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Mexico City – Newly sworn-in president Felipe Calderon decreed a 10 percent pay cut for himself and his cabinet on Sunday, co-opting a central campaign promise of the leftist rival he beat by a razor-thin margin.

Calderon said in a televised speech that he would also slash government spending on everything from cell phone calls to foreign trips and increase disclosure to avoid corruption.

“We will account for every peso that citizens have given to the government,” Calderon said. “Transparency and accountability is the responsibility of every democratic government.” Calderon said the spending cuts he signed in the decree Sunday would save about US$2.5 billion (euro1.9 billion) in the next year, or enough to build 2,500 schools. He also promised to send a government spending bill to Congress that makes long-term savings.

Mexico’s elected officials are among the highest paid in the world. Fox’s salary was about US$245,000 (euro185,000) in 2006. The full details of Calderon’s 2007 salary have not been publicly released.

A career politician from the conservative National Action Party, or PAN, Calderon beat leftist Andres Manuel Lopez Obrador by less than 1 percent in July’s fiercely fought election.

Lopez Obrador, an austere-living widower who drives a Nissan economy car, had promised to slash salaries of Mexico’s top officials and improve the lives of the 50 million Mexicans living in poverty.

Calderon focused his campaign on law and order and job creation while accusing his rival of being an extremist who would plunge Mexico into crisis.

Lopez Obrador claims Calderon conspired with outgoing president Fox to rig the election and named himself Mexico’s legitimate president in a ceremony last month. On Friday, leftist lawmakers brawled with PAN rivals in an unsuccessful bid to block Calderon’s inauguration while Lopez Obrador led thousands of his followers in a street protest.

Calderon has promised to unify the divided nation and adopt some leftist proposals like that he decreed on Sunday. However, he also has signaled he may take a tougher line on leftist protests than the outgoing Vicente Fox who was keen to avoid confrontation.

On Saturday, Calderon said the military would not be affected by his austerity measures and pledged to substantially raise the wages of Mexico’s armed forces, calling them a crucial weapon against heavily armed drug gangs terrorizing the nation.

Mexico’s military plays little role in international conflicts and instead is used mainly against drug traffickers, leftist guerrilla groups and natural disasters.

Also Saturday, Calderon named economist and former Energy Secretary Jesus Reyes Heroles to take over the helm at state oil monopoly Petroleos Mexicanos, or Pemex. Reyes Heroles, who will replace Luis Ramirez Corzo at Pemex, was Mexican ambassador to the U.S. from 1997 to 2000 and energy secretary from 1995 to 1997 under former President Ernesto Zedillo.

On Sunday, Calderon named Sergio Vela Martinez as the new head of Mexico’s National Arts and Culture Council and former soccer star Carlos Hermosillo as the head of the National Sports Council.

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