Argentine President Alberto Fernandez seeks political fix to economic woes

Argentine President Alberto Fernandez is looking for a political solution to the country’s economic crisis with his appointment of a long-term politician as a new “super minister,” analysts say. The South American country has suffered years of economic crisis, with some 37 percent of its population now living in poverty. Inflation for the first half of this year alone topped 36 percent, and is predicted to reach 80 per cent by the year’s end.

With that crisis-backdrop, Fernandez on Thursday named Sergio Massa, the current head of Congress’ lower house, as a new super minister to oversee the economy, development and agriculture ministries as well as relations with international organizations.

“Massa is not an economist but a politician. But the point is that Argentina’s crisis is political, it needs a person with broad shoulders and political skill,” analyst Carlos Fara told AFP. Massa brings sufficient consensus in the leadership of the ruling Frente de Todos coalition and may be able to make decisions that are not popular,” said Fara. The markets did not falter on Friday, one day after the appointment.

“The markets’ reaction was positive because they see in Massa a pragmatic figure who has good relations with business leaders and the markets,” economist Nery Persichini from the GMA Capital consultancy told AFP. Massa will assume his new position on Tuesday after the Chamber of Deputies has appointed his successor. He will then announce his first measures the following day.

“It is very important that a politician is in charge of the economy. Putting technical people in charge did not work. This will generate peace in the markets, it’s a pragmatic move,” Pablo Tigani, director of the Hacer economic consultancy, told AFP. Fernandez said the new super minister appointment is aimed at creating “better coordination” on economic policy.

As part of Argentina’s negotiations with the IMF, it has committed to reducing its public deficit from three percent in 2021 to 0.9 per cent by 2024.

One of Massa’s toughest challenges will be to increase Argentina’s available international reserves, which analysts say are at critical levels, as well as reduce the fiscal deficit. I’m not a saviour. Politics doesn’t need saviors, it needs servants,” said Massa on Twitter. Argentina’s problems cannot be solved by one person, they will be resolved by teamwork.

Source: eNCA

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