The prestigious British newspaper The Financial Times praised the landing of Serge Massa to the Ministry of Economy and highlighted the commitment of the “tax order” in public accounts while highlighting the shift in policies to try to stabilize the economy.
“Argentina’s new economy minister has pledged to bring fiscal order to the country as the Peronist administration attempts to restore its crumbling credibility and regain market confidence by establishing a ‘super ministry’ to address the double digit inflation. “I am not a magician, nor a savior,” Sergio Massa, the third person to take charge of the Argentine economy in just one month“, expressed the article signed by the journalist Lucinda Elliott.
The prestigious British newspaper The Financial Times praised the landing of Sergio Massa at the Ministry of Economy
The former president of Argentina’s Chamber of Deputies faces the unenviable task of saving an economy wracked by runaway inflation, dwindling reserves and a growing pile of domestic debt, while navigating internal political infighting before next year’s elections,” he said.
“Poverty is high and is expected to the country enters a brief recession with a contraction in the third quarter of this year, according to a central bank survey. In an attempt to contain a full-blown economic crisis, Fernández decided to install Massa at the helm of rescuing the country’s finances, hoping to reassure investors and the public. But Argentina’s vice president, Cristina Fernandez de Kirchner, has parted ways with the president on how to fix the economy,” he concluded.
Business support to Massa
As observed in recent days, the arrival of Serge Massa to the cabinet generated another expectation in the markets and this was confirmed after the announcement of its first measures, which received a strong business support at the beginning of his management at the head of the Superministry of Economy.
The managing director of Bank of America-Merrill Lynch for the Southern Cone, Sebastian Loketekassured that “The market will give Massa a chance, since the speech was positive. It was important that he give this first message”.
Among the topics celebrated in the business community, the extension of the gas pipeline to carry gas from Vaca Muerta was highlighted. “This work changes the Argentine economy. We cannot continue to import energy that we can produce locally,” said Marcelo Mindlin, president of Pampa Energía, who with his subsidiary Sacde won, together with Techint, the main sections of the first stage of the work.
“He is a tireless worker. I have known Sergio for 25 years and I know that he was always open to dialogue with all productive and social sectors, listening and obtaining the tools to be better prepared to seek solutions to Argentine problems”. His decision to engage with the country at such a difficult time must be especially valued,” Mindlin said of Massa’s landing and the important role he will play.
Another important figure in the business community, Daniel Funes of Rioja, indicated that “this reordering of functions was convenient taking into account the national and international context. At the national level, because it is key to find a way to achieve macroeconomic predictability with a fiscal policy that is not resolved by increasing taxes, but rather with an efficient administration. All this accompanied by a monetary and exchange rate policy that reduces inflation.
Funes de Rioja: “this reorganization of functions was convenient taking into account the national and international context”
Foreign exchange to support industrial development
In any case, the head of the UIA recalled that “every process of industrial development requires foreign exchange for equipment and supplies,” to which he asked “to have reserve accumulation strategies”.
In the same vein, it was expressed Mario Grinmann, President of the Chamber of Commerce. He considered that the measures speak of a “Smart and knowledgeable politician who has taken a risky gamble.” However, it raised some doubts. “We know its capacity, but there are many unknowns. yesIf the government continues with its internal differences, it will be very difficult for it. In the line you just expressed, we We will accompany him.”
“Massa raised a defense of the fiscal order and the role of the agricultural sector in Argentine society. That shows his intention to advance in a rational sense,” added the director.
The president of Industriales Pymes Argentinos (IPA), Daniel Rosato, also spoke in this regard, considering that with Massa “the normalization of financial variables will come to underpin economic recovery.”
Businessmen support Massa after his first measures
“From IPA we are hopeful that the renewal of the cabinet will bring tranquility to the financial markets to be able to concentrate all the energy in the real economy, with the axis in the national production. We know that Massa knows this reality and has a commitment to national SMEs”said the leader.
Rosato announced that he will bring proposals to the Secretary of Production, José de Mendiguren, and highlighted, among them, the creation of the SME Dialogue Table so that small and medium-sized factories can have a voice in the design of sector policies. “We are confident that the conciliatory profile and permanent dialogue that Mendiguren has can be institutionalized so that SMEs have a place at the tripartite dialogue table for the first time and forever,” he said.