“Energy is one of the main costs in the production process. If we can accelerate the development of the sector, we will be able to lower costs and be more competitive. This will help us deal with external restrictions, to have more exchange stability and to reduce the subsidies”, deepened.
In this sense, he highlighted the Néstor Kirchner gas pipeline as “the most important strategic public works project for the coming years”, which would allow increasing production capacity and investment.
Likewise, the minister affirmed that supporting sectors such as energy will allow the country to have another productive profile and get out of the labyrinth “from above.”
Rates
Regarding rates, Guzmán shared the concern of Salta governor, Gustavo Sáenz, that there is less asymmetry in energy subsidies.
“We worked hard on it. When it is spent on a certain thing in excess, it implies that those resources are not used to invest in what can generate a stronger and more dynamic comparative advantage for Argentina to have better conditions of competitiveness against the world”narrowed down
The role of macroeconomic stability
The official from La Plata explained that his portfolio has two complementary lines so that the country continues on the path of growth with social inclusion. On the one hand, the aforementioned block of productive policies and, on the other, that of macroeconomics.
In a context in which inflation is one of the main, if not the main, macroeconomic problem in the country, the disciple of Joseph Stiglitz went over again that macroeconomic policy has to have a “comprehensive approach”, which includes “a block external, a fiscal block, a monetary block and a complementarity that are the price and income policies”.
In this sense, he insisted on the need to accumulate reserves to guarantee exchange rate stability, to order public accounts but with a countercyclical State role that underpins the recovery, and to generate certainty about the direction of policies to calm expectations.
Parallel, He emphasized the importance of “having our own currency and working whatever is necessary to strengthen it.” Guzmán argued that it is essential to grow the demand for the Argentine peso, since that would allow the Central Bank to expand the money supply in a consistent manner. “If there are no dollars and there are more pesos, in this context that would put pressure on the exchange rate”he explained.
“We need to strengthen the stability that allows us to get out of short-term thoughts in Argentina”sentenced.
Source: Ambito
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