The specialized period Financial Times elaborated an analysis on the landing of Serge Massa in the National government and the direction of the measures announced by the new minister, highlighting that “undertakes to restore fiscal order«. Nevertheless, warned him about the need to close the internal crack of the front of all. The official assumed the commitment on Wednesday, when taking the oath in the presence of 500 people.
The article stated, according to NA that “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 tackle 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, said on Wednesday.
Hard Economic Forecast
The newspaper considered that “the former president of the Chamber of Deputies of Argentina faces the unenviable task of saving a economy wracked by runaway inflationdwindling reserves and a growing pile of domestic debt, while navigating political infighting ahead of next year’s election.”
Regarding the minister’s announcements, the report stated that “in his first speech since he was appointed last week, Massa, 50, announced a series of measures that include a promise to end the printing of money to finance the budget, financing it instead through deficit reduction or private sector borrowing, along with creating dollar reserves and revising state subsidies in order to reduce the country’s large deficit.”
Along these lines, he described the expectation generated by the arrival of the leader of the Renovating Front to the Cabinet: “Bond prices have risen since Massa was selected by President Alberto Fernández to supervise a new department dedicated to economic, manufacturing and agricultural. Investors seem to be more optimistic about Massa’s ability to lead reforms to reduce inflation than his predecessor, Silvina Batakis, who lasted 24 days in office”.
Problems to be solved by Sergio Massa
On the other hand, the publication referred to the internal problems present in the government coalition, pointing out that “the vice president of Argentina, Cristina Fernández de Kirchner, has separated from the President regarding how to fix the economy. She and her allies believe that the Peronists should spend more to protect voters from rising inflation heading into the presidential race.”
Consulted by the newspaper, the economist Fernando Marull assured that “today the economy is extremely vulnerable”. He also remarked that the country “needs a strong economic plan that implies forceful measures such as a devaluation, higher interest rates. Although Massa has political support, we are still far from having signs that there is a solid economic plan”.
Finally, the British outlet described that “poverty is high and the country is expected to enter 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, Fernandez decided to install Massa at the helm of rescuing the country’s finances, hoping to reassure investors and the public.”