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Tempers flare as State Congress approves energy reform

State legislatures across the country rushed through votes early this week as the holiday recess neared. The reforms, passed by the federal Congress last week, require the approval of two-thirds of Mexico’s 31 states.

As legislators discussed the polemic bill, police battled with some 300 demonstrators after they smashed windows and tried to storm the Jalisco Congress building in Guadalajara’s Plaza de la Liberacion. Wielding batons and lobbing tear gas canisters into the crowd, they arrested two minors before calm was restored.

According to witnesses, the majority of protestors were supporters of the student anti-government organization Yo Soy 132 and Morena, the political group aligned with left-wing political maverick and former presidential candidate Andres Manuel Lopez Obrador.

Legislators concluded the vote at 2 p.m. (24 in favor, 10 against) but were forced to remain inside the Congress building as protesters had formed a blockade around the exits. They demanded the release of their arrested colleagues before they allowed lawmakers to leave. Meanwhile, police officers cordoned off the inside of the building.

Around midnight, when word reached the demonstrators that the two minors were free, the 30  legislators were bundled into armored vehicles and driven away.

In the days that followed, legislators pointed the blame for the confrontation on Enrique Alfaro, who finished second in last July’s gubernatorial election as the candidate for the fledgling Citizens Movement. Alfaro had urged citizens to go out and protest the reforms, which he calls “traitorous.”  However, Alfaro failed to turn up at the demonstration, presumably deciding to avoid any negative publicity after the violence broke out.

By Monday, 17 of Mexico’s 31 state legislatures had given their approval to the reforms, which were backed by the country’s two main political parties, the ruling Institutional Revolutionary Party (PRI) and the National Action Party (PAN). All that remains is for President Enrique Peña Nieto to sign the bill into law.

The quick decisions taken by the state legislatures were applauded by Peña Nieto, who has made energy reform the linchpin of his program to modernize Mexico’s outdated and dysfunctional institutions.

Most analysts in the United States and other countries have reacted positively to the energy reforms, saying they will significantly boost foreign investment in Mexico, spur economic growth and create jobs.

The passage to an open energy market in Mexico, however, will not be an easy one since the details of secondary legislation – how licenses are to be awarded, who will regulate the sector – are still to be worked out.  Many legal challenges to the reforms can also be expected. In addition, the left-of-center Party of the Democratic Revolution (PRD) has vowed to hold a referendum on the bill in 2015, coinciding with midterm elections.          GR staff

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