November 1, 2014
Gov’t slams UIA's Méndez, opposition leaders and defends subsidies policy
Cabinet Chief Jorge Capitanich defended the government’s subsidies policy after the head of the Argentine Industrial Union Héctor Méndez called for “economic adjustments” yesterday. “[The government] is encouraging “industrial development,” Capitanich said and praised energy subsidies as one of the key aspects of that policy.
“The government’s subsidies policy encourages energy costs reductions which promotes industrial development,” the Cabinet Chief said. “Subsidies mean a lower cost for the industry and more production.”
He stressed that energy is one of the main industrial inputs and that the subsidies scheme is tied to Argentina’s energy self-sufficiency strategy, which includes “YPF’s expropiation, the deal with Repsol, encouraging investments to reduce energy imports”.
“I find it hard to understand [Méndez’s] criticism,” the Kirchnerite official said, reiterating the positive impact subsidies have had in the industrial sector. “UIA leaders should base their opinion on reasons,” he said.
He also bashed opposition’s leaders economic ideas. “Argentines should worry,” he said and stressed that if implemented, they would mean a 78-million pesos income reduction and the elimination of AUH [child welfare benefits].