Sergio Massa’s away match: in the US they praise his pragmatism, but don’t give him a blank check

The United States welcomed Minister Sergio Massa with open arms, gave him presidential treatment and received all the signs of support I was looking even if, beyond the effervescence, the photos and the enthusiasm of the moment, He doesn’t take a blank check from Washington or Wall Street, where they want to see concrete results.

Massa arrived with a large delegation which included his business team, consultants, photographers and videographers. Officials have also joined on specific issues, such as YPF chief Pablo González; the Secretary of Energy Flavia Royón; Central Bank President Miguel Pesce and former Minister Silvina Batakis, among others. Ambassador Jorge Argüello joined Washington, which drew up much of the agenda.

The minister and most of the entourage traveled aboard the Tango 04, which was sold by President Alberto Fernández because the trip had to be rescheduled due to the attack on Cristina Fernández de Kirchner and, according to what was stated by the massist environment, granted the scope of “state visit “.

And so it was why Massa had an agenda beyond a minister: managed to be received by officials who move the springs of the US government. “We missed seeing Joe Biden,” one man in his entourage boasted.

Minister obtained photos from the State Department; at the White House with the National Security Advisor Jake Sullivan and the man for Latin America, Giovanni Gonzalez. He had his meeting with the head of the Fund Kristalina Georgiev and got the secretary of the treasury Janet Yellen he received him in his ministry, something that other ministers of the Fernández administration did not realize.

It is true that failed to close the second revision of the program, which could have been an ideal pin, but the issue has already been defined and confirmed by the Fund and by the delegation have made it known that Friday – the day on which the announcement should be made – was an appropriate date not to hinder the debate on this week to the Budget.

Washington is a city that is not generous in its gestures and photos matter. There’s no doubt the minister gets strong political support from his tour, but don’t lose perspective either. Massa has arrived in the United States, as one expert described Clarione– What “the last bullet”the last option left to the government to be able to stabilize the Argentine economic chaos.

The White House does not benefit from an economic or political earthquake in the region, needs an orderly Argentina, with a “reliable” regional interlocutor and a person who is pragmatic and unites his voice in the Front of All is welcome here, not “ideological” as the Kirchnerists consider, and this does not challenge them in sensitive areas such as Venezuela, Nicaragua or Iran. “These issues have not been touched upon, here you already know how Sergio thinks”, they say in his delegation.

“Interlocutor” was the word that most defined him on this tour. The oil workers also said it, who specified that Massa was someone who knew the sector, who understood its problems, had a proposal and – strangely enough for one who is usually described by his opponents as a “trader” -, He didn’t promise them what he said he couldn’t do right now, like raising stocks.

In his subsequent meetings in Washington with Biden officials and the IMF, Massa said “everything America wanted to hear” someone close to him defined: that he will rigorously achieve the objectives of the program with the Fund (which provides for a fiscal adjustment of up to 1.9% of primary GDP in 2023, the election year); who will order the economy; which will give stability to the markets and which will invest in sectors of great interest to the US, such as energy.

Beyond the visible support, in Washington they also marked the court of Massa. In two brief communications – from spokespersons for the State Department and the Treasury -, the Biden government has made it known that, beyond the minister’s words, the important thing is that he really does it: They encouraged him to “implement reforms to rebuild credibility, stabilize markets and lay the foundations for sustained growth”. And in the US foreign ministry they highlighted their interest in “consolidating commitments” with the IMF and their interest in energy and food security.

On Wall Street they have closely followed Massa’s journey, but they always look beyond. Lisa Schineller, This was stated by the CEO of S&P Global Ratings, the agency that evaluates country risk Clarione That “Massa’s visit was successful in reiterating its commitment and intention to take measures to stabilize local economic conditions before next year’s elections. He also underlined the pragmatic approach of the IMF and multilateral credit institutions which have reaffirmed their support for the fragile Argentine economy in the midst of a complex global context ”.

He added that “Mass adjustments in various sectors, including energy rates, monetary policy rates, debt swaps, seem to demonstrate a strong intention to try to keep the economy as stable as possible in view of next year’s elections “.

“This is in line with Washington’s expectations of pragmatism as long as Argentina continues to make good faith efforts to comply with the policies set out in the Extended Facilities program with the Fund.”

And here the expert points it out Wall Street is not satisfied with just a few ads and seeks even more: “We also hope that after next year’s elections, Washington and the markets seek further and deeper structural and political reforms reducing inflation, the exchange rate gap and strengthening economic growth rather than “keeping the economy stable”, which is also necessary for any update of Argentina’s credit rating. “

Jorge Piedrahita, The CEO of Gear Capital said so Clarione that “the visit had elements of a media show with photos, rumors of secret meetings and well-coordinated and articulated press releases. The fact is that the roots of Argentina’s problems have not been resolved or changed ”.

He added that “Massa has gained time without solving the fundamental problems, which is typical of a political strain in Argentina. The mistrust continues and investments will not arrive until a change of political sign is seen in Argentina ”.