Macri election triumph ends Argentina’s ‘Kirchner era’

Published: Monday 23rd November 2015 by The News Editor

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Opposition candidate Mauricio Macri has won Argentina’s presidential election, ending the left-leaning and often combative era of President Cristina Fernandez, who along with her late husband, dominated the country’s political scene for 12 years and rewrote its social contract.

Ruling party candidate Daniel Scioli, Ms Fernandez’s chosen successor, conceded defeat and said he had called Mr Macri to congratulate him on a victory that promises to chart Argentina on a more free market, less state interventionist course.

“Today is a historic day,” said Mr Macri, addressing thousands of cheering supporters as horns blared across Buenos Aires. “It’s the change of an era.”

With 75% of the vote counted, Mr Macri had 53% support compared with 47% for Mr Scioli.

The victory by the business-friendly Mr Macri, the mayor of Buenos Aires, comes after he did better than expected in the first round on October 25, forcing a run-off with Mr Scioli, the governor of the vast Buenos Aires province.

Mr Macri campaigned on promises to reform and jump-start the country’s sagging economy. He pledged to lead by “listening more and speaking less” than Ms Fernandez, something he frequently said on the campaign trail.

“I’m so happy,” said Julia Juarez, 66, a retired teacher who was one of thousands watching the returns at Mr Macri’s bunker. “Argentines are tired of this government. Tired of the corruption. We are ready for something new.”

Mr Scioli, who had been expected to win by 10 or more points in last month’s six-candidate first round of voting, tried to regain momentum before the run-off by frequently attacking Mr Macri.

He said a Macri win would subject the nation of 41 million to the market-driven policies of the 1990s, a period of deregulation that many Argentines believe set the stage for the financial meltdown of 2001-2002.

Mr Macri’s win signals a clear end to the era of Ms Fernandez, who along with her late husband and predecessor, Nestor Kirchner, rewrote the country’s social contract, gaining both rabid followers and fierce critics along the way. People often refer to their combined years in power as the “Kirchner era”.

The power couple spent heavily on programmes for the poor, raised tariffs to protect local economies and passed several progressive laws, including the legalisation of gay marriage in 2010.

Mr Macri frequently repelled Mr Scioli’s claim that Mr Macri represented policies of the past, saying he would lead with “21st-century development” as opposed to “21st-century socialism” – a term used by supporters of the late Venezuelan president Hugo Chavez and his successor Nicolas Maduro.

The election comes at a time when Argentina’s economy, Latin America’s third largest, has stalled. Inflation is around 30%, gross domestic product growth is just above zero and many private economists warn that the Fernandez administration’s spending is not sustainable.

Mr Macri has promised to address the economic problems and to shake things up regionally. If elected, he said, he would push to expel Venezuela from the South American trade bloc known as Mercosur because of the jailing of opposition leaders under Mr Maduro.

That would be a huge change for a continent where many countries, including neighbours Chile, Brazil and Bolivia, have left-leaning democratic governments that have maintained close ties with Venezuela.

Over the course of the campaign, both candidates at times tried to straddle the centre. Mr Scioli said he would solve a long-standing New York court fight with creditors in the US who Ms Fernandez calls “vultures” and has refused to negotiate with. Mr Macri flipped his position and voiced support for the nationalisation of the YPF oil company and Aerolineas Argentina, popular actions by the Fernandez administration.

But there were also clear differences. Mr Macri promised to lift unpopular controls on the buying of US dollars and thus eliminate a booming black market for currency exchange. Doing that would probably lead to a sharp devaluation of the Argentine peso.

With low foreign reserves, the government would desperately need an immediate infusion of dollars. Those could come from many different places, but ultimately would require structural changes to a largely protectionist economy, solving the debt spat and developing warmer relations with other nations, including the United States.

Mr Scioli, governor of the large Buenos Aires province, said he would maintain energy and transportation subsidies along with the many social works programmes instituted under Ms Fernandez and Mr Kirchner, her late husband and presidential predecessor. While such promises signaled an embrace of the status quo, Mr Scioli also promised to make small fixes where necessary.

In the opening round, Mr Scioli, a former boat racer who lost his right arm in competition, got 37% of the votes, while 34% went to Mr Macri, who gained a national profile as president of the popular soccer club Boca Juniors. That close finish led to the country’s first ever presidential run-off.

Published: Monday 23rd November 2015 by The News Editor

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