In his presentation, the president presented data and showed that Argentina is going to grow more than 4% this year and, despite the fact that the budget projects 2% for 2023, He expressed confidence that the expansion can be superior.
He emphasized that employment is growing – More than 1,300,000 jobs were created- and that the exports, both industrial and service by the end of the year they would be around 100,000 million dollars. He also noted that there has been a very high level of investment.
The president made a historical review to conclude that his government, despite having suffered two years of pandemic and now facing the consequences of a war, said, “It was Alberto Fernandez” who was able to govern and achieve the aforementioned results.
Previously, the president questioned the candidates with negative, doomsday speeches. Sources from the Casa Rosada indicate that Fernández continues to maintain his aspiration to be re-elected.
selective
A novelty of this meeting was that exclusive lunches were held for the CEOs of the IDEA sponsor companies. Six tables were set up – separate and closed – in which the politicians participated Patricia Bullrich, Facundo Manes Y Javier Milei and the economists Roberto Lavagna, Jorge Neme Y Charles Melconian.
As is often the case, many people signed up to participate in the meals with Melconian and Lavagna. They took place at the Golf Club of Mar del Plata, which closed its restaurant to receive the attendees. The remaining lunches were held on the 12th floor of the Sheraton Hotel, venue of the Colloquium.
Among politicians, the most demanded was Patricia Bullrich. The president of the PRO was emphatic that from the opposition they demand a reduction in public spending, she considered the cut of 1.2% of GDP proposed in the budget project insufficient, but she said that they are going to monitor quarterly the fulfillment of this objective so that the current government does not leave them “an impossible inheritance”.
Another one that aroused particular interest was Robert Lavagna, despite the fact that at the meeting he was in charge of emphasizing that he does not participate in the current government. Pragmatic, the former Economy Minister considered that now the urgency is to recompose the reserves and in this sense considered positive creative measures such as the implementation of the soybean dollar.
He also commented at the meeting broad support that Massa is receiving from international organizations, particularly the IMF. Y raised the need for a balanced fiscal policybut clarified that a program that encourages growth is also required.
baby, Secretary of Planning of the Ministry of Economy, surprised the directors of the companies by rescuing the Army for being the great transformer, in different periods of Argentina. He rescued that ehe first major national project was led by Julio Argentino Roca. The official maintained that he ensured territorial integrity, the nationalization of the federal capital and Argentina’s connection with international trade flows. In this way, he directed Argentina to be the richest and most prosperous country in South America. The second soldier was Juan Domingo Peron in the sense of promoting industrialization and social rights.
The official recalled that these two projects were constituted on certain actors. In the case of Roca, with the governors. Perón, for his part, relied on the unions and the army.
After considering that the army is not currently a decisive actor, he maintained that the businessmen “have a part of the irons”, and proposed that they “instead of giving in to grow, you have to lead to grow and that is not based on an economic formula, but on a social and political alliance”, eliciting applause from the audience.
economic plan
Melconian presented the economic plan that he prepared from the Mediterranean Foundation for the next government. They comment that the economist expressed his willingness to be a minister to apply this plan if he is summoned. Rodolfo Santangelo, Enrique Szewach and Jorge Vasconcelos They are part of the Melconian team. The economist, he is quite critical of Sergio Massa’s management because he believes that the current policy is made up of patches.
Manes, for his part, presented his vision of what public policies should be carried out to move the country forward. He was accompanied by Marina Dal Poggetto Y Marin Rapetti who were in charge of the exhibition on the economic proposals. Manes had the opportunity to show businessmen that he is a “presidential” candidate while defending the possibility of competing in the PASo.
Public spending
During the morning of this Friday, some figures highlighted the deterioration of the economy. Of the last 41 years, 18 were recessive in Argentina, figures that locate the country among the three worst performers in the worldheld Esteban DomecqIDEA economic adviser.
In this colloquium, IDEA decided to take a proactive attitude by making concrete proposals for a better use of public resources. The presentation was in charge of Javier Goñidirector of Idea and general manager of Ledesma who raised the need for “fiscal balance as state policysince it gives predictability, it has to be long-term”.
In this regard, he proposed four pillars consisting of the review of zero-based public spending, that the budget cannot show a primary deficit, that the increase in primary spending cannot exceed the inflation rate and establish rules for indebtedness for the Nation, provinces and municipalities, in relation to the income they generate.
The issue of public spending and the fiscal deficit was addressed by four economists who contributed practical solutions. “It is necessary a stabilization program that includes structural reforms“, held Marina Dal Poggetto, executive director of Eco Go Consultants. She said that “We have to agree on what to spend” and raised the inconsistency that occurs because “we want the taxes of Paraguay with the expenditure of Sweden, and having the productivity of Zambia”. And he affirmed, remembering Michael Benthat the national sport of trying to get as many pesos as possible from the treasury and dollars from the Central Bank must be ended.
Martin Redradodirector of Fundación Capital, proposed that there be a de-indexation of public spending over the years, with a “rule that is law and that marks the path of beaconing the main variables and that reduces the nominality of spending going forward”. The former president of the BCRA also asserted that no more than 8 ministries are necessary (currently 22) and in the provinces the legislatures should be unicameral.
Hernan Lacunzadirector of Empiria Consultores and former Minister of Economy warned about the lack of conviction to contain public spending (there is no crack in this matter) but it was manifested optimistic considering that “there is a demand for change” that on the other hand will be forced, he evaluated, due to the lack of resources. He argued that in the government of Cristina Kirchner the funds of the AFJP and the reserves of the BCRA were spent, during the management of Together for Change the external credit was exhausted and in the current administration the emission was used to the maximum. “The boxes are over”, Redrado affirmed complementing the idea. However, Dal Poggetto said “I am not so optimistic, I am afraid of what may come”. And he added: “Head-on shocks order. Who is going to take the lead if there is a new train wreck? Let’s seek consensus first.”
For its part, Osvaldo Giordano, Minister of Finance of the province of Córdoba, warned that what prevails is poor organization. “There is no ill will, but rather the complex organization of the three levels (Nation, provinces and municipalities) leads us to end up with a deficit and mismanagement. Setting rules is important, but you have to change the organization”, he remarked.
Twin surpluses
After these presentations, the businessmen listened to the word (recorded because he is in Washington) of the Minister of Economy Serge Massa. The head of the Palacio de Hacienda assumed and distributed responsibilities at the same time by pointing out that “Politics has to give in and set an example of austerity, but there are economic sectors that also have to do it.”
In a message that was well received by the business audience, he maintained that “Fiscal order is the way to develop public policies. The best moments of Argentina occurred throughout history when the fiscal and trade surpluses drove growth with stability”.
In any case, among businessmen the answer to a key question was not clear, according to an important leader: How aware is politics of the need to make an adjustment?
Source: Ambito
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