Latin America

Despite market-friendly turn, Kirchnerites support new Economy Minister

Upon taking office as the country's new economic tsar, Sergio Massa announced big subsidy cuts — which have been taboo for left-leaning Peronists

President Alberto Fernández of Argentina (left) and newly-appointed Economy Minister Sergio Massa hug each other. Photo: Néstor J. Beremblum/Alamy Stock Photo
President Alberto Fernández of Argentina (left) and newly-appointed Economy Minister Sergio Massa hug each other. Photo: Néstor J. Beremblum/Alamy Stock Photo

Sergio Massa, the new Economy ‘Super’ Minister of Argentina, took office on Wednesday evening in a ceremony that seemed closer to a presidential transition rather than a simple cabinet change. Mr. Massa, whose office also takes charge of the Agriculture and Production ministries, quickly announced his first batch of reforms.

The most noticeable move was a stronger-than-expected cut in electricity, natural gas, and water subsidies, which currently explain a significant chunk of Argentina’s budget deficit. They amount to 3 percent of the country’s GDP — a figure that has been growing by the day amid rising inflation at...

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