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IT IS NOT NECESSARY TO VETO THE PENSION LAW BUT TO IMPLEMENT IT PROPERLY

With the argument of protecting the fiscal surplus, President Milei threatens to veto the bill that modifies the pension indexing rule. However, the bill protects the public accounts more than the government’s DNU. Therefore, in order to make the fiscal balance sustainable, the best alternative is to implement the law properly.   (more…)

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HANDING OUT GOODS IS THE WORST PRACTICE OF CLIENTELISM

Delays in the distribution of foodstuffs are causing intense controversy. This is not an isolated case, since the distribution of goods by the national government is a common practice. The solution is to eliminate the intervention of federal officials in areas that are the responsibility of the provinces and their municipalities.    (more…)

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THE PRIORITY IS THE REFORMS OF THE MAY PACT

The exchange rate appreciation and the special regimes for new investments provided for in the Law of Bases are a source of controversy. Without ignoring the risks of a cheap dollar and the need to attract investments, the most important challenge lies in the changes proposed by the May Pact agenda.         (more…)

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WAGES LOST A QUARTER OF THEIR REAL VALUE IN 6 YEARS

The CGT declared two general strikes against the new government. The fall in real wages has deepened in recent months, but the fall has come on for a long time. Real wages will not recover by questioning the ideas promoted by the government, but by deploying more technical and political capacity to implement them.         (more…)

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IT IS THE REFORMS THAT MUST BE ACCELERATED, INSTEAD OF DEVALUATION

President Milei questioned those who advocate accelerating the pace of devaluation of the official dollar. He argues that the dollar is not cheap, but Argentina´s internal costs are high due to the distortions of the economy. Therefore, what must be accelerated are the transformations proposed in the May Pact.         (more…)

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UNIVERSITIES NEED ORDERING, NOT ADJUSTING

The massive university protest put the discussion of the university budget on the agenda. Just when the government celebrates the fiscal surplus. Faced with chronic problems of underfunding and mismanagement, the solution is not to adjust but to improve the organization of the State, in this case, that of the universities.  (more…)

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EXCHANGE RATE DEVALUATION IS NOT A SUBSTITUTE OF STATE ORDERING

Inflation decreases with strong exchange rate appreciation. Inflation in terms of hard currency revives the debate on the level of the exchange rate. Devaluation is not the solution but a mere compensation for bad policies. Therefore, more important than the pace of devaluation is the pace of reordering the State. (more…)

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MORATORIUMS GENERATE DOUBLE PENSION BENEFITS

Moratoriums in the pension system undermine financial sustainability and equity because they generate double coverage. The government’s project to eliminate them is pertinent. But it would be convenient to accompany it with the elimination of the minimum of 30 years of contributions and perfecting the PUAM. (more…)

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LABOR LEGISLATION COVERS ONLY ONE-THIRD OF WORKERS

One of the 10 points that the government proposed for the May Pact is the updating of labor regulations. The deep and chronic deterioration of the labor market makes this reform unquestionable. However, its implementation will require much more technical and political expertise than what has been shown so far.      (more…)

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WHILE IN CHILE AND URUGUAY POVERTY GOES DOWN, IN ARGENTINA IT GOES UP

The high poverty rate in Argentina is a chronic phenomenon. Its main cause is the prevailing consensus for decades sustaining wrong public policies. Milei broke this inertia with disruptive ideas. However, he needs to develop more technical and political capabilities to implement them.    (more…)

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