 Mr. President, friends, it gives me enormous pleasure to welcome President Enrique Pena Neto back, Neto back to Davos, and it's actually the first time I have the honor to welcome you as the President of Mexico. You were taking office just about 40 months ago, but it's not your first time in Davos. And we had all an opportunity to see you here as one of our young global leaders, and as you see, our young global leaders can really make it. They cannot make it only to the President. They can make also an excellent President, because when I look, Mr. President, what do you have done in just 14 months in terms of reforms? I don't have to mention them all. You will do it yourself, but fiscal reform, educational reform, labor reform, energy reform, and I could go on. It's remarkable. And you are here today to talk about those achievements and also to tell us what is in your mind to make Mexico a great country in terms of economics, but in terms also of its geopolitical situation and positioning. Mr. President, the floor is yours. Thank you very much. If you allow me, I will speak in Spanish, feeling a little bit more comfortable if I do it that way. But I think for all of you that are attending this speech, and I really thank you, there is an opportunity of following my speech with simultaneous translation. Mr. Shuaaf, thank you so much for this great opportunity to be able to share with this auditorium and with those that are attending this meeting of the WF here in Davos. What is happening in Mexico? This is what I want to share with you. I want to talk about my country with great pride, and I want to do it for the first time in this forum, in my character as President of Mexico. This is the fourth time I have the opportunity of being here, and today, now, under this high responsibility, I am able to talk to you about my country. And I want to tell you about our accomplishments and the progress we've made, especially as of our taking office in the federal branch of Mexico. And to do this, I would like to share with you a few items that are relevant. And although they are very well known by some of you, I believe that it's important only to share a few special accents of what Mexico is today. First of all, Mexico is a democratic country. Mexico is a country that, day after day, has been consolidating its democracy. There are not many countries really that can say that in the last 80 years, they've had a democratic peaceful transition of the relay every six years for the presidency of Mexico in an orderly and peaceful fashion. And in Mexico, precisely, we can really be proud and show off, even boast, saying that we're a country with democratic institutions, a democratic society which is diverse and plural that has allowed us to have this period of political stability for 80 years. Mexico is the second economy in Latin America, the 14th in the world. And we are also, we've been building a very important platform so that we can grow economically in the near future. Mexico is a country with great macroeconomics ability that has healthy public finances and perhaps the best way to be able to show this, what I'm saying, is sharing with you two relevant data. First, the debt level of our country is 38.7 percent vis-a-vis the GDP, and it is lower than that of other countries of greater development. A monetary policy which is autonomous, led by the Central Bank of Mexico with full autonomy. And we also have a robust financial system with capitalization levels of about 16.1 percent, undoubtedly, this is over the average of OECD countries or members of the G20. Mexico, I have to tell you, is mainly a young country, therefore, with the opportunity of having a productive plant and economic growth in the following years. The average age of our population is 27 years old, whereas in other countries the average age is considerably higher than this that we have in Mexico, even over 40 or 45 years of age. Mexico is a country that has consolidated as a country, a leader in advanced high-tech manufacturing in the automotive industry, as well as in home appliances, electronics, aerospace industry, where undoubtedly we've been moving forward and we've been able to have a differentiation vis-a-vis other countries, and this has been quite relevant in terms of our capacity. We are a country that, on the other hand, year after year, has prepared, has trained young people so they can incorporate it in the labor market, 100,000 engineers graduate from our universities and technological schools every year. We are a country that's open to the world. We are a country that promotes free trade. We are one of the most open economies open to the world. Of course, we're participating in different free trade agreements, and this allows us to access a market of over 1.1 billion consumers. We have a very broad and vast territory. In fact, we are the 14th largest territory in the world. And Mexico is a country highly committed with the rule of law. Creating conditions for security, legal certainty of people who live in our country and people who see in Mexico an ideal, optimal destination to make their investments prosper. As of this condition that I want to briefly tell you what 2013 was meant for Mexico, 2013, which was practically the first year of management of this administration, with very clear objectives, we defined an agenda, a working agenda that would imply the transformation and the structural changes for our country. As of the recognition that our economy had not been growing sufficiently to trigger the jobs and the opportunities of development for all Mexicans, the average growth of the last 30 years is barely 2.4 percent, insufficient to open more opportunities for youth in our country. That's why we launched an agenda of transformations of structural changes that I will refer to, especially, shared with you very briefly, why did we do those changes. However, before that, I want to recognize the fact that all this has been possible in a climate of political plurality of political diversity in which there is no political party that is hegemonic in Congress and in this plural environment, we've taken a very important step to show that in democracy we can have civility and political maturity and this is what's happening in Mexico. The political forces, the most relevant ones in our country, regardless of the natural differences we might have among us and the government of Mexico, we've been able to establish a consensus on what we needed to change and transform, respecting the optics of each one of us, of course, but always looking for spaces of meeting where we could meet together is to really favor structural changes. This gave way, precisely, to what we've called in Mexico the pact for Mexico, which is the manifest will of the political forces and of the government of Mexico to start changes and transformations in our country to stop postponing any longer the major changes, our institutional scaffolding needed. What happened in 2013? Let me tell you some of the reforms that have already taken place and these are constitutional reforms. Taking the transition, a labor reform to flexibilize the market, to facilitate the incorporation of young men and women in the labor market, a education reform and education reform which was the first one with the greatest consensus to ensure not only educational coverage the country's demanding, which today at the basic education level is quite broad and sufficient. But today our attention is centered on the quality of education and making sure that children, young people are today receiving the necessary tools to be incorporating in an increasingly demanding world of more skills and capabilities to be part of productive life. A telecommunications reform, a sector in which we are seeking to expand the supply of products and services in radio broadcasting, telecommunications to truly favor productivity, competitiveness of the country. A reform for economic competition to inhibit monopolistic practices, especially to favor more competition among the economic agents that would allow citizens and would allow Mexicans to have at their disposal products and services that can compete in terms of their quality and prices. A financial reform. Let me say this is different from the fiscal reform, the financial reform. The purpose of it is to make this even very robust and sound financial system to be able to extend the credit levels for all Mexicans for small, medium-sized businesses for any citizen really, so that they can have access to loans and for them to be cheaper. That's the scope of the financial reform, fostering, incentivizing the financial system and also the institutions of the financial sector so that they can be very creative and thus develop, design products and services that will be competing among them and that will be favoring economic development of our country. A fiscal reform that, yes, which is a reform, the purpose of which has been giving the Mexican state greater financial capacity so that it can attend to social demands, that it can face up to the great challenges it is facing at different levels, security, for instance, infrastructure, health, education and at the same time to have less dependency on oil revenues, at the same time reaching or having a fiscal regime with greater simplicity and especially to incentivize as well the formality of the economy. And finally, at the economic level, an energy reform that approached a very sensitive issue in Mexico that hadn't been touched in the last 50 years, an issue that undoubtedly was according to the demand of Mexico to have greater energy capacity for us to really be able to give greater potential to exploitation of energy resources for the benefit of Mexicans. The energy reform sets forth the ownership of hydrocarbons under the responsibility of the Mexican state and Mexican citizens, but it also sets forth various modalities so that we can explore, exploit and do the refining process of all our oil products and hydrocarbons. This would also make it possible for us to have energy inputs that are cheaper and therefore in our country to be more competitive, especially when we see that the world, the energy geography of the world is modifying and Mexico could not be left behind. Mexico had to modernize and update its legal framework precisely to ensure energy sovereignty and thus be able to have energy inputs that are cheaper, especially above all to commit ourselves and work on the path of generating clean energy, green energy. That's the scope of the energy reform that we were able to accomplish in 2013 and I would not like to leave out my mentioning two very important structural changes that have taken place at the political level. In terms of electoral politics, this reform is the purpose of consolidating our political regime and our democracy even more and also a transparency reform so that all levels of government and the three branches of the Mexican state are obliged to accountability. These are the reforms that have taken place in 2013. This is the structural change of that year and now 2014. This is something that we're going to be implementing various actions, various needs that derive from the structural reforms and that should be implemented of course and they should be taking place precisely so that Mexicans may get benefits, better services as well and greater benefits and French benefits. This is the challenge of my administration for this year, working with efficiency for the implementation of the reforms that were accomplished last year and thus be able to continue with the following stage of various constitutional reforms that have already taken place and from which we're going to have secondary legislation that we are going to be occupying our time with. This is the way I want to conclude. This very brief, I hope it was brief, my brief intervention, the introductory remarks saying that Mexico is a country that's moving, a country that's going through a transformation in democracy. We are a democratic country and increasingly democratic and that democracy in Mexico has given us the necessary space within a climate of political maturity for us to move and transform Mexico and we are ready, we are ready and prepared to really face up to the challenges of this 21st century to be at par, those challenges and especially for Mexico to move forward, for Mexico to excel, for Mexico to have economic development for the generation of jobs and social development and really the opportunities to be there and for those opportunities to be extended throughout the national territory and for us to have better conditions for all Mexicans. Thank you. Thank you so much for this opportunity. You've given me to talk to you about Mexico and I would like to invite each and every one of you and many of you know our reality and those that don't know our reality for you to go to Mexico and live this experience for you to really get to know our country and really can see that what I have said today is really what is happening in the country. Mexico has so much to offer the world. Thank you. President, thank you. You just mentioned at the end as a secondary way of legislations. Could you just enumerate to us for us three key priorities in this respect? Thank you, Mr. Schwab. The reforms I've mentioned fundamentally have a constitutional character, obviously. We have the secondary legislations coming from them in terms of style communications also in economic competition and in energy. Let me give you an example of what I'm saying. The energy reform will mean that we are now going to have an energy regulating body to implement whatever is necessary for us to really be able to do the first project with the participation of the private sector that will be a reality at the end of this year. And changing the corporate regime of the state-owned company of Bemex to make it more productive, more competitive. And obviously in terms of having the capacity to be able to compete and develop its mandate and capacity in a more efficient fashion. Those are some of the adjustments. This is all part of the reforms of secondary character that we're going to be implementing this year. And well, next February, we're going to be starting a new legislative period in Mexico undoubtedly. In Congress they will have to pay attention to many of these reforms and the secondary legislation as well. They have to start working on this. Mr. President, despite all those good news which you shared with us and the reform process, Mexico still faces negative media reports related to the security and drug situation in your country. In this respect, what are your plans? How can we remove this burden from Mexico? Thank you for asking me this question. I cannot but mention something that really speaks about Mexico in recent years, insecurity. This is the type of projection we've had. It's not only the case with Mexico. This is not only for a specific region. We're not the only ones facing challenges of insecurity. I'm referring to all the Latin American region. The levels of insecurity that many countries are facing in this region have been accentuating and Mexico is also facing its own challenges, of course. And I've said from the beginning of my administration that it is a true priority for my government to be able to recover for all Mexicans the Mexico of peace and tranquility. We've set, we've started implementing a strategy with different components. Let me just refer to the need of having a new system, a new institution, police institutions that are more professional with more equipment that will be responding to a single command. This is a new criminal justice system that we've been implementing gradually and the deadline is 2016 to go fully into a new criminal justice system, which will be the oral system. And undoubtedly this will facilitate our being able to have an agile and fair enforcement of justice in Mexico for us to do away from impunity so that we can start fighting impunity through this new criminal system. And as of the political reform, one of the structural reforms we've implemented, we have to have a general prosecutor's office with autonomy, which will also give greater capacity to fight organized crime and the commission of any crime, our offense. There's a challenge here, of course. There's a big challenge we're facing. We know this and we're implementing a strategy for this. Okay, I can tell you that without it sounding like an affirmation, which is triumphalist, we can see after a year, two months of my taking office, we can see that progress has been made. There's been a real reduction in the number of intentional homicides in our country and a reduction of practically 30 percent of intentional homicides that are linked to organized crime, which is quite encouraging, of course, but we still have so much to do, long ways to go, to ensure conditions of tranquility in security Mexico's demanding. In the last weeks, we had particularly reports about the self-defense groups and how to be integrated into your security mechanism or not integrated. Would you care to say some words about that? This is a topic. I'm so glad you're mentioning it because this is part of the extended answer I wanted to include in my answer regarding security. Now in terms of security, the policy we're following here is that we've regionalized the way we look into the problem of insecurity to look into the very specific problem of the different regions and entities in our country. The well-known case, especially recently, the case of Michoacán, in which we've had the presence of self-defense, that's what they call themselves, vigilante groups, and they're organized to defend themselves from the incursion of organized crime. In the face of the situation, the state has reacted. First of all, convening all those that genuinely want to participate in the tasks of security so that they can do it according to the principles and the formality set forth by our legislation so that they comply with all the requirements to be part of the security bodies. And then on the other hand, the federal government is now fully going into the municipalities of the state of Michoacán where there's institutional weakness, where the public security bodies at the municipal level were weakened or some co-opted by the organized crime gangs. Right now in those municipalities, the federal government there is in charge of public security in those municipalities. In the meantime, we're post-working in the creation of new police bodies with capacity and professionalism that may render the service. We've had success stories in which this has happened and this speaks about very encouraging results. Now, in entities and cities who in the recent past had figures of insecurity that were quite alarming, but today it's a different reality. Ciudad Juarez in the state of Chihuahua, Case in Point, Monterey in Nuevo León, another Case in Point, just to give you the names of some cities that you might know where evidently there has been a very sensitive reduction of the levels of violence and a greater professionalization of the police bodies that are rendering services for the security of citizens who live in those places. This is what we're doing in Michoacán and this is also part of the strategy which is quite focalized to ensure conditions of tranquility and peace for everyone, for all Mexicans. Mr. President, we are very successful in creating a pact for Mexico and to push those reforms. Now, what if you would summarize because your learnings may be applicable to other countries? If you would have to give three advices, learnings out of your own experience, what would those be? I think every country faces its own conditions and, as of that point, its own challenges. I believe that the experience of Mexico deserves to be shared and, as of that point, each one of you may be able to get your own definitions and criteria. Mexico, as I pointed out, is a country that has consolidated democratically with great political stability and social stability in the last 80 years. And within the framework of this plurality, it has been able to have a space of agreements and dialogues, thanks to the maturity and sensitivity of the different political forces that were convened, and they were all protagonists of what I was explaining a few minutes ago, the pact for Mexico, or has been the pact for Mexico as you have said, sir. This agreement, this accord, has been precisely the space, not for negotiation, rather for a dialogue, a permanent, constant dialogue that allowed us to define an agenda of what we see the country needs. And on that agenda, that's how we've been working. This is the experience of Mexico, and I hope that it may inspire and that it may generate references, benchmarks, to implement structural adjustments to attend to the challenges of a new century. I could summarize this saying that Mexico is a country in movement in motion. Mexico is a country that's taking steps for its internal domestic transformation to become more dynamic and thus be able, at par, and the possibility of inserting itself in a place of high demand of great competition and competitiveness. Mexico does not want to be left behind. Mexico wants to be an important part, an important factor, a relevant protagonist of this world transformation, and we are implementing the necessary adjustments for us to incorporate in this manner in a very efficient fashion to give all Mexicans greater benefits and greater opportunities for all citizens. I think it needs also, in addition to the other elements which you incorporate, it needs vision, dedication and courage. Thank you very much for joining us, and we are looking forward to welcome you back to hear about further progress. Thank you. Thank you so much, Mr. Schrupp. Thank you, everyone, for coming here. Thank you for giving me this opportunity to come here and talk to you about Mexico. Good afternoon.