the crisis with Spain, the President’s trip to the United States and the fight over the Bases Law in the Senate

With the approval of the Bases Law in Deputies, the government showed itself capable of carrying out its promises. It was the photo that the Fund was waiting for to advance a new agreement; businessmen to make short-term decisions and large investors from abroad to define whether, finally, they are going to risk some capital in the country when the reforms begin to take place.

But behind the photo some urgent needs of the government are hidden: the first is the need for resources, the fiscal package that provides fresh funds immediately. In the first quarter the government reduced spending by 35% in real terms (discounting inflation). Almost half of the contribution to this cut came from the liquefaction of spending on pensions and salaries. The rest was chainsaw: fewer subsidies, public works, transfers to provinces and universities. But as of last month, pensions and other social benefits tied to the mobility formula are no longer liquidated. The fiscal package that the Senate will discuss is key, because it will provide the resources to compensate. The government estimates that between Profits, the moratorium and money laundering, some $4 billion could be raised, the equivalent of 0.7% of GDP. Read more