A year ago this week Mexico seemed to be on the edge of political chaos when, in a disputed presidential election, the conservative candidate won by the narrowest of margins. But the spectre of instability has faded and in office President Felipe Calderón is governing his country with a sure touch.

Proposed changes to the tax system announced last week would - if approved by legislators - provide much-needed resources for extra spending on social welfare and infrastructure. Together with new public pension rules introduced in March, the economic reforms are Mexico's most important for more than a decade.