Journalist: Are you worried about the new jump in inflation since July?
Daniel Funes de Rioja: This inflationary issue is not good for consumption or production. It’s not good for anyone. That is why macroeconomic stabilization is an objective shared with the Government. Don’t go wrong with the media though.
Q.: What do you mean by not being wrong with the media?
DFR: It’s not just hitting prices, because you can’t hit costs. The dialogue that is taking place between the Ministry of Commerce and the companies is the way to go trying to loosen the tensions a little until the path of stability that is essential for Argentina is found.
Q.: Is there already a dialogue underway for the agreement on prices and wages?
DFR: I have to clarify that it is not with the Chamber. The talks are between leading companies and the government. They are company by company. But it must be emphasized that inflation is not an issue that can be fixed overnight. Even in the most successful experiences this took time.
Q.: Do you think that at this point there is also an inertial component in inflation?
DFR: This comes from many years, from circuits where we have come out of inflationary problems only to fall back into inflationary problems at the end of the 1980s with hyperinflation. We must return to the twin surpluses: commercial and fiscal. The issue of public spending must be managed, emphasis must be placed on the generation of private employment and the means to generate private employment, not only labor costs, but also the legal issues that generate litigation. A macroeconomic stabilization program is needed to calm down expectations. But expectations are not only measured by forcing restrictions on price increases.
Q.: But do you think that an agreement on prices and salaries can collaborate in shaping those expectations?
DFR: I am a accordionist and dialoguist. It is very important that the macroeconomic context is aimed at that, an agreement that does not have a context is easily exhausted. This search must have as its cornerstone a political agreement that is expressed through the budget and other laws. Within the framework of a stabilization program, these measures can be considered, but the basic ones go through macroeconomic stabilization with twin surpluses.
P.: And do you think that Massa points to that?
DFR: I think it is pointing to that, the important thing is that the political forces with representation in Congress since the Budget discussion also take it into account. There is a scenario of opportunity for Argentina, they are one of those opportunities that happen once. I speak in the mining, energy, food, technological services, tourism fields. All of this cannot happen unexpectedly and there cannot be merely a response to the crisis, but rather a vocation for the stabilization of the country.
Q.: A few days ago, the deputy minister said that the companies’ margins are high and that we must return to the margins that existed four or five years ago. Do you agree?
DFR: You have to look case by case, you have to see if the margins come from sales in Argentina or from foreign markets. This deserves a detailed analysis, case by case, no generalization can be made. This statement is subject to verification according to specific cases.
Source: Ambito
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