According to Caputo, the country is experiencing a “change of era”. This is, according to the minister’s interpretation, the first time that a President is convinced of the need to “maintain fiscal order.” In this regard, he recalled that on previous occasions (with Convertibility or at the beginning of the 2000s) the country had balance in its accounts, but these policies were not the result of a decision, but rather a consequence of previous crises.
For the minister, the most important change is that the president Javier Milei “is convinced” of the need to maintain fiscal order and “He is not going to give in to pressure”. He acknowledged that austerity policies on sensitive issues such as retirements or the university budget can impact the image of the president, but affirmed that Milei “He doesn’t care at all about the polls and it’s excellent that this is the case, I’m going to worry the day I see him change”.
In the framework of the IDEA Colloquium, Caputo stated that The head of state is a very intelligent person who “does not get carried away by stupid polls, which is the trap that all presidents have fallen into in the last 123 years.”
The political bias of the speech was such that the minister forgot that it brought as a first the achievement of a new surplus in the Treasury accounts in the last month. He had to go back on stage to provide the information. The primary surplus in the first nine months of the year reached nearly 1.7% of GDP and the financial surplus reached almost 0.4% of GDP.
Caputo did not spare his praise for the official management or his criticism of Kirchnerism. He considered that Milei aims to “make the best presidency in history” and that “he has no political interest, we are here out of a vocation to serve.”
In relation to the previous government, he stated that “everyone already knows that they are a bunch of unpresentable criminals and donkeys.” causing one of the three applauses that the public gave him. For this reason, he considered that “there is no way for them to come back by chance, the only option they have to return is to torpedo” with issues such as retirements or universities.
Although in the halls of the colloquium the business leaders agree that the macroeconomy is more stable, they do not share with Caputo the certainty that the course of policy is assured. Some recalled that “with Mauricio Macri it was thought that there was no possibility of returning to a populist scheme and the facts showed the opposite.”
Others are concerned because they observe “an excess of triumphalism” in the authorities since they consider that, although important progress has been made, there are also “many and difficult challenges ahead.”
Businessmen finally expected more details from Caputo about the economic direction. The lack of definitions regarding when and how the stocks will be lifted is already worrying.issues that particularly condition future investments by multinational companies.
On the other hand, the minister’s insistence on maintaining the exchange rate system generates concern about the loss of competitiveness of local production. It is not that they are asking for a devaluation – and the majority believes that the Government is not going to devalue – but they are concerned about the call “Argentine cost”. “The minister’s speech regarding the economic direction was little appreciated,” said an important businessman, thus explaining what was lukewarm applause.
Source: Ambito
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