“A stabilization program is needed that includes structural reforms”, said Dal Poggeto, who was applauded by businessmen in the auditorium of the Sheraton hotel in Mar del Plata. Another of her phrases resonated strongly: “We have to agree on what to spend. We want the taxes of Paraguay with the expenditure of Sweden, and having the productivity of Zambia”.
“The fiscal rules started with Néstor Kirchner; with Lavagna we had a Fiscal Responsibility Law. We need to agree on what spending we want and how we finance it; It is necessary to discuss a stabilization program first, which does not avoid the debate on how we become more competitive. Because stabilization per se doesn’t work. The closure does not take you anywhere, ”said the economist.
“Argentina needs a stabilization and growth program”, agreed Redrado, who proposed a “deindexation rule for all public spending, which is accompanied by provincial and municipal budgets.” And he added: “The key is what to do with public spending that today represents almost 40 points of GDP, how do we lower it in the context of the social crisis in the country.”
For the former head of the Central Bank: “Argentine society is experiencing a crisis of confidence that cannot be overcome with a fiscal rule. It needs a vision of shock laws that can turn expectations around, and that are voted with special majorities”. “We have to think of an economic and social program, with an economic stability law that contemplates nominality over time and with deindexation. It must have a term of five years and all those responsible must follow a nominal rule every three months until 2027 to set the expectations of the public sector”, he explained.
“In the last 41 years, we had 18 recessive years, when the region had 8. Along with Venezuela and Libya, the country posted the worst economic performance of the 196 countries monitored by the IMF. The accumulated growth in that period was barely 92%, when in the region it reached 206″, the analyst graphed, while adding that the primary deficit, in those same years, was 1.9 points of GDP, on average. . “The permanent expansive fiscal bias of the economic policy trying to prop up the level of activity frequently unbalances the macro. And the consequence is the creation and increase of taxes throughout the last decades”, said Domecq. And he added, on behalf of IDEA, that “the fiscal order has to be a State policy.”
Lacunza criticized the “opportunist consensus” and called for “conviction” when taking measures, a way of questioning decisions on economic matters made before temporary situations. And he referred to the fiscal consensus of 2017 launched by the government of Mauricio Macri: “These things add up, these rules work when they are in force. They are corrections little by little. But it is not enough, in 2019 there were elections and before the pandemic they suspended the laws. In 2020 it was reversed and a law was passed a month ago that is the opposite of that. Gross Revenue should be zero this year and it was just voted that it can go up. Worse than not having rules is having them and not following them. The deputies are the same and vote the opposite”.
“I am optimistic that the next government can make a regime change. It is not possible to continue with more of the same, it is already vox populi, there is a social demand for change. Slogans like ‘more State’ are no longer useful: we duplicated it and welfare did not rise. You cannot collect 30 and spend 40″, said Lacunza already in an electoral key. In fact, the former minister is working on putting together an economic plan for Horacio Rodríguez Larreta.
Source: Ambito
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