Overview
- Domingo Cavallo, speaking this weekend, praised Milei’s fiscal consolidation and falling inflation but warned the program must now focus on visible economic reactivation rather than only lower prices.
- Cavallo urged the government to remove the cepo for firms and allow full capital mobility so businesses can operate without foreign-exchange limits.
- He proposed formalizing a bimonetary framework that gives the U.S. dollar legal-tender status alongside the peso to stabilize contracts, savings and financing in dollars.
- Cavallo called on the Central Bank to use the reported trade surplus to build foreign-exchange reserves and on the state to reorganize the monetary and financial system so credit is available at reasonable rates.
- He criticized the social mix of fiscal cuts and special sector incentives like the RIGI and warned that failure to raise jobs and incomes could erode public support ahead of the 2027 election.