Mexico's Ruling Coalition Inches Closer to Supermajority With Senate Flips
Mexico City - President-elect Claudia Sheinbaum announced that Mexico's ruling coalition narrowly missed securing a supermajority in the Senate after two opposition senators switched sides. This development paves the way for a contentious judicial reform that has unsettled markets and strained relations with the U.S. and Canada.
The Morena ruling party, along with its allies, had already secured a supermajority in the lower house for the upcoming congressional session. The recent defection of two senators from the center-left Democratic Revolution Party (PRD) to Morena further strengthens their position.
Despite the positive news for the ruling coalition, the Mexican peso saw a modest 0.36% increase against the U.S. dollar following the announcement.
With Congress set to convene soon, debates on constitutional reforms proposed by outgoing President Andres Manuel Lopez Obrador, including the controversial judicial system overhaul, are expected to take center stage. The reform, which aims to introduce the popular election of judges, has sparked concerns among investors and foreign embassies.
Supporters argue that the reform will enhance democracy and address shortcomings in the current judicial system, while critics warn of potential power imbalances and increased susceptibility to external influences.
**Analysis:**
- Mexico's ruling coalition is on the brink of securing a supermajority in the Senate, which could have significant implications for the country's legislative landscape.
- The potential judicial reform, including the popular election of judges, has divided opinions among stakeholders, leading to market uncertainties and diplomatic tensions.
- Investors should closely monitor the upcoming congressional session and debates on constitutional reforms to assess the impact on Mexico's political stability and economic outlook.