Fri. Nov 15th, 2019

The Argentine presidential transfer and the constant sum of inheritance received



At the gates of Alberto Fernández assuming the Presidency of Argentina, two "inheritances received" enliven the transition: the one that the elected president assures receive from the current government, which he accuses of devastating the country, and the one that the outgoing, Mauricio Macri, he insists he had to face in 2015 when he succeeded Cristina Fernández, who will now be vice president.

With hardly any exceptions, each new president of the current Argentine democracy has inherited a serious economic crisis. Just as an example, Carlos Menem succeeded Raúl Alfonsín in 1989 in the midst of hyperinflation; Fernando de la Rúa resigned and left in 2001 by helicopter the Government House with the bank "corralito" in the background and Nestor Kirchner assumed in 2003 with almost 20% unemployed.

In just over a month, from December 10, Fernández will govern an Argentina in recession since April 2018, with an increasingly devalued peso (71% in two years), a galloping inflation (53.5% year-on-year) , increase in unemployment (10.6%, the highest figure since the beginning of 2006), poverty in 35.4% of the population and a bomb to be deactivated: high foreign debt.

2015 VERSUS 2019

"In the Macri government, 43 companies closed every day and that is why they generated 5 million poor people," Fernandez said this week in a talk to students in Mexico, the first country he visits after winning the elections last October 27.

Shortly before the future president met with the Mexican president, Andrés Manuel López Obrador, the executive of Macri – ballasted by the crisis and defeated in the elections by eight points, a much smaller difference than the ones foreseen by the polls – spread a document in which he reviewed the "inheritance" that leaves the new authorities.

"At the end of 2019 the country is ready to grow. Without magic, without lies, without fiction," remarked the text, in which macroism recognizes that there are problems but highlights the achievements made with the "effort" to reverse another "inheritance ", the one left in 2015 by Cristina Fernández de Kirchner, Alberto's political partner.

The outgoing government, which came to power after 12 years of Kirchnerism, reiterates that a "central bank without reserves", a "brutal fiscal deficit", a "liar unemployment and very high structural poverty", high inflation, a kind of late change and a "razed" state and "broken" public companies.

Against that, he affirms that there is now a primary fiscal balance, lower tax pressure, a competitive exchange rate, an increase in exports, better infrastructure and recovery of our own energy sources, since, as they recall, in 2015 we had to import energy and Now Argentina exports.

Counterattacking from Mexico, the future head of state asked the outgoing team to stop with the "lie" and attributed the crisis to the "great ineffectiveness of the government", since in his opinion two years ago nobody imagined that Argentina could end up in this situation.

THE EXTERNAL DEBT

In an interview conducted by Ecuadorian ex-president Rafael Correa and released on Thursday, Fernández assumed that "when Cristina left the Government", the country had inflation problems, few reserves and a "very content" dollar, but said he had no problems of debt.

Argentina recorded a gross foreign debt of $ 283,567 million in the middle of this year, compared to 157,792 million at the end of 2015, a figure that did not take into account the around 9,000 million owed to the so-called "vulture funds" – creditors that They did not accept the swap of the year 2005 and 2010 and that made them be in a selective cessation of payments-, which ended up being paid by the Macri executive in March 2016.

The new Peronist government should study how to pay the high debt, especially the $ 56,300 loan granted by the International Monetary Fund when the abrupt capital flight of April 2018 led the macro executive to ask for help.

The situation worsened after the triumph of the Fernández in the primaries of last August – electoral instance prior to the general ones – something that caused strong financial turbulence and led the government to announce an extension of the expiration terms of the short-term titles and the intention to do the same with those of medium and long term, which the opposition considers in practice another cessation of payments.

THE HIGH CHARGES

This Wednesday, in his first public act after the elections, Macri, which is already emerging as a future reference for the opposition after emerging from his not-so-strong defeat, acknowledged that his administration did not finish solving the structural problems of the economy, although He considered that where "there was nothing before" today there are "solid foundations".

But this discussion between the one and the other inheritance received is not limited to the first swords of politics.

The secretary of Modernization, Andrés Ibarra, went out to the crossroads to deny that in recent times of the Macri period they have appointed senior officials with "sidereal figures" of salaries and hired indiscriminately employees who did not make an administrative career, as he had criticized the elected president.

"Last year, the president signed a decree prohibiting any type of entry into the State, except for situations that have to do with security, armed forces, hospitals and coverage of very special charges," said Ibarra, who stressed that in these years the workforce in the Public Administration has been reduced almost 20% and that, on the other hand, Kirchnerism had increased it by 91%.

Be that as it may, the transition to December 10 takes place, at least for the moment, in relative calm. We will have to see where this heritage puts history and all that are yet to come.

. (tagsToTranslate) Argentine presidential (t) transfer (t) constant (t) received (t)



Source link