Unlike other entities in the productive environment, the powerful Argentine Business Association (AEA), instead of referring to Javier Milei’s speech before Congress, decided to support the already christened May Pact invoked by the President. That’s how he defined it “a very positive step.”
In a statement distributed this afternoon, the EEA said: “The decision to move forward with a pact that aims to address problems that have hindered For years now, the development of our country has been a very timely decision.”
He adds: “Indeed, for a long time Argentina has been limited in its ability to grow, generate employment and enable substantial improvements in the living standards of its population, due to restrictions resulting from its recurring fiscal crises. The proposed pact aimed at establishing a substantial agreement on fiscal balance and the need to reduce high public spending, is extremely relevant and urgent.”
The body maintains that “the same can be said – as we have repeatedly underlined by the EEA – of the need to carry out a tax reform that significantly reduces the very high pressure tax on the formal sector of the economy, starting with the elimination or reduction of distortive taxes”.
And he underlines the labor and pension reform: “The references to the urgency of updating labor standards with the aim of generate more formal jobsas well as working on the necessary update of the pension legislation to make it more sustainable”.
They conclude: “As AEA we support the desire to achieve a profound transformation of the country such as that expressed in the various points indicated in the guidelines of the Pact. In this way it will be possible to mobilize the energies of the private sector, the only way to guide our country on the path of economic and social development”.
Milei announced before the Legislative Assembly, in his opening speech of the ordinary sessions of Congress, that he will summon the governors of the 23 provinces and the city of Buenos Aires to the May Pact, an agreement on 10 essential points to “refound the country”. The signing is scheduled for May 25 in the city of Córdoba.
It proposes the inviolability of private property, a non-negotiable fiscal balance and the reduction of public spending to historic levels, around 25% of GDP.
Also a tax reform that reduces the tax burden, simplifies the lives of Argentines and promotes trade.
And the rediscussion of the federal tax distribution to “put an end to the current exorbitant model forever.”
Another point is “the commitment of the Provinces to progress in the exploitation of the country’s natural resources, a modern labor reform that promotes formal work.
Furthermore, “a pension reform that gives sustainability of the system, respect those who have contributed and allow those who prefer to enroll in a private pension system.” And to political reform structural reform that modifies the current system and “realigns the interests of the representatives and the represented”.
Another point of the Pact is “the opening to international trade, so that Argentina returns to being a protagonist in the global market”.
Judging by those who make up the AEA, their support is overwhelming. The entity is chaired by Jaime Campos. Its vice presidents are Paolo Rocca, Héctor Magnetto, Sebastián Bagó and Alfredo Coto. Marcelo Argüelles and Martín Migoya appear as members. Alberto Hojman is its treasurer.
It is composed, among others, in a personal capacity, by Carlos Miguens, Cristiano Rattazzi, Federico Braun, Luis Perez Companc, Alberto Grimoldi, Eduardo Elsztain, Marcos Galperín, María Luisa Machiavello, Charlie Blaquier, Mariano Bosch, Claudia Álvarez Argüelles, Martín Brandi , Alejandro Butti, Martín Castelli, Sergio Kaufman, Pablo Roemmers, Gustavo Salinas, Miguel Urus and Amadeo Vázquez
Source: Clarin
