Mon Jul 2, 2012 7:18pm EDT
* Pena Nieto seeks energy, tax and labor reforms * President-elect's victory margin smaller than forecast * Partial results show PRI may not have majority in Congress By Anahi Rama and Tomas Sarmiento MEXICO CITY, July 2 (Reuters) - Mexican President-electEnrique Pena Nieto pledged on Monday to focus on energy, laborand tax reforms and said he hopes to strike deals with opponentsto help shepherd changes through Congress before he takes officein December. Pena Nieto won Sunday's election with about 38 percent ofthe vote, about 6 percentage points ahead of his nearest rival,returning the Institutional Revolutionary Party (PRI) to powerafter 12 years in opposition. But the victory margin was smaller than expected and resultssuggested the PRI and its Green allies would struggle to win amajority, officials at the electoral authorities told Reuters. That would leave Pena Nieto reliant on other parties to backhis plans to reinvigorate Latin America's No. 2 economy. Speaking to reporters in Mexico City, the 45 year old saidhe was ready to consult with outgoing President Felipe Calderonand bring in experts to make progress on the reforms and helpease them through Congress, which reconvenes in September. His main reform proposals include allowing more privateinvestment in Mexico's state-run oil industry, overhauling thetax system to improve government revenues and liberalizing thecountry's labor laws to encourage job creation. "We will now be working on all these initiatives with publicpolicy experts," Pena Nieto told a news conference. Calderon's conservative National Action Party (PAN) hadtried to get similar reforms through Congress over the past sixyears but the efforts were thwarted by opposition from the PRI,which has both populist and pro-business leanings. Victor Garcia, a 51-year-old graphic designer in MexicoCity, said the PRI's failure to win a majority was a blow forthe presidency and would stymie economic reform. "All the parties just work to their own advantage," he said."And the president doesn't give orders to anyone any more." Pena Nieto has promised to lift economic growth to about 6percent a year, create jobs and draw the heat out of a war withdrug gangs that bogged down Calderon's administration. Theconflict has killed more than 55,000 people since late 2006. Long regarded as corrupt and authoritarian, the PRI hasbounced back under the youthful Pena Nieto, who has vowed tobreak with the party's checkered past. He has sought to bring in new blood to the party, and PenaNieto said his campaign chief, Luis Videgaray, 43, would formpart of his government team. Videgaray is well regarded byinvestors and seen as a possible choice for finance minister. But the party is still deeply resented by many Mexicans. "Yes, the PRI has experience. They know how to steal. Theyknow how to make pacts with drug cartels. And they know how tokill," said Heliodoro Maciel, an electrician and trade unionist. Final opinion polls before the election had shown Pena Nietowinning by 10 to 15 percentage points, but with 97 percent ofreturns in, the gap to his leftist rival, Andres Manuel LopezObrador, was 6.4 points, or roughly 3 million votes. PAN candidate Josefina Vazquez Mota came in a distant thirdas the PAN suffered a crushing defeat, hurt by Calderon'sfailure to ramp up growth and curb the drug war violence. The PAN raised high hopes when it was elected in 2000, butthe economy underperformed its peers in Latin America for mostof the 12-year rule by the party, which never had a majority inCongress and was unable to push through reforms. "Nothing has improved since the PAN got in," said MexicoCity plumber Raimundo Salazar, 44. "The PRI understands howthings work here. And it knows how to manage the drug gangs." FINANCES UNDER STRAIN Lopez Obrador said on Sunday night it was too early toconcede defeat, but Calderon and U.S. President Barack Obamahave already congratulated Pena Nieto on his triumph. The U.S. State Department said it expected close cooperationagainst organized crime to continue under Pena Nieto. Pena Nieto will take over at a time when Mexico's financesare in good order and the economy is improving, although itstill cannot generate enough jobs for the growing population. The election result helped bolster Mexico's main share index early on Monday before weak global manufacturing data hitstocks and the peso currency . Lopez Obrador could still choose to challenge the election,as he did six years ago when he narrowly lost to Calderon andlaunched months of protests, alleging fraud. He has said in recent weeks this election campaign was alsoplagued with irregularities, raising concerns he might againcall his supporters onto the streets. On Sunday night, he saidonly that he would wait until all the results were in.
* Pena Nieto seeks energy, tax and labor reforms * President-elect's victory margin smaller than forecast * Partial results show PRI may not have majority in Congress By Anahi Rama and Tomas Sarmiento MEXICO CITY, July 2 (Reuters) - Mexican President-electEnrique Pena Nieto pledged on Monday to focus on energy, laborand tax reforms and said he hopes to strike deals with opponentsto help shepherd changes through Congress before he takes officein December. Pena Nieto won Sunday's election with about 38 percent ofthe vote, about 6 percentage points ahead of his nearest rival,returning the Institutional Revolutionary Party (PRI) to powerafter 12 years in opposition. But the victory margin was smaller than expected and resultssuggested the PRI and its Green allies would struggle to win amajority, officials at the electoral authorities told Reuters. That would leave Pena Nieto reliant on other parties to backhis plans to reinvigorate Latin America's No. 2 economy. Speaking to reporters in Mexico City, the 45 year old saidhe was ready to consult with outgoing President Felipe Calderonand bring in experts to make progress on the reforms and helpease them through Congress, which reconvenes in September. His main reform proposals include allowing more privateinvestment in Mexico's state-run oil industry, overhauling thetax system to improve government revenues and liberalizing thecountry's labor laws to encourage job creation. "We will now be working on all these initiatives with publicpolicy experts," Pena Nieto told a news conference. Calderon's conservative National Action Party (PAN) hadtried to get similar reforms through Congress over the past sixyears but the efforts were thwarted by opposition from the PRI,which has both populist and pro-business leanings. Victor Garcia, a 51-year-old graphic designer in MexicoCity, said the PRI's failure to win a majority was a blow forthe presidency and would stymie economic reform. "All the parties just work to their own advantage," he said."And the president doesn't give orders to anyone any more." Pena Nieto has promised to lift economic growth to about 6percent a year, create jobs and draw the heat out of a war withdrug gangs that bogged down Calderon's administration. Theconflict has killed more than 55,000 people since late 2006. Long regarded as corrupt and authoritarian, the PRI hasbounced back under the youthful Pena Nieto, who has vowed tobreak with the party's checkered past. He has sought to bring in new blood to the party, and PenaNieto said his campaign chief, Luis Videgaray, 43, would formpart of his government team. Videgaray is well regarded byinvestors and seen as a possible choice for finance minister. But the party is still deeply resented by many Mexicans. "Yes, the PRI has experience. They know how to steal. Theyknow how to make pacts with drug cartels. And they know how tokill," said Heliodoro Maciel, an electrician and trade unionist. Final opinion polls before the election had shown Pena Nietowinning by 10 to 15 percentage points, but with 97 percent ofreturns in, the gap to his leftist rival, Andres Manuel LopezObrador, was 6.4 points, or roughly 3 million votes. PAN candidate Josefina Vazquez Mota came in a distant thirdas the PAN suffered a crushing defeat, hurt by Calderon'sfailure to ramp up growth and curb the drug war violence. The PAN raised high hopes when it was elected in 2000, butthe economy underperformed its peers in Latin America for mostof the 12-year rule by the party, which never had a majority inCongress and was unable to push through reforms. "Nothing has improved since the PAN got in," said MexicoCity plumber Raimundo Salazar, 44. "The PRI understands howthings work here. And it knows how to manage the drug gangs." FINANCES UNDER STRAIN Lopez Obrador said on Sunday night it was too early toconcede defeat, but Calderon and U.S. President Barack Obamahave already congratulated Pena Nieto on his triumph. The U.S. State Department said it expected close cooperationagainst organized crime to continue under Pena Nieto. Pena Nieto will take over at a time when Mexico's financesare in good order and the economy is improving, although itstill cannot generate enough jobs for the growing population. The election result helped bolster Mexico's main share index early on Monday before weak global manufacturing data hitstocks and the peso currency . Lopez Obrador could still choose to challenge the election,as he did six years ago when he narrowly lost to Calderon andlaunched months of protests, alleging fraud. He has said in recent weeks this election campaign was alsoplagued with irregularities, raising concerns he might againcall his supporters onto the streets. On Sunday night, he saidonly that he would wait until all the results were in.
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