Alberto Fernández proposed to coordinate unified policies with the Central Banks of the world

Wednesday, May 11, 2022 | 6:14 p.m.

During the tour of Europe led by President Alberto Fernández, Foreign Minister Santiago Cafiero highlighted that the bilateral meeting between the Argentine president and Foreign Minister Olaf Scholz addressed the implementation of new strategies for economies around the world, in the framework of the impact of the war in Europe.

“One of the topics that was discussed was what is the planning that the northern and European central banks are going to have regarding inflation and its treatment. In that sense, President Fernández remarked that it will affect our region. The point is not to spoil growth; the pandemic and the consequences of the war brought more inflation. If the solution to the inflationary processes is to raise rates, the economies of the south will be hit hard”, added the Argentine foreign minister.

And he expanded: “President Fernández proposed that instead of the Central Banks dealing with raising rates as mechanisms, these entities should be in charge of coordinating policies that basically go to financing development and supply.”

“We come from a pandemic, to which the war was added, and if we add the recession to this, it will have a strong impact on emerging economies,” Cafiero analyzed. And he added: “The solution should not only come from one Central Bank or another, but it should be articulated and aimed at financing development and growth.”

“Reference was made to the increases in the world prices of energy and food, fundamentally for the countries of the south, which have less economic capacity and that can bring food insecurity”, he remarked and maintained that “the President stated that the war has a global scope and that we must all get involved to achieve a ceasefire. This is the great challenge.”

On the other hand, the foreign minister stressed that during the bilateral meeting, Fernandez stressed that “Argentina this year has the presidency of the Commission for the Non-Proliferation of Nuclear Weapons, which reviews the commitments of all countries that have nuclear weapons and how they should move forward. Both parties agreed on the importance of strengthening the mechanism and the accompaniment of Germany in the review commission”.

Argentina proposes that the NPT Review Conference (postponed to January 2022 due to the pandemic) reach a Final Consensus Document in line with the Proposals developed, and a greater commitment of the members of the NPT by advancing in concrete joint decisions on the matter .

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