Sergio Massa traveled to Brazil today and met in São Paulo with the strong men of the economic team of the president-elect of that country, Lula Da Silvawho will assume the position on January 1.
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The Minister of Economy met in Sao Paulo with fernando haddad Y Geraldo Alckmin. Haddad will be finance minister in Brazil’s next government, and Alckmin, Lula’s running mate and former São Paulo governor, will be vice president and also industry and commerce minister.
Haddad received the Tigrense at his home. As highlighted by Economy, in the meetings progress was made in a regional integration agenda.
Massa is already slowing down the rate of devaluation to contain inflation in December, which points to 5.5%
The minister recognized that it will not be easy to sustain the slowdown in prices. The month started more “spicy” in food. The supposed “resignation” of Cristina to be a candidate next year had a positive impact on the financial markets
The bilateral trade agenda includes central issues, such as gas as transition energy and the financing of foreign trade. “Both are common interests for Brazil and Argentina to work on”, he explained.
In addition, as a future focus of the integration work between the two nations, two axes were discussed: exchange of currencies and the project of a common currency for trade in the region.
“These are projects that must be part of the process of economic, financial, infrastructure and development integration of Mercosur and the region,” they highlighted at the Palacio de Hacienda.
Financial day: after another rise in bonds, the country risk pierced 2,100 points
Government bonds in dollars rose for the seventh round in a row. The S&P Merval advanced for a fifth day and broke the 180,000 point barrier. The free dollar fell to $325 and the BCRA bought USD 52 million in the MULC
Massa, who will return to the country today, was accompanied by his advisor on international issues, Gustavo Martinez Pandianiand by Marco Lavagna, Head of INDEC and also responsible for Economics with multilateral credit organizations.
So much Jair Bolsonaro What Lula Da Silva welcomes the possibility of creating a single currency for the member countries of the mercosur. The initiative made some progress in 2019, but ultimately did not materialize.
Now, with inflation at the center of all economic debates, the idea of a single currency has once again taken center stage. Last September, the Mercosur Commission of the Chamber of Deputies The possibility of advancing with the project was discussed and the economic integration plan developed by both governments seems to be in tune with the unification of currencies.
The underlying objective would be to facilitate trade between the two countries and, in turn, have a currency that guarantees some macroeconomic stability.
During the government of BolsonaroBrazil and Argentina began negotiations to export gas from Dead cow to the neighboring country. In January the Brazilian government will change, but Brazil’s need for energy will continue – the reduction in gas deliveries from Bolivia continues – and the talks will continue.
Meanwhile, the Argentine national government closed an agreement with the Brazilian state bank BNDES for the financing of the construction of the second stage of the gas pipeline that will link Vaca Muerta with the networks of the rest of the country. The credit will reach an amount of $689 million and it will open the doors for Argentine gas to begin to be sold to other countries in the region.
“The gas pipeline will help to achieve energy self-sufficiency, deepen regional exports and develop projects of LNG (liquefied natural gas)”, had declared the Secretary of Energy, Flavia Royon.
In Brazil, in addition to having a deficit in the supply of gas, they seek to advance with a project to standardize cargo transportation with LNG engines, with the aim of improving logistics efficiency and reducing carbon dioxide emissions.
Fernando Haddad, who as of January 1, 2023 will be the new Minister of Finance of Brazil, was mayor of São Paulo between 2013 and 2017, and was in charge of renegotiating a debt of more than 50,000 million reais with the federal government.
However, his political career began much earlier. In July 2005, he was appointed Brazil’s Minister of Education and held the position until 2012, when he resigned to start his campaign for mayor of São Paulo.
Due to his economic profile, specialists expect Haddad to manage an increase in public spending and promote an enlargement of the State.
For his part, Geraldo Alckmin He was also Governor of São Paulo on two occasions, first between 2001 and 2006, and then between 2011 and 2018. A curiosity is that in 2006 he competed in the second round against Lula, but the future Vice President and Minister of Industry and Commerce assures that the confrontation It was given in a framework of respect.
Alckmin was also a candidate in the 2018 presidential election, but on that occasion he obtained a marginal number of votes.
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