As expected, the Government managed to extend, with almost the same conditions, the reference values program Fair Prices. After the triumph of Sergio Massa in the first round of electionsnegotiations with companies accelerated.
Thus, through the Decree 551/2023 published this Thursday in the Official bulletinthe Executive extended Fair Prices until next December 31, that is, for 60 more days. Although the exact number is not yet defined, companies could increase prices by no more than 5%, the same percentage as the agreement that expires at the end of this month.
In the official text, the Executive Branch justifies the extension of the validity of the decree by “the persistence of the economic-financial events facing the country.” Which have had a negative impact on the domestic market and that led the Government to implement measures to cushion the impact on consumers.
The extension of the validity of the decree will allow companies that sign price agreements to continue benefiting from the incentives that the Government has established. These incentives include, among others, the possibility of accessing a special regime of payment facilities for the payment of export duties, the reduction of employer contributions and the possibility of accessing financing lines with subsidized rates.
In summary, the Decree establishes:
- Decree No. 433/23 established a series of benefits for subjects who sign price agreements for the local market.
- The validity of this decree was extended until December 31, 2023.
- The extension of the validity of the decree is justified by the persistence of the economic-financial events facing the country.
And the fact is that Massa’s victory in the first round, with a difference of 7 points with the libertarian Javier Milei, It completely altered the scenario and dynamics of the candidate minister’s negotiations with the companies.
Until now, companies saw worn out and retreating management, so they pressed with higher demands. The result, however, made those same companies begin to rethink their position in the face of what they perceive as a Massa with a good chance of being president.