The government tries a new ‘patch’

Ecuadornews:

The task is still pending. After 19 months in office, President Lenin Moreno has yet to orchestrate an economic plan that is carried out every month. At least that is the view of sectors of the opposition that accuse the authorities of placing ‘patches’ on the national economy.

The last measure to cut the fuel subsidy is an example. The revision of the price of super gasoline was announced mid-year and it was offered to keep the costs of other derivatives such as extra gasoline and the eco-country. Five months later, those products will be more expensive.

For political groups, the measure announced by the Minister of Economy and Finance, Richard Martinez, is not only unpopular but also demonstrates the authorities’ continuous’ trial ‘. The Social Christian Party (PSC), for example, emphasizes that what is obtained by raising the cost of gasoline is lower than what the State continues to spend. The promise of austerity, said the bench, is not evident in reality.

The mayor of Guayaquil, Jaime Nebot, even put figures to the theory. The reduction of 400 million dollars for the elimination of the subsidy is equivalent to 50% of what is spent monthly on salaries and wages of the public sector.

CREO is not convinced by the government’s economic measures either. Guillermo Lasso said that the plan is not attached to the reduction of spending. “Public spending remains intact. There is talk of financing, but the sources of such financing are not specified, “he said.

The two political stores consider that the government’s formula for obtaining resources with taxes or eliminating subsidies is not correct. “When the people subsidize the state, it’s fine, but when the state compensates the people for their continued exaction, it’s wrong,” the PSC said in an official statement.

In an unusual scenario, the thinking of the Social Christian Party and that of CREO coincide with the trade unionists. Social groups also rejected the “new blow” to the economy of Ecuadorian families.

The groups even announce protests in the streets. The trade union leaders fear that the adopted measures have as a destination the rapprochement with the International Monetary Fund (IMF) for the contracting of more public debt.

As usual, in trade union press conferences, the government was accused of adopting “neoliberal” measures. They also accused Moreno and his team of taking negative decisions during the Christmas season to reduce the reaction of the injured citizens.

These measures forced the conformation of the National Citizens Assembly for Dignity and Rights. In the group are members of the Teachers’ Network, health workers, transport workers, Petroamazonas, self-employed workers and retailers, the Civic Assembly Plaza del Teatro, neighborhood organizations, university students, the Movement of Christian Professionals Militant for Life, artisanal fishermen and various women’s organizations.

Even the private sector rejects the announcement. According to the government, the reduction of subsidies will not affect taxi drivers because compensation will be applied. That forces companies like Uber to review the impact that the measure will have on its partners. The evaluation will determine what the transnational company will do in the country.

What does the government say about the wave of criticism? President Moreno said yesterday that during “40 years have escaped certain types of decisions that had to be taken inevitably and we have taken.” He also met with shipping unions to offer compensation.

The presidential adviser, Santiago Cuesta, explained that a monthly subsidy will be given to taxi drivers for $ 50. Those sectors, however, are not convinced either. Their representatives said that they do not want to be paid a subsidy, but that compensation be immediately at the gas stations.

The postures

There is an economic plan

According to Minister Richard Martinez, decisions are part of the four-pillar economic program. “First: fiscal sustainability. Second: social protection, equity and equal opportunities. Third: the reactivation of production, employment and competitiveness. Fourth: transparency and efficient management of public resources “.

The plan is neoliberal

For the social, student and worker sectors, the last announcement of Lenin Moreno’s government completes a puzzle that benefits entrepreneurs and those who have more resources. Those affected are the members of the popular classes who have to deal with unemployment and lack of resources. (I)

Source: https://www.expreso.ec/actualidad/gobierno-nacional-medidas-economicas-presupuesto-KB2535927