Martín Guzmán, at the Hotel Alvear with American businessmen in Argentina
Economy Minister Martín Guzmán ended the week as he began it: criticizing two central figures in Kirchnerism’s politics, Cristina Kirchner and Sergio Massa.
On Monday the minister, for the first time, pointed out to the public the shortcomings in terms of “macroeconomic consistency” of Cristina’s governments. And he pointed out: “Where do energy subsidies of 3, 4 points of GDP work?” and “In what country is there a deficit funded by a currency that people no longer want?”
Yesterday, Friday, it was Massa. He responded sarcastically to a proposal made by the deputy earlier to raise the salary floor where workers in a dependency relationship pay income tax.
“It is clear that the floor on which workers in a dependency relationship pay (the tax on) income will be updated based on the evolution of inflation,” Guzmán said in response to a query from the state agency Télam about the Massa project.
Beyond the fact that the minister did not specify the answer to the deputy’s proposal (when that floor will rise), the public’s response proves two things. First, the minister will challenge the public and be willing to continue doing so, both the former president and the president of the House of Deputies. Second, like Kirchnerism, Massa acted within weeks to mark the field for the minister. Although perhaps not as intense as the vice president.
In Economics for a long time Massa’s actions were warned, that they did not accompany his administration. The deputy was critical of the timing, speed and manner of negotiating debt restructuring with investment funds and with the IMF. Added to this is the suggestion that the defeat in the election should be the reason for the replacement of the Cabinet and the Economy area is one of them. Massa will seek to coordinate an economic team to replace the current one that allows for improvements in expectations, in the business climate and improved electoral opportunities for 20’23.
This week Massa received economists at his home who privately criticized Guzmán’s administration: Martín Redrado, Marco Lavagna, Miguel Peirano, Diego Bossio and Martín Rapetti sat around the table. “Sergio called us and I haven’t talked to him in a long time,” said one of the group members.
If in Kirchnerism Guzmán’s dissatisfaction was seen and exposed at the vice president’s meeting last Friday at the National University of Chaco Austral, in Massism it was even more deception. But yesterday this week will be more visible first the release of the meeting of economists critical of the minister and then the proposal for income tax reform so that no more people pay income tax as a result of rising inflation.
“He was comfortable with the debate,” they explained from Casa Rosada last week referring to the minister’s statement about the former president’s ideas on Friday.
The head of state is determined to support the head of the Treasury Palace. This is what he did on the tour in Europe where he also criticized Cristina Kirchner. He said his government is not hiding poverty by varying its policy of manipulating Indec’s poverty figures.
Data published by Indec of the price index variance of 6% in April -which in the year accumulated an increase of 23.1%-, prompted Massa to ask Guzmán to raise the salary floor by the Government. from which workers in a dependency relationship pay income tax. The minister’s response is unchanged and will be increased as stipulated by law.
“It is clear that the floor on which workers in a dependency relationship pay (the tax on) income will be updated based on the evolution of inflation,” Guzmán said in response to a query from the state agency Télam.
In a concise statement, the minister added: “This is what the law has reasonably established so that the benefit to workers is not lost to inflation, and this is what the Government will do.”
Massa’s request and Guzmán’s response seem to open up another internal to the ruling party.
Source: Clarin