reverse gear, superpowers, dollar and the appearance of a key riddle

reverse gear, superpowers, dollar and the appearance of a key riddle

While there are still the remnants of the Government’s announcement that yesterday it withdrew the fiscal package of the omnibus law, it is likely that now, as anticipated in Ambit this same week, The mother of all battles takes place: superpowers.

In fact, this surprising step back should immediately answer another riddle: The potential approval of the delegated powers… does it not imply that President Javier Milei will later be able to face by his own decision what part of Congress and the governors deny him today?

The upcoming discussion is not simple; it will begin next Tuesday in the House of Representatives and will subsequently have to go through a dry discussion and treatment by the Senate. Is this kind of capitulation a maneuver by Milei because he thinks he will be able to impose fiscal decisions by decree anyway?

Let’s see. The Executive agreed to remove from the project the withholdings, the reversal of the Income tax, the retirement module, money laundering, the tax moratorium and the advance of Personal Assets. That is, supposedly, was left without a series of tools that allowed it to add additional resources to achieve fiscal balance.

In symbolic terms it is key because the central promise of the Government is, precisely, stop issuing to finance spending. The hypothesis was that, with the. Approved Base Law, this differential in expenditure would be financed in another way. Added to this was the sharp cut in spending.

Some signals to the markets

Yesterday, at a conference, when journalists asked Caputo how he was going to compensate for all that income, the minister was vague. He said that while they were not going to “give in on the zero deficit,” they were still going to take some time to think about it.. This gave rise to a series of speculations, among them, that the Government will compensate for the setback with an additional cut to transfers to the provinces, a greater adjustment in tariffs.

Minister Caputo was in charge of breaking the news late yesterday. He did it outside market hours to avoid an impact on prices and the dollar. The economist comes from accumulating under his ministry countless departments that were under the orbit of Infrastructure. He is, in fact, the person with the most power in the Government after the president, his sister and the chief of staff.

The President’s two sentences at Thursday’s Cabinet meeting still reverberate: “I’m going to leave you without a penny,” “I’m going to melt you all down,” he told the governors. However, yesterday, in a conference, Caputo said that they were willing to listen to the heads of the provincial executives. The departure of Guillermo Ferraro – to whom they attributed the leak of the phrases – had opened another question in the previous one: What was interesting about the megaportfolio that Ferraro had under his wing? Whom?

Source: Ambito

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