During midday on Wednesday, the Minister of Economy -Luis Caputo- and the head of the IMF had their first meeting within the framework of the G-20 summit taking place in San Pablo (Brial). Geogieva confirmed on her social media that she supports “the authorities’ sustained efforts to restore stability, support the most vulnerable and generate support for reforms.” That is, she supports the savage adjustment measures imposed by the government.
Excellent meeting with 🇦🇷 Argentina Minister @LuisCaputoAR on the margins of #G20Brasil. I welcomed the sustained efforts of the authorities to restore stability, support the most vulnerable, and build support for reforms. pic.twitter.com/w8bBTbER6O
— Kristalina Georgieva (@KGeorgieva) February 28, 2024
Luis Caputo is participating in a summit of ministers of the G20which is made up of: Germany, Saudi Arabia, Argentina, Australia, Brazil, Canada, China, South Korea, United States, France, India, Indonesia, Italy, Japan, Mexico, Russia, United Kingdom, South Africa, Turkey and the EU.
Milei’s Economy Minister It carries out an economic plan that in just two months accumulates inflation of 51.3%, loss of real salary of 13% in one month. In his networks, the minister said that Georgieva “Celebrates and supports the measures and results obtained by this new administration.” It is logical, it is a direction that includes a strong adjustment in spending as the Fund likes.
Break with the Bottom
Milei and Caputo garner support because they have been applying the IMF program without hesitation. At the end of January they agreed to a commitment with the international organization for a new disbursement of US $4.7 billion, which will essentially be used to pay maturities of the stand-by program, contracted by Mauricio Macri.
The organization had approved the shock adjustment through devaluation, inflationary liquefaction and tariff increases. The result was the largest real cut in primary spending in January in 30 years. The items that were reduced the most were contributory retirements and pensions, energy subsidies, real direct investment and total transfers to provinces, which accounted for 70% of the adjustment.
Milei guaranteed the financial surplus with the hunger of retirees. For every $100 of financial surplus obtained, $64 was taken from retirees. In total, the State stopped spending $750,000 million (in relation to what was allocated for retirements in January 2023 updated for inflation). At the same time, debt interest payments showed an abrupt jump (139.1% in the year-on-year comparison).
Deepening the link with the Fund will only deepen the attack on retirees, workers and poor people. To put a stop to this growing social and economic crisis, it is urgent to break with the IMF and its delivery pact. At the same time, they demand a plan of struggle and national strike from the union centers and with preparation from the bases to defeat Milei’s DNU and the IMF.
Source: www.laizquierdadiario.com
