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Montevideo, November 24th 2017 - 00:21 UTC

Macri anticipates sweeping tax, education and labor reforms

Tuesday, October 24th 2017 - 06:34 UTC
Full article 7 comments
The conservative leader has been pushing a free-market reform agenda to overhaul Argentina's struggling economy. The conservative leader has been pushing a free-market reform agenda to overhaul Argentina's struggling economy.

President Mauricio Macri said on Monday he will seek more sweeping reforms for Argentina after his governing coalition scored a resounding victory in congressional elections. Macri's center-right coalition remains a minority in both houses of Congress.

 But the “Let's Change” coalition won in 13 out 23 provinces as well as the Argentine capital in Sunday's voting and will have the biggest bloc in Congress.

Macri told reporters Argentines should expect reforms in tax, education and labor, without providing details. The conservative leader has been pushing a free-market reform agenda to overhaul Argentina's struggling economy. But his ordering of layoffs of state workers, the elimination of tariffs aimed at protecting local industry, and hikes in utility rates has fueled labor unrest.

“We need to make many reforms,” Macri said. “We've done some already ... but looking ahead, there's still a lot to be done.”

The elections were largely seen as a referendum on Macri's two years in office, but they were also watched as a test of power for his left-leaning predecessor, ex president Cristina Fernandez. She won a Senate seat, but came in a distant second in her multi-seat district, and analysts said that had diminished her chances of a presidential run in 2019.

Cristina Fernandez is fighting corruption allegations stemming from her 2007-2015 presidency, and a Senate seat grants her immunity from prosecution.

“The market has taken this election very well,” said Marcelo Trovato, head of Buenos Aires-based Pronostico Bursatil consultancy.

Twenty-four of 72 Senate seats were at stake as were 127 seats in the 257-member lower Chamber of Deputies. The electoral result paves the way for Macri to seek re-election in 2019 as he faces a divided opposition without a clear leader.

“For Macri, the challenge is 100% the economy and the social situations, where the government has few achievements and must now face structural reforms,” said analyst Patricio Giusto of Diagnostico Politico consultancy.

As a result of the election results Argentina's stocks, bonds and currency jumped on Monday. Investors expect that momentum will help it pass its 2018 budget, which aims to cut the fiscal deficit by one percentage point to 3.2% of GDP, along with tax, labor and capital markets reforms.

“A very solid electoral performance by President Macri, which should endow the administration with a stronger mandate to purse his reformist agenda,” Goldman Sachs economist Alberto Ramos wrote in a report.

Argentina's benchmark Merval index rose 1.9% to new all-time highs, while the peso firmed 0.9%. Dollar bonds jumped 1.8%

Categories: Economy, Politics, Argentina.

Top Comments

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  • imoyaro

    Looks like he is moving right away. He is supposedly planning to get governors, lawmakers, union leaders, judicial officials and district mayors to meet and discuss reforms.

    http://www.thebubble.com/midterms-cambiemos-wins-by-a-landslide-allowing-macri-to-negotiate-his-legislative-agenda-from-a-position-of-power/

    I do find this quote amusing : “Fernández has a large base, but there’s a much larger amount of people who can’t tolerate her and is more than willing to only vote for a party if it means she won’t go back to being President – i.e Cambiemos.”
    The pic of La Asesina with Kiciloff grinning in the background is pretty funny as well...

    Oct 24th, 2017 - 08:07 am +4
  • Swede

    “Macri told reporters Argentines should expect reforms in tax, education and labor”. When it comes to education: a good reform would be to stop the indoctrination of the young generation with the Malvinas myth. If that is done now there could perhaps be peaceful relations with those islands in the future.

    Oct 24th, 2017 - 09:48 pm +4
  • The Voice

    Troilistic turnip. Read Jeremy Paxmans book on our Empire. No punches pulled. Read Killikoughs blatant lies regarding the Falkland Islands and appreciate the contrast in truthfullness. Then read your own history of genocide and decide who is more truthful. At least we dont indoctrinate our children with blatant lies and false propaganda

    Oct 25th, 2017 - 08:27 am 0
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