Ultra-rightist wins run-off election
After the defeat of the candidate supported by the International Monetary Fund (IMF), the director of the IMF, Kristaina Georgieva, congratulated on social networks the ultra right-winger Javier Milei, elected with 55.6% of the votes. In his victory speech, Milei had already confirmed that commitments will be fulfilled, in reference to the fraudulent debt with the IMF that strangles the country.
The presidential ballot ended with a landslide victory of the ultra-right-wing Javier Milei (LLA) who, with 55.69% of the votes, won by a wide margin over the Peronist candidate, Sergio Massa, who obtained 44.3% of the votes.
In her post Goergieva confirmed that the IMF looks forward to working together with Milei and his team in the coming period to “develop and implement a sound plan to safeguard macroeconomic stability and strengthen inclusive growth for all Argentines.” [Milei’s plan is to make the US dollar the currency of Argentina, where more than 20% of the total US cash currency circulates.]
Much of the message coming from the ballot box was an angry vote in the face of social unrest, material deterioration with loss of wages, pensions and increasing poverty. To continue tied to the conditions of the IMF to pay an odious debt, will only deepen this path of impoverishment for large sectors of Argentine society with attacks on wages and rights won in labor and social struggles.
The numbers are there for all to see, the Congressional Budget Office published that primary spending was reduced by 4.3% in real terms in the ten months of 2023. These cuts were mostly in Energy subsidies, Family Allowances, Retirement and Pensions and Social Programs, among others.
While Peronism closes out an administration at the service of the IMF and pacifying the popular sectors, Milei promises that his will be even greater. With negative reserves, the maturity of foreign debt from December to February is US$ 7,200 million. The pressure from the IMF and other creditors to collect their debts will be strong.
One of the first reactions in ADR trading on Wall Street shows considerable increases. One of the issues to be defined is how the transition between the current government and the new administration will be handled. Rumors of the Economy Minister’s departure add pressure and uncertainty, which on Tuesday could be expressed by an increase in the demand for dollars.
The only real way out of this crisis that seems to be accelerating has as a necessary step the rupture of the agreement with the Fund and the sovereign disregard of the odious debt, but Milei is even less likely to do this than the Peronists.
Source: Resumen Latinoamericano – Buenos Aires