His words come after the foam subsided over the Republican victory that awakens optimism in Milei’s government. Now he indicates that “it would be outrageous” to loosen fiscal discipline.
Juan Carlos de Pabloone of the economists closest to the president Javier Mileistrongly warned about the importance of not giving in to the fiscal balance policy. “If he lets up, we’ll all fly through the air”he launched.
According to De Pablo, it was not the Minister of Economy, Luis Caputo, who promoted this policy, but Milei himself, who has the need to keep public accounts in order “in his blood.” The economist stressed that loosening fiscal discipline in order to raise more money for the elections would be “an outrage“which would put at risk the efforts of the population, which it considers essential to preserve.
In relation to the 2025 Budget, De Pablo highlighted the clarity of the balance commitment: article 1 of the project establishes that the deficit must be zero, while article 2 suggests that how to achieve it will be determined. For the economist, this approach goes beyond calculations or projections; It responds to the conviction of a President determined to preserve fiscal balance, regardless of the political costs that this may entail.
The legislative elections of 2025
De Pablo also highlighted that, facing the 2025 legislative elections, Milei faces a complex scenario due to his lack of support in Congress, without the presence of governors, senators or deputies from his party. Given this, he pointed out that Milei has chosen to cling to the fiscal tool, which he considers more effective than the monetary or exchange tool to ensure the economic stability of the country.
In addition, he reflected on the Government’s macroeconomic achievements, which for some seem like a “miracle”, but which he considers a “surprise” due to the speed of their effects.
Juan Carlos De Pablo
Regarding country risk, De Pablo applauded that the Government has not taken advantage of its recent fall to increase net debt, but has instead prioritized the renewal of debt on more favorable terms. Likewise, he anticipated that inflation could be around 3% for October and 4% in November, warning that these figures, although high, do not represent a cause for alarm.
Finally, when talking about consumption and the evolution of salaries, De Pablo called for a more complete and detailed view of the figures, especially in the area of informal employment, which has shown greater growth than formal employment. He added that, in contrast, public sector salaries have been the hardest hit due to the lack of indexation against inflation.
In summary, De Pablo emphasized that, although there are economic and political pressures and challenges, Milei should not compromise its conviction of fiscal balance. “If he lets up, we’ll all fly through the air”he warned, making clear the danger of any relaxation in fiscal discipline in this crucial context for the country.
Source: Ambito
