The current Minister of Economy of Argentina, Sergio Massa, was the winner of the first electoral round in the presidential elections this Sunday (22), after winning 36% of the total votes, compared to the 30% received by the libertarian Javier Milei, from the coalition A Liberdade Avança .
This unexpected leadership by the Peronist to take over the management of Casa Rosada is accompanied by a strong monetary impact from his Silver Plan, which has already used the equivalent of 2% of Argentine GDP funds to pass on state subsidies to the population.
The government’s latest spending involves freezing the price of fuel and public service fees in the country, which tend to increase with uncontrolled inflation and the supposed unpopularity of the current government in the economic crisis.
On the eve of the elections, Massa defended in his campaign new transfers of transport subsidies in Argentina so that passengers pay less than 5% of the price charged.
In the current economic context of an Argentina in crisis, transport without subsidies would increase the train ticket to 1,100 (R$15.75) Argentine pesos and the bus ticket to 700 (R$10). The same happens with electricity and gas tariffs.
Massa’s promises in this catastrophic scenario, where the country’s economy, which was already worsening during Alberto Fernández’s government, is increasingly sinking, call into question his government proposal to stabilize inflation, since state spending tends to increase and reserves of the Central Bank are negative.
At the end of August, the Minister of Economy announced a series of measures to alleviate the drop in the population’s purchasing power due to the 22% devaluation of the peso that he himself validated on August 14.
Tax benefits were presented to small and medium-sized companies and the payment of extraordinary bonuses for Argentine retirees and workers, in an attempt to curb inflation in the country, which already exceeded 100%.
The leadership of Peronism comes at a time of rising food prices in the country, which have increased by 25% to 30% in some sectors, according to local traders.
Debt with IMF
Amid the new subsidies offered by the Argentine economy minister and presidential candidate, Sergio Massa, the country needs to comply with the payment of a debt with the IMF, after signing a refinancing agreement in 2022 estimated at US$57 billion ( around R$276 billion), of the debt contracted in 2018, during the government of Mauricio Macri (2015-2019).
Second round in November
Sergio Massa will compete for the country’s presidency with the libertarian Javier Milei, on November 19, in a second round.
The numbers released by the National Electoral Directory (DINE, in its Spanish acronym) show that Massa won the first electoral round with 36.05% of the votes, against 30.39% for Milei. Patricia Bullrich appears in third place with 23.68% and remains out of the race for the country’s presidency.
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