Guzmán will try to contain prices with incentives for companies

– President Roberto Feletti resigns.
– Do you already have a replacement?
– Yes, William Hang.
– Well, thank you Feletti.

The talk, as he was able to reconstruct Clarion, It happened this past Monday at noon, when Alberto Fernández left the Casa de la Patria Grande Néstor Kirchner. Martín Guzmán called him immediately after meeting with the Secretary of Domestic Trade at the Palacio de Hacienda at 1:30 pm Face-to-face, Feletti told him he was “tired”.

In fact, removing him was a snub in moving his place under the orbit of the Economy, one of the steps in which Guzmán empowered himself after failed attempts to restore him and deprive him of power. . The minister contracted two rapid changes: the release of Guillermo Hang in Domestic Trade and Agustín D’Atellis on the board of directors of the Central Bankreplacing the Hang.

The two men from Guzmán’s rock were ready to go out into the field. The minister enlisted them amid growing tension with Feletti and accelerating inflation. Hang accompanies him to Llao Llao to evacuate the worries of the red circle about exchange policy and the lack of dollars. YD’Atellis, former adviser of Kirchnerism, advises Guzmán in the shadows.

For the time being, the idea is to advance a new strategy in certain fields, with fewer controls and more dialogue with entrepreneurs. The new mantra is to stimulate more supply (investment). In terms of prices, the diagnosis was “hyper tightening” did not yield results. Feletti began his administration with a 90-day freeze, increased controls and regulated baskets.

They noticed one fact: the economist mentioned in Kirchnerism landed in October and since then, in seven months inflation accumulated 35.7% and in food, 41%. In his resignation letter, Feletti acknowledged that the tools had become “inadequate” due to the war and reiterated the need for “coordination” as well as new measures to “decouple” prices.

The last clash was in April, when he directly instructed the minister for inflation, called for increased sanctions and warned that the outlook would “be ugly.” This is before knowing a year-on-year inflation of 58%, the highest record in 30 years. now, her departure was re-read in some offices as Cristina’s stepalthough in La Rosada they deny it.

“It’s not just an issue of price control, it’s in macroeconomic policy, many of these variables are controlled, but there’s something missing in relation to the formation of prices, which do not come out and Internal Trade is transferred to the Economy because Guzmán has more relationships with businessmen, “they explained to Casa Rosada.

Hang must now negotiate “adaptations” to Care Prices at the next review scheduled for June 7. Over the weekend he talks to Guzmán. The idea is there is “better agility” among food manufacturers, who will be allowed to touch-up to regulated products in exchange for a larger supply to gondolas.

With the passage of the Economy portfolio during Kirchnerism, the technician will also need to start the wheat stabilizer fund, the subsidy scheme promoted by Feletti to lower the price of industrial flour. The bakers gave it a go, but the grinders blocked it. “No authority”they ensured from La Rosada.

However, Feletti’s change, is not enough to solve the internal problem within the government regarding detention. Unlike the Minister of Agriculture, Julián Domínguez, the President continues to believe that the problem is the lack of votes in Congress. In the Cabinet, they made sure Guzmán agreed and on more than one occasion he said: “This is not the moment.”

At a poverty level of 37%, the closure of wheat exports to India and the covers of The Economist’s warning about famine put pressure on the fifth floor of the Economy. Close to Alberto Fernández, they also noticed an accelerated deterioration of the international scene. In the case, D’Atellis expected last week that inflation could reach 70% in 2022.

In this framework, the President asked for “help” from Arcor owner Luis Pagani to curb inflation and met with Paolo Rocca a few days ago. Techint CEO was invited today 10:30 a.m. to the announcement of stock easing so oil companies can access more foreign currency. Without the votes of the ruling party, the decree would have the support of businessmen, governors and unionists. Signs of the new era.