Diana Mondino warned industrialists about the energy crisis: “Go buy a generator”

2023-11-30 16:31:09

Future Foreign Minister Diana Mondino expressed hope that the outgoing Government will be the one to sign the new agreement between Mercosur and the European Union in the coming days. She said that regulations on foreign trade must be eliminated and stated that La Libertad Avanza ( LLA) it is hoped that “the dollars belong to the exporters and not to the Central Bank.”

“There are a huge amount of regulations. Within these regulations, there is one that establishes that Argentina, for some mysterious reason, considers that the dollars do not belong to the exporter, that the dollars belong to the Central Bank. The first thing to do, not on December 11, but as soon as possible, is to reach a situation in which the dollars belong to the exporter, who pay taxes. But it is essential so that people have an incentive,” he said when speaking at the 29th Conference organized by the Argentine Industrial Union (UIA).

The future owner of the San Martín Palace spoke in that space and outlined the guidelines that the Government of the elected president, Javier Milei, will follow in matters of international relations and trade.

In another part of his participation he warned regarding the lack of energy infrastructure and advised businessmen: “In January and February, anyone who does not have a generator should buy one. “If the industry is reactivated a little, there is not enough for everyone,” Télam published.

The Mercosur-Europe agreement

The agreement between Mercosur and the European Union occupied a particular place in the presentation of the elected LLA legislator, who highlighted the benefits of this understanding and the “monumental” commercial opportunities it brings for Argentina.

“We would appreciate it if Alberto Fernández, as outgoing president, might finalize the agreement between Mercosur and the European Union,” Mondino remarked.

The virtual chancellor estimated that, although Argentine companies will have to face some “exaggerated and costly regulations,” entering into this agreement “takes away discretion from the Argentine resolution.”

“Of course there are a lot of things that each of the participants don’t like. Someone’s foot is going to hurt, but we have to try to look at it as a whole. We might move forward with EFTA, Singapore, ASIAN, The doors that open are monumental. It’s true, someone is going to be bothered by something, if we expect everyone to be happy, no one is going to be happy,” he added.

Regarding foreign policy, he stated that we must “turn around the functioning of the Foreign Ministry” and that it is not that ministry or its officials whether it is convenient to export a product or not, but that it is “the private sector” that, following analyzing costs, communicate that decision to the diplomatic corps to eliminate if a regulation prevents trade.

“We are going to have (in the Foreign Ministry) two spaces where the private sector is going to have a dominant role to generate incentives for everything that involves exports,” he added in the same sense.

Mondino, on taxes

Mondino was also in favor of simplifying taxes and advancing modifications to labor and pension regimes: “We have to massively simplify (taxes) there are things that are taxed three times. All credit in Argentina has VAT, Gross Income and municipal tax: 21+7+8. If you want to take out a loan for a motorcycle or wonderful machinery, you have to pay taxes.”

In that sense, he said that there is consensus that, in the face of the great fiscal imbalance, there are “two solutions” that can be summarized “in raising taxes or lowering spending.”

“We are going towards lowering spending to lower taxes. It is up to all of you to explain that taxes cannot rise,” he told the industrialists present.

In reference to the competitiveness of companies, the future chancellor said that to enter the “industrial revolution 4.0” you have to know “that in the world, the one who is going to export, the one who is going to produce, is going to be the one who is plus something. The most efficient, the lowest cost, the most innovative, the one that is closest, you have to be the most something. And that implies having a production and adaptation capacity in the company, being truly agile. “That is going to be the challenge for the industry.”

He also reiterated that the restrictions that “prevent savings and prevent normal transactions” must be eliminated “as quickly as possible.”

Asked regarding possible infrastructure works, Mondino wondered why the Néstor Kirchner Gas Pipeline “had to be state-owned” and told the businessmen that they should be the ones to build “the fifth line” of high tension.

Previously, Mondino had spoken with the media present and referred to the elimination of the Ministry of Commerce and stated that price controls “never worked.”

“There are controls that are essential, we all have to comply with the red light and we must control that it is complied with. What there should not be is price control. We know that price control never worked. Not the hygiene, safety controls. Maximum Prices have to disappear,” he noted.

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