Three days after his backhand election to the primary, the argentine president Mauricio Macri announced on Wednesday a series of measures to "give a boost" to the purchasing power of the middle and popular classes and attempt to catch up before the presidential election of 27 October. A minimum wage increase, bonuses, one-time, tax cuts and a freezing of gasoline prices for three months: these ads come up in the wake of the primaries of Sunday, which are seen as a dress rehearsal before the presidential election.
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The liberal president out, that aims for a new term of office, has been harshly beaten by Alberto Fernandez, a peronist moderate, and its colistière Cristina Kirchner, the former president of the centre-left accused in several corruption cases. They got 47% of the vote in the primary, compared to 32% for the tandem composed of Mauricio Macri, 60 years old, and the leader peronist Miguel Angel Pichetto. If such a result were to be confirmed at the October election, Alberto Fernandez, 60, would be proclaimed the winner in the first round: according to the electoral law, to be elected, it is necessary to obtain at least 45% of the vote or 40% and an advance of 10 points on the second.
The measures announced Wednesday are designed to "give a boost" to the purchasing power of Argentine people, said the head of State in a televised speech before the opening of the markets. "What I asked you was very difficult, it was like climbing the Aconcagua", acknowledged Mauricio Macri about the efforts required of the Argentine since his arrival in power. Overwhelmed by two monetary crises in 2018, having lost 50% of its value, its currency, Argentina had called on the international monetary Fund (IMF) to the rescue to get a loan of more than 57 billion dollars in exchange for a cure of austerity. "You are tried and tired. Getting to the end of the month has become an impossible task, many families have had to reduce their spending," continued the president."Retrieve the electorate,"
Among the measures included an increase in the minimum wage, the extent of which has not been specified. Currently, he is 12.500 pesos (190 euros). In addition, a bonus of extraordinary 2000 pesos (30 euros) will be paid to employees and another 5,000 pesos (76 euros) to officials and security forces. A reduction of income tax is also in place for employees. Finally, small and medium-sized enterprises will be able to spread over 10 years the repayment of their debt with the tax and the price of gasoline will be frozen for 90 days.
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a cost of 40 billion pesos (approximately 600 million euros), these ads relate to "17 million workers and their families as well as all small and medium-sized enterprises", said the president. Mauricio Macri hopes to make up for its delay before election day, to calm the social unrest in this country stuck in recession and the markets, which fear a return of the left in power. "These measures reflect the need to focus on the sectors that have been most affected by the economic crisis and who have turned their backs on the president during the primaries. They also demonstrate the need to recover a portion of these voters", found Paula Garcia Tufro, an analyst from the Atlantic Council, a think-tank in Washington.
The spectre of a payment default, as in 2001, has also resurfaced since Sunday, when the first repayments to the IMF are expected in 2021. On Monday, the day after the primary, the Stock market had plunged by almost 38% and the currency had lost almost 20%. Announcements the president, Macri does not seem to calm the markets: the argentine currency has continued its fall on Wednesday, is belittling of 6.19%, to 62,18 pesos for a dollar.Updated Date: 17 August 2019, 00:00