New Argentine minister promises fiscal balance and price control

The new economy minister of Argentina, Silvina Batakis, 53, gave her first press conference this Monday (11) in the morning, in which she presented the first measures of her administration in the fight against inflation, which touches 60%, and to the skyrocketing dollar, which already appears in quotations at a value more than 100% higher than the official one.

Batakis took the tone of a moderate speech, stating that the government would take a position of respecting the “fiscal balance”, and that the country “would not spend more than it had” in the coming months.

“In extreme situations, such as the pandemic, the public sector has to use deficits as a countercyclical instrument, but once these circumstances have passed, we have to regain balance,” he said.

Batakis appeared at the conference table surrounded by his closest allies, Daniel Scioli, former ambassador to Brazil and now Minister of Productive Development, Agriculture Minister Julián Dominguez, Tourism Minister Martías Lammens and the president of the Central Bank. , Miguel Pesce.

Batakis stated that he will seek fiscal balance, that there will be no devaluation of the Argentine peso, although this is already happening due to the existence of the informal market, and that he will be tough on businessmen who raise prices in supermarkets just as a “precaution”.

He also guaranteed that he would continue the debt restructuring process with the IMF (International Monetary Fund), as his predecessor, Martín Guzmán, had been doing.

The press conference takes place the day after intense protests took place in several Argentine cities. There is great unease on the left and right about high prices and the so-called “blue” dollar soaring.

“We cannot allow price abuses. What has been happening [referindo-se aos aumentos e remarcações nos supermercados] It doesn’t have a technical explanation and is speculation. As of today, we are going to talk to big businessmen and I hope to restore their confidence in our policies,” said Batakis.

On inflation, Batakis also only mentioned it as something to be negotiated with businessmen. “We have to take into account that while a climate of war continues, this will impact the price of food and will harm us in exports of primary products”, and he added: “it would be very unprofessional to risk a projection in this situation of world imbalance.”

In relation to the parallel dollar, Batakis warned that it should not be the reference for price increases. “These must take into account the official dollar only.”

However, it did not present the alternatives to avoid markdowns based on the parallel. “The entire price chain of a product, from the moment it arrives from abroad [do país] even the market shelf is within the official dollar. If the shopkeeper reschedules it according to the parallel, there’s a problem there.”