“The loss due to drought can be offset somewhat, but not entirely, by the cost of energy, because they are importing cheaper gas and because the Nestor Kirchner gas pipeline can compensate. But we are in the day to day. Everything is stretch until August. If in August they hit us with a pineapple, what is achieved after August is useless”, said the economist.
Regarding the public debt, he assured: “every time more is being bought around the world because the fiscal hole is impossible, the external debt remains, you don’t have to finance and all you finance is the driver. You have to light a candle to roll over the external debt that is due 3 trillion pesos ”, he highlighted.
His analysis of the economy and what is coming
“If the arrival of Sergio Massa to the Ministry of Economy, in comparison with July, generated a stabilization within the prevailing instabilization is pulling that string exaggeratedly. Now the scores are mixed. This stability, thus defined, has to be aligned with politics, be competitive electorally, and all of that together is very difficult. That is the heart of the official political conflict,” Melconian said in statements to Radio Miter.
“(The Government) is postponing the problems; that society does not eat any rotten fish in this round trip of insults. They are going to throw everything into the campaign. The issue of the sticks, the footprints, the protests of something that has begun to “order” the economy insufficiently, as is happening, will return. It is being done by populism that falls short in rates, dollars, rents, gas, transportation, meat, salaries,” added the former president of Banco Nación.
“The most orthodox of populism are excited that they are liquefying it but they say ‘if we hit Massa a lot, he falls off too’. Liquefying is the mechanism of postponing the problem to which it comes. The Minister of Economy is a lively person for these things. His new stage is from here to August, it is not from here to December“, said.
But he stressed that the next government has a structural reform ahead of it, to achieve a stability plan, to enter into a reform of the public and private sectors. “He has to fight a cultural battle and shit is going to come from the other side,” he anticipated. “People’s demand is very simple: people want to know how much things are worth. It needs a horizon, ”he noted.