I couldn't agree more, but if you read the political history saga of Argentina, as I did online last night, it will make your head spin with it's lack of logic. Your post is logical, most of their governments have not acted in the best interest of either their people or business investment. The previous leader had imposed taxes on business which Macri reversed. His policy for economic change was one of 'gradualism' because 35% of the working population of Argentina work for the government. Obviously if he axed too many government employees at one time it would cause high unemployment and probably the next election. Gradualism hasn't worked. The election is next year and from what I read, it would be a disaster for business investment, but could happen, that the people vote him out and put in a more socialist government. A lot of people see the latest move - cutbacks on government spending by merging ministries and making people redundant, and export taxes - as too little, too late.
The only recent good news (if you could describe it as such) was there is proof of government officials in the previous government receiving payouts from construction companies to give them contracts. Which is probably quite normal for an emerging economy in Latin America, but bad enough to tarnish the previous leader.
Macri wants to make Argentina the world's major lithium producer. They need a good relationship with the companies that are already developing in that space, like Orocobre. I can't see him imposing any more taxes or restrictions. But if he loses the election, all bets are off.
ORE Price at posting:
$3.42 Sentiment: Hold Disclosure: Held
