In particular, Milei was enraged by what she considered friendly fire.. Due to Fausto Spotorno’s latest statements, he has asked that this economist be removed from his position on the President’s Advisory Council.
Spotorno said days ago that the minister’s economic plan Luis Caputo It is “transitional” and more recently he considered that the way in which the latest monetary measures were communicated was “very bad news.”
The president was also upset, those close to him say, when he read the statements of Orlando Ferreres referred to by the Government “announced a Bonex Plan for banks“, when evaluating the decision to transfer the Central Bank’s debt to the Treasury. Ferreres is the head of the study that includes Spotorno.
“What we announced was precisely a voluntary agreement” as financial institutions celebrated, official sources point out.
Speaking of friendly fire, more than one official does not understand “why numerous officials from the previous government continue to work at AFIP and Customs.” In this regard and recognizing this situation, they admit that they are working and that there will be changes, “as soon as possible”although they recognize that it is not easy.
Javier Milei puts Peronism in his sights
In the president’s inner circle they are convinced that the Peronist opposition is carrying out a systematic campaign to erode the Government because “If we do well, they know they won’t come back.”
According to the official explanation, this plan has a first milestone in the university march that, they consider, was stirred up by the opposition to discredit the president in the segment that supports him the most, the young people. Also, they explain, came the attack on another sector that supports Milei, the elderly. In this sense, they interpret the “strong rise” that prepaid medicine registered and believe that it was encouraged by a company in the sector.
They also warn that the appearance of an armed man in the area of the event that Milei led in San Juan this week (when he announced the literacy plan) responds to “an intention to intimidate the president so that he does not approach the people.” And finally, they point to “a major bank’s maneuver to boost the dollar and increase inflation.”
Confidential reports that reach the President anticipate that These attacks will continue.
The good news that the Government continues to receive
At the Ministry of Economy They expect that the price index that INDEC will release this week, corresponding to June, will start with 4instead of the 5% monthly variation forecast by private consulting firms. In this regard, it is considered that the moderation in the rise in food prices will offset the impact of the increase in tariffs.
A relevant fact, according to the Treasury, is that, despite the rise in financial dollars, inflation did not accelerate. On the contrary, in the last week of last month Private estimates show that prices for fast-moving products – such as food and beverages, hygiene or personal care – have hardly changed and in the first half of July they did so by around 0.5%, That is, a relatively low increase and in line with the slowdown.
“The fact that the dollar is rising and does not directly impact prices is very important, it means that the market is beginning to believe us in that we will maintain fiscal discipline and will not issue“, they assure in economic driving.
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For Milei’s inner circle, the continuation of the disinflation process is key – they say – in order to restore wages and therefore improve consumption and, in this way, encourage economic recovery.
Official data shows that the wage bill in the formal sector (i.e. the number of jobs multiplied by wages), after collapsing 11% in December, the latest data show that has been rising at a rate of 1% per month in both April and May.
Another fact that excites the authorities is the evolution of the fiscal accounts. They do not yet have the final data, But they do not rule out that last month the Treasury again achieved a surplus.despite the payment of Christmas bonuses.
Government focuses on economic recovery
In the immediate future, The president “is very focused on sustaining the economic recovery”say those close to him. For this reason, the Government decided to postpone the increase in rates for July and, thus, avoid an acceleration of inflation and the interruption of the recovery of wages.
They also rule out that the exchange restrictions will be lifted immediately because “Milei agrees with (Luis) Toto Caputo that the restrictions will not be lifted until we are sure that we are not at risk.”
Over a longer time horizon, the Government is confident that investments will support the economy.
In this sense, Ambit could know that The president will personally be in charge of regulating the Large Investment Incentive Regime (RIGI)Something that few know is that Milei made her career at Corporación América advising the businessman Eduardo Eurnekian on regulatory frameworks based on the various businesses it had with the State.
“If it were up to me, I would give everyone a RIGI”the president points out in his entourage, implying that The official intention is not to limit the incentive system to large investments or certain sectors. For now, Work is underway to draft a bill similar to the RIGI for SMEs.
Source: Ambito
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