'Dealing with the exchange rate and not other pressing issues first is a mistake,' UIA to Boudou

Economy Minister Amado Boudou met with UIA Argentine Industrial Industrial Union leaders, and he made clear that the pillars of the productive model are solid as he listened to the claims and demands of businessmen who discussed several issues, including competitiveness, prices, salaries and a need for financing.

The meeting is part of the social dialogue President Cristina Fernández de Kirchner called for, and enabled the Minister and UIA authorities to analyze issues related to the need of a new labour risks law and the bilateral trade relationship with Brazil, among other subjects.

Boudou said that businessmen have made requests from all sectors, and regarding the plea for the creation of a Development Bank, to make long-term loans in behalf of the State, he recalled “the loans of the Bicentenary Funds, that work as platform to keep on moving forward to larger levels of financing.”

Boudou highlighted the points in which there were coincidences with the businessmen, like the need to seek a better land distribution of production.

When Boudou was asked about the hike in prices, he said “we have to increase the offer of goods and services and achieving that investment is key and a very important topic for the Government and for the UIA as well. We will have a 22 percent level of investment in relation with the GDP,” added Boudou.

De Mendiguren said that “the exchange rate is one of the economic policies’ tools, but is not the only one. Changing the exchange rate without solving other lack of competitiveness issues is a mirage that only achieves a temporary advantage that prices eat up.”

The UIA leader also stated that his fellow businessmen expressed their concerns to Boudou regarding the cost infrastructure, which decrease the competitiveness when face with foreign offers.

Last week UIA officials met with Industry Minister Débora Giorgi.