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 home and hikes in international energy prices.
The move could put an end to three years of back-and-forths between President Alberto Fernández and Vice President Cristina Kirchner on how to deal with the issue. Former Economy Minister Martín Guzmán had proposed mild tariff hikes in the past (below inflation for most users, and above only...
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