LATIN-AMERICA

President Macri to halve his government as crisis worsens

BUENOS AIRES – In a new step to battle the worsening economic crisis in Argentina, president Macri announced on Monday the elimination of several ministries. Another plan is the raise on new grain exportation taxes. Macri defended the measures by calling them necessary to tackle the economic crisis.

Amid the economic crisis that has Argentina suffering, president Macri announced a deep reorganization within his government. The austerity measures include the elimination of several ministries, which will be merged with other ministries. The decision was taken after a long meeting in Olivos, Buenos Aires. In addition, President Macri stated on television he will allocate more economic aid. The government will also strengthen food plans for Argentines who suffer from poverty and have been affected by the 30% inflation that is currently shaking the country´s economy.

According to new El Clarín, President Macri announced that the ministries of Science and Technology, Culture, Energy, Health, Tourism, Environment, Work and Modernization, and Agriculture will cease to exist as stand-alone entities. The measure of chopping and merging ministries came joined with plans to raise the grain export taxes, as the country is the world’s third-largest soy producer. The measures must help the government to prevent the Argentinian peso to drop any further in value.

More measures to come

Regarding to the raise in taxes, treasury Minister Nicolas Dujovne said, “About a half of next year’s deficit reduction will come from spending cuts. But almost all the increased revenue will be funded with an export tax of four pesos per dollar on exports of primary products.”

Crisis hits Argentina – President Macri asks for US$50bn IMF tranche

President Macri defended the tax measure the government has to take, alleging that it’s due to the emergency situation in the Argentine economy. “We know it’s bad: the tax reform goes against everything we want to foster: more export to create more quality jobs,” said president Macri, promising the measure will be temporary, only while the economy recovers.

Ministry Dujovne is to meet with the International Monetary Fund on Tuesday, aimed to discuss accelerating the loan of US$ 50 billion as requested by the government. The situation in Argentina has forced president Macri to pledge further austerities, and the treasury minister is expected to announce a series of economic measures on Monday.

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