Calderon continues to shine

Mexican Senate committees approved the government's 2008 budget revenue bill last week -- and it should have cleared Congress by the time you read this.

This will pave the way for approval of the 2008 budget, probably by the middle of November. Mexican budgets tend to be negotiated in parliament until the last moment. This year's early approval is a testament to President Felipe Calderon's deft handling of deputies from all parties -- all the more impressive given that he was elected last year with virtually no political mandate. In particular, Calderon has used the recent fiscal reform bill to sweeten an initially austere draft budget, and thus largely get his own way in Congress.

Calderon is likely to continue to shine, though further structural reforms -- particularly of the energy sector -- may prove elusive, which will limit the scope for high long-term growth.

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