MÉXICO PANAMÁ QUITO RIO J SÃO PAULO SANTIAGO STO DOMINGO Mexico: First steps of the cabinet of Enrique Peña Nieto

1. INTRODUCTION 1. INTRODUCTION 2. POLITICS, ECONOMY AND On 1 December 2012 Enrique Peña Nieto was sworn in as Constitutional SOCIETY: CABINET’S CENTRAL President of the United Mexican States. FORMATION 3. THE PACT FOR MEXICO Furthermore, in 2012, the elections of 128 Senators and 500 Federal 4. EXPENDITURE BUDGET Deputies were held; at the local level were elected 6 Governors of 5. CONCLUSIONS the states of Chiapas, Guanajuato, Jalisco, Morelos, Tabasco and AUTHORS Yucatan; Head of Government of the Federal District; 579 local Llorente & cuenca deputies in 15 states; 876 city councils; 20 municipal boards; and 16 Heads of Delegation of . In total, 2127 positions at national level.

In this report, we intend to describe in general the key points in the government’s formation headed by the Institutional Revolutionary Party (PRI in Spanish), the party which ruled in Mexico for 71 years, lost power to the National Action Party (PAN in Spanish) during two presidential terms and is back now.

Peña Nieto has affirmed on different occasions that the PRI is no longer the same one which governed Mexico; in view of this statement, it is necessary to point out that Mexico is neither the same, that society and business people are aware of and up-to-date with what is happening, since formal and informal media and the social networks help to have a better understanding of the actions of our rulers and of national and international events.

In general, we can state that the Cabinet of Enrique Peña Nieto has the following characteristics:

• Predominance of politicians of the .

• Participation of former Governors of some states.

• Luis Videgaray Caso, the main player of Enrique Peña Nieto, is positioned as the leader of the economic cabinet and foreign policy.

• Within the political cabinet, under the leadership of Miguel Ángel Osorio Chong, the total control of security, main critical issue of the last term, was gathered.

2 Mexico: First steps of the cabinet of Enrique Peña Nieto

2. POLITICS, ECONOMY Political and security cabinet AND SOCIETY: CABINET’S CENTRAL FORMATION • Secretariat of the Interior: Miguel Ángel Osorio Chong. For practical purposes, the cabinet has been divided into political, This politician from the State economic and social and as a result of was positioned the existing division of efforts can as one of the main political be further observed. It should players of Enrique Peña Nieto, be mentioned that most of the after having concluded his post positions have a link with the six- as Governor of his state, was year term of the President Carlos appointed as PRI delegate in “The economic Salinas de Gortari (1988-1994). the State of Mexico. Osorio was cabinet is led by Luis later positioned as Secretary Videgaray Caso and the In the positions in which an of Political Operation and agreement or pact was reached Delegations of the PRI political and security with other groups that supported National Executive Committee one by Miguel Angel the campaign, others than those with Humberto Moreira and Osorio Chong, leading of the State of Mexico, the second as Secretary of Organization operators cabinet” most important position was under the Presidency of Pedro assigned to a close collaborator of Joaquín Coldwell, from where Peña Nieto. he continued his support for the presidential candidature We will detail below the of Enrique Peña Nieto. appointments to the main positions of the cabinet, elaborating on the Within the transition team, actors who will have a greater he was assigned as the leadership from their positions leader of the area of Political thus becoming key pieces for the Dialogue and Agreement, exercise of power. therefore he reached several agreements with the internal political forces of the PRI and the opposition parties.

From this term on, the Secretariat of the Interior has the total control of the Public Security institutions, including the Federal Police, the prison system and the crime prevention. Under this department, the National Commissioner of Public Security and the technical secretary of the National Security Council are created. All this seeks to reconsider the security strategy.

3 Mexico: First steps of the cabinet of Enrique Peña Nieto

In view of Enrique Peña politics unlike his predecessor, Nieto’s mention that the who lacked the political security strategy will become capacity. a State Policy, Osorio Chong elaborated on the sense that Mondragón is a Rear Admiral prominent members of civil Naval Doctor of the Mexican society will be included as Navy. In his career, following well as the implementation positions stand out: National of federalism with regard to Coordinator of Social human rights, monitoring of Participation of the Office of the assignment of police forces the General Attorney, Assistant as well as their qualification Attorney for victims’ assistance and the action protocols and social participation at and the strengthening of the Justice Attorney Office of Plataforma México through Mexico City, Assistant Secretary greater participation of of Civic Participation and Crime governors. This strategy will Prevention of the Secretariat of “President Enrique have a regional approach Public Security of the Federal Peña Nieto called (5 regions) without being District, Secretary of Health for the creation of a restrictive and specific actions of the Federal District and will be carried out in the Secretary of Public Security of single police command towns with the highest levels the Federal District. called the National of conflict. Gendarmerie” Julián Alfonso Olivas Ugalde The strategy will also be based was appointed Assistant on the creation of the National Secretary of Administrative Gendarmerie, which will be Responsibilities and Public responsible for gathering all Procurement, position which federal and state forces, as a replaced the one at the single police command, under Secretariat of the Civil Service. the control of the Secretariat of the Interior. Olivas Ugalde has been Vice- President for Legal Affairs In order to strengthen the at the National Commission Secretary’s activities along of Insurance and Finance, these lines, Manuel Mondragón General Manager of Insurance y Kalb was appointed Assistant and Securities at the Secretary of Institutional Secretariat of Finance and Planning and Protection, who Public Credit; from 2000 to was the former Secretary of 2009 he was Director-General Public Security in Mexico City of Performance Audit of the from 2008 to 2012. Mondragón functions of Governmental is an expert also in reaching Management and Finances, agreements and, despite his and Head of Legal Affairs at the professional development Federal Superior Audit Office; as a doctor, he managed to in 2009 he was appointed understand the operation of Head of the Internal Control police commands and work in Body at the National Banking

4 Mexico: First steps of the cabinet of Enrique Peña Nieto

and Securities Commission, • Secretariat of Foreign Executive Secretary of Relations: José Antonio Meade Services at the Supreme Court of Justice of the Nation from The responsible for the foreign 2009 to 2011 and until 2012 policy of the cabinet of Peña Director-General of Human Nieto has served as Director- Resources at the Secretariat General of Financial Planning of Finance and Public Credit. at the National Commission of the Retirement Savings • Office of the Attorney General: System, Assistant Secretary Jesús Murillo Karam of Bank Savings Protection at the Bank Savings Protection Governor of Hidalgo from Institute, Director-General of 1993 to 1998, among other the Banco Nacional de Crédito positions, he has been Assistant Ru¬ral, Director-General Secretary of Public Security at of Banking and Savings at the Secretariat of the Interior; the Secretariat of Finance Secretary-General of the PRI and Public Credit, Director- National Executive Committee General of Financiera Rural, in 2007; Delegate-General of Head of the Coordination the PRI in the Federal District Office of the Secretary of in 2011. Finance and Public Credit, Assistant Secretary for He was a Senator of the Revenue at the Secretariat Republic, serving as President of Finance and Public Credit, of the Commission on Secretary of Energy and Governance, member of the Secretary of Finance and commissions on the Federal Public Credit during the two District, Jurisdictional and presidential terms of the Justice. In 2012, as a Federal National Action Party. Deputy and President of the Lower House, he handed in the He was a fellow student of presidential sash to Peña Nieto Luis Videgaray Caso, current in total control and order of the Secretary of Finance, at the Congress of the Union despite degrees of Law and Economy, the external protests; he was and with whom he held the later appointed Coordinator of discussion when Videgaray led Legal Affairs of the transition the Budget Commission of the team of the President Enrique Chamber of Deputies. Peña Nieto. • Secretariat of the National Given the toughness of this Defense: Major General politician, his appointment is Salvador Cienfuegos Zepeda. interpreted as a reinforcement to the security strategy He has been a unit Commander headed by the Secretariat of at all levels of command, the Interior. carrying out missions in the

5 Mexico: First steps of the cabinet of Enrique Peña Nieto

areas of Foreign Defense and Naval Force, Commander of Internal Security, of support for the Naval Sector of Matamoros, the Public Security function, Tamaulipas, Assistant to the of assistance to the civilian Chief of Naval Operations, population in cases of disasters, Director of the School of of security to strategic Destroyers, Technical Director facilities and surveillance of of the Directorate General of the southern border. Naval Communications, Private Secretary and Chief of Assistants He held several positions of the Secretary of the Navy, such as Oficial Mayor of the Naval Attaché to Panama, Secretariat of the National Nicaragua and Costa Rica and Defense, Director of the President of the Commission on Heroic Military College and Special Studies of the General of the Centro de Estu¬dios Staff of the Navy. del Ejército y Fuerza Aé-rea Mexicanos and Military and Part of the strength of the Air Attaché at the Mexican team of the Secretary of the Embassies in Korea and Japan. Interior lies in the distribution of the Federal Budget • Secretariat of the Navy: under the control of Nuvia Admiral Vidal Soberón. Magdalena Mayorga Delgado, President of the Budget and He has been Deputy Public Account Commission Commander of the third fleet of the Chamber of Deputies, of ocean-going vessels, Deputy who was Secretary of Finance Commander of the Naval during the period in which Sector of Coatzacoalcos, Fleet Miguel Ángel Osorio Chong was Commander of the Pacific Governor of his State.

Economic cabinet

• Secretariat of Finance and Public Credit: Luis Videgaray Caso

During the presidential term of Carlos Salinas de Gortari, Videga¬ray Caso began his professional career at the Secretariat of Finance and Public Credit reaching the position of Private Secretary of the then Secretary of Finance, Armella; he worked also at Aspe’s consulting firm as a

6 Mexico: First steps of the cabinet of Enrique Peña Nieto

financial advisor with State Finance and Public Credit from and local administrations of 2006 until November of this different parties, what led year, where he prepared the him, in 2003, to advise the General Criteria of Economic coordinator of the deputies Policy. He is an economist of the State of Mexico at graduated from ITAM and has the Congress of the State of a PhD from the University of Mexico, Enrique Peña Nieto, Harvard. Last August he was who appointed him Secretary appointed for the second of Finance, Planning and consecutive year a member Administration in the State of the Council on Tax Issues of during his term. the World Economic Forum.

“Videgaray managed to As the President of the Fernando Galindo Favela was reconcile the political Budget Commission of the appointed Assistant Secretary interests of Peña Nieto, Chamber of Deputies from for Expenditure. He was Head 2009 to 2011, he managed of Information, Planning, with the budget of all to reconcile Peña’s political Programming and Evaluation PRI lawmakers from the interests with the budgetary of the Secretariat of Finance Budget Committee of the interests of all PRI lawmakers of the State of Mexico in 2009. Chamber of Deputies” from different States of the During the transition, he was Republic. Later he became responsible for the revision of the General Coordinator the Economic Package 2013. of the Campaign for the He is an economist graduated Presidency and General from the ITAM. Coordinator of Governmental Transition and finally he Fernando Aportela Rodríguez, became Secretary of Finance Assistant Secretary of Finance and Public Credit. and Public Credit. He was the director of public finances at The development of the the consulting brand Protego financial strategy of Peña Nieto Asesores, led by the former has been designed since 2005 Secretary of Finance, Pedro by Videgaray, who achieved Aspe Armella. a well-known intervention among the opposition, leading Aristóteles Núñez Sánchez, him to reach agreements while Head of the Tax Administration at the same time focusing on Service. He was Assistant a political strategy that would Secretary for Revenue at the enable Peña Nieto to obtain Secretariat of Finance of the greater visibility. State Government of Mexico.

Videgaray appointed Miguel Javier Laynez Potisek, Federal Messmacher Linartas as Attorney General. He was Assistant Secretary for ratified in his position for his Revenue, who also was Head good performance. He is a of the Unit of Economic lawyer graduated from the Planning at the Secretariat of Universidad Re¬giomontana

7 Mexico: First steps of the cabinet of Enrique Peña Nieto

with a PhD in Public Law from He was Secretary-General the University of Paris XI Sceaux. of the State Government of Quintana Roo, President of • : the State Election Commission Ildefonso Guajardo Villareal of the State of Quintana Roo, Governor of his State from He was born in Monterrey, 1981 to 1987, Secretary of Nuevo León, and is an Tourism from 1990 to 1993 economist with a Master’s during the presidential term Degree from the Arizona State of Carlos Salinas de Gortari; University and a PhD in Public during the presidential term Finances from the University of he was of Pennsylvania. Director-General of the National Fund for Tourism Among the relevant positions Development, Commissioner he has occupied, stands out for Peace in Chiapas, and the one as Director of the Ambassador of Mexico to Cuba Office of the Secretariat of from 1998 to 2000. Economy for FTA affairs in Washington in 1994, two Senator of the Republic from times Federal Deputy, position 2006 to 2012, President of the from which he reaffirmed his commissions on Constitutional closeness to the main business Matters, Reform of the groups of the country, and State, of the Bicameral especially of Nuevo León, as Commission commemorating President of the Commission the 150th anniversary of the on Economy of the Chamber Constitution of 1857 and of Deputies. member of the commissions on Tourism and Justice. During Enrique Peña Nieto’s campaign, he was appointed Within the PRI, he has been a Coordinator of Links with member of the Consultative Entrepreneurs and later Vice- Council of the Institute of Coordinator of Economic Political, Economic and Policy in the transition team Social Studies, Secretary of of the president-elect. Organization, Secretary of Social Management, Regional • Secretariat of Energy: Pedro Coordinator for different Joaquín Coldwell federal elections;,Secretary- General of the National Between 1974 and 1975 he Executive Committee, was a Deputy and President Representative to the Federal of the Constituent Congress Electoral Institute, Delegate of the State of Quintana Roo; in several States, President of Federal Deputy from 1979 to the National Commission on 1980 and member of the Great Internal Processes of the PRI Commission. National Executive Committee

8 Mexico: First steps of the cabinet of Enrique Peña Nieto

from 2008 to 2011 and President of the PRI National In 2011, the magazine “Poder” Executive Committee. included him as one of the 40 most influential Hispanics National President of the in the United States under PRI from November 2011 to 40 years and the Fundación December 2012. Internacional de Jóvenes Lí¬deres en América Latina • Director-General of Petróleos (International Foundation of Mexicanos: Emilio Lozoya Young Leaders in Latin America) Austin (extended Cabinet) named him ”international leader” due to his role in An economist graduated promoting the region. In 2012, from the ITAM and a lawyer he was recognized as Young graduated from the UNAM Global Leader by the World with a Master’s Degree in Economic Forum. Economic Development and Public Administration from His father, Emilio Lozoya the University of Harvard, he Thalmann, was a fellow was appointed Coordinator student at the degree of of International Links for Economics of Carlos Salinas the presidential campaign de Gortari, who appointed of the PRI’s candidate and him Director-General of later Vice-Coordinator of the Institute for Social International Affairs of the Security and Services for transition team. State Workers (ISSSTE) and Secretary of Energy, Mines He began his career as an and State Owned Industry analyst of International during his presidential term Reserves and Currencies at (1988-1994). Likewise, he is the Bank of Mexico and later the grandson of the former on he focused his career on Governor of the State of the private sphere. Chihuahua Jesús Lozoya Solís.

He has been a Board member • Director of the Federal of the construction company Electricity Commission: OHL México, Director in Chief Francisco Rojas Gutiérrez for Latin America of the World (extended Cabinet) Economic Forum (2005-2009), founder of the company of Federal Deputy and Coordinator social interest housing Terra of the Parliamentary Faction of Design (2002-2005), founder the PRI and President of the of the investment fund JF Political Coordination Board Holding based in Luxembourg from 2009 to 2012. Federal and collaborator at the Deputy from 2003 to 2006, Inter-American Investment President of the Budget and Corporation. Public Account Commission.

9 Mexico: First steps of the cabinet of Enrique Peña Nieto

He was founder and secretary He was the President of of the Contraloría General de the Management Board of la Federación (Federal General Administradora Mexiquense Audit Office) and President of del Aeropuerto Internacional the Board of Directors of the de Toluca and of the councils Instituto Mexicano del Petróleo. of Junta de Caminos (Roads Board), Sistema de He has been the President of Autopistas y Aeropuertos the Board of the Universidad (System of Highways and Nacional Autónoma de México Airports) and Transporte and the National President of Masivo (Massive Transport) the Fundación Colosio A.C. of in the State of Mexico. the PRI. • Secretariat of Tourism: During the presidential term Claudia Ruiz Massieu of Carlos Salinas de Gortari, he served as Director-General Coordinator of Human Rights of Petróleos Mexicanos. and Transparency in the transition team, Federal • Secretariat of Deputy from 2003 to 2006 and Communications and from 2009 to 2012. Coordinator Transport: Gerardo Ruiz of Institutional Planning, Esparza Development and Innovation of the PGR (Office of the Attorney Among other positions, he General) from 2006 to 2008, has been Secretary and among other positions. Assistant Secretary-General of the State Government of Between 2009 and 2012 she Mexico between 1981 and was Secretary Coordinator 1987, General Coordinator of the Movimiento de of Instituto del Fondo Vinculación Ciudadana of Nacional de la Vivienda para the Confederación Nacional los Trabajadores (INFOVIT: de Organizaciones Populares Institute of the Workers’ (National Confederation of Housing National Fund) in Popular Organizations) of the the Federal District, Legal PRI and from 2006 to 2012 Director of the Mexican Social she was the Vice-President of Security Institute and from the Fundación Colosio in the 1999 to 2005 Director of Federal District. Administration of the Federal Electricity Commission. Daughter of José Francisco Ruiz He worked as Secretary Massieu, assassinated in 1994, of Communications of the who was Governor of the State State Government of Mexico of Guerrero, Director-General with Enrique Peña Nieto as of INFOVIT and Secretary- Governor and later as General General of the PRI and brother- Coordinator of Commitments in-law of the then President during the campaign. Carlos Salinas de Gortari.

10 Mexico: First steps of the cabinet of Enrique Peña Nieto

• Mexican Social Security Federal del Consumidor (Office Institute: José Antonio of the Federal Attorney for the González Anaya (extended Consumer), private consultant Cabinet). in several sectors and Legal Director of the Mexican From 2002 on, he has had Institute of the Capital Market. different positions at the Secretariat of Finance and Appointed as Coordinator for Public Credit such as: Head the National Development of the Unit of Insurance, Plan in the transition team. Securities and Pensions, Head of the Unit of Coordination with Social cabinet Federal Entities, Coordinator of the Secretary’s advisors and • Secretariat of Health: Assistant Secretary for Revenue. Mercedes Juan López.

• Institute for Social Security She was Technical Secretary and Services for State of the Health Cabinet Workers: Sebastián Lerdo of the Presidency of the de Tejada Covarrubias Republic (1983-1988), (extended Cabinet). Assistant Secretary of Health Regulation and Promotion Full representative of the of the Secretariat of Health PRI to the Federal Electoral during the presidential term Institute, Federal Deputy from of Carlos Salinas de Gortari 1994 to 1997 and from 2009 to (1988 a 1994), Secretary of 2012, he has been Coordinator the National Health Council of of Advisors at the Procuraduría the Secretariat of Health from 1994 to 1997. Federal Deputy of the PRI from 1997 to 2000. Commissioner of COFEPRIS and recently CEO of the Fundación Mexicana para la Salud (Mexican Foundation for Health) of the company Nestlé.

• Secretariat of Education: Chemor.

Politician from the State of Mexico, he was the Director- General of the Federal Electoral Institute from 1991 to 1993, Governor of the State of Mexico from September 1993 to July 1995, position which he left to take office as Secretary of the Interior from June 1995

11 Mexico: First steps of the cabinet of Enrique Peña Nieto

to January 1998. Federal Molina for Strategic Studies on Deputy from 2003 to 2006 and Energy and the Environment. from 2009 to 2012, period in which he was the President of Secretary of Economic the Chamber of Deputies. Development of the State of Mexico during the terms of • Secretariat of Social Emilio Chuayffet and César Development: Rosario Robles Camacho. In this period, Berlanga. Peña Nieto was the closest collaborator of Guerra Abud. Former President of the Party of the Democratic Revolution, From 2001 to 2009 he was she was the first woman the CEO of ANPACT and from who occupied the Head of 2009 to 2012 he was a Federal Government of the Federal Deputy and Coordinator of District from September 29, the faction of the Ecological 1999 to December 4, 2000 Green Party of Mexico. and successor of Cuauhtémoc Cárdenas Solór¬zano and • Secretariat of Agriculture: predecessor of Andrés Manuel Enrique Martínez y Martínez. López Obrador, main leaders of the current left. Governor of the State of from December At the second position, Ernesto 1999 to November 2005, he Nemer Álvarez, from the State developed his main career of Mexico and close to Peña in his State, as Secretary- Nieto, was appointed for the General of the Government, Under-Secretariat for Social Director of Revenue and and Human Development and Expenditure of the State also served as Secretary of Treasury, Mayor of Social Development of the and Federal Deputy on two State of Mexico, Coordinator occasions, among other of the PRI faction at the positions. In 2005 he was a Congress of the State of Mexico contender in the candidature and Secretary-General of the for the Presidency of the Government in the State. Republic for the PRI. He was Delegate of the PRI National • Secretariat of the Executive Committee in 2007. Environment and Natural Resources: Juan José Guerra • Secretariat of Labor and Abud. Social Security: Alfonso Navarrete Prida. Environmental Coordinator in the transition team of the A lawyer with a master’s President-elect of the United degree in Criminal Law, he Mexican States, also works as began his political career Advisor of the Centro Mario as Jorge Carpizo McGregor’s

12 Mexico: First steps of the cabinet of Enrique Peña Nieto

private secretary in his he worked as Oficial Mayor of positions as President of the State Government. the National Commission on Human Rights from 1991 to He has been on two occasions 1992, as Attorney General Local Deputy and on two of the Republic from 1993 to more, Federal Deputy, 1994 and as Secretary of the from 2000 to 2003 was the Interior in 1994; between 1995 Vice-coordinator of the PRI and 1996 he was the Legal parliamentary group and Director-General and General from 2009 to 2012, besides Comptroller of the Secretariat being Vice-coordinator of the of Health. PRI, he was President of the Chamber of Deputies from From 1998 to 2000 he was 2010 to 2011. Assistant Attorney of processes and Assistant Attorney of Two positions to be harmonized Criminal Procedures at the Office of the Attorney General • Head of the Office of the of the Republic. In the state Presidency: Aurelio Nuño of Mexico, he was Assistant Meyer. Secretary of Public Security, from 2001 to 2006 Attorney He was coordinator of Luis General of Justice of the State, Videgarays’ Advisors at the ratified by Peña Nieto, in 2008 he Chamber of Deputies and was Secretary of Metropolitan advisor of Peña Nieto during Development and from 2009 to his term as the President of 2012 he was Federal Deputy, the State of Mexico. position in which he succeeded Luis Videgaray as President of • President of the PRI National Aurelio Nuño Meyer. the Budget and Public Account Executive Committee: César Commission of the Lower Camacho Quiroz. Chamber. Born in the State of Mexico, • Secretariat of Agricultural, he is a lawyer graduated from Territorial and Urban the Univer¬sidad Autónoma Development: Jorge Carlos del Estado de México with Ramírez Marín. a master’s degree and a PhD from the Universi¬dad Lawyer with graduate studies Nacional Autónoma de México. in Parliamentary Law, he has He was Assistant Secretary of been the National President Political Development of the of Instituto de Ca¬pacitación Secretariat of the Interior, y Desarrollo Polí¬tico A.C. Governor of the State of and from 1996 to 1999 he Mexico from July 1995 to served as President of the December 1999, Senator from State Executive Committee in 2000 to 2006 and Federal Yucatán. In the same period, Deputy from 2006 to 2009. César Camacho Quiroz.

13 Mexico: First steps of the cabinet of Enrique Peña Nieto

3. THE PACT FOR MEXICO • Citizens’ participation as key actors in the design, On Sunday, 2 December, a day implementation and after taking office as President evaluation of public policies. of the Republic, the most important political agreement Additionally, five agreements were of the last years was announced, established, which in particular the “Pact for Mexico”, by which refer to the structural reforms the structural reforms that had that are needed in order to have been pending in the absence of further political, economic and “The country requires agreements in the last years will social growth, such as: a deep, long-range be promoted. comprehensive pact to • Society of Rights and One of the main conditions that Freedoms consolidate Mexico as a made up this pact was to put the political democracy and emphasis on those reforms that • Economic Growth, Employment socially effective” would have a direct and significant and Competitiveness impact on social development, the reduction of inequality and • Security and Justice the elimination of extreme poverty through the building of • Transparency, Accountability an effective democracy, based and Combating Corruption not only on laws in accordance with the democratic regime, • Democratic Governance but also on political practices and institutions giving shape and The monitoring of this political content and which also involve the agreement will be followed by citizens’ participation to ensure the members of the Governing its functioning. Moreover, it was Council, which are representatives agreed to fight against the de appointed by Enrique Peña Nieto, facto powers of the country. three of the PAN, three of the PRI and three of the PRD. On that date the main political forces of the country (PRI, PAN, Additionally, there is the Technical PRD) met with the President in Coordination, which will be in order to sign the pact, which has charge of the monitoring of the three guiding principles: agreements by the Governing Council and of the agreements by • Strengthening of the Mexican the working tables. State. This coordination was established • Economic and political through a representative of the democratization as well President, one of the PAN, one as expansion and effective of the PRI and another one of implementation of social the PRD. Finally, it is noted that rights. “monitoring and evaluation

14 Mexico: First steps of the cabinet of Enrique Peña Nieto

mechanisms will be included to »» From this reform, which prominent figures of the a platform with Organized Civil Society will be the necessary data invited”. is implemented as regards information • Education reform: first result and transparency of the of the Pact for Mexico. education system. »» Full-time school days are One of the main problems in implemented in order to “Resources’ self- education in Mexico has been improve the students’ management the full control of public policies education and nutrition. will increase the in this matter by Elba Esther »» Regarding nutrition, this Gordillo, lifelong leader of the reform establishes the competitiveness of National Educational Workers ban on all foods that do schools: EPN” Union (SNTE in Spanish). not benefit health.

In the face of this situation, a The main discomfort of reform to the third article of the several actors was that this Constitution with the following constitutional reform did elements was proposed: not consider a modification of the relationship with the »» The teacher is the most SNTE. Their defense argument relevant figure in the was based on the self- educational process, not determination of trade unions. the union. »» The leadership of principals and supervisors 4. EXPENDITURE BUDGET is strengthened in order to enhance the school’s With the purpose of achieveing a effectiveness. Budget for 2013 in accordance with »» Schools are given the actions taken and committed by autonomy in the Enrique Peña Nieto, it was agreed management of resources to implement certain priority and the participation of actions, programs and projects the school community with the current resources of in decision-making 3,956,361,600,000 pesos provided processes is promoted. in the Federal Income Law for the »» One of the most 2013 fiscal year. controversial points refers to the implementation This figure was approved pending of a fair assessment the tax reform that will allow for a recognizing the teachers’ greater development, as planned strengths and areas of in the Pact for Mexico. opportunity. »» The constitutional Meanwhile, it has been established guarantee establishing not the need to make clear a program only equity but also quality of austerity and rationality in education is reinforced. expenditure to enable the reduction

15 Mexico: First steps of the cabinet of Enrique Peña Nieto

of current expenditure and the in particular in Secondary increase in productive investment. and Higher Education. Pilot program “Beca-Salario”. It was agreed to give priority to Schools, teachers and the following areas: students’ census carried out by the INEGI (National 1. Social Security: Life insurance Institute of Statistics and for Household Heads and Geography). Pension for Adults older than 65 years (new programs). 6. Science and Technology: Increasing the resources 2. Gender Equality: allocated to the National Strengthening the programs Council for Science and for Reproductive Health Care Technology. and Gender Equality in Health, as well as the programs to 7. Economic Growth: Creating reduce maternal mortality the Entrepreneurs Fund and teenage pregnancy and and reinforcing the regional to prevent, address and programs. “The budget for fiscal eliminate the violence against year 2013 is three women and girls. 8. Crime prevention: billons 956 thousand Consolidating and bringing 3. Indigenous people: together all the budgetary 361.6 millons pesos” Strengthening the Infrastructure programs for the crime for the Assistance of Indigenous prevention so that it becomes Communities. a national priority.

4. Disabled people: The approved Income Law Strengthening the fund for the provides for: Accessibility to Public Transport for Disabled People (reinforcing The collection of 1,605,162,500,000 the current program). pesos for Income Tax, the Impuesto Strengthening the programs Empresarial a Tasa Única (Single aimed at the assistance of Rate Corporate Tax) and the Value disabled people. Added Tax.

5. Education: It is worth noting 809,588,500,000 pesos will come that this reform was already from the collection of duties (as presented in relation to the a compensation for the services Pact for Mexico and will be provided by the State in relation approved by the Congress of to the use or exploitation of the Union in the coming days. public property and the duties Decent schools. Full-time on hydrocarbons). schools. Laptops for children in fifth and sixth grade (new 45 million pesos from the and pilot program in three taxes not included in previous federal entities). Reinforcing instalments from previous fiscal the fellowship programs, years.

16 Mexico: First steps of the cabinet of Enrique Peña Nieto

1,102,425,500,000 pesos will be in an opposition government, received as income from organisms and therefore the policies they or companies, from which implemented together will be 212,219,700,000 pesos account for strengthened. social security contributions. However, the economic growth Income derived from funding not only depends on the team in will be 355,289,600,000 pesos, charge of it, but on the depth and including the deficit of bodies and scope with which the pending tax companies of direct control, which reform will be carried out, which will be 89,558,600,000 pesos. will be one of the structural reforms that will discourage informality, through more flexible 5. CONCLUSIONS taxation mechanisms, guiding the current expenditure towards Once Enrique Peña Nieto’s cabinet, public investment in order to with which he started his term, generate the involvement of the was made up, a clear division of private sector, reviewing and responsibilities in the political and giving the pension system a new economic areas can be observed. structure and giving resources total transparency. The cabinet’s economic activity is focused on Luis Videgaray, The tax reform is expected to in charge of the Secretariat be presented by the Secretariat of Finance and Public Credit; of Finance at the beginning of however, there will be a the second regular session, this permanent collaboration and is, between February and April, cooperation with Osorio Chang’s in order to be applied in the group, who holds the control over following Federal Income Law the provision of resources from and Expenditure Budget, which the Chamber of Deputies after will be presented in September. positioning at the presidency of Furthermore, alternatives for the Budget and Public Account the energetic sector have been Commission a legislator close to considered and as long as the the Secretary of the Interior. economy and oil resources cannot be separated, income cannot be The economic situation is ensured and therefore this could projected along the same line of also be a factor for the division of moderate growth that had had, priorities on tax and energy issues. since part of Luis Videgaray’s team is the same that was The main topic of relevance for positioned at the Secretariat of Mexican society is public security; Finance in addition to his closest in this regard, authorities have collaborators at other positions. been centralized around the political power of the Secretariat In this regard, Videgaray has the of the Interior, with the aim of advantage of having had one of his focusing the security forces in a closest friends as his predecessor single authority and command,

17 Mexico: First steps of the cabinet of Enrique Peña Nieto

obtaining the total control of any with the highest marginalization operation at all levels. and poverty rates.

Important actions are expected One of the critical issues for the in pending issues such as the government is the negotiation with structural reforms, since the the Congress, since, although it is true actions carried out by the that the PRI has a simple majority, current government in less than the parliamentary coordinators have 100 days, are focused on a first been opponents to Peña himself negotiation phase, a second one in the process of election of the of agreements and the third one candidate to the presidency. So far, to implement the actions. the main players of the cabinet have been able to perfectly agree with Among the priorities in the the Congress and it is expected to social field, Peña Nieto defined continue like that. the attention to the food problem as his priority, since Finally, it is to be noted that the he started the National Crusade group close to Peña Nieto is the one Against Hunger, in which the which occupies most positions in needs of 7.4 million the cabinet, made up by yesteryear who live in 400 municipalities politicians, sons of former will be met, by means of a presidents and by former governors, focused orientation, the due among others; most of them are co-responsibility of all local people who have governed at local governments as well as a social or national level in the last terms, strategy to strengthen the mainly since the days of the former productive capacity of the areas president Carlos Salinas de Gortari.

18 Mexico: First steps of the cabinet of Enrique Peña Nieto

Authors

Alejandro Romero is Partner and CEO for LLORENTE & CUEN- CA in Latin America. Since 1997 he has been carrying out the expansion process of the company in Latin America and man- aging our 8 offices in the Region. Alejandro has also been in charge of the communication processes of three of the ten most important operations in M&A in the Region: the sale of BellSouth operations to Grupo Telefónica, the acquisition of Grupo Em- presarial Bavaria by SABMiller and the sale of Grupo Financiero Uno to Citibank. As the person responsible for the operation in Mexico, he placed the company in just five years among the three most important ones of the country, according to the annual ranking of the magazine Merca 2.0. [email protected]

Juan Rivera is Partner and Managing Director of LLORENTE & CUENCA in Mexico. In his nearly 20 years of professional experience, he has given professional advice to more than 120 companies in corporate and financial communication strategies, whether fusion or acquisition processes, flo- tation or company restructuring. Juan began his profes- sional career in IBM and he held different positions in an American multinational of communication consultancy. Before joining LLORENTE & CUENCA he was Communication and Corporate Affairs Director in a finance company. He is a Graduate in Communication and he completed his studies with a program in Business Communication and another in Business Administration and Management by the IESE. [email protected]

Alejandro Pulido is Director of Public Affairs and Strategic Communication of LLORENTE & CUENCA in Mexico. Expert in Corporate Affairs and Governmental Relations for highly regu- lated multinational companies and strategic sectors. He has been, among other responsibilities, Deputy Director of Legal Advice in the Federal Institute of Public Defence, Manager of Corporate Affairs of Philip Morris Mexico and Manager of Legislative Liaison in Cementos Mexicanos, Treasurer of the Food, Drinks and Tobacco Sector of the National Chamber of Manufacturing Industry (CANACINTRA) and Legislative Vice-president of the Chamber of Manufacturing Industries of Nuevo León. Since 2011 he is Member of the Academic Council of the Instituto Ortega y Gasset. [email protected]

19 Leading Communications Consultancy in Spain, Portugal and Latin America

LLORENTE & CUENCA is the leading Reputation Management, Communication, and Public Affairs consultancy in Spain, Portugal, and Latin America. It has 17 partners and more than 300 professionals who provide strategic consultancy services to companies in all business sectors with operations aimed at the Spanish and Portuguese speaking countries.

It currently has offices in Argentina, Brazil, Colombia, Chile, Ecuador, Spain, Mexico, Panama, Peru, Portugal and the Dominican Republic. It also offers its services through affiliates in the United States, Bolivia, Paraguay, Uruguay and Venezuela.

Its international development has meant that in 2014 LLORENTE & CUENCA is 55th in the Global ranking of the most important communication companies in the world, as reflected in the annual Ranking published by The Holmes Report.

Organisation

CORPORATE MANAGEMENT LATIN AMERICA Panama

José Antonio Llorente Javier Rosado Alejandro Romero Founding partner and Chairman Partner and Managing Director Partner and Latin American CEO [email protected] [email protected] [email protected]

Enrique González José Luis Di Girolamo Avda. Samuel Lewis. Edificio Omega, piso 6 Partner and CFO Partner and Latin American CFO Panama City (Panama) [email protected] [email protected] Tel. +507 206 5200

Jorge Cachinero Antonio Lois Quito Corporate Director for Innovation Regional Director of Human Resources [email protected] [email protected] Catherine Buelvas Managing Director SPAIN AND PORTUGAL Bogota [email protected]

Arturo Pinedo María Esteve Av. 12 de Octubre 1830 y Cordero. Partner and Managing Director Managing Director Edificio World Trade Center, Torre B, piso 11 [email protected] [email protected] Distrito Metropolitano de Quito (Ecuador) Tel. +593 2 2565820 Adolfo Corujo Germán Jaramillo Partner and Managing Director Chief Executive Rio de Janeiro [email protected] [email protected] Yeray Carretero Madrid Carrera 14, # 94-44. Torre B — of. 501 Director Bogota (Colombia) [email protected] Joan Navarro Tel. +57 1 7438000 Partner and Vice-President of Public Affairs Rua da Assembleia, 10 — sala 1801 [email protected] Buenos Aires Rio de Janeiro — RJ (Brazil) Tel. +55 21 3797 6400 Amalio Moratalla Pablo Abiad Partner and Senior Director Partner and Managing Director São Paulo [email protected] [email protected] Juan Carlos Gozzer Juan Castillero Enrique Morad Managing Director Financial Director Chief Executive for the Southern Cone [email protected] [email protected] [email protected] Rua Oscar Freire, 379, CJ 111, Cerqueira César Lagasca, 88 — planta 3 Av. Corrientes 222, piso 8. C1043AAP CEP 01426-001 São Paulo SP (Brazil) 28001 Madrid (Spain) Ciudad de Buenos Aires (Argentina) Tel. +55 11 3082 3390 Tel. +34 91 563 77 22 Tel. +54 11 5556 0700 Santiago de Chile Barcelona Lima Claudio Ramírez María Cura Luisa García Partner and General Manager Partner and Managing Director Partner and CEO of the Andean Region [email protected] [email protected] [email protected] Avenida Vitacura 2939 Piso 10. Las Condes Muntaner, 240-242, 1º-1ª Cayetana Aljovín Santiago de Chile (Chile) 08021 Barcelona (Spain) General Manager Tel. +56 2 24315441 Tel. +34 93 217 22 17 [email protected]

Lisbon Av. Andrés Reyes 420, piso 7 Santo Domingo San Isidro. Lima (Peru) Madalena Martins Tel. +51 1 2229491 Alejandra Pellerano Founding Partner Managing Director [email protected] Mexico [email protected]

Carlos Matos Juan Rivera Avda. Abraham Lincoln Founding Partner Partner and Managing Director Torre Ejecutiva , planta 7 [email protected] [email protected] Santo Domingo (Dominican Republic) Tel. +1 8096161975 Rua do Fetal, 18 Bosque de Radiatas # 22 — PH7 2714-504 S. Pedro de Sintra (Portugal) 05120 Bosques las Lomas (México D.F.) Tel. + 351 21 923 97 00 Tel. +52 55 52571084

Corporative webpage UNO Magazine YouTube Facebook www.llorenteycuenca.com www.revista-uno.com www.youtube.com/LLORENTEYCUENCA www.facebook.com/llorenteycuenca

Centre of Ideas Twitter LinkedIn Slideshare www.dmasillorenteycuenca.com http://twitter.com/llorenteycuenca www.linkedin.com/company/llorente-&-cuenca www.slideshare.net/LLORENTEYCUENCA d+i is a hub by Llorente & Cuenca, for Ideas, Analysis and Trends.

We live in a new macroeconomic and social context, and communication has to evolve.

d+i is a global combination of partnership and knowledge exchange, identifying, focusing and communicating new information models, from an independent perspective.

d+i is a constant ideas flow, looking to the future information and management trends.

Because nothing is black or white, there is something like d+i LLORENTE & CUENCA.

www.dmasillorenteycuenca.com

CARACAS LA PAZ MIAMI MONTEVIDEO SANTIAGO DE CHILE