Felipe Chapman, Panama’s Minister of Economy and Finance, assured last week that the country remains stable in the face of the Middle East crisis, which has generated a rise in oil prices, with consequences for the price of electricity, gas, and transportation.

According to the official, the country “can rest assured, as there will be no shortages. Fortunately, there is sufficient fuel availability in our American continent.”

However, he indicated that authorities are continuing to evaluate contingency measures to reduce “the impact of the fuel price increase and thus prevent the population from being affected by a rise in the cost of living.”

Although the increase in oil prices represents higher subsidy expenses for the State, Chapman stressed that without implementing measures, this increase would be passed on to public transportation fares, electricity, and the price of a 25-pound tank of gas. He stated that they will have to adjust finances and reallocate resources to address the situation.

According to the minister, “if the upward trend continues and the conflict persists, the government will have to adjust its finances, since resources, unfortunately, will have to be restricted.” “We will have to be very prudent and disciplined in cutting other Panamanian government expenditures.”

Last Tuesday, the official indicated that if the conflict in the Middle East continues, measures such as the possible implementation of teleworking in some economic sectors, rationing the use of official vehicles, reducing government mailings, authorizing vacations for non-essential personnel, and implementing staggered work schedules will be evaluated.

M.Pino

Source: metrolibre

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The Middle East conflict has repercussions at both the regional and global levels. The increase in oil prices has spread to the gas and fuel sectors, prompting the European Union to prepare contingency measures to minimize the effects on consumers.

The EU is streamlining procedures for importing non-Russian gas amidst the escalating conflict in the Middle East, which has impacted supply. This has led to more flexible requirements, reduced red tape, and faster response times from authorities.

Currently, the United States, Africa, and Qatar are considered potential alternatives for importing liquefied natural gas.

There are specific initiatives in the region, such as in Italy, where Prime Minister Giorgia Meloni announced a reduction of €0.25 per liter of fuel to alleviate the effects of price increases caused by the war. The measure was approved by the Council of Ministers through a decree-law.

Spain, for its part, is reportedly evaluating similar options; that is, reducing taxes, offering incentives for consumption, “eliminating the CO₂ price, or returning to the ‘Iberian exception’ or a cap on gas prices,” according to European media.

Although the International Energy Agency has stated that member countries can release more oil onto the market, France does not share this view. Finance Minister Roland Lescure has indicated that the country cannot replace lost flows with existing reserves.

In any case, the consequences of the conflict in the Middle East and the closure of the Strait of Hormuz are being felt globally, with price increases in oil, gas, electricity, and fuels, forcing governments to scramble to find alternatives not only for supply but also to minimize the impact on the population.

M.Pino

With information from international media

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La entrada Middle East conflict accelerates relief measures in the energy sector apareció primero en Bitfinance.

In a drastic economic turnaround, last Tuesday, the government headed by Javier Milei devalued the national currency by more than 50 %, setting the official exchange rate at 800 pesos to the dollar, compared to 391 at the close of the previous Thursday. The measure was announced by the Minister of Economy, Luis Caputo, who warned of the imminent risk of hyperinflation in Argentina.

Minister Caputo highlighted the root of the country’s economic problems, noting that the crisis has always been fiscal in nature. In an effort to address this problem, he announced austerity measures, including cuts in energy and transport subsidies. “The genesis of our problems has always been fiscal. The country must overcome its addiction to the deficit in public finances,” Caputo emphasized during his statement.

In his previously recorded speech, Caputo explained that the official exchange rate is raised to 800 pesos to provide appropriate incentives to the productive sectors and encourage the increase of production.

Despite the devaluation, the government will maintain, at least for now, the currency control system implemented since 2019, which includes a dozen different exchange rates.

Javier Milei, a 53-year-old economist who during the election campaign symbolized his commitment to reducing public spending by brandishing a chainsaw, took office last Sunday. He emphasized the need for a “shock” treatment to overcome the crisis, ruling out any gradual approach. The trustee aims to make a fiscal adjustment equivalent to 5% of the Gross Domestic Product.

“Today, the State artificially maintains extremely low prices in energy and transport tariffs through these subsidies,” declared the Minister, referring to public spending aimed at keeping prices low in various consumer sectors.

K. Tovar

Source: Descifrado

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In a momentous meeting, Valdis Dombrovskis, Vice President of the European Commission and in charge of Trade, will hold a high-level economic dialogue with He Lifeng, Chinese Vice Premier. This long-awaited event will take place amid growing European concerns about China’s subsidies for electric vehicles.

Dombrovskis, the Latvian politician, began his four-day official visit last Saturday. At this time, the European Union faces additional difficulties for its companies to access the Chinese market, aggravated by tensions related to the crisis in Ukraine.

This Monday, in the Chinese capital, the tenth high-level dialogue on economics and trade between the EU and China will take place. The central topics of discussion will focus on macroeconomic issues, trade and investment, financial cooperation, and industrial and supply chains.

Despite the moderate expectations in Brussels, the European delegation made it clear that this visit goes beyond a simple “photo opportunity”, according to the Hong Kong newspaper South China Morning Post.

Dombrovskis, who will also meet the finance minister and the governor of the Chinese central bank, will address concerns related to the EU’s de-risking policy towards China. This policy has been interpreted by Chinese officials as a strategy of economic decoupling.

However, what will capture Chinese attention during this visit will be the recent announcement by the President of the European Commission, Ursula von der Leyen, about the opening of an investigation into public subsidies granted by China to electric vehicles.

Von der Leyen claimed during her State of the Union Address that “global markets are flooded with cheaper Chinese electric vehicles and their price is kept artificially low thanks to huge state subsidies.”

K. Tovar

Source: Bancaynegocios

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