Legislators Must Abandon Political Motives In Fiscal Reform: CEESP.

MEXICO CITY, Nov 13, 2001

As Mexico's legislators continue to show no signs of consensus on fiscal reform, "It is necessary to leave behind positions related to short-term political costs, and begin to think about collective benefits," said the Center for Economic Studies of the Private Sector (CEESP). As long as discussions about fiscal reform continue, uncertainty will remain in the economy and markets, said the CEESP in its weekly report. The federal government's recently announced third cut in budgeted spending is a demonstration of Mexico's fiscal imbalance, reported Mexico City daily el Economista. The government's dependence on oil revenues is demonstrating its weakness, as crude prices decline, said the CEESP. "The fact of depending on this volatile source of resources doesn't benefit the possibility of achieving healthy public finances in the short term," it said.

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