He hard setback that the Government suffered with the omnibus law caused concern in the business sector. Added to this was the growing conflict between the Executive Branch and the governors and the social unrest after the succession of increases in food, fuel and public transportation. A panorama that generates uncertainty. In this framework, the main business chambers They came out in unison to ask “institutional responsibility.”
For the second consecutive day, the markets reacted negatively again following the news that the Bases law will not be presented again in Congress. The S&P Merval sank almost 4%. In the last three days, the stock index has registered a fall of 15.2%. Meanwhile, ADRs fell up to 6.7% this Thursday. Volatility and a bad investor mood are in sight.
“The failure to advance the omnibus law generates uncertainties in the economy. It had caused a favorable expectation in order to find some conditions for the future in terms of investments and this is not going to happen. That is why we have insisted these days that it is very important that the ruling party and opposition blocs recover dialogue and find a path of negotiation to promote the necessary laws for an economic and social transformation, especially for macroeconomic stability,” confided an important representative of the agro-export sector to Ambit.
Likewise, he recognized that a political weakness It could bring nervousness to the exchange market and thus harm the sector. “Any exchange market movement “It paralyzes the grain trade and that is why we always insist so much on the fact that there has to be a monetary policy and an exchange rate policy that can achieve stability.” From the Argentine Rural Society They added: “as citizens we need certainties and not uncertainty.”
Doubts about the social situation
On the other hand, since Córdoba Stock Exchange, Manuel Tagle In conversation with this medium, he highlighted that the current situation is “extreme” and regretted that the deputies have not supported the Base Law. “I think all of them they have lacked greatness to see the situation that the country is in. The path that the country has to take is this, the one marked by the DNU.”
“These processes of corrections, of adjustments that are necessary, have an important social cost in certain more vulnerable sectors that have fixed incomes, especially in retirees and sectors that depend on social subsidies. They will have to be taken into account so as not to generate a unfair situation from a social point of view, without this meaning reversing the guidelines of the correct economic decisions that are being made.”
The lack of political dialogue in the spotlight
From CAME (Argentine Confederation of Medium Enterprises), Alfredo González, in dialogue with Ambit, contributed that the fall of the omnibus law generates “uncertainty in the business world.” “What affects the most is the lack of coordination and political dialogue between the main forces, exhibiting a leadership crisis that can channel the main problems of Argentina.”
And with a clear message to politics, he stated: “What worries us is that in a context of economic fragility like the one we are experiencing, dialogue and political solutions are not appearing.”
“The business climate shrinks when the horizon is unclear. There are sensitive issues that deserve to be addressed at this stage and produce the change that Argentina needs. Meanwhile the real economy suffers very strongly, both in consumption and in the SME industry.”
Another key actor is the Argentine Chamber of Commerce and Services (CAC) that this Thursday issued a statement and considered that what happened was a “negative signal”.
“The CAC considers that Argentina is at a critical moment in its history, where we can choose to continue on the downward path that we have been on for too many years or begin to reverse our reality.”
Forcefully, the statement concluded: “Officialism, opposition and society as a whole must take charge of our role in this historical moment, which requires high debate, making the greatest efforts to achieve consensus and privilege the well-being of the whole. In other words, assume a patriotic attitude. We must not allow personal miseries or the petty defense of a particular interest undermine the possibilities of progress of our beloved nation.”
Finally, from the Amcham, which represents US companies in Argentina, called for maximum “institutional responsibility.” In the opinion of that entity, It is “a turning point where political leaders are needed to promote the profound transformation of Argentina.” towards a viable country model.” Without giving names, they pointed out against those who promote “partisan disputes and individual interests”, which “divert attention from the true needs of Argentine society, deepening the suffering of those who suffer it most”. The UIA (Argentine Industrial Union), which had spoken out prior to the treatment in particular asking for the approval of the law, after the Government’s setback chose, at least for the moment, silence.
Source: Ambito
