Austerity Plan Presentation/Tax to Buy Banamex

Austerity plan. The government of Mexico presented an austerity plan to the National Electoral Institute (INE) that will allow it to save the necessary resources to hold a referendum on President Andrés Manuel López Obrador’s presidency in April. Minister of the Interior (SEGOB) Adán Augusto López pointed out that the proposal was made at the request of López Obrador and with all due respect to the autonomy of INE. The proposed plan shows that a savings of MX$718.8 million (US$42.6 million) can be achieved and this is without "impacting" in any way INE’s operational personnel or reducing job numbers at the institute, López said. Among the cuts would be a new salary and salary tabulator for 1,336 jobs, adjustments to personnel perks, elimination of insurance for major medical expenses as well as individualized separation.

The so-called Revocation of Mandate is a Constitutional lever for citizens to decide whether to remove an elected official, including the president. López Obrador himself has insisted on the vote in April, declaring he would leave office if the vote went against him. His critics say the move is an attempt to solidify his power.

Sale of Banamex. López said that if the sale of Citibanamex generates taxes, these must be paid in a timely manner. "The public policy measures of the federal government is that here, no one is forgiven taxes; that is an exercise from the past. If a sale implies payment of taxes, these must be paid in a timely manner."

Citigroup, one of the largest banking groups in the US, has announced that it will close its retail banking and small and medium-sized business operations in Mexico, although it will continue to operate in the country with a local license.

Complaints against former presidents. The Ministry of Finance and Public Credit (SHCP) has been instructed to report the number of complaints filed by the Financial Intelligence Unit (UIF) against former presidents of Mexico, as of 2005, and against the President López Obrador.

AMLO's doing well. President López Obrador, who has been isolating since contracting COVID-19 earlier this week, is well and following all health protocols, López said. “Yesterday, we held two or three meetings virtually. During one of them, we presented the result of our work. He is very aware of the state of the federal public administration.” No date has been set for López Obrador’s return.

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Click HERE for full transcript in Spanish