The effects of the wrong decisions of the AMLO administration are already quite noticeable: said Gustavo A. de Hoyos Walther, Coparmex president.
“If the federal government do not begin to establish a long-term strategic vision, with high added value investments and not just one man’s whims, the consequences can be disastrous”, the president of Coparmex warned.
The Employers’ Confederation of the Mexican Republic (Confederación Patronal Mexicana: Coparmex) called on the federal government to get its act straight, since “the negative impacts of the wrong and unplanned investment decisions” are already beginning to be noticed.
In a statement, the Coparmex president stated that both Fitch Ratings and Moody’s, recognized international financial agencies, downgraded the ratings of Petróleos Mexicanos (Pemex) and the Federal Electricity Commission for the first time in 10 years.
Gustavo A. de Hoyos Walther pointed out that investing Mexican resources correctly in order to encourage economic growth is the responsibility of the Mexican State, and if it does not begin to have a long-term strategic vision, make investments of high added value and not whims, the consequences may be disastrous.
“Government investment decisions are not tied to basic technical standards and their obsession with investing in a refinery has no environmental or economic support. The idea of supporting Pemex financially is not viable, ” the statement added.
After mentioning that the national economy had a contraction of 0.2 percent in the first quarter of 2019, the leader of Coparmex said that investors don’t rely on the country anymore, as they have notices the highly erratic decisions taken by the Mexican government.
On the other hand, he pointed out, “cuts in government employment have reduced consumption capacity. The main driver of the economy, the generation of formal employment is registering alarmingly low levels. During the first four months of this year, only 300 thousand jobs have been created throughout the country, the lowest figure in the last six years.”
Es el momento de que el @GobiernoMX corrija el rumbo y mejore el proceso en la toma de decisiones de inversión. El equilibrio fiscal sin crecimiento es insuficiente. Sobre ello la #SeñalCoparmex de la semana https://t.co/cfCNUIMPqb
— Coparmex Nacional (@Coparmex) 17 de junio de 2019
In this context, the Coparmex called for common sense and to improve the decision making of public policy.
“The financial sustainability of the country must be sought by spending efficiently, seeking the highest economic and social returns in each investment. The large investment projects need to be attached to the highest technical, environmental and legal standards (which is not the case of the Dos Bocas Refinery, the Santa Lucía Airport and the Maya Train Project), every project needs to have absolute clarity in its execution and financial viability, “he added.
Besides, an energy policy must be promoted according to the global trend, Mexico needs to focus in clean sustainable sources of energy, not in the construction of a refinery that is economically unfeasible.
“Mexico must develop investment projects that give certainty and have as indicators of success their environmental, economic and social profitability,” Gustavo A. de Hoyos Walther, leader of Coparmex concluded.