President López Obrador announced yesterday that the economic program he will present on Sunday will be focused on creating jobs, writes Enrique Galván in La Jornada.
The newspapers of national circulation present opinions and editorials with relevant information and reports on economic matters.
Money, by Enrique Galván, in The Day:
AMLO will present its program to create jobs
Yesterday at noon the verified number of patients with the spread of the coronavirus reached the world in a million and at the same time the number of unemployed people grew by millions. Approximately 10 million in the United States have applied for their unemployment insurance. In France, 4 million did the same in the past two weeks. In Spain, 800,000 were unemployed last month, according to estimates by the Financial Times. In the UK, nearly a million have applied for universal credit, a state benefits scheme, while in Ireland, approximately 34,000 companies have enrolled in a government wage subsidy program in less than a week.
In Mexico, the most recent IMSS report indicates that it had registered 20 million 613 thousand 536 formal jobs, between permanent and temporary. It also provides services to affiliates of social programs such as Youth Building the Future. President López Obrador announced yesterday that the economic program he will present on Sunday will be focused on creating jobs. Aid will go to the neediest in the country, not tycoons, as has happened in other crises, he said.
Captains in Reform:
From home or in alternate offices, with everything and a pandemic, Mexico’s international negotiations continue on at least three tracks. Although Covid-19 has complicated economic activities in the world, the foreign trade area of the Ministry of Economy, led by Luz María de la Mora, continues conversations with its peers in other countries, as they are still pending.
On one track, Mexico and its partners continue with the implementation work (revision of rules or norms to add new concepts) so that the Treaty between Mexico, the United States and Canada (TMEC) can enter into force. Although there has been talk of postponing its start, it still has a date of June 2020. On another track, negotiations for the modernization of the Treaty between the European Union and Mexico (TLCUEM) also continue. And, finally, we inform you that the talks of a possible Free Trade Agreement with Ecuador have not stopped.
Coordinates, by Enrique Quintana, in The financial:
The ‘Fobaproa syndrome’
President Andrés Manuel López Obrador will announce next Sunday his plan to reactivate the economy in the context of the coronavirus pandemic. There is much expectation among entrepreneurs, and among people in general there are doubts about the content of this proposal. I may be wrong, but if you are waiting for a big change in economic policy to face the crisis we are facing, it seems to me that you will be disappointed.
There is something that we could call the Fo Fobaproa syndrome ’. López Obrador was left with the image, partially true, that that financial rescue program helped people and companies that had resources and did not need it, generating great fraud. In contrast, there was no program of these dimensions that addressed the needs of the most vulnerable social groups.
The Fourth Transformation, by Darío Celis, in The financial:
They isolate mining
Mining is one of the sectors that cannot stop its operation due to the coronavirus health emergency, due to its importance for the national economy. However, in the list of non-essential activities referred to a few days ago by Foreign Minister Marcelo Ebrard, this important sector appears, without so far the error has been amended.
And it is a mistake because its paralysis would be catastrophic, since it generates 2.6 million direct and indirect jobs in the country, and with metallurgy it represents 3% of the National Gross Domestic Product. It is a transversal activity that, if it ceases, would mean the paralysis of complete industrial chains. Its paralysis would imply dry braking of essential raw materials for the automotive, oil, construction, steel, capital goods, shipping and aeronautics, to name a few.
Caja Fuerte, by Luis Miguel González, in The Economist:
How many jobs will be lost to the coronavirus?
There will be 25 million worldwide, the International Labor Organization projected in mid-March. It seemed pessimistic then, because it implies 3 million more than the 22 million lost in the 2009 crisis. In light of recent data, it sounds almost optimistic. In the United States, 10 million people have applied for unemployment benefits in the past two weeks. This figure shatters previous records. In 1980 the maximum reached was 695,000 in one week. During the 2009 crisis the worst week was 655,000.
In France, there are 4 million in the same period; in Britain, 1 million. In Spain there were 833,000, with the closing of 122,000 businesses in the month of March. The construction, hospitality, restaurant and retail sectors account for the majority of lost jobs. What will happen in Mexico? The economic effects of the pandemic are already being felt, but it is too early to know the size of the crater that the meteorite will leave.
Names, Names and … Names, by Alberto Aguilar, in The Economist:
Nodal emergency package vs GDP crash and SHCP again short
After Arturo Herrera’s SHCP handed over to Congress the criteria for 2021, now the next step is the package of emergency measures that will be released on Sunday. Although among the experts there is no overwhelming expectation, yesterday the CCE of Carlos Salazar met in the Presidency to push his proposal. Aid of 1% of GDP will be insufficient. There is talk of at least 4 or 5 percent.
The IP’s efforts have everything against it. President Andrés Manuel López Obrador announced that a new Fobaproa will not be replicated with the support. Obviously if the program falls short, the shock of the situation will be stronger and the recovery will last. True, there is no margin in the budget and more items will have to be reallocated to Health. Low-profitability projects such as Dos Bocas, the Maya Train and Santa Lucia should be reprogrammed to support micro-SMEs and the many workers who will be out of work with an unemployment rate that would reach 5.5% by the end of the year.
Business Asset, by José Yuste, in Excelent:
López Obrador and Herrera; IP last attempt
President López Obrador said he does not believe in the treasury estimates, those of the General Criteria for Economic Policy that the Treasury had to deliver by law to the Senate. We had not seen a President point out that he did not think like his own Ministry of Finance, but we understand that it is because of the attempt to generate different expectations of an economy that can go into recession, just like the world.
The entrepreneurs made their last attempt. They went to the National Palace to see a López Obrador. Due to the liquidity problem, for a month without activity, they asked for deferrals of payments, but also fast payment to suppliers of Pemex and CFE, subsistence wages with the government, immediate deductibility, deferring social contributions. The president insisted: the government will not give tax incentives.