A quarter of the moratoria generares double benefit

The decision to extend the moratoria (pension without contributions) for three more years shows that the consequences of poor decisions in the pension system continue to be underestimated. While long-term strategies are proposed (such as the commercial deal with the EU), in the social security prevails opportunism. (more…)

Five tmes less foreign investment than in Chile and Uruguay

The call to the president of the opposition bloc in the Senate to integrate the electoral formula of the ruling party had a good impact on financial markets. It is a strong signal that if this alliance can advance with structural reforms, Argentina could emerge from its long decadence. (more…)

1.2 million people with double pensions

The claim of former president Cristina Kirchner to obtain two privileged retirements is not an exceptional case. Privileges and duplication of coverage are the rules, not the exception, in the Argentine pension system. Sustainability and equity demand a profound pension reform to bring rationality. (more…)

7 years without growth in salaried private jobs

Since 2012 the labor market’s performance was worse than the economy’s. This is reflected in an almost null growth of salaried jobs in private firms. To reverse the situation, in addition to economic growth, a thorough revision of labor market regulations is needed. (more…)

Universalize the promotion of the knowledge economy

With a broad consensus, Congress passed a law to promote knowledge companies. If the same incentives were applied to the rest of the economy, the positive impacts would be multiplied. For this to happen, it is essential to extend the consensus in Congress in favor of a strategy for the public sector reengineering. (more…)

Unifying taxes it is possible to lower their burden

Lowering the tax burden at the expense of losing public revenue contradicts the zero deficit target. In Córdoba province, the financial and administrative pressures on small taxpayers have been reduced increasing public revenue. This has been obtained by unifying national, provincial and municipal taxes.

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PAMI has a structural insufficiency of resources

The health coverage of retirees receives few resources given the high elderlies’ health care demand. Keeping the influx of retirees in the scheme will aggravate the shortage. A recent policy change promoting that people preserve the health coverage associated with their job when they retire will improve sustainability.

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Double coverage in the pension system is growing

In the list of topics proposed by the government to be agreed with the political parties, one key point is to give sustainability and equity to the pension system. Though there are several problems, one particularly destabilizing factor is the sustained increase in double coverage in pensions. (more…)

The zero deficit target is not enough to put an end to the crisis

Even though the primary deficit has been falling, the rise in country risk reflects a deep distrust in Argentina’s ability to repay its public debt. The way out is not to change the cabinet or the candidates for the polls, but to take steps in the direction of structural reforms demonstrating the decision to build fiscal solvency.

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Instead of abandon it, the fiscal consensus should be deepened

The government announcements to alleviate the crisis include re-freezing utility prices. Thus, a pillar in the goal of reducing public spending and eliminating inequities is canceled. Instead of regressing in such a strategic issue, such as utility prices, a deepening of the Fiscal Consensus should be worked.

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