Mexican president-elect slashes his own salary

Mexican President-elected Andres Manuel Lopez Obrador. (REUTERS)
Updated 16 July 2018
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Mexican president-elect slashes his own salary

  • Mexico ranks 135 out of 180 countries in Transparency International’s 2017 Corruption Perception Index, with higher numbers indicating higher levels of corruption
  • Lopez Obrador said he’d like to reduce his salary even further

MEXICO CITY: Mexican President-elect Andres Manuel Lopez Obrador said Sunday he plans to earn less than half of what his predecessor makes when he takes office in December as part of an austerity push in government.
“What we want is for the budget to reach everybody,” he told reporters in front of his campaign headquarters.
Glancing at a piece of paper with numbers on it, Lopez Obrador said he will take home 108,000 pesos a month, which is $5,707 at current exchange rates, and that no public official will be able to earn more than the president during his six-year term. The transition team calculates that current Mexican President Enrique Pena Nieto makes 270,000 pesos a month.
Lopez Obrador said he’d like to reduce his salary even further, but that he doesn’t want to cause resentment among future Cabinet members who are in some cases leaving private sector positions and academic posts that pay more than the new ceiling for public officials.
He reiterated campaign promises to cut back on taxpayer funded perks for high-level government officials, such as chauffeurs, bodyguards and private medical insurance. The official presidential residence will become a cultural center and ex-presidents will no longer receive pensions, he said.
At the same time, he doubled down on pledges to stem corruption. Mexico ranks 135 out of 180 countries in Transparency International’s 2017 Corruption Perception Index, with higher numbers indicating higher levels of corruption.
Public officials will have to disclose their assets, he said, and corruption will be considered a serious offense.
Supporters gathered beyond the gates cheered the proposals.
“This is what we need,” said Josefina Arciniega, 57, who earns 12,000 pesos a month as an administrative assistant. “We are fed up.”
Arciniega said she’s tired of low-level public servants asking for bribes and of watching high-ranking officials living in luxury while people like her struggle to pay the bills.
Orlando Alvarado, a chemical engineer standing next to Arciniega, called Lopez Obrador’s proposed presidential salary a dignified wage.
“A lot of Mexican professionals don’t even make 6,000 pesos a month. I’m talking about accountants and doctors,” he said.


UK firms step up preparations for a ‘no-deal’ Brexit as PM Theresa May meets with EU leaders

Updated 26 min 44 sec ago
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UK firms step up preparations for a ‘no-deal’ Brexit as PM Theresa May meets with EU leaders

  • May is meeting EU leaders in Brussels on Thursday in attempt to get support for Brexit delay
  • The Bank of England warned in November that the British economy could shrink by a massive 8 percent

LONDON: UK companies have ratcheted up their preparations for a disorderly “no-deal” Brexit as best they can over the past couple of months, the Bank of England said on Thursday.
With the prospect of a chaotic Brexit potentially eight days away, a survey by the central bank’s agents showed that around 80 percent of companies “judged themselves ready” for such a scenario, in which the country crashes out of the European Union with no deal and no transition to new trading arrangements with the bloc. That’s up from around 50 percent in an equivalent survey in January.
For decades, trading with the rest of the EU has been seamless. A disorderly Brexit could see the return of tariffs and other restrictions on trade with the EU, Britain’s main export destination.
To prepare, some firms have moved jobs and operations to the EU to continue to benefit from its seamless trade. Many have had to learn how to file customs declarations and adjust labels on goods. Exporters of animals are learning about health checks they will need to comply with.
According to the bank’s survey, however, many of those companies preparing for a “no-deal” Brexit said “there were limits to the degree of readiness that was feasible in the face of the range of possible outcomes in that scenario.”
There’s only so much companies can do, for example, to prepare for new tariffs and exchange rate movements.

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Britain appears headed for a “no-deal” Brexit on March 29 if Prime Minister Theresa May fails to win parliamentary support for her withdrawal agreement with the EU.
She is meeting EU leaders in Brussels on Thursday in an attempt to get support for a delay to the country’s departure date to June 30. EU leaders have said a short extension would have to be conditional on her Brexit plan getting parliamentary backing and have indicated they would only be willing to back a delay to May 22, the day before elections to the European Parliament. After two heavy rejections in parliament, there are doubts as to whether she will be able to get parliamentary approval. What would happen next is uncertain.
European leaders, including those from France and Luxembourg, have said any extension will be granted dependent on May's deal passing a third parliamentary vote.
The Bank of England warned in November that the British economy could shrink by a massive 8 percent within months, though Governor Mark Carney has indicated the recession will be less savage, partly because of heightened preparedness.
According to the minutes of the latest meeting of the bank’s nine-member Monetary Policy Committee, at which the main interest rate was kept at 0.75 percent, rate-setters warned “Brexit uncertainties would continue to affect economic activity looking ahead, most notably business investment.”
Brexit uncertainty has dogged the British economy for nearly three years. In 2018, the economy grew by 1.4 percent, its lowest rate since 2012, even during what was then a global upswing. Business investment was down 3.7 percent in the fourth quarter from the year before.
“Business investment had now fallen in each of the past four quarters as uncertainties relating to Brexit had intensified,” the rate-setters said.
The survey showed uncertainty was likely to remain for months, even years, as Britain works out its long-term relationship with the EU. It said around 60 percent of UK firms in February said Brexit was one of their top three uncertainties, compared with 40 percent just after the June 2016 Brexit referendum.
Around 40 percent of firms expect the uncertainty to be resolved only by the end of 2019 and 20 percent anticipate it persisting into 2021 or beyond.