Mexico nears electoral reform, opening door to energy bill

By Dave Graham

MEXICO CITY, Nov 12 (Reuters) - Accused a generation ago of engineering the "perfect dictatorship," Mexico's ruling party is now close to agreeing on a plan that could weaken the presidency and strengthen Congress in order to win votes for a major energy reform.

The Institutional Revolutionary Party (PRI) and its opposition rivals are shortly expected to unveil the blueprint for a reform aimed at giving Congress greater oversight of government and allowing lawmakers to serve consecutive terms.

Billed as a step forward for democracy, the electoral reform is a bargaining chip for President Enrique Pena Nieto's most ambitious plan - changing the constitution to allow more private capital into the state-controlled oil industry.

The energy bill is the central pivot of a broader drive for change from telecoms to education that Pena Nieto hopes will help boost Mexico's economic growth, which has long lagged that of other countries in the region.

Pena Nieto needs two-thirds of the votes in Congress to change the constitution. But the PRI does not even have a majority, making it dependent on help from an opposition keen to cut back the party's long-standing domination of Mexican politics.

Some of the votes needed for the oil reform are likely to come from the conservative National Action Party (PAN) - which has made them conditional on electoral reform passing first.

That is close to becoming reality.

"We've come almost 100 percent of the way," Jose Maria Martinez, PAN deputy leader in the Senate, told Reuters, adding that he expected a preliminary deal on electoral reform this week.

Senior politicians in the PRI, PAN and the leftist Party of the Democratic Revolution (PRD) say they see eye-to-eye on most of the reform and PRI Senate leader Emilio Gamboa told local radio that a bill could be voted on next week.

If approved, it would then go to the lower house, improving the chances of a deal on the energy reform this year.

Political sparring over how much to open up the oil industry, which the left is resisting, has raised doubts about whether Congress can approve an energy reform this year.

Still, Martinez of the PAN said talks on the energy bill had advanced significantly in recent weeks, and Interior Minister Miguel Angel Osorio Chong told Mexican radio on Tuesday he saw "the will" in Congress to pass it this year.

DIRECT RE-ELECTION

The electoral reform seems unlikely to bring about a major change sought by the PAN - a direct run-off between the first and second placed candidates in presidential elections.

"That isn't on the agenda for the PRI at least," said Enrique Burgos, a PRI senator who chairs the committee responsible for constitutional matters in the upper chamber.