Emmanuel Alvarez Agis’ diagnosis on the Argentine economy and his criticism of the government: “unforgivable”

Former Deputy Minister of Economy and Director of PxQ Consulting, Emmanuel Alvarez Agis, Participate in + interviews, program hosted by Louis Navarcio In LN +, he diagnosed the Argentine economy as he stated that A stabilization program is needed to restore the purchasing power of wages.

During the exchange, the economist pointed out To amend tax matters implemented by the government and explained the reason He refused the position to be Minister of Economy. He also expressed his opinion on the personality of Sergio Massa at the head of the Ministry of Finance.

Alvarez Agis talked about the agreement with the International Monetary Fund and emphasized that the lending institution tends to push the economy to higher inflation and slightly less activity. “It is a bitter medicine,” he described.

Amid all this, and a few days after Massa returned from Washington where he was meeting with the authorities of the fund, he considered that he did not see the government. “The Political Conditions of Risking the Stability Plan”. “If Macri and Cristina sit down to agree politically, the economic plan will be viable,” he said. “It can be done,” he added, “but I’m very sorry they didn’t.”

With this in mind, he questioned the ruling party’s position with a strong statement: “They’re not trying it’s unforgivable because people are with this.” The economist argued, “It just doesn’t make sense. If you go out into the street and ask people what you need to do to improve their lives, people will say, ‘Raise my salary.’ But what is clearly not the best way to have a good time, what you have to do is lower inflation.” The most advanced thing you can do, the most comprehensive, the most patriotic and the most popular is to lower inflation and it seems to me that for this reason it is unforgivable not to try.”

Although he avoided going into detail about the intimate conversations, Alvarez Ajes referred to the offer he had received from the nation’s president, Alberto Fernandez, to fill The position of Minister of Economy which was left vacant following the resignation of Martin Guzman.

“If I am in Argentina, with the situation that we have, I am ready for the middle and upper class to make an effort regarding how much they will pay for electricity, gas and water. I am ready to tell small and medium businesses that they will not get such cheap financing. If in In parallel, we dared to draw up a plan for inflation of 20% per year, which we have already signed. So … the government did not have this decision,” the economist asked about the reasons that led him to reject the proposal.

He continued: “I tell you something about political talks, you don’t go to a table and someone says to you: Hello: are you a minister?” No, they are more like dancing. ‘What do you think of this? What would you do? as you see me? as i see you? ‘. In the conversations I had with everyone’s front, What I see is that there are no political conditions to risk a stabilization plan.”

after, after The new inflation index for August will be known this Wednesday, which amounted to 7%, the economist said: “It is very worrying. I see it The Argentine who used to live with inflation believes that 100% inflation is twice as bad as 50%.. But it is not so, I’m already starting to get other nature. Because inflation is accelerating, the type of problem you’re experiencing is out of proportion to how much it’s accelerating. It’s like understanding that going by car at 100 km / h you can control it, and at 200 km / h you have another kind of risk. Same thing with inflation.

The former deputy minister argued that The debate within the government wrecked the economy. He developed: “The Argentine economy needs one of those plans where we get back in six months to 3% monthly inflation – it was called Australia, spring, convertibility – there are a lot of examples. I think the problem is in the government not addressing This issue has to do with two factors: first, that this should have been the first and not the last policy; and second, that stabilization plans require precision, experience and good design, but also Lots of political power to persuade and sometimes to pressure to act according to the new rules that establishes a stabilization plan. He said resolutely: “There is no political force because there is no political agreement, because the front itself has a problem where to go.”

Regarding the adjustment in terms of subsidies implemented by Sergio Massa, he said that it is “eight times larger than Guzmán”. The subsidy cut Guzmán wanted to make of silver was 0.1% of GDP. Guzmán comes out with public accusations of wanting to make a mod, etc. The abolition of subsidies provided by Massa is equivalent to 0.8% of GDP, The mod is eight times larger than the mod Guzmán was directed for. It’s like saying, ‘I’m going to take out that guy who takes me there’ and you put someone to take you to the same side, but faster, said Alvarez Agis.

At another time, the economist said that he is in dialogue with the entire Argentine political spectrum throughout the split and that he maintains communication with previous presidents and with Cristina Kirchner. He gave a remarkable description of the main political figures in the country. Cristina, Mauricio Macri, Sergio Massa, Alberto Fernandez They are above the average politician”, He said. But he explained, “Now, you ask me: ‘What do you think of the performance?'” “And I don’t like it.”

“I was part of the Kirchner government of which I am proud. But today I don’t feel represented because I don’t have the courage and courage to have an anti-inflation program. I don’t feel like there is a plan called ‘Let’s try to get to 2023’ I don’t feel represented, I don’t want to go anywhere. “I want Argentina to reform itself. I also don’t feel represented when a presidential figure is delegitimized in public. This has been verified. It has been concluded that there are certain limits that Kirchnerian ideology has crossed that I do not agree with.”