Argentina’s Crisis Has Already Impacted Brazil And Venezuela

Macri Fernandez
Threats of withdrawal from Mercosur and the regime’s intimidation of the election winner: the Argentine political crisis is already part of the Brazilian and Venezuelan political discourse (PanAm Post photo montage).

Panampost – Argentina’s political and economic problems, unleashed after Sunday’s election result, have already surpassed national borders. The impact generated by Alberto Fernandez’s victory unleashed the fury of the dollar and the country’s risk, and also had political consequences in Brazil and Venezuela. In the land of Jair Bolsonaro, there is a concern. Under chavismo too, but for different reasons.

Is Mercosur in jeopardy?

The president of Brazil has become the regional campaign chief of Macrismo. He has repeatedly warned from his Twitter account that if the Fernandez-Kirchner duo triumphs, Argentina would suffer a tragedy. However, the news of the day was given by its Minister of Economy, Paulo Guedes, who warned, “If Cristina takes office and closes the economy, we leave the Mercosur.”

Macri has not been the ideal champion of free markets. However, the Argentine president intended to go, albeit lightly and gradually, towards greater trade integration with the world. Argentina’s economic agents are not the only challenge of Alberto. The first signing of his possible government, with CFK as vice-president, mark the continuity or disappearance of the regional bloc.

Chavismo’ warnings

Venezuela also has a warning for Alberto but in the opposite direction to that of Bolsonaro’s minister.

Diosdado Cabello was optimistic about the defeat of the Macrismo last weekend, but he decided to “mark the territory” for the candidate for president of the Frente de Todos. The Chavista leader told Alberto Fernandez, openly, that victory at the polls is not his own, but Kirchner’s triumph:

“I am very happy for the effort and courage of the Argentine people. I hope, dear God, that I am not mistaken, that those who have been elected will not believe that they are responsible for their victory,” he said.

Meanwhile in Argentina…

At the epicenter of the crisis, which already has international relevance, everything changes from one moment to the next. The two news items of the day were related to the bipolar attitude of a desperate government.

Yesterday, Macri assured that he would “freeze” the price of fuel until the elections. The problem was that the companies refused, especially considering the total exchange volatility. Faced with the refusal, Macrismo reached for a law of the old Peronism to do it by force: the Law of Supply. This tool, a violation of private property rights, dated from 1974 and was the whip that Kirchnerism used, not to strike, but to threaten. The current management did not repeal it, and now the ruling party is using it in a pathetic manner that does nothing but demonstrates the desperation of the victim. Not even Cristina went that far.

Towards the end of the day, the media broke another piece of news. The government confirmed that it would eliminate (until the end of the year) VAT from a large number of items in the basic basket. The reduction of taxes was a constant demand for several sectors, which the government never listened to because it considered it impossible given the delicate fiscal situation. It seems that electoral necessity made it possible.

Meanwhile, economist Roberto Lavagna, who ranked third in the elections with 8% of the vote, suspended his election campaign and asked all his competitors to follow his example, at least until the economic crisis calms and governance is guaranteed.


By Marcelo Duclos