Peronist Alberto Fernandez to be sworn in as Argentinian president
Alberto Fernandez will be sworn in today as the new Argentinian president.
The centre-left leader faces severe economic challenges. Voters elected him in response to his predecessor’s austerity measures and market-friendly policies. He has appointed academic Martin Guzman as his economic minister; Guzman is likely to restructure the country’s debt with international creditors and the IMF.
Fernandez can be expected to introduce fiscal and monetary stimulus to combat recession and poverty. He has talked about lowering tariffs to help small business owners and increasing pensions for retirees. He is also likely to work on renegotiating the $57 billion bailout plan with the IMF so that its program places less of the fiscal burden on common citizens.
Argentina requires serious reforms to stimulate consumer spending and, consequently, boost the supply side economy. Voters who supported him expect a quick economic recovery, but this will be difficult to achieve in the immediate future—international obligations and domestic socio-economic challenges leave Fernandez with limited scope to act. It is likely that Fernandez will delay debt repayments to bolster economic growth at home.
Wake up smarter with an assessment of the stories that will make headlines in the next 24 hours. Download The Daily Brief.