“The economy is in recession,” said Prat Gay

Buenos Aires, July 8, 2012

The former Central Bank president and current national congressman for the Civic Coalition party, Alfonso Prat Gay said the country is already in recession and that the national government attempts to pass the “fit” and the political cost to the provinces.

Prat Gay said that the stocks exchange deepens the recession and this creates more inflation, affecting sectors of construction, the automotive industry, and agriculture.

He indicated that the Kirchner administration started “talking about fine tuning but did not work out so well because they quickly had to turn back when subsidies were elminated and tariffs reaised. They could did it for the reform of the Central Bank Charter.”

Against this background, the cingressman said that the national government wants to charge the responsibility to the provinces. “The government is the one with all the extra resources, and the provinces depend on the generosity of government.”

Prat Gay said that in this scenario, the provinces are raising taxes, something the president has criticized in Europe on numerous occasions.