In recent weeks, two years of government have been completed and, on the other hand, the end of the health emergency has been decreed by it. At the same time that the complete articles of the Law of Urgent Consideration (LUC) have been ratified by popular will. In other words, the government understands that the pandemic has passed its most complex stage and has all the tools it considered necessary to carry out its government program.
Therefore, there are no more excuses. There is no longer a “cursed inheritance” or a “spoke in the wheel” that is worth, meanwhile the Uruguayans by a huge majority once again place the economic situation (inflation, employment, wages, poverty, etc.) as their main concern in the polls of public opinion. Inflation (fundamentally caused by international factors) continues to eat up part of the salary. Just as it does with passivities, and we are headed for a third year of losing their real value.
previously
But international causes do not find adequate public policy responses, neither in their magnitude nor in their timing. Signals should have been given to combat inflation well before. Since May 2021, annualized inflation has been growing and since October 2021, future inflation expectations have been rising. On the other hand, lowering VAT for 30 days on products that represent less than 4% of the consumption basket is insufficient.
Undoubtedly away from the needs and hardships of the Uruguayans. If the relevant partners of the government coalition propose additional measures to combat the effects of inflation, they are clearly saying only one thing: that the measures of the economic team are insufficient.
In other words, the members of the government themselves do not believe that the economic team is doing what is necessary. Faced with this, the public absence of the voice of the economic team is striking.
It would be very important to know what it intends to do to mitigate the effects of the general rise in prices, particularly of the foods that most affect the lower-income sectors, and what it intends to do in the long term to combat the local causes of inflation.
Is the government going to convene employers and workers to re-discuss the salary increases provided for in the Salary Councils? Is the government going to expand the products on which exemptions will apply? Will you do it for a more reasonable period of time or will it be just for 30 days?
Contradictory measures
Moreover, in some cases the measures carried out by the BCU seem contradictory with those carried out by the MEF, it is a moment of maximum coordination, focusing on the people.
Meanwhile, requests for additional measures are added within the government itself, two benches are opened in the President’s party. In addition, the mayors of the interior contradict their own party before the episode of the vote for the Canelones trust. This growing disorder generates concern with a view to the future Rendering of Accounts, which will be key in the middle of the government term.
On the other hand, the structural reforms that the country needs to grow at rates above 2%, which the MEF itself marks as the trend rate and which is absolutely insufficient, continue to be conspicuous by their absence. From the beginning, there are no more excuses, strategic vision and clear leadership are needed to move forward. In economic matters, the pilot is needed.
