Critical Issues
Background:
The results from the last midterm congressional elections indicate that the National Action Party (PAN) has lost political bargaining power. Since the Institutional Revolutionary Party (PRI) now holds the relative majority in the lower house, which has shown interest in reforms, the future of structural changes to avoid a credit downgrade is still positive but uncertain. Amid the recent escalation of drug-related violence and killings, President Felipe Calderon's administration has been strongly criticised for deploying military forces to troubled border-city Juarez as human rights concerns mount over military actions in the city. In the meantime, the U.S. began some steps for a broader collaboration with the Mexician government, signaling recognition that drug-related violence is not a problem for Mexico alone. It is estimated that drung gangs earn profits around US$30 billion annually and the violence involved shaves off 1.2% from the economy annually as recognized by Finance Minister Ernesto Cordero
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