'Check' on public finances
President López Obrador is set to propose a reform to ensure minimum wage increases align with inflation and that retirees receive their last full salary as a pension to avoid a crisis.
In recent days, since announcing his intent on January 7 in Veracruz to 'review the labor counter-reform of Zedillo, the one concerning pensions', President López Obrador has begun outlining ideas for a reform initiative he plans to send to Congress on February 5. During his morning press conference, he stated that the aim is to amend Article 123 of the Constitution to establish that the minimum wage should increase at least in accordance with inflation, and that retirees should receive their final full salary as a pension to prevent a crisis.
López Obrador emphasized the proposal's intent to provide reassurance to both employers and employees, particularly aiming to alleviate any fears among business owners. He asserted that the government would assume a significant portion of the fiscal imbalance created by the reform. Despite his assurances, he did not specify how the government would finance the reform, reinforcing concerns about the practical execution of such promises.
The proposed reforms reflect López Obrador's broader economic strategy, which has often focused on social welfare and worker protections. However, the lack of details regarding the funding mechanism for these reforms raises questions about the sustainability of such initiatives and their long-term impact on Mexico’s public finances, especially as they seek to balance the interests of both workers and businesses.