Salinas tackled Mexico's fiscal and political challenges in the late 1980s through a series of economic reforms. He implemented privatization of state-owned enterprises, reduced government spending, and opened up the economy to foreign investment. Salinas also negotiated the North American Free Trade Agreement (NAFTA), which helped to boost Mexico's economy. Additionally, he implemented political reforms, including electoral reform and the establishment of an independent electoral commission. These measures helped to stabilize Mexico's economy and strengthen its democratic institutions.