Controversial overhaul of Mexican courts approved by lower house lawmakers

By Cassandra Garrison and Diego Oré

MEXICO CITY (Reuters) -Mexico's lower house of Congress approved an overhaul of the country's judiciary early on Wednesday that would usher in a new era of elections for all judges, in a vote cheered by the ruling party but seen as a dangerous experiment by the opposition.

The overwhelming vote of approval by lawmakers paves the way for the constitutional reform to go to the Senate, where debate is expected to begin next Wednesday.

While the ruling coalition is also expected to approve the proposal in the upper chamber, the vote there could be closer.

"We've achieved a civic feat," said a triumphant Ricardo Monreal, lower house leader for the ruling Morena party shortly after the bill's approval.

"Without arrogance and without excessive attitudes, we can say that we have fulfilled our promise to the people."

The overhaul is expected to be enacted later in September, during the final month of outgoing President Andres Manuel Lopez Obrador's term in office. The leftist leader has often railed at what he calls corruption among top judges.

After a marathon overnight session in the lower house that began late on Tuesday night, the bill's passage marks a crucial step toward cementing the popular Lopez Obrador's final legislative priority.

His leftist Morena ruling party and its allies - which in the lower house hold the two-thirds supermajority required for constitutional reforms - easily approved the bill. It passed on a vote of 357 votes in favor, 130 votes against.

The reform push has led to a strike by judicial workers, strained relations with the United States and generated concern from financial markets, as investors worry about the security of their investments in Mexico under the new system.

Lopez Obrador and his supporters have argued that elected judges will boost accountability and reduce corruption.

The reform also reduces the number of Supreme Court judges to nine from 11, limits their terms to 12 years, and abolishes age restrictions for ministers and magistrates.

Critics have noted the bill will not impact prosecutors or police, which they say are the real culprits of impunity and corruption.

On Tuesday, lawmakers began their session after a six-hour delay as they relocated to a sports complex in Mexico City after striking judicial workers blocked the entrance to the lower house in protest. They argue that the proposed reform would trample on their labor rights.

"They don't want to face the thousands of people who are outside demanding their rights," said opposition lawmaker Maria Josefina Gamboa during the session.

In a rare move, most Supreme Court judges also voted on Tuesday to join the work stoppage.

Mexico's peso has taken a beating since last June's national election saw Morena's Claudia Sheinbaum win the presidency, while the party also secured majorities in Congress.

But on Wednesday, it only dipped slightly by 0.16% immediately after the bill's final large approval.

(Reporting by Cassandra Garrison, Diego Ore and Kylie Madry; Additional reporting by Brendan O'Boyle and Noe Torres; Editing by Angus MacSwan, David Alire Garcia and Sandra Maler)