Fallout in Mexico from Trump’s visit: The finance minister who negotiated it paid the price

Special to WorldTribune.com

By Allan Wall, MexiData.info

In the aftermath of the controversial visit of Donald Trump to Mexico, Finance Minister Luis Videgaray, Mexican President Enrique Peña Nieto’s closest adviser, lost his cabinet position.

The change was announced by President Peña Nieto at a press conference on Sept. 7, a week after the appearance by Trump in Mexico City which was strongly attacked.

President Enrique Peña Nieto accepts the resignation of Finance Minister Luis Videgaray following Donald Trump’s visit. Edgard Garrido / Reuters
President Enrique Peña Nieto accepts the resignation of Finance Minister Luis Videgaray following Donald Trump’s visit. Edgard Garrido / Reuters

Officially, Mexican Finance Minister Luis Videgaray resigned, and no reason was given for it in the press conference. But it’s regarded as resulting from the Trump visit, which was apparently Videgaray’s idea.

Not only was it his idea, but he had been negotiating about it, with Trump son-in-law Jared Kushner, since August.

Apparently though, the Trump thing was the proverbial straw that broke the camel’s back, as there had been rumors about Videgaray leaving for months.

Economic growth is sluggish and the economy even contracted in the second quarter. Videgaray was accused (and later officially cleared) of corruption in the case of the acquisition of property from a government contractor. And there were reported conflicts between Videgaray and other cabinet members.

Jose Antonio Meade, himself a former finance minister, replaces Videgaray.

Luis Videgaray, who has a doctorate in economics from M.I.T., was more than just another cabinet official.

Dr. Videgaray was a longtime ally of Enrique Peña Nieto, having worked for him since 2005, when Peña Nieto obtained the governorship of the central state of Mexico (also called “Edomex”). In Edomex, Videgaray worked on restructuring the state’s debt.

When Peña Nieto ran for president of Mexico, Videgaray ran the campaign.

As described in Newsweek, “Videgaray ran Peña Nieto’s election campaign, and was long regarded as the most powerful Cabinet minister, with a huge influence on policy after orchestrating the country’s landmark energy, telecommunications, tax and education reforms.”

The New York Times described Videgaray as Peña Nieto’s “closest ally and adviser in the cabinet.”

Political analyst Alfonso Zarate went so far as to call Videgaray “the power behind the throne.”

Videgaray was seen as having a promising political future, as a possible candidate for Edomex governor, or even as president of Mexico.

The question now is, how is the embattled Peña Nieto administration going to continue without Videgaray?

The previously-quoted analyst Alfonso Zarate described Videgaray’s resignation as “very painful for the president,” which “leaves the president orphaned.” After all, quoth Zarate, “we all know the enormous influence that he [Videgaray] has.”

Allan Wall, an educator, resided in Mexico for many years. His website is located at http://www.allanwall.info.

Be Sociable, Share!

FACEBOOK Comments

Login To Your FaceBook to Make Comments

You must be logged in to post a comment Login