Massa to call businessmen and unions to 90-day stability plan

“We will be strict and not allow speculation,” minister says

Economy Minister Sergio Massa has announced he will convene businesspeople and union leaders to draw up a “stability plan” for the next 90 days, during a meeting with members of social organizations and unions. The objective is a price and salary agreement that provides some certainty in a context of annual inflation above 100%.

“Until Friday, we’ll continue to stabilize the markets and the macroeconomy, and during the weekend we’re going to summon [union leaders and social movements] to work together to achieve a 90-day stability path,” he said in the Economy Ministry, accompanied by the head of the Central Confederation of Labor (CGT), Héctor Daer, and the leaders of the social organizations Movimiento Evita, Fernando Navarro and Emilio Pérsico.

According to a spokesperson in the Economy Ministry, “from Saturday, the Minister will call businessmen, trade unionists and social movements to work together on the basis of the economic order”. 

Regarding this week’s run on the peso, which led to the informal dollar peaking at just below AR$500, Massa said some people tried to “cheat” over “rumors” and generated uncertainty.

The Minister also said that the government will provide certainty regarding “prices, social assistance, social inclusion programs and productive programs.” He added that it was “inexplicable” that companies are “trying to increase prices over the base of the informal dollar surge, because imports are made at the official dollar rate.”

The Minister asked union leaders and social movements to help guarantee “supply and prices.”

“We will be strict, and not allow speculation,” Massa said.

Héctor Daer, the General Confederation of Labor’s (CGT) joint secretary general, said the CGT would help the government with “support and trust,” and that they wouldn’t join the “speculators in the financial market that harm everyone’s economy”. 

He addressed those who are involved in price-making and said that “for everyone’s good, they have to take prices back,” referring to those who increased their product or service prices during the run on the peso and have not restored them despite the informal exchange rate receding by around AR$30 per dollar. 

Emilio Pérsico, leader of peronist Evita Movement, told Massa during the meeting that he can count on them “to go see who increased their prices.”

Daniel Funes de Rioja, President of business chamber, the Argentine Industrial Union (UIA), said that he was not aware of calls for the group to participate, but that “of course, if the minister calls on us, we will attend and listen.”


All Right Reserved.  Buenos Aires Herald