"Milei's plan is creating a serious problem": Martín Guzmán's harsh warning about the economic program

Martín Guzmán reappeared with criticism of the government's economic direction. In an extensive interview, the former Minister of Economy explained why he believes Javier Milei 's austerity measures are causing "productive damage" and "a future crisis." He also spoke about his departure from the Frente de Todos (Front of All), his ties to Pope Francis , and the report he prepared with Joseph Stiglitz to reform the global debt system.

During his visit to the Paris Club, Guzmán presented the "Jubilee Report," a report commissioned by Pope Francis that denounces the devastating impact of debt on low- and middle-income countries. The report, prepared in conjunction with Nobel Prize winner in Economics Stiglitz and an international commission, proposes a structural reform of the global financial system. " There are more than 2 billion people living in countries that spend more on debt than on education or healthcare ," Guzmán stated.

Asked about the impact of Milei 's measures, he acknowledged that " defining inflation as the main objective was correct ," but warned that the way the adjustment was carried out caused "significant damage to production." "A serious problem is brewing today for the future," he stated.

Guzmán was blunt when referring to the new loan from the International Monetary Fund (IMF), which the government does not consider debt: " That is false. It is an increase in net public debt. If the reserves are spent, the debt remains, and the reserves are gone, " he explained. He also warned that operations are being carried out to "rent reserves," which implies further debt.

Regarding the employment situation, he noted that "unemployment has reached 7.8% and is rising." He indicated that more people are looking for work because their income isn't enough, and he denounced that the jobs being created are informal and of lower quality than those being destroyed.

Regarding his time at the Ministry of Economy, Guzmán emphasized that the debt restructured in 2020 was key, but acknowledged that internal divisions made it impossible to continue. "It was the most painful moment. We completely lost hope of moving the country forward," he confessed.

In assessing the results of Milei's plan, he highlighted the drop in inflation, but maintained that it is not a structural solution: " What we see today are certain levels of stability without prosperity and the accumulation of other problems that will eventually prevent the country from being able to establish a path of sustained poverty reduction ."

According to the former official, the capital flowing into Argentina today is only doing so because of the IMF's support: "No one believes this government has structurally stabilized the economy." He also warned about the lack of regulations on speculative capital movements, as occurred during the Macri administration: " That type of capital inflow already failed in 2018. "

The report he presented to the Paris Club proposes, among other measures, reviving the debate on capital controls to discourage the entry of speculative funds. " The goal is to ensure that countries receive medium- and long-term investments that contribute to development ," he explained.

Guzmán asserted that the "Jubilee Report" is part of Pope Francis' legacy and seeks to offer a faster solution to the debt crises affecting Africa, Latin America, and Asia. "This is not just a problem for poor countries. Middle-income countries are also suffering today," he emphasized.

The former minister concluded with a critical but hopeful outlook: " I am very optimistic about what Argentina can achieve in the coming decades. But that requires something else: stability with development, not with adjustment ."