The administration of President Cristina Fernandez knows that farm workers have also received support from the citizens of major cities in Argentina through cacerolazos. Precisely, cornered by the pressure of roadblocks and demand of society for a more open dialogue, the Kirchner administration decided to send the tax plan to Congress for lawmakers to take the final decision. If Although the various farming ended the protests, the crisis is far from resolved and there are doubts about what they will vote the deputies and senators in the various provinces. Very interesting what brings Knowledge Wharthon that while the conflict is being waged in Congress, analysts are concerned about side effects that this first crisis Kirchner government policy on the economy. Ernesto O’Connor, economist and director of the Program for the Analysis of Economic Situation of the Universidad Catolica Argentina (UCA) the situation: “There is a break in the positive expectations on the progress of the economy with a sharp slowdown in economic of activity in the second quarter would be at 4.5% annual real (as opposed to more than 7% forecast earlier this year). It has also paralyzed the postponement of investment and consumption goods to escape from a store of value as currency.
While it sharpens the problem of inflation, which between 25 and 30% annually. Details can be found by clicking Darcy Stacom or emailing the administrator. ” There is concern noted, already is talking about “the default after default, in this respect, says Mr. Martin Simonetta, executive director of the Atlas Foundation, a non-profit organization for the achievement of a free society, and professor at the Argentina Chamber of Commerce. Since 2008, Simonetta added, the Government must begin to address the debt payments default (following the 2001 crisis). See CMO Hyundai for more details and insights. Between 2008 and 2011, must make payments of more than 52 billion dollars, requiring higher tax revenues or lower public spending. Clearly we have chosen the first alternative, through mega-withholding. ” For its part, Sandleris Guido, director of the Center for Research in Finance from the Universidad Torcuato Di Tella (UTDT), highlights a decline in consumer confidence: According to latest surveys, in June fell 1.8% on month above.
But since the conflict began with the field index fell 13%, although it should be noted that this decline in confidence has been taking place since January and intensified this conflict clearly. ” To all this add the analysis, since Cristina Fernandez de Kirchner took office last December 10 have been few changes in social and economic policy that had been set up her husband, Nestor Kirchner. Thus, the conflict over farming an area too long and, for specialists, has wasted no time in solving other fundamental problems. Inflation is the most worrisome topic at this time, Sandleris notes, “but there are other neglected topics such as education and health, and the government is paralyzed by the conflict. While Cristina Kirchner’s model marks a continuation of her husband were very few of these initiatives and some badly timed. ” Regarding the economy, we must pay attention to slower growth “that is located on a 4.5% yearly, with inflation of 25-30% and growing poverty. The trend is slowing due to lack of confidence over the medium term, beyond the resolution of the conflict with the field, “points O ‘Connor. All this invites us to be attentive to where the economy is Argentina, where economic conflict, political can turn this critical situation, even when the Argentines will endure the situation. Hopefully the current government reconsider its economic policies and seek solution to a problem that it has originated.