The difficult path of the rule of law
2021 brought not only unexpected things, but also situations that we no longer expected to see again: two banks lost their license and a third, of great importance, will change owners. And although these operations began last year, their repercussions will crystallize during 2022. Last year, we expected to see more financial restructurings and not so many mergers and acquisitions, a change that may well be predicting a deeper transformation. Meanwhile, we are witnessing more activity in courts, which continue to be saturated.
Our energy sector specialists report that, instead of supporting new businesses for a beneficial economic spillover for Mexicans, they are advising companies that already have investments in Mexico and seek to defend their rights acquired in contracts against possible drastic changes in the law and of course immediate changes in policies and regulations.
It was a fact that the Federal Government implemented a policy of suspending oil rounds, cancelling tenders, rounds and energy auctions. Likewise, the freezing of permits to develop clean energy and the issuance of a decree to reform the Electricity Industry Law to grant a predominant role to the Federal Electricity Commission (CFE), which immediately became subject to constitutional controversies.
It is true that the pandemic has brought us much greater awareness at all levels. Globally, corporations have continued to adopt a much deeper awareness of social and environmental responsibility. The wounds that the pandemic continues to inflict on us every day are crystallizing in a new type of productive society, which will replace that of wild capitalism.
Legislators, companies, end consumers, employees, communities, suppliers, investors, customers, shareholders, regulators, media and governments in different parts of the world have a consciousness of responsibility that confronts industrial abuses more firmly.
In Mexico, the controversial point is whether or not to accept the government as the sole governing body and watchdog. As if it were a father, as if it were the State itself, when there is already a mature society, with autonomous institutions, that guarantee limits to abuses, for example, the Federal Economic Competition Commission and COFECE. We believe in and faithfully support the social institution that has bravely opposed attempts at legislation that seek to revive government monopolies in the country's key industries. The world as a whole has already matured towards environmental, social and corporate governance (ESG) compliance. Mexico does not have to be the exception.
The laws of the countries with the largest economies are responding to this call for responsibility. The Constitution and laws of Mexico have also reached a point of progress in this regard. The autonomy of powers is the only guarantee for a State of Law to prevail. Not one of people, no matter how well-intentioned they may be.
