Hernán Lagunza: “Unsustainable reforms are useless”

“Today we are better than the first day.” The report belongs to former economy minister Mauricio Macri. Hernan Lagunza, who supported some of the measures being taken by Javier Millay's government but raised the need for the reforms to be “sustainable”. Otherwise they are useless, he said.

Casa Rosada sent the plan to Congress this Wednesday tax collection It will be debated in the delegation at the same time as the omnibus legislation. According to the text of the plan, “The national government is obliged to balance its financial accounts, and to do so it must rely on two fundamental pillars: Public expenditure reduction And this Improvement in tax collection”. The set of activities includes profits, personal assets and money laundering.

In this regard, Lagunza pointed out, “After the disorder caused by the previous government, this government has the capacity to institutionalize the financial order it started. “A combination of chainsaw, freezer and blender that will last a semester but not a year”. For this reason, he said, “reforms that are not sustainable are ineffective.” “We believe in a more open, less regulated economy and require fiscal balance as a primary condition for reducing poverty,” the former Cambiemos official added.

More than four months into the current administration, despite a drop in activity and consumption and a rise in poverty, economist Milley opined that the country is now “better off” than when he took office. “The government received a very difficult legacy – negative balances, a gap of 150% -, suppressed inflation will explode. The first part of the plan to eliminate the risks of hyperinflation, default and corralito, was observed from the beginning, and today we have a 20%, neutral net balance gap,” he said. However, he realized the severity of the crisis: “It is also true that the recession is very severeProduction is declining more than 6% per quarter, which is 20% per year.

For Lagunza, the economic activity maintained during the last term of the administration of Alberto Fernández in the government and Sergio Massa in the Ministry of Economy was “artificial.” “Consumption of prescription drugs supported by 'small money scheme' and lagging dollar”As stated in the reports All News (TN). Now “progress has been made,” he insisted.

However, he reiterated that the measures implemented so far will not help to continue on the growth path: “Be careful, what worked for you in the first few days does not mean it will work for you in the following days.

According to Lagunza, “slow inflation is associated with an exchange rate anchor that lags every day.” “When you hear the government dismissing this problem by saying that the market is validating it… beware that the market will eat the curve; yqThe market eats the curve, I respect that, I don't idolize it, but ultimately the speculator wins and loses; But when the government eats the curve, 46 million passengers suffer.

“If you go into an alley, there's only one exit “A new devaluation is dangerous to the progress of the economic program.”, warned that. “It will reset the model in X months, but I feel it's too late. Let's not make that mistake of buying lower inflation in April at the cost of risking higher inflation in August,” the former minister continued.

“The government has a political weakness because it does not have governors or many constituencies, so it must show early victories to maintain support in the street and not dilute it,” he analyzed and, according to opinion polls, “the people's bank for now” the administration of La Libertad Avanza . “Polls say there is room. I am not an expert, but I am a user of that information,” he concluded.