The President, among other things, proposed celebrating a pact with 10 principles to refound the country on May 25.
In a speech loaded with expectations, the president Javier Milei started the ordinary sessions of the Congress. In this framework, he carried out a balance of what has been done so far by the government he presides over and announced some lines of action to future. Given that, different economists reacted to what was expressed by the President and explained different readings about.
The President reserved a large part of his speech to talk about the economy. On the one hand, he reviewed the inherited economic conditions of the previous government and the measures taken for his management. On the other hand, he proposed holding a pact with 10 principles to refound the country next May 25. The fate of this agreement and a possible package of tax relief demanded by the provincesas Milei implied, will be tied to the approval of what is known as omnibus law.
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Milei’s speech: the reaction of the economic arc to the May Pact
Hernan Letcher, director of the Center for Argentine Political Economy (CEPA) analyzed some of the points mentioned by the President. He did it through a thread on
Milei spoke of the reduction of public spending and indicated that “it is a adjustment mostly on the national public sector (…) and not about the private sector”. In contrast, Letcher stated that January fiscal surplus data They deny this statement and explained that the adjustment was made in the following way: 32.9% about retired; 16.8% of the transport, electricity and gas subsidy; 17.6% of the public work; 12.6% of cuts in wages; and 10.1% of universities, social programs and family allowances.
Among other topics, the president of CEPA also referred to the labor reform that the president mentioned in his speech. The economist stated that this proposal would have the elimination of labor rights and to union weakening as axes for job creation. However, Letcher stated “Periods with regulations show greater job creationand conversely, the Deregulation periods show worse performance in terms of jobs”.
For his part, the economist and director of Analytics, Claudio Caprarulopredicted that the ten points of the May pact reinforce guidelines that “the financial market is going to celebrate“and assured that the doubt will continue to be in the accomplishment capacity of these policies by the Government and how much confidence that generates in investors.
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Repercussions of Milei’s speech: the responses of companies
He Institute for Business Development of Argentina (IDEA) celebrated the call made yesterday by the President to governors and former presidents with the aim of establishing 10 basic principles of economic order. “Is a gesture that unfortunately we were not used to in Argentina and that fills us with hope,” they indicated.
Furthermore, they assured that the ten points chosen fully coincide with the proposals that had been promoted by IDEA and assured that the social and economic deterioration of Argentina can only be reversed with “respect for private propertywith modern and sustainable tax, labor and pension regimeswith freedom of trade and with durable fiscal balance that includes a fair revenue sharing system.
From the Argentine Confederation of Medium Enterprises (CAME) They stated that they always aim to promote the dialogue and that, in that sense, they support the President’s initiative.
“The 10 points proposed in the invitation that the President made to the governors and the Head of Government of Buenos Aires They are a call to work seriously and responsibly. to the parties involved in reaching that Pact behind which there must be a great national agreement“they added.
Source: Ambito
