The Peronist Sergio Massa, who took office this Wednesday (3) as Minister of Economy of Argentina, announced a package of measures to try to reduce the fiscal deficit and the inflation that punishes the country.
Before taking office, Massa was president of the Argentine Chamber of Deputies, and a member of the government coalition Frente de Todos, which led Alberto Fernández and his deputy, Cristina Kirchner, to Casa Rosada.
The new minister stated that the engines of his administration will be investments, production, exports and defense of the Argentine internal market.
According to him, the axes of his economic plan will be fiscal planning, trade surplus, strengthening the country’s reserves and inclusive development. According to him, Argentina will meet the target of 2.5% of primary deficit that was established in the budget.
Massa’s strategy will be to “thicken” the Central Bank’s dollars, by advancing exports from sectors such as agro-industry, fishing and mining, and reducing spending, by freezing state contracts and cutting electrical, gas and electricity subsidies. water for economically non-vulnerable sectors.
The plan includes greater control over the use of dollars for imports, including legal proceedings against companies that overprice imported products purchased at the official dollar value, and the use of government aid, which will be audited.
The new minister, who seeks to win the confidence of the markets, criticized those who speculated on the Argentine debt and affirmed that the country complies with its obligations. Massa also proposed a voluntary exchange of debt maturities in pesos over the next 90 days, which, according to him, has already generated 60% of adhesion commitments.
In his speech, the new Argentine minister stated that “inflation is a factory of poverty” and one of the country’s main problems. In June, the accumulated inflation of the last 12 months in Argentina reached 64%, and that of the first semester rose to 36%.
For Massa, the inflationary crisis should be even more difficult in July and August, but the measures will reduce prices for the rest of the year.
With the instability generated by the unexpected resignation of Martín Guzmán, at the beginning of the month, and by the distrust of the financial market in the then Minister Silvina Batakis, the parallel dollar, not controlled by the government, soared from 239 to 350 pesos and prices rose significantly in the country. .
With the announcement of Batakis’ departure, the parallel dollar dropped to less than 300 pesos, however, for the economic consultant LCG, inflation in June was around 8%, and the year 2022 should close with an accumulated price hike. of 92%.
In recent weeks, Argentina has seen a wave of protests from social organizations, who complain about the serious economic situation, and ask for more government aid in the face of increasing poverty.
After taking office on Wednesday, Massa said he would bolster pensions and use state resources as part of wages to turn social programs into work.
The country risk, the devaluation of the peso and the value of Argentine bonds improved slightly last week, after the appointment of Massa, who has dialogue with businessmen and agribusiness.
Argentines, however, are dealing with disbelief in the face of a sense of permanent crisis that does not seem close to being resolved.
Argentines kick and punch new minister’s car
Although the site of the pass did not register mass demonstrations this week, a small group of protesters kicked and punched the cars of authorities who were trying to pass through the gates of Casa Rosada to participate in the ceremony.
Among those attacked was Massa’s own car, which was called a “thief” by opposition protesters, as well as other members of Fernández’s government.
Another insult said by the protesters was “turncoat”, since Massa was former president Cristina Kirchner’s chief of staff, with whom he broke up and soon returned to form an electoral alliance, for which he ended up as Minister of Economy.
Source: CNN Brasil
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