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Macri, Argentine opposition flex muscle as November runoff looms

Opposition presidential candidate Mauricio Macri and María Eugenia Vidal, now governor-elect of Buenos Aires province, celebrate on the night of the August primaries.
Opposition presidential candidate Mauricio Macri and María Eugenia Vidal, now governor-elect of Buenos Aires province, celebrate on the night of the August primaries.

When Daniel Scioli emerged on Sunday night to declare victory in the first round of Argentina’s presidential election, it was clear that he did not expect to win the presidency outright and that he would face a runoff — even though no official election results were yet announced.argentina

When the first results finally came at around 11 p.m., they showed a far closer race than anyone predicted. At one point, Scioli’s rival, outgoing Buenos Aires mayor Mauricio Macri, was actually leading Scioli. Ultimately, Scioli narrowly won the presidential election’s first round, but Macri’s support was so unexpectedly strong that he now enters the presidential runoff campaign as the odds-on favorite to end 12 consecutive years of kirchnersimo.

At stake in the presidential showdown is the legacy of one of the most important bastions of Latin America’s populist, statist left.

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Macri, the candidate of the center-right Cambiemos (Spanish for ‘Let’s change’) coalition, has gradually expanded a political movement that was once limited to just the most affluent corners of Argentina’s capital. The son of an Italian immigrant, Macri joined his father’s business in the automobile sector before becoming the president of the popular Boca Juniors football club. He first entered politics in 2003, waging a failed run to become mayor of Buenos Aires. He lost that race, but he used the experience to form a new urban, liberal political party, Propuesta Republicana (PRO, Republican Proposal) in 2005 and, two years later, he won the mayoral election.

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RELATED: Kirchner 2019 comeback could
complicate Scioli presidential bid

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As the standard-bearer of the Cambiemos coalition, he merged his own Buenos Aires-based movement with the Unión Cívica Radical (UCR, Radical Civil Union), a long-lived liberal party that has stood as a contrast for decades to the dominant left-wing populist peronismo. Most voters believe that Macri is the candidate most likely to lift capital controls and bring Argentina back into global debt markets, even if it means a peso devaluation and strong measures to tamp down inflation. Nevertheless, with economic neoliberalism still widely discredited after the economic crisis of 1999-2001, Macri has taken efforts to reassure that he will not subject the Argentine economy to immediate radical change, and he’s even gone out of his way to praise the values of peronismo.

Despite doubts, the Macri campaign’s plan seems to be working. He swept the city of Buenos Aires, along with the provinces of Mendoza, Córdoba, Santa Fe and Entre Rios in Sunday’s vote.

Scioli leads departments shown in blue; Macri in orange; and Massa in violet. (Clarin)
Scioli leads departments shown in blue; Macri in orange; and Massa in violet. (Clarin)

His success in Sunday’s general election took Argentines somewhat by surprise. When election day began, it was conceivable that Scioli, a former vice president and currently the governor of Buenos Aires province, might have scored a first-round victory in the presidential race. He boasted the support of outgoing president Cristina Fernández de Kirchner and the governing Frente para la Victoria (FpV, the Front for Victory), an electoral coalition anchored by Argentina’s peronista ‘Justicialist’ Party. A former motorboat racing star, Scioli took a lead in polls early in 2015, and he’s consistently held an advantage to become Argentina’s next president. Despite rampant inflation, health scares, political intrigue and a slowing economy, Kirchner’s approval ratings have generally improved over the course of the last year — so much so that everyone expects her to try to return to the Casa Rosada in the 2019 election. Most recently, in Argentina’s compulsory open presidential primaries on August 9, Scioli won 38.4% of the vote versus just 30.1% for Cambiemos.

What a difference two months can make. Continue reading Macri, Argentine opposition flex muscle as November runoff looms

Tactical voting considerations cloud outcome of Argentine presidential election

Sergio Massa (center) confers with former finance minister Roberto Lavagna and Córdoba governor José Manuel de la Sota. (Facebook)
Sergio Massa (center) confers with former finance minister Roberto Lavagna and Córdoba governor José Manuel de la Sota. (Facebook)

A surprisingly tighter race than expected for Argentina’s presidency is making it more likely that frontrunner Daniel Scioli will win outright in the first round on Sunday, October 25.argentina

Back in August, Scioli, the outgoing governor of Buenos Aires province and the presidential nominee of outgoing president Cristina Fernández de Kirchner and the governing  Frente para la Victoria (FpV, the Front for Victory), demonstrated his strength by winning around 38.5% of the vote in Argentina’s somewhat unique ‘open primary’ contest.

His nearest contender was Mauricio Macri, the more conservative and economically liberal outgoing mayor of Buenos Aires, who is leading a broad center-right coalition called Cambiemos (which loosely translates as “Let’s change”), which won about 30% of the vote (including the other challengers who competed with Macri for the coalition’s presidential nomination).

Far back in third place was Sergio Massa, one of Kircher’s first cabinet chiefs, now the mayor of Tigre and the leader of an alternative peronista group, the Frente Renovador (FR, Renewal Front), which won just 20.5% of the vote.

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RELATED: Kirchner 2019 comeback could
complicate Scioli presidential bid

RELATED: Scioli leads in Argentine presidential race after primaries

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A one-time frontrunner after leading his new group to the top result in Buenos Aires province during the 2013 midterm elections, Massa’s appeal seems to have stalled through 2014 and earlier in 2015. His electoral alliance choices turned out to be weaker than expected, and he lacks the voter base that both Scioli (as leader of Argentina’s most populous province) and Macri (as leader of Argentina’s capital city) can boast. Moreover, as Kirchner’s approval ratings improved over the course of 2015, so did Scioli’s standing, as he won back disaffected peronistas who might otherwise be tempted to join Massa’s alternative group.

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Since August, Scioli continues to lead the pack, while the movement in the race has come in the battle for second place — most polls are now showing that Macri is losing votes and that Massa is gaining. There are many potential reasons.

Explaining the Massa popularity surge

It could be that Argentines feel that Macri is still too close, ideologically speaking, to the economic neoliberalism of the 1990s that many voters feel was responsible for destroying the economy in 1999-2001.

It could be that Macri has been tarred by association with Fernando Niembro, a businessman who had been one of the coalition’s leading congressional candidates from Buenos Aires until suspending his campaign in September following an indictment on money laundering charges. That connection has made it hard to argue that Macri will make doing business in Argentina more efficient, transparent or graft-free.

It could be that Macri has done so much to signal that he will not introduce radical change that voters are doubting his authenticity, ability or resolve. He’s already pledged not to re-privatize the Argentine state oil company, YPF, or the airline company Aerolíneas Argentinas. If there’s one thing that Macri is not, it’s a peronista. But he has spent much of the post-primary period embracing peronismo. Earlier this month, Macri even unveiled a new statue of Juan Perón in the capital, awkwardly arguing that he shared the values of peronismo:

“I am not a Peronist but I have social justice in my heart,” Macri said as he unveiled the statue of Peron last week. “I want to invite all Peronists to work with us to create the Argentina we all dream about.”

But Massa’s improvements could also come from a belief that Massa represents a better chance for gradual ‘change,’ with a better shot of defeating Scioli if the race continues to a runoff on November 22. There are still real doubts about Scioli’s ability to run an independent administration with so many Kirchner loyalists in key positions, including the vice presidency. Continue reading Tactical voting considerations cloud outcome of Argentine presidential election

What to expect from Sunday’s Argentine presidential primaries

casarosada

On August 9, Argentine voters will take part in a compulsory open primary — the dress rehearsal for the general election set for late October.argentina

It’s the first presidential election since 1999 where a Kirchner won’t actually be on the ballot. Nevertheless, kirchnerismo is very much on the ballot, and its standard bearer, Daniel Scioli, the candidate of the ruling Frente para la Victoria (FpV, the Front for Victory), served as the late president Néstor Kirchner’s vice president between 2003 and 2007.

The country’s pre-game primary, however, is a relatively new feature to Argentine democracy. The outgoing incumbent, Cristina Fernández de Kirchner, introduced open primaries in time for the 2011 elections — mandatory for both parties and voters alike. Candidates must win at least 1.5% support in the primary to advance to the general election. In a country where polling is still more art than science, and where political parties and coalitions are still more personality-oriented than long-term ideological vehicles, the primary is the most reliable test of electoral support before the October 25 election.

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RELATED: Everything you need to know
about Argentina’s impending default

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If polls remain as tight as they are today, and no candidate wins (i) either 45% of the vote outright or (ii) at least 40% of the vote (and leads the nearest candidate by more than 10%), the country will choose between the top two finishers in a November 22 runoff.

So this Sunday’s primary could be the first of three showdowns for the Casa Rosada. Continue reading What to expect from Sunday’s Argentine presidential primaries

Everything you need to know about Argentina’s impending default

CFK

It ultimately took an American hedge fund to unite the Argentine people behind the increasingly unpopular presidency of Cristina Fernández de Kirchner.argentina

Now, after a prolonged fight that has its roots in Argentina’s last debt default over a decade ago, a fight that has weaved its way through the corridors of power in Buenos Aires, via the banks of New York and London, into the highest court of the United States, and with consequences that will reverberate from Brasília to Caracas, Argentina is now defaulting, once again, on its debt obligations.

How did Argentina end up in this situation? And what will happen if Argentina, which technically entered default at midnight earlier today, doesn’t arrive at a deal with its creditors?

Here’s a primer on everything you need to know about the Argentine default — and why it’s such an odd, twisting and ultimately fascinating story about Latin American politics, global finance, US constitutional law and the ‘north-south’ dynamic of international relations. Continue reading Everything you need to know about Argentina’s impending default