The Day at a Glance | March 29 2021

The Top

*AMLO sends a bill to modify the Hydrocarbons Law, which would give PEMEX more control over the local gasoline market.

*Biden will present a long-term economic plan on Wednesday.

*The Eurozone`s recovery strongly depends on maintaining fiscal stimuli: ECB.

*Italy revises its growth estimate downwards from 6% to 4.1% in 2021.

*COVID-19 cases increase for a fifth consecutive week at a global level.

Economic environment

Mexico`s President, Andrés Manuel López Obrador, sent a draft law to Congress on Friday in order to modify the Hydrocarbons Law. The bill seeks to continue the Executive power`s efforts to scale back the energy sector`s opening in 2013. The initiative seeks to give PEMEX more control over the distribution, import and marketing of gasolines in the country in addition to allowing private companies being suspended under the allegedly imminent risks to national or energy security. PEMEX will have the power to take over companies` facilities whose clearances have been suspended, which has raised criticism for possible expropriation practices. The bill will be discussed this week in the Chamber of Deputies. The President will seek to back PEMEX, which has lost market share in the gasolines and diesel markets to private competitors since the implementation of the energy reform bill in 2013-2014. This is the administration`s second attempt to scale back the energy reform bill as a similar law was approved in the electric sector in recent weeks. This could continue to deteriorate investor confidence in the energy sector and puts mid-term elections on center stage. If Morena achieves maintaining or gaining control over majority in Congress in June`s elections, the President`s initiatives to close the energy sector and give back monopolies to PEMEX and the CFE will surely occur.