Caputo's Confidence and Warning
Economy Minister Luis Caputo expressed confidence in President Javier Milei's victory in the 2027 elections, stating that he believes the President will win in all scenarios. In an interview on the ruling party's streaming channel, Carajo, Caputo emphasized his belief in Milei's success but acknowledged the need to prepare for any outcome to prevent suffering for Argentines. He said, 'I consider the possibility of being wrong and act as if I will be, and if what I believe doesn't happen, we will take drastic measures as we did in October last year.'[S1][S2]
Caputo attributed his optimism to fiscal balance, monetary policy, and anticipated investment inflows, suggesting a significant dollar influx. He emphasized his preparedness for potential mistakes and mentioned reserve purchases and the pursuit of a swap agreement without disclosing details.[S1][S2]
Brazil Runoff and Bilateral Ties
Minister Caputo praised Brazilian Senator Flávio Bolsonaro's first-round victory in the presidential elections and expressed optimism about improved relations with Brazil if Bolsonaro defeats Luiz Inácio Lula da Silva in the runoff on October 25. He highlighted the historical, institutional, and commercial ties between Argentina and Brazil, emphasizing the alignment with Bolsonarismo, which he believes will enhance dialogue and mutual cooperation.[S1]
Earlier Comments on Risk and Reforms
On October 2, Caputo addressed the rise in country risk, which had reached 600 points, attributing half of it to the global context affecting all nations with an external shock that Argentina would have weathered briefly in different circumstances. He also acknowledged fears of a return to the past, saying, 'Thinking the past will return underestimates the Argentine people.' Caputo affirmed the government's commitment to its current path, promising further reforms, including tax cuts, regulatory reductions, infrastructure development, and financial cost reductions. He emphasized the government's desire to prevent currency devaluation, stating that devaluation leads to low wages for Argentines. Caputo urged confidence in Argentina's natural and human capital resources, stating that the country is on the right path compared to its neighbors.[S2]
