“If you go into more debt and take more pesos out of the market, there will be a more recessionary bias and the interest rate will rise,” He said in a statement to LN+ and added: “If on the other hand you say: ‘No, I’ll do it with an even bigger adjustment’, then you’re going to have a bigger recession. Surely, this measure will have a deflationary effect beyond the fact that there will still be inflation, but you’re going to have a bigger recession.”
Specifically, the former minister emphasized “I think that Friday’s measures will be more recessionary.” Faced with this scenario, he indicated that a greater recession will impact state revenues. “because it collects less, there is less economic activity and there is less VAT.”
Martin Guzman called Javier Milei a “hypocrite”
The former Minister of Economy criticized the contradictions “between what he says and what he does” the President and defined his departure from the Ministry as “the saddest moment” of his life.”
“Look at the things he does and the things he says. Watch the video of him voting in favor of eliminating the income tax,” He said and recalled the attitude of the current president when the modifications to that tax were discussed in Congress last year.
“He says it is an aberration and today he imposes the income tax. What was he thinking? Himself or the country? How much money do the flights he takes to give talks where he is given medals cost? What management, what investment for the State does he make?” he asked.
In this regard, the former official focused on one of the phrases most cited by Javier Milei. “When he said that the adjustment was going to be made by the caste, what did he mean by that? Are retirees the caste?” he added, alluding to the fact that this was one of the sectors most affected by the economic decisions of the La Libertad Avanza administration and assured that he “would have applauded an adjustment to the caste” if the head of the Executive had actually made it.
Last days in the Government of Alberto Fernández
The former Minister of Economy said that he had not spoken to Cristina de Kirchner again since the previous government reached an agreement with the International Monetary Fund (IMF).
“Basically, since then, the economy could not continue to be governed. There was no way,” he said, and noted that “between having a political agreement between the President and the Vice President or having a political shock by taking a stronger decision from the point of view of the accumulation of power – although perhaps the conditions were not met – it was decided not to go down either of those paths and to have the Minister of Economy leave.” “If Alberto and Cristina had agreed, we would be better off today,” he analyzed.
Source: Ambito
