...a nice P.R. move that convinces no-one.
Feb. 24 (Bloomberg) -- A year after a widening budget gap made Mexico a laggard in emerging markets, the nation has “solid” finances that shield it from growing investor concern about countries’ ability to service debt, said Deputy Finance Minister Alejandro Werner.
Mexico “frontloaded” budget cuts and tax increases last year while other countries buoyed spending to pull their economies out of recession, Werner said. Mexico’s fiscal measures, aimed in part at limiting credit-rating downgrades, have its markets “behaving correctly” as other governments slip into a “world of sovereign stress,” he said.
“Under this international environment of fiscal laxity and fiscal doubts, our fiscal stance is very solid,” Werner said in an interview at Bloomberg headquarters in New York yesterday. “Looking at what’s going on in Europe today, it looks like a good move.”