The presidential spokesperson Manuel Adorni confirmed that this Monday, December 11, “very early in the morning” the first press conference will be held with Javier Milei as president and announcements are expected about the first government measures.
“I understand that Javier Milei’s first conference will be first thing tomorrow morning from Casa Rosada”said Adorni and estimated that it will be at 8. He also clarified that “it is not confirmed if the Law Bus will be sent to Congress tomorrow.”
In principle, the announcements would not be made by President Milei, nor by his Minister of Economy, Luis Caputo.
Milei’s economic plan will aim, in the medium term, for inflation to begin to subside, interest rates to drop due to greater fiscal discipline, and investors to trust Argentina again. To achieve this, Milei believes that the measures should be applied with shock therapy, without gradualism.
The first measures that Milei will apply are linked to balancing public accounts in order to eliminate uncontrolled monetary issuance at its roots.
Starting this Monday, the Central Bank will be prohibited from issuing to finance the Treasury. If there is a need for funds, the Treasury must seek financing on its own in the market. In turn, there will be a transfer of the Leliqs to the National Treasury, in order to improve the balance of the BCRA.
On the other hand, a gradual removal of rate subsidies is planned but in a short term, since it would be applied between January and April. Also a stoppage of public works.
Regarding the devaluation and fixation of the commercial dollar, the level to which the currency would go in the wholesale market has yet to be defined, since it seeks to begin promoting “market solutions.” The official dollar could be around $700 or $800, while the financial ones are closer to $1,000.
In addition, it emerged that Milei will arrange the extension of the 2023 Budget, which will allow spending to be frozen in some way. In this way, the budget would not have an adjustment for inflation. Other measures are expected to cut public spending.
One possibility that has circulated is that public salaries will be adequate to the new frozen budget guideline, which still raises doubts about its implementation.
The liberalization in fuel prices has also already begun to be applied, with adjustments of the average 30% applied in the last few hours.
Source: Ambito
