The owner of the Techint Group, Paolo Roccaassured that It is necessary for the Government to open the stocks so that investments arrive to Argentina, while maintaining that the exchange rate should reflect the country’s competitiveness and not what short-term capital flows indicate.
“In Argentina there are many elements that are contrasting on the agenda of the government of President Javier Milei, such as the reduction of the weight of the State, the cancellation of the fiscal deficit, the substantial reduction of regulations of the economy,” said Rocca when speaking within the framework of the Alacero Summit 2024which takes place between Tuesday and Wednesday in Puerto Madero.
The businessman maintained that, “on the agenda, There are points of transformation that have been raised in these terms and what was said is being done what I was going to do.”
Rocca added that the results of this policy “are important, as is the drop in country risk” but indicated that ““The opening of the exchange market needs to be completed to attract investment.”
The businessman provided an overview of the global steel industry and the regional situation while proposing a work agenda for the sector at a regional level in a defensive attitude regarding the advance of China.
Considered that an opportunity will open for the region for greater insertion in world trade, but directed towards Western countrieswhere he sees that cultural values are shared and it is possible to compete.
Rocca, meanwhile, formulated a strong criticism of some of the democratic governments that dominated the political landscape since the 80’s whom he blamed, in a certain way, for the stagnation that exists in the region.
“For years many democratic governments They have applied policies that have not allowed development to be achieved. There was an increase in the weight of the State, overlapping of the tax system, Legal insecurity, loss of educational quality and advance of informality.
However, and despite giving general support to the way in which the Government faced the problem of the economy in Argentina, the head of Techint slipped some criticisms, which are also applicable to other regional governments.
During his speech, he insisted that Western nations, such as the United States, the European Union, Japan and Australia, among others, They are adopting protective measures against the advance of exports of Chinese manufactures in their markets.
That is why he maintained that in Latin America “defense against unfair competition is necessary” and of “a exchange rate that reflects the productivity of the economy and not that of short-term capital flows”. “Investors evaluate all these factors,” Rooca explained.
In this regard, he said that the steel industry needs “that governments make explicit their support because that would help attract investments”
“Our activities require important investments that can only be made with companies that are profitable,” said the businessman before the audience in one of the most important hotels in Puerto Madero.
From his perspective, the agenda of the steel industry in Latin America for the coming years must provide for an alliance between all links in the value chain, reduce the weight of the state, reduce the tax burden and improve security.
On the other hand, a “international insertion towards the West world with which we share values, knowing that “With China there is no room for fair competition.”
In this framework, he said that companies must move towards a “modernization and transformation” and that they must pay particular “attention to the communities” where they operate. He also maintained that they must adopt the agenda of “gradual decarbonization of our productive matrix“.
Source: Ambito
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