BUENOS AIRES, June 6 (Reuters) – The growing political tensions between the government of libertarian Javier Milei and Congress after opposition deputies gave half-sanction to an increase in pensions creates an erratic climate in the stock market in the face of speculative rearrangements of wallets.
The new retirement formula would imply an increase in spending of approximately 0.4 percentage points of GDP, it is rejected by the ruling party and would be vetoed because it threatens the fiscal balance according to statements by Milei.
“There is no possibility that the government can cover the expense that this increase means, because it does not have the resources,” Chief of Staff Guillermo Francos said in statements to Radio Continental.
In this framework, the leading index S&P Merval of Buenos Aires fell 0.58%, to 1,561,636.82 units, with a balance of 151 listed companies on the rise and 79 on the decline, after falling 0.66% in the previous session and collapsing 4.7% on Tuesday.
“An attitude of greater caution prevails among operators waiting for the tensions and political uncertainty that have been rising recently to ease, which is opening space for a stage of more decisive correction,” said an economist.
In the midst of renewed political tensions, Milei seeks for the Legislative Branch to advance in the vote on the so-called “Bases Law” and the fiscal package that already has half a sanction in the Senate.
-See greater increases in the S&P Merval
-See the biggest drop in the S&P Merval (Report by Walter Bianchi; Edited by Hernán Nessi)
Reuters
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