NewsWhore
05-21-2008, 05:30 PM
Contrary to what Minister Temistocles Montas told reporters, former Central Bank governor and economist Bernardo Vega told reporter Aleida Plasencia from Hoy newspaper that he did not think the coming months would be very agreeable, especially in the area of economic policy. He called on President Fernandez to start his adjustments now, and not wait for his new term in office to begin what has to be done. According to the prominent economist, three elements are involved in the needed "adjustments": Fewer subsidies, austerity, and tax reform. Vega said that the state-sponsored subsidy programs on energy and food have grown so much that "the government's only options are: to reduce or eliminate the subsidies, increase taxes or implement a drastic austerity program. The former Central Bank governor also said that these programs will be undertaken either with or without the International Monetary Fund. He said that a series of programs undertaken without the IMF agreement in place would be "chaotic, politicized, and would affect the confidence factor."
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