From Mar del Plata
“LPolitics has to give in and set an example of austerity, but there are economic sectors that also have to do so”, was the message that the Minister of Economy, Serge Massaleft them to businessmen gathered at 58 IDEA Colloquium in a recorded interview. In a nod to the businessmen and in keeping with the proposals heard above and below the stage, Massa placed special emphasis on the fact that the path to growth is “fiscal order” and recalled on two occasions that “the best moments in Argentina occurred with twin surpluses”.
“Austerity in spending and the surplus as an objective do not have to be a political banner, but rather a guiding principle,” the minister responded when asked if, for him, lowering the deficit had a “right-wing” connotation as well. Besides of tax orderthe minister appointed the trade surplus, the competitive exchange rate, the accumulation of reserves and inclusive development as the five guiding principles on the path of growth.
“It is essential that we understand that The fiscal order is the path of predictability for the State, for the citizen regarding his obligations to the State, and for the development of public policies”, affirmed Massa, who apologized twice to the businessmen for not being able to be “physically” present at the return of the Idea Colloquium in Mar del Plata, a city where it has been carried out for more than five decades with an interruption the last two years due to the pandemic. The minister is in the United States to attend the Assembly of the International Monetary Fund (IMF) and continue forging ties with international organizations to obtain raw material for the dollar factory.
“The recorded interview format no longer called me much,” a businessman told PageI1 when asked regarding his impression regarding Massa’s participation and continued: “I was still surprised that he stood up with the companies, but I understand what he had to say. It’s all scripted. Massa’s presence, although virtual, was particularly expected by the businessmen attending IDEA, who in the first two days did not hide their discomfort at the lack of important political figures on and off the stage.Massa’s surname appeared in many conversations with businessmen in the corridors, who gave him a vote confidence and highlight the minister’s “intention to listen”, “which is made difficult by a difficult macroeconomic context”.
Give in to grow, according to Massa
With a clear position – and close to the business community – regarding the fiscal deficit, Massa took advantage of the slogan devised by Daniel Herrero himself, the president of the meeting and former president of Toyota to warn businessmen: “Argentina’s economic sectors also they have to cede profits from many years ago”. He referred particularly to some tax measures that “represent tax advantages that benefit some sectors and that it would be good for us to discuss them”, such as the VAT refund to supermarkets so that the price of milk does not skyrocket following the erratic measure of the macrismo to eliminate VAT on the basic basket. “It doesn’t make sense for that to continue in force,” the minister assured.
“In this line of giving in to grow, it is key to put white on black on how much informal eco weighs. Who gives in first, the one who lowers taxes or the one who whitewashes so that taxes are lowered? Let’s make an agreement between all the political forces as we have already done in some sectors such as bionanotechnology, the automotive sector, and we are doing it in the agro-industrial sector. We can do it around hydrocarbons and LNG.”
The Economy Minister questioned the fact that a large percentage of Argentines have 86,000 million dollars in tax hideouts in the United States, “because unfortunately they do not trust our currency. We are finishing closing an agreement between the AFIP and the IRS (USA tax entity). )”, said the minister and concluded: “Here it is said that Argentina is a rich country, but the reality is that it is a country with resources that it has to transform into wealth”.
In addition to establishing his position regarding the motto Give in to grow chosen for this year’s meeting that takes place in Mar del Plata, Massa stated that the Argentina must return to having twin surpluses. “The best moments in Argentina were when there were twin surpluses,” said Massa, emphasizing that in those years “there was growth (of the economy) that allowed distributional improvements.” And he completed: “We have to return to the guiding principle of fiscal and commercial surplus, accumulation of reserves, investment and development with inclusion.”
The reserve
Massa closed the “Public Finance” block that took place from ten in the morning at IDEA. The minister’s turn was as soon as the debate between economists ended Martin Redradodirector of the Capital Foundation; Marina Dal Poggettor, executive director of Eco Go Consultants; Hernan Lacunza, former minister and director of Empiria Consultores; Y Osvaldo Giordano, Minister of Finance of the province of Córdoba. He was focused on the need to advance in a stabilization plan, normalization of the macroeconomy and compliance with fiscal rules.
The biggest applause went to the only woman at the table, when she said: “We are discussing what color we are going to paint the house when we have not yet raised the foundations.” “The fiscal rules started with Néstor Kirchner; with Lavagna we had a Fiscal Responsibility Law. We need to agree on what spending we want and how we finance it; It is necessary to discuss a stabilization program first, which does not avoid the debate on how we become more competitive. Because stabilization per se doesn’t work. Closure gets you nowhere.”
