In the framework of his dissertation in the Argentina Fintech Forum that was carried out at the Usina del Arte, the main person in charge of the liberalization of regulations in the government of Javier Milei defended the budget cuts and the adjustment in the State plant as a basis for reducing the fiscal deficit.
Along these lines, the official stated that currently “there are two central policies that, if conceptualized, explain the management of this Government: fiscal balance and economic freedom”. “Everything is going to happen within the framework of those two concepts,” he summarized.
“I worked in many governments. The president’s obsession with fiscal balance is off scale on the graph, I never saw it,” he said about Milei and added: “Argentina needed it and more for this industry,” in reference to the fintech sector.
“Every peso that the Government spends is an expense that the Government absorbs from the rest of society and that is not available for credit or private spending.”Sturzenegger explained to the audience tonight, at the closing of the event. The reduction in spending “allows lower taxes and society can spend the private sector. And to spend that they are going to need you,” he told those present.
For Federico Sturzenegger, the current level of economic activity “is higher than when Milei took office”
Next, the former head of the BCRA in the government of Macri and official of the De la Rúa administration stated that The current level of economic activity “is higher than when Milei took office”. “This drop in public spending was compensated ‘one by one’ with an increase in private spending,” he said.
According to the Monthly Economic Activity Estimator (EMAE) which publishes the INDEC, the August series index showed that the economy accelerated his decline 3.8% in August compared to the same month last year, although in the seasonally adjusted monthly variation it advanced, but barely 0.2%. The “tie” occurs if August 2024 is compared with November 2023, the month prior to Milei’s inauguration.
In any case, Sturzenegger assured that macro stability “is beginning to be felt” and announced that it will be consolidated “in a very sustained and very strong way next year because the heart of the problem, which is fiscal, has been attacked.”
In that sense, he reaffirmed that, to achieve recovery, they will continue to “run” to the Middle State. “What does wealth ask of the laws to increase and reproduce? “He asks the same thing as Diogenes did to Alexander the Great, who asked him if he could move so as not to block the sun.” said and exemplified: “Don’t overshadow me. In Rio de la Plata it is: don’t break my balls (sic), don’t complicate me with rules that serve no purpose.”
“Many regulations have to do with interests, with fears of the regulators who believe that their mission is to protect us from ourselves. That which seeks to protect may protect something but destroys much more.”continued the minister, and then referred to the fintech sector: “This industry, when he was president of BCRA, I refused to regulate it because I didn’t see any risk to protect. The banks put a lot of pressure on us to regulate and liquidate them. And you also asked me, to know ‘what my ecosystem’ is. It’s scary to jump into the pool.”
Then, as a harangue, he told those present: “Anything is possible, they don’t have to wait for the Government to tell them how to do it. Macro stability is going to give them a lot of resources and business because it transfers spending from the public to the private sector.”
He also stated that what they “have done in this country” since the beginning of this sector is something “incredible.” “We never imagined what they achieved, it is an icon in the world. When I was president of the BCRA, cash was 50% of transactional money and it fell to 20% years later. Mercado Pago had an important role there,” he highlighted and closed : “You resisted the pressure from the banks, who did not want this ecosystem to prosper. Luckily we did not give in.”
Source: Ambito
