He who warns not betray. Or if? In the worst economic moment of the Government and after the advance of President Milei, Nicolás Posse finally left the head of the Cabinet. In his place, the Minister Guillermo Francos He will seek to return all his political wealth to the function.
This implies “absorbing” to a large extent the “setbacks” that began to wear down the presidential administration based on a meager performance of the administration.. The mission seems pretty clear: enhance the possibility of approving the Bases Law. Francos himself will meet with the dialogue blocks to advance the main conflicting points of the Bases law and agree on the modifications. He wants to issue a ruling this week.
There is another objective that deserves mention. Milei wants to double down. It seeks to return the initiative to the Government to continue deregulating and freeing prices. He wants to advance in the adjustment of public spending. Think that Luis Caputo begins to lose strength, which “reels” in such sensitive issues as tariffs and subsidies. The fact is that he himself Federico Sturzenegger He also thinks the same as Milei. The economist maintains that we must give back to DNU 70/2023 all the influence that it lost based on the brakes that Luis Caputo himself incorporated out of fear of the social impact of the measures.
At some point, the exchange of Posse for Francos includes the paradox: At the peak of stress in the relationship with the provinces and with Missions in crisis, the former Ministry of the Interior is demoted to secretary. We will have to see what reading the governors make, who usually have good dealings with Francos and who surely expect more dialogue.
Sturzenegger and the countdown of Luis Toto Caputo in the ministry
But although the lights focus on Francos, the shot by elevation reaches the shore of Minister Luis Toto Caputo. The Government also faces an internal crisis. He fails to advance with the economic laws that are necessary for him. The entry of Federico Sturzenegger -Milei’s soul mate in matters of libertarian dogmatism- puts the circumstantial inhabitants of the Palacio de Hacienda in tension., especially to those who tend to keep their political reflexes in tune with the impact of the plan. How will Francos react to the entry of Sturzenegger, who is often said to have less social sensitivity than Luis Caputo himself? Known is: For the former president of the BCRA in Macri’s administration, both the DNU and the Bases Law project are a necessary but not sufficient condition: he wants more reforms.
A quick consultation with two sources that gravitate to the Casa Rosada returns the obvious: Sturzenegger is a candidate for the Ministry of Economy. The other name that is heard, also praised by Milei himself in recent weeks, is that of the deputy José Luis Espert, sparring at the Luna Park show. Let the reader think about whether it is not curious that, little by little, the seats of the Government begin to be populated with economic profiles, to which the president himself added his striking overacting of “support” for Luis Caputo, almost attributing to him work and grace of the plan. Will Milei continue to defend the management of Minister Luis Caputo or will he begin to let go of his hand? To what extent could the lack of dollars and the pressure on the exchange rate undermine that commitment? If you think about it, President Milei himself is beginning to give some signs. On several occasions he pointed out that competitiveness will not come via devaluation of the peso, but rather through lower taxes (and jobs), that is, via adjustment of all kinds..
Sturzenegger’s dollar: there is no exchange rate delay
Those who orbit the planet Milei consider that there are some more elements to keep in mind. These elements could begin to change power relations. In Milei’s office everything is a zero-sum game, what they add to one they take away from another. If Sturzenegger gains exposure, so do his ideas. Is the unification of exchange rates coming with an opening of the stocks? To what extent could the Francos-Sturzenegger tandem advance with the privatizations of state companies? A few days ago, his own Sturzenegger paraphrased the president of the Central Bank of Paraguay when he confessed that in a conversation, the latter had pointed out to him “the dollar is a problem when it goes up, when it goes down and when it stays still.” On that occasion, he maintained that it was “foreseeable” that there would be exchange rate appreciation if the country risk fell by more than 1,000 points. For Sturzenegger, there is no exchange rate delay.
The word of Sturzenegger shows that, in terms of dogmatism, he is tough. For example, a few days ago, he maintained that “the fiscal adjustment is painful for those who benefit from the spending, but not for those who financed it,” in virtual support for the management of the Minister of Human Capital, Sandra Pettovello, and the complaint by irregularities in the distribution of social plans by the leaders of social movements. He maintained that “the fiscal adjustment is not painful for the society that financed public spending,” but rather it is for those who “benefited” from it.
Source: Ambito
