In an act with all its main members, and at the foot of the mausoleum that houses the remains of former President Lázaro Cárdenas, PRD presented its energy reform proposal in the voice of one of its traditional leaders, Cuauhtémoc Cárdenas. His speech contained such substance that PRD members will be allowed to position their opposition rhetoric regarding the Constitutional reforms – the greatest taboo that fuels most of its political clients -, as well as to be part of the technical discussion held within Congress, even after the potential approval of President Peña’s energy initiative, while designing the statutory laws. Given the coincidences between PRI and PAN regarding the opening up of the energy sector, the Presidential initiative has broad chances of passing through the various legislative ordeals. On the other hand, the laxity of the Constitution’s modifications – which, concretely, would only make way for an opening of private investment, without specifying how – would turn the process of regulation into the true core of the energy reform. When that happens, PRD will fight its main battle and at the same time, gain its greatest victory.
Regarding the technical and formal discussion, the main points of the PRD initiative deal with giving PEMEX a greater budgetary and administrative autonomy, strengthening regulatory bodies and creating a sovereign fund – all this, without private investment. While addressing the administrative autonomy, it is interesting the proposal to dismiss the Secretary of Finance and the oil union from PEMEX Administrative Council. This takes inspiration from a different perspective of the company, which would no longer be seen as the “cash register” of public finances, in the case of the tax authorities, and counter the inefficiencies on handling production labor factors from within the union. Other matters, such as the proposal of ratifying counselors from the Senate, could be more questionable. The obsession of submitting executive decisions to legislative approval has the risk, in this particular aspect, of politically complicating a decision that is more related to economic efficiency matters.
Another highlight of the PRD initiative is the creation of a “sovereign fund” – a long-term intervention mechanism created from the remnants of oil revenues and was theoretically designed to address future contingencies in matters such as pension schemes, social security, health and education – as well as the strengthening of regulatory bodies; both are proposals that concur with the project presented by PAN a few weeks ago. Regarding the content, even though the Secretary of Finance has stated that its conceptualization is not necessary due to the existence of the Stabilization Fund of Oil Revenues, it is worth remembering that, within its operational rules, this is a short-term tool, designed to reduce its effect on public finances due to drops in hydrocarbon price or movements on exchange rates.
When reviewing the PRD proposal it is important to state that several of its initiatives are not against opening up the sector, they would also be essential when complementing it and, that way, obtaining a better reform. It is true. Perhaps, the moderate leftwing currently represented in PRD is still struggling with more belligerent and intransigent sectors, regardless that some members of that political ideology are now out of the party. This handicap may be nourishing the PRD fear of losing political clients in case it assumes a responsible stance within national debates. Negotiating points of view is the more viable way in order for them to materialize. By contrast, stubbornness is a painful tool used for political suicide.
The panorama is not only becoming clearer, but is also progressing. The question is whether the obstinacy to leave the government proposal without any changes will triumph or whether the opportunity of uniting all political forces (an unusual, if not inexistent, idea) will succeed.
CIDAC
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