The Minister of Economy, Martín Guzmánclosed the Forum of the Argentine Business Association (AEA) at the Sheraton Hotel and affirmed that Argentina “cannot abandon the path of building a respectable currency”, by putting aside completely the speculations of a dollarization.
“To abandon the currency is to recognize a defeat as a Nation-Statewhich would severely damage the Republic,” Guzmán said during his presentation.
Nestor Kirchner gas pipeline
Guzmán highlighted the “strategic” nature of the Néstor Kirchner gas pipeline, pointing out which is framed “in the needs faced by Argentina“.
“We will move forward with the strategic work of the Néstor Kirchner gas pipelinepromoting technical tenders that are adapted to the country’s needs,” he said.
subsidies
In his speech, the minister also referred to the need to “normalize and reduce spending on subsidies” that are not aimed at social protection or generating greater productive capacity.
“Rate segmentation is looking for crack down on a scheme that has a pro-rich bias and the commitment of all public officials is fundamental so that Argentina can advance in a structural change to strengthen the State and equity”, he pointed out in that sense.
Synergy between public and private sector
Guzmán also noted the importance of strengthening the “synergy” between the public and private sectors and displayed a series of slides in which he highlighted the achievements of his management, linked to the post-pandemic economic growth, the recovery of employment and the incentive to the energy sector.
Likewise, he highlighted that the personal distribution of income had an improvement in 2021, although recognized that the problems related to poverty continue to be a “great challenge”something that was aggravated by the pandemic that “deepened inequality”.
unexpected rent
Regarding the bill of Unexpected Rentand in the face of the criticism he received from some businessmen, he explained that “It is not a new tax”, but “an aliquot for one year in a context of war”.
“There are other countries that have already adopted it, such as Italy and Great Britain. and others who are analyzing it,” said the minister.
“There is no progress if it is not shared. When something as extraordinary happens, like war, our responsibility is act so that Argentina progresses on the basis of equity”, he added.
Fiscal deficit
Guzmán also highlighted the importance of reducing the fiscal deficit and the monetary issue to fight inflation. “We want to continue advancing on the path of reducing the fiscal deficit, as well as the monetary issue,” admitted the head of the Treasury portfolio when referring to the evolution of prices.
In this regard, he made it clear that the macroeconomic issue “occupies a central space in the dynamics of prices and it is necessary to attack imbalances in the Argentine economystarting with the productive imbalances themselves, generating foreign exchange to be able to grow”.