Argentine emergency plan foreshadows popular moves

A man holds Argentine banknotes in Buenos Aires (Reuters)

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Madrid: Shawky the President

The new Argentine government is working to put the finishing touches on a “economic, social and health emergency” plan to face the country’s severe crisis, which put it on the verge of bankruptcy and pushed more than 40% of its population into poverty, half of them need food aid.
In his first appearance before Parliament, the new President Alberto Fernandez, who took office early last week, requested that he be granted “extraordinary powers” that would allow him to take a package of urgent measures and renegotiate with the International Monetary Fund the scheduling of the heavy debts of Argentina, which he said in Department’s speech: “We intend to repay the debt, but we do not have the resources for that at present.”
Sources close to Fernandez say that the surrounding economic team was aware of the severity of the economic crisis that the country is suffering from, and that it has begun preparing to address it since the presidential elections that took place last August, and as a result confirmed that Fernandez will win the presidency, but she did not imagine The crisis is so severe.
With the announcement of the first set of measures, signs of protests emerged in the agricultural sector, which is the mainstay of the Argentine economy and the main source of hard currency that the country has been suffering from scarcity for years. Agricultural organizations, with strong economic and political influence, are protesting against the new taxes that the government intends to impose on agricultural sector exports, and have warned that insisting on them would spark popular movements across the country.
Fernandez had decided to abandon the budget prepared by the previous government, especially with regard to debt repayment, considering that it is not possible to develop any economic plan before renegotiating the IMF and other creditors. It should be noted that Argentina faces $ 58 billion in benefits next year, then $ 36 billion in 2021 and about $ 50 billion in the following year. “The only way to pay off the debt is to reschedule it, allowing two years for the economy to return to the path of growth after a ten-year recession,” says Fernandez.
Faced with the difficulty of the crisis facing Argentina, which Fernandez understands is shared by the previous government and the one that was headed by Christina Kirchner, who currently holds the position of vice president, he started his term with a comprehensive speech and statements calling for a national dialogue to stop this economic and social decline that still baffles observers in a country Like Argentina, it has all the ingredients for growth and prosperity. It possesses a huge wealth of natural resources, and it depends on advanced industrial infrastructure, as well as the high educational and cultural level of its population, which is surprising whenever it returns to such a crisis.
While the international financial circles welcomed Fernandez’s decision to move away from the traditional Peronist position, which sees that refraining from paying foreign debts falls within the right of states to exercise their sovereignty, she took on ambiguity in his statements that considered that its immediate repercussions would be negative for the Argentine economy, because of its Ambiguity and imposes a fait accompli on creditors in any future negotiations on debt rescheduling.
Another opening that Fernandez showed at the beginning of his term was on the Brazilian neighbor, who is no secret to anyone, that friendliness is missing between him and its president, Jair Bolsonaro, who refused to congratulate the new Argentine president and expected that the return of the Peruvians to power would be a political and social catastrophe that pushed Argentine immigration towards his country. Fernandez said that he will ensure that the relations between the two countries remain “ambitious, innovative and brotherly, regardless of any personal differences between those who judge them.”
The United Nations Economic Commission for Latin America recently warned that the three major economies in the region, Mexico, Brazil and Argentina, are not immune to the popular protests and unrest that have ravaged many countries for months, and called on the governments of these countries to take urgent measures and develop medium-term plans to address The social disparities, which are getting more acute and taking on a new wave of popular movements.
In another uncommon warning, in terms of its source and content, Gen. Cesar Milani, who took over as chief of staff of the Argentine armed forces during the recent period of the term Christina Kirchner, said: “The armies in Latin America are still reactionary and are under the influence of the United States. But the greatest danger lies in the fact that the influential economic and financial class sees armies as their property, and do not hesitate to try to use them to defend their interests if they feel threatened. The remarks of Melanie, who was imprisoned for two years after the end of his term as chief of staff for his accusations of crimes against humanity and then acquitted by the judiciary, came as rumors circulated that the Argentine armed forces might return to interfering in political affairs if the new government drifted towards the usual Peronist populism.

Argentina

Argentina

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