June 7th, 2024
1. The President and the Minister of Economy participate in the 10th Latam Economic Forum
President Javier Milei and Minister of Economy Luis Caputo participated in the 10th edition of the Latam Economic Forum, in which economists, political analysts and public officials discuss the most important current issues. Caputo tried to convey tranquility in an event with businessmen: “The worst is over, we are in a clear recovery.” “When we solve it, bye-bye cepo.” “We are not going to disappoint them. And if the country starts to grow, we will lower taxes. We are very close to that and that is why I believe that the level of aggression against the Government has intensified lately,” he said. The president, for his part, used the opportunity to explain the inheritance received, the latest measures and why the economic program he is carrying out will continue. “Every time they want to break the fiscal balance I will veto everything.”
El Cronista: La promesa que Milei les vendió a los empresarios para calmar la incertidumbre del mercado
2. The Chamber of Deputies approves the new retirement formula
In the Chamber of Deputies, the different blocks of the opposition approved a bill to implement a new pension mobility formula different from the one imposed by President Javier Milei through DNU 274/2024 issued last March. The initiative also includes an eight-point increase in pension assets due to the inflationary peak recorded last January, which rose to 20.6%. The vote resulted in 160 positive votes, 72 negative votes and eight abstentions, mostly from the left. The ruling party and its Pro allies rejected the opposition initiative because, in their opinion, it will have a negative impact on the fiscal balance that the government is trying to preserve.
3. Javier Milei attended Agroactiva
Javier Milei participated in the agricultural sector event, Agroactiva, and traveled to the province of Santa Fe for the first time since he was elected President. There, Radical Governor Maximiliano Pullaro was waiting for him. Together with his allies from the Central region, Rogelio Frigerio (PRO) from Entre Ríos, and Martín Llaryora (Hacemos Coalición Federal) from Córdoba, they inaugurated the event. In his speech, Javier Milei assured that the economy is already “bouncing back” and that the number of “poor and indigent” will decrease. Likewise, he strongly criticized the Congress for proposing laws “that go against the fiscal surplus” and emphasized the situation inherited from the previous government. “We had a monetary imbalance worse than in the Rodrigazo, a bankruptcy in the BCRA even worse than in Alfonsín’s 89, an inflation rate of around 5000% per year and social indicators worse than in 2001. The worst crisis in the history of Argentina. We are not complaining about that. We are prepared.”
Perfil: Milei en Agroactiva: “No estamos nerviosos con lo está pasando en el mercado cambiario”
4. Electricity and gas increases made official
Javier Milei’s government made official this week the details of the removal of subsidies to energy tariffs that will start to be applied in June as part of the transition to a new assistance scheme. All users, but especially middle- and-low income residential users, will pay more for the electricity and gas they use but will also have new lower subsidized consumption ceilings. Residential users could receive increases that in some cases will exceed 155% for electricity according to the first private estimates and official calculations. In the case of gas, the increases are more moderate, up to 30% with respect to previous bills. In any case, no residential, commercial or industrial user will pay the full cost of the energy consumed, so all of them will be subsidized.
5. The Minister of Economy announces that May would have closed with a fiscal surplus
The Minister of Economy, Luis Caputo, announced that May would have closed with a fiscal surplus for the fifth consecutive month, something that had not happened for more than a decade. During the month, AFIP revenues rose 10.7% annually in real terms, which meant the first real increase after 8 months of decline. However, it is expected that the same will not happen next month. The economic consulting firm LCG explained that “the increase is due to the liquidation of the tax by companies that closed their balance sheet last December and were favored by the devaluation.”
El Cronista: Mayo tuvo superávit, pero puede ser el último: los factores que presionan el gasto