Economist Martín Redrado proposed this Friday on LN+ that the government focus on an area that is not part of the public debate, but that could generate investments for billions of dollars. “Argentina in the world can be considered an environmental creditor. The world finances everything that is green, that protects the environment,” the economist remarked.

“Argentina can be seen in the world as someone that absorbs more carbon dioxide than it emits because of the quality of our forests and agriculture. The energy transition and energy security are the issues of the future that must be addressed,” said Redrado, who was president of the Central Bank of the Argentine Republic (BCRA) between 2004 and 2010.

Redrado stressed that “in the energy transition that the world is seeking, Argentina, in the area of mining and energy, has the possibility of being a leading player.” To this end, he said that the relationship with Latin America’s main economy, Brazil, is of utmost importance.

“I would recommend that we integrate international relations with economic and social policy. Beyond ideologies, Brazil is a strategic partner of Argentina,” said the economist, who was also president of the National Securities Commission (CNV) between 1991 and 1994. In terms of energy, Argentina can sell [to Brazil] by reversing a gas pipeline that already exists,” he added.

“What do you have to give to the private sector so that they can do this?” he asked. And then he answered: “Free availability of foreign currency. A law that says that 30% of everything exported can be left abroad and 70% continues to be liquidated at the BCRA. That would allow them to finance new investments and also take out the famous risk that tomorrow they won’t let you use dollars to pay for investments.”

The economist, while criticizing “those who tear their clothes with Milei’s DNU even though they have tired of making DNUs themselves,” remarked that he is “convinced that there are central issues that have to be dealt with by Congress.” In order to achieve a greater legal shield, he proposed “giving it the rank of international treaties, for example, if an agreement is generated between Argentina and the European Union or Argentina and Brazil, due to the 1994 reform of the National Constitution (CN) the treaty has the same rank as the CN.” “We give it legal and economic conditions,” he said.

“Of course, this government is just starting, it has ten days. He’s shown a lot of strength, he’s come in with a lot of dynamics, but he’s missing a plan,” he said, adding that “hopefully it will happen in the next few weeks.” Redrado welcomed the president’s call for extraordinary sessions starting Tuesday, December 26.

The former head of the BCRA insisted on achieving the necessary consensus in the National Congress. “Hopefully the laws will be with a special majority. For example, with regard to the ordering of public accounts, it would be good to have a special majority rule that goes beyond one year.”

“Who is going to invest, build the gas pipelines if they don’t have certainty in terms of the price of the dollar, the independence of the Central Bank, export policy,” he said. And, finally, he suggested that all the reforms proposed by the government could be divided between six and eight laws and insisted on the search for “durability” and achieving “special majorities, as was sought at the time in the loans from the International Monetary Fund.”

LA NACION