Uruguay Senator to Grill Economy Minister on Spending, Fiscal Policy

Senator Sergio Botana of Uruguay's National Party is set to question Economy Minister Gabriel Oddone, criticizing the government's economic direction. Botana argues that increasing fiscal pressure, or taxes, will not solve the country's economic woes. Instead, he advocates for intelligent spending cuts, stating, "Countries are not saved by greater fiscal pressure, but by controlling spending."

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Countries are not saved by greater fiscal pressure, but by controlling spending.

Botana also addressed the impact of a tax on foreign online purchases, suggesting that the fear generated by its announcement, rather than the tax itself, has slowed down overseas shopping. He noted that the government's recently announced competitiveness and cost-of-living reduction bill contains some positive elements, such as deregulation and support for exports. However, he cautioned that the measures might be insufficient, citing the example of the border law, where import allowances were too small to incentivize informal traders to become formal.

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It is not a solution, but it contains some solutions well underway.

When asked about Oddone, Botana described the minister as making a significant effort to steer the economy correctly but facing considerable difficulties. He suggested that Oddone is struggling to balance the demands of various factions within his own party, rather than focusing on the needs of the entire country. Botana implied that Oddone's focus on satisfying internal party demands hinders his ability to govern effectively for all Uruguayans.

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The country sees him making a great effort to orient himself properly and with enormous difficulties to overcome an internal struggle that wants something else and committed to another course.