This is the last article you can read this month
You can read more article this month
You can read more articles this month
Sorry your limit is up for this month
ENERGY prices are set to rise by a massive 30 per cent in Buenos Aires by the end of the year, with economists warning that Argentina is on the brink of recession.
The country’s Energy Minister Javier Iguacel announced the steep rise today, telling a press conference that the increases in the city are meant to adjust for inflation.
Prices of energy, water and gas bills have rocketed by more than 1,300 per cent since November 2017 in some parts of the country as President Mauricio Macri’s government slashed subsidies as part of its economic austerity plan.
Mr Iguacel sought to allay fears, telling reporters that the gas price rises “will not be more than 25 per cent, while the increase in electricity will be less than 30 per cent.”
Demonstrations took place in the capital last week as the G20 leaders gathered for a summit in Buenos Aires.
Trade unions, students and activists blocked roads in protest at the economic policies of the International Monetary Fund (IMF) after the government secured a $50 billion (£38bn) loan in June.
They feared a return to the economic crisis of the early 2000s and rejected the austerity package imposed by Mr Macri’s government.
Left and Worker’s Front opposition politician Nicolas Cano described the IMF loan as a “colonial pact, a harder structural adjustment against the people.”
The terms of the loan mean Argentina must implement a deficit reduction programme of 1.3 per cent of GDP by 2019.
Mr Macri’s administration has already presided over a massive jobs cull with 73,800 private-sector jobs axed since he came to power in December 2015.
Mr Iguacel explained that Argentina was hoping to strike a deal to export gas to neighbouring Chile in a bid to stave off an impending recession.
Poverty levels remain high at 29 per cent, with inflation at around 25 per cent for the year. The Argentinian peso has dropped against the dollar, with Buenos Aires residents being forced to participate in “barter clubs” to afford basic goods including sugar and flour.
Mr Iguacel sought to blame previous administrations, including those led by Nestor Kirchner and Cristina Fernandez for Argentina’s economic situation, saying they left a “heavy inheritance” for Mr Macri’s government to deal with.
You can’t buy a revolution, but you can help the only daily paper in Britain that’s fighting for one by joining the 501 club.
Just £5 a month gives you the opportunity to win one of 17 prizes, from £25 to the £501 jackpot.
By becoming a 501 Club member you are helping the Morning Star cover its printing, distribution and staff costs — help keep our paper thriving by joining!
You can’t buy a revolution, but you can help the only daily paper in Britain that’s fighting for one by become a member of the People’s Printing Press Society.
The Morning Star is a readers’ co-operative, which means you can become an owner of the paper too by buying shares in the society.
Shares are £1 each — though unlike capitalist firms, each shareholder has an equal say. Money from shares contributes directly to keep our paper thriving.
Some union branches have taken out shares of over £500 and individuals over £100.
You can’t buy a revolution, but you can help the only daily paper in Britain that’s fighting for one by donating to the Fighting Fund.
The Morning Star is unique, as a lone socialist voice in a sea of corporate media. We offer a platform for those who would otherwise never be listened to, coverage of stories that would otherwise be buried.
The rich don’t like us, and they don’t advertise with us, so we rely on you, our readers and friends. With a regular donation to our monthly Fighting Fund, we can continue to thumb our noses at the fat cats and tell truth to power.
Donate today and make a regular contribution.