Overview
- Domingo Cavallo, who aired his critique on Tuesday, said President Javier Milei’s economic program is unclear and driven by unnecessary political confrontation that obscures policy goals.
- Cavallo questioned the RIGI investment regime for privileging large firms and recounted an exchange with Economy Minister Federico Sturzenegger in which Sturzenegger said Milei expects RIGI benefits to reach all companies within two years.
- He urged the removal of 'distorting' taxes and called agro-export duties (retenciones) an 'aberration,' saying lower taxes can boost activity provided public spending is kept under control.
- Cavallo warned that cuts to public investment, especially infrastructure, raise costs for businesses and that keeping capital controls in place risks exchange-rate and reserve vulnerabilities.
- Drawing on his 1990s experience, Cavallo pressed for lifting remaining currency controls to attract dollars and reserves, and said clearer, broader reforms would increase Milei’s chances of reelection in 2027.