MercoPress, en Español

Montevideo, May 21st 2019 - 08:45 UTC

Argentine industry says ‘inflation’ is main issue to address by next government

Saturday, August 20th 2011 - 06:45 UTC
Full article 4 comments
UIA Vice-president Juan Carlos Sacco, “the President now has all the power’ UIA Vice-president Juan Carlos Sacco, “the President now has all the power’

Argentina’s powerful Industrial Union (UIA) warned that if President Cristina Fernandez de Kirchner is re-elected next October one of the top issues of her agenda will be taking action in order to control “a concerning inflation”.

The message follows last Sunday’s landslide victory of President Cristina Fernandez in the national simultaneous primaries when she managed more votes than all her potential competitors put together, anticipating a promising result for her re-election bid in October.

“For over a year now, the relationship between the President and the UIA has changed a lot. We’re working side by side with the Government. By looking at the primary election results, we can predict that the government’s economic agenda will continue. So we will have to expand it”, said UIA Vice-president Juan Carlos Sacco.

“We have to expand the government agenda because we need more investments, like Cristina Kirchner says. That’s why we say that in order to have more investment, we need to have more legal predictability and labour laws” insisted the UIA official.

Sacco added that the President “has all the power to make decisions after the electorate showed such strong support last Sunday”. However he insisted that his peers are “worried about inflation.”

“I believe that, now that the Government is theoretically expected to win the October presidential elections, it will be able to focus on ways to control it” he explained.

Although until a year ago the UIA and the administration of President Cristina Fernandez were confronted over corporations’ profit sharing with workers, having union representatives in corporate boards and criticisms for not investing enough in Argentina, the situation has since changed radically.

The Argentine government policy of substituting imports, limiting or slowing the access of foreign goods to the domestic market plus creating and protecting Argentine jobs has triggered a manufacturing boom and growing employment.

However inflation remains controversial. Despite the Argentine government acknowledgement of a systematic price hike, it does not, however, consider this to be “a general trend” but rather temporary distortions generated by the lack of sufficient supply and investments.

This nevertheless does not impede Indec, the national statistic bureau from publishing inflation indexes which are way below what private consultants indicate and organized labour, aligned with the government, refer to when discussing salary contracts.

Categories: Economy, Argentina.

Top Comments

Disclaimer & comment rules
  • Pedro

    If Cristina curbs inflation she must curb Government spending that is the driving force of the economy. She is trapped. She can't control inflation, she can only continue lying about it until the inevitable happens. Reality in the form of hyper inflation will result

    Aug 20th, 2011 - 06:10 pm 0
  • lsolde

    Then l can buy a cheap farm & hire sr Think as my gamekeeper.
    Well, he has the dogs & horses already.

    Aug 21st, 2011 - 10:34 am 0
  • yankeeboy

    Front page news this weekend is the rumor of a peso devaluation. The Ks have been steadily devaluing the peso for years, it is getting faster now, and soon they may have to make it 6/1 just to keep the economic engine going.
    All hard currency is fleeing the country as soon as it comes in so there is not too much more they can do. It's not like they can steal more pensions or nationalize any other productive companies. Those have already been looted. What to do..What to do....

    Aug 21st, 2011 - 12:44 pm 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!