Economic definitions that Alberto Fernández would apply

Guillermo Nielsen, one of the economic spokesmen for the presidential candidate of the All Front, Alberto Fernández, gave a lengthy interview to the Brazilian economic newspaper Valor and presented the axes of a future government Fernández, if he is elected in October.

According to Nielsen, his management would be "similar to the beginning of the administration of Néstor Kichner" with much lower inflation rates, lower interest rates and tighter control of public spending.

"It is necessary to refer to Argentina since 2003, 2005 and 2006. It is here that we will find the type of economic policy that we propose.But of course, with some broader aspects of the social policy that characterized the government of Cristina But the essential One of the objectives of economic policy is to return as soon as possible to a sound fiscal policy and monetary policy allowing economic activity to operate in a mode of growth, which is not the case today in the country, "he said.

Here are ten of his most important definitions:

1) New regulatory framework for oil and gas

"We anticipate that the oil and gas revolution, which has taken 15 years in the United States, could happen in Argentina in half as much, we believe this is possible because the technology is already available and all we want is to change certain rules of the game, "he said, stating that taxes on this sector would be reduced.

2) Social Agreement to Reduce Inflation Levels

"It will be a very important agreement in terms of price and salary to moderate inflation, which is one of the big problems of Argentina and that the Macri government has worsened " , he said, adding that on the one hand, a price and salary pact would be concluded on the other, a fiscal and monetary policy coordinated with this pact.

"It would be a sort of Moncloa pact with preprogrammed price and wage increases, a sound fiscal policy and a monetary policy consistent with the objectives of this agreement," he added.

3) Renegotiation with the IMF

According to Nielsen, as Argentina has an agreement with the IMF, there are some issues that will need to be discussed with the Fund, but negotiations should also take place.

"It is not that we will do what we want, but there must be a negotiation, we will seek a greater degree of freedom under this agreement.We understand that if we win, we will have a popular mandate. given by the votes that authorize us and will require us to renegotiate the agreement with the Context ", he said stating that they would seek to renegotiate all: payments and conditions taking into account the reality economic and political of Argentina.

In this regard, he neither denied nor confirmed the possibility of a debt restructuring: "I think that we will have to give an adequate opinion when we are in government.This is not something something we can launch today, we must first wait for what situation the Macri government is going to leave.

4) Reasonable interest rate

For Nielsen, "the rate must be a very low real interest rate, one or two points in real terms". "The problem is that the Macri government will leave very high interest rates, especially because of a total lack of confidence.The Argentine company has long since lost confidence in the Macri government, and our task will be, firstly, to regain confidence. "

5) Need surplus

Beyond the budget balance, the former Secretary of Finance said that the level of debt requires the country to generate a primary surplus. "It is no longer enough to have a budget balance, it also needs a primary surplus, these needs will create tension in the budget."

6) Exchange policy with limitations

Nielsen said that there would be changes and would not govern "absolute freedom in the capital markets, which eventually characterized the Macri government". "There will be limits, but very reasonable, it will be necessary for the export dollars to enter the market in a time that we still do not know if it will be in eight or twelve months.But they will have to be liquidated. It is not possible that it will take years to liquidate exports. This creates a situation of instability in the currency market that we must avoid, "he said.

Regarding the exchange rate, he said that it would be floating: "I do not think that a fixed exchange rate is appropriate.We need to maintain a competitive exchange rate."

7) Against the control on the import

Fernández's reference was against import controls and yes for the increase in exports, which is the basis of their project for the oil and gas sector.

8) Retentions continue

The idea would be to delete them because they constitute a damaging tax, but he stated that this could not be done immediately. "With the financial problem left by the Macri government, it is very clear that we can not put an end to payroll deductions for some time, but it is not really feasible. but it is not feasible [suspenderlas]. We will have to see how we can reduce that. In any case, it is a very negative policy. No country has made progress by punishing its exports. This seems very inappropriate, a very irrational tax. "

9) good relations with Brazil

Beyond the crossing points between Fernández and Bolsonaro, Nielsen said that "the countries have neither friends nor enemies, have permanent interests": "Brazil has permanent interests in Argentina and Argentina has permanent interests in Brazil ".

10) In favor of the Treaty between the European Union and Mercosur

Nielsen declared the Front's position of all
It's very supportive of the agreement but they have to see what has been done because they do not really know the text. "You have to see the details of everything, then we have to take up the challenge, especially in Argentina, but also in Brazil, a healthier and more stable macroeconomy, so that the agreement with the EU can really bring benefits to the economies. "

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