Mexico: Is Peña Nieto backtracking?
Union thuggery is not news. But the government has not done much to prevent it. Criminal prosecutions for violence are rare. Paralyzing the capital or an important highway often results in negotiations with the government and compromises, reinforcing the behavior.
This is worth noting as Mr. Peña Nieto works his plan of tax increases and higher deficit spending through Congress this week. The package includes new taxes on capital and dividends and progressively higher income-tax rates on earnings above $38,000 annually, with fewer deductions. In 2014, public-sector borrowing requirements as a percentage of gross domestic product are forecast to reach 4.1%, a level not seen in more than a decade.
Mr. Peña Nieto is proud of the tri-party political agreement—dubbed “the pact”—that he won with the center-right and the hard-left in the early days of his government. It is designed to minimize gridlock. But for a president who has pledged to boost productivity, this is more like a suicide pact.
Paco Almaraz had something to say (in Spanish) about protesting-teacher burnout,