July 30, 2014
‘Argentina is going through a transition to solve its energy-related problems’
Cabinet Chief Jorge Capitanich recognized the impact of energy subsidies in the State’s fiscal health but he stressed that Argentina is going through a transition period in order to solve problems caused by energy imports needed for economic growth.
Capitanich pointed out that the cost of energy imports and its effects on the government’s fiscal budget are necessary at this moment. “As a country we are going through a transition to solve problems caused by energy purchases needed to sustain growth,” he stated in his daily press brieifng at the Government House.
“On the one hand we subsidy energy to encourage industrialization, keeping energy cheaper for industries, [turning them] more competitive” the official explained, “and on the other hand, [the subsidies] benefit consumers by rising disposable income”.