ZCZC
BCN-03
MEXICO-POLITICS-ECONOMY-FOCUS
Mexico finance minister quits over Lopez Obrador ‘disagreements’
MEXICO CITY, July 10, 2019 (BSS/AFP) – Mexico’s Finance Minister Carlos
Urzua resigned on Tuesday, blasting the government of President Andres Manuel
Lopez Obrador for imposing on the ministry officials “with no knowledge” of
government finances.
Following the news, the stock market in Latin America’s second-largest
economy closed with a loss of 1.77 percent, while the peso fell 1.36 percent
against the US dollar.
“There were too many disagreements in economic matters. Some of those were
because in this administration public policy decisions have been taken
without sufficient substance,” Urzua, a respected economist, said on his
Twitter account.
The 64-year-old also hit out at the “unacceptable hiring of officials with
no knowledge of the Public Treasury.”
“This was caused by influential people in the current government with a
patent conflict of interests,” added Urzua, without naming names.
Lopez Obrador, an anti-establishment figure who came to power last year
vowing a pro-austerity and anti-corruption drive, accepted Urzua’s
resignation.
He appointed Arturo Herrera, the current finance undersecretary, in his
place.
“He (Urzua) doesn’t agree with the decisions we’re taking and we’re
committed to changing the economic policy that was imposed over the last 36
years,” Lopez Obrador said in a video.
Urzua also worked with Lopez Obrador from 2000 to 2003 when he was Mexico
City mayor. He assumed his ministerial role at the start of the leftist
leader’s presidency on December 1.
During his stewardship, the finance ministry was harshly criticized by
various federal agencies for carrying out heavy cuts in public spending.
However, markets and investors were largely supportive of Urzua’s efforts
to balance the public books.
Herrera, who appeared with Lopez Obrador in the video, said that Mexico is
a country of enormous resources but also great contrasts.
“It is precisely in the area of inequalities where we have to work,” said
Herrera.
His appointment must still be approved by Mexico’s Chamber of Deputies,
but that is considered a formality given that Lopez Obrador’s Morena party
has a majority in the legislature.
BSS/AFP/HR/0950